Spot rate trend differentiated on mid-month hiking
In this week, the China's export container shipping market performed steadily. The carriers’ marketing policy diversified on the mid-month rate hiking plans. The movement of spot market rate on same service route but different voyages was seen opposite. The composite index was almost the same as the previous period. On January 11th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) was quoted 940.08 points, slightly down by 0.1% from previous week.
In the Europe route, as supported by the rush cargoes before the “Spring Festival”, transportation demand remained at high level and many voyages almost departed with full loads. However, as the whole market performance was weaker than same period last year, hiked rate from month beginning failed to stand steadily and spot market rate dropped slightly. On January 11th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD979/TEU, down by 1.7% from one week ago. In the Mediterranean route, the market situation was similar to that of the European route. The average slot utilization rate ex Shanghai Port was stable at over 95%, and most of the voyages were fully loaded. Only some carriers slightly decreased their booking rates. On January 11th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD980/TEU, down by 1.7% from one week ago.
In the North America routes, during the traditional peak season, cargo volumes rebounded from last month. However, due to shipping demand was excessively overdrawn by cargo owners’ pre-schedule delivery, the total volume was much less than same period last year. Some carriers cut their capacity supply scale even in the peak season. This week, the average slot utilization rate ex Shanghai Port on USWC and USEC were around 90% and 95% respectively. The spot market rate diversified on different voyages. On January 11th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) were quoted USD1895/FEU and USD3040/FEU, dropped back by 2.0% and 2.5% respectively compared to last week.
In the Persian Gulf route, the shipped demand was seen increased before the "Spring Festival". In addition, supported by continuous capacity scale controlling measure, the relationship between supply-and-demand was improved significantly. The average slot utilization rate ex Shanghai Port reached 95%, and some vessels were already over-booked. As capacity supply was tight, some carriers increased the booking rate again On January 11th, freight rate in the Shanghai to Persian Gulf route (including seaborne related surcharges) was quoted USD814/TEU, up by 3.2% from previous week.
In the Australia/New Zealand route, as the cargo volume has declined in recent while the capacity supply scale kept stable, the market fundamental was under healthy level. This week, the average slot utilization rate ex Shanghai Port was about 85%. Due to the unsatisfied loading rate, the carriers decreased their booking by different degree and spot market rate slid down. On January 11th, freight rate in the Shanghai to Australia/New Zealand route (including seaborne related surcharges) was quoted USD551/TEU, down by 10.0% compared with one week ago.
In the South America route, shipping demand was observed increased significantly during the pre-holiday peak season. The average slot utilization rate ex Shanghai Port was about 95%. Based on above fundamentals, carriers implement GRI plans for voyages to be shipped from min-month. Spot market rate sharply hiked. On January 11th, freight rate in the Shanghai-South America route (including seaborne related surcharges) quoted USD1675/TEU, rocketed up by 35.4% compared to last week.
In the Japan route, shipping demand was stable, and market rate was slightly up. On January 11th, freight index in the China to Japan route quoted 713.66 points, up by 1.0% from last week.