Weekly Commentary on China Containerized Transportation

Liu Zijia

In the week ending Oct.31， China export box market see transport demand keeps improving， and demand/supply condition gets better， which is benefited by the capacity control measures. Spot rate is stable. On Oct.31， China （export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 1018.25 points， almost in line with that in last week. However， because of the growing freight rate， the average spot rate jumps. On Oct.31， Shanghai （export） Containerized Freight Index （SCFI） issued by SSE quotes 1112.00points， surging by 15.0% from one week ago.

In the European service， euro economy presents on the recovery trend， which makes cargo volume rebound since from mid Oct. plus more and more box liners carry out service ceasing measures， demand/supply condition gets better， and the average slot utilization rate in this service hovers between 90%-95%. However， because of the large scale of the transport volume， the loading rate in some service is below 90%， causing spot rate decreasing. On Oct.31， freight index in the services from China to Europe and Mediterranean quote 1183.35 points and 1344.08 points， down by 2.7% and 1.8% from last week. What should be paid attention is that impacted by rebounding cargo volume， some box liners hike spot booking rate largely， which boosts spot booking rate improving. On Oct.31， freight rate in the services from Shanghai to Europe and Mediterranean services （covering seaborne surcharges） quote USD1312 /TEU and USD1416 /TEU， surging 88.2% and 51.3% against last week. According to insiders， spot rate increases largely， which is caused by the growing cargo volume and operation pressure.

In the North America service， U.S. economy keeps stable recovery， boosting transport demand. Benefited from the improving supply/demand condition， the average slot utilization rate in the USWC service hovers between 90%-95%， and that in the USEC service keeps above 95%. Spot rate in this service declines somehow. On Oct.31， freight rates in the USWC and USEC services （covering seaborne surcharges） quote USD1988 /FEU and 4048 /FEU， falling by 5.7% and 1.7% from last week respectively.

Cargo volume keeps stable in the Australia service， where the average slot utilization rate is above 90%， and spot rate declines further. On Oct.31， spot rate in the Shanghai-Australia service （covering seaborne surcharges） quotes USD784/TEU， declining by 2.2% from last week.

In the Persian Gulf service， box carriers begins to stop offering service， so supply/demand condition has a remarkable recovery. The average slot utilization rate in this service is above 90%， with spot rate rebounding. On Oct.31， freight rate in the Shanghai-Australia service （covering seaborne surcharges） quotes USD784 per TEU， down by 2.2% from last week.

Cargo volume declines slightly in the Japan service， where the average slot utilization rate falls to be below 70%， with spot rate stable. On Oct.31， freight index in the China-Japan service quotes 660.35 points， down by 0.9% from last week.

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

SHIPPING EXCHANGE BULLETIN

TOTAL EDITION： 907

11/11/2014

CONTENT FOR THIS WEEK

The Whole Shipping Industry Is Improving Except for

Shipbuilding Sector

Focusing on the Yangtze River Water Shipping

How to Break the Poor Condition for Shipping Firms

Shipping Capacity Delivery Product Comes into the

Market Initiatively

Eshipping Gateway Focuses on Figure and Service

HHI Margins Loss by Reducing Staff First