Freight prices continue to rise! European lines rose sharply by US$700-1,000 on the 15th, while the US and Western countries fell.

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

The latest container export freight index (SCFI) released by the Shanghai Exchange on the 8th was 2331.58 points, an increase of 28.14 points from the previous week, and the weekly increase converged to 1.2%. Among the four major routes, except for the US West Route, freight rates from the Far East to Europe and the Mediterranean, and from the Far East to the East US have shown an upward trend. Among them, the Southeast Asian route had the highest increase, reaching 12.13%, while the US-Western route fell by 2.01%.

The container shipping company has informed that on the 15th of this month, the freight rate per large box on the European line will rise to 5,200-5,500 US dollars, an increase of approximately 700-1,000 US dollars. Each company is different, and the US line has no price increase plans.

After the implementation of work reduction measures for the European line, the freight rates from the Far East to Europe lines performed relatively strongly this week, with freight rates rebounding continuously. Freight forwarding companies pointed out that although the peak season of the container shipping market has passed, the price increase on the European line mainly relies on the reduction of cabin control and the shipping company's strategy of fully pushing up the price of the new long-term contract in January next year.

In contrast, the US line originally fell less, and this round of rebound is not as strong as the European line. Due to insufficient cargo volume in the fourth quarter, freight rates on the U.S. West Line are expected to be gradually reduced. This week, freight rates on the U.S. West Line have fallen below ,000 and remain between ,700 and ,900, while those on the U.S. East Line have remained between ,500 and ,600.

Although the increase has moderated compared with the previous two weeks, the industry still has different views on future freight rate trends. Some people believe that freight rates are expected to remain high in the fourth quarter, and that European and American long-term contract prices in the first half of next year may be better than this year, which will provide shipping companies with confidence for their operations.

The third-quarter financial reports of shipping giants Maersk and Matson Lines both showed good operating conditions, benefiting from rising freight rates, and both companies are optimistic about fourth-quarter profit momentum.

In addition, many shipping companies expressed their views on the market outlook for next year, pointing out that the geopolitical issues in the Red Sea have not changed, and there is a large demand for ships to circumnavigate the Cape of Good Hope, and they will continue to circumnavigate next year. In the context of rising costs, freight rates are easy to rise but difficult to fall. At the same time, the long-term contract price of U.S. lines in the first half of next year is better than the same period this year, and the spot market price in Europe is also higher than the same period last year. It is expected that the contract price of European lines will also rise next year.

On the other hand, after Trump was elected, the market was worried that the tariff war might break out again, which led to a recent pull-up effect in North America. Although the fourth quarter is not the traditional peak season for shipping, freight rates are showing an upward trend due to the space squeeze effect. This bullish factor is expected to boost market performance.

Although the increase in the container export freight index has moderated, future freight rates are still affected by a variety of factors. Shipping companies need to pay close attention to market dynamics and flexibly adjust operating strategies to deal with potential risks.