Ocean Freight Rates Fall for 7 Consecutive Weeks... "Concerns Over Economic Recession"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] The global container shipping movement has declined for seven consecutive weeks.

According to the shipping industry on the 31st, the Shanghai Containerized Freight Index (SCFI), a shipping freight rate indicator, recorded 3,887.85 on the 29th, down 108.92 points from the previous week.

The SCFI surpassed the 5,100 mark for the first time in history last January. Since then, it has declined for 17 consecutive weeks. On May 20, it rebounded by reducing the decline. As a result, it rose for four consecutive weeks until June 10. However, it failed to maintain the rebound trend and fell again for seven consecutive weeks, marking the lowest level in one year and one month since June 25 of last year.

Specifically, the freight rate for the US West Coast route fell by $28 to $6,694 per 1FEU (12-meter container). The US East Coast route dropped by $93 to $9,348.

Including the South America route, seven routes declined. For the Europe route, the rate fell by $154 to $5,416 per 1TEU (6-meter container) compared to the previous week. The Mediterranean route recorded $5,971, down $230. Additionally, the Middle East route dropped by $182 to $2,789, and the Australia-New Zealand route also fell by $146 to $2,997. The South America route decreased by $44 to $9,439.

Amid growing concerns about an economic recession, the decline in maritime cargo volume has led to a downward trend in shipping freight rates. Industry insiders explain that this reflects the characteristics of the shipping industry as a leading sector of the economy.

The average SCFI this year is 4,427.90, which is 16.8% higher than last year's annual average of 3,791.77.

This content was produced with the assistance of AI translation services.