(CCFI Commentary in Issue 34, 2011)
This week, the China's containerized transport market showed upward, with the composite freight index increased slightly. On August 19th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 990.97 points, up 0.8% from last week; while the Shanghai Containerized Freight Index came out at 1064.10 points, up 3.0% from last week.
In Europe service the cargo volume kept at the same level in last week and the slot utilization hovered around 90%. Cargo exports in Southern China showed specifically good and the freight rate maintained steady. On August 19th, the freight index of the Europe service was 1107.84 points, basically equaling to last week. The conventional peak season enhanced the cargo volume of Mediterranean service as some of the voyages ran out of slots, with the slot utilization averaged above 95%. Freight rate uplifted as well.
On August 19th, the freight index of the Mediterranean service was 1322.18 points, up 2.3% from last week.
In North America service, the cargo level was perceived stable in US west coast service as the slot utilization generally stayed at 85%. While in US east coast the demand for capacity apparently thrived, buoying up the slot utilization to above 95% with a lot of voyages reported laden. Insiders indicated an uncertainty of the effects of carriers' PSSs, with the biggest increase at USD 400/FEU, announced on August 15th due to the gloomy expectation of the market. So carriers were conservative about the restoration as well, pricing the average of the PSSs at USD 200/FEU ~ USD 300/FEU. On August 19th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to US west coast and US east services were USD 1769/FEU and USD 3343/FEU, respectively up 11.3% and 6.8% from last week.
In Australia and Singapore service, thanks to the approaching conventional peak season at August, the propelling cargo volume pushed the slot utilization up above 95%, with none slot available reported in lots of voyages. Several lines had imposed PSSs, around USD 150/TEU ~ USD 200/TEU, in the middle of the month. On August 19th, the freight index of the Australia and Singapore service was 931.77 points, up 0.6% from last week.
According to the pundits, new capacity added in next week would be very likely to break the current market balance and curb the booming trend of the freight rate.
In Persian Gulf service the ongoing Ramadan was still the main reason depressing the freight rate, where the slot utilization stood at 90%. On August 19th, the freight rate (including ocean freight and surcharges) of the voyages from Shanghai to base ports in Persian Gulf service was USD 937/TEU, down 1.7% from last week.
In South America service the cargo volume was witnessed steady. However, the fact for the freight restorations in previous weeks outpacing the corresponding cargo volume lowered the freight rate. On August 19th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in South America quoted USD 2120/TEU, down 1.3% from last week.
In Japan service the market hold still as the slot utilization revealed 75%, which slightly climbed up from last week. On August 19th, the freight index of the Japan service issued by SSE was 808.76 points, up 1.1% from last week.
viernes, 26 de agosto de 2011
lunes, 22 de agosto de 2011
Asia-US west coast rates lead the peak season surge with 11.3pc hike
FREIGHT rates on all major trades from China continued to climb last week with the biggest jump occurring on the US west coast route where rates increased 11.3 per cent from the previous week to US$1,769 per FEU, according to Shanghai Containerised Freight Index (SCFI) data.
UK-based shipbroker ACM Shipping reported that rate hike to the US west coast was nearly half the amount announced by the Transpacific Stabilisation Agreement for this year's peak season surcharge.
But the increases did not stop there as rates to the US east coast rose by 6.8 per cent week-to-week to $3,343 per FEU.
Following on from a solid 5.5 per cent increase the week before, Asia-Med rates rose again last week by 2.9 per cent to $1,049 per TEU, while Asia-Europe rates were up a marginal 0.5 per cent to $832 per TEU.
At their current low levels it looks as though it will be some time before rates get back to the breakeven level on the Asia-Europe trade, but the fact that rates are rising is positive, albeit by only a small amount, is still positive.
OOCL to raise Asia-Europe westbound rate US$275/TEU from September 1
HONG KONG's Orient Overseas Container Line (OOCL) is to raise its general rate for cargo for westbound traffic from Asia to Europe by US$275 per cent TEU from September 1, the company announced.
