Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending May 30， China export box market was stable overall， but capacity demand/supply condition was left unimproved， which forced freight rate downward. The comprehensive index didnt slip remarkably， thanks to the implementation of freight rate increase plan in the Mediterranean service. On May 30， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1103.56 points， and Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE quoted 1108.64 points， both keeping in line with that last week.

In the Europe service， transport demand kept on the stable growth with the gradually recovery of European economy， where the average slot utilization rate stood at beyond 95 percent. On May 30， the freight rate in the Shanghai-Europe service （covering seaborne surcharges） quoted USD 1155 per TEU， falling by 2.8 percent week on week. In the Mediterranean service， more than one services was full-loaded as the near of Ramadan. Considering that ship spaces would be shortened again， most box carriers began to carry out GRI； while as the present freight rate was on the relatively high level， the freight rate was not increased as high as announcement. On May 30， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） quoted USD 1611 per TEU， rising by 6.8 percent from last week. At present， the average fright rate has difference beyond USD450 per TEU between that in Europe service and that in the Mediterranean service because of the good performance of the latter one.

In the North America service， transport demand kept firm. According to the latest data from US Commerce Department， GDP growth in Q1 was -1.0 percent， which hit the market confidence. Simultaneously， as the expansion of capacity in this service， freight rate appeared on the downward trend， with spot rate fluctuating. On May 30， the freight index in the services from China to USWC and USEC services quoted 974.08 points and 1237.79 points， both almost unchanged from one week ago.

In the South America service， Brazil， one of the main economies， saw its central bank had been controlled the inflation for 11 months， but it still needed some time to see the effectiveness， therefore， transport demand in the East Coast service had not been changed evidently. Furthermore， flat freight rate for a long term generated pressure on the box carriers， so they had different attitude towards the strategy： one individual carried out GRI， but most box liners did not do it because of the flat market， while another part of carriers reduced freight rate to hike loading rate. On May 30， the freight index in the China-South America service fell by 0.7 percent from last week to 704.96 points.endprint

In the Persian Gulf service， transport demand increased because of the Ramadan， where the average slot utilization rate kept at above 90 percent， but the tightened supply of ship space had been retrieved somehow. In addition， since different opinions on the market future trend， spot rate went unevenly. On May 30， the freight rate in the Shanghai- Persian Gulf service （covering seaborne surcharges） quoted USD1158 per TEU， in line with that one week ago.

The cargo volume shrank in the Japan service， where the average slot utilization rate hovered at around 60 percent， with spot rate slipping. On May 30， the freight index in the China-Japan service decreased by 3.0 percent to 685.22 points.

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

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 886

10/6/2014

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