What do you predict the global ocean freight rate will be in the fourth quarter of 2022?
The SCFI (Shanghai Containerized Freight Index) is now 59% lower than it was in January of this year when it reached an all-time high of 5,051 points.
The SCFI has lost another 10.4% in the last week to be recorded at 2072.04, some 240.61 points lower than the previous week. Container spot rates have fallen by 10% for the fourth week in a row, raising the prospect of a hard landing in the sector. And no cargo rush appearances in weeks 37-38, just seven days before the October 1 Golden Week national holidays.
According to Xeneta, the capacity of the trade between Asia and the West Coast of the United States is 13% lower than it was in the same period in 2021 – the equivalent of 21 ships of 8,000 teu – the average vessel size on the trade.
Shipping lines have responded by aggressively withdrawing capacity from major trades ahead of China's Golden Week, but rates have continued to fall.