Shanghai Shipping Exchange on March 25, the latest Shanghai Export Container Freight Index (SCFI) was 4434.07 points

Container freight rates have fallen for 10 consecutive weeks, but the industry remains bullish on this year's market, with rates expected to pick up again from next month.

According to the latest data released by the Shanghai Shipping Exchange on March 25, the latest Shanghai Export Container Freight Index (SCFI) was 4434.07 points, down 106.24 points, or 2.3%, from the previous week, hitting a low since the end of August last year. Freight rates on all major routes fell by varying degrees.

Among them, the Far East to Europe line fell for the ninth consecutive time, with freight rates per TEU falling by US$204 to US$6,593, or 3%, continuing to hit a new low since mid-July last year, with a cumulative 15.8% drop in European line rates over the past two months.

Far East to Mediterranean rates fell by US$114 per TEU, or 1.6%, to US$6921. Far East to US West rates fell for the third week in a row, dropping US$63 per FEU to US$7,960 from the previous week, the first time since February 11 this year that rates fell below US$8,000.

Far East to US East rates also fell by US$130 to US$10,504 per FEU, a new low since the end of November last year. In addition, Far East to Singapore rates fell by US$37 per TEU, or 3.2%, to US$1098.

Despite the drop in freight rates, the shipping industry is generally optimistic about this year's market, believing that it will not be easy for freight rates this year, as port congestion in North America remains serious and port operations in Europe have been affected by the war, and the rate revisions are a response to changes during the low season. And even in the off-season, freight rates are still at a relatively high point in history.

It is expected that manufacturers' shipping demand will gradually turn stronger after entering the second quarter, and the closer to the traditional peak season in the third quarter, the hotter the market performance will be.

With global oil prices remaining high, international consolidators will be increasing their bunker surcharges from April onwards, and Asian consolidators will also be increasing their comprehensive surcharges to reflect rising oil prices and port congestion.

Experts say that the only way to reduce the cost increase caused by rising fuel prices is to slow down or to charge an emergency fuel surcharge, but slowing down means a reduction in effective capacity and, according to the logic of supply and demand in the market, freight rates are likely to continue to rise.

It is expected that the surcharge could increase freight rates by a further 50% compared to the previous increase.