Global freight rates rise as South Korean carriers see higher Q3 forecasts

  • Global shipping rates increased across container, tanker and dry-bulk markets.
  • SCFI reached 3,662.18 on September 11 after seven consecutive weekly increases.
  • South Korean carriers received higher third-quarter earnings forecasts amid continuing supply disruptions.

Global shipping freight rates are strengthening across container, tanker and dry-bulk markets, prompting upward revisions to South Korean carriers' third-quarter earnings forecasts. The Shanghai Containerized Freight Index (SCFI), a benchmark for container shipping rates, reached 3,662.18 on September 11 after seven straight weekly gains and was about 70 points below its 2024 peak of 3,733.8. Middle East geopolitical risks, Panama Canal restrictions, typhoon damage in China, port congestion and cargo movements ahead of China's October 1-7 Golden Week holiday are tightening available capacity. U.S.-bound rates rose 4.35% week-over-week to $7,242 per FEU, while global port anchorage waiting capacity reached 4.31 million TEU at the end of August. Drewry said carriers canceled 70 sailings from week 38 through week 42, an 11% cancellation rate and 56% more than the previous week's 39 cancellations. Tanker and bulk markets also advanced, with Very Large Crude Carrier (VLCC) rates on the Middle East-China route reaching as much as $800,000 a day and the Baltic Dry Index rising 13.9% to 3,628. FnGuide's third-quarter operating-profit consensus is ₩601.5 billion for HMM and ₩176.8 billion for Pan Ocean. Exporters, particularly small and mid-sized companies exposed to spot contracts, are absorbing the volatility, while higher fuel costs and concerns about vessel oversupply after 2027 cloud the outlook beyond this year.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.