Tianjin Shipping Index (Oct.16-Oct.20)

Oct 31, 2017

I. Tianjin Shipping Index (TSI)

Week 42, 2017 (Oct.16-Oct.20), Tianjin Container Freight Index (TCI) increased in the first half of the week and then fluctuated slightly. Tianjin Bulk Freight Index (TBI) increased and then decreased. Tianjin Domestic Container Freight Index (TDI) increased markedly at the end of the week. Tianjin Shipping Index (TSI) kept increasing. The TSI was closed at 604.44 points with an increase of 3.80% from Oct.13 (the last release day of Week 41). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Oct.9 to Oct.20. The value of TSI in Week 42 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

In Week 42, 2017 (Oct.16-Oct.20), the trend of TCI is shown in the chart below:

In Week 42, the TCI increased early this week and then fluctuated slightly.

From Oct.16 to Oct.17 (Mon. to Tue.), the freight rates in European route and Mediterranean route increased and then decreased. The freight rates in North American route, South American route and Persian Gulf route increased overall. The TCI continued the increase trend in latter half of last week. On two consecutive release days, the increase was 2.01%.From Oct.18 to Oct.20 (Wed. to Fri.), the freight rates in European route and Mediterranean route stabilized. The freight rates in North American route stabilized and decreased slightly. The freight rates in South American West Coast route and Central South American route decreased. The freight rates in South American East Coast route and Persian Gulf route increased with shocks. The TCI fluctuated slightly by 0.07% on three consecutive release days.

The TCI was closed at 375.88 points with an increase of 7.15 points (1.94%) from Oct.13 (the last release day of Week 41).

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

European/Mediterranean route Early this week, some ship owners tried to raise the freight rates. But because the consensus of raising it was not reached, the freight rates decreased after hitting a high point. In latter half of the week, the supply and demand was balanced and the freight rates were stable. The freight rates in European route and Mediterranean East route enjoyed a good momentum of increase. The freight indices increased 1.15% and 1.24% respectively on a week-on-week basis. The freight indices in Mediterranean West route decreased 1.24% on a week-on-week basis.

North American route As Christmas approaches, the cargo volume on the market is expected to increase generally. Early this week, some ship companies raise the freight rate. In latter half of the week, the frequency of voyage became higher and transport capacity became larger. The freight rates stabilized and decreased slightly. The freight indices in in North American West Coast route and in North American East Coast route increased 5.62% and 4.16% respectively this week.

South American route Last week, some ship companies carried out the freight-rate-rise plan. Early this week, other ship owners followed their steps and raised the GRI. The freight rates kept increasing. In South American West Coast route and Central South American route, the freight rates were reduced to maintain berth utilization ratio. The freight rates decreased. The freight indices in South American West Coast route decreased 1.99% this week. The freight indices in Central South American route increased 2.64%. The freight rates in South American East Coast route continued the increase trend of the first half of the week. The freight indices increased 7.53% on a week on week basis.

Persian Gulf Route Cargo volume presented a weak trend. Some shipping alliances kept reducing the transport capacity. Since July, the freight rates in Persian Gulf route decreased for over forty percent. There exists strong possibility that the freight rates may rebound. This week, the ship owners raise the GRI up. The freight rates increased with shocks. The freight indices increased 5.45% this week.

III. Tianjin Bulk Freight Index (TBI)

Week 42, 2017 (Oct.16 - Oct.20), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 42, the TBI increased fast in the early and middle period of the week but decreased on the weekend.

From Oct.16 to Oct.19 (Mon. to Thu.), the freight rates of coal, grain and mineral ore increased continuously and the total increase was 5.20%. The increase on Oct.17 was the most and the day-on-day TBI increase was 3.35%. On Oct.20 (Fri.), the freight rates of coal, grain and mineral ore all decreased, which led the TBI to decrease 0.78%.

The TBI ended at 890.67 points with an increase of 37.39 points (4.38%) from Oct. 13 (the last release day of week 41).

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

TBCI increased this week. TBCI ended at 745.02 points with an increase of 57.36 points (8.34%) from Oct.13 (the last release day of week 41). For the Panamax market, coal transport demand in the Pacific region kept increasing and the freight rate increased constantly. The freight rate of the DBCT to Tianjin route increased 10.09% this week. For the Capesize market, the deal was also good and the freight rate kept increasing. The freight rate of Hay Point to Qingdao route increased 5.72%.

TBGI increased in the first half of the week but decreased on the weekend. It ended at 704.48 points with an increase of 9.40 points (1.35%) from Oct.13 (the last release day of week 41). Market demand for grain continued to increase this week and the freight rate of the Panamax increased. The freight rate decreased slightly on the weekend because it increased too fast earlier this week. The freight rate of US Gulf to Tianjin route increased 1.64% and the freight rate of South America to Tianjin route increased 0.63%. The freight rate of West America to Tianjin route increased 2.74%.

TBMI increased obviously earlier this week and then decreased slightly on the weekend. It ended at 1222.511 points with an increase of 45.40 points (3.86%) from Oct.13 (the last release day of week 41). For the iron ore, the market was active in the Pacific region. The freight rate increased fast and then decreased slightly. The freight rate of West Australia to North China route increased 5.89%. Cargo volume in the Atlantic market decreased and the freight rate decreased in the first half of the week. The freight rate increased later in the week because the forward freight of the Capesize increased and the available carriers were in short supply. The freight rate of Brazil to Tianjin route decreased 1.62%. As for nickel ore, cargo volume of the Handysize market increased and the freight rate of Surigao to Tianjin route increased 2.68% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 42, 2017 (Oct.16-Oct.20), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 42, the TDI shocked in narrow range in the first half of week and then increased rapidly.

From Oct.16 to Oct.19 (Mon. to Thu.), the Inward Index kept stable and the TDI increased slightly and shock with the influence of the Outward Index. The TDI increased 0.34% in four days. On Oct.20 (Fri.), the Inward and Outward Index increased and led the TDI increased rapidly and created the biggest increase of 3.80%. Finally, the TDI was closed at 700.90 points with an increase of 27.94 points (4.15%) from Oct.13 (the last release day of Week 41).

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 at the end of this week. The TDOI was closed at 753.41 points on Oct.20 (Fri.) with an increase of 14.47 points (1.96%) from Oct.13 (the last release day of Week 41). The outward routes market was steady and good. The freight rate in Tianjin-Quanzhou route increased after one month steady and the index increased 5.71%. The freight rate in Tianjin-Guangzhou route kept the increase trend but the increase range narrowed and the index increased 1.24%. The freight rate in Tianjin-Shanghai route kept stable.

Tianjin Domestic Container Inward Freight Index (TDII) shocked in narrow range and then increased rapidly. The TDII was closed at 648.38 points on Oct.13 with an increase of 41.40 points (6.82%) from Oct.13 (the last release day of Week 41). The three inward route indices increased, and the index of Quanzhou-Tianjin route increased the most. Due to the freight rate in this route kept at low level for a long time and some ship owners increased the freight rate sharply to keep the profit. And the index increased 20.96% on a w-o-w basis. The freight rate in Guangzhou-Tianjin route increased and the index increased 4.47%. The freight rate in Shanghai-Tianjin route was steady and increased slightly and the index increased 0.41%.

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