The freight futures market in Shanghai remained range-bound today, as participants await Maersk’s quotation for the third week of June, despite CMA CGM and MSC pushing for rates of $3,900–4,000 per FEU from the second half of June.
The EC2506 contract, which will be settled based on the average SCFIS published on the last three Mondays of June, currently trades at a 46% premium to the SCFIS, which remained in a narrow band of 1,247-1,265 index point in the last 3 weeks. Even if SCFIS matches the SCFI’s 38% gain last week, rates need to rise further to match current forward prices. Maersk’s extended their low Freight All Kinds (FAK) quotation for the second week of June at just $2,100 per FEU mid-week before raising them ab
Shanghai’s freight futures market drifted aimlessly on Friday, with traders caught between hopes for a rebound in shipping rates and a conspicuous lack of resolve among major liners. The indecision was plain to see. The Tianjin Shipping Index for Europe, a daily benchmark, fell 2.6% to $1,492 for a 20-foot container and $2,404 for a 40-foot box. With Chinese markets set to close on Monday for a public holiday, traders pared positions, sending open interest down 8% to fewer than 87,000 lots—the
EC2508 surged during the afternoon session on rumors of another round of General Freight Rate increases for the second half of June, expected to be announced imminently. Maersk’s quotation for a June 12 shipment also rose, with some moves up to $2,319, which may have provided additional support to the market. Open interest in EC2508 increased by 2,813 lots.
EC2508, Shanghai’s benchmark freight futures contract, slid further in the afternoon session, closing at 1,949.5—dashing hopes that the market had found a floor at yesterday’s low - 1,987. The culprit, once again, was Maersk, which opened its FAK (Freight All Kinds) quotation for the second week of June at $2,100 per FEU. Yet, almost as soon as shippers began booking at that rate, the offer was abruptly raised to $2,231, rendering the initial price little more than a lure. With the Shanghai Con
Freight futures on the Shanghai–North Europe corridor continued their slide, with the benchmark EC2508 contract tumbling 13% week on week. Traders spent much of the period rolling short positions from the soon to expire EC2506 contracts into later maturities, wagering that any near-term firmness arising from the spill over from the Transpacific route would prove transitory as Far East to North Europe now commands the lowest rates among major routes. Average daily volume dropped 38% while open in
The freight futures contracts dropped this morning on profit taking with longer dated contract being weaker. Trading remain active as 105,043 contracts traded before the intermission for the morning session. Open interests remain at over 120,000 contracts. Liner's FAK quotations for Shanghai-WCNA mostly remain unchanged except for Maersk that again adjusted its quotations for May shipment upward, this time by $250/FEU to $3600 for 26 May departure. Last week's SCFI for USWC was $2347 per FEU. F
The main contracts, EC2506 and EC2508, nearly hit their limit up before moving sideways for the rest of the day. In contrast, the longer-dated contracts faced selling pressure, as traders used them to express skepticism about the sustainability of the current rally. The doubts center on whether Chinese factories are already operating at full capacity, potentially limiting their ability to increase output for US demand despite the 90-day window. Tianjin Shipping Index reported a slight drop in T
Shanghai–North Europe freight futures surged on 12 May with all contracts hitting their daily upper limit after the Sino-US trade deal was announced. Trading was brisk as volumes reached 158,000 contracts, almost double the average of the previous four days as both short covering and fresh buying lifted open interest to 104,000 contracts, up 19% from a week ago. The SCFIS fell a further 5.5% after market closed on 12 May, marking its 4th consecutive weekly drop but the forward curve is now pric
Shanghai–North Europe freight futures declined further in a shortened trading week due to the May Day holidays from 1 to 5 May. Open interest dropped by 8% week on week as traders liquidated their positions ahead of the holidays with the market outlook remaining negative. The value of the open EC contracts dropped to $829m as it closes in on the 18-month lows. Carriers continue to slash freight rates with capacity utilisation on the Far East–North Europe route remaining subdued as blank sailing