China’s index of export container transport fell in the week ending on Sept 23, according to the Shanghai Shipping Exchange.
The China Containerized Freight Index went down 5.1 percent to 2,475.97 from the previous week, according to the exchange.
The CCFI tracks spot and contractual freight rates from Chinese container ports for 12 shipping routes across the globe, based on data from 22 international carriers. The index was set at 1,000 on Jan 1, 1998, according to a Xinhua report.
The container transport rate has witnessed continuous decline for more than a dozen of weeks, according to a report of China News Service, despite the traditional peak season for freight export between July to September.
Mei Xinyu, a researcher at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said the skyrocketing growth of container transport rate in 2020 and 2021 was not sustainable, and the falling of prices was just a matter of time.
The higher-than-expected inflation pressure brought by monetary policies of countries such as the United States has weakened the growth expectations of international trade, Mei said, adding that the drop of freight rate is reasonable.
In contrast to the Containerized Freight Index, the China Import Crude Oil Tanker Freight Index registered at 1,816.13 during the same period, a jump of 15.41 percent compared to the last period.
According to the Shanghai Shipping Exchange, container capacity loss will still be one of the main factors affecting the supply and demand of shipping market and the fluctuation of market freight rate.
Besides, the volatile COVID pandemic, geopolitics, and inflationary pressure due to the adjustment of energy and food supply have all caused great uncertainty to the demand for foreign trade freight, said the report.
Source: Hellenic Shipping News
