Container Ship Freight Rates Hit Record High for 19 Consecutive Weeks... European Routes Surpass $7,500

SCFI Index 4622.51
Up 54.35 Points Compared to Last Week

[Asia Economy Reporter Dongwoo Lee] The Shanghai Containerized Freight Index (SCFI), a representative indicator of container sea freight rates, has risen for 19 consecutive weeks, reaching an all-time high.

According to the shipping industry on the 18th, the SCFI, which aggregates freight rates for 15 container shipping routes, stood at 4622.51 points as of the previous day, up 54.35 points from the previous week. This is the highest level since the index began in October 2009.

Freight rates for all routes except the US West Coast route hit record highs.

The US East Coast route freight rate rose by $83 per 1FEU (12-meter container) to a record high of $11,759. During the same period, the European route freight rate also increased for the third consecutive week, rising $33 to $7,524 per 1TEU (6-meter container).

The Asia-Mediterranean route showed the largest increase of $146 per 1TEU, reaching $7,511, marking the first time it surpassed the $7,500 level. The Middle East route also rose by $19 to $3,960, approaching the $4,000 mark.

The Australia-New Zealand route increased by $102, reaching an all-time high of $4,300, while the Asia-South America route continued its upward trend, rising $43 to $10,191 during the same period.

In contrast, the US West Coast route stood at $6,322 per 1FEU, halting its 11-week consecutive rise.

Experts analyze that container ship freight rates will continue to rise until the end of the year due to increased cargo volumes caused by the spread of the COVID-19 Delta variant, which has led to congestion at major global ports.

A securities industry official said, "In the second half of this year, the traditional increase in cargo volumes coincides with pent-up demand from the COVID-19 pandemic, causing container ship supply to be insufficient, so freight rates are expected to continue rising for the time being."