Spot market rate fell on most service routes as softened shipping demand

　　In this week, the transportation demand in China's export container shipping market has continued to fall. Although there was certain scale of blank sailing operations by carriers, the oversupply situation has further intensified. The booking rates on most service routes dropped, and the composite index fell accordingly. On November 22nd, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 765.47 points, down by 4.0% compared with previous week.

　　In the Europe route, the cargo volume was in the doldrums just before the Christmas Holiday. Even the carriers continued to increase the scale of capacity contracting operation the overall market supply and demand relationship was still weakening. This week, the average slot utilization rate ex Shanghai Port has dropped to around 85%, and some vessels were even less than 80%. Due to the weak market fundamentals, most carriers maintained their quotations to wait and see the development of the market. Only a few carriers cut the booking rates, and the spot market freight rates have declined slightly. On November 22nd, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD702/TEU, slightly down by 0.8% from one week ago. In the Mediterranean route, market transportation demand has fallen rapidly. In order to maintain a balance between supply and demand, carriers have gradually increased the scale of temporary blank sailings. However, it has not been able to save the market from downturn. This week, the average slot utilization rate ex Shanghai Port was about 80%. Due to the serious situation of oversupply, the booking rates on different voyages have fallen by varying degrees, and spot market rates have continued to fall. On November 22nd, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD689/TEU, down by 2.4% from one week ago.

　　In the North America route, the market entered the slack season just before the Christmas holiday, the cargo volume has dropped significantly. Although carriers have taken corresponding measures to reduce the total supply of capacity, the market fundamentals still continued to be weakened due to rapid decline in the cargo volume. This week, the average slot utilization rate ex Shanghai Port to USWC and USEC service routes was less than 90%. Due to the intensified situation of oversupply, the booking rates was decreased on most of the voyages by varying degrees, and the spot market rates have continued to fall. On November 22nd, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) quoted USD1229/FEU and USD2256/FEU, down by 9.0% and 5.9% respectively compared to last week.

　　In the Persian Gulf route, the transportation demand fluctuated slightly and grew slightly at overall. Thanks to the big scale of capacity contracting measures, the supply and demand relationship maintained at a healthy level. This week, the average slot utilization rate ex Shanghai Port was about 95%, and a few vessels were fully loaded. However, as the gap of loading rates among different carriers fluctuated, the freight rates for different liners have diversified and the overall spot market freight rate rebounded slightly. On November 22nd, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) quoted USD772/TEU, up by 2.3% from previous week.

　　In the Australia/New Zealand route, transportation demand continued to decline before Christmas holiday. Although there was a certain scale of blank sailing operations on the market, it still couldn’t stop the supply and demand relationship from weakening. This week, the average slot utilization rate ex Shanghai Port remained at about 95%. Further affected by the resumption of operating of specific service routes, most carriers were bearish on market development and reduced their booking rates to maintain market shares. The spot market freight rates continued to fall sharply. On November 22nd, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD926/TEU, significantly down by 12.3% from one week ago.

　　In the South America route, the volume of goods was generally stable but the upward momentum slowed down significantly. This week, the average slot utilization rate ex Shanghai Port was about 95%, and some vessels were still fully loaded. However, due to most carriers were not optimistic about the market outlook, they lowered their quotations to strengthen competiveness. The spot market freight rates continued to fall. On November 22nd, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD1627/TEU, greatly down by 11.5% compared to last week.

　　In the Japan route, cargo volume was stable, and the spot market rate slightly rebounded. On November 22nd, freight index in the China to Japan route quoted 730.50 points, up by 0.5% from previous week.