1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Shipping companies are trying to raise prices in the second half of October, and attention should be paid to the actual transaction prices during this period [1]. - The valuation of the October contract is becoming clearer, and attention should be paid to Maersk's first - week quotation in the second half of October. The settlement price of the October contract is the arithmetic average of SCFIS on October 13th, 20th, and 27th. The freight rate center in the first half of October has dropped to around $1400/FEU. HPL and CMA have attempted to raise prices in the second half of October. If the price increase in the last week is successful, the final three - phase settlement price will correspond to a spot price of approximately $1450/1450/1950/FEU, equivalent to about 1130 points in SCFIS; if the price increase fails, the final settlement price may be below 1000 points [4]. - The December contract is far from delivery, and trading mainly focuses on the rhythm. Ship companies may adjust supply to keep freight rates high during the fourth - quarter holiday season. However, there are risks such as the bottom of the current freight rate decline and weak demand on the US route. If US - bound ships are redirected to the European route in the fourth quarter, it may put pressure on European route prices. The trading rhythm of the December contract is expected to involve first trading the price - increase expectation, then the actual implementation of the price - increase notice, and repeating this cycle until delivery. Given the frequent rhythm changes, investors can try with a light position [5][6]. - The strategy suggests that the main contract will fluctuate weakly, and for arbitrage, it is advisable to short the October contract [8]. 3. Summary by Directory 3.1 Market Analysis - **Online Quotes**: Different shipping companies have different price trends. For example, Maersk's Shanghai - Rotterdam quotes decreased from Week 40 to Week 41; HPL - SPOT's price increased in the second half of October and the first half of November. Some companies' prices remained stable in the first half of October, while CMA attempted to raise the price for the Shanghai - Antwerp route in the second half of October [1][2]. - **Geopolitical Situation**: Hamas has drafted a letter to US President Trump, requesting a 60 - day cease - fire in exchange for the immediate release of half of the hostages in Gaza. The letter is expected to be delivered this week [2]. 3.2 Container Ship Capacity Supply - **Weekly and Monthly Average Capacity**: The monthly average weekly capacity from China to European base ports was 272,600 TEU in October and 285,200 TEU in November. There were 15 blank sailings in October and 4 blank sailings and 3 TBNs in November [3]. - **Ship Deliveries**: 2025 is a major year for container ship deliveries. As of September 21, 2025, 196 container ships with a total capacity of 1.562 million TEU have been delivered. Among them, 62 ships in the 12,000 - 16,999 TEU range with a total capacity of 935,000 TEU and 8 ships over 17,000 TEU with a total capacity of 176,880 TEU have been delivered [7]. 3.3 Futures and Spot Prices - **Futures Prices**: As of September 22, 2025, the total open interest of all container shipping index European route futures contracts was 85,743 lots, and the single - day trading volume was 65,644 lots. The closing prices of different contracts such as EC2602, EC2604, etc., are provided [7]. - **Spot Prices**: On September 19, 2025, the SCFI (Shanghai - Europe route) price was $1052/TEU, the SCFI (Shanghai - US West route) price was $1636/FEU, and the SCFI (Shanghai - US East) price was $2557/FEU. On September 15, the SCFIS (Shanghai - Europe) was 1254.92 points, and the SCFIS (Shanghai - US West) was 1193.64 points [7]. 3.4 Strategy - **Unilateral Trading**: The main contract is expected to fluctuate weakly. - **Arbitrage**: It is advisable to short the October contract [8].

Report Summary 1. Report Industry Investment Rating - No relevant information provided 2. Core View of the Report - The EC market showed an upward trend. The rise was mainly driven by MSC's announcement of two sailings cancellation during the National Day, the increased expectation of non - resumption of navigation in the Red Sea after the Houthi's retaliation against Israeli oil tankers, and the court's decision that Trump's so - called "reciprocal" tariffs were illegal. However, Maersk's lower opening price in wk38 narrowed the afternoon gains [7]. - The price adjustment of OCEAN's September freight rates accelerated, which might put pressure on NSK to cut prices for cargo. The spot market of OCEAN faced increasing cargo - picking pressure, leading to a freight rate callback. The 12 - contract price was likely to fluctuate weakly. The follow - up focus should be on whether MSK would cut prices and whether the freight rates could stop falling in mid - September, with a short - term possibility of falling below 1300 [8]. 3. Summary by Related Contents 3.1 Shipping Freight Index - The current values of SCFI comprehensive index, CCFI, SCFI - US West, SCFI - US East, SCFI - Northwest Europe, SCFIS - Northwest Europe, and SCFI - Mediterranean were 1445, 1156, 1923, 2866, 1481, 1773, and 2145 respectively. Their respective previous values were 1415, 1175, 1644, 2613, 1668, 1990, and 2225, with corresponding changes of 2.10%, - 1.58%, 16.97%, 9.68%, - 11.21%, - 10.90%, and - 3.60% [5]. 3.2 Shipping Futures Contracts - For contracts like EC2506, EC2608, etc., their current values, previous values, and changes are presented. For example, EC2506's current value is 1428.5, previous value is 1376.1, with a change of 3.81%. Also, information on contract positions and month - spreads is provided, such as the current EC2606 position is 890, a change of 23 from the previous value [5]. 3.3 Market News and Events - Yemen's Houthi rebels planned to avenge the death of important members in Israeli air strikes and continued to support the Palestinian people [6]. - The US Trade Representative's Office extended the exclusion list measures in the investigation of China's related behaviors under Section 301 until November 2025 [6]. - The US government planned to expand national security tariffs in the coming months, covering industries like steel, aluminum, semiconductors, etc. [6]. 3.4 Market Strategy - The recommended strategy is to short the 10 - contract on rallies and conduct a rolling 10 - 12 reverse spread [9].