Has freight rate growth peaked? The SCFI index has risen for 13 consecutive weeks and its gains have narrowed.

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As new ship capacity continues to be put into use and container shipping companies increase the number of flights, although container ship freight prices continued to rise last week, the increase was weak.

According to the latest data released by the Shanghai Shipping Exchange on July 5, the Shanghai Export Container Shipping Index (SCFI) rose 19.48 points to 3733.8 points last week, continuing to set a new high since late August 2022. The SCFI index rose for the thirteenth consecutive week, but the weekly increase narrowed to 0.52% from 6.86% in the previous week. The US line continued to rise, and the European line turned down.

Last week, the freight rate per FEU from the Far East to the US West line increased by US3 to US,103, a weekly increase of 3.49%; the freight rate per FEU from the Far East to the US East line increased by US1 to US,945, a weekly increase of 7.24%; the freight rate from the Far East to Europe line per FEU increased by 7.24% per FEU; The TEU freight rate fell by US to US,857, a weekly decrease of 0.47%; the freight rate per TEU from the Far East to the Mediterranean line increased by US to US,432, a weekly increase of 0.84%.

On the near-ocean line, the freight rate per TEU from the Far East to Kansai, Japan, was unchanged from the previous week, at US3; the freight rate per TEU from the Far East to Kansai, Japan, was unchanged from the previous week, at US9; and the freight rate per TEU from the Far East to Southeast Asia was US9. The freight rate per TEU from the Far East to South Korea fell by US to US0 a week, a decrease of US from the previous week to US6.

Industry analysts pointed out that new ships are currently being launched one after another, causing container ship freight rates to loosen. Mediterranean Shipping Company notified customers on the evening of July 4 that the current freight rates will be extended until the end of this month, and the US,000 fee for the US West and US East routes will be cancelled. Price increase plan; South Korea's Sunro Merchant Shipping informed customers that the freight rate per TEU on the US West Line will be revised down to US,500 from now on, a decrease of 7.4%. Container shipping companies such as COSCO Shipping Lines and Orient Overseas have announced that starting from July 6, the freight rate per FEU for the US West Line will be reduced by US0 per FEU, and the freight rate per FEU for the US East Line will be reduced by US0.

At the same time, although container shipping companies have previously notified that they will increase the freight rate of the US East Line by US,000/TEU starting from July 1, some container shipping companies have not increased it enough according to the current situation. In addition, the Panama Canal has increased the daily throughput. , the ship turnover rate has increased, and the freight rate, which currently exceeds US,000, may fall back to four-digit levels at any time.

At the same time, it is also reported in the market that many container shipping companies such as Mediterranean Shipping Company and CMA CGM have added extra ships. Mediterranean Shipping Company has decided to restart the MUSTANG route from Asia to the West America. CMA CGM has also arranged for 7 medium-sized container ships to open the Asia-Northern Europe route. It is expected that The service will be available until the end of September. In addition, it will also provide preferential freight rates to large European customers, which may have an impact on the freight rate increase.

Looking forward, regarding the future trend of freight rates, industry insiders point out that shipping space is still the core driving force supporting freight rate growth. As long as the Red Sea crisis remains, container shipping companies will still face the situation of ships being unable to return to the port on time, resulting in passive work reductions. Therefore, they are optimistic about furniture. , home appliances, plastics and other durable consumer goods inventories are being replenished, and the replenishment cycle of European and American industries is still continuing.