Weekly Report of China Export Container Transport Market

(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.