Shanghai Shipping Exchange Reports Slight Insufficiency in Export Container Transportation Demand
August 26, 2022
The Shanghai Shipping Exchange has released its weekly report on the export container transportation market, revealing that China’s export container transportation market has remained relatively stable this week, albeit with slightly insufficient transportation demand. The freight rates for different routes experienced both increases and decreases, resulting in a slight decline in the composite index. On August 25, the Shanghai Export Container Composite Freight Index, released by the Shanghai Shipping Exchange, stood at 1013.78 points, marking a 1.7% decrease from the previous period.
In terms of the European route, it has been observed that the transportation demand has reached the end of its peak season. The growth in transportation demand has been sluggish, and the supply of transportation capacity continues to be sufficient. Consequently, the supply and demand market is currently facing an oversupply situation, leading to a continued decrease in market freight rates. As of August 25, the freight rate, which includes sea freight and sea freight surcharges, for exports from Shanghai Port to the European basic port market was recorded at US$802/TEU, reflecting a 5.9% decrease from the previous period.
The Mediterranean route follows a similar trend as the European route, with the freight rate in the transportation market experiencing a slight decline. The spot booking price also decreased slightly. On August 25, the freight rate for exports from Shanghai Port to the Mediterranean basic port market reached US$1,455/TEU, marking a 3.0% decrease from the previous period.
Meanwhile, the transportation demand for the North American route has remained stable, resulting in a balanced supply and demand market. The market freight rate has shown flat fluctuations. As of August 25, the freight rates for exports from Shanghai Port to the basic port markets of West America and East America stood at US$2,006/FEU and US$3,052/FEU, respectively. There was a slight increase of 0.1% for West America, while East America experienced a decrease of 1.9% from the previous period.
In the Persian Gulf route, the growth in transportation demand has slowed down, but the supply and demand fundamentals remain favorable. As a result, the market freight rate has recorded a slight increase. On August 25, the freight rate for exports from Shanghai Port to the Persian Gulf basic port market reached US$914/TEU, showing a 0.7% increase from the previous period.
On the Australia-New Zealand route, the market demand has been exhibiting a rapid growth trend. The supply-demand relationship has been stable and improving, leading to a sharp increase in the market freight rate for this week. As of August 25, the freight rate for exports from Shanghai Port to the basic port market of Australia and New Zealand reached US$520/TEU, marking a significant increase of 14.8% over the previous period.
Conversely, the South American route is facing a lack of growth momentum in transportation demand, and the supply and demand fundamentals are not satisfactory. As a result, the spot booking price has continued to decline this week. On August 25, the freight rate for exports from Shanghai Port to the basic port market in South America stood at US$2,107/TEU, reflecting a 7.8% decrease from the previous period.
As for the Japan route, the transportation demand is relatively stable, leading to a slight increase in the market freight rate. On August 25, the freight index for the route from China to Japan reached 783.26 points.
These developments in the export container transportation market signify a slightly insufficient transportation demand this week, resulting in a slight decline in the composite index, as reported by the Shanghai Shipping Exchange.
(Source: Jiemian News)
(Article source: Interface News)
Original title: Shanghai Shipping Exchange: The demand for export container transportation is slightly insufficient this week, and the composite index fell slightly.
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