Tianjin Shipping Index (May.8-May.12)

May 18, 2017

I. Tianjin Shipping Index (TSI)

Week 19, 2017 (May.8-May.12), Tianjin Container Freight Index (TCI) decreased overall. Tianjin Bulk Freight Index (TBI) increased with a fluctuation. Tianjin Domestic Container Freight Index (TDI) continued to decrease. Tianjin Shipping Index (TSI) fluctuated in a narrow range after decreasing. The TSI was closed at 572.98 points with a decrease of 2.02% from May.5 (the last release day of Week 18). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from May.2 to May.12. The value of TSI in Week 19 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 19, 2017(May.8-May.12), the trend of TCI is shown in the chart below:

In Week19, the TCI decreased with a fluctuation.

From May.8 to May.10 (Mon. to Wed.), the freight rates in European route, Mediterranean route, North American route and South American route decreased overall, while the freight rate in India-Pakistan route increased slightly. The TCI showed a weak trend and decreased 1.53% on three consecutive release days. From May.11 to May.12 (Thu. to Fri.), the freight rates in European route, Mediterranean route, North American route and South American route kept stable basically, while the freight rates in South American West Coast route and Central South American route decreased slightly. The freight rate in India-Pakistan route continued to increase. The TCI increased 0.25% on two consecutive release days.

The TCI eventually was closed at525.24points, with a decrease of 6.84points (1.29%) from May.5 (the last release day of Week 18).

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

European/ Mediterranean route

The new alliance just formed since April, followed by the high level of capacity. The cargo volume increased recently. The ship owners decreased the freight rate in order to increase the loading rate at the beginning of the week. The freight rate stopped to decrease and kept stable then. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased 3.48%, 0.38% and 2.19% respectively this week.

North American route

Some ship owners increased the freight rate last week. The shipping demand was in a low level. Other ship owners were not willing to increase the freight rate. The freight rate decreased in a stable trend. The freight indices in North American West Coast route and North American East Coast route decreased 4.13% and 3.63% respectively this week.

South American route

The freight rate increased markedly before. The current freight rate was obviously higher than last year. The purchase amount in destination did not increase significantly. The currently high freight rate could not hold on. The freight rate showed a weak trend this week. The freight rates in South American West Coast route and Central South American route decreased markedly. The freight indices decreased 13.65% and 7.05% on a week-on-week basis respectively. The freight rate in South American East Coast route decreased slightly. The freight index decreased 1.00% on a week-on-week basis.

India-Pakistan route

The negotiation between Indian longshoremen union and the port management agency did not reach an agreement. The ship owners were worried about the possible strike would affect the loading work in the port. Therefore, the cost would be increased and the congestion fee would be charged. The freight rate showed a strong trend. The freight index increased 4.33% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 19, 2017 (May.8-May12), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 19, the TBI shocked rise.

On May 8 (Mon.), the freight rates of grain and mineral ore increased slightly, and that of coal continued the weak tendency, all of which led the TBI decreased 0.93% on a day-on-day basis. And then, the freight rate of coal stopped falling and stabilized, the growth rate of the freight rate of mineral ore extended, and the freight rate of grain decreased slightly, the TBI increased continuously from May 9 to May 10 (Tue. to Wed.). From May 11 to May 12 (Thur. to Fri.), the freight rates of the three kinds of cargo shocked narrowly, the TBI shocked narrowly and ended at 658.54 points with an increase of 14.21 points (2.21%) from May 5 (the last release day of week 18).

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

The TBCI decreased at first and stabilized at the end of the week and ended at 470.13 points, a decrease of 21.18 points (4.31%) from May 5 (the last release day of Week 18).Coal trade in East Australia recovered slightly. For the Panamax, vessel supply was still excessive, the freight rate of the DBCT to Tianjin route decreased nearly 8%. The freight rate of Capesize decreased slightly at the first half of the week and stabilized at the second half of the week, and that of Hay Point to Qingdao route increased about 0.2%.

The TBGI shocked narrowly this week and ended at 596.22 points, a decrease of 0.34 points (0.06%) from May 5 (the last release day of week 18). With the continuous coming of vessels in ballast in South America region, the freight rate continued to decrease, that of South America to Tianjin route decreased nearly 1%. On the contrast, the freight rates of US Gulf and North America to Tianjin route demonstrated a recovery tendency, the freight rates of the two routes increased about 0.6% and 0.5% respectively.

The TBMI increased this week and ended at 909.27 points, an increase of 64.16 points (7.59%) from May 5 (the last release day of week 18).For the iron ore, because of the slight recovery of national steel mill profit in this week, the iron ore purchase was relatively active, and the freight rate rebounded slightly. The freight rates of West Australia to North China and Brazil to Tianjin route increased over 11% and 5% respectively. As for nickel ore, the freight rate of Handysize market continued the decrease tendency, and that of Surigao to Tianjin route decreased nearly1.8% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 19, 2017 (May.8-May.12), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 19, the TDI kept going down.

On May 8 (Mon.) the Outward and Inward Index decreased dramatically which led TDI created the largest single day decrease 5.68%. On May 9 (Tue.) the Outward Index kept stable and Inward Index kept decrease and TDI decreased slightly. From May 10 to May 11 (Wed. to Thu.), the Outward and Inward Index kept decrease and TDI decreased 12.09 points. On May 12 (Fri.) the Outward and Inward Index kept stable. Finally, the TDI was closed at 685.99 points with a decrease of 54.83 points (7.40%) from May 5 (the last release day of Week 18).

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

Tianjin Domestic Container Outward Freight Index (TDOI) decreased. The TDOI was closed at 720.82 points on May 12 (Fri.) which decreased 83.68 points or 10.40% from May 5 (the last release day of Week 18). The scale of capacity kept at same level and the demand of market was depressed. The freight rate of Tianjin-Guangzhou route decreased sharply and the freight index decreased 15.05% on a week-on-week basis. But the freight rate of Tianjin-Shanghai/Quanzhou routes kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) decreased in this week but the range was narrowed. The TDII was closed at 651.15 points on May 12 (Fri.) with a decrease of 25.98 points (3.84%) from May 5 (the last release day of Week 18). The northward route entered the traditional slack season and the demand was depressed. As to the shipments, recently some big ships were deployed which made the press of collect cargo increased and the freight rate was decreased. The freight index of Guangzhou-Tianjin route decreased 5.72% on a week-on-week basis. The freight index of Shanghai -Tianjin route decreased 0.83%. The freight rate of Quanzhou-Tianjin kept stable.

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