Freight rates fall back to rising point!
2022-12-01 10:08:26
The decline in freight forwarding rate has not stopped, and the US-Spain line and the European line have fallen back to the rising point in 2020. The small peak season of shipment before the Spring Festival may "fail".
According to the latest data released by the Shanghai Shipping Exchange on November 25, the Shanghai Container Freight Index (SCFI) fell 76.94 points to 1229.9 points last week, narrowing from 9.45% in the previous week to 5.89%, this is the 23rd consecutive week of decline already, hitting a 28-month low since late August 2020. Freight rates on major routes fell across the board.
The FEU rate for the Far East to the West fell by $63 to $1,496. This is the first time the FEU rate has fallen below the $1,500 mark since late April 2020. The FEU rate for the Far East to the Eastern United States fell 4.9 percent to $3,687, the lowest since early August 2020.
Rates on the Far East to Europe line fell $72 to $1,100 per TEU, down from a 20% drop in the previous week, but back to the October 2020 starting point. The Far East to Mediterranean line dropped $125 to $1,842 per TEU.
The SCFI index fluctuated roughly between 800 and 1100 points during 2018-2019. Since 2020, affected by the N-COV, the shortage of labor and the port of stoppage caused the chaos of the global supply chain, the SCFI index has been rising all the way, reaching a record high of 5109 points in the first quarter of this year. However, since the second half of this year, freight rates have been falling, so far has not seen the bottom of the rebound, the industry is expecting the arrival of the year-end shopping season may be a disappointment.
As shipping rates continue to fall, the market is more pessimistic, with expectations that global inflationary pressures will have to ease before demand for commodities starts to pick up. Industry insiders expect that the high dividend era of the container shipping market is over, and the operation of shipping companies will return to normal level in 2023.
Looking ahead to 2023, in an environment clouded by high global inflation, consumption is expected to moderate next year, and with a large number of new ships coming into service, excess capacity supply will put pressure on subsequent rate increases.
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According to the latest data released by the Shanghai Shipping Exchange on November 25, the Shanghai Container Freight Index (SCFI) fell 76.94 points to 1229.9 points last week, narrowing from 9.45% in the previous week to 5.89%, this is the 23rd consecutive week of decline already, hitting a 28-month low since late August 2020. Freight rates on major routes fell across the board.
The FEU rate for the Far East to the West fell by $63 to $1,496. This is the first time the FEU rate has fallen below the $1,500 mark since late April 2020. The FEU rate for the Far East to the Eastern United States fell 4.9 percent to $3,687, the lowest since early August 2020.
Rates on the Far East to Europe line fell $72 to $1,100 per TEU, down from a 20% drop in the previous week, but back to the October 2020 starting point. The Far East to Mediterranean line dropped $125 to $1,842 per TEU.
The SCFI index fluctuated roughly between 800 and 1100 points during 2018-2019. Since 2020, affected by the N-COV, the shortage of labor and the port of stoppage caused the chaos of the global supply chain, the SCFI index has been rising all the way, reaching a record high of 5109 points in the first quarter of this year. However, since the second half of this year, freight rates have been falling, so far has not seen the bottom of the rebound, the industry is expecting the arrival of the year-end shopping season may be a disappointment.
As shipping rates continue to fall, the market is more pessimistic, with expectations that global inflationary pressures will have to ease before demand for commodities starts to pick up. Industry insiders expect that the high dividend era of the container shipping market is over, and the operation of shipping companies will return to normal level in 2023.
Looking ahead to 2023, in an environment clouded by high global inflation, consumption is expected to moderate next year, and with a large number of new ships coming into service, excess capacity supply will put pressure on subsequent rate increases.
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