Container Ship Freight Rates Soar Beyond 4300 Level... 15 Consecutive Weeks of Increase

[Asia Economy Reporter Dongwoo Lee] The Shanghai Containerized Freight Index (SCFI), a representative indicator of container sea freight rates, has risen for 15 consecutive weeks, setting a new all-time high once again.

According to the shipping industry on the 21st, the SCFI, which aggregates freight rates for 15 container shipping routes, stood at 4340.18 as of the previous day, up 58.65 points from the previous week. This is the highest level since the index began in October 2009.

Freight rates on all routes except the Asia-Europe route rose, breaking records across the board. In particular, freight rates on the North America route, a major route for domestic exporters, showed strong performance.

Freight rates on the East Coast of the Americas route increased the most during the week, rising by $424 per 1 FEU (12-meter container) to $10,876, while the West Coast of the Americas route also rose by $183 per FEU to $5,927, approaching $6,000.

During the same period, the Asia-Mediterranean route rose by $29 per 1 TEU (6-meter container) to $7,080, and the Middle East route also set a new record at $3,720, up $77 from the previous week. The Australia-New Zealand route increased by $55 to $3,772, and the Asia-South America route rose by $25 to $9,845.

Freight rates on the Europe route fell for the second consecutive week, dropping $9 per 1 TEU to $7,398.

The industry analyzes that the reason the container shipping freight index is soaring to record highs is due to increased shipping demand from global economic recovery and ongoing port congestion at major global ports such as China and the North American West Coast caused by the prolonged COVID-19 pandemic.

A shipping industry official said, "Freight rate strength is expected to continue for the time being due to increased cargo volumes during the second half of the year, including Black Friday and Thanksgiving."

This content was produced with the assistance of AI translation services.