Tianjin Shipping Index(Oct.30-Nov.3)

Nov 10, 2017

I. Tianjin Shipping Index (TSI)

Week 44, 2017 (Oct.30-Nov.3), Tianjin Container Freight Index (TCI) decreased after increasing. Tianjin Bulk Freight Index (TBI) kept decreasing. Tianjin Domestic Container Freight Index (TDI) increased markedly. Tianjin Shipping Index (TSI) increased and then decreased. The TSI was closed at 631.98 points with an increase of 1.60% from Oct.27 (the last release day of Week 43). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Oct.23 to Nov.3. The value of TSI in Week 44 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

In Week 44, 2017 (Oct.30-Nov.3), the trend of TCI is shown in the chart below:

In Week 44, the TCI increased and then decreased.

From Oct.30 to Nov.1 (Mon. to Wed.), the freight rates in European route and Mediterranean East route increased rapidly. The freight rates in Mediterranean West route increased slightly with shocks. The freight rates in North American route, South American West Coast route and Central South American route decreased after hitting a high point. The TCI kept the increase trend of last week with the increase of 3.26% on three consecutive release days. From Nov.2 to Nov.3 (Thu. to Fri.), the freight rates in European route, Mediterranean route, South American West Coast route, Central South American route and Persian Gulf route decreased overall. The freight rates in North American route increased slightly. The freight rates in South American East Coast route continued to increase. The TCI increased and then decreased. The decrease was 1.46% on two consecutive release days.

The TCI was closed at 404.94 points with an increase of 6.99 points (1.76%) from Oct.27 (the last release day of Week 43).

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

European/Mediterranean route After the freight rates hit a new low last week, some shipping alliances carried out the freight-rate-rise plan. This week, other ship owners followed up and raised the freight rates. Therefore, the freight rates increased too fast and the cargo owners slowed the shipment down, which led to the decrease of cargo volume. In latter half of the week, the freight rates decreased under pressure. The freight rates in European route increased markedly and the freight indices increased 6.54% on a week on week basis. In Mediterranean East route and Mediterranean West route, the pressure to collect cargo became higher. The decrease of freight rates was big. The freight indices decreased 0.94% and 3.87% on a week on week basis.

North American route In first half of the week, some ship owners tried to raise the GRI and the freight rates increased slightly. But for the consensus to increase the freight rates was not reached, the freight rates decreased then. As Christmas coming, the demand became larger and the cargo volume increased steadily. In latter half of the week, the freight rates were slightly decreased. At last, the freight rates in North American West Coast route enjoyed a higher momentum of increase and the freight indices increased 2.54%. In North American East Coast route, the freight rates decreased sharply by 1.40% this week.

South American route In South American West Coast route, the competition for cargo was fierce and the freight rates kept decreasing after hitting a high point in first half of the week. The freight indices decreased 4.35% on a week on week basis. In South American East Coast route, the freight rates were in a low level. Some ship owners reduced the berth ratio and the freight rates kept strong for the whole week. The freight indices increased 5.66% on a week on week basis. In Central South American route, the freight rates increased in first half of the week and decreased slightly in latter half of the week. The freight indices increased 0.25% on a week on week basis.

Persian Gulf Route In first half of the week, the freight rates kept increasing. Some shipping companies decreased the freight rates to guarantee the ship loading rate. The freight indices increased 1.94 on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 44, 2017 (Oct.30–Nov.3), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 44, the TBI decreased continuously.

On Oct.30 (Mon.), the freight rate of coal decreased obviously and the freight rates of grain and mineral ore were low, which led to a day-on-day TBI decrease of 0.70%. On Oct.31 (Tue.), the freight rates of coal, grain and mineral ore all decreased and the TBI decreased slightly. Then, the decrease of the freight rates of coal and mineral ore extended and the freight rate of grain decreased continuously. The TBI decreased continuously from Nov.1 to Nov.3 (Wed. to Fri.) and the day-on-day decrease extended.

The TBI ended at 835.91 points with a decrease of 34.80 points (4.00%) from Oct. 27 (the last release day of week 43).

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 677.13 points with a decrease of 40.94 points (5.70%) from Oct.27 (the last release day of week 43). Domestic coal price decreased, cargo volume of coal in Australia was small and the freight rate decreased as a whole. For the Panamax market, the carriers were in sufficient supply in the Pacific region and the oversupply situation intensified. The freight rate of the DBCT to Tianjin route decreased over 8% this week. The freight rate of the Capesize decreased with shocks and the freight rate of Hay Point to Qingdao route decreased over 1.5%.

TBGI decreased slightly this week. It ended at 679.36 points with a decrease of 11.75 points (1.70%) from Oct.27 (the last release day of week 43). The Panamax carriers were in over-supply and the freight rate of grain decreased. There was more shipment of grain in US Gulf and the freight rate of US Gulf to Tianjin route decreased about 1.5%. By contrast, the deal in West America slowed and the freight rate of West America to Tianjin route decreased over 2% and the freight rate of South America to Tianjin route decreased over 1.5%.

TBMI decreased slightly earlier this week and the decrease extended later. It ended at 1151.24 points with a decrease of 51.72 points (4.30%) from Oct.27 (the last release day of week 43). Steel market entered the off-season and the iron ore demand decreased. The available Capesize increased and the freight rate continued to decrease. The freight rate of West Australia to North China route decreased about 6%. The freight rate of Brazil to Tianjin route decreased over 0.5%. As for nickel ore, the cargo volume decreased and the freight rate of Surigao to Tianjin route decreased about 2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 44, 2017 (Oct.30-Nov.3), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 44, the TDI increased continuously.

On Oct.30 (Mon.), both the Inward and Outward Index increased and led the TDI increased 23.10 points in single day. From Oct.31 to Nov.2 (Tue. to Thu.), the Outward Index kept stable and the Inward Index kept rising and led the TDI increased and created the biggest single day increase of 4.45%. On Nov.3 (Fri.), the Outward Index was steady, and the Inward Index increased again. Finally, the TDI was closed at 839.75 points with an increase of 73.96 points (9.66%) from Oct.27 (the last release day of Week 43).

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 very strong and was closed at 924.32 points on Nov.3 (Fri.) with an increase of 59.52 points (6.88%) from Oct.27 (the last release day of Week 43). The three outward routes kept the upward trends and the increase of Tianjin-Shanghai route was the most significant. Due to the shortage of slots, some ship owners increased the freight rate to keep the balance of supply and demand and the index closed at 1290.13 points (26.53%). The freight rate of Tianjin-Quanzhou/Guangzhou route increased steady and increased 4.43% and 4.94% separately.

Tianjin Domestic Container Inward Freight Index (TDII) increased dramatically. The TDII was closed at 755.18 points on Nov.3 with an increase of 88.44 points (13.26%) from Oct.27 (the last release day of Week 43). The freight rate in Shanghai-Tianjin route decreased and the index decreased 0.26%. The ship owners increased the freight rate and the rate kept rising and the Guangzhou-Tianjin route increased the most (19.25%). The freight rate index of Quanzhou-Tianjin route increased 5.61%.

Source from : Tianjin Shipping Index

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