Affected by the weak global demand and economic downturn, major indices show that freight rates continue to decline. The Shanghai Container Freight Index (SCFI) fell 24.53 points to 906.55 points in the latest issue, down 2.63% week-on-week, and has fallen for nine consecutive weeks. The latest issue of the Deloitte World Containerized Freight Index (WCI) also fell 3%. Just in the past week, the European line because of the reduction of cabin factors, part of the market burst phenomenon, shipping companies are expected to raise freight rates on April 1, the industry estimates that up to 2 hundred U.S. dollars per large box, but whether the success remains to be seen.
The latest issue of SCFI data show that the Shanghai to Europe route tariff fell below the thousand dollar mark began to signal a stop, for $865 / TEU, flat with the previous week; Mediterranean route tariff of $1589 / TEU, down $11 compared to the previous week, a slight drop of 0.68%.
Large freight forwarders pointed out that, in addition to the European line, part of the market to the U.S. Mexico bend area, including Houston, Mobile, Kansas, etc. have burst cabin phenomenon, shipping companies have April price increase plan, but whether the success will have to observe the subsequent shipping company to reduce the class condition and cargo growth or not.
What is more worrying for the industry is that the U.S. East route is starting to make up for the drop. Far East to the U.S. West freight rate of $ 1163 / FEU, down $ 37 per week, down 3.08%; U.S. East 2194 U.S. dollars per large container, down $ 127 per week, down 5.47%. Industry sources said that the U.S. West prices are basically the bottom, the U.S. East prices and the epidemic before compared with the space to fall.
South America line (Santos): The lack of further growth in transport demand has led to a weakening of supply and demand fundamentals, and freight rates have been on a downward trend recently. Shanghai to South America basic port freight rate of $ 1,378 / TEU, a weekly decline of $ 104, down 7.02%.
Persian Gulf route: the recent transport market performance is relatively sluggish, the growth of transport demand is weak, the supply and demand relationship is poor, market rates continue to fall. Shanghai to the Persian Gulf basic port market tariff of $ 878 / TEU, down 9.0% compared with the previous period.
Australia and New Zealand route: The local market demand for all kinds of materials has been hovering at a low level after the long holiday, transport demand is recovering slowly, the supply and demand fundamentals are weak, and the market freight rate continues to adjust trend. The basic port tariff from Shanghai to Australia and New Zealand was US$280/TEU, down 16.2% from the previous period.
As for the near-ocean line, Far East to Japan Kansai and Kanto are both flat compared with the previous week; Far East to Southeast Asia (Singapore) at USD 177 per TEU, up USD 3 or 1.69% compared with the previous week; Far East to Korea is down USD 2 compared with the previous week.