Highlights

The latest Shanghai Containerized Freight Index (SCFI) figures show a marginal rise of 4.24 points, settling at 1345.17, indicating stability. Freight forwarders suggest that efforts to raise prices for US routes by mid-May seem unlikely at this time. European route rates dropped, while the Mediterranean route remained steady.

Sentiment Analysis

• The sentiment around the SCFI is generally neutral, with key indices showing slight movements.
• Market stabilization is apparent, yet the hints of potential future rate increases introduce an element of caution.
• The US shipping rates' resistance to decline is largely due to strategic Blank Sailings.

Article Text

The Shanghai Shipping Exchange recently released updated figures for the Shanghai Export Containerized Freight Index (SCFI), revealing that the index has experienced a minor increase of 4.24 points, reaching 1345.17. This increment, representing a 0.03% rise, indicates a narrowly steady market. Freight forwarders highlight that although prices for the US routes are holding steady, attempts by shipping companies to increase these costs by mid-May currently seem unlikely. The reasoning behind the steadfast US route prices is attributed to Blank Sailing strategies, which temporarily reduce capacity to stabilize rates.

From mid-May to the end of the month, shipping companies have considered price hikes; however, this appears challenging under current circumstances and a clearer picture might emerge next week. The European market has seen its rates fall by $39 per TEU (twenty-foot equivalent unit), or 3.25%, dropping to $1,161. Conversely, the Mediterranean route rates have remained unchanged at $2,089 per TEU, showcasing a variance in regional market dynamics.

The Far East to the East Coast of the US has witnessed a modest bounce back in prices, increasing by $52 per FEU (forty-foot equivalent unit) from last week to reach $3,335, marking a 1.58% rise. Meanwhile, the West Coast of the US saw a $75 rise per FEU, leading to a price of $2,347, up by 3.3%. This demonstrates a slight upward trend in these key shipping lanes.

Taiwan's logistics company, for instance, emphasizes that the global sea freight market in the second quarter continues to face challenges due to global overcapacity and the uncertainty posed by US import tariffs. As a result, the supply-demand structure is under pressure, though major shipping companies continue to adjust by controlling cabin space and reducing sailings, ensuring rate stability and a market characterized by "steady volume, balanced prices".

Key Insights Table