On 9th June, the Shanghai Container Freight Index (SCFI) fell again. The low utilization of trans-Pacific route forces the carriers cutting down the freight rates of US West Coast and East Coast routes, which wiping out all the increases of previous 2 weeks.

Since 2nd June, freight rates of Shanghai-US West Coast routes have dropped by 17% to USD1388/FEU, while freight rates of Shanghai-US East coast routes have dropped by 8% to USD2435/FEU.

Announced by the latest report of Linerlytica on 12th June: The utilization of transport capacity remains low, which is not able to prop up any increase of ocean freight. Most trans-Pacific carriers have cancelled their plans of rate increase on 15th June and postponed the next rate increase to 1st July.

As the matter of fact, the current labor dispute at West coast of USA is not able to influence the flow of cargoes. Congestion of this area is going better now. Due to the capacity of transportation is sufficient, the hope of raising up high freights by restricting loading formats by Panama Canal Authority has been destroyed now.
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