Tianjin Shipping Index (May.15-May.19)

Jun 2, 2017

I. Tianjin Shipping Index (TSI)

Week 20, 2017 (May.15-May.19), Tianjin Container Freight Index (TCI) decreased slightly. Tianjin Bulk Freight Index (TBI) decreased under the pressure. Tianjin Domestic Container Freight Index (TDI) slightly decreased in a steady trend. Tianjin Shipping Index (TSI) showed a weak trend. The TSI was closed at 563.52 points with a decrease of 1.65% from May.12 (the last release day of Week 19). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from May.8 to May.19. The value of TSI in Week 20 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 20, 2017(May.15-May.19), the trend of TCI is shown in the chart below:

In Week 20, the TCI decreased slightly.

From May.15 to May.17 (Mon. to Wed.), the freight rates in European route, Mediterranean route, North American route, South American West Coast route and Central South American route decreased overall, while the freight rate in South American East Coast route increased. The TCI showed a weak trend and decreased 0.74% on three consecutive release days. From May.18 to May.19 (Thu. to Fri.), the freight rates in European route and Mediterranean route kept stable. The freight rates in North American route, South American West Coast route and Central South American route continued to decrease. The freight rate in India-Pakistan route slightly increased. The TCI decreased 0.36% on two consecutive release days.

The TCI eventually was closed at 519.51 points, with a decrease of 5.73 points (1.09%) from May.12 (the last release day of Week 19).

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

European/ Mediterranean route

The cargo volume increased slightly. The overcapacity was still existent. The freight rate showed a weak trend in the first half of the week and kept stable then. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased 3.61%, 0.87% and 0.84% respectively this week.

North American route

The purchase demand of importers decreased. The shipping companies decreased GRI in order to maintain the loading rate. The freight rate showed a weak trend this week. The freight indices in North American West Coast route and North American East Coast route decreased 5.65% and 6.29% respectively this week.

South American route

The freight rates were mixed. In South American West Coast and Central South American route, the current freight rate was obviously higher than last year because of the previously continuous increase. The importing cargo volume in South America was insufficient which made the current high freight rate could not hold on for a long time. Some ship owners decreased the freight rate in order to increase the loading rate in South American West Coast route and Central South American route this week. The freight indices decreased 9.88% and 10.01% respectively on a week-on-week basis. Some ship owners in South American East Coast route implemented the plan of increasing the freight rate in the middle of the month. The freight rate increased this week. The freight index increased 7.18% on a week-on-week basis.

India-Pakistan route

Recently, the Supreme Court of Pakistan ruled that cargo trucks were forbidden to enter Karachi in the daytime. The transportation cost increased markedly. A lot of truck fleets stuck because of that. The market was worried that would affect the terminal operation and cause port congestion. In addition, the threat of the strike in Indian port did not disappear. The freight rate continued to increase slightly. The freight index increased 1.30% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 20, 2017 (May.15- May.19), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 20, the TBI demonstrated a slight fall back tendency.

On May.15 (Mon.), the freight rate of coal increased slightly, those of grain and mineral ore decreased slightly, all of which led the TBI decrease 0.05% on a day-on-day basis. And then, the freight rates of coal, grain and mineral ore all decreased slightly, which led the TBI decrease continuously from May.16 to May.18 (Tue. to Thu.) with a decrease of 3.47%.

On May.19 (Fri.), the freight rate of mineral ore rebounded, which led the TBI increase slightly and end at 636.68 points with a decrease of 21.86 points (3.32%) from May.12 (the last release day of week 19).

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

The TBCI continued the weak tendency this week and ended at 439.16 points, a decrease of 30.97 points (6.59%) from May 12 (the last release day of Week 19). The coal production in domestic market increased, and the coal import demand was weak, the freight rate continued to fall back. The Panamax market as a whole was miserable, the freight rate of the DBCT to Tianjin route decreased nearly 10.5%. The freight rate of Capesize decreased continuously at first and stabilized at the end of the week, and that of Hay Point to Qingdao route decreased about 2.3%.

The TBGI decreased continuously this week and ended at 570.12 points, a decrease of 26.10 points (4.38%) from May.12 (the last release day of week 19). With the continuous coming of vessels in ballast in South America region and the limited grain trade, the freight rate continued to decrease, that of South America to Tianjin route decreased over 5.5%. The freight rates of other routes demonstrated the same obvious decrease tendency, those of US Gulf to Tianjin route and West America to Tianjin route decreased over 3% and about 5% respectively this week.

The TBGI decreased slightly at the first half of the week and rebounded slightly at the end of the week and ended at 900.77 points, a decrease of 8.50 points (0.93%) from May.12 (the last release day of week 19). For the iron ore, the freight rate fell back under the pressure of overcapacity. The freight rate of West Australia to North China route decreased continuously at first. And it stopped falling and increased at the end of the week with a total decrease of over 2.2%. By contrast, the freight rate of Brazil to Tianjin route continued the increasing tendency at first but increased sluggishly at the end of the week with a total increase about 2.8%. As for nickel ore, the freight rate of Handysize market continued the decreasing tendency because of the few nickel ore trade, the freight rate of Surigao to Tianjin route decreased over 0.5% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 20, 2017 (May.15-May.19), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 20, the TDI kept steady and decreased slightly.

In this week, the Outward Index kept stable and the Inward Index decreased from May.17 to May.18 (Wed. to Thu.) which led TDI decrease 0.15%. On May 19 (Fri.) the Inward Index stopped decreasing and the Outward Index kept stable. Finally, the TDI was closed at 684.99 points with a decrease of 1.00 points (0.15%) from May.12 (the last release day of Week 19).

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 this week. The TDOI was closed at 720.82 points on May.19 (Fri.) which was the same with May.12 (the last release day of Week 19). In May, the freight rate of southward routes kept declining with the influence of increased supply of ships and weak demand. This week the TDOI was very stable and the freight index of three routes kept the same with last week on a week-on-week basis.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly this week. The TDII was closed at 649.16 points on May 19 (Fri.) with a decrease of 1.99points (0.31%) from May.12 (the last release day of Week 19). The trend of the freight rate of northward route was weak but the statues of three routes were different. The freight rate of Guangzhou-Tianjin route kept decreasing but the range narrowed and the freight index decreased 0.51% on a week-on-week basis. The freight index of Shanghai -Tianjin route increased 0.25% on a week-on-week basis. The freight rate of Quanzhou-Tianjin kept stable.

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