ShippingWatch

SCFI index falls a further 10%

The Shanghai index, measuring spot rates on container freight from the Chinese city to many global destinations, fell by 10% this week to 2,562.12, thus showing 13 weeks of consecutive decline.

Photo: PR / Hapag-Lloyd

Container cargo rates continued to slide this week by as much as 10% for spot prices featuring on the Shanghai Containerized Freight Index (SCFI).

The index is thereby down by 43.9% against the same period last year.

Throughout this last year, freight rates have been driven dramatically upward by massive demand following the the Covid-19 lockdowns as well as supply-side problems of varying nature, and this development also continued into the first week of January, when the SCFI set a record at 5,109.6.

Since then, however, the index has lost a lot of ground with single spikes underway, with the most recent gage showing the lowest level since April last year.

A great deal of Maersk’s box shipping is now locked into long-term contracts with high rates, and even though spot prices as of late are decreasing so much, the company doesn’t foresee customers with long-duration agreements seeking to renegotiate deals ahead of schedule, said Maersk Chief Executive Søren Skov at a press conference on this year’s second-quarter report.

Last week, too, rates took a steep dive with spot prices down by 8%, prompting Senior Analyst Mikkel Emil Jensen from Denmark’s Sydbank to call this shift the first sign of normalization long predicted coming by liner companies.

English Edit: Daniel Frank Christensen

DSV, Maersk top Nordic ESG list - Hafnia, Norden drag down average

McKinsey: Earnings of logistics companies to fall

Pressure on global supply chains continued to ease in August

More from ShippingWatch

Price of Maersk's new methanol ships drops

Maersk has just ordered six new methanol-powered container ships and now reveals that the added cost of building green ships compared to conventional ones is decreasing. Economies of scale, says equity analyst.

Esvagt pursues Taiwanese offshore wind

The Danish offshore service operator has located a possible partner on the island as a part of high hopes for the local offshore wind market. If successful, Esvagt could be ready to service wind at sea in the far east in a few years.

Further reading

Related articles

Latest news

See all jobs