Tianjin Shipping Index(Oct.23-Oct.27)

Nov 10, 2017

I. Tianjin Shipping Index (TSI)

Week 43, 2017 (Oct.23-Oct.27), Tianjin Container Freight Index (TCI) increased markedly. Tianjin Bulk Freight Index (TBI) decreased with shocks. Tianjin Domestic Container Freight Index (TDI) increased markedly. Tianjin Shipping Index (TSI) kept the increase trend. The TSI was closed at 622.02 points with an increase of 2.91% from Oct.20 (the last release day of Week 42). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Oct.16 to Oct.27. The value of TSI in Week 43 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

In Week 43, 2017 (Oct.23-Oct.27), the trend of TCI is shown in the chart below:

In Week 43, the TCI decreased slightly and then increased rapidly.

From Oct.23 to Oct.24 (Mon. to Tue.), the freight rates in European route, Mediterranean route, North American route and Persian Gulf route stabilized and decreased slightly. The freight rates in South American West Coast route and Central South American route decreased slightly. The freight rate in South American East Coast route kept stable. The TCI decreased by 0.28% on two consecutive release days. From Oct.25 to Oct.27 (Wed. to Fri.), the freight rates in European route and Mediterranean route increased markedly. The freight rates in North American route decreased slightly. The freight rates in South American West Coast route, Central South American route and Persian Gulf route kept stable. The freight rates in South American East Coast route increased slightly. The TCI increased rapidly by 6.17% on three consecutive release days.

The TCI was closed at 397.95 points with an increase of 22.07 points (5.87%) from Oct.20 (the last release day of Week 42).

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

European/Mediterranean route The freight rates kept decreasing since August. Up to now, the decrease is over thirty percent, which reaches the new low of the year. Pressured by operating cost, the ship owners intended to increase the freight rates. In addition, cargo volume became larger for Christmas is coming, which provides support for the increase of freight rates. The freight rates kept stable in first half of the week. In the middle of the week, shipping alliances carried out the freight-rate-increase plan. The GRI was raised and freight rates rebounded rapidly. The freight indices increased 17.85%, 10.12% and 10.09% respectively on a week-on-week basis.

North American route Cargo volume was stable. The transport capacity maintained a high level. The freight rates stabilized and decreased slightly the whole week. The freight indices in North American West Coast route and in North American East Coast route decreased 0.77% and 2.27% respectively this week.

South American route After nearly half a month of continuous increase, the freight rates presented a weak trend. In South American West Coast route and Central South American route, the ship owners reduced the freight rates to strive for more cargo. The freight indices decreased 4.45% and 2.00% respectively this week. In South American East Coast route, the freight rate was stable. In latter half of the week, the freight rate increased slightly. The freight indices increased 1.24% this week.

Persian Gulf Route Transport demand was not obviously improved. The freight rate decreased over forty percent for the last four months, which hit the bottom and left limited room for the ship owners to reduce the freight rates sharply. Early this week, the freight rates decreased and then kept stable. The freight indices decreased slightly by 1.02% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 43, 2017 (Oct.23-Oct.27), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 43, the TBI first decreased and then increased earlier this week but decreased continuously later.

On Oct.23 (Mon.), the freight rates of coal, grain and mineral ore all continued to decrease, which led to a day-on-day TBI decrease of 0.95%. On Oct.24 (Tue.), the freight rate of the mineral ore increased slightly, which led the TBI to increase. Then, the decrease of the freight rate of coal extended, the freight rate of grain decreased constantly and the freight rate of the mineral ore decreased again. The TBI decreased continuously from Oct.25 to Oct.27 (Wed. to Fri.).

The TBI ended at 870.71 points with a decrease of 19.96 points (2.24%) from Oct. 20 (the last release day of week 42).

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 718.07 points with a decrease of 26.95 points (3.62%) from Oct.20 (the last release day of week 42). Domestic coal price decreased, import demand and shipping demand also decreased. For the Panamax market, the carriers were in sufficient supply in the Pacific region. The freight rate of the DBCT to Tianjin route decreased over 4% this week. The freight rate of the Capesize decreased and the freight rate of Hay Point to Qingdao route decreased about 3%.

TBGI decreased continuously this week. It ended at 691.11 points with a decrease of 13.37 points (1.90%) from Oct.20 (the last release day of week 42). The cargo volume of grain decreased and the Panamax carriers were in over-supply. The freight rates in the Pacific and the Atlantic were low. The freight rate of US Gulf to Tianjin route decreased about 2.5% and the freight rate of South America to Tianjin route decreased about 1.5%. The freight rate of West America to Tianjin route decreased about 1.5%.

TBMI decreased with shocks. It ended at 1202.96 points with a decrease of 19.55 points (1.60%) from Oct.20 (the last release day of week 42). For the iron ore, the iron ore demand decreased because of the production limitation in domestic steel mills. The available Capesize increased and the freight rate decreased as a whole. The freight rate of West Australia to North China route decreased about 2.3%. The freight rate of Brazil to Tianjin route decreased about 1%. As for nickel ore, the freight rate of Surigao to Tianjin route increased slightly earlier this week but decreased later and the total increase was over 0.4%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 43, 2017 (Oct.23-Oct.27), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 43, the TDI increased steadily in the first half of week and then increased rapidly.

On Oct.23 (Mon.), the TDI kept stable. On Oct. 24(Tue.), the Inward Index increased and led the TDI increased slightly. From Oct.25 to Oct.26 (Wed. to Thu.), the Outward Index increased, and the Inward Index decreased and the TDI increased 55.39 points rapidly in two days. On Oct.27 (Fri.), the Outward Index was steady, and the Inward Index increased. Finally, the TDI was closed at 765.79 points with an increase of 64.89 points (9.26%) from Oct.20 (the last release day of Week 42).

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 and was closed at 864.80 points on Oct.27 (Fri.) with an increase of 111.39 points (14.78%) from Oct.20 (the last release day of Week 42). The cargo volume and the slots of three outward routes were steady and the shipping companies increased freight rate to gain profit. The freight rate in Tianjin-Quanzhou route increased the most and the index increased 18.38% and was over 800 points. The freight rate index in Tianjin-Quanzhou route increased 9.24%. The freight rate index in Tianjin-Shanghai route increased 1.62%.

Tianjin Domestic Container Inward Freight Index (TDII) kept the upward trend. The TDII was closed at 666.78 points on Oct.27 with an increase of 18.40 points (2.84%) from Oct.20 (the last release day of Week 42). The trends of three inward route indices were divides. The ship owners increased freight rate in Quanzhou-Tianjin route and the index kept the upward trend and increased 14.44%. The freight rate in Guangzhou-Tianjin route decreased and the index decreased 0.21%. The freight rate in Shanghai-Tianjin route was steady.

Source from : Tianjin Shipping Index

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