Weekly Commentary on China Containerized Transportation

Zhu+Pengzhou

In the week ending Jan.23， China export box market sees transport demand rise， but fright rates go uneven， with index tumbling slightly. On Jan.23， China （Containerized） Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quote 1057.48 points， keeping in line with that last week; while Shanghai （Containerized） Freight Index （SCFI） issued by SSE mounts by 3.4% from one week ago to 1091.48 points.

In the Europe service， transport demand rebounds. However， because liner alliances start to adjust capacity layout， leading capacity in the service in a sustained growth. The average slot utilization rate in this service hovers at around 90%， with spot rate stable. On Jan.23， freight indices in the services from China to Europe and Mediterranean quote 1316.78 points and 1441.55 points， both almost unchanged from last week. Furthermore， since that many mega vessels are lunched more frequently， most box liners hold negative attitude towards the post market. In order to increase profit rate and freight rate competition space in the future， most box liners start to hike freight rate by following market trend， and spot rate is boosted.On Jan.23， freight rates in the Shanghai-Europe and Mediterranean services （covering seaborne surcharges） quote USD1256 per TEU and USD1460 per TEU， surging 24.6% and 7.4% week on week.

In the North America service， benefited from the good economy condition and great spending power in the U.S.， transport demand keeps on the relatively high level， with the market condition upward. In the USWC service， transport demand is dragged by the less effective ports. Nevertheless， the rising transport demand causes operation cost rise. With the tightened supply of vessel space， most box liners choose to sustain freight rate， finally， spot rate decreasing slightly. On Jan.23， freight rates in the Shanghai-USWC service （covering seaborne surcharges） quotes USD2063 per FEU， down by 1.2% against one last ago. In the USEC service， boosted by the stable capacity supply and transport demand growth， the average slot utilization rate keeps at above 95%， with more than one service full-loaded. On Jan.23， freight rate in the Shanghai-USEC service （covering seaborne surcharges） quoted USD 4748 per TEU， almost in line with that last week.

In the Australia service， transport demand is flat， despite capacity decreasing after box liners ceasing services in successions， excess vessel space still worsens， causing the average slot utilization rate at 85%. Affected by the worsened demand/supply condition， spot rate falls somehow. On Jan.23， freight rate in the Shanghai-Australia service （covering seaborne surcharges） quotes USD739 per TEU， down by 1.3% from one week ago.

In the Persian Gulf/Red Sea service， transport demand has no evident increase， and capacity is not limited effectively， causing the average slot utilization rate keeping at around 85%. On the ground that the market is not improved remarkably， most box liners cancel the late Jan. freight rate plan， with spot rate downward. On Jan.23， freight index in the Shanghai-Persian Gulf/Red Sea service quotes 1042.38 points， down by 2.9% from one week ago.

Cargo volume keeps firm in the Japan service， where the average slot utilization rate sustains at around 60%， with spot rate stable. On Jan.23， freight index in the China-Japan service quotes 646.56 points， almost in line with that last week.

（Please contact the Information Dept of SSE for more details.）endprint