Tianjin Shipping Index (Aug.21-Aug.25)

Sep 1, 2017

Ⅰ. Tianjin Shipping Index (TSI)

Week 34, 2017 (Aug.21-Aug.25), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) increased and then decreased. Tianjin Domestic Container Freight Index (TDI) decreased slightly early this week and then kept stable. Tianjin Shipping Index (TSI) showed weak trend. The TSI was closed at 563.46 points with a decrease of 1.74% from Aug.18 (the last release day of Week 33). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Aug. 14 to Aug.25. The value of TSI in Week 34 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 34, 2017 (Aug.21-Aug.25), the trend of TCI is shown in the chart below:

In Week 34, the TCI continued the decrease trend.

From Aug.21 to Aug. 22(Mon. to Tue.), the freight rates in European route and Mediterranean West route decreased and then increased. The freight rates in Mediterranean East route, North American route, South American route and Persian Gulf route continued to decrease. The TCI decreased 0.70% on two consecutive release days. From Aug.23 to Aug. 25(Wed. to Fri.), the freight rates in European route and Mediterranean East route decreased steadily. The freight rates in North American route, South American route and Persian Gulf route continued to decrease and the decrease was extended. The freight rates in Mediterranean West route decreased and then increased. The TCI showed a weak trend and decreased 1.67% on three consecutive release days.

The TCI ended at 452.06 points with a decrease of 10.93 points (2.36%) from Aug.18 (the last release day of Week 33).

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

European/Mediterranean route For the past one month, the transaction volume of cargo was depressed. The freight rates continued to decrease. The high cost pressure left the ship owners limited room to decrease the freight rates. Meanwhile, the European importers’ summer holiday was coming to an end, the ship owners in European route and Mediterranean West route started to implement the increase plan. The freight rates increased with a fluctuation and the freight indices increased 0.25% and 3.12% on a week-on-week basis. In comparison, the freight rates in Mediterranean East route presented a weak trend and the freight indices decreased 3.25% on a week-on-week basis.

North American route The freight volume presented a positive and steady trend. After a period of continuous increase, the freight rates hit a five-month high last week. There existed high pressure that the freight rates may decrease. The Market expectations shifted from optimism to caution. The freight indices in North American West Coast route and North American East Coast route decreased 4.99% and 6.25% this week.

South American route Cargo volume from factories and the traders declined rapidly. The competition for cargo was intensified. The freight rates decreased sharply. The freight indices in South American West Coast route, South American East Coast route and Central South American route decreased 15.59%, 10.91% and 11.74% respectively this week.

Persian Gulf Route The cargo volume kept decreasing. The shortage of low density cargo was not obviously relieved. In order to maintain the berth utilization ratio, the ship owners lowered the price. The freight indices decreased 8.42% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 34, 2017 (Aug. 21- Aug. 25), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 34, the TBI continued the increase trend earlier in the week but decreased in the middle and later part of the week.

From Aug.21 to 22 (Mon. to Tue.), the freight rates of coal and grain continued to increase and the freight rate of mineral ore remained stable, which led the TBI to increase slightly for two successive release days with an increase of 0.72%. Then, the freight rate of coal fell back, the freight rate of grain decreased slightly and that of mineral ore decreased obviously, which led the TBI to decrease from Aug.23 to 24 (Wed. to Thu.) with a decrease of 2.68%.

On Aug.25 (Fri.), the freight rates of coal and grain decreased slightly and the freight rate of mineral ore stabilized. The decrease of TBI narrowed and ended at 727.24 points with a decrease of 17.47 points (2.35%) from Aug.18 (the last release day of week 33).

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

TBCI increased slightly earlier this week and decreased later. TBCI ended at 541.59 points with a decrease of 19.90 points (3.54%) from Aug. 18 (the last release day of Week 33). The deal of coal in Australia was in a low level this week and the freight rate decreased. For the Panamax market, the freight rate increased fast early in the week but the increase trend did not continue. The freight rate of the DBCT to Tianjin route decreased over 4% this week. For the Capesize market, the freight rate decreased in the later part of the week and the freight rate of Hay Point to Qingdao route decreased over 2.5% this week.

TBGI increased and then decreased this week. TBGI ended at 615.15 points with an increase of 0.69 points (0.11%) from Aug. 18 (the last release day of week 33). The profit of domestic crushing industry increased and the willingness to purchase soybeans ran high. The freight rate was still strong. The freight rate of South America to Tianjin route increased and then decreased, and the freight rate of this weekend was nearly equal to that of last weekend. The freight rate of US Gulf to Tianjin route increased about 0.1% and the freight rate of West America to Tianjin route increased about 0.4%.

TBMI decreased as a whole this week. TBMI ended at 1024.98 points with a decrease of 33.20 points (3.14%) from Aug. 18 (the last release day of week 33). For the iron ore, the purchase willingness of steel mills was not strong, and miners and charterers of West Australia left the market gradually. The ship-owners’ capacity to keep the freight rate weakened and the freight rate of West Australia to North China route decreased over 5%. The market of Atlantic began high and then fell. The freight rate of Brazil to Tianjin route increased and then decreased and the increase at last was about 2%. As for nickel ore, the freight rate of Surigao to Tianjin route was stable earlier this week but decreased slightly later, and the freight rate decreased 1.75% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 34, 2017 (Aug.21-Aug.25), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 34, the TDI decreased and then turn to be stable.

On Aug 21 (Mon.), both the Inward and Outward Index decreased slightly and led the TDI decreased 2.74 points or 0.42%. From Aug.22 to Aug.23 (Tue. to Wed.), the Inward Index kept stable and the Outward Index increased slightly which led the TDI increased slowly in two days. From Aug.24 to Aug.25 both the Inward and Outward Index kept stable. Finally, the TDI was closed at 655.14 points with a decrease of 1.99 points (0.30%) from Aug.18 (the last release day of Week 33).

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 decreased and then kept stable in this week. The TDOI was closed at 729.72 points on Aug.25 (Fri.) with a decrease of 5.4 points (0.73%) compared with that of Aug.18 (the last release day of Week 33). In this week, the freight rate of outward routes market begun to decrease after watching the market for one week and the decrease of three routes were different. The index of Tianjin-Quanzhou route decreased 0.37% on a w-o-w basis. The index of Tianjin-Shanghai route decreased 0.30%. The freight rate of Tianjin-Guangzhou route decreased the most and the index decreased 0.88%.

Tianjin Domestic Container Inward Freight Index (TDII) adjusted in narrow range. The TDII was closed at 580.55 points on Aug.25 with an increase of 1.42 points (0.25%) from Aug.18 (the last release day of Week 33). The trends of the freight rate of three routes were different. The rate in Guangzhou-Tianjin route kept increase but the increasing range was narrowed. The index increased 0.79 on a w-o-w basis. The freight rate of Shanghai-Tianjin route was weak and the index decreased 1.49%. The freight rate of Quanzhou-Tianjin route kept stable.

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