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CCFI Commentary Issue 13, 2018

  Freight Rate Slip

  In the week ending March 23, China export box transport market sees the whole demand growing, but demand/supply condition in most services have no remarkable improvement. As the weak condition of the market, spot rate goes south depressively. On March 23, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 646.59 points, a week-on-week decrease of 4.3%.

  The transport market in the Europe route recovers slowly, and the average slot utilization rate is around 85%, with some even below 80%. In order to lock cargo volume ahead, some box liners have to reduce freight rate positively, which is followed by others, causing spot rate slip. On March 23, freight rates in the routes from Shanghai to the Europe (covering seaborne surcharges) quotes USD704/TEU, falling by 5.0% from one week ago. In the Mediterranean route, as demand in destinations is weak, the average slot utilization rate is below 80%, with spot rate tumbling. On March 23, freight rates in the routes from Shanghai to the Mediterranean (covering seaborne surcharges) quotes USD650/TEU, falling by 2.3% from one week ago

  In the North America route, the whole transport demand is growing. Both the average slot utilization rates in the USWC and USEC are below 90%. Most box liners choose to reduce freight rate positively to sustain market share, leading spot rate falling. On March.23, freight rates in the routes from Shanghai to USWC and USEC (covering seaborne surcharges) quote USD945/FEU and USD1933/FEU, down by 7.0% and 3.8%from one week ago respectively.

  Transport demand keeps flat in the Persian Gulf route, where the average slot utilization rate is around 75%, with spot rate slides continuously. On March 23, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD355/TEU, tumbling by 7.6% comparing with one week ago.

  In the Australia/New Zealand route, transport demand recovers slowly and the average slot utilization rate is between 60% and 80%. Some box liners choose to reduce freight rate, causing spot rate slip. On March 23, freight rate in the Shanghai-Australia/New Zealand route quotes USD897/TEU, falling by 3.9% against one week ago.

  In the South America route, capacity supply grows and the average slot utilization rate keeps around 80%. Spot rate slips continuously. On March 23, freight rate in the Shanghai-South America route (covering seaborne surcharges) has a week-on-week decrease of 5.1% to USD1904/TEU.

  In the Japan route, demand/supply condition keeps stable and spot rate rises faintly. On March 23, freight index in the China-Japan route quotes 732.36 points, up by 0.8% from one week ago.

  

 
 
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