Weekly Commentary on China Containerized Transportation

Liu Zijia

In the week ending April 25， China export market was stable overall， and transport demand increased in ocean-going services like Europe， Mediterranean and Persian Gulf， which spurred freight rate on the upward trend. On April 25， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1068.89 points， almost in line with that last week； while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE quoted 1068.18 points， up by 1.9 percent against one week ago.

In the Europe service， as the gradually recovery of Euro Zone economy， residents consumption was spurred. According to the report by the European Commission， the consumption confidence in the Euro Zone rose by 0.6 percent month on month in April. Encouraged by positive factor， demand/supply condition was improved， and the average slot utilization rate kept above 90 percent， with some even full-loaded. On April 25， freight rate in Shanghai-Europe service （covering seaborne surcharges） quoted USD1084 per TEU， slightly up by 0.6 percent from last week. In the Mediterranean service， transport demand increased with a more remarkable sign than that in the European service. In the West coast of Mediterranean service， average slot utilization rate hovered between 90 percent and 95 percent， with some even up to USD1200 per TEU around； while in the East Coast of Mediterranean service， affected by the Ramadan， cargo volume kept increasing， and spot rate was supported to be around USD1350 per TEU. On April 25， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） quoted USD1244 per TEU， rising by 5.2 percent week on week.

In the North America service， benefited by the stable recovery of U.S. economy， many indices， like non-agricultural employment and residents consumption confidence had a good performance， which boosted the transport demand in this service. In terms of capacity， encouraged by the stable increasing volume， box liners added capacity in this service. The increasing expansion of capacity invaded the positive impact of demand rising， and the average slot utilization rate kept about 90 percent， with spot rate stable. On April 25， the freight index in the services from China to USWC and USEC services quoted 986.61and 1205.52points， almost unchanged from that last week.

In the Persian Gulf service， as the approach of Ramadan in receipt region， transport demand kept rising. Benefited by most box carriers carrying on the capacity limit plan， the average slot utilization rate sustained at around 90 percent. Box liners hiked spot rate largely. On April 25， the freight rate in the Shanghai-Persian Gulf service （covering seaborne surcharges） quoted USD1007 per TEU， jumping by 15.1 percent week on week.

In the South America service， the overall market was flat. In the East Coast of this service， despite capacity limit measures， the oversupply of capacity still existed， and the average slot utilization rate was less than 80 percent. Spot rate decreased by USD50-USD75 per TEU， and some even quoted less than USD700 per TEU. In the West Coast of this service， cargo volume had a better performance than that in the East Coast； however， since box carriers input excess capacity， the demand/supply condition was improved in a limit level， where spot rate kept decreased from mid April， with the range of about USD50 per TEU. On April 25， the freight index in the China-South America service fell by 2.1 percent week on week to 727.34 points.

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