The freight rate will apply to shipments from Far East to the Middle East to North Europe, the Mediterranean and the Black Sea.
The increase is necessary to cover basic operating costs and provide a viable service level, said the company in a notice to trade
The freight rate will apply to shipments from Far East to the Middle East to North Europe, the Mediterranean and the Black Sea.
The increase is necessary to cover basic operating costs and provide a viable service level, said the company in a notice to trade
CCFI Commentary Issue 33, 2011
Weekly Report of China Export Container Transport Market(CCFI Commentary in Issue 33, 2011)
This week, the China’s containerized transport market maintained firm, with the composite index slightly increased. On August 12th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.52 points, up 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1033.24 points, up 1.4% from last week.
In Europe service this week, the cargo volume hiked steadily, buoying the slot utilization up to above 90% with some voyages running out of slots. The thriving market quotation stabilized the freight rate after its previous upturn, while in some voyages the price continued went up with the upward trajectory of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe service reported USD 828/TEU, up 0.6% from last week. In Mediterranean service, the ongoing conventional peak season stimulated the slot utilization to above 95%, with the freight rates over the west Mediterranean voyages climbed up to USD 1050/TEU. On August 12th, the freight rate (including ocean freight and surcharges) of the voyages to Mediterranean service was USD 1019/TEU, up 5.5% from last week.
In North America, a sharp differential turned up between the west- and east-bound services. In US west coast service the cargo remained sluggish and the slot utilization stood at about 85%. Freight rate kept dipping, while for some voyages the price had even fallen to USD 1300/FEU, which is near half of what it was a year earlier. On August 12th, the freight index of the US west coast service reported 903.59 points, down 1.7% from last week. The US east coast service was seen bullish, giving the limited capacity influx, sound supply-demand relation, and a 95% slot utilization, which in some cases it was 100%. On August 12th, the freight index of the US east coast service was 1191.18 points, basically equaling to last week. Thanks to the coming conventional peak season, carriers were poised to announce a USD 400/FEU peak season surcharge since August 15th. However, people were afraid of the plan’s implementation as the weak cargo volume and the excessive capacity could not be ignored. As a result, some were reported delaying the announcement to 22nd and cutting the price added.
However, whether the implementation will be fulfilled was conceived as an uncertainty by the market citing the weak cargo volume and the excessive capacity.
In Australia and Singapore service, the approaching conventional peak season left the cargo volume in a strong upward momentum, where the slot utilization hovering above 95% and more voyages were reported laden. Freight rate kept ascending because of the improved supply-demand relations. On August 12th, the freight rate (ocean freight plus surcharges) of the Australia and Singapore service appeared USD 833/TEU, burst by 16.7% from last week. Considering the outstanding performance of the cargo volume, carriers tended to uplift the freight rate once again by about USD 200/TEUl.
In Persian Gulf service, inflicting by the Ramadan, the cargo volume kept slipping and the slot utilization revealed at 90%. Freight rate kept the slumping behavior of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service quoted USD 953/TEU, down 0.7% from last week. As the demand of the capacity generally restrained, some carriers would cut their capacity by switching small tonnages into larger ones.
This week, the China’s containerized transport market maintained firm, with the composite index slightly increased. On August 12th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.52 points, up 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1033.24 points, up 1.4% from last week.
In Europe service this week, the cargo volume hiked steadily, buoying the slot utilization up to above 90% with some voyages running out of slots. The thriving market quotation stabilized the freight rate after its previous upturn, while in some voyages the price continued went up with the upward trajectory of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe service reported USD 828/TEU, up 0.6% from last week. In Mediterranean service, the ongoing conventional peak season stimulated the slot utilization to above 95%, with the freight rates over the west Mediterranean voyages climbed up to USD 1050/TEU. On August 12th, the freight rate (including ocean freight and surcharges) of the voyages to Mediterranean service was USD 1019/TEU, up 5.5% from last week.
