Weekly Commentary on China Containerized Transportation

Liu Zijia

In the week ending Sep.5， China export box market is stable overall， but services perform uneven. On Sep.5， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 1121.48 points， up by 1.3% from last week； while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE rises by 2.4% against last week to 1133.85 points.

In the Europe service， the consumption confidence is weak， causing transport demand performing unsatisfactorily， where the average slot utilization rate declines to be 90%， with some even below 85%. As a result， services present on different trends， but spot rate increases slightly against last week. On Sep.5， freight index in the China-Mediterranean service quotes 1474.93 points， up by 1.9% from last week. In the Mediterranean service， the market goes on the downward trend. Cargo volume declines in the West Med. Service， where the average slot utilization rate is below 90%； while cargo volume performs weak in the East Med. service， where spot rate falls， with the lowest below USD1200 per TEU. On Sep.5， freight index in the China-Mediterranean service quotes 1685.70 points， down by 2.7% from last week.

In the North America service， cargo volume increases firmly as the recovery of America economy. The average slot utilization rate in the USWC service rises to be 90%-95%； while the average slot utilization rate in the USEC service keeps at above 95%， with more than one full-loaded. On Sep.5， freight rate in the Shanghai-USWC and USEC services （covering seaborne surcharges） quotes USD2304/TEU and USD4636/TEU， up by 5.8% and 6.7% from last week respectively.

Transport demand performs unsatisfying in the Persian Gulf service， where part box liners withdraw capacity， leading to the average slot utilization rate around 85%. On Sep.5， freight rate in the Shanghai-Persian Gulf service （covering seaborne surcharges） quotes USD847 per TEU， diving by 11.5% from last week.

Transport demand is firm in the Australia/New Zealand service， where the capacity sees increase by around 3000TEU， compared with that last week. It causes that the supply/demand condition worsened， and the average slot utilization rate in the region of 85%-90%. Spot rate dives largely， with some even below USD600 per TEU. On Sep.5， the freight rate in the Shanghai-Australia/New Zealand service （covering seaborne surcharges） quotes USD695 per TEU， falling by 7.9% comparing with that last week.

In the South America service， transport demand is weak to increase， affected by the fragile economy. Cargo volume falls further， leading to worsened oversupply of capacity. The average slot utilization rate in this service keeps at above 80%， and spot rate declines， with some even decreasing by USD400 per TEU. In a contrast， cargo volume in the West coast of this service keeps stable， and the average slot utilization rate stands between 90%-95%， with the average slot rate hovering USD1900 per TEU. On Sep. 5， the freight index in the China-South America service quotes 854.23 points， down by 1.1% from last week.

Cargo volume keeps rising in the Japan service， where the average slot utilization rate arises to be around 70%， with spot rate stable. On Sep.5， the freight index in China-Japan service quotes 619.30 points， up by 2.0% from last week.

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

SHIPPING EXCHANGE BULLETIN

TOTAL EDITION： 900

16/9/2014

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