The latest Shanghai Containerized Freight Index released by the Shanghai Shipping Exchange shows that shipping rates from China to the US West Coast and US East Coast have plummeted by 63% and 41% respectively compared to last month.
According to Caixin, the Shanghai Shipping Exchange on Friday (July 4) released the latest Shanghai Containerized Freight Index, showing shipping rates from China to the West Coast and East Coast of the US at $2,089 (USD, equivalent to SGD 2,661.89) per FEU and $4,124 per FEU, respectively. Compared with the freight peaks on June 6 of $5,606 per FEU for the US West Coast and $6,939 per FEU for the US East Coast, these represent plunges of 63% and 41% respectively.
FEU (Forty-foot Equivalent Unit) is the international measurement unit for containers, based on a length of 40 feet.
Ming Pao quoted unnamed logistics industry insiders saying that in recent months, China-US shipping prices could be described as "dramatic rises and falls."
This logistics industry insider said that the China-US tariff war was put on hold for 90 days starting May 14, resulting in a surge of Chinese shipments to the US. Ships could not be redeployed in time, and with demand outstripping supply, China-US freight rates continued to rise. However, starting from the second week of last month, freight rates have been declining steadily and now have dropped below pre-ceasefire levels. The main reason is that vessel capacity has returned to normal, while export volumes have instead fallen—"there is nothing to ship."
He also described the current situation as chaotic. Initial analysis suggests that the large shipments in May have left US inventories very high, and, with the 90-day suspension of reciprocal tariffs imposed by the US on various countries set to expire on July 9, all parties in trade are now adopting a wait-and-see attitude.
According to Caixin, the Shanghai Shipping Exchange on Friday (July 4) released the latest Shanghai Containerized Freight Index, showing shipping rates from China to the West Coast and East Coast of the US at $2,089 (USD, equivalent to SGD 2,661.89) per FEU and $4,124 per FEU, respectively. Compared with the freight peaks on June 6 of $5,606 per FEU for the US West Coast and $6,939 per FEU for the US East Coast, these represent plunges of 63% and 41% respectively.
FEU (Forty-foot Equivalent Unit) is the international measurement unit for containers, based on a length of 40 feet.
Ming Pao quoted unnamed logistics industry insiders saying that in recent months, China-US shipping prices could be described as "dramatic rises and falls."
This logistics industry insider said that the China-US tariff war was put on hold for 90 days starting May 14, resulting in a surge of Chinese shipments to the US. Ships could not be redeployed in time, and with demand outstripping supply, China-US freight rates continued to rise. However, starting from the second week of last month, freight rates have been declining steadily and now have dropped below pre-ceasefire levels. The main reason is that vessel capacity has returned to normal, while export volumes have instead fallen—"there is nothing to ship."
He also described the current situation as chaotic. Initial analysis suggests that the large shipments in May have left US inventories very high, and, with the 90-day suspension of reciprocal tariffs imposed by the US on various countries set to expire on July 9, all parties in trade are now adopting a wait-and-see attitude.