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Weekly Report on China’s Export Container Market(9.23–9.27)

  Spot market rates eroded due to flat shipping demand

  In this week, the increasing rate of shipping demand for China's export container shipping market has generally slowed down. As the expected pre-holiday shipment peak did not appear, the freight rate of most routes fell under pressure and the composite index fell slightly. On September 27th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 722.90 points, down by 1.5% compared with previous week.

  In the Europe route, affected by the downward of purchasing orders from Europe, the cargo volume declined accordingly. As the expected rush cargo before the National Day has not appeared, the capacity supply was excessive. This week, the average slot utilization rate ex Shanghai Port was around 85%. Most carriers cut prices to secure their customers as market competition has intensified. The spot market freight rate fell. On September 27th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD593/TEU, down by 7.2% from one week ago. In the Mediterranean route, the market situation was similar to that in Europe. This week, the average slot utilization rate ex Shanghai Port was around 90%. The spot market rate fell accordingly. On September 27th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD742/TEU, down by 6.9% from one week ago.

  In the North America route, even the pre-holiday rush cargo has not reached the market expectations, it still temporarily stabilized the market shipping demand. Together with the help from carriers’ blank sailing operations, the supply-and-demand relationship maintained in healthy level. This week, the average slot utilization rate ex Shanghai Port to the USWC and USEC was around 95% with a few specific voyages departing with full loads. Most carriers kept their quotations without changes while a few of them made slightly downward adjustments. The spot market rates almost stabilized on the basis of decline in previous week. On September 27th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1328/FEU and USD2346/FEU, slightly down by 0.7% and 0.2% respectively compared to last week.

  In the Persian Gulf route, the increased geo-political risk at destination area weakened the shipping demand. Even carriers implemented long-time blank sailing operations, the market fundamentals have not shown signs of improvement. This week, the average slot utilization rate ex Shanghai Port has fallen to around 85%. Carriers have lowered their booking rates in order to compete against market share. The market freight rate trend has dropped significantly. On September 27th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD519/TEU, down by 7.7% from previous week.

  In the Australia/New Zealand route, the market was relatively active and the performance of transportation demand was strong which led to the tight situation of the capacity supply. This week, the average slot utilization rate ex Shanghai Port was above 95% and most of the voyages were fully loaded. Backed by this, some carriers continued to increase their freight rates, and the spot market freight rates rose again. On September 27th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD923/TEU, up by 2.8% from one week ago.

  In the South America route, the cargo volume was generally stable, but the cargo volume was less than that of the same period in previous years. Some vessels were arranged to skip calling of the Chinese Ports during the 7-day holiday. The supply-and-demand relationship was generally stable. This week, the average slot utilization rate ex Shanghai Ports was above 95% with some of them departing with full loads. Some carriers decreased their quotations to get more consignments during the holiday. Spot market rate declined slightly. On September 27th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1770/TEU, down by 4.3% compared to last week.

  In the Japan route, cargo volume kept stable as well as the market rate. On September 27th, freight index in the China to Japan route quoted 738.83 points, marginally up by 0.1% from previous week.

 
 
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