Container Freight Index... 'Decline' for 2 Consecutive Weeks

[Asia Economy Reporter Yoo Hyun-seok] Global container freight rates have fallen for the second consecutive week.

According to the shipping industry on the 26th, the Shanghai Containerized Freight Index (SCFI) recorded 4216.13 on the 24th. This is a decrease of 5.83 points compared to the 17th.

The decline in the index was not significant. The SCFI had risen to a peak of 5109.60 in January. However, due to the Chinese Lunar New Year holiday and lockdown measures, it fell for 17 consecutive weeks until the 13th of last month.

Since then, expectations of increased cargo volume due to the easing of China's lockdown measures led to a continuous rise for about a month.

Some routes showed differentiation. Freight rates on the US East Coast and West Coast routes fell by $269 and $111 per 1TEU, respectively, to $9,804 and $7,378. The Mediterranean route also dropped by $62 to $6,425. The European route recorded a decrease of $27 to $5,766.

On the other hand, the South America route rose by $252 to $7,884. The Middle East route also increased by $124 to $3,541.

Meanwhile, the Hong Kong South China Morning Post (SCMP) reported on the 25th that container freight rates from China to the US are declining due to a slowdown in consumption caused by the worst inflation in 40 years in the US.

According to the Freightos Baltic Index (FBX), which tracks sea freight prices, the spot freight rate for a 2TEU container from Asia to the US West Coast ports such as Los Angeles and Long Beach fell 3% this week to $8,934 (approximately 11.58 million KRW). The spot freight rate for a 2TEU container from Asia to the US East Coast also dropped 1% this week to $11,589 (approximately 15 million KRW).

SCMP stated, "There were expectations that container transport demand would increase as Shanghai was released from a two-month lockdown, but congestion at Shanghai port is at a minimum level." It added, "Freight rates are falling due to the slowdown in US consumption."