Global shipping freight rates have risen for the ninth consecutive week, despite ongoing ceasefire talks between the U.S. and Iran. This persistent increase is attributed to continued uncertainty surrounding the ceasefire, operational delays, and vessels waiting at ports. However, Middle Eastern freight rates, which had previously seen significant hikes, have declined for two weeks in a row.
On June 26, the shipping industry reported that the Shanghai Container Freight Index (SCFI), which measures freight rates across global maritime routes, climbed by 117.95 points to 3,239.64, up from 3,121.69 the previous week.
This marks the ninth straight week of increases since a slight dip to 1,875.26 on April 24. The index surpassed the 3,000 mark last week, a level not seen since August 23, 2024 – nearly two years ago. Compared to February 27, when the conflict began and the index stood at 1,333.11, rates have skyrocketed by 143.0%. This surge is driven by rising rates on most major routes, excluding the Middle East.
In contrast, Middle Eastern route freight rates dropped to 4,592 USD per TEU (twenty-foot equivalent unit), down 161 USD from the previous week. This marks the second consecutive week of decline. However, rates remain elevated compared to pre-conflict levels, which were 1,327 USD per TEU on February 27.
Trans-Pacific routes saw significant increases. East Coast rates jumped 511 USD to 7,384 USD per FEU (forty-foot equivalent unit), while West Coast rates rose 384 USD to 6,067 USD per FEU. These are the highest levels seen in almost two years, with East Coast rates last exceeding 7,000 USD on September 6, 2024, and West Coast rates last surpassing 6,000 USD on August 30, 2024.
European routes experienced a 184 USD increase, reaching 3,342 USD per TEU. Mediterranean routes climbed 406 USD to 4,666 USD per TEU. The Australia-New Zealand route saw a 270 USD rise to 2,078 USD, while South American routes bucked the trend, falling 242 USD to 7,970 USD.