Report Summary 1. Core View - The market of shipping derivatives shows an overall upward trend, but with certain fluctuations. After the Sino - US tariff negotiation results exceeded expectations, the contracts initially rose rapidly and then entered a phase of fundamental game and oscillation. As the pricing for June becomes clearer, the market is shifting towards trading the more certain 06 contract, and the spread between the 6 - 8 contracts is narrowing. It is recommended to gradually take profit on long positions and arbitrage [9]. 2. Key Data 2.1 Freight Rate Index | Index | Present Value | Previous Value | Change Rate | | ---- | ---- | ---- | ---- | | Shanghai Export Container Freight Index (SCFI) | 1586 | 1479 | 7.21% | | China Export Container Freight Index (CCFI) | 1107 | 1105 | 0.23% | | SCFI - US West | 3275 | 3091 | 5.95% | | SCFIS - US West | 1720 | 1446 | 18.92% | | SCFI - US East | 4284 | 4069 | 5.28% | | SCFI - Northwest Europe | 1317 | 1154 | 14.12% | | SCFIS - Northwest Europe | 1247 | 1265 | - 1.44% | | SCFI - Mediterranean | 2328 | 2082 | 11.82% | [5] 2.2 Forward Freight Agreement (FFA) Contracts | Contract | Present Value | Previous Value | Change Rate | | ---- | ---- | ---- | ---- | | EC2506 | 1808.0 | 1773.0 | 1.97% | | EC2508 | 2131.0 | 1949.5 | 9.31% | | EC2510 | 1392.4 | 1349.4 | 3.19% | | EC2512 | 1570.3 | 1526.0 | 2.90% | | EC2602 | 1400.0 | 1372.3 | 2.02% | | EC2604 | 1239.0 | 1222.8 | 1.32% | [5] 2.3 Contract Positions | Position | Present Value | Previous Value | Change Value | | ---- | ---- | ---- | ---- | | EC2506 Position | 12716 | 15946 | - 3230 | | EC2508 Position | 46578 | 43765 | 2813 | | EC2510 Position | 24224 | 23149 | 1075 | | EC2512 Position | 4409 | 4392 | 17 | | EC2602 Position | 2743 | 2824 | - 81 | | EC2604 Position | 3199 | 3070 | 129 | [5] 2.4 Month - to - Month Spread | Spread | Present Value | Previous Value | Change Value | | ---- | ---- | ---- | ---- | | 10 - 12 | 738.6 | 600.1 | 138.5 | | 12 - 2 | - 177.9 | - 176.6 | - 1.3 | | 12 - 4 | 331.3 | 303.2 | 28.1 | [5] 3. Market News - China will reduce tariffs on US goods from 125% to 10% for 90 days, and the US will reduce tariffs on Chinese goods from 145% to 30% for 90 days [6]. - US President Trump said that the US may unilaterally set new tariff rates for many trading partners in the next two to three weeks [7]. - A Palestinian official said Hamas agreed to the Gaza cease - fire proposal put forward by US Middle East Envoy Witkoff, but an Israeli official refuted it [8]. - On May 28, the US International Trade Court blocked the tariff policy announced by President Trump on April 2, ruling that Trump overstepped his authority. However, the ruling does not affect tariffs on cars, auto parts, steel or aluminum [8]. - Trump threatened to impose a 50% tariff on the EU starting from June 1 [8]. 4. Spot Market - The average price of May spot goods was still between 1700 - 1800 $/FEU, with a slight decline compared to the first half of May. Affected by the Sino - US tariff negotiation news and the recovery of demand on the US route, airlines collectively tried to raise the freight rate on the European route in June to 3200 - 3300 $/FEU. Some airlines adjusted their prices, and PI added an empty flight at the end of June [9]. 5. Futures Market - After the Sino - US negotiation results exceeded expectations, the contracts rose rapidly to fill the "Trump gap" and then entered an oscillation phase. As the pricing for June becomes clearer, the market is trading the more certain 06 contract, and the spread between the 6 - 8 contracts is narrowing [9]. 6. Strategy - Long positions and arbitrage can gradually take profit [10]