Container Ship Freight Rates Rise for 3 Consecutive Weeks... Prolonged Congestion at US West Coast Ports

SCFI Index 4601.97
Up 46.76 Points Compared to Last Week

[Image source=Yonhap News]

[Asia Economy Reporter Dongwoo Lee] Global shipping freight rates have shown an upward trend for three consecutive weeks.

According to the shipping industry on the 27th, the Shanghai Containerized Freight Index (SCFI), a global shipping freight rate indicator, recorded 4601.97 points as of the previous day, up 46.76 points from the previous week.

The trans-Pacific Eastbound route freight rate rose by $12 from the previous week to $10,427 per 1FEU (12-meter container).

During the same period, the Middle East route increased by $22 from the previous week to $3,360 per 1TEU (6-meter container), while the Australia-New Zealand route and South America route also rose by $3 and $2 per 1TEU, reaching $4,448 and $10,137 respectively.

The trans-Pacific Westbound route remained flat following last week. The freight rate was $6,730 per 1FEU, the same as two weeks ago. The Mediterranean route also showed no change at $7,234 per 1TEU compared to last week.

On the other hand, the Europe route freight rate fell by $3 from the previous week to $7,549 per 1TEU, marking a decline for four consecutive weeks.

The industry analyzed that the rise in the SCFI index was due to continued congestion at major U.S. ports such as LA and Long Beach, causing vessels to be delayed. The prolonged COVID-19 pandemic has led to a shortage of labor to move logistics from ports inland.

Furthermore, the increase in year-end cargo volumes due to Christmas, Black Friday, and other events is expected to delay the resolution of logistics bottlenecks, leading to continued freight rate increases for the time being.