Tianjin Shipping Index (Sep.25-Sep.30)

Oct 31, 2017

I. Tianjin Shipping Index (TSI)

Week 39, 2017 (Sep.25-Sep.30), Tianjin Container Freight Index (TCI) kept decreasing. Tianjin Bulk Freight Index (TBI) decreased. Tianjin Domestic Container Freight Index (TDI) increased steadily. Tianjin Shipping Index (TSI) presented a weak trend. The TSI was closed at 575.63 points with a decrease of 2.94% from Sep.22 (the last release day of Week 38). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Sep. 18 to Sep.29. The value of TSI in Week 39 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

It was during National Day holiday in Week 39, 2017 (Sep.29-Sep.30), the TCI released six times. The trend of TCI is shown in the chart below:

In Week 39, the TCI kept decreasing.

From Sep.25 to Sep.28 ( Mon. To Thur.), the freight rates in European route, Mediterranean route, North American East Coast route, South American route and Persian Gulf route decreased overall. The freight rates in North American West Coast route increased and then decreased. The TCI kept decreasing by 3.59% on four consecutive release days. From Sep.29 to Sep.30 (Fri. to Sat.), the freight rates in European route and Mediterranean route decreased slightly. The freight rates in North American route, South American route and Persian Gulf route were stable. The TCI kept decreasing by a small margin. The decrease was 0.68% on two consecutive release days.

The TCI closed at 364.39 points with a decrease of 16.16 points (4.25%) from Sep.22 (the last release day of Week 38).

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

European/Mediterranean route It was the last week before National Day Holiday, cargo volume presented a weak trend and was not as large as those of the former years. Ship owners reduced the freight rate to reserve supply of cargo for holidays. The freight rates presented a weak trend the whole week. The freight rates in European route, Mediterranean East route and Mediterranean West route decreased 5.15%, 11.32% and 7.56% respectively on a week-on-week basis.

North American route Cargo volume failed to meet expectations. In first half of the week, the freight rate in North American West Coast route increased and then decreased. The freight rate in North American East Coast route kept the decrease trend of last week. Then, some ship owners stopped operating before National Day Holidays. A supply-demand balance was achieved on the market and the freight rate stopped decreasing and stabilized. The freight indices in North American West Coast route and North American East Coast route decreased 0.86% and 4.71% respectively this week.

South American route Although many ship owners decreased transport capacity by reducing sequence of voyages, the cargo volume was still not obviously improved. The center of freight rate kept decreasing and the current freight rate hovered around bottom. In later half of the week, pressured by cost, the decrease of freight rate slowed down. The freight indices in South American West Coast route, South American East Coast route and Central South American route decreased 5.29%, 4.22% and 4.38% respectively this week.

Persian Gulf Route The market was not in a good condition and low density cargo was still in short. The ship owners were under high pressure to collect cargo. The freight indices decreased 3.64% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 39, 2017 (Sep.25 - Sep.29), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 39, the TBI decreased continuously.

From Sep.25 to Sep.27 (Mon. to Wed.), the freight rates of coal, grain and mineral ore all decreased, which led the TBI to decrease for three release days. The day-on-day decrease extended gradually and the total decrease was 2.32%. Then, the freight rates of coal and grain continued to decrease and the decrease of the freight rate of mineral ore extended obviously, which led to a day-on-day TBI decrease of 1.91% on Sep.28 (Thu.).

On Sep.29 (Fri.), TBI decreased and ended at 820.51 points with a decrease of 41.44 points (4.81%) from Sep. 22 (the last release day of week 38).

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

TBCI decreased continuously this week. TBCI ended at 657.55 points with a decrease of 52.94 points (7.45%) from Sep.22 (the last release day of week 38). Domestic coal demand decreased, the trading volume of coal in Australia was small and the freight rate decreased continuously. The Panamax carriers were in sufficient supply and the freight rate of the DBCT to Tianjin route decreased over 10% this week. The freight rate of the Capesize also decreased and the freight rate of Hay Point to Qingdao route decreased about 3%.

TBGI decreased this week. It ended at 667.37 points with a decrease of 14.27 points (2.09%) from Sep.22 (the last release day of week 38). The Panamax market was not active as a whole. America's new soybean shipments began and the deal were still not active. The freight rate of US Gulf to Tianjin route decreased about 2% and the freight rate of West America to Tianjin route decreased about 1.8%. The shipments of grain in South America decreased and the freight rate of South America to Tianjin route decreased over 2.2%.

TBMI decreased slightly earlier this week and the decrease extended later. It ended at 1136.60 points with a decrease of 57.12 points (4.79%) from Sep.22 (the last release day of week 38). For the iron ore, predictable market demand for China iron ore decreased because of winter production limitation. International ore price decreased continuously, the market was quiet before the National Day and the Capesize’s deal was weak. The freight rate of West Australia to North China route decreased about 6.5%. The freight rate of Brazil to Tianjin route kept increasing earlier this week but decreased later and the total decrease was over 1.7%. As for nickel ore, market cargo volume decreased and the freight rate of Surigao to Tianjin route decreased over 2.3% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 39, 2017 (Sep.25-Sep.30), the Tianjin Domestic Container Freight Index (TDI) broadcasted six times due to the National Days and Moon Festival, and the trend is shown in the chart below:

In Week 39, the TDI increased steadily.

On Sep.25 (Mon.), both the Inward and Outward Index kept stable and the TDI kept stable. On Sep.26 (Tue.), the freight rate in Shanghai-Tianjin route increased slightly and the freight rate in Guangzhou-Tianjin route increased and the TDI increased 0.73%. On Sep.27 (Wed.) both the Inward and Outward Index kept stable and the TDI kept stable. On Sep.28 (Thu.), the freight rate in Guangzhou-Tianjin route kept increase and TDI increased slightly. On Sep. 29 (Fri.), the TDI kept stable. On Sep.30 (Sat.), the Outward Index increased and led TDI increased 1.07% and the TDI was over 700 points. Finally, the TDI was closed at 700.93 points with an increase of 13.00 points (1.89%) from Sep.22 (the last release day of Week 38).

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

Tianjin Domestic Container Outward Freight Index (TDOI) was steady in this week. The TDOI was closed at 779.45 points on Sep.30 (Sat.) with an increase of 14.87 points (1.94%) from Sep.22 (the last release day of Week 38). In this week, the outward market was steady. The shipping companies increased the freight rate and the freight rate index in Tianjin-Shanghai/Guangzhou route increased 19.32% and 0.47% respectively. The freight rate in Tianjin-Quanzhou route was stable.

Tianjin Domestic Container Inward Freight Index (TDII) increased steadily. The TDII was closed at 622.41 points on Sep.30 with an increase of 11.13 points (1.82%) from Sep.22 (the last release day of Week 38). The shipments of cargo owners were concentrated before the National Holiday and the freight rate of Guangzhou-Tianjin route kept the strong trend and the index increased 15.17 points (2.71%) on a w-o-w basis. The freight rate of Shanghai-Tianjin route increased and the index increased 0.20%. The freight rate of Quanzhou-Tianjin was stable.

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