Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending June 19， China export box market keeps firm in general. The increasing capacity makes the oversupply condition unimproved， causing freight rate in many trades slip furthe. On June 19， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 825.97 points， down by 3.0% from last week; while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE has a week-on-week decrease of 4.2% to 556.72 points.

Transport demand keeps stable in the Europe trade， where box carriers carry out ceasing service temporary but have no remarkable improvement for the unbalanced demand/supply condition， with the average slot utilization rates in the Europe and Mediterranean services around 85% and 90%. On June 19， freight rates in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quote USD205/TEU and USD274/TEU， tumbling by 15.6% and 12.2% against one week ago respectively.

In the North America service， cargo volume is stable， tonnage keep fast increasing， and the unbalanced demand/supply condition worsens. As the weak loading rate， market shakes more frequently， and spot rate falls further. On June 19， freight rate in the Shanghai to USWC service （covering seaborne surcharges） quotes USD1268/FEU， sliding by 5.4% from one week ago， and decreasing by26.3% from one year ago. Freight rate has a fast slip in the USWC service， which makes a negative effect on the cargo volume in the USEC service. On June 19， freight rate in the Shanghai-USEC service （covering seaborne surcharges） quotes USD2904/FEU， down by 3.3% against one week ago， and decreasing by 9.6% comparing with that one year ago.

In the Persian Gulf/Red Sea service， the traditional Ramadan fails to boost transport volume remarkably. The average slot utilization rate at the Shanghai Port keeps above 85%. On June 19， freight index in the China- Persian Gulf/Red Sea service falls by 2.4% from one week ago to 833.98 points.

Transport demand keeps flat in the South America service. Simultaneously， capacity has not been limited effectively， leaved the unbalanced demand/supply condition unimproved. Both the average slot utilization rates in the east coast and west coast of this service hover at around 85%. As for the weak transport demand， box liners have to extend freight rate increase plan again， with spot rate declining. On June 19， freight rate in the Shanghai-South America service （covering seaborne surcharges） tumbles by 8.4% from one week ago to USD340 /TEU.

Cargo volume keeps stable in the Japan service， where the average slot utilization rate is below 60%， with spot rate tumbling slightly. On June 19， freight index in the China-Japan service quotes 626.16 points， up by 1.1% from one week ago.

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

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TOTAL EDITION： 938

30/6/2015

CONTENT FOR THIS WEEK

?Ports in Hebei Province Boosts the Coordinated

Development of Beijing-Tianjin-Hebei

?Zhoushan Port Files to Go Public again

?Chinese Shipping Companies Create More

Financing Channels during Tough Time

?China Scrap-and-Build Subsidies Policy Is

Extended till 2017

?Shipping Firms Are Suffering Loss Operation in

the Asia-Europe Tradeendprint