Shipping companies to reduce prices to stock up! The SCFI index fell twice in a row
Shanghai's export container freight index (SCFI) fell for two consecutive weeks as shipping companies cut prices to stock up for the Spring Festival holiday.
According to the latest data released by the Shanghai HNA Exchange on January 17, the SCFI index fell 159.86 points to 2130.82 points last week, a weekly decline of 6.97%. The four major ocean routes in Europe and the United States continued to fall, with a larger decline on the western line.
Last week, the FEU freight rate for the Far East to the West fell by $450 to $4,232, a weekly decline of 9.61%; FEU freight on the Far East to the United States East line fell by $269 to $5,960, a weekly decline of 4.31%; The Far East to Europe line dropped $161 per TEU to $2,279, a weekly decline of 6.59%; The Far East to Mediterranean line freight rate fell by $150 per TEU to $3,327, a weekly decline of 4.31%.
On the oceanic line, the freight rate per TEU from the Far East to Kansai, Japan was unchanged from the previous week, at $305; Far East to Japan Kanto freight per TEU unchanged from the previous week at $308; Freight rates from the Far East to Southeast Asia fell $40 per TEU to $524 from the previous week; As far away as South Korea, the freight rate per TEU was flat from the previous week at $139.
The industry said that there are three main factors to pull down freight rates, including the United States East strike alarm, the closer to the New Year, shipping companies for the Spring Festival flight stock price reduction grab goods, and US President Trump took office on January 20, will issue a number of new policies to add uncertainty, the market wait-and-see atmosphere is strong, is expected next week stock prices may have room for revision.
Last week, the main route per FEU stock price, there are freight forwarders quoted about $3000-3600 on the West line, about $5000-5600 on the East line, about $3000-3400 on the European line, the stock price does not guarantee shipping space, the container company will digest during the Spring Festival holiday, and the spot price is now shipped out.
Industry insiders said that if the annual price signed by the consolidation company is seen, the current freight rate can still have a higher profit, and it is also the factor that pulls down the freight rate. In order to reduce the downward revision pressure of freight rates in the spot market, the container shipping company supports freight rates by reducing supply due to the adjustment of shipping space.
In the future, there are many uncertain factors in the container market, Israel and Hamas signed the first phase of the ceasefire agreement, but it has not been finalized, and Trump's tariff policy will not cause an early rush tide, and there is still a chance to affect the freight rate after the year.
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