Against the backdrop of rising expectations for US-Iran negotiations and easing geopolitical tensions in the Middle East, sentiment in the container shipping market has turned cautiously watchful this week. The latest SCFI Composite Index, released on April 17, stood at 1886.54 points, down 0.22% from the previous week, ending three consecutive weeks of gains and officially entering a phase of consolidation and range-bound trading.

Europe Route:

Demand remained relatively stable, while spot rates edged down. The Shanghai-to-Europe freight rate was US$1,501/TEU, a decrease of 3.0% from the prior week.

Mediterranean Route:

Market trends followed those of the Europe route, with spot booking prices continuing to decline. The Shanghai-to-Mediterranean rate was US$2,491/TEU, down 3.8% week-on-week.

North America Routes:

Overall demand was steady with a sound supply-demand balance, pushing spot rates slightly higher. The Shanghai-to-US West Coast and US East Coast rates were US$2,612/FEU and US$3,584/FEU, up 2.4% and 1.9%, respectively.

Persian Gulf Route:

Military conflicts in the Middle East remained in a ceasefire state, and geopolitical conditions gradually stabilised. However, shipping through the Strait of Hormuz still faces considerable uncertainty. The Shanghai-to-Persian Gulf rate was US$4,031/TEU, down 3.3% from the previous week.

Australia & New Zealand Route:

Demand was steady to firm, with a solid supply-demand foundation, keeping spot rates on an upward trend. The Shanghai-to-Australia & New Zealand rate was US$1,014/TEU, up 19.4% week-on-week.

South America Route:

Demand lacked further momentum for growth, the supply-demand balance weakened, and spot rates continued their downward adjustment. The Shanghai-to-South America rate was US$2,419/TEU, down 3.3%.

Japan Route:

The shipping market remained broadly stable, with spot rates edging down. The China-to-Japan freight rate index stood at 949.58 points.

Market expectations of a full-scale rate hike on May 1 have notably cooled. On one hand, weak end-consumer demand recovery in Europe and the US has limited overall cargo volume growth. On the other hand, despite energy and fuel costs remaining high, both carriers and shippers are adopting a wait-and-see attitude, with long-term contract price negotiations at a stalemate. Carriers lack demand support for substantial rate increases.

Looking ahead, the market will maintain a pattern of high costs, weak demand, and intense negotiations, with freight rates unlikely to see sustained sharp rises. Instead, rates will fluctuate within a range, with only localised tightness in space due to blank sailings or pre-holiday stocking.