The Shanghai Containerized Freight Index (SCFI) dropped 14.3% in Week 38, sliding to 1,198.21 points, according to the Japan International Freight Forwarders Association (JIFFA). This marks the third consecutive weekly decline, as weak transport demand and vessel oversupply forced carriers to cut spot rates across key trade lanes ahead of China’s National Day holiday.
East–West and North–South Trade Routes Hit Hard
On east–west routes, freight rates saw steep declines. Shanghai–Europe rates fell 8.8% to US$1,052 per TEU, while Mediterranean rates dipped 5.8% to US$1,638 per TEU. The U.S. West Coast suffered the sharpest fall, down 22.7% to US$1,636 per FEU, and the U.S. East Coast slid 2.7% to US$2,559 per FEU.
Meanwhile, north–south routes also faced pressure. Middle East Gulf rates tumbled 22.3% to US$991 per TEU, Australia–New Zealand declined 7.9% to US$1,159 per TEU, and South America dropped 17.3% to US$2,497 per TEU. Southern Africa fell 4% to US$2,859 per TEU, while East and West Africa slipped 4.5% to US$3,853 per TEU.
Intra-Asia Trade More Stable
Unlike the sharp global declines, intra-Asia routes were relatively stable. Southeast Asia saw a slight increase of 0.5% to US$422 per TEU, while rates to South Korea (US$138 per TEU) and Japan (US$321 per TEU) remained flat. This stability reflects consistent short-haul demand within the region, even as long-haul trades continue to face mounting pressure.
The SCFI’s third straight weekly drop highlights the challenges facing global shipping markets, where oversupply and weak demand are driving rates downward. With steep declines across major east–west and north–south routes, carriers face growing revenue pressure despite stable intra-Asia trade. Unless demand picks up post-holiday, the industry risks further rate erosion in the weeks ahead.
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Source: CONTAINER NEWS
