The freight rate of container shipping fell for the eighth consecutive week, and the freight rates of the three major long-haul routes fell year-on-year. However, the industry expects that the freight rates will soon bottom out, and the freight rates are expected to rebound slightly in March.

According to the latest data released by the Shanghai Airlines Exchange on March 3, the Shanghai Export Containerized Freight Index (SCFI) fell 15.6 points to 931.08 points last week, a weekly drop of 1.65%. Not only did it show eight consecutive declines, but it also stayed below the 1,000-point mark for four consecutive weeks, but the decline was significantly restrained from the 2.87% of the previous week, reflecting that the declines in the three major long-haul freight rates also converged simultaneously.

Last week, the freight rate per TEU on the Far East to Europe line fell by US$17 to US$865, a decrease of 1.93%, which was less than the 3.08% decline in the previous week. The freight rate per FEU on the route from the Far East to the West of the United States dropped by US$34 to US$1,200, a decrease of 2.76%, which was also restrained from the 3.06% decline in the previous week. The freight rate per FEU on the Far East to East US line dropped by US$70 to US$2,321 a week, and the decline narrowed from 4.21% to 2.93%.

In addition, the freight rate per TEU on the Far East-Mediterranean line dropped by US$5 to US$1,600, a decrease of 0.31%, which was obviously restrained from the 1.7% decline in the previous week. It is worth noting that the freight rate of the Asian line bucked the trend and rose by 14%.

Industry insiders pointed out that although the end consumer market is still digesting inventory, inflation has slowed down, and the pessimism in the market this year has gradually eased, coupled with the strong financial conditions of households and businesses in the United States, it will help maintain consumer and capital expenditures, and trade growth. Therefore, it is expected that the freight rate of container freight has approached the bottom, and the opportunity to see a slight rebound in freight rates from March cannot be ruled out.

In addition, the recent important conference in the shipping industry - the Pan Pacific Maritime Meeting (TPM) is a traditional occasion for container shipping companies to negotiate long-term contracts with cargo owners. The latest news shows that although the freight rate of the US line has plummeted, the container shipping company has no intention Concession, the long-term freight rate is only one-third lower than last year. Although the contract period has changed from the previous annual contract to a quarterly contract, the annual long-term contract on the American line has a smaller decline than expected, which is a big plus for the industry.

Source: International Shipping Network, Shipping Information