Spot market rates declined on most service routes as softened shipping demand

　　In this week, the performance of China's export container shipping market was relatively weak. The transportation demand on most service routes has not performed well in the traditional peak season. The spot market rates fell and the composite index continued to go down. On September 20th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 734.09 points, down by 4.1% compared with previous week.

　　In the Europe route, according to data released by research firm Markit, the final PMI of the manufacturing sector in the Euro Zone in August was 47, which was below 50 for 7 consecutive months. The shipping demand hasn’t reached the market expectation and the performance was even poorer than those in previous years which pressed on the market fundamentals. This week, the average slot utilization rate ex Shanghai Port was between 90% and 95%. The spot market rate was further eroded. On September 20th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD639/TEU, down by 5.2% from one week ago. In the Mediterranean route, the overall market performance was almost similar to that of European route. This week, the average slot utilization rate ex Shanghai Port was around 95%. Carriers slightly lowered the booking freight rates. On September 20th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD797/TEU, down by 3.5% from one week ago.

　　In the North America route, according to data released by the US Department of Labor, the number of nonfarm payroll employment in the United States increased by 130,000 in August, a decrease of 34,000 from the previous period. Due to the impact of Sino-US trade friction, the market performed worse than previous years during the peak season. The supply-and-demand relationship was under pressure because of weak shipping demand. This week, the average slot utilization rate on USWC and USEC service routes ex Shanghai Port was below 95%. Due to uncertainty of the market outlook, carriers cut their quotations to secure market shares. The spot market rate continued to fall. On September 20th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1338/FEU and USD2351/FEU, down by 7.5% and 6.6% respectively compared to last week.

　　In the Persian Gulf route, due to the continuous geopolitical risk in the destination area, the shipping demand was not active. Some carriers extended their capacity control measures to control the overall capacity supply. However, the market fundamentals have not been improved as the demand was sluggish. This week, the average slot utilization rate ex Shanghai Port was around 90%. The spot market rate dropped again. On September 20th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD562/TEU, down by 6.6% from previous week.

　　In the Australia/New Zealand route, the overall market performance was good as transportation demand continued to grow during the peak season. The carriers continued to control the total scale of capacity supply. This week, the average slot utilization rate ex Shanghai Port remained above 95%, and some voyages were fully loaded. Spot market rate was pushed up again by exuberant demand. On September 20th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD898/TEU, up by 9.5% from one week ago.

　　In the South America route, the cargo volume and the capacity scale was generally stable. The supply-and-demand relationship kept stable. This week, the average slot utilization rate ex Shanghai Port was maintained at around 95%. The spot market dropped from previous hiked basis. On September 20th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1849/TEU, down by 6.5% compared to last week.

　　In the Japan route, cargo volume kept stable while the spot market rate slightly rebounded. On September 20th, freight index in the China to Japan route quoted 737.78 points, up by 2.6% from previous week.