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CCFI Commentary Issue 37, 2017

  

  Rate Slip and Demand in a Slow Growth

  China box transport market sees transport demand rise firmly and capacity still oversupplied. Box liners in most routes carry out freight rate reduce measures, leading spot rate slip and the comprehensive index falling. On Sep.8, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 774.27 points, a slip of 3.5% from one week ago.

  In the Europe route, Manufacture PMI in Euro zone in Aug. quotes 56.6 points, showing that Euro zone economy has a slower recovery. Consequently, transport demand is dampened from increasing. Cargo volume keeps stable in this route, where the average slot utilization rate is 90%-95%. In order to sustain market share, box liners decrease booking rate, causing spot rate slip. On Sep.8, the average slot utilization rate in the Shanghai-Europe route (covering seaborne surcharges) quotes USD812/TEU, falling by 8.4% from one week ago. In the Europe route, the average slot utilization rate is around 90%, and spot rate fails to keep stable. On Sep.8, freight rate in the Shanghai-Mediterranean route (covering seaborne surcharges) quote USD758/TEU, a slip of 4.2% from one week ago.

  In the North America route, transport demand fails to keep rising, and the average slot utilization rate hovers around 95%. As competition stiffens, box liners reduce freight rate positively, leading spot rate falling. On Sep.8, freight rates in the routes from Shanghai to USWC and USEC (covering seaborne surcharges) quote USD1473/FEU and USD2231/FEU, down by 1.5% and 2.1% from one week ago respectively.

  The Persian Gulf route sees transport demand still flat. Part of box liners take measures to limit capacity, and the average slot utilization rate rises to around 85%. Box liners choose to reduce freight rate, leading spot rate slip. On Sep.8, fright rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) has a week-on-week slip of 4.4% to USD430/TEU.

  The improving economy boosts transport demand in the Australia route, where the average slot utilization rate remains 90%-95%. Owing to the demand/supply condition keeps good, and most box liners remains freight rate, causing spot rate firmed. On Sep.8, freight rate in the Shanghai-Australia route (covering seaborne surcharges) quotes USD706/TEU, a slight slip of 0.6% against one week ago.

  Transport demand has a good performance in the South America route, where demand/supply condition keeps stable and the average slot utilization rate hovers around 95%, with some even full-loaded. As freight rate keeps on the relatively high level, box liners reduce freight rate, leading spot rate declining. On Sep.8, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD2241/TEU, down by 6.9% from one week ago.

  Cargo volume and spot rate keep stable in the Japan route. On Sep.8, freight index in the China-Japan route quotes 668.07 points.

 
 
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