Weekly Commentary on China Containerized Transportation

Liu Zijia

In the week ending April 18， China Export Container market saw cargo volume raise overall， which supported freight rate in many services on the relatively high level.

However， box liners were negative about the future trend of demand/supply condition， and spot rate stressed to be lowered potentially. Consequently， the comprehensive index was in correction. On April 18， China Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1070.97 points， almost in line with last week； while Shanghai Containerized Freight Index （SCFI） issued by SSE quoted 1047.97 points， down by 1.8 percent from last week.

Transport demand kept on the stable growth in the Europe service. In the week ending April 18， the average slot utilization rate sustained at above 90 percent. In the Mediterranean service， because of the Ramadan， the average slot utilization rate climbed up to be around 95 percent.

However， because the increasing cargo volume is good for box carriers to consumer excess capacity， carriers implemented freight rate strategy to attract more cargo volume， as a result， spot rate declined. On April 18， the freight rate in the Shanghai-Europe and Mediterranean services quoted USD1077 per TEU and USD1182 per TEU， falling by 6.8 percent and 6.4 percent from last week respectively.

In the North America service， U.S. economy has improved since March， and residents consumer has increased， which has spurred the transport demand. In the week ending April 18， the average slot utilization rate in the USWC and USEC services reached to be above 95 percent， with most services full-loaded. The tightened vessel space stimulated part box carriers to increase freight rate， but another part of carriers lowered the freight rate because of the uncertainty economy. On April 18， the freight rate in the services from Shanghai to USWC and USEC services （covering seaborne surcharges） quoted USD1923 per FEU and USD3328 per FEU， down by 2.7 percent and 1.4 percent from last week respectively.

In the Persian Gulf/Red Sea service， cargo volume demand began to increase because of the Ramadan， which boosted the average slot utilization rate at beyond 90 percent. On April 18， the freight index in the China-Persian Gulf/Red Sea quoted 925.69 points， up by 9.3 percent week on week. However， most box carriers reduced freight rate by USD50-USD100 per TEU from last week， and spot rate declined to be around USD700 per TEU.

In the Australia service， cargo volume trapped on flat condition. Although AADA members carried on capacity limit plan， the average slot utilization rate hovered at around 85 percent. Regarding to the flat market， carriers had to further reduce freight rate to gain more market share. On April 18， freight rate in the Shanghai-Australia service （covering seaborne surcharges） quoted USD680 per TEU， falling by 10.5 percent week on week.

In the Japan service， cargo volume kept stable， where the average slot utilization rate sustained at above 75 percent， with spot rate fluctuating. On April 18， freight index in the China-Japan service quoted 796.98 points， declining by 3.4 percent week on week.

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