SCFI inches up 3.4%

The Shanghai Containerized Freight Index increased 3.4 percent since last Friday to a reading of 824.39, largely driven by significantly higher rates from Shanghai to the United States.    The Shanghai Shipping Exchange’s Shanghai Containerized Freight Index (SCFI) ticked up 3.4 percent from last week’s reading of 797.62 to a reading of 824.39, largely driven by significantly higher rates on the Shanghai to U.S. trades.
   From Shanghai to Northwest Europe, rates slipped 3.8 percent since last week, from $1,046 per TEU to $1,006 per TEU, while rates from Shanghai to the Mediterranean inched up 0.3 percent, from $944 per TEU to $947 per TEU.
   Meanwhile, rates from Shanghai to the U.S. West Coast surged 16.4 percent since last week, from $1,382 per FEU to $1,608 per FEU, while rates from Shanghai to the U.S. East Coast rose 12.3 percent, from $2,340 per FEU to $2,627 per FEU.
   Since late 2015, the industry has experienced very low freight rates, and the “sustainability and magnitude of recent rate increases remain uncertain,” Moody’s Investors Service said.
   Looking ahead into 2017, the credit rating agency projects container shipping companies will continue to face oversupply, and profitability could be put under even more pressure if bunker fuel prices rise.
   Although the container shipping industry continues to consolidate, which could reduce price competition over time, Moody’s said that a lasting improvement in rates is not likely in 2017.