AMZ123 learned that the latest SCFI index released by the Shanghai Shipping Exchange stood at 3184.83 points, down 4.3% from the previous period, ending a ten-week consecutive rise. With weakening rush orders driven by tariff concerns and the introduction of new capacity into the market, freight rates on the four major routes all declined. Specifically, the rate from Shanghai to US West Coast base ports was $6,219/FEU, a 6.2% drop; to US East Coast was $8,134/FEU, down 2%; to Europe was $3,332/TEU, a 2.5% decrease; and to the Mediterranean was $4,561/TEU, down 3.3%.

Industry sources indicated that shipping companies have relaxed space restrictions for some long-term contract customers, adjusting the allocation rule from "three spot, one long-term" to "two spot, one long-term", increasing booking flexibility. Analysts believe that in July some European importers are entering the summer break, coupled with the gradual fulfillment of earlier advance shipments, leading to insufficient new cargo volume and weaker rate support.

On other routes, the Persian Gulf route fell 4.4% to $4,199/TEU; the Australia/New Zealand route edged down 0.6% to $2,266/TEU; and the South America route's decline widened to 9.1%, at $6,570/TEU. Among intra-Asia routes, the Southeast Asia route fell to $654/TEU, down $14; the Korea route also dropped $14 to $149/TEU; and Japan Kansai and Kanto routes remained stable. Freight forwarders and shippers should continue to monitor rate trends and schedule changes to plan shipments reasonably.

Seller Home Commentary

The end of the SCFI's ten-week winning streak and the over 6% drop in USWC rates signal a temporary peak in shipping costs. Cross-border sellers should seize this window to accelerate shipments and optimize supply chain layout to cope with potential high rate volatility.

Source: AMZ123
Original link: https://www.amz123.com/kx/jhxYiHSE