Tianjin Shipping Index (May.22-May.27)

Jun 2, 2017

I. Tianjin Shipping Index (TSI)

Week 21, 2017 (May.22-May.26), Tianjin Container Freight Index (TCI) increased with a fluctuation. Tianjin Bulk Freight Index (TBI) decreased after a slight increase at the beginning of the week. Tianjin Domestic Container Freight Index (TDI) decreased markedly. Tianjin Shipping Index (TSI) continued to decrease. The TSI was closed at 550.68 points with a decrease of 2.28% from May.19 (the last release day of Week 20). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from May.15 to May.26. The value of TSI in Week 21 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 21, 2017(May.22-May.27), the TCI released six times because of the Dragon Boat Festival holidays, the trend of TCI is shown in the chart below:

In Week 21, the TCI increased with a fluctuation.

From May.22 to May.23 (Mon. to Tue.), the freight rates in European route, North American route, South American West Coast route and Persian Gulf route decreased, while the freight rates in Mediterranean East route and South American East Coast route increased. The TCI decreased 0.38% on two consecutive release days. From May.24 to May.27 (Wed. to Sat.), the freight rates in European route, Mediterranean route and South American East Coast route increased with a fluctuation, while the freight rate in North American route increased after decreasing. The freight rates in South American West Coast route, Central South American route and Persian Gulf route showed a weak trend. The TCI increased 1.58% on four consecutive release days.

The TCI eventually was closed at 525.72 points, with an increase of 6.21 points (1.20%) from May.19 (the last release day of Week 20).

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

European/ Mediterranean route

The Dragon Boat Festival was coming, the cargo volume concentrated slightly. Some shipping companies attempted to implement the plan of increasing the freight rate. However, the joint force of increasing the freight rate did not form. The freight rate increased with a fluctuation overall. The freight rate in European route increased slightly. The freight index decreased 0.83% on a week-on-week basis. The freight rates in Mediterranean East route and Mediterranean West route increased significantly. The freight indices increased 6.73% and 3.93 respectively on a week-on-week basis.

North American route

The market demand increased steadily. Subject to the high scale of capacity, the freight rate decreased slowly at the first half of the week. Afterwards, the freight rate increased instead of decreasing because of the increasing speed of shipping cargo by factories before the Dragon Boat Festival holidays. The freight indices in North American West Coast route and North American East Coast route increased 1.74% and 0.99% 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 in a high level over the same period after the previous increase. The purchase amount of cargo in destination did not increase. A lot of ship owners decreased the freight rate in order to maintain the loading rate. The freight indices decreased 5.79% and 2.76% on a week-on-week basis. The freight rate in South American East Coast route was increased by some ship owners last week, which was followed by increasing the freight rate by other ship owners this week. The freight index increased 3.64% on a week-on-week basis.

Persian Gulf route

The Ramadan started. The shipping market was sluggish. Some ship owners decreased the freight rate slightly in order to compete for the cargo. The freight index decreased 0.84% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 21, 2017 (May.22- May.26), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 21, the TBI kept stable at the first half of the week and then decreased continuously.

From May.22 to May.23 (Mon. to Tue.), the freight rate of coal and grain decreased slightly. The freight rate of mineral ore increased. The TBI increased slightly 0.46% on two consecutive release days. Afterwards, the freight rates of coal and grain continued to decrease, while the freight rate of mineral ore decreased instead of increasing. The TBI decreased continuously from May.24 to May.26 (Wed. to Fri.), with a decrease of 2.36%.

Finally, the TBI was closed at 624.57 points, with a decreased of 12.11 points (1.90%) from May.19 (the last release day of week 20).

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

The TBCI continued to decrease this week and ended at 411.84 points, a decrease of 27.32 points (6.22%) from May.19 (the last release day of Week 20). The coal market was insufficient, the freight rate continued to decrease. The Panamax market as a whole was miserable, the overcapacity was obvious. The freight rate of the DBCT to Tianjin route decreased over 10% this week. The freight rate of Capesize kept stable at first and decreased at the end of the week, and that of Hay Point to Qingdao route decreased over 2%.

TBGI kept decreasing this week. And it ended at 557.30 points with a decrease of 12.82 points (2.25%) from May 19 (the last release day of Week 20). The domestic transportation demand of soy bean was weak and the arrival of empty ships from South America made the freight rate decrease. The freight rate of South America to Tianjin route decreased 3.5% this week. The freight of U.S. Gulf to Tianjin route decreased over 1%. The freight rate of West America to Tianjin decreased near 2%.

TBMI firstly increased and then decreased. It ended at 904.58 points with an increase of 3.81 points (0.42%) from May.19 (the last release day of Week 20). For iron ore, the demands of ships in Australia and Brazil were strong which made the market be active. But in the last half of week, the deal of market was weak due to the holiday nearby. The freight rate decreased again. And the freight rate of West Australia to North China route increased over 1%. The freight rate of Brazil to Tianjin route firstly increased and then decreased and it kept the same level with last week. As for nickel ore, the oversupply of Handymax ships led the freight rate keeps decreasing. The freight rate of Surigao to Tianjin route decreased 2.0% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 21, 2017 (May.22-May.27), the TDI released six times because of the Dragon Boat Festival holidays. The trend of TDI is shown in the chart below:

In Week 21, the TDI decreased sharply.

On May 22 (Mon.), the Outward Index dropped quickly and the Inward Index kept stable which made the TDI create the biggest decrease (3.23%) of this week. From May.23 to May.27 (Tue. to Sat.), the Outward Index stopped decreasing and the Inward Index kept decreasing and the TDI decreased 3.03% on five consecutive release days. Finally, the TDI was closed at 642.74 points with a decrease of 42.25 points (6.17%) from May 19(the last release day of Week 20).

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

Tianjin Domestic Container Outward Freight Index (TDOI) first decreased and then kept stable this week. The TDOI was closed at 676.51 points on May 27(Fri.), with a decreased of 44.31 points (6.15%) from May 19 (the last release day of Week 20). The environment politics made the production yield of coal decreased and the enlargement of ships increased the supply of market. The contradiction between supply and demand became prominent and the ship owners decreased the freight rate to attract cargoes. Afterwards, the freight rate kept stable. The freight indices in three routes showed a decreasing trend. The freight rate of Tianjin-Shanghai route, Tianjin-Quanzhou route decreased significantly. The freight indices decreased 17.49% and 14.78% respectively on a week-on-week basis. The freight index of Tianjin-Guangzhou route decreased 1.03% on a week-on-week basis.

Tianjin Domestic Container Inward Freight Index (TDII) decreased continuously this week. The TDII was closed at 608.96 points on May.27 (Sat.) with a decrease of 40.20points (6.19%) from May.19 (the last release day of Week 20). The domestic container market came into weak season. And the demand of market was not good and the freight rate decreased. The freight index of Guangzhou-Tianjin route decreased 9.57% on a week-on-week basis. The freight index of Shanghai-Tianjin route decreased 0.76% on a week-on-week basis. The freight rate of Quanzhou-Tianjin route kept stable.

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