Freight Index Rises 12% Over Six Weeks Amid Strait of Hormuz Tensions as Troop Deployment Considered

[Financial News] As military tensions rise again in Iran’s Strait of Hormuz, the shipping industry is facing higher freight costs. The international freight index has risen for six consecutive weeks.
According to the Shanghai Shipping Exchange, the Shanghai Containerized Freight Index (SCFI) stood at 3,590.05 as of the 4th, up 80.52 points from the previous week.
The index has risen for six consecutive weeks since July 31, when it stood at 3,205.97, gaining 384.08 points. That represents an increase of about 12% from late July. It also marked a new high for the year.
The SCFI is an index compiled by the Shanghai Shipping Exchange that reflects freight rates on 15 routes in the Shanghai export container shipping market. It is calculated based on the freight rate in dollars per 1 TEU, or one 20-foot container.
The Strait of Hormuz is considered the main reason for the SCFI’s rise. Tensions have intensified after two private tankers were recently attacked with missiles. The Donald Trump administration has pressured its allies to join a response to Iran, while the Lee Jae-myung administration said it was considering deploying troops.
[email protected] Kim Yun-ho Reporter