SCFI Rises for Fifth Consecutive Week, Returning to 3,500 Points! US East Coast Rates Break $10,000

en.Wedoany.com Reported - Container shipping rates continue to climb, with the Shanghai Containerized Freight Index (SCFI) returning to above 3,500 points.

According to the latest data released by the Shanghai Shipping Exchange on August 28, the SCFI rose 99.91 points to 3,509.54 points last week, marking the fifth consecutive weekly increase with a weekly gain of 2.93%. The four major long-haul routes showed a clear divergence in trends, with US-bound rates continuing to rebound while Europe and Mediterranean routes saw further declines.

Last week, rates from the Far East to the US West Coast rose $175 per FEU to $6,940, a weekly increase of 2.59%; rates from the Far East to the US East Coast rose $346 per FEU to $10,046, a weekly increase of 3.57%; rates from the Far East to Europe fell $126 per TEU to $2,716, a weekly decrease of 4.43%; and rates from the Far East to the Mediterranean fell $210 per TEU to $3,557, a weekly decrease of 5.58%.

On near-sea routes, rates from the Far East to Kansai, Japan remained flat week-on-week at $319 per TEU; rates from the Far East to Kanto, Japan rose $11 week-on-week to $334 per TEU; rates from the Far East to Southeast Asia rose $68 week-on-week to $796 per TEU; and rates from the Far East to South Korea rose $20 week-on-week to $232 per TEU.

Industry insiders believe that the core support for this round of US-bound rate rebound comes from capacity management and Panama Canal transit restrictions. Due to drought caused by the El Niño phenomenon, the Panama Canal's transit capacity has been continuously tightened, with the daily number of transiting vessels set to be reduced from 36 to 34 on September 3, and further to 32 on September 15. Meanwhile, container shipping companies have continued to implement capacity management measures, jointly supporting the implementation of rate increases on the US East Coast route in the first half of September.

Currently, spot market quotes for the US West Coast route in the first half of September are approximately $7,500 to $7,700 per FEU, with several shipping companies having raised rates by $300 to $400, though some carriers have maintained original prices; long-term contract customer rates are around $6,000-plus. The US East Coast route has seen more pronounced increases, with spot rates rising approximately $500 to $600, and some quotes have already exceeded $10,000 per FEU. As some vessels need to transit the Panama Canal while others divert via the Cape of Good Hope, extended voyage times and increased operating costs have further pushed up rate levels, with long-term contract customer rates also rising to above $9,000.

In contrast, the Europe route has shown relatively weaker performance. Current market quotes are approximately $3,800 to $4,500 per FEU. With a large number of 20,000 TEU-class ultra-large container vessels being deployed on the Europe route, overall capacity is relatively ample. If major European container shipping companies experience insufficient slot utilization, subsequent rate increases will still face considerable pressure.

At present, the global shipping supply chain continues to be disrupted by multiple factors. The water level of the Panama Canal continues to decline, and coupled with weather factors such as typhoons in Asia, vessel scheduling and port operation efficiency have been disrupted. The handling capacity of some port terminals and logistics connectivity efficiency have not yet fully recovered, and global port congestion has not been completely resolved. In addition, structural factors such as route adjustments, increased diversions, and geopolitical risks continue to support overall rate levels remaining relatively high.

Looking ahead, as climate factors gradually weaken, congestion at Asian ports is expected to ease, and with the fourth quarter entering the traditional off-season for demand, supply-side support on US routes may weaken somewhat. The industry expects that the container shipping market in the fourth quarter may see a "decline in both volume and price" trend, with cargo volumes falling and rates under pressure.