Freight rates for exporting containerized shipments from China rose on many trade routes in the first week of January 2020, as transport demand fluctuated at high levels due to cargo shipped in huge volumes prior to Lunar New Year. The Shanghai Containerized Freight Index (SCFI) hiked 6.7% from the previous week to 1,022.72 points, according to an announcement made on Jan. 3 by the Shanghai Shipping Exchange (SSE).
Container movement increased on the route to Europe resulting from notable growth in shipment before Lunar New Year. Spot rates from Shanghai (excluding terminal handling charges) rose 9.4% to $1,124 per TEU, while those to the Mediterranean climbed 1.1% to $1,185 per TEU.
On the North America route, the supply and demand balance improved thanks the first-phase agreement of the trade negotiations reached between the U.S. and China, and actions by shipping companies to control tonnage supply. Freight rates to the east coast went up 9.6% to $2,808 per FEU, and those to the west coast, up 14.1% to $1,636 per FEU.
Freight rates to the Middle East Gulf stood at $1,218 per TEU, up 3.9% and those to Australia and New Zealand, $949 per TEU, up 2.2%. In contrast, those to South America fell 2.4% to $2,183 per TEU.
Freight movement to Japan was stable, making freight rates stable, too. Those to Kansai remained nearly unchanged at $226 per TEU, while those to Kanto grew 0.8% to $242 per TEU.
