Container Freight Rates Hit Another Annual Low... Down 55% Year-on-Year

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The Shanghai Containerized Freight Index (SCFI), which indicates the freight rate levels of maritime shipping routes, has once again hit its lowest point of the year. This marks the 15th consecutive week of decline.

According to the shipping industry on the 23rd, the SCFI, which aggregates freight rates for 15 container shipping routes, recorded 2072.04, down 240.61 points (p) from the previous week. This figure is about 55% lower compared to the same day last year, marking the lowest level of the year.

The decline in overall freight rates was driven by a sharp drop in rates on major routes to the Americas and Europe. The freight rate for the West Coast of the Americas, the route with the highest weight, fell by $366 per 1FEU (12-meter container) to $2,684. This is the first time since July 24, 2020, that the rate on this route has fallen below the $3,000 mark.

Freight rates to the East Coast of the Americas also dropped by $638 per 1FEU, reaching the year's lowest level of $6,538.

Freight rates on European routes fell by $382 per 1TEU (6-meter container) to $3,163 compared to the previous week.

The shipping industry views this as a normalization process of maritime freight rates, which had surged due to the impact of COVID-19.

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