China: Shanghai Containerized Freight Index strengthens w-o-w on frontloading, tight capacity

• Strong demand and frontloading supported rates
• Tight capacity and surcharges kept market firm

The Shanghai Containerized Freight Index (SCFI) surged 4.6% to $3,121.7/twenty-foot equivalent unit (TEU) on 18 June 2026 as against $2,985.2/TEU on 12 June. Due to the Dragon Boat Festival holiday (19-21 June), the Shanghai Containerized Freight Index (SCFI) was published on Thursday, 18 June 2026 instead of Friday. The index stayed firm through the week, with gains continuing across key east-west routes.

Stronger peak-season demand, coupled with cargo frontloading ahead of expected US tariff adjustments and the 1 July bunker fuel changes, kept container spot rates on an upward trajectory. Carrier-led capacity discipline, along with the implementation of surcharges, further reinforced the firm pricing environment.

Although easing tensions in the Middle East have helped reduce concerns over energy supply disruptions, overall market sentiment remains supported by resilient cargo flows and limited short-term capacity availability.

The Asia-Europe trade lane continued to strengthen as early seasonal demand and pre-bunker adjustment booking activity tightened vessel space. With blank sailings kept limited and peak season surcharges (PSS) alongside higher freight all kinds (FAK) levels widely implemented, rates extended their gains and the near-term outlook remains positive.

Trans-Pacific routes also stayed firmly bullish, driven by strong seasonal demand, tariff-related frontloading, and active capacity management by carriers. Tight space conditions and sustained surcharge collection continued to underpin spot rate strength, with expectations of stability to firm tone in the coming weeks.

Outlook

Container freight rates are likely to stay elevated in the near term, underpinned by seasonal demand strength, continued cargo frontloading ahead of policy and fuel-cost adjustments, and disciplined capacity management by carriers.

Although easing geopolitical tensions could help temper volatility in bunker costs, tight vessel availability and sustained surcharge implementation are expected to keep the market broadly firm across major trade lanes.