Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending Jan.24， China export container market kept stable because of shipment rush before the Spring Festival， and comprehensive index inched up. On Jan.24， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1148.37 points， up by 1.7 percent week on week. Booking rate in more than one services declined because some box carriers stocked cargo volume for slack season after the holiday. On Jan.24， Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE， the mirror of the spot market， fell by 1.2 percent week on week to 1173.99 points.

In the Europe and Mediterranean services， cargo volume sustained on the upward trend in the week ending Jan.24， but at the slower speed somehow. On one hand， with the approach of the Spring Festival， most cargo was shipped in the first half of Jan.； on the other hand， transport demand increased slowly as domestic manufacturing companies gave a vocation gradually. Some box liners began to stock cargo and reduced spot booking rate， with some decreasing from USD50 per TEU to USD200 per TEU. On Jan.24， the freight rate in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quoted USD1598 per TEU and USD1634 per TEU， down by 2.6 percent and 2.2 percent from one week ago respectively.

In the North America service， shipment rush appeared before the holiday traditionally， and box carriers limited capacity seriously， which boosted balanced demand/supply condition. The average slot utilization rate kept beyond 95 percent in the USWC service， with some even full-loaded. In the USEC service， capacity was less relatively， and slot supply was tighter. The spot rate in the USWC service rose by USD400 per FEU， and that in the USEC service jumped by USD450 per FEU around. On Jan.24， the freight index in the services from China to USWC and USEC services quoted 999.25 points and 1214.62 points， up by 1.8 percent and 1.2 percent from last week respectively.

Cargo volume increased marginally before the Spring Festival in the Australia service. the oversupply of capacity was not improved reversely， and the average slot utilization rate kept at around 85 percent. Some carriers reduced rate continuously. On Jan.24， the freight index in the China-Australia service quoted 928.48 points， almost unchanged from last week.

In the Persian Gulf service， shipment rush did not appear， and transport demand was flat overall. In the spot market， rate kept on the declining trend as that in early Jan. with some approaching USD450 per TEU. On Jan.24， the freight rate in the Shanghai- Persian Gulf service （covering seaborne surcharges） quoted USD557 per TEU， having a week-on-week decrease of 1.4 percent.

The market went downward in the South America service. In the South coast of this service， transport demand inched up， and the average slot utilization rate in the South coast service hovered at around 85 percent. In the West coast of this service， cargo volume slipped slightly， and the average slot utilization rate fell to be around 90 percent， with spot rate tumbling by SD50 per TEU. On Jan.24， the freight index in the China- South America service quoted 913.79 points， dipping by 2.5 percent against last week.

In the Japan service， cargo volume rose evidently， where the average slot utilization rate climed up to be above 80 percent， with spot rate rebounding. On Jan.24， the freight index in the China-Japan service quoted 810.32 points， up by 2.6 percent from one week ago.

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