SCFI Ends Ten-Week Rally as Global Container Freight Rates Retreat Across Major Trade Lanes

The latest Shanghai Containerized Freight Index (SCFI) closed at 3,184.83 points, declining 4.3% week-on-week and ending a ten-week upward trend. The correction reflects easing market momentum as peak-season demand weakens and additional shipping capacity continues to enter the market. Analysts believe the latest decline signals a shift toward a more balanced supply-demand environment across the global container shipping industry.

Freight rates across the world's four major trade routes all recorded declines during the reporting period. The Shanghai–Europe route fell to US$6,219 per FEU, down 6.2% from the previous week, while the U.S. route eased to US$8,134 per FEU, representing a 2% decrease. Meanwhile, rates on the Mediterranean service dropped to US$4,561 per TEU, a decline of 3.3%, highlighting broader downward pressure across international shipping markets.

Market participants attribute the decline to slowing cargo demand following the recent tariff-driven shipping surge, combined with the gradual release of newly deployed vessel capacity. As more carriers restore services and optimize network deployment, competition among shipping lines has intensified, placing additional pressure on freight pricing. Despite the correction, current rate levels remain relatively high compared with historical averages, indicating that the market continues to operate at a healthy level.

Industry sources also noted that some carriers have begun relaxing booking restrictions previously imposed on long-term contract customers. Vessel allocation policies have reportedly shifted from the stricter "three longs over one short" priority to a more flexible "two longs over one short" approach, improving booking accessibility and operational flexibility for shippers. Going forward, freight rate trends will largely depend on cargo demand during the traditional peak shipping season and the pace of future capacity adjustments.