Tianjin Shipping Index (Nov.27-Dec.1)

Dec 8, 2017

I. Tianjin Shipping Index (TSI)

Week 48, 2017 (Nov.27-Dec.1), Tianjin Container Freight Index (TCI) increased with shocks. Tianjin Bulk Freight Index (TBI) increased rapidly. Tianjin Domestic Container Freight Index (TDI) continued the decrease trend. Tianjin Shipping Index (TSI) decreased slightly early this week and then increased markedly. The TSI closed at 670.18 points with an increase of 2.28% from Nov.24 (the last release day of Week 47). The TSI trend is as follows,

The chart above shows the trends of TSI from Nov.20 to Dec.1. The value of TSI in Week 48 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 48, 2017 (Nov.27-Dec.1), the trend of TCI is as follows,

In Week 48, the TCI increased with shocks.

On Nov.27 (Mon.), the freight rates in North American route, South American route and Persian Gulf route decreased. The TCI decreased 0.38% on a day on day basis. From Nov.28 to Nov.30 (Tue. to Thu.), the freight rates in European route, North American route, South American East Coast route increased markedly. The freight rates in Mediterranean route increased and then decreased. The freight rates in South American West Coast route and Central South American route decreased and then increased. The freight rates in Persian Gulf route continued the decrease trend. The TCI increased rapidly by 3.76% on three consecutive release days. On Dec.1 (Fri.), the freight rates in North American route and Central South American route continued to increase. The freight rates in South American West Coast route, South American East Coast route and Persian Gulf route decreased slightly. The TCI increased slightly by 0.17% on a day on day basis.

The TCI closed at 375.29 points with an increase of 12.88 points (3.55%) from Nov.24 (the last release day of Week 47).

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

European/Mediterranean route For nearly one month, the freight rates in European route increased for almost three percent. Some shipping alliances carried out the freight-rate-rising plan this week, which led the freight rates increased rapidly. The freight indices increased for 7.89% this week. Some shipping companies of Mediterranean East route and Mediterranean West route increased the freight rates early this week. Then, the freight rates were reduced to guarantee the loading rate. The freight indices increased 3.12% and 0.67% on a week on week basis.

North American route After the mid October, the freight rates kept decreasing and reached the new low of the recent half a year. Rebound space for freight rates exist on the market. In addition, the cargo volume was stable with good momentum. After the brief decrease of freight rates early this week, the ship owners started the freight-rate-rising plan, which led the freight rates increased markedly. The freight indices in North American West Coast route and North American East Coast route increased 10.22% and 13.01% respectively this week.

South American route The pressure for cargo collection became higher. The freight rates decreased with shocks. The freight indices decreased 3.89% on a week on week basis. In South American East Coast route, some ship owners reduced the shipping space. The freight rates increased with fluctuation and the freight indices increased 5.09% on a week on week basis. In central South American route, the freight rates were reduced early to attract more cargo. Then some ship owners raised the freight rates and the freight indices increased 2.54% on a week on week basis.

Persian Gulf Route Some ship owners who mainly do short-range ocean transport marched to Persian Gulf route this week. The transport capacity increased markedly. The freight rates kept decreasing. The freight indices decreased 6.66% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 48, 2017 (Nov.27 –Dec.1), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 48, the TBI increased fast.

On Nov.27 (Mon.), the freight rates of coal and grain decreased slightly and the freight rate of mineral ore increased slightly, which led to a day-on-day TBI decrease of 0.04%. Then, the freight rates of coal and grain increased slightly and the freight rate of mineral ore increased continuously. The TBI increased continuously from Nov.28 to Nov.30 (Tue. to Thu.) and the total increase was 3.76%.

On Dec.1 (Fri.), the freight rate of grain continued to increase and the increase of the freight rate of coal and mineral ore extended. The TBI ended at 885.95 points with an increase of 60.87 points (7.38%) from Dec.1 (the last release day of week 47).

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

TBCI increased significantly this week. TBCI ended at 646.35 points with an increase of 49.47 points (8.29%) from Nov.24 (the last release day of week 47). For the Panamax market, there were many available carriers in the Pacific market earlier this week and the freight rate decreased slightly. The increase of cargo volume of coal raised the freight rate later in the week. The freight rate of the DBCT to Tianjin route increased fast and the total increase was about 12%. For the Capesize market, the freight rate of Hay Point to Qingdao route increased over 4.50%.

TBGI increased this week. It ended at 671.73 points with an increase of 14.99 points (2.28%) from Nov.24 (the last release day of week 47). The deal of grain in US Gulf increased and it made the freight rate of US Gulf to Tianjin route increased over 4%. By contrast, the freight rate of South America to Tianjin route increased 0.50%. The freight rate of West America to Tianjin route increased over 1.5%.

TBMI increased continuously this week and the increase extended significantly later in the week. It ended at 1339.78 points with an increase of 118.15 points (9.67%) from Nov.24 (the last release day of week 47). For the iron ore market, the deal of iron ore in Australia and Brazil were active and the congestion in China ports intensified. The available carriers decreased and the freight rate increased significantly. The freight rate of West Australia to North China route increased over 12%. The freight rate of Brazil to Tianjin route increased over 5.5%. As for nickel ore, market demand of the Handysize increased and the freight rate of Surigao to Tianjin route increased about 2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 48, 2017 (Nov.27-Dec.1), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 48, the TDI continued to decrease.

On Nov.27 (Mon.), the Outward Index kept stable and the Inward Index decreased slightly and led the TDI decreased 0.04%. On Nov.28 (Tue.), both the Inward and Outward Index decreased and led the TDI created the biggest decrease of the week which was 2.35%. From Nov.29 to Nov.30 (Wed. to Thu.), the Outward Index decreased, and the Inward Index kept stable and led the TDI decreased 12.98 points in two days. On Dec.1 (Fri.), the Outward Index was stable, and the Inward Index decreased slightly which led the TDI decreased 0.03%. Finally, the TDI was closed at 960.49 points with a decrease of 37.06 points (3.72%) from Nov.24 (the last release day of Week 46).

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

Tianjin Domestic Container Outward Freight Index (TDOI) decreased significantly and was closed at 1095.47 points on Dec.1 (Fri.) with a decrease of 72.56 points (6.21%) from Nov.24 (the last release day of Week 47). The demand in Tianjin market was still weak and the shipment volume of northeastward routes decreased. The pace of ship deployment got slow and the freight rate of three routes decreased significantly. The decrease of freight rates of Tianjin-Quanzhou/Guangzhou were the most significant which was 9.00% and 6.25% separately. The decrease range of Tianjin-Shanghai route was smaller, and the rate was decreased 1.28%.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly. The TDII was closed at 825.51 points on Nov.24 with a decrease of 1.56 points (0.19%) from Nov.24 (the last release day of Week 47). The demand in northward routes was weak and supply was over demand. Due to the willing that the ship companies wanted to hold the price that increased recently, the decrease rang of freight rate was less. The index of Shanghai/Guangzhou-Tianjin route decreased 0.06% and 0.27% respectively. The freight rate in Quanzhou-Tianjin route was steady and the index kept stable.

Source from : Tianjin Shipping Index

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