ransportation Market Generally Remains Stable
Ocean Shipping Rates Fall Back
Despite that the ongoing mutation of the novel coronavirus epidemic still persist in spreading around the world, the global supply chain system has adapted itself well to the current situation. In China, the local outbreak was largely under stable control and all major ports remained in good working order. This week, China's export container shipping market was basically stable, with a continuous adjustment trend in the freight rates of the ocean freight shipping markets. On July 29, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 3887.85 points, declining 2.7% compared to the previous period.
European Routes: Data released by research firm Markit showed that the Eurozone's preliminary composite PMI stood at 49.4 in July, the first time since 2021 that it had fallen below the R&B line. The deterioration in manufacturing output and near-stagnant growth in the service sector were the main causes of the recession. At the same time, the European region will continue to face the test of multiple risks in the future as inflation levels persist at a high level and geopolitical risks are elevated due to the conflict between Russia and Ukraine. This week, the transport market was generally stable, with the adjustment trend of market rates being continued. On July 29, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$5,416/TEU, declining 2.8% compared with the previous period. On the Mediterranean route, the market quotation was basically synchronized with that of the European routes. The average space utilization rate of vessels in Shanghai port continued to remain a high and the spot market booking price continued to fall. On July 29, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$5,971/TEU, declining 3.7% compared with that in the previous period.
North American Routes: According to data released by the U.S. Department of Commerce, the preliminary annualized quarterly value of U.S. real GDP fell 0.9% in the second quarter, the second consecutive quarterly decline, which indicates that the U.S. economy has fallen into a technical recession. In addition, the Federal Reserve continued to take significant interest rate hikes in July to curb high inflation, which is a negative situation for the future US economic recovery. This week, the transportation demand was basically stable. The supply and demand basically kept in balance and market freight rates continued their trend in adjustment. On July 29, 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$6,694/FEU and US$9,348/FEU respectively, declining 0.4% and 1.0% respectively compared to the previous period.
Persian Gulf Routes: The transportation demand has returned to its normal level while the demand growth has not gained enough momentum. The market freight rate continued to retreat from the higher level in the previous period and the spot booking price declined this week. On July 29, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$2,789 /TEU, declining 6.1% compared with that in the previous period.
Australia-New Zealand Routes: The novel coronavirus mutant strain led to a significant rebound in the local outbreak, and major countries once again faced a critical situation with the epidemic. 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 basically stable. The spot booking prices for this week continued to decline after rise. On July 29, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$2,997/TEU, declining 4.6% compared with the previous period.
South American Routes: The economy of the region has recently remained stable, but against the backdrop of successive interest rate hikes by the Federal Reserve, it is vulnerable to significant market fluctuations and will still face more challenges in the future. As the transport market of South America routes is currently in the traditional peak season, the transport demand is performing well with a good supply-demand relationship, resulting in a decline in market rates after several consecutive weeks of increase. On July 29, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$9,439/TEU, a decline of 0.5% compared with that of the previous period.
Japan Routes: The transportation market was generally positive, with market rates rising slightly. On July 29, the freight index of China export to Japan routes was 1,208.25 points.