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CCFI Commentary Issue 45, 2017

  Demand and Rate Slip

  China export box transport demand slip as a whole. Freight rates in the Europe and North America routes fall down, with the comprehensive index tumbling. On Nov.10, Shanghai Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 782.25points, down by 4.5% against one week ago.

  In the Europe route, as it approaches to The Christmas Day in the destination, part of cargo owners limit shipment, which causes transport demand shrink. Part of box liners withdraws capacity but fail to improve the demand/supply condition. The average slot utilization rate leaving off Shanghai Port decline to around 90% and that in the Europe route is 80%-90%. For the insufficient demand, some box liners carry out freight decrease plan, with spot rate falling. On Nov.10, freight rates in the Shanghai to Europe and Mediterranean routes (covering seaborne surcharges) quote USD728/TEU and USD619/TEU, falling by 6.5% and 6.2% from one week respectively.

  Transport demand keeps stable as a whole in the North America route. Both the average slot utilization rates in the USWC and USEC routes remain around 95%. Despite the good performance of the market, most box liners are negative toward the post market and take measures to lock market shares, leading spot rate shaking. On Nov.10, freight rates in the USWC and USEC (covering seaborne surcharges) quote USD1411/FEU and USD1917/FEU, falling by 8.9% and 8.2% against one week ago respectively.

  In the Persian Gulf route, market performs flat and the average slot utilization rate falls to below 85%. Part of box liners take measures to withdraw capacity, but fail to improve the excess supply of capacity, leading spot rate tumbling forcefully. On Nov.10, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) has a week-on-week decrease of 7.5% to USD482/TEU.

  In the Australia/New Zealand route, transport demand keeps hot and the average slot utilization rate leaving Shanghai Port keeps above 95%, with some even full-loaded. Owing to good performance of demand/supply condition, box liners hike booking rate again, leading spot rate going north. On Nov.10, freight rate in the Shanghai-Australia/New Zealand route (covering seaborne surcharges) quotes USD1309/TEU, up by 13.3% from one week ago.

  The South America route sees transport demand rising slightly and the average slot utilization rate is above 95%. Many box liners hike freight rate, leading spot rate rising. On Oct.10, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD2923/TEU, up by 3.9% against one week ago.

  In the South Africa route, transport demand performs stably and the average slot utilization rate is 85%-90%. As Durban Port is improving, box liners continue to levy congestion surcharges, but freight rate keeps stable as a whole. On Oct.10, freight rate in the Shanghai-South Africa route (covering seaborne surcharges) quotes USD1342/TEU, up by 08% from one week ago.

  Transport demand keeps stable in the Japan route, where spot rate fluctuates. On Oct.10, freight index in the China-Japan route quotes 665.61 points.

 
 
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