Rates continue to fall on all routes! American and Spanish freight rates fell sharply
Recently, the freight rates of the four major routes in Europe and the United States continue to be affected by the three major factors of overtime ships, non-alliance ships and slight decline in cargo volume, showing a downward trend. The latest Shanghai Container export Freight Index (SCFI) released on the 26th shows that the index this week was 34467.87 points, down 94.57 points from the previous week, a decline of 2.67%, which is the third consecutive week of decline.
Specifically, the four major ocean routes compared with the previous period, in addition to continuing to all show a decline, the decline is not much different, of which the United States West route freight rate decline is still the most significant, more than 6%, has fallen below the $7,000 mark, non-alliance shipping companies have begun to seize the supply of goods at a price below $6,000, becoming the most drastic tariff adjustment route.
According to Alphaliner, global shipping capacity continues to climb and now stands at 30,344,347 equivalent units (TEUs), once again setting an all-time high. This trend reflects the continued pursuit of high freight rates by shipping companies in Europe and the United States, and they have increased investment by increasing overtime vessels and opening new routes. In particular, non-alliance shipping companies are actively entering the Mediterranean Sea and the US-West route, which intensifies the market competition.
In this highly competitive route, the fast turnover rate of ships makes it the focus of all parties. Non-alliance shipping companies have begun to grab supplies at prices below $6,000, with a cumulative decline of nearly $1,600. Industry analysts pointed out that the US-West route is affected by new services and overtime ships, and the supply continues to increase, leading to a continuous correction in freight rates, and it is expected that it will continue to decline slowly in the next two weeks. In contrast, freight rates on European routes are relatively stable and the decline has moderated.
Despite the loosening of freight rates, the Shanghai container export freight index SCFI fell by 7.66% for three consecutive weeks, showing the strength of the market adjustment. However, compared with the rise of 13 consecutive weeks between early April and early July, the current freight rate is still at a high level, and the shipping company has maintained a strong profit.
In addition, the British shipping consultancy Delury forecast on Thursday that the container shipping market has reached its peak, but due to external factors such as the Red Sea crisis, spot freight rates are expected to remain at a relatively high floor level for some time. At the same time, the freight forwarding company revealed that the shipping company has suspended the plan to further push up freight rates on August 1, and the scope of subsequent freight rate reduction is expected to gradually narrow.
This week's SCFI Freight Index:
The freight rate from the Far East to Europe was $4,991 /TEU, falling below the $5,000 level, down $9, or 0.18%;
Far East to Mediterranean freight was $5,270 /TEU, down $91, or 1.7%, from the previous week.
The Far East to West America freight rate was $6,663 /FEU, down $461, or 6.47%, from the previous week;
The freight rate from the Far East to the United States East was 9557 US dollars /FEU, down 194 US dollars or 1.99% from the previous week;
Persian Gulf shipping rate of $2,219 per box, up $26, or 1.19%;
South America route (Santos) freight per box 7939 US dollars, down 273 US dollars, down 3.32%;
Offshore line:
Southeast Asia route (Singapore) freight per box 673 US dollars, down 38 US dollars, down 5.34%;
From the Far East to Kansai and Kanto, Japan, $293 and $299, unchanged from last week;
The Far East to South Korea was flat at $165 per TEU.
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