Tianjin Shipping Index(Aug.28-Sep.1)

Sep 7, 2017

Ⅰ. Tianjin Shipping Index (TSI)

Week 35, 2017 (Aug.28-Sep.1), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) shocked narrowly. Tianjin Domestic Container Freight Index (TDI) increased slightly. Tianjin Shipping Index (TSI) fluctuated slightly. The TSI was closed at 562.45 points with a decrease of 0.18% from Aug.25 (the last release day of Week 34). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Aug. 21 to Sep.1. The value of TSI in Week 35 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 35, 2017 (Aug.28-Sep.1), the trend of TCI is shown in the chart below:

In Week 35, the TCI kept decreasing.

From Aug.28 to Aug. 29(Mon. to Tue.), the freight rates in European route and Mediterranean route increased. The freight rates in North American route, South American route and Persian Gulf route kept decreasing. The TCI decreased 0.81% on two consecutive release days. From Aug.30 to Sep.1 (Wed. to Fri.), the freight rates in European route, Mediterranean route North American route, South American route and Persian Gulf route decreased overall. The TCI continued the decrease trend and the decrease were extended by 2.54% on three consecutive release days.

The TCI was closed at 437.01 points with a decrease of 15.05 points (3.33%) from Aug.25 (the last release day of Week 34).

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

European/Mediterranean route Some ship owners predicted that after the summer holiday, cargo volume will be recovered on the import market of the destination countries and the ship owners increased the freight rates early this week. In latter half of the week, the increase trend did not continue because different ideas on future market arose and the freight rates decreased. At last, the freight rates in European route and Mediterranean West route decreased sharply. The freight indices decreased 1.52% and 3.66% respectively on a week-on-week basis. The freight rates in Mediterranean East route enjoyed a good momentum of increase and the freight indices increased 1.57% on a week-on-week basis.

North American route After a period of continuous increase, the freight rates hit a five-month high in mid-August. Then, the freight rates started to decrease slightly. This week, the freight rate was decreased to increase the berth utilization ratio. The center of freight rate kept decreasing and the freight indices in North American West Coast route and North American East Coast route decreased 3.20% and 2.75% respectively on a week-on-week basis.

South American route Restricted by the weak economy in South American region, the cargo volume continued the weak trend. The freight rates kept decreasing this week. The freight indices in South American West Coast route, South American East Coast route and Central South American route decreased 7.75%, 9.38% and 7.56% respectively this week.

Persian Gulf Route The cargo volume kept decreasing without alleviation. The low density cargo was in short. The freight rates decreased overall and the freight rate of large container cargo decreased more markedly. The freight indices decreased 13.88% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 35, 2017 (Aug.28 - Sep.1), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 35, the TBI presented narrow shocks.

From Aug. 28 to 29 (Mon. to Tue.), the freight rates of coal, grain and mineral ore all increased slightly, which led the TBI to increase for two successive release days with an increase of 2.04%. Then, the freight rates of coal and grain were easing off and the freight rate of mineral ore fell back obviously, which led the TBI to decrease from Aug.30 to 31 (Wed. to Thu.) with a decrease of 2.07%.

On Sep.1 (Fri.), the freight rates of coal and grain were stable as a whole and the freight rate of mineral ore stabilized and increased. The TBI rebounded and ended at 735.32 points with an increase of 8.08 points (1.11%) from Aug. 25 (the last release day of week 34).

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

TBCI moved within a narrow range and ended at 535.52 points with a decrease of 6.07 points (1.12%) from Aug. 25 (the last release day of Week 34). Domestic coal demand decreased slightly and the decrease trend of the freight rate continued. For the Panamax market, carriers were enough this week and the freight rate continued to decrease. The freight rate of the DBCT to Tianjin route decreased about 3% this week. For the Capesize market, the freight rate increased and the freight rate of Hay Point to Qingdao route increased about 1.5% this week.

TBGI increased slightly as a whole and ended at 617.93 points with an increase of 2.78 points (0.45%) from Aug. 25 (the last release day of week 34). Domestic demand for soybeans increased and the freight rate was still strong. A large number of ships in ballast arrived in South America but the freight rate of South America to Tianjin route shocked to increase with a rise of 0.70%. By contrast, the increase of the freight rate of US Gulf to Tianjin route and the increase of the freight rate of West America to Tianjin route were both about 0.2%.

TBMI shocked and increased this week. TBMI ended at 1052.51 points with an increase of 27.53 points (2.69%) from Aug.25 (the last release day of week 34). For the iron ore, the markets of two oceans differentiated. The freight rate of Pacific Ocean market decreased obviously in the middle of the week. On the weekend, cargos in Australia increased and the freight rate stopped falling and rebounded. The freight rate of West Australia to North China route increased about 4%. The freight rate of Atlantic market decreased slightly later in the week and the freight rate of Brazil to Tianjin route decreased over 2%. As for nickel ore, the increase of nickel ore cargos made the freight rate increase and the freight rate of Surigao to Tianjin route increased over 4% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 35, 2017 (Aug.28-Sep.1), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 35, the TDI kept stable at the beginning of this week and increased at the end of the week.

On Aug 28 (Mon.), both the Inward and Outward Index kept stable and led the TDI remain the same level with last week. From Aug.29 to Aug.30 (Tue. to Wed.), the Outward Index kept stable and the Inward Index increased slightly which led the TDI increased slowly in two days. From Aug.31 to Sep.1 (Thu. to Fri.) the Inward and Outward Index increased with different range which drove the TDI increased 4.57 points. Finally, the TDI was closed at 660.19 points with an increase of 5.05 points (0.77%) from Aug.25 (the last release day of Week 34).

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

TDOI Tianjin Domestic Container Outward Freight Index (TDOI) increased slightly in this week. The TDOI was closed at 731.35 points on Sep.1 (Fri.) with an increase of 1.63 points (0.22%) compared with that of Aug.25 (the last release day of Week 34). In this week, the freight rate of outward routes market kept stable. The freight rate of Tianjin-Quanzhou/Shanghai route remained the stable trend and the indices were the same with last week. The freight rate of Tianjin-Guangzhou route increased slightly and the freight indices increased 0.31%.

TDII Tianjin Domestic Container Inward Freight Index (TDII) kept increasing. The TDII was closed at 589.02 points on Sep.1 with an increase of 8.47 points (1.46%) from Aug.25 (the last release day of Week 34). The Inward Index kept increasing trend. The increase range of the rate in Guangzhou-Tianjin route widened. The index increased 1.12% on a w-o-w basis. The freight rate of Quanzhou-Tianjin route increased slightly after being stable for one month. The index increased 4.04% on a w-o-w basis. The freight rate of Shanghai-Tianjin route kept stable.

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