Mine Equities Acquisition

China Export Container Transportation Market Weekly Report (October 21, 2022)

2022-10-24 15:42 10252 0

Declines in the Export Market Slow Down

 Shipping Rates Fall on Most Routes

This week, the market conditions for China's export container transport failed to recover and the transport demand stayed sluggish, with most ocean shipping market rates going further downwards; however, the overall decline in the export market slowed down. On October 21, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 1778.69 points, declining 1.9% compared to the previous period.

European Routes: According to data released by Eurostat, the final value of the Eurozone's reconciled CPI rose to 9.9% in September compared to last month, which was the highest level on record. The huge inflation pressure forced the European Central Bank to tighten up, which resulted in a further slowdown in the European economic growth that was already rather weak. Recently, the manufacturing data in Europe has fallen below the PMI. As the winter season approaches, the ongoing Russia-Ukraine conflict will bring Europe to face a further test against the energy crisis. This will worsen the inflation situation, which is already at an all-time high, and expose the economy to the risk of falling into recession in the future. Transport demand continued to show signs of weakness after the National Day holiday, with market rates lasting on a downward trend. On October 21, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$2,379/TEU, declining 7.8% compared with the previous period. For Mediterranean routes, market quotations were largely in sync with European routes, but the spot market booking prices continued to fall as the relationship between supply and demand stayed unfavorable. On October 21, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$2,568/TEU, declining 6.5% compared with the previous period.