Spot freight rates on the Asia-Europe route rise due to Cape of Good Hope usage, extended transit times, and increased Q3 cargo volumes.
Spot Freight Rates on the Asia-Europe Route are Rising
SHANGHAI — Freight rates in the global container shipping market continue to maintain their upward momentum. The mandatory use of the Cape of Good Hope route, extended transit times, and the seasonal increase in cargo volumes for the third quarter are directly impacting spot rates on the Asia-Europe route.
The Shanghai Containerized Freight Index (SCFI), announced by the Shanghai Shipping Exchange, is hovering above the 3,200-point barrier. Spot freight rates for 40-foot containers (FEU) from Asia to Northern European ports are trading in the range of 3,500 to 4,500 US dollars. Annual contract freight rates, on the other hand, continue to remain at more reasonable levels compared to the spot market.
Record Order Book in the Shipbuilding Sector
SEOUL — In parallel with the activity in the freight market, new ship investments by shipowners have led to record capacity utilization in East Asian shipyards. According to Clarksons Research data, the global new ship order book has reached a historic peak of 206.5 million Compensated Gross Tonnage (CGT).
Chinese shipyards have taken on 72% of the global orders placed in the first half of the year, increasing their market share in the total order book to 65%. It has been noted that major container operators are shifting their newbuilding orders to China.
Delivery Slots Closed Until 2028
South Korean shipyards continue to maintain their leadership in the high-value-added LNG carrier market. Manufacturers such as HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries hold approximately two-thirds of the global LNG ship orders.
The delivery dates for the shipyards in the region have been extended until 2028. Due to the occupancy of the slips, the Clarksons New Build Price Index has risen above 185 points.
Source: SeaNews Türkiye
