Tianjin Shipping Index (Sep.11-Sep.15)

Oct 9, 2017

I. Tianjin Shipping Index (TSI)

Week 37, 2017 (Sep.11-Sep.15), Tianjin Container Freight Index (TCI) kept decreasing. Tianjin Bulk Freight Index (TBI) increased markedly. Tianjin Domestic Container Freight Index (TDI) stabilized and increased. Tianjin Shipping Index (TSI) increased with fluctuation. The TSI was closed at 580.15 points with an increase of 1.49% from Sep.8 (the last release day of Week 36). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Sep.4 to Sep.15. The value of TSI in Week 37 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 37, 2017 (Sep.11-Sep.15), the trend of TCI is shown in the chart below:

In Week 37, the TCI kept decreasing.

From Sep.11 to Sep.13 (Mon. to Wed.), the freight rates in European route, Mediterranean route and Persian Gulf route decreased markedly. The freight rates in North American route and South American route increased with fluctuation. The TCI continued to decrease by 3.56% on three consecutive release days. From Sep.14 to Sep.15 (Thu. to Fri.), the freight rates in European route, Mediterranean route and Persian Gulf route kept the decrease trend. The freight rate in North American route increased and then decreased. The freight rates in South American West Coast route and Central South American route increased slightly. The freight rate in South American East Coast route decreased slightly. The TCI decreased 1.40% on two consecutive release days with a narrower range.

The TCI was closed at 397.87 points with a decrease of 20.52 points (4.90%) from Sep.8 (the last release day of Week 36).

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

European/Mediterranean route Cargo volume from factories and traders decreased more rapidly. Transport overcapacity was obvious. The freight rates decreased sharply. The freight indices of European route, Mediterranean East route and Mediterranean West route decreased 11.97%、7.29% and 8.91% respectively on a week-on-week basis.

North American route Cargo volume stabilized and increased. In middle of the week, some ship owners tried to raise the freight rate up, but for lacking of consensus, the freight rates decreased from a high point in later half of the week. The freight rate in North American West Coast route enjoyed a good momentum of increase and the freight indices increased 4.16% on a week-on-week basis. The freight rate in North American East Coast route suffered a larger decrease and the freight indices decreased slightly by 0.06%.

South American route After nearly two-month’s continuous decrease, the freight rates fell stabilized this week. Voyages were suspended by shipping alliances and shipping space was reduced. Some ship owners of South American West Coast route and Central South American route tried to raise the GRI up and the freight rates increased slightly with fluctuation. The freight indices increased 0.53% and 0.11% respectively this week. The freight rate in South American East Coast route increased in the first half of the week and decreased in later half of the week. The freight indices increased 1.08% this week.

Persian Gulf Route Cargo volume on the market presented a week trend. The low density cargo was still in short. The freight rate kept decreasing. The freight indices decreased 10.31% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 37, 2017 (Sep.11-Sep.15), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 37, the TBI increased continuously.

On Sep.11 (Mon.), the freight rates of coal, grain and mineral ore all increased, which led to a day-on-day TBI increase of 1.28%. Then, the freight rates of coal and grain continued to increase and the freight rate of mineral ore decreased slightly, which led the TBI increase from Sep.12 to Sep.13 (Tue. to Wed.).

From Sep.14 to 15 (Thu. to Fri.), the increase of the freight rate of coal extended, the freight rate of grain kept the increase trend and the freight rate of mineral ore increased again. The TBI increased continuously and ended at 835.15 points with an increase of 45.27 points (5.73%) from Sep. 8 (the last release day of week 36).

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 661.41 points with an increase of 52.94 points (8.70%) from Sep. 8 (the last release day of Week 36). Imported coal was in great demand and the deal of coal in the Pacific area was active, which made the freight rate increase obviously. For the Panamax market, carriers were in short supply this week and the freight rate of the DBCT to Tianjin route increased over 12% this week. For the Capesize market, the freight rate increased and the freight rate of Hay Point to Qingdao route increased about 3.5% this week.

TBGI increased continuously this week and ended at 680.45 points with an increase of 42.11 points (6.60%) from Sep. 8 (the last release day of week 36). The freight rate of the Panamax increased and cargos in South America and US Gulf provided support for the freight rate. Ship owners had a strong ability to hold the price and the freight rate increased steadily. The freight rate of South America to Tianjin route increased about 5.5% and the freight rate of US Gulf to Tianjin route increased over 7.5%. The increase of the freight rate of West America to Tianjin route was over 7%.

TBMI increased with shocks this week and ended at 1163.58 points with an increase of 40.76 points (3.63%) from Sep.8 (the last release day of week 36). For the iron ore, the market was calm earlier this week. Cargos in Australia increased later in the week and the transport capacity declined under the influence of typhoon, which led the freight rate continue to increase. The freight rate of West Australia to North China route increased over 3.5%. The freight rate of Brazil to Tianjin route increased over 1%. As for nickel ore, the freight rate of the Handysize increased continuously and the freight rate of Surigao to Tianjin route increased about 7% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 37, 2017 (Sep.11-Sep.15), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 37, the TDI stabilized.

The Outward Index stopped falling and stabilized and the TDI increased under the influence of the Inward Index. On Sep.11 (Mon.), the inward index of the three routes continued to be steady and the TDI kept stable. From Sep.12 to 13 (Tue. to Wed.), the freight rate of Shanghai to Tianjin route decreased slightly and the freight rate of Guangzhou to Tianjin route increased. The TDI increased for two successive release days. From Sep.14 to Sep.15 (Thu.to Fri.), the Inward Index stabilized again and the TDI presented a stable trend. The TDI closed at 650.45 points with an increase of 1.12 points (0.17%) from Sep.8 (the last release day of Week 36).

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) remained stable this week. The TDOI closed at 707.51 points on Sep.15 (Fri.), which was the same to that of Sep.8 (the last release day of Week 36). In this week, the outward market was stable and shipping companies took a wait-and-see attitude to the market after the adjustment of the freight rate in last week. The freight indices of three routes kept stable.

TDII Tianjin Domestic Container Inward Freight Index (TDII) continued to increase this week. The TDII closed at 593.39 points on Sep.15 with an increase of 2.25 points (0.38%) from Sep.8 (the last release day of Week 36). The inward indices of three routes continued their trends of last week. The freight rate of Guangzhou-Tianjin continued to increase and the index increased 0.69% on a w-o-w basis. As for the Shanghai-Tianjin route, shipping companies lowered the freight rate to keep the freight space and the freight index decreased 0.39% on a w-o-w basis. The freight rate of Quanzhou-Tianjin route remained stable.

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