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China Export Container Transportation Market Weekly Report (July 8, 2022)

2022-07-13 11:06 6969 0

Although the COVID-19 continued to spread worldwide, the epidemic situation in China remained under stable control; therefore, the resumption of work and production was generally positive. The port of Shanghai was operating well, as the relevant port and shipping enterprises, under the active guidance and support of the transport authorities, were fully engaged in production and operation. This week, China's export container shipping market basically remained stable, with an adjustment trend in the freight rates of most ocean freight shipping markets. On July 8, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 4,143.87 points, declining 1.4% compared to the previous period.


European Routes: According to the data released by Eurostat, the Eurozone reconciled CPI rose by 8.6% in June compared to the same month last year, higher than the market expectation and at the highest level in history. As the conflict between Russia and Ukraine continues, commodity prices such as energy and food are hovering at high levels. The inflation in the European region is in a depressed situation and the European Central Bank is about to curb inflation by raising interest rates. Coupled with the high geopolitical risks due to the Russia-Ukraine conflict, the European region faces a test of multiple risks ahead. This week, the transportation market was generally steady, with market rates declining slightly. On July 8, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$5,697/TEU, declining 0.6% compared with the previous period. On the Mediterranean route, the market sentiment was basically synchronized with that of the European routes. The average space utilization rate of vessels in Shanghai port remained at the top and the spot market booking price has been adjusted back slightly. On July 8, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$6,355/TEU, declining 1.0% compared with that in the previous period.


North American Routes: The recent daily new confirmed cases in the United States rebounded under the lenient overall prevention and control over COVID-19, with the cumulative number of confirmed cases and deaths ranking first in the world for a long time. According to data released by the Institute for Supply Management (ISM), the US national factory activity index fell to 53.0 in June, the lowest since June 2020, indicating a significant slowdown in US economic growth going forward. In addition, the Federal Reserve is forced to continue to raise interest rates as an attempt to maintain its control over inflation, which could lead to a stagflationary situation for the US economy in the future. This week, the transportation demand was basically steady. The supply and demand fundamentals remained in balance and market rates continued their trend in adjustment. On July 8, the market freight rates (ocean freight and ocean freight surcharge) for exports from Shanghai port to the basic ports in the western and eastern US were US$7,116/FEU and US$9,602/FEU respectively, declining 3.0% and 0.8% respectively compared to the previous period.


Persian Gulf Routes: After the traditional "Ramadan", transport demand was generally good, but after a period of release, the momentum of demand growth began to weaken, so the market began to enter the adjustment trend. This week, the market freight prices went down.On July 8, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$3,309 /TEU, declining 4.7% compared with that in the previous period.


Australia-New Zealand Routes: The new mutated strain led to a rebound in the local epidemic, but major countries have completely lifted their precautionary measures, so the situation is uncertain going forward. The demand for all types of household goods in the destination market remained at a top level and the fundamentals of supply and demand were steady. Spot booking prices for this week have fallen slightly. On July 8, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$3,309/TEU, declining 0.3% compared with the previous period.


South American Routes: The main countries of destination suffer from weak economic fundamentals and, with the capital outflows by successive interest rate hikes from the Federal Reserve, the market is prone to significant volatility.The transport market is in its traditional peak season, with transport demand continuing to improve with a good supply and demand relationship. The spot market booking prices continued to rebound this week. On July 8, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$8,954/TEU, a rise of 6.8% over the previous period.


Japan Routes: The transportation market was generally steady, with market rates rising slightly. On July 8, the freight index of China export to Japan routes was 1189.10 points.