Spot market rates hiked on some service routes

　　In this week, the performance of China's export container shipping market kept glooming during the peak season. The carriers’ rate hiking operations on some service routes pushed freight indices higher. On August 30th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 819.65 points, up by 5.8% compared with previous week.

　　In the Europe route, the cargo volume remained at high level during the peak season. There were still blank sailing operations by some carriers however they were run in a small scale. This week, the average slot utilization rate ex Shanghai Port was above 95%, and some of the voyages were fully loaded. Most carriers lowered their booking freight rates and spot market rates went down. On August 30th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD757/TEU, down by 4.5% from one week ago. In the Mediterranean route, the market performance was slightly poorer than Europe. This week, the average slot utilization rate ex Shanghai Port was around 95%. Market competition has intensified, most carriers cut price to capture more goods. Spot market freight rates fell accordingly. On August 30th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD895/TEU, down by 7.6% from one week ago.

　　In the North America route, the repeated twists and turns in Sino-US trade negotiation resulted in the uncertainty of the market outlook. As the new tariff policy would be implemented from the coming September, the cargo volume was spurred to rise. To meet the market demand, carriers temporally deployed more capacity supply through using additional vessels or replacing vessels by bigger ones. This week, the average slot utilization rate ex Shanghai Port on the USWC and USEC routes were both around 95%, and some of vessels to USEC were fully loaded. The carriers raised their quotations for vessels to depart from next month beginning. Spot market rate hiked substantially. On August 30th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1615/FEU and USD2691/FEU, up by 25.6% and 10.5% respectively compared to last week.

　　In the Persian Gulf route, the geopolitical situation in the destination area has slightly eased, but the cargo volume has not recovered to normal level. The carriers’ operations on the capacity contracting helped the market to keep in balance. This week, the average slot utilization rate ex Shanghai Port was about 95%. Some carriers decreased their booking rates to maintain their market share, and the spot market freight rate dropped accordingly. On August 30th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD657/TEU, down by 4.1% from previous week.

　　In the Australia/New Zealand route, the market was in the peak season and the cargo volume was relatively stable. There were continuous capacity controlling operations from some carriers which helped the supply-and-demand relationship kept in healthy level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and many vessels were fully loaded. With the support of the strong market fundamentals, some carriers pushed up the freight rate again and the spot market rate continued to rise. On August 30th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD770/TEU, up by 16.7% from one week ago.

　　In the South America route, the shipping demand was stable. Some carriers expanded their capacity supply and integrated their services. The supply-and-demand relationship remained good. This week, the average slot utilization rate ex Shanghai Port was above 95%, and many voyages were fully loaded when departed. Backed by this, some carriers implemented new round of PSS, and thus the spot market freight rate rose. On August 30th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD2001/TEU, up by 6.4% compared to last week.

　　In the Japan route, cargo volume kept stable as well as the freight rate. On August 30th, freight index in the China to Japan route quoted 733.80 points, marginally up by 0.3% from previous week.