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China Export Container Transportation Market Weekly Report (July 11-15, 2022)

2022-07-18 17:52 8207 0

Due to the continuous mutation of the Omicron strain, the infectivity of COVID-2019 continues to intensify. As a result, the global daily new cases continue to remain at a high level, as the coronavirus continues to spread. In China, the epidemic prevention and control situation was generally steady, and the recovery of work and production kept positive. The port of Shanghai kept operating well, as the relevant port and shipping enterprises, under the active guidance and support of the transportation authorities, were fully engaged in ensuring a normal production and operation. This week, China's export container shipping market basically remained stable, with slight fall after rise in freight rates in the most freight shipping markets. On July 15, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 4,074.70 points, declining 1.7% compared to the previous period.


European Routes : The data released by the Centre for European Economic Research (ZEW) showed that the ZEW Business Climate Index of the euro zone in July was -51.1, a sharp drop from the previous value and a record low since December 2011. The pace of economic recovery in Europe has slowed down significantly. In addition, the ongoing conflict between Russia and Ukraine has caused Europe to continue to face high inflation; therefore, the future economic recovery will continue to suffer multiple hidden risks. This week, the transportation market basically kept stable with slight fall after rise in market rates. On July 15, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$5,612/TEU, declining 1.5% 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 fluctuated at the top and the spot market booking price has edged downward slightly. On July 15, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$6,268/TEU, declining 1.4% compared with that in the previous period.


North American Routes: The data released by the U.S. Department of Labor showed that the U.S. CPI in June increased by 9.1% compared to that of the same period in last year, much higher than market expectations. As it set a new record in 40 years again, the worry for the recession of U.S. economy grows while the market speculated that the Federal Reserve would continue to significantly raise interest rates to curb inflation . This week, the transportation demand remained steady. The supply and demand basically kept in balance and market rates continued their trend in adjustment. On July 15, 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$6,883/FEU and US$9,534/FEU respectively, declining 3.3% and 0.7% respectively compared to the previous period.


Persian Gulf Routes: After a period of release following the "Ramadan", transport demand has gradually resumed to its normality, so the momentum of demand growth weakened, which resulted that the market continued the adjustment trend. This week, the market freight prices declined.On July 15, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$3,201 /TEU, declining 3.3% compared with that in the previous period.


Australia-New Zealand Routes: As major countries have completely lifted their precautionary measures against the epidemic, the situation is uncertain going forward under the still sever epidemic situation. The demand for all types of household goods in the destination market kept at a high level and the fundamentals of supply and demand were in balance. Spot booking prices for this week has fallen after rise. On July 15, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$3,186/TEU, declining 3.7% compared with the previous period.


South American Routes: The overall situation in the region stood firm recently, but the main economic base of the destination is weak and vulnerable to the impact of large market fluctuations. Currently, the transport market for the Southern America is in its traditional peak season, with transport demand improving in general with a good supply and demand relationship. The spot market booking prices continued to rebound this week. On July 15, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$9,312/TEU, a rise of 4.0% over the previous period.


Japan Routes: The transportation market was generally steady, with market rates rising slightly. On July 15, the freight index of China export to Japan routes was 1,200.30 points.