Ocean and Air Freight Rates Expected to Remain High in the Second Half of the Year

This week, ocean freight rates on European and American routes saw a slight decline. The rate for a 40-foot container on the West Coast of the United States is between $6,100 and $6,400, while on the East Coast, it's about $8,800 to $9,000. The rate for the Europe route is $8,000 to $8,400. In the air freight market, urgent demand has driven up shipping costs to approximately NT$330 per kilogram. On the ocean freight side, shipping companies are engaging in price competition to increase loading rates, particularly on the U.S. West Coast route. Alliance shipping rates are holding above $6,000, while non-alliance shipping rates are below this price. The Shanghai Containerized Freight Index (SCFI) has dropped more than 400 points in the past month to 3,332.67 points, a decline of 10.74%. Industry experts believe that unless the SCFI falls below 1,500 points, shipping companies can still profit.

Looking ahead, the air freight market's peak season from the end of the third quarter to the end of the year is promising and expected to outperform the second quarter. E-commerce freight has reached a plateau, with no significant increase in consumer electronics volume, but it is anticipated that the shopping season in Europe and the United States at the end of the year will drive shipments of electronic goods. Additionally, some traditional industry goods have been affected by e-commerce, and products imported by U.S. importers last year are still in stock, which may impact the peak season performance. Despite this, consumer sentiment is expected to improve in the second half of the year as holidays such as Thanksgiving and Christmas approach.