Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending Oct.23， China export box transport market sees demand growing overall after the China National Holiday. As the capacity limit by box liners， demand/supply condition in many services go better， but the comprehensive index slips further， which is hit by the worsening oversupply of capacity in the North America service. On Oct.23， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 752.21 points， down by 1.7% from one week ago; Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE dives by 5.4% from last week to 537.73 points.

As the end of holiday， cargo volume has a big increase in the Europe service. Some box liners， in order to retrieve the oversupply of capacity pressure， strengthen the capacity limit measures in the second half of this month， and finally control the whole capacity size. As a result， the supply/demand condition goes better evidently， and the average slot utilization rate amounts to between 90% and 95%， with some even full loaded. On Oct.23， freight rate in the Shanghai to Europe and Mediterranean services （covering seaborne surcharges） quote USD231/TEU and USD202/TEU， keeping in line with that last week and rising by 3.6% from last week respectively.

U.S. economy keeps on the stable recovery trend and consumer confidence index goes north， presenting that consumer demand is hot and transport demand has a stable growth in the North America service. However， hit by the expanding supply of capacity since from the second half of this year， the oversupply of capacity goes worsen. The average slot utilization rate in the USWC service is between 80% and 85%. In the USEC service， for the additional mega vessels bypass Suez Canal， vessel spaces are expanding， causing the average slot utilization rate below 80%. As a result， the freight rate increase plan in the mid Oct. fails. On Oct.23， freight rates in the services from Shanghai to USWC and USEC （covering seaborne surcharges） quote USD1166/FEU and USD2163/FEU， falling by 15.3% and 9.5% from last week respectively.

Since from the second half of Oct.， transport demand is rebounding in the Australia service. As the improvement of demand/supply condition， the average slot utilization rate keeps at above 90%， with some even approaching 95%. On Oct.23， fright index in the China-Australia service has a week-on-week growth of 3.4% to 610.60 points.

In the Persian Gulf service， cargo volume grows slightly， and demand/supply condition goes better， with the average slot utilization rate between 90% and 95%. Spot rate rises since mid Oct. On Oct 23， the freight rate in the Shanghai-Persian Gulf service （covering seaborne surcharges） quote USD370 per TEU， rising by 7.2% against one week ago.

Cargo volume keeps rising in the Japan service， where the average slot utilization rate amounts to be above 70%， with spot rate stable. On Oct.23， fright index in the China-Japan service quotes 674.88 points， down by 0.2% from one week ago.

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

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 955

3/11/2015

CONTENT FOR THIS WEEK

?Chinese Government Regulates Freight Rate Surcharges

?CSCL Charters in 6+5 21，000TEU Containers to Save Cost

?Functions of Beihai， Qinzhou and Fangchenggang Ports

Are Cleared

?Shandong Shipping Applies for Listing in the "New Three

Board"

?Ship Enlargement Urges Ports Re-layout Worldwide

?The Exclusive Interview of Shanhua， the President of

Origin Information& Technology （Shanghai） Co.， Ltd.

If you have any comments or questions， please contact the E-mail ： ssebu_editor@sse.net.cn or ssebu@sse.net.cn.