Tianjin Shipping Index (Nov.6-Nov.10)

Nov 24, 2017

I. Tianjin Shipping Index (TSI)

Week 45, 2017 (Nov.6-Nov.10), Tianjin Container Freight Index (TCI) decreased overall. Tianjin Bulk Freight Index (TBI) increased and then decreased. Tianjin Domestic Container Freight Index (TDI) increased markedly. Tianjin Shipping Index (TSI) increased sharply. The TSI was closed at 664.08 points with an increase of 5.08% from Nov.3 (the last release day of Week 44). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Oct.30 to Nov.10. The value of TSI in Week 45 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

In Week 45, 2017 (Nov.6-Nov.10), the trend of TCI is shown in the chart below:

In Week 45, the TCI slightly increased early this week and then kept decreasing.

On Nov.6 (Mon.), the freight rates in European route and Persian Gulf route increased. The freight rates in Mediterranean route, North American route, North American West Coast route and Central South American route decreased slightly. The freight rates in South American East Coast route kept stable. The TCI increased by 0.35% on a day on day basis. From Nov.7 to Nov.9 (Tue. to Thu.), the freight rates in European route, Mediterranean route, North American route, South American West Coast route and Central South American route decreased overall. The freight rates in South American East Coast route stabilized and decreased slightly. The freight rate in Persian Gulf route increased and then decreased. The TCI decreased rapidly with a larger range. The decrease was 3.71% on three consecutive release days. On Nov.10 (Fri.), the freight rates in Persian Gulf route kept decreasing and the TCI decreased slightly by 0.07%.

The TCI was closed at 390.99 points with a decrease of 13.95 points (3.44%) from Nov.3 (the last release day of Week 44).

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

European/Mediterranean route Shipping companies carried out the freight-rate-rising plan, which led the freight rates rebounded for almost three percent. Because the freight rates increased too fast, the cargo owners slowed the shipment down and cargo volume presented a declining trend. The freight rates in European route increased early this week and then decreased rapidly. The freight indices decreased 6.67% this week. The freight rates in Mediterranean East route and Mediterranean West route decreased and the freight indices decreased 4.65% and 3.25 respectively on a week on week basis.

North American route With Christmas coming, cargo volume on the market increased steadily, but the increase was not as much compared with the same period of last year. The transport capacity of shipping alliances maintained a high level. This week, it has become a mainstream that the freight rates were reduced for more cargo. The center of freight rate kept decreasing. The freight indices in North American West Coast route and North American East Coast route decreased 3.45% and 4.40% respectively on a week on week basis.

South American route In South American West Coast route and Central South American route, the demand was not obviously improved. The transport overcapacity led to fierce competition between the ship owners. The freight rates decreased markedly this week. The freight indices decreased 6.12% and 5.70% respectively this week. Benefited from ship owners’ reducing the amount of berth, the freight rates in South American East Coast route stabilized and decreased slightly. The freight indices decreased 0.38%.

Persian Gulf Route In first half of the week, the freight rates kept the increase trend of late last week. In latter half of the week, some ship owners decreased the freight rates to guarantee shipping loading rate. Finally, the freight indices decreased slightly by 0.29% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 45, 2017 (Nov.6 – Nov.10), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 45, the TBI increased slowly and decreased in the later part of the week.

From Nov.6 to Nov.7 (Mon. to Tue.), the freight rates of coal and grain moved with narrow shocks and the freight rate of mineral ore increased slightly, which led to a TBI increase of 0.22%. From Nov.8 to Nov.9 (Wed. to Thu.), the freight rate of coal was low, the freight rate of grain decreased and the freight rate of mineral ore increased fast, which led to a TBI increase of 0.56%.

On Nov.10 (Fri.), the freight rates of coal and grain continued to decrease and the freight rate of mineral ore also decreased. The TBI ended at 835.40 points with a decrease of 0.51 points (0.06%) from Nov.3 (the last release day of week 44).

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 644.40 points with a decrease of 32.73 points (4.83%) from Nov.3 (the last release day of week 44). Cargo volume of coal in Australia was small and the freight rate decreased as a whole. For the Panamax market, the deal of coal was not active and carriers were in sufficient supply in the Pacific region. The decrease of the freight rate of the DBCT to Tianjin route extended and the total decrease in this week was about 10.5%. The deal of the Capesize market was active and the freight rate increased obviously. The freight rate of Hay Point to Qingdao route increased over 3%.

TBGI decreased slightly this week. It ended at 671.75 points with a decrease of 7.61 points (1.12%) from Nov.3 (the last release day of week 44). The Panamax market was weak this week and the freight rate of grain continued to decrease. The cargo volume of grain in US Gulf was not as big as expected and the freight rate of US Gulf to Tianjin route decreased over 1%. The cargo volume of grain in South America was small and the freight rate of South America to Tianjin route decreased over 0.8%. By contrast, the decrease of the freight rate in the Pacific region was greater and the freight rate of West America to Tianjin route decreased about 2%.

TBMI increased this week but decreased slightly in the later part of the week. It ended at 1190.06 points with an increase of 38.82 points (3.37%) from Nov.3 (the last release day of week 44). For the iron ore market, the rise of the oil price made the freight rate increase. The oil price decreased later in this week. The deal in the Pacific market was not active and the freight rate decreased.The freight rate of West Australia to North China route increased over 5%. The freight rate of Brazil to Tianjin route increased about 4%. As for nickel ore, the cargo volume decreased because of the rainy season in the Philippines and the freight rate of Surigao to Tianjin route decreased about 5%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 45, 2017 (Nov.06-Nov.10), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 45, the TDI increased significantly.

On Nov.6 (Mon.), both the Inward and Outward Index kept stable and led the TDI remain the same with last weekend. On Nov.7 (Tue.), the Outward Index kept stable and the Inward Index decreased and the TDI decreased slightly. From Nov.8 to Nov.10 (Wed. to Fri.), the Outward and Inward Index increased significantly and led the TDI increased 142.58 points in three days and created the biggest increase range of 9.86%. Finally, the TDI was closed at 981.70 points with an increase of 141.95 points (16.90%) from Nov.3 (the last release day of Week 44).

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 1141.45 points on Nov.10 (Fri.) with an increase of 217.13 points (23.49%) from Nov.3 (the last release day of Week 44). The demand in southward routes increased and pushed the Outward Index increased continuously. The Outward Index created the highest points of the year at the weekend and the freight rate of three routes increased more than 10%. The freight rate in Tianjin-Guangzhou route increased the most and the index increased 27.70%. The index of Tianjin-Quanzhou route increased 13.71%. The index of Tianjin-Shanghai route increased 13.03%.

Tianjin Domestic Container Inward Freight Index (TDII) kept the upward trend. The TDII was closed at 821.84 points on Nov.10 with an increase of 66.76 points (8.84%) from Nov.3 (the last release day of Week 44). The freight rate in Shanghai-Tianjin route decreased and the index decreased 0.54%. The ship owners increased the freight rate and the rate kept rising and the Guangzhou-Tianjin route increased over 13%. The freight rate index of Quanzhou-Tianjin route kept stable.

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