Tianjin Shipping Index(Sep.18-Sep.22)

Oct 9, 2017

I. Tianjin Shipping Index (TSI)

Week 38, 2017 (Sep.18-Sep.22), Tianjin Container Freight Index (TCI) kept decreasing. Tianjin Bulk Freight Index (TBI) increased overall. Tianjin Domestic Container Freight Index (TDI) increased markedly. Tianjin Shipping Index (TSI) increased steadily. The TSI closed at 593.05 points with an increase of 2.22% from Sep.15 (the last release day of Week 37). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Sep. 11 to Sep.22. The value of TSI in Week 36 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 38, 2017 (Sep.18-Sep.22), the trend of TCI is shown in the chart below:

In Week 38, the TCI kept decreasing.

From Sep.18 to Sep.20 (Mon. to Wed.), the freight rates in European route, Mediterranean route and Persian Gulf route decreased markedly. The freight rates in North American route stabilized and increased. The freight rates in South American West Coast route increased slightly. The freight rates in South American East Coast route kept decreasing.The freight rates in Central South American route first decreased and then increased. The TCI kept decreasing by 2.23% on three consecutive release days. From Sep.21 to Sep.22 (Thu. to Fri.), the freight rates in European route, Mediterranean route, North American route, South American route and Persian Gulf route decreased overall. The TCI kept the decrease trend with the decrease of 2.17% on two consecutive release days.

The TCI closed at 380.55 points with a decrease of 17.32 points (4.35%) from Sep.15 (the last release day of Week 37).

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

European/Mediterranean route Cargo volume still kept a weak trend and transport capacity was obviously surplus. In order to maintain berth utilization ratio, the ship owners continued to decrease the GRI. The freight rate presented a weak trend during the whole week. The freight indices of European route, Mediterranean East route and Mediterranean West route decreased 5.83%, 6.66% and 2.99% respectively on a week-on-week basis.

North American route Cargo volume increased slightly. In first half of the week, the freight rate stabilized and increased slightly. In later half of the week, some ship owners decreased the freight rate slightly to strive for cargo supply and to increase berth utilization ratio. The freight indices in North American West Coast route and North American East Coast route decreased 0.26% and 1.39% respectively this week.

South American route For two months, the freight rates in South American West Coast route and Central South American route decreased for nearly thirty percent. Pressured by cost, the room for decrease of freight rate was limited. Some ship owners in South American West Coast route tried to raise the GRI up slightly in first half of the week. In later half of the week, the freight rate decreased after hitting a high point. The freight indices did not change compared with that of last week. The freight rate in Central South American route decreased with fluctuation, the freight indices decreased 3.14% on a week-on- week basis. In South American East Coast route, under the high freight solicitation pressure, the freight rate kept decreasing. The freight indices decreased 9.90% on a week-on-week basis.

Persian Gulf Route Although some ship owners reduced the transport capacity by withdrawing vessels. The cargo volume kept a weak trend and so was the freight rate. The freight indices decreased 10.36% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 38, 2017 (Sep.18 - Sep.22), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 38, the TBI continued to increase.

On Sep.18 (Mon.), the freight rates of coal, grain and mineral ore all increased, which led to a day-on-day TBI increase of 0.71%. Then, the freight rates of coal and grain continued to increase and the freight rate of mineral ore decreased slightly, which led the TBI to decrease on Sep.19 (Tue.). From Sep.20 to Sep.22 (Wed. to Fri.), the freight rate of coal increased, the freight rate of grain decreased and that of mineral ore increased again, which led the TBI to increase to the new peak during the year.

The TBI ended at 861.95 points with an increase of 26.80 points (3.21%) from Sep. 15 (the last release day of week 37).

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

TBCI increased as a whole this week. TBCI ended at 710.49 points with an increase of 49.08 points (7.42%) from Sep.15 (the last release day of Week 37). The deal of coal was not active and the Panamax market capacity increased. The freight rate of the DBCT to Tianjin route increased over 6% this week, which was lower than the increase of last week. The freight rate of the Capesize increased, which led the freight rate of Hay Point to Qingdao route increased over 9%.

TBGI first increased and then decreased this week. It ended at 681.64 points with an increase of 1.19 points (0.17%) from Sep.15 (the last release day of week 37). The freight rate of the Panamax increased this week, but the increase slowed in the first part of the week and the freight rate decreased later in the week because of the continuous increase of the freight rate of grain since August. Cargos in US Gulf and West America were stable, the freight rate of US Gulf to Tianjin route increased about 0.4% and the increase of the freight rate of West America to Tianjin route was over 1%. Shipments of grain in South America slowed and the freight rate of South America to Tianjin route decreased over 0.3%.

TBMI increased with shocks this week and ended at 1193.72 points with an increase of 30.14 points (2.59%) from Sep.15 (the last release day of week 37). For the iron ore, the shipments of Australian and Brazilian miners concentrated before the National Day, which led the freight rate to continue to increase. The freight rate of West Australia to North China route increased about 1% and the freight rate of Brazil to Tianjin route increased about 8%. As for nickel ore, the freight rate of the Handysize continued to increase because of the increase demand for coal transport. The freight rate of Surigao to Tianjin route increased about 7% this week. But as the rainy season approaches, future nickel ore shipments may be affected.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 38, 2017 (Sep.18-Sep.22), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 38, the TDI increased significantly.

From Sep.18 to Sep.19 (Mon. to Tue.), the Outward Index kept stable and the Inward Index increased, which led the TDI to increase. From Sep.20 to Sep.21 (Wed. to Thu.), the Outward Index increased significantly and the Inward Index increased slightly, which led the TDI increased rapidly and created the biggest increase of 3.69% in this week on Sep.20 and the TDI increased 4.72% in two days. On Sep.22 (Fri.) the Outward Index kept stable and the Inward Index increased slightly, this led the TDI to increase 0.06%. Finally, the TDI closed at 687.93 points with an increase of 37.48 points (5.76%) from Sep.15 (the last release day of Week 37).

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

Tianjin Domestic Container Outward Freight Index (TDOI) increased significantly this week. The TDOI closed at 764.58 points on Sep.22 (Fri.) with an increase of 57.07 points (8.07%) from Sep.15 (the last release day of Week 37). In this week, the outward market was good. The cargo volume in Tianjin-Quanzhou/Guangzhou route increased and the shippers increased the delivery speed due to the enforcement of environment protection policy. The shipping companies increased the freight rate and the freight rate index increased 7.91% and 9.01% respectively. But the market participant predicted that the market would not be as good as last year and the freight rate might return to weak trend after the holiday. The market of Tianjin-Shanghai route was stable and the freight rate was stable.

Tianjin Domestic Container Inward Freight Index (TDII) kept increasing. The TDII closed at 611.28 points on Sep.22 with an increase of 17.89 points (3.01%) from Sep.15 (the last release day of Week 37). The freight rate of Guangzhou-Tianjin route increased due to the cost pressure of ship owners and the trend was strong and the route index closed at 559.81 points which increased 4.71% on a w-o-w basis. The freight rate of Shanghai-Tianjin route kept weak trend and the index decreased 0.26%. The freight rate of Quanzhou-Tianjin was stable.

Source from : Tianjin Shipping Index

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