Hiked rates failed to stabilize on most service routes

　　In this week, China's export container shipping market was still in the peak season, and the total transportation demand was at a high level. However, due to the abundant capacity supply, the hiked rates from last week were not fully accepted by the market. The spot market rates on most service routes fell by different degrees, and the composite index declined accordingly. On November 8th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 837.99 points, down by 1.1% compared with previous week.

　　In the Europe route, the performance of cargo volume was stable. Meanwhile, affected by some temporary blank sailing operations, the available capacity for booking was slightly tight. This week, the average slot utilization rate ex Shanghai Port was around 95% with some vessels fully loaded. Although there were downward adjustments on some voyages, the spot market rate was pushed up by some carriers following the rate hiking plan. On November 8th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD729/TEU, up by 3.1% from one week ago. In the Mediterranean route, the transportation demand was insufficient compared to the capacity supply scale. Although some carriers contracted their capacity supply, the average slot utilization rate ex Shanghai Port was still between 90% and 95%. In order to obtain more consignments, the booking rates on most voyages were significantly declined. The spot market freight rate fell. On November 8th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD721/TEU, down by 1.9% from one week ago.

　　In the North America route, the performance of cargo volume was stable during the traditional peak season. Thanks to the large scale capacity contracting operations by the carriers, the market supply and demand relationship remained at a healthy level. This week, the average slot utilization rate ex Shanghai Port to USWC and USEC routes was above 95%, and lots of vessels were fully loaded. Due to the strong market fundamentals, most carriers kept the hiked rates without adjustments. Only a small part of vessels slightly lowered its booking rates. The spot market rate fell slightly. On November 8th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1532/FEU and USD2572/FEU, down by 3.5% and 1.2% respectively compared to last week.

　　In the Persian Gulf route, the momentum of market volume recovery has slowed down, and the situation of oversupply has slightly intensified. This week, the average slot utilization rate ex Shanghai Port fell to around 90%. Affected by this, the rate hiking plan executed at the month beginning failed to gain market acceptance. The booking rates of most voyages fell back to the level before the rise. On November 8th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD773/TEU, down by 6.9% from previous week.

　　In the Australia/New Zealand route, the market transportation demand was still relatively strong. Together with the help of the continuous capacity control measures by carriers, the market fundamentals were maintained at healthy level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and many vessels departed with full loads. However, as the market freight rate has continued to rise for a long period of time，the upward trend was weakened by market pressure. Even the booking rates on most voyages still remained unchanged，there was a small price cut on some specific voyages. The spot market rate declined for the first time after 19-week consecutive increases. On November 8th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD1173/TEU, down by 1.9% from one week ago.

　　In the South America route, market demand was strong and remained at a relatively high level in recent period. At the same time, benefited from the capacity control measures, the relationship between supply and demand was stable. This week, the average slot utilization rate ex Shanghai Port remained close to full load. However, after two consecutive weeks of rate increases, the strategies among carriers have been differentiated. Some carriers have maintained the freight rates while others decreased their quotations. The spot market freight rates have fallen accordingly. On November 8th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD2045/TEU, down by 3.4% compared to last week.

　　In the Japan route, cargo volume was stable, and the market rate slightly dropped. On November 8th, freight index in the China to Japan route quoted 733.23 points, down by 0.9% from previous week.