Tianjin Shipping Index(Jul.17-Jul.21)

Jul 28, 2017

I.Tianjin Shipping Index(TSI)

Week 29, 2017 (Jul.17-Jul.21), Tianjin Container Freight Index (TCI) decreased with a fluctuation. Tianjin Bulk Freight Index (TBI) continued to increase. Tianjin Domestic Container Freight Index (TDI) fluctuated in a narrow range. Tianjin Shipping Index (TSI) increased with a fluctuation. The TSI was closed at 537.24 points with an increase of 0.91% from Jul.14(the last release day of Week 28). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Jul.10 to Jul.21. The value of TSI in Week 29 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 29, 2017 (Jul.17-Jul.21), the trend of TCI is shown in the chart below:

In Week 29, the TCI decreased after a fluctuation.

On Jul.17(Mon.), the freight rates in European route and Mediterranean route increased. The freight rates in South American Route and India-Pakistan route showed a weak trend,the TCI increased by 0.43% on a day-on-day basis. From Jul.18 to Jul.21 (Tues. to Fri.), the freight rates in European route, Mediterranean West route, South American East Coast route and India-Pakistan route continued to decrease. The freight rates in Mediterranean East route decreased with a fluctuation. The freight rates in North American route kept stable and then decreased slightly. The freight rates in South American West Coast route and Central South American route increased slightly. The TCI decreased continually by 3.34 % on four consecutive release days

On Jul.21(Fri.), the TCI ended at 498.44 points with a decrease of 15.02 points (2.93%) from Jul.14(the last release day of Week 28).

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

European/ Mediterranean route

Some shipowners tried to push up the freight rate at the beginning of the week, but due to current low cargo volume, the freight rate decreased overall after a brief increase. The freight rate in European route and Mediterranean West route decreased significantly, the freight indices decreased by 5.67% and 2.40% this week. The freight rate in Mediterranean East route fluctuated slightly after an increase at the beginning of the week,the freight indices increased by 0.82% on a week-on-week basis.

North American route

The transport capacity kept high, the freight transportation demand remained stable. Some shipowners lower the freight rate slightly for supply of cargo and the freight rate kept previous week’s tendency, stable with a slight decrease. The freight indices in North American West Coast route and North American East Coast route decreased by 1.36% and 0.53% respectively this week.

South American route

At the beginning of the week, the freight rate in South American West Coast route and Central South American route continued to decrease. The positive impact brought by the rebounded cargo volume and reduced shipowners’ transport capacity pushed GRI slightly at the end of the week. The center of freight rate increased slightly. The freight indices increased by 3.09% and 1.73% respectively on a week-on-week basis. The freight rate in South American East Coast route kept increasing for a month. But the weak cargo import volume makes it difficult to keep the current high freight rate. The freight rate decreased this week and the freight indices decreased by 3.87% on a week-on-week basis.

India-Pakistan route

The strike in India and Pakistan pushed up the freight rate markedly. After the problem was solved, the cargo volume became the key factor that affect the trend of the freight rate. Due to current high freight rate, the cargo owners are taking a wait-and-see attitude. The cargo volume continued to decline, the freight rate decreased rapidly and the freight indices decreased by 9.96% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 29, 2017 (July.17- July.21), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 29, the TBI continued to increase.

From Jul. 17 to Jul. 18 (Mon. to Tue.), the freight rate of coal increased obviously, the freight rate of grain increased slightly and that of mineral ore dropped slightly. The TBI increased on two continuous release days with a rise of 1.11%. From Jul. 19 to Jul.20 (Wed. to Thu.), the freight rates of coal, grain and mineral ore all increased, which led the TBI continue to increase with a rise of 2.85% on two continuous release days.

On Jul. 21 (Fri.), the freight rates of coal and mineral ore continued to increase, the freight rate of grain drop slightly, and the TBI ended at 649.44 points with an increase of 30.05 points (4.85%) from Jul. 14 (the last release day of week 28).

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

The TBCI increased constantly this week and ended at 517.13 points with an increase of 31.32 points (6.45%) from Jul. 14 (the last release day of Week 28). The increase of the amount of the coal for foreign trade made the freight rate increase. For the Panamax market, the shipping capacity tightens in the Pacific region, the freight rate of the DBCT to Tianjin route increased over 9.5%. For the Capesize market, the freight rate increased obviously in the later part of the week, and that of Hay Point to Qingdao route increased over 2% this week.

The TBGI increased this week and ended at 594.24 points with an increase of 5.88 points (1.00%) from Jul. 14 (the last release day of week 28). South America attracted a large number of Panamax carriers in ballast supply and the freight rate recovered further. The freight rate of South America to Tianjin route increased over 1% this week, but the freight rate was hard to sustain with the arrival of the vessels in ballast supply. The freight rate of West America to Tianjin route increased about 0.5% and the freight rate of US Gulf to Tianjin route increased over 1% this week.

The TBMI rose continuously after a small drop earlier this week. The TBMI ended at 836.96 points with an increase of 52.97 points (6.76%) from Jul. 14 (the last release day of week 28). For the iron ore, domestic steel price was strong and the operating rate of steel mills maintained a high level, which supported the imports of the iron ore. The freight rate continued to increase. The freight rate of West Australia to North China route increased over 8% and the freight rate of Brazil to Tianjin route increased about 7%. As for nickel ore, the deal of nickel ore was active this week and the freight rate of Surigao to Tianjin route increased over 2.5%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 29, 2017 (Jul.17-Jul.21), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 29, the TDI adjusted slightly.

This week, the Outward Index return to stable and TDI shocked in narrow range with the change of the Inward Index. On Jul.17 (Mon.), the Inward Index kept stable. From Jul.18 to Jul.19 (Tue. to Wed.), the Inward Index decreased and TDI decreased 0.12% in two days. On Jul.20 (Thu.), the Inward Index increased slightly and TDI increased 0.03%. On Jul.21 (Fri.), the TDI kept stable. Finally, the TDI was closed at 594.59 points with a decrease of 0.58 points (0.10%) from Jul.14 (the last release day of Week 28).

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

Tianjin Domestic Container Outward Freight Index (TDOI) kept stable this week. The TDOI was closed at 647.79 points on Jul.21 (Fri.) which was the same with Jul.14 (the last release day of Week 28). This week, ship companies kept watching the market after the big increase of freight rate in last week. The freight rates of three routes were the same with last week, and the indices of three routes kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly this week. The TDII was closed at 541.39 points on Jul.21 with a decrease of 1.15 points (0.21%) from Jul.14 (the last release day of Week 28). The trends of freight rate of three route were different. The freight rate of Guangzhou-Tianjin route decreased and the index decreased 0.52%. The index of Shanghai-Tianjin route increased 0.58%. The freight rate of Quanzhou-Tianjin route kept stable.

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