The Shanghai Containerized Freight Index (SCFI) took a 2% tumble to settle at US$1,031.42, its lowest-ever quote since July 2020, settling just a tad higher than the three-year historical low of US$1,022 recorded in January 2020.
While there is a talk of normalization on the cards, with rates nearing the pre-pandemic levels, the advent of the Chinese New Year will most likely see the index hitting the pre-pandemic mark as the demand scenario is negative with inbound volume into the US recording negative growth. Technically though, the SCFI had seen better quotes way back in 2012, an event that coincided with the high crude prices which trickled towards higher shipping costs.
The Drewry’s saw some stabilizing yet again after the 43-week falling streak for the index snapped during the first week of January 2023.