Shipping peak season is coming ahead of schedule! SCFI hit a 22-month high
The Red Sea crisis has not solved, the European port strikes have erupted, and the Shanghai export container freight index (SCFI) has risen for 11 consecutive weeks to a new high.
According to the latest data released by the Shanghai HNA Stock Exchange on June 21, the SCFI index rose 96.38 points to 3475.6 points last week, refreshing the new high since late August 2022, with a weekly increase of 2.85%. The freight rate of the four major ocean routes continued to rise, of which the United States line increased significantly.
Last week, the FEU freight rate from the Far East to the West rose by $267 to $7,173, a weekly increase of 3.86%; The freight rate of the Far East to the United States East line increased by $284 per FEU to $8,277, a weekly increase of 3.55%; Far East to Europe freight increased by $157 per TEU to $4,336, a weekly increase of 3.75%; The Far East to Mediterranean line freight rate increased by $7 per TEU to $4,855, a weekly increase of 0.14%.
On the oceanic line, the freight rate per TEU from the Far East to Kansai, Japan was unchanged from the previous week at $293; Far East to Japan Kanto freight per TEU unchanged from the previous week at $299; Far East to Southeast Asia freight per TEU increased by $60 from the previous week to $739; The freight rate from the Far East to South Korea was $169 per TEU, up $6 from the previous week.
Industry analysis pointed out that the Middle East war is one of the important reasons affecting the current freight rate. In addition, affected by the situation in the Red Sea, the shortage of ships and cabins has spread to Asian ports, and if market demand continues to be strong, port congestion during the traditional peak season will be difficult to ease.
At present, the industry generally expects freight rates will continue to rise in July. Maersk Line has informed customers of a $2,000 per FEU rate increase on the European line on July 1, and Mediterranean Shipping has also informed customers of a $2,000 per FEU rate increase on the U.S. East Line on July 1.
On the other hand, although some international container shipping companies plan to increase the number of shifts, in fact, the tight supply chain situation is not greatly improved. Mainly is the current market variables, in addition to geopolitics, the recent major European ports including Hamburg, Bremen and other strikes, the United States East port labor negotiations are still continuing, some cargo owners to avoid further expansion of the strike tide, affecting the entire supply chain, the recent is also actively robbing the shipment, the market demand is still strong.
In addition, the intensified port congestion in Singapore has brought forward the peak season this year, driving up freight rates. Analysts believe this means that the peak season may end early, and the high freight rate may not begin to ease until September.
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