Strong Rebound in Freight Rates! Multiple Routes See Collective Price Increase, Global Shipping Market Recovery

Recently, the Shanghai Shipping Exchange released its latest SCFI freight index, which surged to 1310.32 points, an increase of 12.9% from the previous period. Freight rates across four major routes have all seen a rebound, signaling the recovery of the global shipping market. The specific price increases are as follows:

West Coast of the U.S.: Freight rates increased by 31.9%

East Coast of the U.S.: Freight rates increased by 16.4%

Europe Route: Freight rates increased by 7.2%

Mediterranean Route: Freight rates increased by 3.5%

Trends Behind the Data:

According to data from the General Administration of Customs, China's exports to the EU in September increased by 14.2% year-on-year, the largest growth in three years. For the first three quarters, China's exports to the EU increased by 8.2%, demonstrating strong demand in the European market.

Additionally, on October 17th, Shanghai Port's export freight rate to Europe was $1,145/TEU, up 7.2% from the previous period. The freight rate to the Mediterranean was $1,613/TEU, up 3.5%.

Industry Impact Analysis:

Price Fluctuations on U.S. Routes: Starting October 14th, the U.S. officially implemented Section 301 investigations and restrictions on Chinese shipbuilding and other industries, affecting the stability of global supply chains. This has increased uncertainty in Sino-U.S. trade and may trigger a "rush to export" effect. As demand rises, freight rates for the West Coast and East Coast of the U.S. have surged. On October 17th, Shanghai to the U.S. West Coast and East Coast rates were $1,936/FEU and $2,853/FEU, respectively, increasing by 31.9% and 16.4% from the previous week.

Holiday Stocking Demand Drives Freight Rates: With China's National Day holiday over, the market is entering the peak period for holiday stocking ahead of Christmas and New Year. This has led to increased demand for Pacific routes, driving a rebound in spot market freight rates.

Price Increases on the Persian Gulf, Australia/New Zealand, and South America Routes: Freight rates for the Persian Gulf route continued to rise, reaching $1,248/TEU on October 17th, up 28.0% from the previous period. The Australia/New Zealand route also performed well, with rates at $1,311/TEU, up 13.1%. The South America route remained stable, with rates at $2,658/TEU, an 8.7% increase.

Slight Decline in Japan Route Freight Rates: While most routes saw price increases, freight rates from Shanghai to Japan saw a slight decline, with the index on October 17th at 946.31 points.

Conclusion:

The global shipping market is currently experiencing a strong rebound, particularly on U.S. and European routes. The Persian Gulf, Australia/New Zealand, and South America routes have also seen significant price increases, indicating a recovery in global demand. However, with the implementation of U.S. Section 301 investigations on Chinese shipbuilding and other industries, freight rate fluctuations on Sino-U.S. routes will likely continue.

Stay updated on freight rate trends and adjust shipping plans flexibly to ensure smooth transportation of goods!

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