Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending April 4， China export container market saw demand/supply demand retrieved somehow， where most loading rate rose， boosting freight rate. On April 4， China （Containerized） Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1069.66 points， up by 1.8 percent week on week； while Shanghai （Containerized） Freight Index issued by SSE quoted 1064.87 points， almost in line with that last week.

In the Europe service， German， as the main leader on the Europe economy， saw the improvement on the unemployment rate and consumer confidence index， which boosted the transport demand stable. In the week ending April 4， the average slot utilization rate approached to be above 90 percent. On April 4， the freight rate in the Shanghai-Europe service （covering seaborne surcharges） quoted USD1242 per TEU， up by 2.3 percent from last week. In the Mediterranean service， countries like Spain， Italy， has not gotten ride of debt crisis impaction， leaving economy on the looming trend. The average slot utilization rate kept in line with that last week， with booking rate in the spot market fluctuating. On April 4， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） tumbled by 3.9 percent week on week to USD1347 per TEU.

In the North America service， as the stable growth of transport demand in the U.S. market， demand/supply condition was improved， where the average slot utilization rate kept at above 90 percent. On April 4， the freight indices in the services from China to USWC and USEC quoted 1001.04 points and 1193.52 points， both unchanged from one week ago.

Transport demand in the Australia/New Zealand service sustained stable overall， where the rising fright rate spurred shipment rush and activated capacity demand， and the average slot utilization rate decline to below 80 percent. In the spot market， freight rate declined further this week for the lack of support from market. On April 4， the freight rate in the Shanghai-Australia/New Zealand service （covering seaborne surcharges） fell by 6.5 percent week on week to USD821 per TEU.

Transport demand in the Persian Gulf service kept stable， where part carriers carried out temporary measures to cease services， with capacity supply on the whole market limited. In the week ending April 4， the average slot utilization rate hovered at above 80 percent. However， as carriers held different attitude towards the market， their strategy on the freight rate rise started to be differentiated. At present， the highest booking rate in the spot market surplus USD900 per TEU， and the lowest around USD550 per TEU. On April 4， the freight rate in the Shanghai-Persian Gulf service （covering seaborne surcharges） quoted USD770 per TEU， up by 1.0 percent slightly against one week ago.

In the South America service， the main destination Brazil has hiked rate for the ninth time on April 2， intending to restrain inflation domestically. Since February late， the freight rate in this service has declined from USD1000 per TEU to USD600 per TEU about. As a result， carriers decided to hike freight rate last week， with some following this week. On April 4， the freight index in the China-South America service surged by 15.8 percent to 821.71 points.

Cargo volume in the Japan service kept stable， where the average slot utilization rate kept at above 70 percent， with spot rate stable. On April 4， the freight index in the China-Japan service quoted 837.50 points， down by 1.7 percent week on week.

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