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CCFI Commentary Issue 23, 2017

    China export box transport market sees demand stable, and the comprehensive index increases, but freight rates among different routes have uneven performances. On June 2, Shanghai Export Containerized Freight Index (SCFI) quotes 894.86 points, an increase of 4.9% comparing with one week ago.

  Europe economy growth slows down, which hits transport demand in the Europe route where the average slot utilization rate leaving off Shanghai Port keeps above 90%. Box liners hike freight rate previously, but owing to cargo volume failing to increase continuously, some box liners carry out measures to decrease freight rate with the aim to sustain market share, leading spot rate tumbling. On June 2, freight rate in the route from Shanghai to Europe (covering seaborne surcharges) quote USD933/TEU, down by 4.5% one week ago. In the Mediterranean route, the average slot utilization rate leaving off Shanghai Port between 90%-95% for the stable market, and freight rate goes on the upside way. On June 2, freight rate in the route from Shanghai to Mediterranean (covering seaborne surcharges) quote USD920/TEU, down by 2.6% from one week ago.

  In the North America route, transport demand recovers, which improves the demand/supply condition. The average slot utilization rate keeps between 90% and 95%. As cargo volume is increasing, most box liners push up freight rate in early June and plan to hike it further. On June 2, freight rates in the routes from Shanghai to USWC and USEC (covering seaborne surcharges) quote USD1413/FEU and USD2428/FEU, increasing by 11.8% and 8.9% from one week ago respectively.

  For the shipment rush before the Ramadan in the destination, transport demand keeps rising in the Persian Gulf route, where the average slot utilization rate sustains above 95%, with some even 100%. Supported by the sufficient cargo volume, the spot booking rate has a large increase. On June 2, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD918/TEU, surging by20.2% against one week ago.

  In the Australia route, transport demand is flat, some box liners carry out capacity control measures to sustain demand/supply condition, but ineffective. The average slot utilization rate hovers around 80%, with spot rate downside depressively. On June 2, freight rate in the Shanghai-Australia route (covering seaborne surcharges) has week-on-week slip of 6.2% to USD350/TEU.

  Transport demand keeps on the relatively high level in the South America route, where the average slot utilization rate sustains around 95% for the improving demand/supply condition after capacity control measurements by part of box liners, leading spot rate growing further. On June 2, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD3424/TEU, a week-on-week increase of 3.9%.

  Cargo volume and spot rate keep stable in the Japan route. On June 2, freight index in the China-Japan route quotes 661.98 points.

 
 
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