The Freightos Baltic Index (FBX) sunk to US$1,297 breaching the psychological mark of US$1,300 on the downside as per the latest quote on 23 June 2023. With this, the index officially breached the pre-pandemic mark settling below the mark of US$1,315 which it hit on 6 December 2020.
The weekly loss of 7.29% is the third-worst weekly movement in 2023. The transpacific rates which have been losing steam steeply have been the largest laggard for the composite index, as well. The China-North America West Coast rates were seen to have dived 15% to US$1,209, in line with the rates reported by Drewry and Xeneta as well.
All Pacific rates were seen taking a tumble of anywhere between 3-15%, with the China-Mediterranean backhaul rates recording the only streak of green.
The Europe – South America West Coast took another 9% weekly tumbling on the back of a 14% drop reported, the previous week. It must be noted that the trade lane has seen a price erosion of nearly US$1,000 in just two weeks.
Xeneta, however, has shown that the rates to the South America East Coast trade better even as Freightos reported a 14% dip in the Europe – South America East Coast numbers. The Shanghai Containerized Freight Index (SCFI) meanwhile dragged further to 924.29, just 2% above the March-2023 low of 906.
The Chinese Containerized Freight Index (CCFI) hit its lowest quotes since 4 September 2020 at 919.63 with the trade lanes in Korea and South Africa contributing the largest percentage dips.
Earlier in the week, Goldman Sachs had cut the growth forecasts for China for 2023. The empty container Index (CAx) still rules a higher ratio of 0.64-0.65 for the Chinese Port hubs of Shanghai and Qingdao.
However, numbers to South America and the Mediterranean have been higher than those from China to Europe and the United States. According to the General Administration of Customs, China’s exports of intermediate goods to Belt and Road member countries rose 18.2%, year on year, in Q1, to US$158 billion, representing more than half of all exports to these countries.
Author of the article: Gautham Krishnan
Gautham Krishnan is a Logistics professional with Fluor Corporation, in the area of project logistics and analytics, and has worked in the areas of Project Management, Business Development and Government Consulting