Container Ship Freight Rates Fall for 2 Consecutive Weeks... US West Coast Route Down $156

[Image source=Yonhap News]

[Asia Economy Reporter Dongwoo Lee] Container shipping rates on major routes for domestic export companies, such as Europe and the East Coast of the Americas, have declined for the second consecutive week.

According to the shipping industry on the 23rd, the Shanghai Containerized Freight Index (SCFI), a global shipping freight indicator, recorded 4,583.39 points as of the previous day, down 4.68 points from the previous week.

Freight rates on the East Coast of the Americas route fell by $156 to $10,544 per 1FEU (12-meter container) compared to the previous week. The East Coast route rates have continued to weaken following the announcement by French global shipping company CMA-CGM and others to freeze all irregular short-term freight rates until February next year.

The Europe route dropped $21 to $7,666 per 1TEU (6-meter container), marking a decline for two consecutive weeks. The Middle East route fell $48 to $3,687 per 1TEU compared to the previous week, and during the same period, the Mediterranean route also decreased by $39 to $7,335 per 1TEU.

On the other hand, the West Coast of the Americas route rose $124 to $6,343 per 1FEU, surpassing the $6,300 level again. The Australia-New Zealand route increased by $31 to $4,494 per 1TEU compared to the previous week. The South America route also rose by $24 to $10,211 per 1TEU.

The industry analyzed this as a temporary adjustment following several months of increases in the SCFI index. Securities firms forecast that the strong shipping freight rates will continue through the second half of the year as logistical bottlenecks at major ports on the North American West Coast have not been resolved.

According to the Southern California Marine Exchange, as of the 21st (local time), there were 85 container and cargo ships waiting to dock at the Port of LA. When converted to the total cargo volume on these 85 ships, it amounts to $26.2 billion. As bottlenecks at the Ports of LA and Long Beach worsen, the time it takes for container ships to berth from waiting areas has reached an all-time high.

A shipping industry official stated, "Due to increased shipping volumes, port congestion, and inland transportation delays, it will be difficult to resolve the bottlenecks anytime soon."

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