After three consecutive weeks of increases, the Shanghai Containerized Freight Index (SCFI) saw a decline last week, dropping 3% to 2,252 points. Meanwhile, the recent Drewry World Container Index (WCI) also indicates that spot rates on Asia-Europe routes have stabilized, while those on trans-Pacific routes have declined.
For the week ending last Friday, SCFI rates on the Shanghai-North Europe route fell 1% compared to the previous week, reaching $5,024/FEU. Rates on the Shanghai-Mediterranean route edged up by 1% to $6,160/FEU. Rates for the Shanghai-U.S. East Coast route dropped 4% to $5,062/FEU, while those for the Shanghai-U.S. West Coast route declined 12% to $4,181/FEU.
The market is widely concerned about potential supply chain disruptions caused by another strike at U.S. East Coast and Gulf Coast ports, set to begin on January 16. Reports suggest that U.S. importers have already expedited shipments to the U.S. and are increasingly turning to West Coast ports. However, the SCFI has not yet reflected any impact on spot rates.
Last week, WCI spot rates for Shanghai to Rotterdam increased by 2% to $4,043/FEU, while rates for Shanghai to Genoa remained unchanged at $4,400/FEU. Spot rates for Shanghai to New York stood at $5,222/FEU, also unchanged, while rates for Shanghai to Los Angeles dropped 2% to $4,700/FEU.
Omar Nokta, an analyst at securities and investment bank Jefferies, stated that container freight rates have generally stabilized, with a notable weakening on the Asia-U.S. West Coast route. However, from a historical perspective, rates remain at high levels.
