CICC Wealth Futures: The European line futures market continues its adjustment.

The Europe-route container freight futures market continues to trade under an adjustment trend. The main 08 contract shows a relatively weak order-book trend, and the price center of gravity has started to move downward. On the fundamentals side, the latest Shanghai Export Containerized Freight Index (SCFIS) came in at 3630.09 points, up 8.08% month-on-month. It has risen for 10 consecutive periods, but the gains have started to narrow. The traditional peak shipping season cycle is entering its tail end. Although shipping companies still have a willingness to support prices, spot freight quotes have begun to differentiate: long-term contracted freight rates remain at a high level, while special rates have appeared on some sailings. Meanwhile, the problem of insufficient growth in cargo volume for booking is starting to become visible. With global container shipping capacity continuing to increase, expectations for a full resumption of services on the Red Sea and Hormuz routes are heating up. Bearish factors on the supply side of shipping are gradually taking effect, exerting a significant impact on shipping prices. At this stage, it is recommended to focus on a wait-and-see approach, and to watch whether a turning point emerges in the peak shipping season cycle, as well as how the price spread changes between near- and far-month contracts. (CICC Wealth Futures)
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