Tianjin Shipping Index (Apr.24-Apr.28)

May 5, 2017

I. Tianjin Shipping Index (TSI)

Week 17, 2017 (Apr.24-Apr.28), Tianjin Container Freight Index (TCI) increased rapidly. Tianjin Bulk Freight Index (TBI) decreased with a fluctuation. Tianjin Domestic Container Freight Index (TDI) decreased slightly. The Tianjin Shipping Index (TSI) increased. The TSI was closed at 614.71 points with an increase of 2.38% from Apr.21 (the last release day of Week 16). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Apr.17 to Apr.28. The value of TSI in Week 17 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 17, 2017 (Apr.24-Apr.28), the trend of TCI is shown in the chart below:

In Week17, the TCI increased significantly.

From Apr.24 to Apr.26 (Mon. to Wed.), the freight rates in European route, Mediterranean route, South American route and India-Pakistan route increased rapidly. The freight rate in North American route decreased with a steady trend. The TCI continued to increase and the increasing limit increased as well on a week-on-week basis. The TCI increased 9.65% on three consecutive release days. From Apr.27 to Apr.28 (Thu. to Fri.), the freight rates in European route, Mediterranean route, South American route and India-Pakistan route continued to increase. The freight rate in North American route increased. The TCI increased 3.47% on two consecutive release days.

The TCI eventually was closed at 531.48 points, with an increase of 63.02 points (13.45%) from Apr.21 (the last release day of Week 16).

The value of TCI ups and downs on a day-on-day basis are shown as follows:

European/ Mediterranean route

Before the Labor Day holidays, the cargo volume increased steadily. The capacity which was adjusted by the new shipping alliance kept stable gradually. The plan of increasing the freight rate implemented this week. The market increased the GRI. The freight rate increased rapidly. The freight indices in European route, Mediterranean East route and Mediterranean West route increased 20.06%, 30.47% and 25.30% respectively on a week-on-week basis.

North American route

The freight rate showed a marked decrease after a one month increase. The freight rate decreased slightly with a steady trend at the beginning and the middle of the week. The cargo volume was sufficient before the Labor Day holidays. Some ship owners increased the freight rate at the end of the week. The freight indices in North American West Coast route and North American East Coast route increased 6.83% and 1.52% respectively on a week-on-week basis.

South American route

The shipping demand was stable. Some shipping companies decreased the capacity in Tianjin port in order to improve the demand-supply relationship. The market agreed on increasing the freight rate. The freight rate increased overall. The freight indices in South American West Coast route, South American East Coast route and Central South American route increased 11.14%, 12.03% and 6.26% respectively on a week-on-week basis.

India-Pakistan route

The Indian dockworker union and the port authority reached an agreement about delaying the strike activity until May.12 instead of Apr.19. The traders tried to deliver the cargo before the strike activity. The capacity was insufficient. The freight rate continued to increase. The freight index increased 19.45% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 17, 2017 (Apr.24- Apr.28), Tianjin Bulk Freight Index (TBI) is shown as follows:

In Week 17, the TBI demonstrated a shocked down tendency this week.

On Apr.24 (Mon.), the freight rates of coal, grain and mineral ore all decreased slightly, the TBI decreased 1.15% on a day-on-day basis. On Apr.25 (Tue.), the freight rates of coal and grain continued the weak tendency, but the freight rate of mineral ore increased, which led the TBI rebound and increase 0.54% on a day-on-day basis. And then, the freight rates of coal and grain kept going down, and the freight rate of mineral ore increased steadily, all of which led the TBI continue falling back slightly from Apr.26 to Apr.28 (Thu. to Fri.) with a decrease of 1.33%.

Eventually, the TBI ended at 704.52 points with a decrease of 13.88 points (1.93%) from Apr.21 (the last release day of Week 16).

TBI index value saw several ups and downs on a day-on-day basis are shown as follows:

The TBCI decreased continuously and ended at 566.59 points, a decrease of 32.49 points (5.42%) from Apr.21 (the last release day of Week 16). The freight rates of relative routes were weak because of the weak coal export of Australia. For the Panamax, the freight rate of the DBCT to Tianjin route decreased about 9% this week because of the current excessive vessel supply. By contrast, the freight rate of Capesize increased steadily at first and then decreased continuously at the end of the week. The freight rate of Hay Point to Qingdao route decreased about 0.2% this week.

The TBGI demonstrated a continuously slight decrease tendency this week and ended at 623.09 points, a decrease of 17.04 points (2.66%) from Apr.21 (the last release day of Week 16). The purchase speed of grain slowed down in domestic market. The vessels in ballast continued to come to South America region. The freight rates decreased accordingly under such pressure. The freight rates of South America to Tianjin route and US Gulf to Tianjin route decreased 4.3% and 1.4% respectively this week. There was only small amount of grain shipped in West America region and the freight rate of West America to Tianjin route decreased about 1.5% this week.

The TBMI increased with a fluctuation this week and ended at 923.87 points, an increase of 7.88 points (0.86%) from Apr.21 (the last release day of Week 16). For the iron ore, the Labor Day holidays were coming, the purchase will of domestic steel mill was weak. However, the ship owners insisted to increase the freight rate which led the freight rate of Capesize market in Pacific region recovered obviously. The freight rate of West Australia to North China route increased nearly 2.3% this week. The deal in Atlantic region was weak and vessel supply was excessive, the freight rate of Brazil to Tianjin route decreased nearly 2.6%. As for nickel ore, the freight rate of Handysize market decreased with a fluctuation, the freight rate of Surigao to Tianjin route decreased 0.35% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 17, 2017 (Apr.24-Apr.28), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 17, the TDI went down narrowly.

From Apr.24 to Apr.25 (Mon. to Tue.) the Outward Index kept stable and the Inward Index decreased slightly which led TDI decrease 0.08% on two consecutive release days. On Apr.26 (Wed.), the TDI increased because of the slight increase of the Inward Index. From Apr.27 to Apr.28 (Thu. to Fri.), the Outward Index kept stable and the Inward Index decreased again. Finally, the TDI was closed at 779.56 points with a decrease of 7.93 points (1.01%) from Apr.21 (the last release day of Week 16).

The value of TDI ups and downs on a day-on-day basis are shown as follows:

Tianjin Domestic Container Outward Freight Index (TDOI) kept stable. The TDOI was closed at 838.81 points on Apr.28 (Fri.) which was the same with Apr.21 (the last release day of Week 16). In outward container domestic trade market, with the double effect of the rapid increase of shipping capacity and the weak demand of downstream companies for coal, the outward freight rate kept stable after it decreased dramatically twice. The freight rate of Tianjin-Guangzhou route, Tianjin-Quanzhou route and Tianjin-Shanghai route kept stable and the freight indices the same level.

Tianjin Domestic Container Inward Freight Index (TDII) decreased with a fluctuation this week. The TDII was closed at 720.30 points on Apr.28 (Fri.) with a decrease of 15.86 points (2.15%) from Apr.21 (the last release day of Week 16). The shipping capacity oversupplied in the northward routes due to some shipping companies applied more ships. And the decrease of the freight rate of Guangzhou-Tianjin route was significant. The freight rate decreased overall. The freight index decreased 3.34% on a week-on-week basis. The freight rate of Shanghai-Tianjin route adjusted and the freight index increased 0.76% on a week-on-week basis. The freight rate of Quanzhou-Tianjin route kept stable.

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