Total 461 Posts
The SCFI and CCFI have slipped by 70% and 50% respectively since their 2024 peaks, but Linerlytica’s Charter Rate Index (CRI) has continued to rise throughout this period. The CRI to CCFI ratio has reached a record high of 318%, but charter rates and second hand prices show no signs of weakening as carriers continue to chase after tonnage in an early warning that capacity management remains elusive. The mid-October rate hikes are unlikely to succeed given the lack of capacity cuts even as the m
Futures traders in China returned from the week-long holiday to a sell-off triggered by peace news from the Middle East. However, near-term contracts proved resilient, with EC2512 dipping below 1,600 at its intraday low before rebounding to close just 1.8% lower, while EC2510 held firm, supported by liner efforts to raise rates for shipments departing from 15 October. Maersk and ONE posted freight rates below the industry average target of $2,000 for the second half of October, signaling early
Carriers are swapping ships out from the US as the USTR 301 port service fees for vessels built in China are set to take effect from 14 October. MSC, CMA CGM, ONE and Zim are amongst the carriers making last minute changes to their fleet deployments, with the vast majority of the non-Chinese operators able to avoid the USTR fees, barring a few exceptions with only 4 non-exempt ships scheduled to arrive in the US in the October window (3 operated by Zim and 1 operated by Hapag-Lloyd). The 2 Chine
Shanghai and Ningbo recorded their highest ever monthly container throughput in August, as global container volumes have remained resilient despite the gloomy trade and economic outlook. Total volumes at the 2 largest Chinese ports exceeded 5m teu and 4m teu respectively in the past month and continue to defy the impact of the US tariffs, with significant growth recorded on the Intra-Asia, Indian subcontinent, Latin America and Africa routes. In the first 7 months of 2025, container volumes han
The freight futures in Shanghai experienced a wild ride over the past two trading sessions, with a spike at the open yesterday followed by a retreat over the past two days, apparently finding a short-term bottom this afternoon. The spike yesterday was driven primarily by short covering, as open interest has hardly changed. Then Maersk offered $1,400 per FEU for shipments departing on the first week of October, which gave short sellers added conviction. The short sellers returned today and added
Maersk’s offer of $1,550 per FEU after the market closed yesterday triggered a more meaningful decline for all freight futures contracts, with trading volume nearly double that of the previous day. Most contracts closed at their daily lows. The most notable development, however, was the increase in open interest, particularly for EC2510. Typically, traders begin to liquidate positions in a contract about two months before expiry and roll over their bets to the next expiring contracts. But this h
The container shipping industry has reached a pivotal point this year in the application of freight futures as a hedging tool. Major players are starting to act, rather than avoiding or merely considering the use of freight futures. The freight futures products are ready, and more options with potentially even better designs will be available soon. There are already two freight derivatives products in operation. One is the SCFIS (Europe) Futures Contract (EC) listed on the Shanghai Internationa
The trading volume is drying up, with open interest holding up only because of the hotly contested EC2510 contract. There is no sign yet of traders willing to roll over their EC2510 positions into longer-dated contracts. If the bears are correct, volumes will fall sharply once the October contracts expire, creating a difficult environment for the launch of two additional futures products—one on ICE based on the NYSHEX index and the other on Euronext based on the Xeneta index. For the first time
No one was willing to make a move today, as all eyes are on what Maersk will offer for late-September shipments. With no fresh news to set the tone, most contracts moved higher on traders’ concerns that the market may have already bottomed. Trading volume was light today but open interests edged up by 927 contracts. As of the time this note was published, Maersk’s new offer had still not surfaced. However, after market close, OOCL posted a rate of $1,650 per FEU—down another $200 per FEU, which
The containership charter market shows no signs of cooling down despite the weakness in the freight market, as charter rates retained their recent strength. Open units continue to be snapped up quickly including several sublet candidates. CMA CGM was the most active charterer in the past week, including a sublet of the 5,527 teu ESL OMAN for up to 3 months at $62,000 per day with delivery scheduled for 30 September. MSC continues to focus on second hand purchases with 2 more resale units joinin