Freight rates hiked on most service routes
In this week, China's export container shipping market was improved by rebounded cargo volume. Carriers have implemented GRI plan, and the spot market rate rose on most trade lanes. On January 4th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 940.86 points, up by 3.3% from previous week.
In the Europe route, according to data released by Markit, the final value of the manufacturing purchasing managers' index (PMI) in the euro zone fell to 51.4 in December 2018, down 0.4 from the previous value, hitting a new low since February 2016, which brought negative impact to the continued growth of transportation demand. The average slot utilization rate ex Shanghai Port was about 95%. As lack of subsequent cargo volume, the continuous upturn trend of freight rate was ceased. On January 4th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD996/TEU, kept in line with one week ago. In the Mediterranean route, the market situation was similar the European route. The average slot utilization rate ex Shanghai Port was slightly higher than that of European routes, reaching over 95%. The spot market rate has increased slightly. On January 4th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD997/TEU, up by 3.1% from last week ago.
In the North America route, according to the latest data released by ADP employment in the United States, the number of ADP employment in the United States increased by 271,000 in December, a significant increase from the previous value and the highest since February 2017. It indicated that the US economy was developing at a stable pace, which was conducive to local consumption demand and the growth in transportation demand. As the shipping demand stabilized after weeks of falling, some carriers increased their booking rate for voyages departed in early this month. On January 4th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) was quoted USD1933/FEU and USD3119/FEU, up by 2.7% and 4.0% respectively compared to last week.
In the Persian Gulf route, the cargo volume was stable. Some carriers limited the capacity supply scale through measures such as blank sailing and etc. The supply-and-demand relationship was improved. The average slot utilization rate ex Shanghai Port rose to around 95%. Carriers implemented GRI plans which leading to a significant increase of the spot market rate. On January 4th, freight rate in the Shanghai to Persian Gulf route (including seaborne related surcharges) was quoted USD789/TEU, up by 18.1% from previous week.
In the Australia/New Zealand route, the cargo volume continued to be at a relatively high level. Some carriers limited their capacity supply to improve the market fundamental. The average slot utilization rate ex Shanghai Port remained above 90%. Due to the great increase in the previous period, spot market rate dropped back slightly this week. On January 4th, freight rate in the Shanghai to Australia/New Zealand route (including seaborne related surcharges) was quoted USD612/TEU, down by 3.5% against one week ago.
In the South America route, the cargo volume showed signs of recovery during the pre-“Lunar New Year” peak season. Some carriers reduced their capacity supply which helping the balance of supply-and-demand relationship. The average slot utilization rate ex Shanghai Port rose to around 95%. Some carriers implemented rate hiking plans and spot market rate rose sharply. On January 4th, freight rate in the Shanghai-South America route (including seaborne related surcharges) was quoted USD1237/TEU, greatly up by 13.3% compared to last week.
In the Japan route, shipping demand maintained stable, and market rate slightly dropped. On January 4th, freight index in the China to Japan route quoted 706.33 points, down by 0.9% compared with last week.