Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending May 16， China export box market saw a stable demand overall， but as different strategies were complemented， spot rates had diversified performances in different services. On May 16， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1096.51 points， and Shanghai （Export） Containerized Freight Index （CCFI） issued by SSE quoted 1161.39 points， both keeping in line with that last week.

In the Europe service， the stable economy in the Euro Zone boosted the transport demand on a stable growth. In the week ending May 16， the average slot utilization rate in this service kept at above 90 percent， and the lowest spot rate fell to be USD 1100 per TEU. On May 16， the freight rate in the Shanghai-Europe service （covering seaborne surcharges） decreased by 8.1 percent to USD 1287 per TEU. Transport demand kept flourishing in the Mediterranean service， where the average slot utilization rate kept above 95 percent. The average freight rate in the Mediterranean service was more USD300 per TEU than that in the European service. On May 16， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） quoted USD1562 per TEU， falling slightly by 2.3 percent week on week.

In the North America service， transport demand kept increasing， and the average slot utilization rate kept at above 95 percent， with some even full-loaded. Most box liners began to carry out the GRI plan， which spurred up the booking rate. On May 16， the freight rate in the services from Shanghai to USWC and USEC quoted USD1987 per FEU and USD3424 per FEU， up by 4.2 percent and 3.3 percent respectively.

In the Persian Gulf/Red Sea service， cargo volume kept on the relatively high level， since the receipt region would enter the Ramadan in end June. Since the different attitude on the high level of fright rate， the freight rate only increase by USD 50 per TEU in average in the GRI plan， which was less than the announcement. On May 16， the freight index in the China-Persian Gulf/Red Sea quoted 1243.47 points， up by 11.4 percent against last week， or up by 34.3 percent month on month.

Transport demand kept flat in the Australia service， and vessel capacity control measures was failed. Based on the lower freight rate presently， part of box liner announced the BRI plan in advance. Spot rate declined further in general. On May 16， the freight index in the China-Australia service quoted 854.99 points， down by 0.8 percent against last week.endprint

In the East Coast of South America service， transport demand did not increase remarkably， which leaved the supply/demand condition unchanged. Small number of box liners carried out the GRI plan as scheduled in order to text the market reaction. Furthermore， the average slot utilization rate in this service stood at around 80 percent， which stimulated box liners to strive for market shares， leading the slip of booking freight rate in the spot market. On May 16， the freight rate in the Shanghai to South America service （covering seaborne surcharges） quoted USD 647 per TEU， declining by 4.4 percent from last week. The lowest spot rate this week fell to around USD 450 per TEU.

In the Japan service， although cargo volume increased somehow， the average slot utilization rate kept only at around 60 percent， with spot rate slipping. On May 16， the freight index in China-Japan service fell by 5.7 percent to 711.55 points.

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

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 884

27/5/2014

CONTENT FOR THIS WEEK

Who Will Dominate the China-Japan Service？

The Oversupply of Capacity in the China-Japan Service

Is Worsening

Four Alliances Begin a Rate Race in China-Japan Service

600 Million Throughput Gap Will Exist in Indian Ports in

2020

HSH Bank Performed Well in 2013

Who Will Be the Next Target of Hapag-Lloyd？endprint