Global Shipping Rates Decline for 5 Consecutive Weeks...Concerns Over Economic Recession

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] Global container shipping rates have fallen for five consecutive weeks.

According to the industry on the 16th, the Shanghai Containerized Freight Index (SCFI) recorded 4,074.70 on the 15th, down 69.17 points from the previous week.

The SCFI had been on the rise since September 2020. It surpassed 3,000 points in April last year and 4,000 points in July. In January, it reached an all-time high of 5,109.60.

However, it declined for 17 consecutive weeks due to the Chinese Lunar New Year holiday and lockdown measures. Although the easing of China's lockdown measures raised expectations of increased cargo volume, leading to a temporary rise, the index has been declining since the 17th of last month.

Among the seven routes, only the South America route increased, rising by $358 per 1 TEU to $9,312 compared to the previous week. Meanwhile, Europe recorded $5,612, down $85 from the previous week. The Mediterranean route also fell by $87 to $6,268.

The Middle East route dropped $108 to $3,201. Additionally, the Australia-New Zealand route decreased by $123 to $3,186, the West Coast of the Americas route fell by $233 to $6,883 per 1 FEU (12-meter container), and the East Coast of the Americas route also declined by $68 to $9,534.

This decline in shipping rates appears to reflect concerns about an economic recession. The industry analyzes that various factors such as global inflation and weak raw material prices have also influenced this trend.

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