Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending Feb.28， China export box market was flat in general， with most services on the recovery period. Impacted by the relaxation of capacity by some box carriers， the market declined further， followed by composite index. On Feb.28， China （Containerized） Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1115.23 points， down by 1.7 percent against last week， while Shanghai （Containerized） Freight Index （SCFI） issued by SSE fell by 5.4 percent to 981.06 points.

The Europe service still trapped on the slack season in the week ending Feb.28. Part of carriers kept on limiting capacity， but demand/supply condition still failed to be improved remarkably. Cargo volume rose on the stable trend in the North China and East China， and the average slot utilization rate kept at 80-85 percent. cargo volume rose slightly and the loading rate below 80 percent in the South China service. Oversupply was unimproved， and spot rate kept on declining largely， leading to the average freight rate reduced by USD400 per TEU this week. On Feb.28， the freight index in the China-Europe service quoted 1540.77 points， down by 3.4 percent week on week. Meanwhile， cargo volume had a slower increase in the Mediterranean service than that in the Europe service， and the unbalanced supply/demand condition was deteriorated ， with the average slot utilization rate falling to be 75-80 percent. Spot rate slipped further， and the average freight rate in the West Mediterranean service declined to be around USD1100 per TEU， with that in the East Mediterranean service less than USD1300 per TEU. On Feb.28， the freight index in the China-Mediterranean service fell by 5.9 percent week-on-week to 1628.77 points， or falling by 8.9 percent month on month.

In the North America service， residents consumer demand rose as the stable recovery of U.S. economy. Although the North America service was on the traditional slack season at present， the average slot utilization rate in the USWC service could kept at around 85 percent， while the average slot utilization rate in the USEC service inched up to be 90 percent about. Spot rate tumbled at stable speed. On Feb.28， the freight rate in the USWC and USEC services （covering seaborne surcharges） quoted USD1852 per FEU and USD3256 per FEU， falling by 4.8 percent and 1.2 percent from one week ago respectively.

In the Australia/New Zealand service， following AADA members kept on carrying out cease services in succession， some nonmembers also limit capacity， but still failed to improve the demand/supply condition completely. Consequently， the average slot utilization rate in this service sustained at around 80 percent， and box liners reduced freight rate to lure cargo volume， with some declining to be USD500 per TEU. On Feb.28， the freight rate in the Australia/New Zealand service （covering seaborne surcharges） quoted USD646 per TEU， falling by 6.6 percent week on week.

In the South America service， dragged by dual negative factors that economy grew slowly and currency depreciated in the emerging market， the general market performed weak. The average slot utilization rate below 70 percent， and spot rate diving. On Feb.28， the freight rate in the South America service （covering seaborne surcharges） quoted USD898 per TEU， down by 9.4 percent against last week.

Market got well in the Japan service， where the average slot utilization rate leaving Shanghai Port rose to be around 75 percent， with spot rate stable almost. On Feb. 28， the freight index in the Japan service quoted 820.53 points.

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