Tianjin Shipping Index (Jun.5-Jun.9)

Jun 15, 2017

I. Tianjin Shipping Index (TSI)

Week 23, 2017 (Jun.5-Jun.9), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) fluctuated in a narrow range after decreasing. Tianjin Domestic Container Freight Index (TDI) slightly decreased. Tianjin Shipping Index (TSI) showed a weak trend. The TSI was closed at 527.19 points with a decrease of 1.73% from Jun.2 (the last release day of Week 22). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from May.31 to Jun.9. The value of TSI in Week 23 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 23, 2017(Jun.5-Jun.9), the trend of TCI is shown in the chart below:

In Week 23, the TCI continued to decrease.

From Jun.5 to Jun.7 (Mon. to Wed.), the freight rates in European route, Mediterranean West route and North American route decreased, while the freight rates in Mediterranean East route, India-Pakistan route increased after decreasing. The freight rate in South American route increased. The TCI decreased 0.72% on three consecutive release days. From Jun.8 to Jun.9 (Thu. to Fri.), the freight rates in European route, Mediterranean West route, North American route and India-Pakistan route decreased overall, while the freight rate in Mediterranean East route kept stable. The freight rate in South American route increased after decreasing. The TCI decreased significantly 1.11% on two consecutive release days.

The TCI eventually was closed at 518.13 points, with decrease of 9.63 points (1.82%) from Jun.2 (the last release day of Week 22).

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

European/ Mediterranean route

The purchase amount of importers decreased. In European route and Mediterranean West route, the market decreased the freight rate in order to increase the loading rate under the pressure of overcapacity. The freight indices decreased 2.27% and 4.99% respectively on a week-on-week basis. The cargo volume in Mediterranean East route started to be sufficient. The freight rate increased after decreasing at the beginning of the week and kept stable at the end of the week. The freight index decreased 0.32% on a week-on-week basis.

North American route

Under the pressure of insufficient cargo volume in the last month, the plan of increasing the freight rate was suspended. The market kept the downward trend this week. The center of freight rate decreased continuously. The freight indices in North American West Coast route and North American East Coast route decreased 4.70% and 3.99% respectively this week.

South American route

The freight rate increased 20% in the last one month. Under the pressure of the cost, some shipping companies increased the freight rate last week. The other ship owners increased the GRI this week. The freight rate increased with a fluctuation. The freight indices in South American West Coast, South American East Coast and Central South American route increased 1.78%, 1.79% and 2.56% respectively this week.

India-Pakistan route

Indian dock strike and the Pakistani truck driver strike influenced the port operation efficiency. The shipping companies charged for the congestion in order to make up for the additional cost because the ship stopped operation for a long time. The current freight rate increased three times from last year. The traders who were not urged to hand over cargo slowed down the speed of shipping cargo. The freight rate decreased with a fluctuation this week. The freight index decreased 1.28% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 23, 2017 (Jun.5- Jun.9), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 23, the TBI continued the weak tendency at first of the week and then shocked narrowly.

On Jun. 5 (Mon.), the freight rates of coal and grain decreased slightly, that of mineral ore fell back obviously, all of which led the TBI decrease 1.8% on a day-on-day basis. And then, the freight rates of coal and grain continued the slightly decreasing tendency, that of mineral ore recovered slightly, which led the TBI demonstrate an increasing trend after decreasing tendency from Jun.6 to Jun.7 (Tue. To Wed.). From Jun.8 to Jun.9 (Thu. To Fir.), the freight rates of coal, grain and mineral ore all shocked narrowly, and the TBI ended at 598.07 points with a decrease of 11.29 points (1.85%) from Jun.2 (the last release day of week 22).

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 381.17 points, a decrease of 13.67 points (3.46%) from Jun.2 (the last release day of Week 22). For the Panamax, the vessel supply was obviously excessive in Pacific market, the freight rate of the DBCT to Tianjin route decreased nearly 7%. The deal of Capesize market was inactive, but the decrease rate of related ship route was easing up, the freight rate of Hay Point to Qingdao route decreased at first, and then stabilized from the midweek with a decrease of 0.2%.

The TBGI continued the weak tendency this week and ended at 542.75 points, a decrease of 5.58 points (1.02%) from Jun.2 (the last release day of week 22). With the slow down of soy bean purchase in domestic market, vessel supply of Panamax market was excessive obviously, the market was a little gloomy, and the freight rate decreased further. The freight rates of South America to Tianjin route, US Gulf to Tianjin route and West America to Tianjin route decreased nearly 1.5%, 0.8% and over 0.5% respectively this week.

The TBMI decreased rapidly at first and then narrowly shocked, the TBMI ended at 870.28 points, a decrease of 14.62 points (1.65%) from Jun.2 (the last release day of week 22). For the iron ore, the Capsize in Pacific market continued the weak tendency at the first half of the week and rebounded at the second half of the week, the freight rate of West Australia to North China route decreased over 1%. The trade in Atlantic market was inactive and the freight rate fell back continuously, which led the freight rate of Brazil to Tianjin route decrease over 3.5%. As for nickel ore, because of the few nickle ore trade in the market, the freight rate of Handysize as a whole kept low level. The freight rate of Surigao to Tianjin route decreased nearly 1% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 23, 2017 (Jun.5-Jun.9), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 23, the TDI decreased slightly and then kept stable.

From Jun.5 to Jun.6 (Mon. to Tue.), the Outward Index increased slightly and the Inward Index decreased, which made the TDI decrease 1.45% on two consecutive release days. From Jun. 7 to Jun. 8 (Wed. to Thu.), both the Inward Index and the Outward Index kept stable. On Jun.9 (Fri.), the Inward Index decreased slightly and the Outward Index kept stable. Finally, the TDI was closed at 596.55 points with a decrease of 8.91 points (1.47%) from Jun.2 (the last release day of Week 22).

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

Tianjin Domestic Container Outward Freight Index (TDOI) increased slightly at first and then kept stable this week. The TDOI was closed at 622.49 points on Jun.9 (Fri.) and increased 1.96 points (0.24%) from Jun.2 (the last release day of Week 22). The freight rate in southward routes kept stable this week. The freight rate of Tianjin-Guangzhou route increased at the beginning of this week and the freight index increased 0.35% on a week-on-week basis. The freight rate of Tianjin-Shanghai route and Tianjin-Quanzhou route kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) kept stable and then decreased slightly this week. The TDII was closed at 570.60 points on Jun.9 with a decrease of 19.33 points (3.28%) from Jun.2 (the last release day of Week 22). Due to the pressure of environment protection in southern part of Fujian, many factories were closed and the cargo volume decreased. The freight rate of Quanzhou-Tianjin route kept going down and the range of decrease widened. The freight index decreased 12.03% on a week-on-week basis. The freight rate of Guangzhou-Tianjin route decreased slightly and the freight index decreased 1.09% on a week-on-week basis. The freight rate of Shanghai-Tianjin route kept stable.

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