Newsletter summary

The price of the main contract of Container Index (European Line) futures soared last week, mainly due to geo-risk spillover, lack of cabinets in southern ports and capacity reduction by shipping giants. The analysis predicts that there may be "four consecutive gains" in the second half of June, but the transport capacity will increase in late May, and the basis discount limits the room for growth.

Text of news flash

[the domestic market price of Container Index (European Line) futures continues to climb, with an increase of nearly 20% in one week.] in the last trading week, the performance of Container Index (European Line) futures market was strong, with prices soaring, with a weekly cumulative increase of as much as 20%. Market analysis points out that the spillover effect of geo-risk, the shortage of containers in some southern ports and the reduction of the capacity of international shipping enterprises are the main reasons for the price rise. The price of the main contract of Container Index (European Line) futures also rose sharply. On may 6th, the contract 2406 rose sharply at the end of the trading day, rising nearly 7 per cent in a single day, closing above the key level of 3100 points. Over the next two trading days, the contract continued to rise, rising more than 3 per cent in a single day, approaching 3200 points. On May 9, contract 2406 climbed rapidly after opening, rising nearly 12% on the day, closing at more than 3400 points. ToBingoequipmentOn May 10, the price of the contract hit a new high, rising by 7%.Bingoequipment.02%, closing at an all-time peak of 3576 points. Market sentiment is impacted by geo-risk spillover, and the increase in throughput of some ports at home and abroad has also aggravated the shortage of containers. According to expert analysis, this has not only boosted the motivation of shipping companies to raise freight rates, but also supported the bottom of contracts in recent months, promoting a strong rise in prices. In addition, the uncertainty of the Palestinian-Israeli peace talks has also had an impact on the price fluctuations of the far-moon contract. A series of measures taken by international shipping giants, such as suspending freight services on some routes and raising freight rates, have further exacerbated expectations of capacity tightening in the market, leading to a strong rise in the price of the Container Index (European Line). Chen Zhen, director of founder medium-term Futures Shipping and Commodity Index, predicts that shipments in June are expected to remain good, and that other airlines may follow the price rise, and may even achieve "four consecutive increases" in the second half of June, thus bringing further upward momentum to the main contract 2406 of the Container Index (European Line) futures. However, Yide Futures reminded investors that the supply of capacity would increase as some flights returned in late May, which could put pressure on freight rates. In addition, the spread between the spot index and the main contract is currently at a discount, which will limit the room for futures prices to rise. The shipping market is affected by a variety of factors, investors need to pay attention to the influencing factors of diversification, and can not predict the trend of freight rates only based on the peak season and off-season of the shipping market.