Container Ship Freight Rates Reach Record High of 3600... Upward Trend Continues

[Asia Economy Reporter Dongwoo Lee] The container freight index has once again reached an all-time high due to the global expansion of cargo volume.

According to the shipping industry on the 5th, the Shanghai Containerized Freight Index (SCFI), which aggregates freight rates for 15 container shipping routes, rose by 117.31 points from the previous week to 3613.07, marking a record high. Since its inception in October 2009, this is the highest level ever recorded, nearly four times the figure from the same period last year (925.50).

Freight rates for the US East Coast increased by $842 per 1FEU (one 40-foot container), reaching a record high of $8,475. The US West Coast route, a major route for domestic exporters, rose by $410 per 1FEU to $4,826.

During the same period, European route freight rates rose by $71 from the previous week to $5,887 per 1TEU (one 20-foot container), breaking the previous record.

The surge in container freight rates is attributed to the expansion of maritime cargo volume, congestion at US West Coast ports, and recent disruptions in logistics processing caused by a COVID-19 positive test result among international cargo ship boarding workers at Yantian Port in Shenzhen, China.

Experts predict that as cargo volume continues to increase, the upward trend in container ship freight rates will persist, with the freight index expected to surpass the 4000 mark.

An industry insider stated, "The current rise in container ship freight rates due to increased cargo volume is expected to continue through the third quarter of this year," adding, "There is also a possibility of breaking through the 4000 level."