Ten consecutive declines in freight rates? Freight rates may rise again, and shipping companies will impose fuel surcharges one after another from April!

The container freight rate has been falling for 10 consecutive weeks, but the industry is still optimistic about the market this year, and it is expected that the freight rate will start to rise again next month.

According to the latest data released by the Shanghai Stock Exchange on March 25, the latest issue of the Shanghai Export Containerized Freight Index (SCFI) was 4434.07 points, down 106.24 points or 2.3% from the previous week, hitting the lowest point since the end of August last year. The freight rates of major routes all fell to varying degrees.
Among them, the Far East to Europe line fell for nine consecutive years, and the freight rate per TEU fell by US$204 to US$6,593, a decrease of 3%, which continued to hit a new low since mid-July last year, and the freight rate of the European line fell by 15.8% in the past two months. Far East to Mediterranean per TEU fell $114, or 1.6%, to $6,921.

The freight rate from the Far East to the West of the United States fell for three consecutive weeks. The freight rate per FEU fell by US$63 to US$7,960 compared with the previous week. It was the first time since February 11 this year that it fell below US$8,000. The freight rate from the Far East to the United States continued to fall by US$130 to US$10,504/FEU, hitting a new low since the end of November last year. In addition, the freight rate per TEU from the Far East to Singapore fell by $37, or 3.2%, to $1,098.

Although the freight rate has fallen continuously, the container shipping industry is generally optimistic about the market this year, and believes that this year’s freight rate is not easy, because the port congestion in North America is still serious, and the port operations in Europe are also affected by the war. The freight rate revision reflects the off-season of the market. period changes. Moreover, even in the off-season, freight rates are still relatively high in history. It is expected that after entering the second quarter, the demand for manufacturers’ shipments will gradually strengthen, and the closer to the third quarter, the traditional peak season market performance will be more fiery.
As global oil prices remain high, international shipping companies will gradually impose fuel surcharges from April, and Asian shipping companies will also increase comprehensive surcharges to reflect factors such as rising oil prices and port congestion.

Experts pointed out that if you want to reduce the cost increase caused by rising fuel prices, you can only choose to slow down the sailing or charge an emergency fuel surcharge, but slowing down the sailing speed means that the effective capacity will decrease. According to the logic of market supply and demand, the freight rate may continue to rise. . It is expected that after the surcharge is added, the freight rate may increase by another 50% than before.