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CCFI Commentary Issue 43: Cargo volume and Rate Rising

China export box transport market recovers in general, where box liners carry out freight rate increase plan successfully, with the comprehensive index rising. On Oct.27, Shanghai (Export) Containerized Freight Index (SCFI) issued by Shanghai Shipping Exchange (SSE) quotes 806.81 points, rising by 8.0% from one week ago.

As the recovery of factories, cargo volume improves in the Europe route, where the average slot utilization rate climbs to around 95% and the demand/supply condition tends to be balanced. Most box liners are optimistic about the market before the Christmas Day and hike booking rate with the extent of between USD200-300/TEU. On Oct.27, freight rate in the Shanghai-Europe route (covering seaborne surcharges) quote USD744/TEU, a week-on-week increase of 9.3%.

In the North America route, local consumption strengthens, which boosts transport demand. In the USWC service, the whole capacity keeps at the lower level and the average slot utilization rate is 100% almost, with many box liners continuing to increase freight rate. On Oct.27, freight rate in the route from Shanghai to USWC (covering seaborne surcharges) quotes USD1512/FEU, jumping by 10.7% comparing with one week ago. In the USEC service, the demand/supply condition is healthy, and the average slot utilization rate leaving off Shanghai Port is around 95%, with some even full-loaded, with spot rate rising. On Oct.27, freight rate in the route from Shanghai to USEC (covering seaborne surcharges) quotes USD2075/TEU, surging by 18.2% from one week ago.

In the Persian Gulf route, transport demand is stable. Under the support of some box liners limiting capacity, the average slot utilization rate leaving off Shanghai Port sustains around 95%. Due to the different strategies among box liners, freight rates ups and downs, but rises slightly overall. On Oct.27, freight rate in the Shanghai-Persian Gulf route (covering seaborne surcharges) quotes USD576/TEU, up by 1.1% against one week ago.

In the Australia/New Zealand route, cargo volume keeps steady, and the average slot utilization rate is nearly 100%. Based on the good market fundamentals, freight rate keeps stable basically, and spot rate continues to rise. On Oct.27, freight rate in the Shanghai- Australia/New Zealand route (covering seaborne surcharges) quotes USD1100/TEU, up by 4.6% from one week ago.

Transport demand is stable in the South America route, where the average slot utilization rate sustains above 95%, with some even full-loaded. Most box liners plan to increase freight rate in early Nov., leading spot rate growing fast. On Oct.27, freight rate in the Shanghai-South America route (covering seaborne surcharges) quotes USD2929/TEU, up by 15.1% from one week ago.

Transport demand keeps stable in the Japan route, where spot rate fluctuates. On Oct.27, freight index in the China-Japan route quotes 672.82 points.

http://info.chineseshipping.com.cn/eninfo/ENMarketReport/201711/t20171106_1296341.shtml

Source: chineseshipping
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