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CCFI Commentary Issue 17, 2018

  Freight Rates Keep Stable

  In the week ending April 20, China export box transport market sees demand stable, the oversupply of capacity retrieves, and freight rates in the ocean-going routes perform stable, leading the comprehensive index going north. On April 20, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 674.58points, a week-on-week increase of 2.2%.

  In the Europe route, transport demand rises stably, and the average slot utilization rate hovers above 90%. Most box liners sustain freight rate, and spot rate keeps stable. On April 20, freight rate in the routes from Shanghai to the Europe and Mediterranean (covering seaborne surcharges) quote USD584/TEU and USD601/TEU, both almost in line with one week ago.

  Transport demand keeps stable in the North America route. The average slot utilization rate in the USWC is around 95%, and that in the USEC is nearly 100%. However, as the different strategies are carried out, most box liners cancel freight rate increase plan in mid April, leading spot rate keeps stable. On April 20, freight rates in the routes from Shanghai to USEC and USEC (covering seaborne surcharges) quote USD1152/FEU and USD2193/FEU, almost in line with last week.

  In the Persian Gulf route, as Ramadan is coming at the destination, cargo owners space to go shipment, which boosts transport demand. Simultaneously, owing to capacity supply shrinks somehow, demand/supply condition improves and the average slot utilization rate amounts to around 90%, with some even 100%. Booking rate in the spot market rises remarkably, with spot rate bounding. On April 20, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD460/TEU, jumping by 40.7% comparing with one week ago.

  As it enters the traditional slack season in the destination, cargo volume performs flat in the Australia/New Zealand route, where the average slot utilization rate hovers around 80%. The oversupply of capacity worsens, leading spot rate sliding further. On April 20, freight rate in the Shanghai-Australia/New Zealand route (covering seaborne surcharges) quotes USD831/TEU, falling by 1.8% against one week ago.

  Transport demand keeps stable in the South America route, where demand/supply condition has no improvement and the average slot utilization rate is 90%-95%. In order to sustain market shares, box liners reduce freight rate in most services, with spot rate sliding. On April 20, freight rate in the Shanghai-South America route (covering seaborne surcharges) has a week-on-week decrease of 15.6% to USD1767/TEU.

  In the Japan route, cargo volume and freight rate keep stable. On April 20, freight index in the China-Japan route quotes 716.57points.

  

 
 
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