SCFI jumps 11.3%

The Shanghai Containerized Freight Index increased 11.3 percent from last week to a reading of 884.95, thanks to sharp increases from Shanghai to Northwest Europe and the Mediterranean.    The Shanghai Containerized Freight Index rose 11.3 percent from last week’s reading of 795.16 to a reading of 884.95.
   Rates from Shanghai to Northwest Europe rose 25.9 percent, from $761 per TEU to $958 per TEU, while rates from Shanghai to the Mediterranean jumped 41.2 percent, from $558 per TEU to $788 per TEU.
   Meanwhile, rates from Shanghai to the U.S. West Coast rose 6.1 percent, from $1,917 per FEU to $2,034 per FEU, while rates from Shanghai to the U.S. East Coast increased 10.6 percent, from $2,565 per FEU to $2,836 per FEU.
   Looking at the current market, Patrik Berglund, chief executive officer of ocean freight rate benchmarking platform Xeneta, explained how a large volume of shippers seeking long-term contracts are reporting carriers are not prepared to negotiate near the bottom end of the current market, where many of the older, expiring long-term contracts sit.
   “This should wave a red warning flag to any shipper tendering/bidding for new long-term rates in January, the European norm, and next May, the U.S. standard,” Berglund said. “It makes it clear carriers have an expectation that the market will continue to pick up.”