Below 3000... Container Freight Rates 'Plummet'

[Asia Economy Reporter Yoo Hyun-seok] Container shipping rates have fallen below the 3000 mark after declining for 12 consecutive weeks.

According to the shipping industry on the 4th, the Shanghai Containerized Freight Index (SCFI), a global shipping rate indicator, recorded 2847.62 on the 2nd, down 306.64 points from the 26th of last month. The 306.64-point drop is the largest decline since SCFI statistics began being compiled in October 2009.

The SCFI soared to an all-time high of 5109.60 earlier this year but declined for 17 consecutive weeks amid the Chinese Lunar New Year holiday and lockdown measures. Afterwards, expectations of increased cargo volume due to the easing of China's lockdown measures led to a rise for about a month, but it turned downward again from June 17. Currently, the SCFI has fallen to the level of early April last year.

All seven routes declined. Specifically, the West Coast of America route dropped $1,175 per 1 TEU (6-meter container) to $3,959. The East Coast route fell by $483 to $8,318.

Additionally, the South America route was recorded at $7,981, down $847. The Mediterranean and Europe route rates also fell by $297 and $189 from the previous week, to $4,774 and $4,252, respectively. The Middle East route dropped $290 to $1,767.

Regarding the decline in freight rates, the industry analyzes that global economic uncertainty caused by factors such as inflation has reduced container shipping demand, leading to the downward trend in rates. Additionally, the easing of port congestion, which was one of the causes driving the rate increases, is also cited as a contributing factor.

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