Weakness Shown in Transport Market
Fall after Rise of the Ocean Shipping Rates
This week, China's export container shipping market showed its weakness, with major ports generally keeping in a normal operation and ocean shipping market rates extending their trend of falling after rise. On September 2, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 2,847.62 points, declining 9.7% compared to the previous period.
European Routes : According to the data released by Eurostat, the Harmonized ICP in the Eurozone rose 9.1% in August compared to the same month last year, another record high which leads the European Central Bank to raise interest rates to tighten its easing policy . However, the recent other data have been continuously lower than the PMI, which means that the economic performance is sluggish. In addition, the Russian-Ukrainian conflict persisted, which resulted in geopolitical risks at a high level for a long time, so there will be more risks for the economy in the future. This week, the performance of the transportation market has not improved, and the market freight rate continued to fall after rise. On September 2, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$4,252/TEU, declining 4.3% 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 basically remained stable, while spot market booking prices continued the trend of adjustment. On September 2, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$4,774/TEU, declining 5.9% compared with the previous period.
North American Routes: According to the data released by the ADP, the employment increased by 132,000 in August, which was lower than the market expectation. The figure is lower compared with that in July, indicating that the US employment situation showed signs of recession. As inflation continued to be at a high level, the Federal Reserve was forced to continue to take measures such as raising interest rates and reducing its balance sheet to curb inflation. The economic situation is likely to deteriorate further in the future. This week, the growth of transportation demand was sluggish. The fundamentals of supply and demand were comparatively weak, which affected the market freight rate of the US west routes to decline significantly. On September 2, 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$3,959/FEU and US$8,318/FEU respectively, declining 22.9% and 5.5% respectively compared to the previous period.
Persian Gulf Routes: The transportation demand was weak and faced no further growth, therefore, the relationship between demand and supply was unfavorable. This week, market quotations continued the downward trend, with spot booking prices continuing to fall. On September 2, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$1,767/TEU, declining 14.1% compared with that in the previous period.
Australia and New Zealand Routes: The epidemic situation in the destinations was still severe, but the local government has completely relaxed various control measures. The demand for all types of household goods in the destination market largely remained stable with a basic balance between supply and demand. Market freight rates continued to decline this week. On September 2, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$2,662/TEU, declining 4.8% compared with the previous period.
South American Routes: As the traditional peak season of transportation was coming to an end, the transportation demand lacked further growth momentum. The supply-demand relationship was basically stable, and the market freight rate extended the trend of adjustment this week. On September 2, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$7,981/TEU, a decline of 9.6% 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 September 2, the freight index of China export to Japan routes was 1,184.60 points.