Tianjin Shipping Index (Sep.4-Sep.8)

Sep 15, 2017

I. Tianjin Shipping Index (TSI)

Week 36, 2017 (Sep.4-Sep.8), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) increased markedly. Tianjin Domestic Container Freight Index (TDI) fluctuated slightly and decreased rapidly at weekends. Tianjin Shipping Index (TSI) increased with fluctuation. The TSI was closed at 571.61 points with an increase of 1.63% from Sep.1 (the last release day of Week 35). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Aug. 28 to Sep.8. The value of TSI in Week 36 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 36, 2017 (Sep.4-Sep.8), the trend of TCI is shown in the chart below:

In Week 36, the TCI kept decreasing.

From Sep.4 to Sep.6 (Mon. to Wed.), the freight rates in European route, Mediterranean route, North American route, South American route and India-Pakistan route decreased overall. The TCI continued to decrease by 3.63% on three consecutive release days. From Sep.7 to Sep.8 (Thu. to Fri.), the freight rates in European route, Mediterranean route, North American route,South American West Coast route, South American East Coast route and India-Pakistan route kept the decrease trend, and the range narrowed. The freight rates in Central South American route increased. The TCI decreased slightly by 0.65% on two consecutive release days.

The TCI was closed at 418.39 points with a decrease of 18.62 points (4.26%) from Sep.1 (the last release day of Week 35).

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

European/Mediterranean route Purchase volume of cargo from the importing countries was not obviously recovered and the competition for cargo was still fierce. Therefore, the freight rate presented a weak trend this week. The freight indices in European route and Mediterranean West route decreased 4.87% and 3.64% respectively on a week-on-week basis. The ship owners of Mediterranean East route were under high cargo collecting pressure and the freight rate decreased markedly. The freight indices decreased 12.43% on a week-on-week basis.

North American route The cargo volume declined while the scale of transport capacity remained a high level. The ship owners kept decreasing the GRI to guarantee the loading rate. The freight rate decreased slightly. The freight indices in North American West Coast route and North American East Coast route decreased 2.99% and 2.26% respectively on a week-on-week basis.

South American route For nearly two months, the trade on South American route presented a weak trend. The freight rate decreased nearly 30%. Under the pressure of operating cost, the room for ship companies to lower the freight rate was limited. The freight rate decreased overall this week and the range was much narrower than that of last week. Some ship owners in Central South American route tried to raise the freight rate up in the second half of the week. The freight rates in South American West Coast route, South American East Coast route and Central South American route decreased 3.47%, 6.61% and 0.42% respectively this week.

India-Pakistan route Since the strike by workers of India Dock was settled in July, supply and demand of cargo transport capacity became the key factor that determines the trend of freight rates. The frequencies of voyage were increased by some ship owners, and the sharp increase in earlier stage overdraft the increase space. Therefore, the freight rates kept decreasing without a sign of improvement. The freight indices decreased 7.99% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 36, 2017 (Sep. 4 - Sep. 8), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 36, the TBI increased obviously.

From Sep.4 to 5 (Mon. to Tue.), the freight rates of coal and grain increased slightly, the freight rate of mineral ore shocked narrowly, which led the TBI to increase for two successive release days with an increase of 0.48%. Then, the increase trend of the freight rate of grain continued, the freight rates of coal and mineral ore increased obviously, which led the TBI to increase from Sep.5 to 8 (Wed. to Fri.) with an increase of 6.91%.

On Sep.8 (Fri.), the TBI ended at 789.88 points with an increase of 54.56 points (7.42%) from Sep.1 (the last release day of week 35).

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

TBCI increased continuously this week and the increase extended in the later part of the week. TBCI ended at 608.47 points with an increase of 72.95 points (13.62%) from Sep.1 (the last release day of Week 35). For the Panamax market, the deal of coal in Australia was weak earlier this week but it became active later in the week. The freight rate of the DBCT to Tianjin route increased over 20% this week. For the Capesize market, the freight rate increased and the freight rate of Hay Point to Qingdao route increased over 5% this week.

TBGI increased slightly and ended at 638.34 points with an increase of 20.41 points (3.30%) from Sep. 1 (the last release day of week 35). U.S. soybean exports were expected to increase and the freight rate increased steadily. Atlantic transport capacity was balanced. The freight rate of South America to Tianjin route increased over 3% and the freight rate of US Gulf to Tianjin route increased about 3.5%. By contrast, the increase of the freight rate of West America to Tianjin route was about 2.9%.

TBMI moved with narrow shocks earlier this week and increased obviously later. TBMI ended at 1122.82 points with an increase of 70.31 points (6.68%) from Sep.1 (the last release day of week 35). For the iron ore, the deal in Pacific markets was active and the freight rate increased continuously. The freight rate of West Australia to North China route increased about 8%. Atlantic cargo volume was not big. The freight rate of Brazil to Tianjin route increased over 2%. As for nickel ore, the deal of cargos concentrated, which led the freight rate to increase fast. The freight rate of Surigao to Tianjin route increased over 7.5% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 36, 2017 (Sep.4-Sep.8), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 36, the TDI decreased shock.

From Sep.4 to Sep.5 (Mon. to Tue.), the Outward Index decreased and the Inward Index first decreased and then increased and led the TDI decreased in two days. From Sep.6 to Sep.7 (Wed. to Thu.), the Outward Index kept stable and the Inward Index increased slightly which led the TDI to increase. On Sep.8 (Fri.) the Outward Index decreased sharply and the Inward Index kept stable, which led the TDI decreased 1.43%. Finally, the TDI was closed at 649.33 points with a decrease of 10.86 points (1.64%) from Sep.1 (the last release day of Week 35).

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

Tianjin Domestic Container Outward Freight Index (TDOI) decreased significantly this week. The TDOI was closed at 707.51 points on Sep.8 (Fri.) with a decrease of 23.84 points (3.26%) from Sep.1 (the last release day of Week 35). In this week, the outward market was depressed and shipping companies lower the freight rate to maintain the market share. The freight rate of three routes decreased and that of Tianjin-Shanghai route decreased most and the index decreased 4.61% on a w-o-w basis. The index of Tianjin-Quanzhou route decreased 4.16%. The index of Tianjin-Guangzhou route decreased 2.86%.

Tianjin Domestic Container Inward Freight Index (TDII) first decreased and then increased. The TDII was closed at 591.14 points on Sep.8 with an increase of 2.12points (0.36%) from Sep.1 (the last release day of Week 35). The trends of three inward routes were different. The freight rate of Quanzhou-Tianjin was stable after slight increase in last week. The freight rate of Guangzhou-Tianjin route increased and the index increased 0.92% on a w-o-w basis. The market of Shanghai-Tianjin route was just normal but the supply of ships increased so the shipping companies lower the freight rate to maintain the loading rate and the index decreased 1.37%.

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