Weekly Commentary on ChinaContainerized Transportation

Zhu+Pengzhou

In the week ending July 3, China export box market enters the traditional peak season, but the increase of tonnage overwhelms the growth of cargo volume, causing the demand/supply condition still awful, and so does the general market. On July 3, China (Containerized) Freight Index (CCFI) issued by Shanghai Shipping Exchange (SSE) quotes 790.65 points, having a week-on-week decrease of 2.5%. However, with the support from the trade ceasing measures, box liners push up freight rates in many ocean-going trades, with booking rate rebounding somehow. On July 3, Shanghai (Containerized) Fright Index (SCFI) issued by SSE jumps b 16.4% from last week to 745.45 points.

In the Europe service, as the approach of traditional peak season, cargo volume goes on the upward trend. The average slot utilization rate rises to be 90% about. In terms of spot rate, despite some box liners, who hiked freight rate last week, reducing freight rate slightly, the other part of box liners follow to lift freight rate, leading booking rate having a jump. On July 3, freight rates in the services from Shanghai to Europe and Mediterranean (covering seaborne surcharges) quote USD879 and USD 941 per TEU, surging by 60.4% and 39.4% from one week ago respectively.

The market enters on the traditional peak season in the North America service, but cargo volume has no remarkable increase. The average slot utilization rates in the USWC and USEC services are 85% and 90%. On July 3, freight indices in the services from China to USWC and USEC quote 868.31 points and 1160.42 points, falling by 1.9% and 2.0% from last week respectively. After observing for one week, most box liners begin to carry out freight rate increase plan. In the week ending July 3, freight rates in the USWC and USEC services increase by below USD200 and USD100 per FEU respectively, far less than USD500-600 per FEU as announced previously.

In the Australia service, transport demand has no remarkable improvement. Box liners limit tonnage by 20%. The average slot utilization rate leaving Shanghai Port hovers around 85%. Box liners have to hike freight rate to improve operation perform，which increase on the  extent between USD100 per TEU and USD300 per TEU. On July 3, freight rate in the Shanghai-Australia/New Zealand service (covering seaborne surcharges) surges by 48.6% against last week to USD428 per TEU.

In the Persian Gulf service, as the approach of Ramadan, cargo volume keeps flat. Owing to the negative attitude towards the post market, most box liners decide to extend freight rate increase plan, leading spot rate too weak to rebound. On July 3, freight rate in the Shanghai-Persian Gulf service (covering seaborne surcharges) quotes USD503 per TEU, rising by 2.4% from one week ago. Cargo volume rises slightly in the Japan service, where the average slot utilization rate leaving Shanghai Port keeps around 60%, with spot rate stable. On July 3, freight index in the China-Japan service quotes 633.27 points.

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