Weekly Commentary on China Containerized Transportation

Zhu Pengzhou

In the week ending Aug.29， China export container market sees uneven performance. As the end of the traditional peak season in ocean-going services， transport demand is weak to have further increase. On Aug.29， China （Containerized） Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 1106.69 points， almost in line with that last week； while Shanghai （Containerized） Freight Index （SCFI） issued by SSE quotes 1107.19 points， up by 2.9% from last week.

In the Europe service， the economy index in many Euro zone countries is weak， which results that the market performance is not as good as expected. The average slot utilization rate in this service hovers between 90%-95%. Most box liners decide to extend GRI plan that was scheduled to be implemented in early Sep. originally. Furthermore， part of box liners reduce freight rate positively with the aim to lift loading rate. On Aug.29， freight index in the China-Europe service quotes 1447.98 points， down by 1.2% from last week. In the Mediterranean service， cargo volume has not been improved in the West coast of Mediterranean service， where the average slot utilization rate is above 90%. Affected by the declining cargo volume， most carriers have to extend the time of implementing GRI， causing booking rate slip further. On Aug.29， freight index in the China-Mediterranean service quotes 1732.91 points.

In the America service， the consumer confidence in America reaches 92.4 points， the high fresh since 2007， which indicates that the local market has the strongest consumption willing， and brightens the future of seaway transport market. The average slot utilization rates both in the USWC and USEC services reach above 95%. GRI is carried out in early Sep. as scheduled， boosting the booking rate in spot market， but lower than announcement. On Aug.29， freight rate in the services from Shanghai to USWC and USEC services quotes USD2178 per FEU and USD4344 per FEU， up by 6.6% and 4.4% from one week ago respectively.

Transport demand expects to be stable in the Australia service， where the average slot utilization rate keeps at around 90%. On one hand， freight rate has declined to the lowest level after consecutive slip in Aug.； On the other hand， most box liners stop limiting capacity， and the oversupply of capacity will be worsened. Therefore， in order to hike the average freight rate， most box liners still decides to lift freight rate as planed. On Aug.29， freight rate in the Shanghai-Australia service （covering seaborne surcharges） quotes USD755 per TEU， rising by 15.1% from last week.

Cargo volume declined somehow in the South America service， where the average slot utilization rate keeps below 90%. Since transport demand has not been improved evidently， most carriers extend GRI plan from early Sep.. On Aug.29， freight index in the China-South America service quotes 863.88 points， almost in line with that last week.

Cargo volume increases slightly in Japan service， where the average slot utilization rate keeps at above 65%， with spot rate stable. On Aug.29， freight index in the China-Japan service quotes 607.16 points， almost in line with last week.

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

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 899

9/9/2014

CONTENT FOR THIS WEEK

Container Transport Market Has a Better Performance

than Last Year

Tanker Market Goes North

Bulk and Dry Transport Market on the Improvement Way

Shipbuilding Market Goes Better

Port Companies Have Uneven Performance

The Exclusive Interview of Song Hailiang， the Director of

Zhenhua Heavy Industry