In North America, a sharp differential turned up between the west- and east-bound services. In US west coast service the cargo remained sluggish and the slot utilization stood at about 85%. Freight rate kept dipping, while for some voyages the price had even fallen to USD 1300/FEU, which is near half of what it was a year earlier. On August 12th, the freight index of the US west coast service reported 903.59 points, down 1.7% from last week. The US east coast service was seen bullish, giving the limited capacity influx, sound supply-demand relation, and a 95% slot utilization, which in some cases it was 100%. On August 12th, the freight index of the US east coast service was 1191.18 points, basically equaling to last week. Thanks to the coming conventional peak season, carriers were poised to announce a USD 400/FEU peak season surcharge since August 15th. However, people were afraid of the plan’s implementation as the weak cargo volume and the excessive capacity could not be ignored. As a result, some were reported delaying the announcement to 22nd and cutting the price added.
However, whether the implementation will be fulfilled was conceived as an uncertainty by the market citing the weak cargo volume and the excessive capacity.
In Australia and Singapore service, the approaching conventional peak season left the cargo volume in a strong upward momentum, where the slot utilization hovering above 95% and more voyages were reported laden. Freight rate kept ascending because of the improved supply-demand relations. On August 12th, the freight rate (ocean freight plus surcharges) of the Australia and Singapore service appeared USD 833/TEU, burst by 16.7% from last week. Considering the outstanding performance of the cargo volume, carriers tended to uplift the freight rate once again by about USD 200/TEUl.
In Persian Gulf service, inflicting by the Ramadan, the cargo volume kept slipping and the slot utilization revealed at 90%. Freight rate kept the slumping behavior of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service quoted USD 953/TEU, down 0.7% from last week. As the demand of the capacity generally restrained, some carriers would cut their capacity by switching small tonnages into larger ones.
jueves, 28 de julio de 2011
CCFI Commentary Issue 29, 2011
Weekly Report of China Export Container Transport Market
This week, the China’s containerized transport market plunged slightly, while the comprehensive index decreased as well.
On July 15th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.84 points, down 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1016.87 points, down 1.3% from last week.
In Europe service, the market carried on the trend of last week as the slot utilization stayed above 90%. But because of the ongoing capacity glut and the sliding freight rate, the service was regard less prosperous than it was a year earlier. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe quoted USD 809/TEU, down 1% from last week. Some carriers were said to announce a peak season surcharge in August, but the plan seemed hard to implement because of the surplus fleet. While in Mediterranean the cargo volume tumbled marginally, causing a week-on-week descent over the slot utilization, which is about 90% currently. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Mediterranean showed USD 926/TEU, down 1.6% from last week.
In North America service this week the cargo volume kept at a high level as there’s a 95% slot utilization in US east coast, where some vessels running out of slots; while the US west coast service behaved not bad as well. Since the amount of fleet didn’t swung much, freight rate barely changed. On July 15th, the freight indices of the US west coast and US east coast services were 947.93 points and 1194.57 points, both grossly equaling to last week. The jobless rate of US had been reported soaring for 3 consecutive months to 9.2%, which would conceivably weaken not only its resident’s purchasing power but also the willingness, with a further impact over the procurement demand during this peak season. Besides, people could also conclude a pessimistic attitude from the carriers given the postponement of the PPS originally planned to impose on July 15th to after August 1st.
In Japan service there wasn’t much change over the cargo volume, where the slot utilization hovered at 70%. Freight rate maintained steadily. On July 15th, the freight index of the Japan service issued by SSE reported 789.06 points, basically the same as last week.
The approaching Ramadan was continuously pushing down the cargo volume exporting to the Persian Gulf with the slot utilization standing at 90%, and freight rate will apparently keep sluggish. It was said that carriers would like to have some surcharge to offset the bearish freight rate, but there’s no indication of when. On July 15th, the freight rate (ocean freight plus surcharges) for the voyages heading to Persian Gulf quoted USD 1005/TEU, down 1.1% from last week.
