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CCFI Commentary Issue 19, 2017

  Demand keeps stable but Rate Slips

  China export box transport market has a flat performance, where transport demand keeps stable, but most freight rates decline after previous increase. On May 5, Shanghai Export Containerized Freight Index (SCFI) quotes 894.43 points, a decrease of 1.6% comparing with one week ago.

  Cargo volume has a good performance in the Europe route, where the average slot utilization rate is above 95%, with some even full-loaded. Box liners carry out freight rate increase plan previously, spot rate begins to decline this week. On May 5, freight rate in the route from Shanghai to Europe (covering seaborne surcharges) quotes USD996/TEU, down by 2.4% against one week ago. In the Mediterranean route, market has a similar performance as the Europe route, which keeps stable. The average slot utilization rate remains around 95%, with spot rate falling down somehow. On May 5, freight rates in the route from Shanghai to Mediterranean (covering seaborne surcharges) quote USD988/TEU, down by 2.3% from one week ago.

  Transport demand has a slower growth in the North America route, where demand/supply condition keeps balance relatively. Both the average slot utilization rates in the USWC and USEC are between 90%-95%. Box liners choose to reduce it for the sake of market share, with spot rate falling down. On May, freight rates in the routes from Shanghai to USWC and USEC (covering seaborne surcharges) quote USD15555/FEU and USD2567/FEU, falling by 3.2% and 2.2% from one week ago respectively.

  As the approach of Ramadan in destination, cargo volume is flat in the Persian Gulf route, where supply/demand condition faces depression, with some box liners trying to limit capacity but ineffective. The average slot utilization rate is below 90%, with spot rate declining depressively. On May 5, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD744/TEU, increasing by 9.5% against one week ago.

  In the Australia route, transport demand remains on the relatively low level, but the supply of capacity still overwhelms demands, the average slot utilization rate hovers around 85%, with spot rate falling further. On May 5, freight rate in the Shanghai-Australia route (covering seaborne surcharges) has week-on-week slip of 3.4% to USD431/TEU.

  Cargo volume keeps unchanged in the South America route, where the average slot utilization rate remains between 90%-95%. Spot rate remains at the relatively high level, with freight rate slip. On May 5, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD2820/TEU, down by 3.7% from one week ago.

  Cargo volume and spot rate keep stable in the Japan route. On May 5, freight index in the Shanghai-Japan route quotes 667.36 points.

 
 
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