Spot rate fluctuated in small range as market fundamental stabilizing
In this week, the supply and demand relationship in China's export container shipping market was generally stable. The spot market rate on main trade lanes was seen slightly fluctuating. However, influenced by the rates fell back on some non-main shipping routes, the composite index of SCFI was slightly down. On November 9th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 961.88 points, down by 1.5% compared with previous week.
In the Europe route, the market transportation demand was generally stable. And spurred by the rush cargo of Christmas commodity, the relationship between supply and demand of routes has slightly rebounded. This week, the average slot utilization rate ex Shanghai was about 95%, even some vessels departing with full loads. Due to the tight space situation, the booking rates on some voyages increased. On November 9th, freight rates in the route from Shanghai to Europe (contains seaborne related surcharges) quoted USD753/TEU, marginally up by 0.1%. In the Mediterranean route, The cargo volume declined slightly. Although the blank sailing operation alleviated the excess capacity situation, some carriers had reduced their booking rate for more consignments. The spot market price dropped accordingly. On November 9th, freight rates in the route from Shanghai to Mediterranean (contains seaborne related surcharges) quoted USD767/TEU, slightly down by 0. 3%.
In the North America route, driven by cargo owners' accelerating on delivering cargo and Christmas cargo flows, transportation demand has remained strong in recent period. This week, the average slot utilization rate ex Shanghai remained above 95%, and rolling-over of containers happened on many departing vessels. Some carriers put temporary voyages into market to meet the strong shipping demands. The space tension situation then was relieved by a certain degree. Due to the relatively healthy fundamentals, most carriers maintained their sale rates in relative high level. Only some of the carriers adjusted back their booking rates. On November 9th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD2575/FEU and USD3613/FEU, down by 1.2% and 0.1% respectively compared to last week.
In the Persian Gulf route, as insufficient demand from destination area, many carriers have continuously adjusted their shipping services related to local area, which resulting the fluctuations of total market capacity supply. Moreover, due to the expanding slot utilization gap among the carriers, it also affected the carriers’ short-term market strategy. Some carriers followed the rate hiking plan to lift up their rates while some carriers lowered their rates for more cargo loads. The average market freight rate rose slightly. On November 9th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD528/TEU, slightly up by 0.6% from previous week.
In the Australia/New Zealand route, the supply and demand relationship of the route kept stable, and the average slot utilization rate ex Shanghai maintained at around 95%. However, due to some carriers’ rate reduction, the spot market freight rate fell slightly. On November 9th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD735/TEU, down by 5.5% against one week ago.
In the South America route, the transportation demand almost remained stable in recent period. But as affected by the gradually increase in capacity supply, the market fundamental was weakened. This week, the average slot utilization rate ex Shanghai fell to around 85%. In order to compete for market shares, most carriers adjusted back their booking rate even lower than the rate before the hiking at month begin. On November 9th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1243/TEU, sharply down by 15.3% compared to last week.
In the Japan route, shipping demand kept stable, and the freight rate slightly waved. On November 9th, freight index in the China to Japan route quoted 711.73 points, slightly up by 0.2% from previous week.