News summary
May 22crashteamracingnintendoswitch, EC2408 contract fell 1crashteamracingnintendoswitch.81% to 4145 points, Maersk raised the Shanghai-Rotterdam freight rate, and geopolitical tensions may push up monthly contract prices.
Newsletter text
[On May 22, the futures market performance fluctuated, and the EC2408 contract fell below the threshold]
During the trading day of May 22, various contracts in the market showed violent fluctuations. The main contract EC2408 started high, but then closed low, closing at 4145 points, suffering a decline of 1.81%. In terms of fundamental analysis, Maersk Line has slightly increased the freight rate on the Shanghai-Rotterdam route from the upcoming period from the end of May to the beginning of June. Specifically, the 40-foot general container (GP) freight rate was increased to US$7065, while the 20-foot container freight rate was fixed at US$4332. The freight rates of Mediterranean Shipping and CMA CGM Shipping have not yet been adjusted, maintaining at US$7540 and US$7060. In addition, Maersk also announced that starting from June 17, the FAK rate for the European line will be adjusted to US$6500 and US$3325. Investors need to pay close attention to the freight rate changes of other shipping companies to predict the potential impact of higher freight rates on the futures market.
[Tensions escalate in the Middle East, affecting the shipping market]
Geopolitical tensions have worsened in the Middle East, with Israel's Finance Minister announcing that he will stop transferring tax revenue to the Palestinian Authority. At the same time, Israeli forces have stepped up their crackdown on Hezbollah in Lebanon. Norway and Ireland have announced that they will recognize Palestine as statehood, which may aggravate the conflict between Palestine and Israel. A tense political environment could push up shipping costs, putting pressure on far-moon contract prices.
[Futures prices may continue to rise in the short term]
Combined with geopolitical fluctuations and rising freight rates, futures prices are expected to continue to rise in the short term. What investors need to note is that as the delivery date of the main 06 contract approaches, the basis is gradually narrowing.