The Shanghai Stock Exchange announced today (29) the latest SCFI composite index (Shanghai Export Container Freight Index), showing a seven-week decline, and the point of decline continued to expand, falling 108.92 points from last week to 3,887.85 points, writing last year’s 7 The month-to-month low, the three major long-haul routes continued to decline, and the declines of the European routes expanded.
Among the three major routes, the latest quotation for the US East Line is US$9,348 per FEU (standard 40-foot container), a further drop of US$93, the lowest since the beginning of July last year. The lowest level since early November last year.
The freight rate per TEU (standard 20-foot container) on the European line came to US$5,416, a further drop of US$154, and the decline expanded to 2.76%, the lowest since early May last year.
Cargo operators do not deny that the terminal demand is weak, and the volume of goods in peak season has not increased as expected. However, due to the protests of truck drivers in the United States, the port is still blocked, and some cargo owners have turned their goods to the east of the United States, and supply chain bottlenecks still exist. Helping ocean freight rates remain relatively high.
However, it should be noted that the US retail giant Walmart has slashed its financial forecast a few days ago, due to the pressure of inflation, which has reduced consumer spending on non-essential goods, so it needs to cut prices to clear inventory.
Cargo operators believe that it will take some time for the terminal to clear the inventory, but the demand for holidays such as Thanksgiving and Christmas in the fourth quarter of Europe and the United States still exists. As manufacturers stock up on holiday business opportunities, it is expected that the downward pressure on freight rates should ease following August.
