Container Ship Freight Rates Rise for 16 Consecutive Weeks... Transpacific Rates Surpass $11,000

Shanghai Container Freight Index (SCFI) Strengthens
Asia-South America Route Hits $10,000 Mark for First Time
European Route Declines for Third Consecutive Week

[Asia Economy Reporter Dongwoo Lee] The Shanghai Containerized Freight Index (SCFI), a key indicator representing container sea freight rates, has set a new record high for 16 consecutive weeks.

According to the shipping industry on the 28th, the SCFI, which aggregates freight rates for 15 container shipping routes, stood at 4,385.62 as of the previous day, up 45.44 points from the previous week. This is the highest level since the index began tracking in October 2009.

Freight rates on all routes except the Asia-Europe route rose, pushing the index to a record high. In particular, freight rates on the North America route, a major route for domestic exporters, showed strong performance.

Freight rates on the trans-Pacific route rose by $262 per 1 FEU (12-meter container) from the previous week to $11,138. This is the first time this route has surpassed the $11,000 mark. The West Coast route also increased by $22 per FEU to $5,949, approaching the $6,000 level.

During the same period, the Asia-Mediterranean route rose by $45 per 1 TEU (6-meter container) to $7,125, and the Middle East route also set a new record high, increasing by $56 from the previous week to $3,776. The Australia-New Zealand route rose by $190 to $3,962, nearing the $4,000 level. The Asia-South America route increased by $155, reaching $10,000 for the first time ever.

Freight rates on European routes fell for the third consecutive week, dropping by $33 per 1 TEU to $7,365.

The industry analyzes that the reason container ship freight indices are 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. The third quarter is expected to maintain the upward trend in freight rates as demand surges ahead of the year-end season, traditionally marked by increased cargo volumes such as Black Friday.

A securities industry official said, "As we enter the seasonal peak in the second half of the year, the freight rate increase is expected to continue through the fourth quarter."

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