Tianjin Shipping Index (May.31-Jun.2)

Jun 12, 2017

I. Tianjin Shipping Index (TSI)

Week 22, 2017 (May.31-Jun.2), Tianjin Shipping Index (TSI) released three times because of the Dragon Boat Festival holidays. Tianjin Container Freight Index (TCI) increased with a fluctuation. Tianjin Bulk Freight Index (TBI) continued to decrease. Tianjin Domestic Container Freight Index (TDI) continued to decrease. Tianjin Shipping Index (TSI) showed a weak trend. The TSI was closed at 536.48 points with a decrease of 2.58% from May.26 (the last release day of Week 21). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from May.22 to Jun.2. The value of TSI in Week 22 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 22, 2017(May.31-Jun.2), the TCI released three times because of the Dragon Boat Festival holidays, the trend of TCI is shown in the chart below:

In Week 22, the TCI increased with a fluctuation.

The freight rate in European route increased after decreasing this week. The freight rates in Mediterranean route and South American East Coast route increased steadily. The freight rate in North American route showed a weak trend. The freight rates in South American West Coast route and Central South American route decreased after increasing. The freight rate in India-Pakistan route decreased slightly. The TCI increased with a fluctuation.

The TCI eventually was closed at 527.76 points, with an increase of 2.04 points (0.39%) from May.27 (the last release day of Week 21).

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

European/ Mediterranean route

The cargo volume was stable. The freight rate in European route continued to decrease like it was before the Dragon Boat Festival. Some shipping companies attempted to increase the freight rate. The freight index increased 0.14% on a week-on-week basis. In Mediterranean route, some ship owners increased the freight rate last week. In this week, other ship owners increased the freight rate as well. The freight indices increased 2.05% and 1.09% respectively on a week-on-week basis.

North American route

Some shipping demand was released before the Dragon Boat Festival. The cargo volume decreased slightly after that festival. The main trend of the marked was competing for cargo this week. The freight indices in North American West Coast route and North American East Coast route decreased 1.50% and 0.87% respectively this week.

South American route

In the last one month, the freight rates in South American West Coast and Central South American route decreased by 20%. The freight rate had the power to rebound. After the holidays, some ship owners increased the GRI. The freight rate increased. However, the joint force of increasing the freight rate did not form. The freight rate decreased at the weekends. The freight indices increased 3.39% and 2.31% on a week-on-week basis. The freight rate in South American East Coast route increased slightly compared to the increase before. The freight index increased 1.48% on a week-on-week basis.

India-Pakistan route

Impacted by the Indian dock strike and the Pakistani truck driver strike, the freight rate in India-Pakistan route increased continuously in recent weeks. The current freight rate was triple compared to it in last year. The traders were not willing to ship cargo under the high shipping cost. The shipping companies started to decrease the freight rate in order to keep the loading rate. The freight rate decreased slightly. The freight index decreased 0.38% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 22, 2017 (May 31- Jun.2), Tianjin Bulk Freight Index (TBI) released three times because of the Dragon Boat Festival holidays and is shown as follows:

In week 22, the TBI continued the decreasing tendency.

On May 31 (Wed.), the freight rate of coal decreased slightly, that of grain kept stable, and that of mineral ore increased slightly, all of which led the TBI decrease 0.13% on a day-on-day basis. And then, the freight rates of coal, grain and mineral ore all demonstrated a weak tendency, which led the TBI decrease continuously from Jun.1 to Jun.2 (Thu. To Fri.) with a decrease of 2.31%.

Eventually, the TBI ended at 609.36 points with a decrease of 15.21 points (2.44%) from May 26 (the last release day of week 21).

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

The TBCI decreased continuously this week and ended at 394.84 points, a drease of 17.00 points (4.13%) from May 26 (the last release day of Week 21). Because domestic coal import is off season, coal demand weakeded and the freight rate declined. The Panamax market as a whole was miserable, vessel supply was obviously excessive, the freight rate of the DBCT to Tianjin route decreased nearly 6%. The freight rate of Capesize decreased continuously, and that of Hay Point to Qingdao route decreased over 2.5%.

The TBGI continued the weak tendency this week and ended at 548.33 points, a decrease of 8.97 points (1.61%) from May.26 (the last release day of week 21). With the slow down of soy bean purchase in demostic market, vessel supply of Panamax market was excessive obviously, and the freight rate declined further. The freight rates of South America to Tianjin route decreased over 2.2%. The freight rates of US Gulf to Tianjin route and North America West Coast to Tianjin route dereased over 1.2% and 1% respectively this week.

The TBMI all fell back this week and ended at 884.90 points, a decrease of 19.68 points (2.18%) from May.26 (the last release day of week 21). For the iron ore, with the influence of the holidays in Europe and China, the iron ore trade was inactive, the freight rate weakened continuously, those of West Australia to North China route and Brazil to Tianjin route decreased over 2.5% and 2% respectively. As for nickel ore, the freight rate of Handysize market continued the decreasing tendency because of the few nickle ore trade, that of Surigao to Tianjin route decreased nearly 0.5% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 22, 2017 (May.31-Jun.2), Tianjin Domestic Container Freight Index (TDI) broadcast three times due to the Dragon Boat Festival holidays and the trend is shown in the chart below:

In Week 22, the TDI decreased significantly.

On May.31 (Wed.), the Outward Index kept stable and the Inward Index decreased slightly which made the TDI decrease slightly. From Jun. 1 to Jun.2 (Thu. to Fri.), the Outward Index decreased sharply and the Inward Index firstly decreased and then kept stable and the TDI decreased 31.93 points. Finally, the TDI was closed at 605.46 points with a decrease of 37.28 points (5.80%) from May 27 (the last release day of Week 21).

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 quickly this week. The TDOI was closed at 620.98 points on Jun.2 (Fri.) with a decrease of 55.53 points (8.21%) from May.27 (the last release day of Week 21). After the Dragon Boat Festival, there was insufficient cargo in the southward route. The loading situation of ship companies was still depressed and the freight rate decreased continuously. The freight rate of Tianjin-Shanghai route decreased the most and the freight index decreased 21.99% on a week-on-week basis. The freight index of Tianjin-Guangzhou route decreased 7.96% on a week-on-week basis. The freight rate of Tianjin-Quanzhou route kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly this week. The TDII was closed at 589.93 points on Jun.2 with a decrease of 19.03points (3.13%) from May.27 (the last release day of Week 21). The freight rate of northward routes kept decreasing but the range narrowed. The freight index of Guangzhou-Tianjin route decreased 3.32% on a week-on-week basis. The freight index of Shanghai-Tianjin route decreased 0.64% on a week-on-week basis. And the freight index of Quanzhou-Tianjin route decreased 4.47% on a week-on-week basis.

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