In Australia and Singapore service the cargo volume was seen firm and the slot utilization reveal at 90%. Freight rate was slightly pushed up by some carriers. Since the market was switching from the slack season to a peak period, cargo volume was estimated to hold still in July and it won’t start rallying until late August. On July 15th, the freight index of the Australia and Singapore service reported 926.73 points, up 1.1% from last week. Owing to the over-deployed capacity, the service proved less profitable than last year.
This week, the China’s containerized transport market plunged slightly, while the comprehensive index decreased as well.
On July 15th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.84 points, down 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1016.87 points, down 1.3% from last week.
In Europe service, the market carried on the trend of last week as the slot utilization stayed above 90%. But because of the ongoing capacity glut and the sliding freight rate, the service was regard less prosperous than it was a year earlier. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe quoted USD 809/TEU, down 1% from last week. Some carriers were said to announce a peak season surcharge in August, but the plan seemed hard to implement because of the surplus fleet. While in Mediterranean the cargo volume tumbled marginally, causing a week-on-week descent over the slot utilization, which is about 90% currently. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Mediterranean showed USD 926/TEU, down 1.6% from last week.
In North America service this week the cargo volume kept at a high level as there’s a 95% slot utilization in US east coast, where some vessels running out of slots; while the US west coast service behaved not bad as well. Since the amount of fleet didn’t swung much, freight rate barely changed. On July 15th, the freight indices of the US west coast and US east coast services were 947.93 points and 1194.57 points, both grossly equaling to last week. The jobless rate of US had been reported soaring for 3 consecutive months to 9.2%, which would conceivably weaken not only its resident’s purchasing power but also the willingness, with a further impact over the procurement demand during this peak season. Besides, people could also conclude a pessimistic attitude from the carriers given the postponement of the PPS originally planned to impose on July 15th to after August 1st.
In Japan service there wasn’t much change over the cargo volume, where the slot utilization hovered at 70%. Freight rate maintained steadily. On July 15th, the freight index of the Japan service issued by SSE reported 789.06 points, basically the same as last week.
The approaching Ramadan was continuously pushing down the cargo volume exporting to the Persian Gulf with the slot utilization standing at 90%, and freight rate will apparently keep sluggish. It was said that carriers would like to have some surcharge to offset the bearish freight rate, but there’s no indication of when. On July 15th, the freight rate (ocean freight plus surcharges) for the voyages heading to Persian Gulf quoted USD 1005/TEU, down 1.1% from last week.
In Australia and Singapore service the cargo volume was seen firm and the slot utilization reveal at 90%. Freight rate was slightly pushed up by some carriers. Since the market was switching from the slack season to a peak period, cargo volume was estimated to hold still in July and it won’t start rallying until late August. On July 15th, the freight index of the Australia and Singapore service reported 926.73 points, up 1.1% from last week. Owing to the over-deployed capacity, the service proved less profitable than last year.
miércoles, 27 de julio de 2011
Falling freight rates, increasing lay-ups depress charter market prices
THE charter market for containerships is slipping fast in the face of sliding freight rates and increasing lay-ups, according to Alphaliner analysts, which adds that current trends indicate charter rates will fall even more by the end of the year.
Maersk, MSC, CMA CGM continue to be active charterers, but CSAV is re-chartering surplus ships. Alphaliner says CSAV's continuous cutting of services will result in the Chilean carrier removing 100,000 TEU from its slot capacity by the end of August.
Further capacity could be lost if rates continue to fall. The top-four charterers - Maersk, MSC, CMA CGM and CSAV - account for more than 25 per cent of all fixtures. Any slowdown by any of them will have a significant impact on the market, it said.
