Tianjin Shipping Index(Nov.13-Nov.17)

Nov 24, 2017

I. Tianjin Shipping Index (TSI)

Week 46, 2017 (Nov.13-Nov.17), Tianjin Container Freight Index (TCI) kept decreasing. Tianjin Bulk Freight Index (TBI) decreased rapidly. Tianjin Domestic Container Freight Index (TDI) increased steadily. Tianjin Shipping Index (TSI) decreased with shocks. The TSI closed at 649.54 points with a decrease of 2.19% from Nov.10 (the last release day of Week 45). The TSI trend is as follows,

The chart above shows the trends of TSI from Nov.6 to Nov.11. The value of TSI in Week 46 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 46, 2017 (Nov.13-Nov.17), the trend of TCI is as follows,

In Week 46, the TCI kept decreasing.

From Nov.13 to Nov.16 (Mon. to Thu.), the freight rates in European route, Mediterranean route, North American route, South American West Coast route, Central South American route and Persian Gulf route decreased overall. The freight rates in South American East Coast route increased and then decreased. The TCI kept decreasing by 5.20% on four consecutive release days. On Nov.17 (Fri.), the freight rates in European route, Mediterranean route and Persian Gulf route kept stable. The freight rates in South American West Coast route and Central South American route decreased slightly. The freight rates in South American East Coast route increased slightly. The TCI was stable.

The TCI closed at 370.64 points with a decrease of 20.35 points (5.20%) from Nov.10 (the last release day of Week 45).

The TCI index value saw several up and down on a day-on-day basis are as follows:

European/Mediterranean route With Christmas coming, considering sail schedule, the consignor reduced the cargo volume to avoid the importer to receive the cargo during holidays, which led the freight rates presented a weak trend this week. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased 7.91%, 11.55% and 5.22% this week.

North American route Cargo volume on the market presented a declining trend. Transport capacity maintained a high level. In order to guarantee loading rate, the shipping companies reduced the freight rates to strive for more cargo. The range of decrease is larger than that of last week. The freight indices in North American West Coast route and North American East Coast route decreased 7.85% and 4.52% respectively this week.

South American route In South American West Coast route and Central South American route, the demand for cargo was not strong. The pressure to collect cargo became higher. The freight rates kept decreasing. The freight indices decreased 9.11% and 7.68% respectively this week. In South American East Coast route, some ship owners reduced the supply of berth. The freight rates increased slightly with shocks. The freight indices increased 0.37% this week.

Persian Gulf Route In October, the ship owners carried out freight-rate-rising plan, which led the freight rates increased for almost thirty percent. However, the cargo volume was not obviously increased and it maintained a low level. In November, the freight rates started to decreased again. The ship owners continued to reduce the freight rates for more cargo, the freight indices decreased 8.13% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 46, 2017 (Nov.13–Nov.17), Tianjin Bulk Freight Index (TBI) is as follows:

In week 46, the TBI decreased continuously.

From Nov.13 to Nov.14 (Mon. to Tue.), the freight rate of coal decreased continuously and the freight rates of grain and mineral ore decreased slightly, which led to a TBI decrease of 1.58%. From Nov.15 to Nov.16 (Wed. to Thu.), the freight rates of coal and grain continued to decrease and the freight rate of mineral ore decreased fast, which made the decrease of TBI extend and the total decrease was 3.33%.

On Nov.17 (Fri.), the decrease of the freight rates of coal, grain and mineral ore narrowed and the TBI ended at 793.23 points with a decrease of 42.17 points (5.05%) from Nov.10 (the last release day of week 45).

TBI index value saw several up and down on a day-on-day basis is shown as follows:

TBCI decreased continuously this week. TBCI ended at 583.51 points with a decrease of 60.89 points (9.45%) from Nov.10 (the last release day of week 45). Domestic coal transport demand was low and the freight rate continued to decrease. For the Panamax market, the oversupply of carriers in the Pacific region intensified and the freight rate of the DBCT to Tianjin route decreased about 14%. The freight rate of the Capesize decreased and the freight rate of Hay Point to Qingdao route decreased about 4%.

TBGI decreased slightly this week. It ended at 661.24 points with a decrease of 10.51 points (1.56%) from Nov.10 (the last release day of week 45). It was the grain delivery season in US Gulf, but soybean shipments were significantly weaker than market expectations and the freight rate continued to decrease. The freight rate of US Gulf to Tianjin route decreased 1.70%. The freight rate of South America to Tianjin route decreased 1.30%. 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 decreased slightly earlier this week and the decrease extended significantly later in the week. It ended at 1134.94 points with a decrease of 55.11 points (4.63%) from Nov.10 (the last release day of week 45). For the iron ore market, the production restriction of steel mills affected iron ore demand and the iron ore stock in domestic ports was high, as a result, the freight rate decreased. The freight rate of West Australia to North China route decreased about 6.5%. The chartering by the Brazilian miners was frequent from last weekend to the beginning of this week, which made the freight rate of Brazil to Tianjin route increase earlier this week. But the freight rate decreased under pressure later and the total decrease was about 1%. As for nickel ore, the nickel ore transport in the Philippines entered a slow season and the freight rate of Surigao to Tianjin route decreased over 2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 46, 2017 (Nov.13-Nov.17), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 46, the TDI increased steadily.

On Nov.13 (Mon.), the Inward Index kept increase and the Outward Index increased slightly and led the TDI increased 10.49 points. From Nov.14 to Nov.16 (Tue. to Thu.), the Outward Index kept stable and the Inward Index increased slightly and the TDI increased slightly. On Nov.17 (Fri.), the Inward Index kept stable and the Outward Index increased significantly and led the TDI increased 1.22% in single day. Finally, the TDI closed at 1005.94 points with an increase of 24.24 points (2.47%) from Nov.10 (the last release day of Week 45).

The value of TDI ups and downs on a day-on-day basis are as follows:

Tianjin Domestic Container Outward Freight Index (TDOI) was very strong and closed at 1185.96 points on Nov.17 (Fri.) with an increase of 44.51 points (3.90%) from Nov.10 (the last release day of Week 45). Some ship owners adjusted the ship deployment of southward route and tried to increase freight rate to lower the demand for transportation in Tianjin Port and deploy the ships to the northeast grain production areas. The freight rate in three routes increased in different range. The freight rate index in Tianjin-Quanzhou route increased 4.01%. The freight rate index in Tianjin-Guangzhou route increased 4.05%. The freight rate index in Tianjin-Shanghai route increased 2.63%.

Tianjin Domestic Container Inward Freight Index (TDII) increased steady. The TDII closed at 825.92 points on Nov.17 with an increase of 3.98 points (0.48%) from Nov.10 (the last release day of Week 45). The freight rate in Shanghai/Quanzhou-Tianjin route kept stable and the indices were the same with last week. The freight rate in Guangzhou-Tianjin route increased steadily and the index of Quanzhou-Tianjin route increased 0.71%.

Source from : Shipping Indices

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