Tianjin Shipping Index (Oct.9-Oct.13)

Oct 31, 2017

I. Tianjin Shipping Index (TSI)

Week 41, 2017 (Oct.9-Oct.13), Tianjin Container Freight Index (TCI) started to increase after decreasing. Tianjin Bulk Freight Index (TBI) increased with shocks. Tianjin Domestic Container Freight Index (TDI) decreased markedly. Tianjin Shipping Index (TSI) shocked in a narrow range. The TSI was closed at 582.33 points with an increase of 1.16% from Sep.29 (the last release day of Week 39). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Sep. 25 to Oct.13. The value of TSI in Week 41 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

In Week 41, 2017 (Oct.9-Oct.13), the trend of TCI is shown in the chart below:

In Week 41, the TCI stabilized and increased.

From Oct.9 to Oct.10 (Mon. to Tue.), the freight rates in European route, Mediterranean route and India-Pakistan route stabilized. The freight rates in North American route decreased. The freight rates in South American route increased slightly. The TCI stabilized and decreased slightly by 0.08% on two consecutive release days. From Oct.11 to Oct.13 (Wed. to Fri.), the freight rates in European route, Mediterranean route and North American route presented a weak trend. The freight rates in South American route increased rapidly. The freight rates in India-Pakistan route increased and then decreased. The TCI increased slightly by 1.27% on three consecutive release days.

The TCI was closed at 368.73 points with an increase of 4.34 points (1.19%) from Sep.30 (the last release day of Week 39).

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

European/Mediterranean route After long holiday, the freight rates stabilized early this week. The cargo volume was not improved obviously. The ship owners reduced the freight rates slightly to maintain berth utilization ratio. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased 2.43%, 3.50% and 1.10% respectively on a week-on-week basis.

North American route Cargo volume decreased after the holiday. The ship owners reduced the freight rates to maintain their respective share. The freight rates continued the decrease trend. The freight indices in North American West Coast route and North American East Coast route decreased 3.40% and 1.88% respectively this week.

South American route Since August, freight rates decreased over forty percent with shocks. There exists strong possibility that the freight rates may rebound. This week, the ship owners carried out the freight-rate-rise plan. They kept raising the GRI and the freight rates increased rapidly. The freight indices in South American West Coast route, South American East Coast route and Central South American route increased 11.08%, 19.50% and 7.68% respectively this week.

India-Pakistan route After the problem of strike by workers of India Dock and drivers of Pakistan was solved, market supply and demand became a key factor that influence the trend of freight rates. Because the low cargo volume and the oversupply of transport capacity, the freight rates have decreased over sixty percent compared with the high point when there was a strike. This week, the ship owners tried to raise the freight rates and it started to increase. But on weekends, the freight rates decreased. The freight indices increased 11.00% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 41, 2017 (Oct.9 - Oct.13), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 41, the TBI increased with shocks.

On Oct.9 (Mon.), the freight rates of coal and grain increased slightly compared with that before the National Day and the freight rate of mineral ore increased obviously compared with that before the National Day, which led to a day-on-day TBI increase of 2.43%. Then, the freight rates of coal and grain continued to increase but the freight rate of mineral ore decreased, which made the TBI moved with narrow shocks from Oct.10 to Oct.11 (Tue. to Wed.).

From Oct.12 to Oct.13 (Thu. to Fri.), the freight rates of coal, grain and mineral ore increased as a whole. The TBI increased continuously and ended at 853.28 points with an increase of 32.77 points (3.99%) from Sep. 29 (the last release day of week 39).

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

TBCI increased continuously this week. TBCI ended at 687.66 points with an increase of 30.11 points (4.58%) from Sep.29 (the last release day of week 39). The amount of coal transportation increased, which led the freight rate to increase. For the Panamax market, coal transport demand in the Pacific region increased and the freight rate increased as a whole. The freight rate of the DBCT to Tianjin route increased over 5.5% this week. The freight rate of the Capesize increased with shocks and the freight rate of Hay Point to Qingdao route increased over 3%.

TBGI increased continuously this week. It ended at 695.08 points with an increase of 27.71 points (4.15%) from Sep.29 (the last release day of week 39). The deal of grain was active this week and the freight rate of the Panamax increased. The freight rate of US Gulf to Tianjin route increased about 3% and the freight rate of South America to Tianjin route increased over 4.5%. The freight rate increased more obviously in the Pacific area and the freight rate of West America to Tianjin route increased about 7.5%.

TBMI increased obviously earlier this week and then decreased with narrow shocks. It ended at 1177.11 points with an increase of 40.51 points (3.56%) from Sep.29 (the last release day of week 39). For the iron ore, Australian miners chartered many carriers during the National Day, which made the Capesize market active. The freight rate of West Australia to North China route increased about 5.5%. By contrast, distance transaction of ore became weak this week, the freight rate of Brazil to Tianjin route decreased in the mid-week and the total increase was about 1%. As for nickel ore, market cargo volume decreased and the freight rate of Surigao to Tianjin route decreased about 0.6% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 41, 2017 (Oct.9-Oct.13), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 41, the TDI decreased.

From Oct.9 to Oct.11 (Mon. to Wed.), the Inward Index kept stable and Outward Index decreased which led the downward trend of TDI and the TDI decreased 0.90% in three days. On Oct.12 (Thu.), the freight rate in Tianjin-Guangzhou route decreased significantly and led the Inward Index decreased and the TDI decreased 3.22%. On Oct. 13 (Fri.), the Outward Index kept stable and the Inward Index recovered which led the TDI increased 0.11%. Finally, the TDI was closed at 672.96 points with a decrease of 27.97 points (3.99%) from Sep.30 (the last release day of Week 39).

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 in this week. The TDOI was closed at 738.94 points on Oct.13 (Fri.) with a decrease of 40.51 points (5.20%) from Sep.30 (the last release day of Week 389). With the coming of weak season, the shipments volume decreased and the freight rate in Tianjin-Guangzhou route decreased sharply and the index decreased 8.01% in this week. In Tianjin-Shanghai route, the freight rate increased rapidly due to some ship companies cut the supply of ships and the slots was short and the index increased 6.07%. The freight rate in Tianjin-Quanzhou route was stable.

Tianjin Domestic Container Inward Freight Index (TDII) decreased continuously. The TDII was closed at 606.98 points on Oct.13 with a decrease of 15.43 points (2.48%) from Sep.30 (the last release day of Week 39). With the end of National Holiday, the freight rate in northward route begun to decrease. The freight rate of Guangzhou-Tianjin route decreased the most and the index decreased 20.79 points (3.62%) from Sep.30. The freight rate index of Shanghai-Tianjin route decreased 0.47%. The freight rate of Quanzhou-Tianjin was stable.

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