MSC withdraws 6 voyages in a row! SCFI ends 10-week decline, US line surges in a single week

Drewry data shows that the cancellation rate for eastbound trans-Pacific routes may reach 47% in the next five weeks, and the cancellation rate for westbound trans-Atlantic routes may reach 28%, indicating that leading companies are accelerating the reduction of capacity to cope with weak demand.

The Shanghai Containerized Freight Index (SCFI) rebounded strongly after falling for ten consecutive weeks, rising by 4.96% last week. The performance of major routes was differentiated:

The freight rate per FEU from Far East to West Coast of the United States increased by USD 305 to USD 2,177, a weekly increase of 16.29%;

The freight rate per FEU from the Far East to the US East rose by US$328 to US$3,194, a weekly increase of 11.44%;

The freight rate per TEU from the Far East to Europe increased by US$12 to US$1,318, a weekly increase of 0.92%;

The freight rate per TEU from the Far East to the Mediterranean fell by US$119 to US$2,076, a weekly drop of 5.42%.

Long-term price execution: The long-term price of the US line has increased by 15%-20% compared with last year. The long-term price of the US West Line has reached 1,600-1,800 US dollars/FEU, and the US East Line has increased by about 1,000 US dollars;

Shippers rush to ship: The Red Sea crisis continues to squeeze shipping capacity, and shippers accelerate delivery of goods;

Shipping companies’ price increase strategy: In April, they plan to add a general rate surcharge (GRI) of USD 800-1,000/FEU, but the actual increase may be limited by competitive pressure.

The weekly increase on the US route hit a new high this year, and the short-term freight rate rebound reflected the intensification of market competition.

However, the continued expansion of fleet capacity and the uncertainty of the Red Sea situation may weaken the sustainability of the freight rate rebound.