Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending April 24， China export box market performs flat overall， and transport demand is too weak to improve in the European and North America services. As a result， demand/supply condition is not improved， and the comprehensive index falls further. On April 24， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 926.83 points， slipping by 2.6% from one week ago; while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE declines by 2.7% against one week to 702.46 points.

In the Europe service， since European economy has not recovery from the weak condition， transport demand recovers slowly. Despite part of box liners beginning to carry out capacity control measures， capacity is still on the oversupply condition， and the average slot utilization rate hovers between 80%～85%. Most box liners start to reduce freight rate for the market share， causing spot rate declining， with some even around USD225 per TEU. On April 24， fright rate in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quote USD349 per TEU and 476 per TEU， falling by 12.5% and 11.9% from one week ago.

Recently， economy indices play a mixed story in U.S.. However， impacted by the large input of capacity， market condition is worrying. In the USWC service， the average slot utilization rate is below 90%， and spot rate tumbles further; while demand/supply condition is better in the USEC service， where the average slot utilization rate stands beyond 90%， with some even nearly 95%. Nevertheless， considering of the relatively high freight rate at present， most box liners have to decrease freight rate for the sake of market share， with freight rate in some services slipping by USD200 per FEU. On April 24， freight indices in the services from China to USWC and USEC quote 932.65 points and 1245.53 points， down by 2.5% and 3.2% against one week ago.

In the Australia/New Zealand service， cargo volume keeps unchanged almost. Since AADA members cease services in successions， capacity supply shrinks by 10% around， but still fails to change the oversupply condition. On April 24， freight rate in the Shanghai-Australia/New Zealand service （covering seaborne surcharges） quotes USD461 per TEU， falling by 9.1% against one week ago.

In the North America service， cargo volume has a slight improvement， but capacity supply also increases. As a result， unbalanced demand/supply condition is extended， and the average slot utilization rate in the East coast service stands only 80%. Spot rate go south further， with the lowest nearly USD300 per TEU; capacity in the West coast of this service increases slightly， where the average slot utilization hovers around 90%， and spot rate declines to be USD950 per TEU. On April 24， freight index in the China-South America service quotes 701.80 points， down by 2.7% from one week ago.

Cargo volume has an increase in the Japan service last week， where the average slot utilization rate stands around 60%， with spot rate stable. On April 24， freight index in the China-Japan service quotes 674.47 points， almost in line with that last week.

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

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BULLETIN

TOTAL EDITION： 930

5/5/2015

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