Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending Feb.14， cargo volume was on the relatively low level overall， and the market should need some time to recover， which were impacted by the slow return to work. However， box carriers made the slot utilization rate in some services keep on a stable level by means of stocking cargo volume in advance. On Feb.14， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quoted 1170.59 points， almost unchanged from last week， while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE， dipped by 6.0 percent to 1094.83 points.

In the Europe and Mediterranean services， although export enterprises and logistics firms were on the process of slow recovery， the slot utilization rate in more than one services reached to above 80 percent in the week ending Feb.14， which fixed the freight rate after the Spring Festival. On Feb.14， freight rates in the services from China to Europe and Mediterranean quoted 1686.37 points and 1796.90 points， both almost unchanged from last week. However， the relatively satisfying loading rate this week was partly benefited by the box carriers measurements of stocking cargo volume and the falling supply of slots， but market participants still worried about the unbalanced supply/demand condition after the holiday. As a result， booking rate this week declined in the region from USD150 per TEU to USD 200 per TEU.

Cargo volume recovered in the North America service， where the average slot utilization rate kept around 80 percent， and the market fundamental gave a firm support on spot rates. On Feb.14， the freight rate in the services from Shanghai to USWC and USEC services （covering seaborne surcharges） quoted USD 2041 per FEU and USD 3363 per FEU， declined slightly by 3.2 percent and 1.8 percent against one week ago.

In the Australia service， according to the public figures by the Australia Bureau of Statistics on Feb.13， the unemployment rate in the Australia rose to 6.0 percent， the highest level since from July， 2003. The shipment rush before the holiday consumed partial cargo volume after the holiday， and the average slot utilization rate hovered at about 60 percent this week， although AADA members still kept on ceasing services in succession. On Feb.14， the freight rate in the China-Australia service （covering seaborne surcharges） quoted USD748 per TEU， diving by 9.6 percent from last week.

The transport market and cargo volume in the Persian Gulf and Red Sea services was flat， where the average slot utilization rate was around 50 percent. the diving loading rate drag down the current freight rate further. On Feb.14， the freight index in the China-Persian Gulf/Red Sea service slipped by 1.4 percent from last week to 815.12 points， nearly the lowest level in the history.endprint

In the South America service， Brazilian Real exchange declined to the lowest level in Jan. since Sep.， 2013， and Argentina Peso against U.S. dollar dived to the lowest level since 12 years. Impacted by the weak market fundamental and insufficient cargo volume， many box carriers followed to reduce freight rate. On Feb.14， the freight rate in the Shanghai-South America service （covering seaborne surcharges） quoted USD1083 per TEU， slipping by 17.6 percent against last week.

In the Japan service， cargo volume decreased evidently， and the average slot utilization rate fell to be less than 40 percent， with spot rate diving somehow. On Feb.14， the freight index in China-Japan service quoted 836.24 points， down by 0.8 percent from last week.

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

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25/2/2014

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