According to the shipping industry on April 10, the Shanghai Containerized Freight Index (SCFI), which represents freight rate levels on global maritime transport routes, recorded 1890.77 this week, an increase of 35.81 from the previous week (1854.96). This marks the seventh consecutive week of increases for the SCFI since the second week of February (1251.46).

The driving force behind the index’s rise is the Middle East route. This week, the rate for the Middle East route reached $4,167 per TEU (one 20-foot container), an increase of $190 from the previous week ($3,977). This is the aftermath of the associated risks following the blockade of the Strait of Hormuz after the war began on Feb. 28, which is directly reflected in freight rates.

It is the first time Middle East freight rates have surpassed $4,000 since the SCFI began to be compiled in earnest in October of 2009. The previous record high was $3,960 which was set in the second week of September 2021, during the supply chain bottle necks caused by COVID-19. Middle East rates have increased sharply for seven consecutive weeks since the second week of February ($980).

Routes to the Americas and Australia/New Zealand also saw increases. The rate for the U.S. East Coast route rose by $164 to $3,518 per FEU (one 40-foot container), while the U.S. West Coast route increased by $193 to $2,552. The Australia/New Zealand route was up $55 to $849 per TEU.

In contrast, routes to Europe, the Mediterranean, and South America declined. The Europe route fell by $103 to $1,547 per TEU, and the Mediterranean route was recorded at $2,590, a decrease of $94. The South America route dropped by $108 to $2,501.

Source: BusinessKorea