Total 398 Posts
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
Asia-Europe rates are torn in 2 different directions, with the SCFIS declining by 1.4% on 26 May, while the forward looking SCFI recorded a strong gain of 14.1% on Friday. Carriers have stumbled on their bid to hike rates on 1 June, with Maersk once again undercutting their rivals even before the GRI was implemented. Rising congestion at European ports have severely disrupted schedules, with ships rerouting where possible to avoid berthing delays but this has failed to lift market momentum. Alt
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
Freight rates to North Europe remain under pressure, with the SCFI dropping by 3.3% last week while the SCFIS fell by 5.5%. Rates have remained under pressure since the US tariffs forced carriers to redeploy transpacific capacity to the European route since April but this is set to reverse in the next 3 months as US demand rebounds. Spot rates have dropped to a low as $1,600/FEU with carriers still under-cutting each other through the end of May. However, the situation is expected to reverse so
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
The de-escalation in the Sino-US trade war came earlier than expected after the 2 countries agreed to lower reciprocal tariffs to 30% for Chinese exports to the US for 90 days from 14 May 2025 while tariffs on US exports to China is lowered to 10%, setting the stage for a surge in Transpacific cargo volumes in the next 3 months. The 115% cut in US tariffs on China was larger than expected amidst signs of severe strain on US import volumes that would have hit store shelves in the coming weeks. T
Ocean freight traffic slowed over the past week across Asia due to the Labour Day holidays but average freight rates largely held their ground despite the continuing market turmoil triggered by the US tariffs. Transpacific rates bucked the downward pressure as carriers moved swiftly to remove excess capacity that allowed them to secure rate hikes in both the spot and contract markets, although the rate strength is due more to an anticipated cargo surge if a Sino-US trade deal could be reached.
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
SCFI rates to North Europe dropped by 4.8% last week reflecting carriers rate actions over the last 2 weeks as market rates dropped to $1,600-$1,800/feu. The additional capacity shifted from the US routes has not helped the market, with volumes negatively affected by the Labour Day holidays in most parts of Asia. Port congestion across North Europe remains critical especially in Antwerp where a nationwide strike has halted port operations last week, with delays also impacting ports downstream.