Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the first week after China National Day， China export box transport market sees market weak overall. As transport demand has not improved， the oversupply of capacity is outstanding. Fright rates in most services dive remarkably comparing with that before the holiday， causing the comprehensive index sliding. On Oct.9， China （Export） Containerized Freight Index （CCFI） issued by Shanghai Shipping Exchange （SSE） quotes 782.73 points， down by 3.9% from last week; while Shanghai （Export） Containerized Freight Index （SCFI） issued by SSE has a week-on-week slip of 6.7% to 533.91 points.

In the Europe service， the recovery economy in the Euro zone is fragile. Although most box liners push out temporary capacity limit measures in early this month， with some even shrinking half of their tonnage， the oversupply of capacity still worsens， and the average slot utilization rate stands only 80%. As a result， box liners have to extend their freight rate increase plan from early to mid this month. Fright rates in most services keep slipping since end Sep.， with some in the Europe service below USD200/TEU， and that in the Mediterranean service around USD100/TEU. On Oct.9， freight rates in the services from China to Europe and Mediterranean quote 858.79 points and 752.23 points， falling by 8.6% and 13.9% from last week.

In the North America service， transport demand is not as strong as that in previous years. The average slot utilization rate in the USWC service keeps at around 90%， and that in the USEC service stands between 85% and 90%. Spot rate keeps falling since early Oct. On Oct.9， fright rates in the services from Shanghai to USWC and USEC （covering seaborne surcharges） quote USD1197/FEU and USD2199/FEU， down by 7.3% and 5.1% from last week respectively.

Cargo volume in the Australia service is weak to rebound，  and the average slot utilization rate slip to the range from 80% to 85%， with some even below 70%. Spot rate tumbles on the low level. On Oct.9， freight rate in the service from Shanghai to Australia service （covering seaborne surcharges） quotes USD334 per TEU， down by 2.9% comparing to one week ago.

In the Persian Gulf service， cargo volume keeps stable this week， and the average slot utilization rate hovers around 85%. Spot rate in some services stops falling and tend to be firm. On Oct.9， freight rate in the Shanghai to Persian Gulf service （covering seaborne surcharges） fell by 3.6% from last week to USD317/TEU. It is said that part of box liners intend to push another round of freight rate increase plan in mid Oct.， with the extent between USD100/TEU and USD150/TEU.

In the South America service， impacted by the weak economy， consumption and the depreciation of exchange in Brazil， transport demand is weak to improve， and the average slot utilization rate. Spot rate declines further， with the lowest even quotes USD50 per TEU. On Oct.9， freight index in the China-South America service quotes 363.23 points， down by 1.5% from one week ago.

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