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CCFI Commentary Issue 49, 2017

  Demand and Rate Tumbling

  China export box transport market sees demand slip, and freight rate in the Europe rate has a small increase. As other routes, for the oversupply of capacity, freight rates slip at different extents, with the comprehensive index falling. On Dec.8, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 703.67 points, a week-on-week slip of 3.9%.

  The average slot utilization rate in the Europe route improves to between 90%-95%, with some even full-loaded. Owing to the good performance of the demand/supply condition, freight rate increase plan in early Dec. is accepted by the market, and spot rate rises narrowly. On Dec.8, freight rate in the Shanghai-Europe route (covering seaborne surcharges) quotes USD751/TEU, up by 3.0% from one week ago., Transport demand in the Mediterranean route is weaker than that in the Europe route, and the average slot utilization rate is around 85%, with spot rate stable. On Dec.8, freight rate in the Shanghai-Mediterranean route (covering seaborne surcharges) quotes USD600/TEU, almost in line with that one week ago.

  U.S. consumer confidence index quotes 129.5, higher than 126.2 in Oct, which repents that consumer confidence tends better. Recently, transport demand is rising in the North America route. However, as the oversupply of capacity, the average slot utilization rate in the USWC route slips to 85%-90%, and that in the USEC route decline to 90% about. As a result, most box liners reduce freight rate, with the spot rate falling in average. On Dec.8, freight rates in the USWC and USEC (covering seaborne surcharges) quote USD1078/FEU and USD1804/FEU, down by 8.4% and 5.1% from one week ago respectively.

  In the Persian Gulf route, cargo volume keeps stable and the average slot utilization rate is above 85%. Owing to most box liners carry out freight rate reduce plan, spot rate tumbling. On Dec.8, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD360/TEU, down by 7.9% from one week ago.

  As the nearly end of traditional peak season, transport demand cooled down in the Australia/New Zealand route, where cargo volume slip. Although spaces in some routes are full-loaded, the average slot utilization rate tumbles to around 95%. Some box liners reduce freight rate to attract more cargo volume, causing spot rate falling. On Dec.8, freight rate in the Shanghai-Australia route(covering seaborne surcharges) quotes USD1167/TEU, a slip of 8.8% comparing with one week ago.

  Transport demand is firm in the South America route, where the average slot utilization rate leaving off Shanghai Port sustains between 90%-95%, a slight slip comparing with one week ago. Some box liners reduce freight rate in order to maintain their market shares, leading spot rate tumbling. On Dec.8, freight rate in the Shanghai-South America route (covering seaborne surcharges) has a week-on-week decrease of 1.6% to USD2681/TEU.

  Cargo volume and spot rate perform stable in the Japan route. On Dec.8, freight index in the China-Japan route quotes 664.43 points.

 
 
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