Freight from China to Europe almost doubled in a month: rates rise for the fifth week in a row

Last week alone, shipping costs on the Shanghai-Rotterdam route increased by 25%, and the SCFI index reached its highest level in almost two years.

This was reported by the logistics company Lukro.

According to the company, the Shanghai Containerized Freight Index (SCFI) has been growing for the fifth consecutive week and is currently about 70% above the February low.

One of the main reasons was the sharp increase in demand for transportation between China and the United States. In just one week, rates on the Shanghai-Los Angeles route jumped by 31%, as a result of which shipping lines began to transfer ships to more profitable trans-Pacific routes.

Lukro notes that each ship transferred to the Asia-North America direction reduces the available capacity on the Asia-Europe route. This creates additional pressure on rates for European importers.

The market is also affected by congestion in European ports, in particular in Rotterdam, Antwerp and Hamburg, as well as the consequences of logistical disruptions due to the crisis in the Red Sea and the Strait of Hormuz.

The company concludes that the current increase in transportation costs is the result of a simultaneous increase in demand and a reduction in available fleet capacity, which led to a sharp jump in freight rates.

USM previously reported that freight rates for bulk carriers from Ukraine remain consistently high.