Shipping capacity surges and shipping prices come under pressure! SCFI index fell for two consecutive weeks

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~

New shipping capacity dragged down freight rates, with the Shanghai Export Container Freight Index (SCFI) falling for two consecutive weeks.

According to the latest data released by the Shanghai Aviation Exchange on July 19, the SCFI index fell 132.42 points last week to 3542.44 points, a weekly decrease of 3.60%. The four major European and American routes all fell, with the US-Western route having the highest decline.

Last week, the freight rate per FEU from the Far East to the US West Line fell by US0 to US,124, a weekly decrease of 6.92%; the freight rate per FEU from the Far East to the US East Line fell by US0 to US,751, a weekly decrease of 1.32%; The TEU freight rate fell by US to US,000, a weekly increase of 0.99%; the Far East to Mediterranean line's per TEU freight rate fell by US to US,361, a weekly decrease of 1.16%.

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 week fell by US to US1; the freight rate per TEU from the Far East to South Korea increased by US from the previous week to US5.

Industry analysts pointed out that since July, the freight rates on the West-West route have been significantly revised, mainly due to the addition of new voyage services by container shipping companies, and the addition of new liners and low-priced small ships to seize the market, resulting in an increase in supply, while market demand is stable. The recovery is not enough to absorb the new capacity, causing freight rates to fall back. It is expected that the related price reduction benefits will spread to this week, and it will depend on the market situation in August.

As for the US East route, industry insiders point out that since there are no overtime ships and new sailing services, and the Panama Canal still has traffic restrictions, the supply has not increased and prices are relatively stable. However, whether the labor contract negotiations for East US dock workers have Smoothness and the threat of strikes by Canadian railway transport workers are all uncertain factors, which have also led to less downward pressure on freight rates in the US East. However, the European market has been continuously affected by the Red Sea crisis, and freight rates have also been slightly revised, but with little fluctuation.

Compared with the situation in 2017 to 2019, when freight rates peaked, there would be significant retracement characteristics. Judging from the break from the usual neutral performance in June this year and the slight front-loading of the peak season from July to August, this year’s seasonal fluctuations It is difficult to fully refer to the historical trends of previous years. Industry analysis pointed out that the structural shortage of ships is the core contradiction, and there is not enough capacity increase in the short term to alleviate this contradiction. It is estimated that the shortage of ships will not be alleviated until October, but at the same time structural problems still exist.