Tianjin Shipping Index (July.3-July.7)

Jul 14, 2017

I. Tianjin Shipping Index (TSI)

Week 27, 2017 (July.3-July.7), Tianjin Container Freight Index (TCI) fell shocked. Tianjin Bulk Freight Index (TBI) continued to decline, Tianjin Domestic Container Freight Index (TDI) adjusted in narrow range. Tianjin Shipping Index continued to fall. The TSI was closed at 518.79 points with a decrease of 2.85% from Jun.30 (the last release day of Week 26). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Jun.26 to Jul.7. The value of TSI in Week 27 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 27, 2017(Jul.3-Jul.7), the trend of TCI is shown in the chart below:

In Week 27, the TCI fell shocks.

On Jul. 3 (Mon.), the freight rates in European route, Mediterranean route and India-Pakistan route decreased, the freight rates in North American route and South America route got stronger. The TCI increased 0.33% on a w-o-w basis. From Jul.4 to Jul.7 (Tue. to Fri.), the freight rates in European route, Mediterranean route and India-Pakistan route continued downward trend, the freight rates in North American route and South America route first rose then declined. The TCI continued to decrease and declined 0.82% in four consecutive release days.

On Jul.7 (Fri.), the TCI was closed at 527.77 points, with a decrease of 12.20 points (2.26%) from Jun. 30 (the last release day of Week 26).

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

European/ Mediterranean route

The importers entered the traditional summer vacation season, the purchase of goods continued to decline and the transport capacity was still at high level. The ship utilization rate of some shipowners was less than 70%. Price reduction to ensure that the loading rate became the mainstream. The freight indices in European route, Mediterranean East route and Mediterranean West route declined 6.33%, 1.79% and 3.52% respectively this week.

North American route

The current deployed shipping capacity maintained at a high level, and the freight demand wandering which led the freight rate declined over 30% in three months. In this week, the market pushed up the GRI and the freight rate increased. At the end of week, some shipowners slightly decreased freight rate to increase the loading rate. The freight indices in West American and East American route increased 4.56% and 3.76% respectively on a week-on-week basis.

South American route

After the integration of shipping capacity, the number of deployed ships had been reduced, and the relationship between supply and demand had been improved. Some shipowners took the lead in the implementation of the price increase plan last week, other owners increased freight rate at the beginning of this week. The freight showed a down trend at the end of the week. The freight indices in South American West Coast route, South American East Coast route and Central South American routes increased 6.03%, 2.58% and 6.36% respectively this week.

India-Pakistan route

Due to the strike, the freight rate has risen steadily. Freight rate was significantly higher than the same period last year. This week the factory slowed down the pace of export. The volume of shipments had declined compared to last week and the freight rate continued to decrease. The freight index declined 4.50% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 27, 2017 (Jul.3- Jul.7), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 27, the TBI dropped down constantly.

From Jul. 3 to Jul. 4 (Mon. to Tue.), the freight rates of coal, grain and mineral ore kept decreasing, which led the TBI decrease on two continuous release days. And then, the freight rate of grain stopped decreasing, the freight rates of coal and mineral continued the decrease tendency, the TBI continued to decrease from Jul. 5 to Jul. 6 (Wed. to Thu.). On July 7, the freight rate of coal began to increase, the freight rate of grain increased slightly and the decrease rate of the freight rate of mineral ore extended, the TBI ended at 583.23 points with a decrease of 33.88 points (5.49%) from Jun. 30 (the last release day of week 26).

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

The TBCI decreased this week and ended at 454.95 points with a decrease of 12.07 points (2.58%) from Jun. 30 (the last release day of Week 26). For the Panamax market, the freight rate decreased at first and the market became good in the later period of the week. The freight rate of the DBCT to Tianjin route was steady and increased 0.15%. For the Capesize market, the freight rate decreased , and that of Hay Point to Qingdao route decreased over 5.5% this week.

The TBGI demonstrated a rise after drop tendency this week and ended at 578.64 points, an increase of 9.90 points (1.74%) from Jun. 30 (the last release day of week 26). Earlier this week, the freight rate of grain was low, but in the middle and later periods of the week, driven by the deal in the Pacific area, the freight rate of the Panamax market increased. The freight rate of West America to Tianjin route increased nearly 2.2% and the freight rate of South America to Tianjin route increased over 2.7%. The freight rate of U.S Gulf to Tianjin route increased near 0.8%.

The TBMI dropped down constantly and ended at 716.10 points, a decrease of 99.48 points (12.20%) from Jun. 30 (the last release day of week 26). For the iron ore, there were few deals in this week, the Capesize market was weak and the freight rate decreased sharply. The freight rate of West Australia to North China route decreased over 15%. The long-distance deal of iron ore was even gloomier and the freight rate of Brazil to Tianjin route decreased near 13.5%. As for nickel ore, there were a small amount of nickel ore pallets this week and the freight rate of Surigao to Tianjin route decreased about 1% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 27, 2017 (Jul.3-Jul.7), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 26, the TDI adjusted slightly.

On Jul.3 (Mon.), the Outward Index increased and the Inward Index decreased slightly and TDI increased 0.16%. From Jul.4 to Jul.5 (Tue. to Wed.), both the Inward and Outward Index kept stable and TDI kept at 571.29 points. On Jul.6 (Thu.), the Inward Index decreased and TDI decreased slightly. On Jul.7 (Fri.) the Inward Index increased which led the TDI increased slightly. Finally, the TDI was closed at 570.92 points with an increase of 0.55 points (0.10%) from Jun.30 (the last release day of Week 26).

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 this week. The TDOI was closed at 597.79 points on Jul.7 (Fri.) with an increase of 2.61 points (0.44%) from Jun.30 (the last release day of Week 26). The turnover of containers was not smooth and some ship companies lack containers. The companies wished to increase freight rate to maintain the operation facing the depressed rate. The freight rate of Tianjin-Guangzhou route increased 0.64% on a w-o-w basis. The market of Tianjin-Quanzhou/Shanghai routes kept watching and the indices were the same with last week.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly this week. The TDII was closed at 544.05 points on Jul.7 with a decrease of 1.51 points (0.28%) from Jun.30 (the last release day of Week 26). The freight rate of northward routes kept weak but the decreasing range was narrowed. The index of Shanghai-Tianjin route decreased 0.26% on a w-o-w basis. The decreasing range of index of Guangzhou-Tianjin route narrowed and the index decreased 0.26%. The index of Quanzhou-Tianjin route kept stable.

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