Weekly Commentary on China Containerized Transportation

Zhu Pengzhou

In the week ending July 25， China export box market sees transport demand stable overall. However， box liners in many services will collect GRI in early August， leading to unbalanced demand/supply condition and different performances of freight rate， with comprehensive index shaking. On July 25， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1060.75 points， down by 1.8 percent week on week.

In the Europe service， good market performance boosts nice transport demand， but affected by the expansion of capacity， the demand/supply condition is not improved.

In the week ending July 25， the average slot utilization rate hovers in the region of 90%-95%.

On July 25， the freight rate in the Shanghai-Europe service （covering seaborne surcharges） quotes USD1203 per TEU， down by 2.2 percent from last week.

In the Mediterranean service， transport demand keeps stable， with the average slot utilization rate between 90%-95%.

On July 25， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） quotes USD1459 per TEU， down by 1.8% against last week.

In the America service， the negotiation between workers and authority is ongoing in the Southwest ports. The average slot utilization rate in the USWC service keeps at around 90%.

The USWC service sustains stable， where the average slot utilization rate hovers at 95%， with spot rate being supported. On July 25， the freight index in the services from China to USWC quotes 934.13 points， almost unchanged from last week， while the freight index in the USEC rose by 2.4% to 1278.42 points.

In the Persian Gulf service， since the Ramadan is scheduled to be end in late this month in the receipt region， cargo volume experiences uprising.

Simultaneously， in order to avoid the additional cost caused by freight rate increase in early August， box liners choose to booking rate and shipment ahead.

As a result， vessel space in the market is tightened， and the average slot utilization rate amounts to be above 90 percent， with some services even full loaded. Spot rate rise slightly this week.

On July 25， the freight index in the China-Persian Gulf service quotes 1209.62 points， up by 2.4 percent week on week.

Transport demand keeps increasing in the South America service， where the average slot utilization rate is around 90 percent.

After the freight rate increasing for two consecutive weeks， most box liners reduce freight rate， aiming to insure the effectiveness of GRI in early August， and to lock customers.

On July 25， the freight rate in the Shanghai-South America service （covering seaborne surcharges） quoted USD1332 per TEU， falling by 5.7% from last week.

Cargo volume is stable in the Japan service， where the average slot utilization rate keeps around 60%， with spot rate stable.

On July 25， the freight index in the China-Japan service quotes 603.78 points， almost in line with that last week.

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

（July 21， 2014 - July 25， 2014）