Spot market rates hiked on most service routes

　　In this week, the overall market situation of China's export container shipping market was generally good. Peak shipments before New Year Holiday appeared on most service routes.  Spot market rates thus hiked by carriers’ new round of GRI which led the comprehensive index to rise. On December 27th, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 958.57 points, up by 5.9% compared with previous week.

　　In the Europe route, according to data released by ZEW, the ZEW economic sentiment index for the Eurozone in December was 11.2, an increase of 12.2 points from the previous month. Transportation demand has grown significantly as the peak season was coming, which supported the improvement of market fundamentals. This week, the average slot utilization rate ex Shanghai Port has remained above 95% with some voyages being fully loaded. The spot market rate increased due to carriers’ new round of GRI. On December 27th, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD1027/TEU, up by 8.8% from one week ago. In the Mediterranean route, the overall market was almost similar to that of European route. This week, the average slot utilization rate ex Shanghai Port has risen to 95%. The relationship between supply and demand was healthy. Spot market rate continued to rise. On December 27th, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD1172/TEU, up by 6.9% from one week ago.

　　In the North America route, the cargo volume performed better and better when the peak season was coming. This week, the average slot utilization rate ex Shanghai Port stood around 95%. In addition, China and USA has reached the first phase agreement, which boosted the market confidence. Most carriers tried to increase their booking rates and spot market rate rebounded. On December 27th, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) were quoted USD1434/FEU and USD2562/FEU, up by 6.9% and 4.5% respectively compared to last week.

　　In the Persian Gulf route, the transportation demand has performed well. Some carriers still limited their scale of capacity supply through blank sailing operations which helped to maintain the supply and demand relationship in healthy level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and some vessels departed with full loads. Supported by this, the spot market rate continued to rise. On December 27th, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) was quoted USD1172/TEU, up by 1.2% from previous week.

　　In the Australia/New Zealand route, the transportation demand increased during the pre-holiday peak season. Coupled with capacity contracting measures from carriers, the supply and demand relationship was effectively improved. This week, the average slot utilization rate ex Shanghai Port rose to more than 80%. Spot market rate rebounded accordingly by carriers’ new GRI plan. On December 27th, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD929/TEU, rocketed up by 20.0% from one week ago.

　　In the South America route, the transportation demand increased slightly before the New Year holiday. Carriers continued to take measures to limit the scale of capacity supply. The relationship between supply and demand was good. This week, the average slot utilization rate ex Shanghai Port remained at around 95%. Spot market rates increased. On December 27th, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD2236/TEU, hiked by 11.8% compared to last week.

　　In the Japan route, cargo volume was stable, and the market freight rate slightly increased. On December 27th, freight index in the China to Japan route quoted 734.67 points, slightly up by 0.8% from previous week.