The latest issue of the Shanghai Export Container Freight Index (SCFI) fell by 12.54 points to 1031 points, with a weekly decline of 1.2%. The SCFI container freight index has stopped rising for three consecutive weeks and turned down; Among them, the North American route is still the strongest among the four major routes, with freight rates from the Far East to the East continuing to rise, while the rest have declined. The rise in the US East is mainly due to the drought and ship blockage effect of the Panama Canal.

In the absence of a significant rebound in demand and a record increase in new capacity, shipping companies rely on controlling cabins while shouting for price increases, hoping to stabilize the spot market freight rates. This may be a short-term phenomenon that is difficult to achieve in the long run.

Logistics industry insiders believe that this year's container liner peak season is still not strong enough, so the power of freight rate increases will also be hindered. The North American market has stronger demand than the European market, with the basic North American Far East West region maintaining at $2000/FEU, and the Far East East East region maintaining at $3000/FEU. The peak season performance of the European market this year has disappointed container liner operators, as the increase in cargo volume has been too slow. The cargo volume in August was better than in July, but compared to the past peak season, it is still not strong enough. The freight rate from the Far East to Europe per TEU (20 foot container) reached $852, a decrease of $74 or 7.99% compared to the previous week; The freight rate from the Far East to the Mediterranean per TEU (20 foot container) reached $1500, a decrease of $7 or 0.46% compared to the previous week. European freight rates have fallen for three consecutive weeks, with spot market rates around $1400 per 40 foot container, leading to reports of many ship operations turning losses.

Freight forwarder practitioners point out that due to the sluggish European economy and sluggish cargo volume, most shipping companies operate on 20000 TEU large ships, making it difficult to control the cargo hold. Currently, it can be seen that some shipping companies have replaced large ships with small and medium-sized ships for operation. Although the supply of transportation capacity is reduced, the unit operating cost has increased, resulting in a dilemma. The performance of the North American line is relatively strong, and freight rates are also relatively stable. Each FEU (40 foot container) from the Far East to the West of the United States reached $2003, a decrease of $14 or 0.69% compared to the previous week; Each FEU (40 foot container) from the Far East to the US East reached $3110, an increase of $39 or 1.26% compared to the previous week. The US route once again raised prices in mid August, and customers with large cargo volumes had room for negotiation. However, the correction began only a week later, and the defense line of returning to the shipping company's target price of $2000 for the US West and $3000 for the US East. Can we hold on? Next week will be the key. In terms of offshore routes, each TEU (20 foot container) from the Far East to Kansai, Japan decreased by $6 compared to the previous week; Each TEU (20 foot container) from Far East to Kanto, Japan decreased by $14 compared to the previous week; From the Far East to Southeast Asia, each TEU increased by $4 or 2.85% compared to the previous week; Each TEU from the Far East to South Korea remained unchanged compared to the previous week.

Furthermore, it is worth noting that if compared to July 14th, the SCFI index has increased by 5.29% on a monthly basis, maintaining a stable thousand point level for four consecutive weeks. The freight rates of the four major ocean routes in Europe and America have also shown monthly increases, with the US West, US East, and European routes increasing by 13% to 16% each month. The freight rates of the US route are still above the profit level, indicating the ability and determination of shipping companies to regulate transportation capacity.

According to Alphaliner's supply and demand growth forecast for the shipping market, supply growth of 8.5% this year is higher than demand growth of 1.4%, and there is still an oversupply situation. In addition, high inflation has reduced household purchasing power, and the industrial chain is still destocking, resulting in weak demand, which will make freight rates easy to fall but difficult to rise; Unless the Russia-Ukraine conflict ends, the demand for reconstruction materials is expected to increase the demand for container shipping.