Weekly Commentary on China Containerized Transportation

Xu Qiao

Boosted by the increasing transport demand before China New Year， China export box market saw stable demand overall. Meanwhile， as box carriers kept on limiting capacity， idle capacity increased largely.

As statistics from Aphaliner， up to Dec.30， 2013， the idle capacity accounted for 4.5 percent in the global container total volume. China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1115.55 points， up by 1.6 percent week on week， while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE quoted 1167.53 points， almost in line with last week.

In the Europe service， transport demand got momentum from the Spring Festival， which boosted more than one services full loaded.

Box liners lifted rates， but at an uneven space. On Jan.10， the freight rate in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quoted USD1713 per TEU and USD1745 per TEU， down by 2.9 percent and 2.6 percent week on week respectively.

In the North America service， cargo volume was sufficient prior to the Spring Festival， which favored the space utilization rate and spot rate.

On Jan.10， the freight rate in the USWC and USEC services （covering seaborne surcharges） quoted USD1866 per FEU and USD3217 per FEU， rising by 2.8 percent and 2.6 percent against last week respectively.

In the Australia service， as the capacity reduce plan carried out continuously by AADA， plus the large cargo volume before this round of holiday， the average slot utilization rate this week sustained at around 90 percent， with spot rate stable. On Jan.10， the freight rate in the Shanghai-Australia service （covering seaborne surcharges） was reported USD908 per TEU， almost unchanged from one week ago.

In the South America service， according to insiders， some carriers increased capacity in this service. The transport demand in the east coast of South America service was flat， but most carriers reduced rate to compete for more cargo source.

As a result， the average slot utilization rate in the service from Shanghai to the east coast of South America service was around 90 percent， spot rate turned to decline from rising. On Jan.10， the freight rate in the Shanghai-South America service （covering seaborne surcharges） tumbled by 6.8 percent from last week to USD1537 per TEU.

Cargo volume dived in the Persian Gulf service， where the average slot utilization rate hovered at around 80 percent. Carriers were not confident on the market， with the general booking rate below USD600 per TEU. On Jan.10， the freight index in the China-Persian Gulf service quoted 839.28 points， falling by 3.9 percent from last week.

Cargo volume was stable in the Japan service， where the average slot utilization rate leaving Shanghai Port was below 70 percent， with spot rate declining overall.

On Jan.10， the freight index in the China-Japan service quoted 773.64 points， down by 2.6 percent from one week ago.

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

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 867

21/1/2014

CONTENT FOR THIS WEEK

?Shanghai Port Anji International Logistics Park Is Set up

?Iran Bows to Insurance Ban

?Shanghai Waigaoqiao Shipbuilding Has a Full Cooperation

with Zhoushan Changhong International Shipyard

?Yangtze River Shipping System Combines Shipping， Port and

Logistics

?Compound Sea-Route in Tianjin Port Has Not Been

Implemented Completely