Tianjin Shipping Index (Jul.10-Jul.14)

Jul 26, 2017

I.Tianjin Shipping Index (TSI)

Week 28, 2017 (Jul.10-Jul.14), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) continued to increase. Tianjin Domestic Container Freight Index (TDI) increased markedly. Tianjin Shipping Index (TSI) increased after decreasing. The TSI was closed at 532.38 points with an increase of 2.62% from Jul.7 (the last release day of Week 27). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Jul.3 to Jul.14. The value of TSI in Week 28 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 28, 2017 (Jul.10-Jul.14), the trend of TCI is shown in the chart below:

In Week 28, the TCI continued to decrease.

From Jul.10 to Jul.11 (Mon. to Tue.), the freight rates in South American East Coast Route increased, the freight rates in European route, Mediterranean route, North American route, South American East Coast route, Central South American route and India-Pakistan route decreased overall. The TCI continuously decreased by 2.15% on three consecutive release days. From Jul.12 to Jul.14 (Wed. to Fri.), the freight rates in European route and Mediterranean route decreased slower, while the freight rates in North American route, India-Pakistan route slightly decreased. The freight rates in South American West Coast route and Central South American route decreased rapidly, while the freight rates in South American East Coast route increased slightly. The TCI decreased in a narrow range by 0.58 % on three consecutive release days On Jul.14(Fri.), the TCI ended at 513.46 points with a decrease of 14.31 points (2.71%) from Jul.7 (the last release day of Week 27).

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

European/ Mediterranean route

The importers entered summer holiday season, the cargo volume decreased accelerated. The freight rate was low in the whole week. The freight rate in European route, Mediterranean East route and Mediterranean West route decreased by 2.72%, 4.34% and 2.81% respectively this week.

North American route

The cargo volume was basically stable. Some shipping companies decreased GRI to increase the loading rate. The freight rate in North American West Coast route and North American East Coast route decreased by 0.80% and 1.46% respectively this week.

South American route

Thanks to the integration of the shipping alliance, the scale of transport capacity decreased, which impact positively on supply-demand relationship. Since mid-June, the freight rate increased generally, South American West Coast route and Central South American route almost increased by 20%. However, the current weak freight volume was difficult to support the freight rate of the routes, and this week's freight rate failed to continue the previous trend of strong and sustained increase. The freight index decreased 9.56% and 6.15% respectively on a week-on-week basis. In comparison, the freight rates in South American East Coast was increased slightly by shipowner due to the modest rise in earlier stage. The freight index increased by 3.77% on a week-on-week basis.

India-Pakistan route

The strike in India and Pakistan was mainly over, port operation and transport order were recovered successively. The significant growth of rate in earlier stage led to the freight rate being three times higher than that of the same period of last year, which overdrew the future upside of rate exorbitantly. Owners of cargo and traders slowed down their intention for high-rate shipment. The freight rate continued to go down this week. The freight index decreased by 6.81% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 28, 2017 (July.10- July.14), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 28, the TBI increased constantly.

On July 10 (Mon.), the freight rates of coal and grain increased slightly, that of mineral ore decreased slightly, all of which led the TBI increased 0.23%. From July 11 to 13 (Tue. to Thu.), the freight rates of coal and grain kept increasing, the freight rate of mineral ore recovered and the ups of a day-on-day basis increased constantly, which made the TBI increase on three continuous release days.

On July 14 (Fri.), the freight rates of coal, grain and mineral ore increased again, and the TBI ended at 619.39 points with an increase of 36.16 points (6.20%) from July 7 (the last release day of week 27).

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

The TBCI increased slightly this week and ended at 485.81 points with an increase of 30.86 points (6.78%) from July 7 (the last release day of Week 27). The increase of domestic coal prices made the amount of the coal for foreign trade increase, which made the freight rate increase. For the Panamax market, the supply-demand situation improved in Pacific market, the freight rate of the DBCT to Tianjin route increased about 9%. For the Capesize market, the freight rate increased, and that of Hay Point to Qingdao route increased over 4% this week.

The TBGI increased slightly this week and ended at 588.36 points, an increase of 9.72 points (1.68%) from July 7 (the last release day of week 27). Earlier this week, the deal of grain in the Americas was active, which attracted many vessels and the freight rate recovered further. The freight rates of South America to Tianjin route, West America to Tianjin route and US Gulf to Tianjin route increased about 2.5%, 2% and 0.8% respectively this week.

The TBMI rose and ended at 783.99 points, an increase of 67.89 points (9.48%) from July 7 (the last release day of week 27). For the iron ore, the freight rate of the Capesize dropped to the low point of the market before. The shipowner had a strong will to hold the price and the long-distance deal situation of iron was becoming better, which made the freight rate rise back obviously. The freight rate of West Australia to North China route increased near 12% and the freight rate of Brazil to Tianjin route increased about 11%. As for nickel ore, the deal amount of nickel ore increased this week and the Handysize was in short supply. The freight rate of Surigao to Tianjin route increased over 1.5% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 28, 2017 (Jul.10-Jul.14), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 28, the TDI increased sharply.

On Jul.10 (Mon.), the Outward Index increased and the Inward Index decreased slightly, TDI increased by 2.1 points. On Jul.11 (Tue.), both the Inward and Outward Index kept stable. On Jul.12 (Wed.), the Outward Index increased markedly and the Inward Index still decreased slightly, TDI increased by 3.87% on a day-on-day basis, which created the sharpest one-day growth rate since 2017. From Jul.13 to Jul.14 (Thu. to Fri.), the Inward and Outward Index return to stable. Finally, the TDI was closed at 595.17 points with an increase of 24.25 points (4.25%) from Jul.7 (the last release day of Week 27).

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 significantly this week. The TDOI was closed at 647.79 points on Jul.14 (Fri.) with an increase of 50.00 points (8.36%) from Jul.7 (the last release day of Week 27). This week, some ship companies increased freight rates as planned to maintain market profits in a certain extent. The freight rates of three routes all increased by different amount, where Tianjin-Guangzhou route had the highest growth rate, the freight index increased by 11.13% on a week-on-week basis; The freight index of Tianjin-Shanghai route and of Tianjin-Quanzhou route grew by 2.76% and 1.81% respectively.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly this week. The TDII was closed at 542.54 points on Jul.14 with a decrease of 1.51 points (0.28%) from Jul.7 (the last release day of Week 27). There was no obvious improvement in the market demand of northward routes, the freight rate continued to decrease slightly as same as last week. The decreasing range of the rate of Guangzhou-Tianjin route was narrowed, and the index decreased by 0.37% on a week-on-week basis. The index of Shanghai-Tianjin route decreased by 0.25%. The index of Quanzhou-Tianjin route kept stable.

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