Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending Sep.25, the shipment rush before the National Day boosts cargo volume, but impacted by the oversupply of capacity, demand/supply condition has no remarkable improvement overall. Fright rate in most services slip further and the comprehensive index slide slightly. On Sep.25, China (Export) Containerized Freight Index (CCFI) issued by Shanghai Shipping Exchange (SSE) quotes 814.09 points, down by 1.6% from one week ago; while Shanghai  (Export) Containerized Freight Index (CCFI) issued by SSE falls by 8.1% from last week to 571.95 points.

In the Europe service, economy goes tumbling, which makes market demand weak, and transport market performs not as good as expectation. The average slot utilization rates in the Shanghai to Europe and Mediterranean services tumble between 90% and 85%. Spot booking rate dive largely. On Sep.25, freight rate in the services from Shanghai to Europe and Mediterranean (covering seaborne surcharges) quote USD313 /TEU and USD313 /TEU, falling by 31.4% and 30.1% from last week respectively.

In the North America service, transport demand keeps stable in general, but affected by the launch of mega vessels and new trades, capacity increases faster than the growth of cargo volume, leading to the worsened demand/supply condition. The average slot utilization rates in the services from Shanghai to USWC and USEC hover around 90%. Spot rate declines further. On Sep.25, freight rates in the services from China to USWC and USEC quote 859.98 points and 1118.25 points, down by 0.4% and 0.9% against last week respectively. Freight rate increase plan in mid Oct. has been cancelled, and spot booking rate goes south as before. The average freight rate in the USEC service quotes USD2318 per FEU, making a fresh low record since the launch of SCFI.

In the Australia service, cargo volume has some improvement before the holiday, and the average slot utilization rate leaving off Shanghai Port amounts to 95% around, which is beneficial from the limit of capacity. As the improvement of demand/supply condition, most box liners continue the pervious freight rate policy, with spot rate stable. On Sep.25, fright index in the China-Australia service quotes 595.01 points, almost in line with that last week.

Brazil sees its economy straps on the tough condition, which drags down local residential consumption power and extends the recovery of transport demand. Some box liners has carried out service ceasing measures, but have no impact on the demand/supply condition, with the average slot utilization rate hovering between 60% and 70%. Box liners have to reduce freight rate further, leading spot rate slip largely. On Sep.25, fright rate in the China-South America service (covering seaborne surcharges) quote USD183 per TEU, falling by 32.2% against one week ago.

Cargo volume keeps stable in the Japan service, where the average slot utilization rate hovers around 70% for two consecutive weeks, with spot rate firm. On Spe.25, freight index in the China-Japan service quotes 640.95 points.

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