According to the Shipping Industry News, container prices continued to rise throughout the third quarter with no sign of easing.
As port congestion continues to devour capacity, ship space remains tight. Carriers are pushing for higher prices as demand remains strong.
Due to no signs of slowing down in demand during the early stages of the peak season, container spot prices continue to rise ruthlessly.
The latest data from the Shanghai Containerised Freight Index (SCFI) shows that the total freight rate index has risen again by 6.9%, with a rise of about 10% on major east-west initial routes.
Drewry's World Container Index (WCI) also increased by 4% to reach $5,318/FEU this week. The company noted that 'freight rates from Shanghai to Rotterdam rose 7% or $455 to $7,322/FEU.'
Similarly, freight rates from Shanghai to Los Angeles and New York also rose by 4% to $6,673/FEU and $7,827/FEU, respectively.
Since the beginning of April, the SCFI has risen by more than double, and there is no sign of a slowdown in the market since entering the second half of the year.
Carriers have indicated that shippers may face more pain, with additional peak season surcharges set to reach as high as $5,000/FEU, and announced a comprehensive rate increase in early June.
Linerlytica analysts said, 'The container market is still hot, with spot prices rising above $8,000/FEU, a new high since the end of 2022.'
Due to the ongoing crisis in the Red Sea, global shipping prices have skyrocketed, having a significant impact on the futures market. On July 4th, the main contract of the Shanghai Futures Exchange's shipping index futures surged by more than 3%, reaching a new high since listing and a cumulative increase of 343.79% this year. The underlying asset of the futures contract is the Shanghai export container settlement freight index, which has risen for 10 consecutive weeks from April 22nd to July 1st, with an increase of 151%.
Zhou Dequan, director of the Shipping Development Research Institute of the Shanghai International Shipping Research Center, stated that in the current situation where demand in the international container shipping market has recovered and effective supply of shipping capacity is tight, the situation of rising prices may continue in the short term.
Related companies in the container industry chain: COSCO Shipping Holdings (601919.SH, 01919), Orient Overseas International (00316), SITC (01308); COSCO Shipping Development (02866), China International Marine Containers (02039) and others.
Companies such as OOIL (00316), Pacific Basin (02343), COSCO Shipping Holdings (01919), COSCO Ship Engy (01138), China International Marine Containers (02039), and COSCO Shipping Development (02866).