Shanghai Freight Index Rises 0.4% for Second Consecutive Week

The Shanghai Containerized Freight Index rose 0.4% week-on-week to 3,679.58 points in the reading issued on October 16, marking its second consecutive weekly increase, according to data from the Shanghai Shipping Exchange.

Freight rates on the route to Northern Europe rose 3% to $2,335 per TEU, and to the Mediterranean by 8% to $3,250. The Middle East route climbed 0.3% to $6,474, while rates to East Coast South America dropped 7%, and India and Pakistan fell 6%.

On the other hand, rates on the US West Coast route fell 1% to $7,525 per FEU, and to the US East Coast by 1% to $10,405. Market sources attributed the decline on US routes to weak demand following the National Day holiday and reduced congestion at Asian ports.

Drewry stated that 44 out of 713 scheduled sailings on major East-West trade routes will be canceled between October 19 and November 22, representing a 6% cancellation rate, with 36% of these on the eastbound Transpacific route. The market is watching to see whether shipping lines will succeed in supporting rates through capacity management.

What Do These Terms Mean?

SCFI: A weekly index published by the Shanghai Shipping Exchange measuring container freight rates from Shanghai to major global ports.

TEU: A unit of measurement for container capacity equal to a standard 20-foot container.

FEU: A unit of measurement equal to a 40-foot container, commonly used in pricing US routes.