Global shipping freight rates have risen for the tenth consecutive week, despite the ceasefire between the U.S. and Iran. While freight rates on Middle Eastern routes have declined for three consecutive weeks, analysts attribute the overall increase to rising rates on routes to the Americas and Europe.
According to shipping industry reports on July 3, the Shanghai Containerized Freight Index (SCFI), which measures global maritime freight rates, climbed 87.23 points to 3,326.87, up from 3,239.64 the previous week.
This marks the tenth straight week of increases since a slight dip to 1,875.26 on April 24. Compared to the pre-conflict level of 1,333.11 on February 27, rates have skyrocketed by about 150%. The index surpassed 3,000 on June 18, a threshold not seen since August 2022, nearly two years ago.
Freight rates for Middle Eastern routes dropped $200 per twenty-foot equivalent unit (TEU) to 4,392 USD, marking three consecutive weeks of decline since June 18. This follows the resumption of navigation through the Strait of Hormuz after the U.S. and Iran signed a ceasefire agreement on June 17. However, rates remain elevated compared to the pre-conflict level of 1,327 USD on February 27.
Rates for routes to the U.S. East Coast surged by 912 USD to 8,296 USD per forty-foot equivalent unit (FEU). During the same period, U.S. West Coast rates increased by 563 USD to 6,630 USD. Notably, East Coast rates have exceeded 8,000 USD for the first time since August 2022, almost two years ago.
European route rates rose by 76 USD per TEU to 3,418 USD, while Mediterranean routes saw a 51 USD increase to 4,717 USD. Australia and New Zealand routes experienced a 201 USD jump to $2,279. In contrast, South American routes bucked the trend, with rates falling 640 USD to 7,544 USD.