Because of uncertain market conditions, more charterers are unwilling to sign longer-term deals. This trend is aggravated by the fact that owners have had to accept short charters in an increasingly fragile market as demand weakens.
Both the number of fixtures and the fixture periods have declined significantly since April. Charter rates have dropped by 11 per cent on average in the last three months, with all size segments affected.
Rates are likely to drop in coming months as demand slackens. InJune, the number of reported fixtures reached at the lowest level this year. The average duration of fixtures was cut from 10 months at the beginning of this year to seven months currently.
Maersk, MSC, CMA CGM continue to be active charterers, but CSAV is re-chartering surplus ships. Alphaliner says CSAV's continuous cutting of services will result in the Chilean carrier removing 100,000 TEU from its slot capacity by the end of August.
Further capacity could be lost if rates continue to fall. The top-four charterers - Maersk, MSC, CMA CGM and CSAV - account for more than 25 per cent of all fixtures. Any slowdown by any of them will have a significant impact on the market, it said.
Because of uncertain market conditions, more charterers are unwilling to sign longer-term deals. This trend is aggravated by the fact that owners have had to accept short charters in an increasingly fragile market as demand weakens.
Both the number of fixtures and the fixture periods have declined significantly since April. Charter rates have dropped by 11 per cent on average in the last three months, with all size segments affected.
Rates are likely to drop in coming months as demand slackens. InJune, the number of reported fixtures reached at the lowest level this year. The average duration of fixtures was cut from 10 months at the beginning of this year to seven months currently.
miércoles, 6 de julio de 2011
Capacity growth to reach 8.8% in 2011
Cellular containership capacity is expected to grow by an average annual rate
of 8.7% over the next two years, with 1.26 Mteu due to be added in 2011 and
1.33 Mteu in 2012, based on Alphaliner projections. These figures follow the
1.20 Mteu which have been added to the fleet in 2010. Although the fleet increases
over 2011-2012 will not reach the figures recorded in 2006-2008,
when an average of 1.37 Mteu per year were added, the level of capacity additions
remains a key concern for the industry.
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A large part of the new capacity added in 2010 was absorbed by the increased
demand that was caused by the rapid economic recovery. Throughput volumes
at the world’s five busiest container ports grew by 18% on average in the first
three quarters of 2010. However, the average growth at these ports has slowed
to 8% in the fourth quarter, with the trend towards slower growth likely to persist
into 2011.
The slowing of the demand in the fourth quarter has already started to hurt carriers’
load factors. Alphaliner estimates of vessel utilization levels on the Far
East-US and Far East-Europe routes dropped to only 80% in December, the lowest
levels recorded since May 2009. Attention must now be shifted to utilization
levels in the next two months, as these will determine the direction of
freight rates after the Lunar New Year celebrations in the Far East.
Aphaliner
of 8.7% over the next two years, with 1.26 Mteu due to be added in 2011 and
1.33 Mteu in 2012, based on Alphaliner projections. These figures follow the
1.20 Mteu which have been added to the fleet in 2010. Although the fleet increases
over 2011-2012 will not reach the figures recorded in 2006-2008,
when an average of 1.37 Mteu per year were added, the level of capacity additions
remains a key concern for the industry.
A large part of the new capacity added in 2010 was absorbed by the increased
demand that was caused by the rapid economic recovery. Throughput volumes
at the world’s five busiest container ports grew by 18% on average in the first
three quarters of 2010. However, the average growth at these ports has slowed
to 8% in the fourth quarter, with the trend towards slower growth likely to persist
into 2011.
The slowing of the demand in the fourth quarter has already started to hurt carriers’
load factors. Alphaliner estimates of vessel utilization levels on the Far
East-US and Far East-Europe routes dropped to only 80% in December, the lowest
levels recorded since May 2009. Attention must now be shifted to utilization
levels in the next two months, as these will determine the direction of
freight rates after the Lunar New Year celebrations in the Far East.
Aphaliner
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