Container Ship Freight Rates Hit Record High...Logistics Crisis Due to Omicron Impact

[Asia Economy Reporter Park Hyungsoo] As the COVID-19 Omicron variant spreads, the logistics crisis continues.

According to the shipping industry on the 12th, the Shanghai Containerized Freight Index (SCFI) recorded 4,810.98, up 83.92 points from the previous week. This is the highest level since the related statistics began to be compiled in October 2009.

The SCFI entered a correction phase after the traditional peak season in the third quarter ended. Since mid-last month, when the Omicron variant emerged, it has been on the rise again.

With major countries strengthening lockdown measures due to the spread of Omicron, and large year-end events such as Christmas and the Chinese Lunar New Year (Chunje) approaching, the possibility of congestion at ports worldwide has increased. This is why there are expectations that the SCFI will surpass the 5,000 mark.

Freight rates on routes to the Americas and Europe are leading the rise in the SCFI, and domestic export companies that mainly use these routes are expected to be hit. The freight rate for the US West Coast route reached a record high of $7,300 per 1FEU (one 40-foot container). The US East Coast freight rate also recorded $10,644 per 1FEU.

Freight rates on European routes also rose by $10 from the previous week to $7,597 per 1TEU (one 20-foot container).

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