Spot rates hiked on most trade lanes
 
In this week, the China's export container shipping market fundamental was generally improved by increased cargo volume as market coming into the traditional pre-holiday peak time. Carriers implemented GRI plans on most service routes and spot market rates were seen varying growth. On December 28th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) was quoted 910.81 points, greatly up by 9.2% from previous week.
 
In the Europe route, as the market entered into the pre-Spring-Festival season, transportation demand continued to rise. Most voyages departed from Shanghai Port were almost already out of space for booking. Due to the exuberant demand, the carriers lift up their booking rates by varying degrees, and the freight rate has continued to rise. On December 28th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD996/TEU, up by 14.2% from one week ago. In the Mediterranean route, transportation demand has rebounded rapidly in recent period. The average slot utilization rate ex Shanghai Port has remained above 95%, and most vessels departed with full loads. Carriers implemented GRI plans lead to a sharp hiking of spot booking rates. On December 28th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD967/TEU, up by15.3% from one week ago.
 
In the North America routes, cargo volume was seen obvious decline in recent period. However, with the help from carriers’ capacity contracting measures, the average slot utilization rate ex Shanghai Port rebounded to level between 90% ~ 95%. As shipping demand slightly increased before the “New Year” Day, some carriers attempted to increase their booking rate on voyages in the coming year, the spot rates rebounded by a certain degree. On December 28th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) were quoted USD1883/FEU and USD2998/FEU, up by 6.8% and 9.0% respectively compared to last week.
 
In the Persian Gulf route, the shipping demand has recovered well recently and the supply-and-demand relationship was improved and stabilized. The continuous effort on contracting capacity supply by carriers has shown results. In this week, the average slot utilization rate ex Shanghai Port has increased to 95% with some vessels fully loaded. Affected by the above-mentioned fundamentals, some carriers increased their booking rates which leading to a big jump of spot market freight. On December 28th, freight rate in the Shanghai to Persian Gulf route (including seaborne related surcharges) was quoted USD668/TEU, up by 11.9% from previous week.
 
In the Australia/New Zealand route, driven by the rush cargoes before the pre-holiday season, the market fundamental gradually turned healthier. The average slot utilization rate ex Shanghai Port was about 95%, and some vessels were even over-booked. Affected by this, most carriers raised their booking rates and the spot market rates rose greatly. On December 28th, freight rate in the Shanghai to Australia/New Zealand route (including seaborne related surcharges) was quoted USD634/TEU, up by 12.4% compared with one week ago.
 
In the South America route, market freight rate has been at a deeply low position after continuous falling in previous period. As time was close the end of the year, driven by the rush cargoes during the pre-holiday peak season, market fundamental got improved. Meanwhile, as some carriers have introduced capacity contracting measures such as blank sealing and etc, the average slot utilization rate ex Shanghai Port increased to between 90% and 95% with a few voyages departing with full loads. In order to get the freight rate out of the continuous downturn trend, some carriers lift up their booking rate for voyages from beginning of next year by implemented new round of GRI plan. On December 28th, freight rate in the Shanghai-South America route (including seaborne related surcharges) quoted USD1092/TEU, rocketed up by 77.3% compared to last week.
 
In the Japan route, shipping demand was stable, and market rate was slightly down. On December 28th, freight index in the China to Japan route quoted 712.93 points, slightly down by 0.2% from last week.