Freight rates hiked on some service routes
In this week, China's export container shipping market has gradually recovered from the “National Day” holiday, and transportation demand increased. Carriers implemented new round of rate hiking plan on of most service routes which drove the composite index to rise. On October 18th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 746.63 points, up by 4.3% compared with previous week.
In the Europe route, according to data from ZEW, the Eurozone's ZEW economic sentiment index was -23.5 in October. Although it has been in negative area for the sixth consecutive month, the pace of decline was better than market expectations. The cargo volume showed sign of recovery from the holiday, however the speed was relatively slow. As the shipping market was relatively weaker than those in previous years, the supply and demand relationship was under certain pressure. This week, the average slot utilization rate ex Shanghai Port was around 80%. Spot market rates stabilized after a continuous decline. On October 18th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD580/TEU, marginally down by 0.2% from one week ago. In the Mediterranean route, the market situation was almost similar to that in Europe service route. Due to the stronger cargo volume, the average slot utilization rate ex Shanghai Port was around 85%. The spot market rate declined slightly. On October 18th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD715/TEU, down by 1.0% from one week ago.
In the North America route, according to data released by the US Department of Labor, the US claims for unemployment benefits for the week ended October 12 were 214000and continued to remain at a historically low level. After the holiday, the transportation demand has gradually recovered. At the same time, some of the vessels skipped the calling of Chinese which helped the market fundamentals to be relatively stable. This week, the average slot utilization rate ex Shanghai Port remained above 95%. As the dispute between China and US showed signs of alleviation, some carriers tried to raise their quotations and spot market rate increased. On October 18th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1368/FEU and USD2374/FEU, up by 4.2% and 1.7% respectively compared to last week.
In the Persian Gulf route, transportation demand grew steadily after the holiday. Most carriers limited their total scale of capacity supply, and the supply and demand relationship improved. This week, the average slot utilization rate ex Shanghai Port rose to over 90%. Affected by this, carriers implemented GRI plan, and the spot market rate rocketed up. On October 18th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD642/TEU, significantly soared up by 25.4% from previous week.
In the Australia/New Zealand route, the market performed well in the traditional transportation season. The transportation demand continued to increase. Carriers continued to control the scale of capacity supply. The supply and demand relationship was stable. This week the average slot utilization rate ex Shanghai Port remained above 95%. The market freight rate kept its rising trend. On October 18th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD1121/TEU, up by 5.4% from one week ago.
In the South America route, the transportation demand slowly recovered after the long holiday. The carriers continued to limit the overall scale of capacity supply. The supply and demand relationship was basically balanced. This week, the average slot utilization rate ex Shanghai Port was around 95%. The spot market rate fell slightly. On October 18th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1798/TEU, down by 0.7% compared to last week.
In the Japan route, cargo volume was relatively stable, the market rate slightly dropped. On October 18th, freight index in the China to Japan route quoted 730.78 points, down by 0.6% from previous week.