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CCFI Commentary Issue 36, 2017

  

  Demand Stable While Rate Slip

  China export box transport market sees transport demand and freight rates stable. Box liners reduce freight rate to lock market share, leading freight rate in most routes sliding and the comprehensive index tumbling. On Sep.1, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 801.95 points, falling by 2.4% comparing with one week ago.

  In the Europe route, as European economy recovers slowly, transport demand keeps growing. Cargo volume keeps stable, and the average slot utilization rate leaving off Shanghai Port is between 90%-95%. As cargo volume stop to rise, freight rate continues to slip. On Sep.1, freight rate in the Shanghai-Europe route (covering seaborne surcharges) quotes USD886/TEU, falling by 4.0% against one week ago. In the Mediterranean route, market has a similar performs as that in the Europe route, the average slot utilization rate leaving off Shanghai Port sustains around 90%, leading spot rate decreasing. On Sep.1, freight rate in the Shanghai-Mediterranean route (covering seaborne surcharges) has a week-on-week slip of 3.8% to USD791/TEU.

  Data issued by Market shows that manufacture PMI in Aug. quotes 52.5 points, a slip against one month ago, which presents American economy outlook unclear. The average slot utilization rate leaving off Shanghai Port is around 95%, demand/supply condition keeps stable. For the lack of sufficient cargo volume, freight rate slides down continuously, leading spot rate tumbling further. On Sep.1, freight indices in the routes from Shanghai to USWC and USEC (covering seaborne surcharges) quote USD1495/FEU and USD2280/FEU, falling by 3.0% and 5.7% from one week ago respectively.

  The whole market in the Persian Gulf route performs flat after the Ramadan, where transport demand is weak for a long time. Although part of box liners carries out capacity control plan, demand/supply condition fails to improve, and the average slot utilization rate hovers around 80%, leading spot rate slip. On Sep.1, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) has a week-on-week decrease of 5.3% to USD450/TEU.

  Market recovers continuously in the Australia route, where transport demand rises stably, and demand/supply condition improves as the whole capacity is controlled. The average slot utilization rate leaving off Shanghai Port mounts above 90%. As a result, box liners carry out freight rate increase plan, with spot rate rising largely. On Sep.1, freight rate in the Shanghai-Australia route (covering seaborne surcharges) quotes USD710/TEU, surging by 38.1% against one week ago.

  Transport demand keeps firm in the South America route, where demand/supply condition tends well as the whole capacity size is controlled effectively. Owing to freight rate keeps on the relatively high level, box liners compete on market share, leading spot rate slip. On Sep.1, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD2407/TEU, down by 6.8% from one week ago.

  Both cargo volume and spot rate keep stable in the Japan route. On Sep.1, freight index in the China-Japan route quotes 673.57 points.

 
 
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