China's export container transport costs rise amidst growing demand
(MENAFN) The Shanghai Shipping Exchange reported a continued upward trend in China's index of export container transport costs over the past week, driven by stable growth in demand, particularly in the South American, African, Persian Gulf, and Red Sea shipping routes. The average China Containerized Freight Index (CCFI) reached 1,495.98 on May 31, marking a 7.7 percent increase from the previous week.
Analysts from Hua Chuang Securities attributed the surge in freight rates to a combination of factors, including geopolitical tensions and improving export demand. The rise in prices has been particularly pronounced since the beginning of May, with domestic manufacturers hastening to ship goods ahead of anticipated tariff hikes, such as Brazil's planned import tax increases on electric vehicles in July.
Zhang Yu, chief analyst at Hua Chuang Securities, highlighted the role of heightened shipping demand in response to impending regulatory changes, contributing to the overall upward pressure on prices. The China Containerized Freight Index (CCFI) tracks both spot and contractual freight rates from Chinese container ports for 12 shipping routes worldwide, utilizing data from 24 international carriers.
A breakdown of the May 31 reading revealed significant increases in the sub-readings for specific shipping routes, notably the West and East Africa service, which saw a week-on-week growth of 16.9 percent. This was closely followed by the South Africa route, registering a 10.9 percent increase from the previous week, indicative of robust demand dynamics driving the upward trajectory of export container transport costs.
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