Weekly Commentary on China Containerized Transportation

Liu Zijia

In the week ending July 18， China export box market goes on the upward trend overall， but main services including American and European ones expands capacities remarkably， which drags down the comprehensive indices. On July 18， the China （Export） Containerized Freight Index （CCFI） issued by the Shanghai Shipping Exchange quoted 1088.14 points， down by 0.4 percent against last week； while Shanghai （Export） Containerized Freight Index （SCFI） issued by the Shanghai Shipping Exchange declines by 1.8 percent week-on-week to 1088.14 points.

The transport demand kept increasing in the Europe service， despite of the approach of the shipment peak season in the summer. The average slot utilization rate stands in the range of 90% -95%. As a result， most box liners reduced freight rate further， with the lowest only USD1050 per TEU. On July 18， the freight rate in the service from Shanghai to base ports of Europe （covering seaborne surcharges） quotes USD1230 per TEU， declining by 5.5 percent from last week. In the Mediterranean service， the average slot utilization rate keeps above 90 percent， and spot rate slipped further， with some even by USD200 per TEU. On July 18， the freight rate in the service from Shanghai to Mediterranean base ports （covering seaborne surcharges） quotes USD1486 per TEU， down by 5.2 percent from last month.

As the recovery of U.S. economy， the transport demand in the North America service kept increasing. In the USWC service， the transport demand stops declining and goes on the stable trend. Furthermore， transport demand in the North USWC service kept warm， and cargo volume increased firmly overall， making the average slot utilization rate around 85%-90%， and spot rate declining slightly.

In the USEC service， transport demand grows fast during the peak season， where the average slot utilization rate stands above 95 percent above， with more services full-loaded. Spot rate in the USEC service kept stable. On July 18， the freight index in the services from China to USWC and USEC services quote 935.58 points and 1248.16 points， both almost unchanged from last month. It is said that， on the ground of the growing transport demand in the market recently， most box liners intend to lift freight rate again in early Aug.， the extend will be depended on the post market.

The cargo volume keeps flat in the Persian Gulf/Red Sea service during the traditional season. In the Persian Gulf service， the demand/supply condition has been improved， and the average slot utilization rate amounts around 90 percent. In the Red Sea service， capacity has not been limited， where the average slot utilization rate is below 70 percent， with spot rate declining further. On July 18， the freight index in the China- Persian Gulf/Red Sea service quotes 1181.41 points， up b 1.0 percent from last month.

In the South America service， transport demand performs on the increase trend， and most liners controls capacity stiffly， which leading to the average slot utilization rate above 90 percent， with some even approaching 95 percent. Spot rate increases as that in last week. On July 18， the freight rate in the Shanghai-South America service （covering seaborne surcharges） quotes USD1413 per TEU， rising 7.5 percent against last month.

Cargo volume in the Japan service keeps stable， where the average slot utilization rate hovers around 60 percent， with spot rate flat further. On July 18， the freight index in the China-Japan service falls by 5.3 percent to 603.67 points.

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