Container shipping rates continued to fall in October due to declining demand. The Shanghai (Export) Containerized Freight Index (SCFI) has fallen for 17 consecutive weeks. Shipping companies have started to discontinue services or cancel voyages.
Athough container shipping prices dropped overall since the beginning of 2022, they began a continuous slide in July, and the decline accelerated into September. On Sept. 23, the SCFI, released by the Shanghai Shipping Exchange, fell to 2,072.04 points, down 10.4 percent week-on-week and about 60 percent from early 2022.
The trend continued into October. On Oct. 14, the SCFI dropped to 1,814 points, down over 70 percent from early 2022.
The rate of decline varied depending on the route. The 40-foot container rate from Shanghai to the west coast of North America dropped the most, from a high of $8,117 in February to $2,097, a drop of nearly 80 percent. The standard box price rate from Shanghai to Europe dropped from a high of $7,797 in January to $2,581, a drop of nearly 70 percent….