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CCFI Commentary Issue 42

China export box transport market is recovering, freight rates in the Europe, Mediterranean, and North America routes slip continuously and slowly. However, freight rates in the Australia/New Zealand and South America routes have a large increase, spurring the comprehensive index growing slightly. On Oct.20, Shanghai Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 747.38 points, up by 3.1 against one week ago.

In the Europe route, despite of ceasing of some services, the average slot utilization rate declines to below 90%. Most box liners hold wait-and-see attitude and maintain freight rate, leading spot rate has a narrow slip. On Oct.20, freight rates in the routes from Shanghai to Europe and Mediterranean (covering seaborne surcharges) quote USD681/TEU and USD646/TEU, down by 0.7% and 0.9% from one week ago.

In the North America route, the consumption demand increases in the destination. In the USWC service, there are more than one service cancel the plan to call Chinese ports this week, which results in the overall capacity declines significantly and the average slot utilization rate leaving off Shanghai Port remains above 95%, with some even 100%. Supported by good fundamentals, the slip of spot rate has been alleviated. On Oct.20, freight rate in the route from Shanghai to USWC (covering seaborne surcharges) quotes USD1366/FEU, almost in line with that one week ago.

In the USEC service, as the delivery of large vessels, the demand/supply condition worsens, and the average slot utilization rate keeps between 90%-100%. Some box liners decrease booking rate in order to increase cargo volume, leading spot rate falling slightly. On Oct.20, freight rate in the route from Shanghai to USEC (covering seaborne surcharges) has a week-on-week slip of 2.6% to USD1755/FEU.

In the Persian Gulf route, transport demand keeps healthy, and the average slot utilization rate mounts to above 95%. Due to the short supply of ship space, most box liners raise booking rate for a second time, leading spot rate recovering continuously. On Oct.20, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quote USD570/TEU, surging by 39.0% from one week ago.

The newly released western Pacific/Melbourne consumer confidence index quotes 101.4, a growth of 3.5 points over the previous period, which indicates a rise in local consumer and improvement of transport demand. This week, the average slot utilization rate sustains above 955,with some even full-loaded. Supported by the good performance of market, most box liners maintained their freight rate, and the average freight rate continues to rise. On Oct.20, freight rate in the Shanghai-Australia/New Zealand route (covering seaborne surcharges) quotes USD1052/TEU, up by 3.1% against one week ago.

Transport demand keeps stable in the Japan route, where spot rate shakes. On Oct.20, freight index in the China-Japan route quotes 669.75 points.

Source: chineseshipping
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