Weekly Commentary on China Containerized Transportation

Zhu Pengzhou

In the week ending Aug.15， China export container market keeps firm overall， but affected by the large number of mega vessels delivery and putting into operation， the oversupply of capacity in many services is worsened， forcing spot rate downside and comprehensive index declining. On Aug.15， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 1109.96 points， down by 0.2% against last week； while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE falls by 4.3% from last week to 1120.82 points.

Cargo volume keeps stable in the Europe service， where the average slot utilization rate sustains between 90%-95%. However， affected by the slip of economy in Euro zone， box liners change their strategy on freight rate. Furthermore， affected by the input of extra capacity， box liners are forced to reduce rate to guarantee loading rate. Booking rate in spot market declines evidently， with the lowest at around USD1000 per TEU. On Aug.15， the freight rate in the Shanghai-Europe service （covering seaborne surcharges） quotes USD1198 per TEU， diving by 10.7% against last week. In the Mediterranean service， the average slot utilization rate keeps at above 95%. On Aug.15， the freight rate in the Shanghai-Mediterranean service （covering seaborne surcharges） quotes USD1524 per TEU， falling by 5.5% from last week.

In the North America service， the recovery of U.S. economy encourages consumption demand， and hikes the whole demand of transportation. In terms of regions， in the USWC service， part cargo owners are not willing to make shipment because of the negotiation between labors and port， which makes the whole average slot utilization rate hovering at around 90%. In a contrast， the cargo volume in the USEC service is sufficient relatively， which makes the vessel space tightened， and the average slot utilization rate at above 90%， even more than one services full-loaded. According to the statistics by Alphaliner， the freight rate of Trans-Pacific service this month has an increase of 4.8% month on month， but better market fundamental resists freight rate from large slip. On Aug.15， the freight index in the services from China to USWC and USEC services quote 988.31points and 1317.42 points， up by 1.4% and 0.5% respectively from last week.

In the South America service， impacted by the looming economy， cargo volume performs ups and downs， with the average slot utilization rate sliding to be behind 90%. At present， the fright rate stands on the relatively high point this year after being increased for several consecutive weeks， therefore， most box liners reduce freight rate to market more vessel space with the purpose to sustain the whole income. As a result， spot rate in this service falls hugely. On Aug.15， the spot rate in the Shanghai-South America service （covering seaborne surcharges） quotes USD1609 per TEU， falling by 7.6% from one week ago.

In the Australia/New Zealand service， cargo volume keeps weak. Since AADA members have not ceased services in successions， demand/supply margin is widened， and spot rate decreases somehow. On Aug.15， freight index in the China- Australia/New Zealand service quotes 822.17 points， down by 0.3% from last week.

Cargo volume in the Japan service is weak this week， where the average slot utilization rate leaving from Shanghai Port keeps at around 60%， with spot rate sliding. On Aug.15， freight index in the China-Japan service quotes 596.87 points， down by 3.3% against one week ago.

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