Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

Recently， the shipment rush before the Spring Festival boosts the demand/supply condition to be balanced temporarily， but benefited by local economic fundamental conditions， market performed differently， with composite index fluctuating. On Jan.17， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1128.73 points， up by 1.2 percent week on week， while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE inched up 1.8 percent against last week to 1188.44 points.

The overall export volume got better in the Europe service， where more than one services were full-loaded. However， since the instability of European economy and more available capacities caused uncertainty of market， box carriers， to keep competitiveness， preferred conservative rate strategies that reducing rate slightly despite relatively high loading rate. On Jan.17， the freight rate in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quoted USD1641 per TEU and USD1670 per TEU， down by 4.2 percent and 4.3 percent week on week respectively.

In the North America service， according to public figures from the Institute of Supply Management （ISM）， U.S. manufacturing got momentum in Dec.. Meanwhile， the manufacturing employment index and new order index made record high since these two years， which encouraged the participants confidence on the market. Furthermore， the export market still suffered shortened supply of shipping space， so the sellers market status was strengthened in short term. Under the stress from multiple factors on the market， part box carriers began to push the second round of rate increase plan in Jan.， while rate increased at uneven levels. On Jan.17， the freight rate in the services from Shanghai to USWC and USEC services （covering seaborne surcharges） quoted USD2111per FEU and USD3430 per FEU， surging by 13.1 percent and 6.6 percent from one week ago.

In the Australia service， the average slot utilization rate kept at around 90 percent because of the Spring Festival. The stable loading rate maintained the achievement of rate increase in early Jan.， and rate kept stable. On Jan.17， the freight index in the China-Australia service quoted 926.58 points， almost unchanged from last week.

In the South America service， impacted by the slightly fluctuated economy on emerging market， market demand changed repeatedly， which expanded the difficulty for box liners to speculate the market and to regulate capacity. On Jan.17， the freight rate in the Shanghai- South America service （covering seaborne surcharges） dived by 32.5 percent week-on-week to USD1438 per TEU.

In the Persian Gulf service， cargo volume increased but still fell short of expectation， and the average slot utilization rate was 80 percent around. Presently， rate declined at limited space to decline and kept firm despite the sufficient supply of shipping space. On Jan.17， the freight index in the China- Persian Gulf service quoted 828.36 points， falling slightly by 1.3 percent from last week.

Cargo volume kept stable in the Japan service this week， where the average slot utilization rate inched up to be above 70 percent， with spot rate rebounding. On Jan.17， the freight index in the China-Japan service quoted 789.44 points， up by 2.0 percent from last week.

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