Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending April 3， China export box transport market sees the overall demand on the stable recovery period. However， since capacity increases rapidly in the main services， demand/supply condition is not positive， leading that most box liners are forced to hike freight rate further， and spot rate keeps slipping. On April， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 994.83 points， down by 1.5% from one week ago; while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE dives by 5.1% against one week to 763.95 points.

In the Europe service， Euro Zone economy presents on the improvement period. Since the input of mega box vessels， box liners are enforced to delay freight rate increase plan， and reduce it to lock market share.

Spot rate in the Europe and Mediterranean services slip to be USD350 per TEU and USD500 per TEU. On April 3， freight indices in the services from China to Europe and Mediterranean quote 1164.20 and 1259.96 points， falling by 3.7% and 4.6% from one week ago respectively.

Transport demand is stable in the North America service. Box liners， in order to ensure effect， decide to extend one week to carry out freight rate increase plan. In the USWC service， box vessels recover to work normally， and demand/supply condition keeps balance， where the average slot utilization rate keeps around 85%. On April 3， freight rate in the Shanghai-USWC service （covering seaborne surcharges） quotes USD1635 per FEU， having a week-on-week decline of 3.9%.

In the USEC service， part box liners begin to input capacity， as a result， capacity have an increase. On April 3， fright rate in the Shanghai-USEC services （covering seaborne surcharges） quotes USD4033 per FEU， slipping by 4.3% from one week ago.

Cargo volume in the Australia/New Zealand service， with the aim to firm freight rate， box liners enforce the capacity control measures， causing capacity shrinking by 30%， and the average slot utilization rate rebounds to be 85% above.

Spot rate keeps increasing. On April 3， freight rate in the Shanghai-Australia/New Zealand service （covering seaborne surcharges） quotes USD680 per TEU， jumping by 9.9% against one week ago.

In the South America service， impacted by the weak economy of Brazil， transport demand has no remarkable change.

Affected by the relatively lowly loading rate， box liners have to extend freight rate increasing plan， causing that spot rate weak to jump on the lower level， with some even below USD400 per TEU.

On April 3， freight index in the China-South America service quotes 772.92 points， down by 0.8% from one week ago.

Transport demand keeps stable in the Japan service， where the average slot utilization rate hovers at around 60%， with spot rate stumbling.

On April 3， freight index in the China-Japan service quotes 681.73 points， having a week-on-week slip of 2.3%.

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

SHIPPING EXCHANGE BULLETIN

TOTAL EDITION： 927

14/4/2015

CONTENT FOR THIS WEEK

Pollution from Ships， the Least not the Most

Pollution from Ships Could Be Reduced through

Policy and Technology

Seacon Ship Management Has an Anti-Market

Expansion

Mega Box Vessels Club Increases Two More Members

DVB Bank Is Cautious on the Shipping Sector

China Shipbuilding Industry Has More Actions

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