Tianjin Shipping Index (May.2-May.5)

May 11, 2017

I. Tianjin Shipping Index (TSI)

Week 18, 2017 (May.2-May.5), Tianjin Shipping Index (TSI) released four times because of the Labor Day holidays. Tianjin Container Freight Index (TCI) fluctuated in a narrow range. Tianjin Bulk Freight Index (TBI) decreased markedly. Tianjin Domestic Container Freight Index (TDI) decreased overall. The TSI decreased obviously. The TSI was closed at 584.78 points with a decrease of 4.87% from Apr.28 (the last release day of Week 17). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Apr.24 to May.5. The value of TSI in Week 18 is shown in the table below:

Date

Index Value

Ups and Downs on a DoD Basis

2017-5-2

610.71

-0.65%

2017-5-3

605.23

-0.90%

2017-5-4

587.84

-2.87%

2017-5-5

584.78

-0.52%

II. Tianjin Container Freight Index (TCI)

Week 18, 2017 (May.2-May.5), the TCI released four times because of the Labor Day holidays. The trend of TCI is shown in the chart below:

In Week18, the TCI fluctuated in a narrow range.

The freight rates in European route, Mediterranean West route, South American West Coast route, Central South American route and Persian Gulf route continued to decrease, while the freight rate in Mediterranean East route increased steadily. The freight rate in North American route increased slowly. The freight rate in South American East Coast route decreased with a steady trend. The TCI slightly increased with a fluctuation.

The TCI eventually was closed at 532.08 points, with an increase of 0.60 points (0.11%) from Apr.28 (the last release day of Week 17).

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

Date

Index Value

Ups and Downs on a DoD Basis

2017-5-2

530.37

-0.21%

2017-5-3

530.71

0.06%

2017-5-4

530.33

-0.07%

2017-5-5

532.08

0.33%

European/ Mediterranean route

After the Labor Day holidays, the cargo volume decreased. The pressure of overcapacity occurred. The cargo owners increased the GRI since the end of April. The freight rate had the power to decrease. The market was passive. The freight rates in European route and Mediterranean West route decreased in order to increase the loading rate. The freight indices decreased 1.99% and 1.09% respectively on a week-on-week basis. The freight rate in Mediterranean East route increased steadily. The freight index increased 1.03% on a week-on-week basis.

North American route

The freight rate decreased in one month. Some ship owners decreased the freight rate last week. The other shipping companies increased the freight rate this week. The freight indices in North American West Coast route and North American East Coast route increased 5.44% and 2.18% respectively this week.

South American route

The demand of shipping cargo decreased after the Labor Day holidays. The freight rate did not continue the increasing trend last week. A lot of ship owners decreased the freight rate in order to seek for cargo. The freight indices in South American West Coast route, South American East Coast route and Central South American route decreased 3.67%, 1.05% and 4.01% respectively on a week-on-week basis.

Persian Gulf route

The Ramadan is coming in Middle East. The cargo volume started to decrease. The freight rate decreased slowly. The freight index decreased 2.84% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 18, 2017 (May 2- May 5), Tianjin Bulk Freight Index (TBI) was released 4 times because of the Labor Day holidays. The trend of TBI is shown as follows:

In Week 18, the TBI demonstrated a rapidly decreasing trend.

On May 2 (Tue.), the freight rates of grain and mineral ore decreased slightly, and that of coal continued the weak tendency, the TBI decreased 1.04% on a day-on-day basis. From May 3 to May 4 (Wed. to Thu.), the freight rate of coal decreased continuously, and the freight rate decrease range of grain and mineral ore extended, all of which led the TBI decrease quickly with a decrease of 6.01% on two consecutive release days.

On May 5 (Fri), the freight rates of the three kinds of cargo continued the decreasing tendency. The TBI ended at 644.33 points with a decrease of 60.19 points (8.54%) from Apr.28 (the last release day of Week 17).

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

Date

Index Value

Ups and Downs on a DoD Basis

2017-5-2

697.16

-1.04%

2017-5-3

680.58

-2.38%

2017-5-4

655.28

-3.72%

2017-5-5

644.33

-1.67%

The TBCI decreased continuously and ended at 491.31 points, a decrease of 75.28 points (13.29%) from Apr.28 (the last release day of Week 17). International coal price decreased continuously. The coal trade was empty. The coal export demand of Australia was weak. The freight rates of relevant routes continued the decreasing tendency. For the Panamax, the freight rate of the DBCT to Tianjin route decreased over 17%. The freight rate of Capesize continued the weak tendency this week, and the freight rate of Hay Point to Qingdao route decreased about 8%.

The TBGI dropped back slightly this week and ended at 596.56 points, a decrease of 26.53 points (4.26%) from Apr.28 (the last release day of Week 17). With the influence of the strike of workers in Brazil and Argentina, the grain trade decreased in South America region, and the vessels in ballast arrived continuously, all of which led the freight rate of Panamax market as a whole decreased. The freight rates of South America to Tianjin route, US Gulf to Tianjin route and West America to Tianjin route decreased over 5%, 3.5% and 3% respectively this week.

The TBMI decreased quickly this week and ended at 845.11 points, a decrease of 78.76 points (8.53%) from Apr.28 (the last release day of Week 17). For the iron ore, the stockpile of domestic main ports increased continuously, and also with the influence of the Labor Day holidays, the deal of Capesize slowed down obviously, the overcapacity situation continued, all of which led the freight rates drop back obviously. The freight rates of West Australia to North China route and Brazil to Tianjin route decreased about 12% and 3% respectively this week. As for nickel ore, the freight rate of Handysize market continued to decline, the freight rate of Surigao to Tianjin route decreased about 2.3% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 18, 2017 (May.2-May.5), Tianjin Domestic Container Freight Index (TDI) released four times due to the Labor Day holidays and the trend is shown in the chart below:

In Week 18, the TDI went down sharply.

From May.2 to May.3 (Tue. to Wed.) the Outward and Inward Index decreased slightly which led TDI decreased slightly. On May.4 (Thu.),the decrease range of Outward and Inward Index widened and the TDI decreased 4.38% in a single day. On May 5 (Fri.), the Outward and Inward Index kept stable. Finally, the TDI was closed at 740.82 points with a decrease of 38.74 points (4.97%) from Apr.28 (the last release day of Week 17).

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

Date

Index Value

Ups and Downs on a DoD Basis

2017-5-2

775.00

-0.58%

2017-5-3

774.75

-0.03%

2017-5-4

740.82

-4.38%

2017-5-5

740.82

0.00%

Tianjin Domestic Container Outward Freight Index (TDOI) decreased overall this week. The TDOI was closed at 804.50 points on May 5 (Fri.) which decreased 34.31 points or 4.09% from Apr.28 (the last release day of Week 17). The shipments were still depressed after the Labor Day holidays and the supply of vessels was still very high. The freight rate started to decrease again due to oversupply. The freight index of Tianjin-Quanzhou route decreased 6.54% on a week-on-week basis. The freight index of Tianjin-Guangzhou route decreased 4.13% on a week-on-week basis. The freight rate of Tianjin-Shanghai route kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) continued to decrease this week. The TDII was closed at 677.13 points on May 5 (Fri.) with a decrease of 43.17points (5.99%) from Apr.28 (the last release day of Week 17). The demand in the north-ward routes was bad and the market was depressed. The decrease range of the freight rate in Guangzhou-Tianjin route widened and the freight index decreased 8.95% on a week-on-week basis. The freight rate of Shanghai-Tianjin route and Quanzhou-Tianjin route kept stable. According to industry insiders, the trend of freight rate in this month won’t be too optimistic due to the lack of cargo.

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