Spot market rates diversified on different service routes

　　In this week, as the supply chains were just back from the China week-long National Day holiday, both the shipping demands and capacity supplies were seen in lower levels than those of pre-holiday period. The spot rates declined on most service routes due to sluggish shipping demand which pulled the composite index down. On October 11th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 715.97 points, down by 1.0% compared with previous week.

　　In the Europe route, according to data released by Markit, the Euro Zone's comprehensive PMI fell from 51.9 to 50.4 in September, the lowest since June 2013. Even the market has been in the traditional peak season, the overall performance on the cargo volume didn’t reach the levels in previous years. As the supply-and-demand relationship was under certain pressure, the average slot utilization rate ex Shanghai Port was between 90% and 95%. The spot market rate has slightly dropped. On October 11th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD581/TEU, down by 2.0% from one week ago. In the Mediterranean route, the market situation was almost similar to that in Europe service route with a lower slot utilization rate. This week, the average slot utilization rate ex Shanghai Port was around 90%. The spot market rate declined accordingly. On October 11th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD722/TEU, down by 2.7% 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 increased by 136,000 in September, a decrease of 32,000 from the previous value. As shipping demands declined substantially from China’s week-long holiday, the market fundamentals were relatively weak even carriers tried to contract their capacity supply. This week, the average slot utilization rate ex Shanghai Port was below 95%. Spot market rate went down. On October 11th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1313/FEU and USD2335/FEU, down by 1.1% and 0.5% respectively compared to last week.

　　In the Persian Gulf route, due to the lasting geopolitical risks at the destination area, the overall cargo volume performance was sluggish. Although some carriers have implemented capacity control measures, the supply-and-demand relationship has not been improved. This week, the average slot utilization rate ex Shanghai Port has remained around 90%. Spot market rate continued to fall. On October 11th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD512/TEU, down by 1.3% from previous week.

　　In the Australia/New Zealand route, the overall market kept its strong performance. The transportation demand continued to grow during the peak season. And carriers still carefully maintained the scale of capacity supply. The market fundamentals remained at healthy level. This week, the average slot utilization rate ex Shanghai Port remained above 95%. Carriers pushed up their booking rates again after the week-long holiday and spot market rate kept rising. On October 11th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD1064/TEU, hiked by 15.3% from one week ago.

　　In the South America route, transportation demand was relatively stable during the period. Backed by carriers’ operations on capacity contracting measures, the supply-and-demand relationship remained good. This week, the average slot utilization rate ex Shanghai Port remained at around 95%. Spot market rate increased slightly. On October 11th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1811/TEU, up by 2.3% compared to last week.

　　In the Japan route, cargo volume kept stable as well as the market rate. On October 11th, freight index in the China to Japan route quoted 735.27 points, down by 0.5% from previous week.