Spot market rates continued to decline on main service routes

　　In this week, China's export container shipping market demand performance was relatively soft. Affected by this, more blank sailing operations were executed by carriers to maintain the supply-and-demand balance. Spot market rates on main service routes continued to decline and the composite index fell accordingly. On September 12th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 765.79 points, down by 3.7% compared with previous week.

　　In the Europe route, the cargo volume was stable in general. However, due to the increasing trend of shipping demand slowed down, the capacity sales progress was affected accordingly. Some carriers implemented blank sailing operations to contract the total scale of supply which helped the supply-and-demand relationship keep in balance. This week, the average slot utilization rate ex Shanghai Port was above 90%. As the market fundamentals were weakened, most carriers cut their freight rates to enhance sales. The spot market rate fell slightly. On September 12th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD674/TEU, down by 5.1% from one week ago. In the Mediterranean route, the market situation was similar to that in Europe route. This week, the average slot utilization rate ex Shanghai Port was around 95%. As market competition has intensified, the freight rates dropped more than those in Europe. On September 12th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD826/TEU, down by 5.8% from one week ago.

　　In the North America route, affected by the uncertainty of the Sino-US trade frictions, the cargo volume fluctuated more frequently. The cargo volume has declined slightly this week. There were more temporary blank sailing operations by the carriers and the supply-and-demand relationship remained stable. This week, the average spot utilization rates ex Shanghai Port on the USWC and USEC routes were both around 95%. Most carriers cancelled the GRI plans and even further lowered their quotations. The spot market price continued to fall. On September 12th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1447/FEU and USD2516/FEU, down by 7.6% and 4.4% respectively compared to last week.

　　In the Persian Gulf route, shipping demand was weak. Under the continuous capacity control measures by the carriers, the supply-and-demand relationship remained stable at a low level. This week, the average slot utilization rate ex Shanghai Port was above 90%. The spot market rate declined as some carriers reduced their quotations in order to maintain market share. On September 12th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD602/TEU, down by 4.9% from previous week.

　　In the Australia/New Zealand route, the market performance was active during the peak season which spurred the shipping demand to keep rising. The capacity was tight as shipping demand was exuberant. This week, the average slot utilization rate ex Shanghai Port was above 95% with lots of voyages departing with full loads. Backed by the strong market fundamentals, some carriers raised their freight rates again, and the spot market rate continued to rise. On September 12th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD820/TEU, up by 3.8% from one week ago.

　　In the South America route, the cargo volume was relatively stable as well as the capacity supply. The relationship between supply and demand remained in healthy level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and some vessels were fully loaded. Affected by this, some carriers implemented GRI plans and the spot market rate rose. On September 12th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1977/TEU, up by 5.9% compared to last week.

　　In the Japan route, cargo volume kept stable while the spot market rate slightly dropped. On September 12th, freight index in the China to Japan route quoted 719.16 points, down by 2.0% from previous week.