The latest container freight rate data shows that Asia-Europe container freight rates continue to rise, and congestion in Asia is expected to bring further increases.
Drewry said freight rates from China are expected to continue to rise next week due to congestion issues at Asian ports. Disruptions have occurred at both ends of the Asia-Europe trade as rerouted ships have sailed longer, bringing in a large number of arrivals. Vessels are delayed as European ports struggle to handle the surge in throughput, and these delays have spread along the loop to ports such as Singapore.
This week, the Shanghai Containerized Freight Index (SCFI) rose by a smaller margin, up 2.85% to 3475.6 points, continuing its upward trend.
In November 2023, the Shanghai Composite Index barely broke 1000 points and did not break 2000 points until the beginning of this year. After a slight weakness in March and April, the index has risen steadily from around 1750 points in late April to its current high.
In the long term, the WCI is $3510 per feu so far in 2024, $768 higher than the 10-year average of $2742 per feu. The record-high incidence during the 2020-2022 COVID-19 pandemic itself inflated the decade average and masked the persistently low incidence rates before the pandemic.
