[Asia Economy Reporter Dongwoo Lee] Container shipping rates on major routes for domestic export companies, including Europe and the East and West coasts of the Americas, have all declined simultaneously.
According to the shipping industry on the 16th, the Shanghai Containerized Freight Index (SCFI), a global shipping freight indicator, recorded 4,588.07 points as of the previous day, down 59.53 points from the previous week.
The freight rate for the West Coast of the Americas route dropped by $152 to $6,219 per 1FEU (12-meter container) compared to the previous week. This is the first decline in the West Coast of the Americas route freight rate in 18 weeks since June 11 ($4,658).
The East Coast of the Americas route plummeted by $414 to $10,700 per 1FEU compared to the previous week. This is attributed to the announcement by some carriers, including France's CMA-CGM, the world's third-largest shipping company by capacity, that all non-regular short-term freight rates will be frozen until February next year.
The Asia-Europe route also fell by $27 to $7,687 per 1TEU compared to the previous week, entering a correction phase after surpassing $7,700 for the first time last week. The Middle East route dropped by $124 to $3,735 per 1TEU compared to the previous week, and the South America route also decreased by $39 to $10,187 per 1TEU.
On the other hand, the Australia-New Zealand route rose by $45 to $4,463 per 1TEU.
The industry analyzed this as a temporary adjustment following several months of rising SCFI index. It is seen that freight rates between China and the United States were affected as corporate production was disrupted due to China's power shortages.
However, as logistics bottlenecks at major global ports such as the Port of Los Angeles on the West Coast of the Americas reach their peak, the strong shipping freight rates are expected to continue through the second half of this year.
A securities industry official said, "While bottlenecks caused by port congestion near the North American West Coast persist, shipping freight rates are expected to remain strong in the fourth quarter of this year as well."
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