Transportation Market Basically Remained Stable
Ocean Shipping Rates Have FallenBack
This week, China's export container shipping market was basically stable, with major ports remaining in good operation and ocean liner market rates falling back. On August 12, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 3,562.67 points, declining 4.7% compared to the previous period.
European Routes: According to the latest data released by Eurostat, retail sales in the Eurozone fell by 3.7% in June compared to the same month last year. The decline in consumption data suggests a poor outlook for economic recovery. In addition, the health system in the region is still being tested by the new crown epidemic and the monkeypox virus, and geopolitical risks remain at a high level due to the ongoing conflict between Russia and Ukraine. The economic recovery is being tested by multiple risks and uncertainties ahead. This week, the transportation market basically kept stable with continuous slight declination in market rates. On August 12, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$4,971/TEU, declining 3.8% compared with the previous period. On the Mediterranean route, the market quotation kept basically synchronized with that of the European routes. The average space utilization rate of vessels in Shanghai port was generally steady and the spot market booking price continued to decline. On August 12, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$5,633/TEU, declining 3.7% compared with that in the previous period.
North American Routes: According to data released by the US Department of Labor, the number of initially unemployed workers in the US reached 262,000 in the week to 6 August, a second consecutive weekly rise that is near the highest level since November 2021. The data suggests a not so optimistic job market. Meanwhile, as inflation stays at a high level, the US economy is continuing to face the possibility of falling into recession. This week, the transportation demand was basically steady. The supply and demand fundamentals kept in balance and market rates continued their downward trend. On August 12, 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$6,153/FEU and US$9,106/FEU respectively, declining 5.3% and 2.4% respectively compared to the previous period.
Persian Gulf Routes: The local epidemiological situation is generally better than that in Europe and the USA. Transportation demand returned to normal conditions, but it lacked the impetus for further growth. This week, market quotations extended the recent weak performance, with spot booking prices continuing to fall. On August 12, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$2,372 /TEU, declining 8.8% compared with that in the previous period.
Australia and New Zealand Routes: The main countries have largely relaxed their control measures, but the outbreak continues to be at a high level due to mutated strains. The demand for all kinds of household goods in the destination market remained at a high level, and supply and demand were basically balanced. Market freight rates continued to fall this week. On August 12, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$2,902/TEU, declining 2.9% compared with the previous period.
South American Routes: The recent economic situation in the region continues to be fundamentally stable, but still faces challenges from significant market volatility. The traditional peak season in the South American shipping market was drawing to a close, resulting in slower growth in transport demand and a solid supply-demand relationship. The market freight rates were adjusted this week. On August 12, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$9,214/TEU, a decline of 3.3% compared with that of the previous period.
Japan Routes: Despite of the recent serious local epidemic, the transportation market was generally stable and market freight rates rose slightly. On August 12, the freight index of China export to Japan routes was 1,192.98 points.