Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending April 30， China export market saw transport demand went on different trends. On April 30， China （export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1066.25 points， almost in line with last week； Meanwhile， regarding to the increasing transport demand and shipment rush ahead of Labours Day in China， most box carriers hiked rate in the Europe， Mediterranean and Persian Gulf services， which boosted freight rate. On April 30， Shanghai （export） Containerized Freight Index （SCFI） issued by SSE rose by 7.1 percent from last week to 1143.87 points.

In the Europe service， the rising economy index in the Euro Zone boosted regional consumer ability， leading transport demand increasing stably. This week， the average slot utilization rate kept at above 90 percent， with most even full-loaded. Most box liners implemented FRI plan from May 1， and made it fruitful. On April 30， the freight rate in the services from Shanghai to Europe and Mediterranean （covering seaborne surcharges） quoted USD1305 per TEU and USD 1458 per TEU， surging by 20.4 percent and 17.2 percent from last week. However， small part of box liners put off the freight rate increase plan， leading to diversified trend of spot rate， with the lowest one around USD950 per TEU.

In the North America service， transport demand kept healthy development， where the average slot utilization rate in the week ending April 30 reached to be 90 percent above. Nevertheless， service operators still suffered from the expansion of vessel capacity as big vessels put into service gradually. Furthermore， during the right season for negotiation， freight rate increase plan in mid. April had gain limited efficiency， so box carriers decided to fix freight rate for attracting more cargo volume. On April 30， freight index in the services from China to USWC and USEC services quoted 983.67 points and 1226.38 points， down by 0.3 percent and 1.7 percent from last week respectively.

In the Persian Gulf service， transport demand kept rising because of the Ramadan in the destination region. Owing to the weak freight rate for a long term， some box liners began to excel service deployment， plus some liners adjusted shipping service during the Holiday， finally， ship space in the market was more tightened. According to the present relatively good condition， most liners implemented GRI plan， which spurred spot booking rate. On April 30， freight rate in the Shanghai-Persian Gulf service （covering seaborne surcharges） quoted USD1227 per TEU， jumping by 21.8 percent from one week ago.endprint

In the South America service， although Brazil government launched a series of financial and fiscal measures to improve weak economy growth， the effect was not remarkable， with transport demand not satisfying. As a result， vessel capacity was excess seriously in the services， and spot rate was stressed on the downward trend. On April 30， the freight rate in the China-South America service （covering seaborne surcharges） quoted USD736 per TEU， down by 8.5 percent against last week.

In the Australia service， cargo volume performed flat. AADA members continued to control capacity， but failed to change the market reversely. In the week ending April 30， the average slot utilization rate was around 80 percent. Aiming to guarantee the loading rate， box carriers were forced to reduce freight rate for more cargo volume. On April 30， the freight index in the Shanghai-Australia service quoted 872.69 points， down by 1.3 percent from one week ago.

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

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TOTAL EDITION： 882

13/5/2014

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