container ship

 

The Drewry World Container Price Index (WCI), which has seen double-digit weekly percentage increases recently, was up just 1% week-over-week on July 11 at $5,901 per FEU.

The Shanghai Container Freight Index (SCFI) fell 1% to 3674.86 points on July 12 from the July 5 level.

The question now is whether the price increase is simply on hold, or is this a sign that spot container freight rates are stabilizing.

Although spot container freight rates are at extremely high levels, they are still well below the peak levels seen during the pandemic. Drewry's WCI is about 43% lower than its peak of $10,377 per FEU in September 2021. Overall, analysts say rates are unlikely to reach their Covid-era peaks.

However, the signs this week were less positive as severe storms off the coast of South Africa forced container ships transiting the Cape of Good Hope to stop to avoid Houthi attacks in the Red Sea. The 18,000 TEU CMA CGM Benjamin Franklin lost 44 containers at sea on July 9 while off the coast of South Africa.

Regarding the upcoming forecast, Drewry commented: “Drewry expects freight rates to remain high until the end of the peak season.”

 

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Source: Phaata.com (via Seatrade-Martime) 

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