The Shanghai Stock Exchange announced today (26) the latest SCFI composite index (Shanghai Export Container Freight Index), showing a decline for 11 consecutive weeks. The decline further expanded to 8%, the largest decline in a single week since the epidemic. The freight rates of the three major long-haul routes all plummeted, and the western US route fell the most by 11% in a single week.
Among the three major routes, the latest quotation of the US Eastern route came to US$8,801 per FEU (standard 40-foot container), a weekly drop of US$191, or a decrease of 2.12%. Compared with the other two long-haul routes, it was resistant to decline, but it was a new low since mid-June last year.
The western line of the United States fell as much as $648 to $5,134, the decline expanded to 11.2% from 6% last week, and quickly dropped to a new low since mid-July last year.
The freight rate per TEU (standard 20-foot container) on the European line was also difficult to stop falling, reaching US$4,441, a weekly drop of US$347 or 7.25%, hitting a new low since late April last year.
Judging from the current freight rate, shipping has determined that the peak season in the third quarter is not prosperous. The freight forwarder believes that with the rapid decline of freight rates, it cannot be ruled out that the cargo owner still has the possibility of renegotiating with the shipping company.
