Spot market rates continued to rise supported by pre-holiday rush cargoes

　　In this week, the supply and demand relationship of China's export container shipping market was generally strong. The pre-holiday rush cargoes helped the total transportation demand maintain at high level. Carriers increased their quotations again as tightening of available space, driving the comprehensive index to rise. On January 3rd, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quoted 1022.72 points, up by 6.7% compared with previous week.

　　In the Europe route, the shipping market was in the traditional peak season before the "Spring Festival". The cargo volume continued to increase which led to a tight situation of space. This week, the average slot utilization rate ex Shanghai Port was almost close to 100%, and some voyages were already out of book. Affected by this, some carriers once again raised the freight rate at the beginning of the month, and the spot market booking rate hiked significantly. On January 3rd, freight rate in the route from Shanghai to Europe (including seaborne related surcharges) was quoted USD1124/TEU, up by 9.4% from one week ago. In the Mediterranean route, the market performance was stable. Some carriers have successively introduced blank sailing operations which further decreased the capacity supply from the market. Most vessels were departed with full loads. The spot market rate rose slightly. On January 3rd, freight rate in the route from Shanghai to Mediterranean (including seaborne related surcharges) was quoted USD1185/TEU, up by 1.1% from one week ago.

　　In the North America route, with the preliminary agreement of the first stage of the Sino-US trade negotiations, the cargo volume boosted steadily and the market welcomed a wave of transportation peak. At the same time, some carriers continued their blank sailing operations to balance the supply and demand and market fundamentals were improved. This week, the average slot utilization rate ex Shanghai Port to USWC and USEC was above 95% and some vessels departed with full loads. Supported by the strong fundamentals, some carriers followed up the GRI to increase their booking rates, and the spot market freight rate rose. On January 3rd, freight rates in the routes from Shanghai to USWC and USEC (including seaborne related surcharges) were quoted USD1636/FEU and USD2808/FEU, up by 14.1% and 9.6% respectively compared to last week.

　　In the Persian Gulf route, the transportation demand was steadily increasing. As carriers maintained their blank sailing operations, the total scale of capacity supply was effectively limited within reasonable level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and most vessels were fully loaded. As there were more carriers who increased their quotations than those who lowered their freight rates, the spot market rate kept rising. On January 3rd, freight rate in the Shanghai to Persian Gulf route (contains seaborne related surcharges) was quoted USD1218/TEU, up by 3.9% from previous week.

　　In the Australia/New Zealand route, the cargo volume continued to restore. Carriers have expanded the scale of blank sailing operations and the relationship between supply and demand has gradually improved. This week, the average slot utilization rate ex Shanghai Port was around 90%. Most carriers maintained their quotations on the hiked–basis in last week. Spot market rate slightly increased by a few carriers’ following of the GRI plans. On January 3rd, freight rate in the Shanghai to Australia/New Zealand route (contains seaborne related surcharges) quoted USD949/TEU, up by 2.2% from one week ago.

　　In the South America route, the performance of transportation demand was stable and the relationship between supply and demand kept in healthy level. This week, the average slot utilization rate ex Shanghai Port was above 95%, and most vessels departed with full loads. The spot market rate fluctuated after rising in last week and fell slightly. On January 3rd, freight rate in the Shanghai to South America route (contains seaborne related surcharges) quoted USD2183/TEU, down by 2.4% compared to last week.

　　In the Japan route, cargo volume was stable as the freight rate. On January 3rd, freight index in the China to Japan route quoted 731.59 points, slightly up by 0.8% from previous week.