Freight rates fell on most shipping routes
In this week, China export container shipping demand was generally stable. However, due to unexpected plain cargo performance before traditional pre holiday peak, spot rates dropped on most shipping routes and the comprehensive index fell accordingly. On September 21st, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 890.21 points, down by 2.1% compared with previous week.
In the Europe route, as market coming to the end of the traditional transportation peak season, the transportation demand declined. Even if it was close to the traditional pre “National Day” holiday peak, the market volume has not yet improved. Affected by this, the space supply surplus situation has been slightly strengthened. This week, the average slot utilization rate ex Shanghai to Europe and Mediterranean was around 90% and 85% respectively. Driven by carrier’s rate cutting action to reduce broken stowage, the spot market freight rates continued to decline in recent. However, the downing trend slowed in a certain degree. On September 21st, freight rates in the route from Shanghai to Europe and Mediterranean (contains seaborne related surcharges) quoted USD766/TEU and USD804/TEU, down by 6.7% and 5.6% from last week ago respectively, also down 20.1% and 12.1% from same period last month.
In the North America route, driven by retailers' replenishment and acceleration of cargo owner’s contract execution, market transportation demand remained at relatively high level. Even if some carriers added temporary shipping services which increased total space supply, the average slot utilization rate ex Shanghai kept above 95% with some of them departing with full loads. Benefited by the healthy fundamentals, most carriers maintained the booking price without change, and the freight rate was almost stable after the increase. On September 21st, freight rates in the routes from Shanghai to USWC and USEC (contains seaborne related surcharges) quoted USD2343/FEU and USD3502/FEU, both down by 0.3% compared to last week.
In the Persian Gulf route, the overall volume performance was in the doldrums. Although carriers drastically reduced the supply of capacity through withdrawing and combining of their shipping services, it still failed to improve the weakness of the route fundamentals. This week, the average slot utilization rate ex Shanghai remained at around 90%. And due to the large division of loading rates among the carriers, a new round of rate reduction has caused the spot market freight rate to continue to drop. On September 21st, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD365/TEU, down by 6.6% from previous week.
In the Australia/New Zealand route, demand for market transportation showed no sign of improvement, and the relationship between supply and demand continued in poor condition. Affected by the large surplus of capacity, the market competition intensified, which leading to the continuous decline on booking rate. On September 21st, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD538/TEU, down by 2.5% against one week ago and had fallen for seven consecutive weeks.
In the South America route, affected by the financial instability of some countries in the destination, the transportation demand had declined. This week, although the average slot utilization rate ex Shanghai remained at around 95%, some carriers lowered the freight rate for to stock loadings during Nation Day holiday in advance. The spot market rate dropped sharply. On September 21st, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1098/TEU, down by 13.7% compared to last week.
In the Japan route, shipping demand was stable, and the freight rate stood steadily. On September 21st, freight index in the China to Japan route quoted 728.84 points, up by 1.0% from previous week.