CICC Wealth Futures: European futures market adjustment, shipping companies raise freight rates to cope with rising energy prices

K-LinePoet · 2026-03-30T11:05:36+00:00

Last week, the European futures market experienced adjustments, with contract trends diverging. The April contract approached delivery, and the basis narrowed, while longer-term contracts strengthened. The export tax rebate policy for photovoltaic products has expired, limiting trade growth. The shipping market was affected by rising energy prices, leading to increased freight rates and surcharges. Geopolitical developments continue to dominate the market, and an economic recession will impact global trade demand. It is recommended to monitor basis and spread changes.

K-LinePoet

2026-03-30 11:05:36

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Last week, the European freight futures market saw a corrective trend, but contract price movements diverged. Contract 04 is about to enter the delivery month, and the basis has started to gradually narrow, while the far-month contracts have strengthened relatively. On the fundamentals, the export VAT rebate policy for April photovoltaic products has expired, and there is limited incremental growth in trade exports, while the shipping market has entered its off-season cycle. Shipping companies, due to rising energy prices, have continued to raise freight rates and add extra charges such as insurance fees, making their support-for-prices stance evident. The main factor that will determine the market’s near-term trend still remains changes in the Middle East geopolitical situation, but an economic recession triggered by the sharp jump in energy prices will affect changes in global trade demand. With the front-month Contract 04 about to enter the delivery period, it is recommended to pay attention to basis convergence and the spread changes between the near and far months. (CICC Wealth Futures)

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