Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending Feb.13， China export box transport market sees transport demand increase in most services before the Chinese New Year， with the whole market on the upward trend. Nevertheless， a small number of services experience freight rate slip， which is impacted by the expansion of capacity. On Feb.13， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 1078.69 points，  up by 1.2% from one week ago; while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE quotes 1088.29 points， up by 0.1% against last week.

In the Europe service， as the shipment rush before the Chinese New Year， transport demand has a week-on-week increase， but not as much as expected. The average slot utilization rate keeps at 95%， completely different from that in previous years. Under this circumstance， freight rate is dampened from increase in early Feb.， and box liners have to reduce it， with some even below USD900 per TEU. On Feb.13， freight rate in the Shanghai-Europe service （covering seaborne surcharges） quote USD1003 per TEU， falling by 5.1% from last week. In the Mediterranean service， cargo volume increases， but not as much as expected. Thanks to the control of capacity by box liners， demand/supply condition keeps good overall， the average slot utilization rate nearly 100%， with spot rate slip somehow. On Feb.13， freight rate in the Shanghai-Europe service （covering seaborne surcharges） quote USD1355 per TEU， down by 1.3% week on week.

In the North America service， as firm recovery of U.S. economy， transport demand is boosted. In the USWC service， it sees space supply tighten， with some even full-loaded， and freight rate arise stably. On Feb.13， freight index in the China-USWC service quotes 1016.27points， up by 0.1% against last week. In the USEC service， transport demand has a remarkable increase， which is benefit from the Chinese New Year， but the oversupply of capacity is not improved. Consequently， freight rate in the spot market climbs， with some even surplus USD5000 per FEU， a fresh high record. On Feb.13， freight index in the China-USEC service quotes 1347.08 points， up by 1.9% from one week ago. It is said that part box liners plans to hike spot rate again in early March.

In the Australia/New Zealand service， cargo volume rebounds . As most box liners carry out service ceasing plan， ship space shrinks by 10%， with spot rate declining slightly. On Feb.13， freight rate in the Shanghai-Australia/New Zealand service quotes USD703 per TEU， down by 0.6% from one week ago.endprint

In the South America service， as the weak economy in the destination， cargo volume before the Chinese New Year increase slightly， with the whole market declining. The average slot utilization rate in the east coast of South America service stands only 90%， and spot rate keeps falling， with some even at around USD600 per TEU; while the average slot utilization rate is 95%， freight rate stands at USD1600 per TEU. On Feb.13， freight index in the China-South America service quotes 829.43 points， falling by 2.9% from one week ago.

Cargo volume rebounds in the Japan service， where the average slot utilization rate leaving from Shanghai Port climbs to be above 70%， with spot rate arising firmly. On Feb.13， freight index in the China-Japan service quotes 705.81 points， having a week-on-week increase of 1.7%.

（Please contact the Information Dept of SSE for more details.）

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 921

3/3/2015

CONTENT FOR THIS WEEK

Seamens Legal Rights Should Be Maintained

Evergreen Increases Mega Vessels

Private Shipping Companies Experience Hard Time

Cruise Travel Tends to Be Hot

Scorpio Bulkers Seems to Be Strong Outwardly but

Weak  Inwardlyendprint