Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending July 4， China export container market improved firmly overall. Transport demand in the ocean-going services rose further， with comprehensive index amounting. On July 4， China Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1097.12 points， while Shanghai Containerized Freight Index （SCFI） issued by SSE quoted 1129.42 points， up by 0.5% and 6.7% respectively from last week.

In the Europe service， as the gradually recovery of Euro Zone economy， many economic indices improved in the core countries， which boosted residents consuming demand. Furthermore， as the approach of traditional peak season in summer， transport demand kept rising recently. The average slot utilization rate in this service kept at around 95 percent， with some full-loaded. After some box carriers hiked rates last week， another part of box carriers lifted rate in the range of USD200-USD500 per TEU since early July. On July 4， the freight index in the China-Europe service rose by 3.4 percent week on week to 1466.43 points.

Transport demand was stable basically in the Mediterranean service. Spurred by the peak season in the West coast， the transport demand was nice somehow； while in the East coast， transport demand cooled down because of the Ramadan in the receipt region. The average slot utilization rate declined to be 90%-95%. On July 4， the freight index in the China-Europe service quoted 1759.61 points， up by 1.3 percent against last week.

In the North America service， as the recovery of U.S. economy， non-agricultural unemployment rate in the U.S. made a fresh low since 2008， which boosted the transport volume overall. It had not gotten ride of the impact of strike in the USWC service， where the average slot utilization rate slipped to be around 85 percent. The transport demand rose in the USEC service， where the average slot utilization rate mounted to be above 95 percent， with some even full-loaded. On July 4， the freight rate in the USWC and USEC services （covering seaborne surcharges） quoted USD1841 per FEU and USD3598 per FEU， up by 4.1 percent and 9.3 percent from last week respectively.

In the Persian Gulf/Red Sea service， cargo volume declined firmly， with part of carriers withdrawing some capacity， whilst， the demand/supply condition did not improve. The average slot utilization rate in this service kept around 80 percent， and box carriers failed to implement this round of freight rate increase plan， with rates in many services declined further. On July 4， the freight index in the China-Persian Gulf/Red Sea service quoted 1202.66 points， slipping by 5.0 percent week on week.

In the Australia service， transport demand did not improve. However， as AADA members strengthened capacity control measures， the oversupply of capacity was retrieved somehow， with the average slot utilization rate around 85 percent. Spot rate declined somehow. On July 4， the freight rate in the Shanghai-Australia service （covering seaborne surcharges） quoted USD646 per TEU， falling by 4.9 percent from last week.

Cargo volume bounced in the Japan service， where the average slot utilization rate kept above 60 percent， with spot rate tumbled. On July 4， the freight index in the China-Japan service quoted 616.75 points， down by 1.5 percent against last week.

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