The pre-Chinese New Year shipment rush is winding down, with the Shanghai Containerized Freight Index (SCFI) declining for the fourth consecutive week and the pace of decline accelerating further. According to the latest data released by the Shanghai Shipping Exchange on January 30, the SCFI index dropped by 141.11 points last week to 1,316.75 points, representing a weekly decline of 9.67%. All four major long-haul shipping routes recorded declines, with each falling by more than 10%.
On the Far East to West Coast North America route, freight rates per FEU fell by $217 to $1,867, a weekly decline of 10.41%. On the Far East to East Coast North America route, rates per FEU dropped by $291 to $2,605, a weekly decrease of 10.04%. On the Far East to Europe route, rates per TEU decreased by $177 to $1,418, a weekly decline of 11.09%. On the Far East to Mediterranean route, rates per TEU fell by $332 to $2,424, a weekly drop of 12.05%.
On the regional routes, freight rates per TEU from the Far East to Kansai, Japan, remained unchanged from the previous week at $312, while rates to Kanto, Japan, also held steady at $321. Rates to Southeast Asia fell by $13 to $483 per TEU, and rates to South Korea remained unchanged at $144.
Industry insiders note that the current spot market freight rates for container shipping companies are approximately $1,650 to $1,750 per FEU for the West Coast North America route, $2,350 to $2,500 for the East Coast North America route, and $2,000 to $2,200 for the Europe route. Several shipping companies have announced that the current rates will remain in effect until the end of February, indicating that rate adjustments may not occur until early March.
Shipping companies explain that the extended Chinese New Year holidays in Asian countries such as China, Vietnam, and South Korea in February, coupled with the start of Ramadan in Islamic countries, prompted shippers to begin moving goods as early as December last year. As a result, shipment volumes are expected to remain low until the Lunar New Year.
Multiple freight forwarding companies point out that the short-term market is experiencing an oversupply of shipping capacity, putting significant pressure on freight rates, which are expected to remain weak and volatile. The future trajectory will depend on shipping companies’ capacity management after the holiday season and the recovery of market demand. While Southeast Asian countries, with shorter holidays, are likely to resume production and shipments sooner, whether freight rates will bottom out and rebound remains uncertain, with clarity potentially emerging only in early to mid-March.