Tianjin Shipping Index (Jul.24-Jul.28)

Aug 3, 2017

I.Tianjin Shipping Index (TSI)

Week 30, 2017 (Jul.24-Jul.28), Tianjin Container Freight Index (TCI) first adjusted then rise fast. Tianjin Bulk Freight Index (TBI) first rise then decline to the initial level of last week. Tianjin Domestic Container Freight Index (TDI) rose sharply in the first half of the week and then tended to be smooth. Tianjin Shipping Index (TSI) first rise then decline and was closed at 540.24 points with an increase of 0.56% from Jul.21(the last release day of Week 29). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Jul.24 to Jul.28. The value of TSI in Week 30 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 30, 2017 (Jul.24-Jul.28), the trend of TCI is shown in the chart below:

In Week 30, the TCI first shocked in narrow range and then rebound rapidly.

From Jul.24 to Jul.26 (Mon. to Wed.), the freight rates in European route and Mediterranean route fluctuated slightly. The freight rates in North American Route kept stable. The freight rates in South America West Coast Route and Central South America Route increased. The freight rates in South American East Route and India-Pakistan Route showed a weak trend,the TCI fell 0.23% on three release days. From Jul.27 to Jul.28 (Thu. to Fri.), the freight rates in European Route, Mediterranean Route, North American Route, South American West Coast Route and Central South America route overall rise. The freight rates in South America East route, India-Pakistan Route continued to decline. The TCI recovered quickly by 2.19 % on two consecutive release days.

The TCI ended at 508.17 points with an increase of 9.73 points (1.95%) from Jul.21(the last release day of Week 29).

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

European/ Mediterranean route

The deal was depressed at the beginning of the week, the freight rate fluctuated in narrow range. The companies implemented price increase plan and freight rebounded at the end of the week.

The increase range of the freight rate in European route and Mediterranean West route was relatively larger, the freight indices increased by 7.12% and 3.57% this week. The freight rate in Mediterranean East route increased weakly due to some shipowners tried to push up the freight last week and the freight indices increased by 0.98% on a week-on-week basis.

North American route

Factory shipments grew slowly and the supply of shipping capacity remained stable. The market freight was stable in the early week. Some shipowners try to push up the GRI at the weekend and the freight rates rose significantly. The freight indices in North American West Coast route and North American East Coast route increased by 7.73% and 4.30% respectively this week.

South American route

The trends of freights were different. In South American West Coast Route and Central South American Route, the purchase of goods rose steadily and the deploy of slots reduced. The freight rate the slow increase trend of last week. The freight indices increased by 3.69% and 4.45% respectively on a week-on-week basis. The market of South American East Coast route focused on price reduction to ensure cabin utilization this week. The freight rate decreased and the index decreased by 3.85% on a week-on-week basis.

India-Pakistan route

Due to the lack of cargo volume, some shipowners accepted light goods. The freight rate of large container decreased significantly and kept a downward trend. The freight index decreased by 5.83% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 30, 2017 (Jul. 24- Jul. 28), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 30, the TBI continued to increase in the first half of the week but decreased obviously in the rest half of the week.

From Jul. 24 to Jul. 26 (Mon. to Tue.), the freight rates of coal and grain decreased slightly, the freight rate of mineral ore continued to increase. The TBI increased on three continuous release days with a rise of 1.02%. Then, the freight rates of coal and grain continued to decrease, and the freight rate of mineral began to decrease, which led the TBI drop obviously from Jul. 27 to Jul. 28 (Thu. to Fri.) with a decrease of 4.90% on two continuous release days.

At last, the TBI ended at 623.89 points with a decrease of 25.55 points (3.93%) from Jul. 21 (the last release day of Week 29).

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

The TBCI decreased constantly this week and the day-on-day decrease extended on each release day. The TBCI ended at 463.28 points with a decrease of 53.85 points (10.41%) from Jul. 21 (the last release day of Week 29). For the Panamax market, the freight rate increased continuously in early days and was close to the higher level of the year. Carriers were in sufficient supply this week and the shipowners were eager to fix the deal, as a result, the freight rate of the Panamax became loose. The freight rate of the DBCT to Tianjin route decreased near 16%. For the Capesize market, the freight rate decreased obviously in the later part of the week, and that of Hay Point to Qingdao route decreased over 2.5% this week.

The TBGI decreased slightly this week and ended at 579.62 points with a decrease of 14.62 points (2.46%) from July 21 (the last release day of Week 29). Continuous arrival of the ships in ballast supply in South America caused an oversupply of the shipping capacities. The Panamax market was affected and the freight rate of grain falling significantly. The freight rate of South America to Tianjin route decreased about 3% this week. The freight rate of West America to Tianjin route decreased about 3% and the freight rate of US Gulf to Tianjin route decreased over 2% this week.

The TBMI rose first and then fell this week. The TBMI ended at 828.77 points with a decrease of 8.19 points (0.98%) from Jul. 21 (the last release day of Week 29). For the iron ore, the market transaction was active and the freight rate continued to increase at the beginning of week. Later in the week, affected by falling of the FFA market price, the freight rate of Capesize began to decrease. The freight rate of West Australia to North China route decreased over 1% and the freight rate of Brazil to Tianjin route decreased about 1%. As for nickel ore, the freight rate of Handysize decreased with slight shock this week and the freight rate of Surigao to Tianjin route decreased about 0.2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 30, 2017 (Jul.24-Jul.28), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 30, the TDI increased quickly and then adjusted slightly.

From Jul.24 to Jul.25 (Mon. to Tue.), the Outward Index increased quickly and the Inward Index recovered slightly. The TDI increased continuously and created the year’s biggest one-day gain which was 4.62%. From Jul.26 to Jul.28 (Wed. to Fri.), the Inward Index decreased slightly and the Outward Index kept stable which led TDI decreased 0.11% on three release days. Finally, the TDI was closed at 626.38 points with an increase of 31.79 points (5.35%) from Jul.21 (the last release day of Week 29).

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

Tianjin Domestic Container Outward Freight Index (TDOI) first increased quickly and then kept stable this week. The TDOI was closed at 703.17 points on Jul.28 (Fri.) with an increase of 55.38 points (8.55%) from Jul.21 (the last release day of Week 29). This week, the pressure of transfer of containers was still exist and some ship companies increased freight rate to kept the balance of usage of containers. Among three routes, the freight rate of Tianjin-Shanghai route increased the most and the index increased 120.67 points (16.93%). The indices of Tianjin-Guangzhou/Quanzhou increased 7.28% and 9.36% respectively.

Tianjin Domestic Container Inward Freight Index (TDII) increased slightly this week. The TDII was closed at 549.58 points on Jul.21 with an increase of 8.19 points (1.51%) from Jul.21 (the last release day of Week 29). The trends of freight rate of three route were different. The freight rate of Guangzhou-Tianjin route increased due to the pressure of operation cost and the index increased 2.58%. The index of Shanghai-Tianjin route decreased 0.45%. The freight rate of Quanzhou-Tianjin route kept stable.

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