Tianjin Shipping Index(Jul.31-Aug.4)

Aug 11, 2017

I. Tianjin Shipping Index(TSI)

Week 31, 2017 (Jul.31-Aug.4), Tianjin Container Freight Index (TCI) decreased rapidly after a slight fluctuation. Tianjin Bulk Freight Index (TBI) decreased slightly and then kept increasing. Tianjin Domestic Container Freight Index (TDI) increased. Tianjin Shipping Index (TSI) decreased and then increased. The TSI was closed at 557.97 points with an increase of 3.28% from Jul.28 (the last release day of Week 30). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Jul.24 to Aug.4. The value of TSI in Week 31 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 31, 2017 (Jul.31-Aug.4), the trend of TCI is shown in the chart below:

In Week 31, the TCI decreased rapidly after a slight fluctuation.

From Jul.31 to Aug.1 (Mon. to Tue.), the freight rate in European route, Mediterranean route, South American East Coast Route and Persian Gulf Route were in a low level. The freight rate in North American route increased markedly. The freight rate in South American West Coast route and Central South American route increased and then decreased. The TCI decreased and then increased. The TCI decreased 0.12% on two consecutive release days. From Jul.2 to Jul.4 (Wed. to Fri.), the freight rate in European route, Mediterranean route, South American Route and Persian Gulf Route decreased. The freight rate in North American route kept the upward trend. The TCI kept the downward trend and decreased 2.98% on three consecutive release days.

The TCI ended at 492.41 points with a decrease of 15.76 points (3.10%) from Jul.28 (the last release day of Week 30).

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

European/ Mediterranean route

Last weekend, some ship owners tried to raise the freight rate. But the freight rate did not keep the upward trend this week for the low cargo volume. The market kept reducing the freight rate due to ship loading pressure. In European route, Mediterranean East route and Mediterranean West route, the freight index decreased 5.92%, 5.83% and 3.99% respectively this week.

North American route

The cargo volume basically stable

The cargo volume assumes a recovery trend. The transport capacity put on the market was relatively stable. After some ship owners raise the freight rate last week, other ship owners raised GRI this week. The freight rate maintained strong the whole week. The freight indexes in North American West Coast route and North American East Coast route increased by 11.05% and 11.5% respectively this week.

South American route

Since the integration of transport capacity in May, the freight rate rose around 40%. There is a pressure on the market that the freight rate may decrease. However, the import volume in South American region is hard to play a supporting role for the freight rate. The freight rate in South American West Coast route and Central South American route hit a high point early this week and then started to decrease. The freight index decreased 1.75% and 1.82% respectively on a week-on-week basis. The ship owners in South American East Coast route reduced the freight rate to gain cargo volume. The center of freight rate kept decreasing and the freight index decreased 4.19% on a week-on-week basis.

Persian Gulf Route

After Ramadan, the market recovered less than expected. Although the ship owners took measures to reduce transport capacity, it is ineffective. The freight rate kept decreasing and the freight index decreased 8.34% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 31, 2017 (Jul. 31- Aug. 4), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 31, the TBI decreased slightly and then showed a rapid rebound trend.

On Jul. 31(Mon), the freight rate of coal decreased markedly. The freight rate of grain and mineral decreased slightly. The TBI kept a week trend and decreased 1.21% on a day-on-day basis. Then, the freight rate of coal and grain kept stable and increased. The freight rate of mineral increased rapidly, which led the TBI increased by 7.5 % from Aug. 1 to Aug. 3 (Tue. to Thu.).

On Aug.4 (Fri.), the freight rate of mineral increased slower and the TBI ended at 667.99 points with an accumulated increase of 44.10 points (7.07%) from Jul. 28 (the last release day of Week 30).

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

The TBCI decreased markedly early this week. In the middle and later half of the week, the TBCI stopped decreasing and started to increase. The TBCI ended at 482.37 points with an increase of 19.09 points (4.12%) from Jul. 28 (the last release day of Week 30). For the Panamax, coal pallets in the Pacific region increased. The freight rate of DBCT to Tianjin route decreased and then increased. The freight rate increased over 3.5% this week. The freight rate of Capesize market increased more markedly. The freight rate of Hay Point to Qingdao route increased around 5% this week.

The TBGI increased slightly this week and ended at 584.77 points with an increase of 5.15 points (0.89%) from July 28 (the last release day of Week 30). The cargo volume of grain in South America increased. The soaring freight rate of Capesize ships drove a stronger Panamax market. The freight rate of grain kept stable and increased. The freight rate of South America to Tianjin route increased around 1.2% this week. The freight rate of West America to Tianjin route and U.S. Gulf to Tianjin route increased around 0.6% this week.

The TBMI rebounded sharply this week. The TBMI ended at 936.83 points with an increase of 108.06 points (13.04%) from Jul.28 (the last release day of Week 30). For iron ore, the demand in China is expected to rise, the price of iron ore was pushed up and business was increased on transportation market, which drove the freight rate increased rapidly. The freight rate of West Australia to North China route increased over 19%. The freight rate of Brazil to Tianjin route increased over 7.5%. As for nickel ore, the Handysize vessels were overcapacity. The freight rate of Surigao (Philippines) to Tianjin route decreased over 1% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 31, 2017 (Jul.31-Aug.4), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 31, the TDI decreased slightly and then increased sharply.

On Jul.31 (Mon.), the Outward Index kept stable and the Inward Index remained the downward trend which led the TDI decreased 0.40%. On Aug.1 (Tue.), the Inward Index increased significantly and the Outward Index decreased slightly which led TDI created the biggest increase 4.74% of this week. From Aug.2 to Aug.3 (Wed. to Thu.), both the Outward and Inward Index kept stable which led the TDI kept stable. On Aug.4 (Fri.) the Inward Index rebounded and led the TDI increased slightly. Finally, the TDI was closed at 658.24 points with an increase of 31.86 points (5.09%) from Jul.28 (the last release day of Week 30).

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 last week’s upward trend. The TDOI was closed at 762.89 points on Aug.4 (Fri.) with an increase of 59.72 points (8.49%) from Jul.28 (the last release day of Week 30). The trends of the freight rate of three routes were different. The freight rate of Tianjin-Quanzhou/Shanghai route kept stable. In Tianjin-Guangzhou route, some ship companies adjusted the price strategy so they increased freight rate of light cargo significantly and lower the freight rate to attract coal which led the freight rate increased sharply. And the index increased 12.07% on a w-o-w basis.

Tianjin Domestic Container Inward Freight Index (TDII) first decreased and then increased. The TDII was closed at 553.58 points on Aug.4 with an increase of 4.00 points (0.73%) from Jul.28 (the last release day of Week 30). The freight rate of Guangzhou-Tianjin route kept the last week’s increase strategy but the increasing range was narrowed. The index increased 1.05%. The freight rate of Shanghai-Tianjin route increased slightly and the index increased 0.40%. The freight rate of Quanzhou-Tianjin route kept stable.

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