Container Freight Rates Break Through 3700 Level... Consecutive Days of Record Highs

Busan New Port 4th Pier

[Asia Economy Reporter Dongwoo Lee] Container shipping rates have surpassed the 3,700 mark, setting a new all-time high once again.

According to the shipping industry on the 12th, the Shanghai Containerized Freight Index (SCFI), which aggregates rates from 15 container shipping routes, rose by 96.86 points from the previous week to 3,703.93. This is the highest level since the index began in October 2009, representing a 3.64-fold increase compared to the same period last year (1,015.33).

Rates for Europe and the Mediterranean routes have surpassed the $6,000 level for the first time ever. The Asia-Europe route rate reached $6,355 per 1TEU (a 6-meter container), up $468 from the previous week, showing the largest increase. The Mediterranean route recorded $6,272 per 1TEU, up $320.

The West Coast of the Americas route rate slightly declined by $168 from the previous week to $4,658 per 1FEU (a 12-meter container). During the same period, the East Coast of the Americas route rate rose by $79 to $8,554 per 1FEU.

The Asia-South America route also surpassed the $9,000 level for the first time, reaching $9,120 per 1TEU. During the same period, the Asia-Middle East route recorded $2,937 per 1TEU, and the Australia-New Zealand route increased by $125 to $2,279.

The continuous rise in container shipping rates is analyzed to be due to a surge in global cargo volumes following COVID-19, ongoing congestion at the Long Beach and Los Angeles (LA) ports on the North American West Coast, and recent disruptions caused by COVID-19 infections among international cargo ship workers at Shenzhen Yantian Port in China.

Shipping experts predict that the container shipping rate increase will continue through the third quarter of this year, with the SCFI rate index surpassing 4,000 and setting a new all-time high.