Tianjin Shipping Index (Dec.4-Dec.8)

Dec 15, 2017

I. Tianjin Shipping Index (TSI)

Week 49, 2017 (Dec.4-Dec.8), Tianjin Container Freight Index (TCI) kept decreasing. Tianjin Bulk Freight Index (TBI) fluctuated slightly. Tianjin Domestic Container Freight Index (TDI) decreased slightly. Tianjin Shipping Index (TSI) increased slightly and decreased after hitting a high point. The TSI closed at 667.40 points with a decrease of 0.41% from Dec.1 (the last release day of Week 48). The TSI trend is as follows,

The chart above shows the trends of TSI from Nov.27 to Dec.8. The value of TSI in Week 49 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 49, 2017 (Dec.4-Dec.8), the trend of TCI is as follows,

In Week 49, the TCI kept decreasing.

From Dec.4 to Dec.6 (Mon. to Wed.), the freight rates in European route, Mediterranean route, North American route and South American East Coast route kept decreasing. The freight rates in South American West Coast route and Central South American route increased and then decreased. The TCI decreased rapidly by 2.89% on three consecutive release days. From Dec.7 to Dec.8 (Thu. to Fri.), the freight rates in European route stabilized. The freight rates in Mediterranean route increased slightly. The freight rates in North American route, South American route and Persian Gulf route kept the decrease trend. The TCI kept decreasing with a narrower range. The decrease was 0.81% on two consecutive release days.

The TCI closed at 361.47 points with a decrease of 13.82 points (3.68%) from Dec.1 (the last release day of Week 48).

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

European/Mediterranean route Some ship owners carried out the freight-rate-rising plan and tried to raise the freight rates. But for cargo volume was low on the market, few ship owners followed their steps. Early this week, the freight rates decreased under pressure. Late this week, the freight rates in European route stabilized and the freight indices decreased 1.72% on a week on week basis. The freight rates in Mediterranean East route and Mediterranean West route increased. The freight indices decreased 5.60% and 1.13% on a week on week basis.

North American route With Christmas coming, concentrated shipment of factory traders ended. The cargo volume decreased rapidly and freight rates kept decreasing, which exhausted the increase result of last week. The freight indices of North American West Coast route and North American East Coast route decreased 12.56% and 8.47% respectively this week.

South American route In South American West Coast route and Central South American route, the competition for cargo was fierce and pressure for cargo collection became higher. Early this week, the freight rates decreased after hitting a high point. The freight indices decreased 11.61% and 4.57% on a week on week basis. In South American East Coast route, because some ship owners reduced the transport capacity since November, the freight rates increased markedly. The market presented a weak trend this week and the freight rates kept decreasing, the freight indices decreased 4.56% on a week on week basis.

Persian Gulf Route Transport overcapacity existed and cargo volume was not improved. The freight rates kept the decrease trend. The freight indices decreased 9.09% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 49, 2017 (Dec.4 – Dec.8), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 49, the TBI moved with narrow shocks.

From Dec.4 to Dec.5 (Mon. to Tue.), the freight rates of coal, grain and mineral ore all increased slightly, which made the TBI continue to increase and the total increase was 1.46%. Then, the freight rate of coal continued to increase, the freight rate of grain shocked narrowly and the freight rate of mineral ore decreased slowly. The TBI decreased slightly from Dec.6 to Dec.7 (Wed. to Thu.) and the total decrease was 0.38%.

On Dec.8 (Fri.), TBI increased slightly and ended at 896.64 points with an increase of 10.69 points (1.21%) from Dec.1 (the last release day of week 48).

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

TBCI increased continuously this week. TBCI ended at 662.97 points with an increase of 16.62 points (2.57%) from Dec.1 (the last release day of week 48). For the Panamax market, there were many transactions in the Pacific market and the freight rate continued to increase. The freight rate of the DBCT to Tianjin route increased about 4.5%. For the Capesize market, the freight rate of Hay Point to Qingdao route increased 0.6%.

TBGI increased with shocks this week. It ended at 677.52 points with an increase of 5.79 points (0.86%) from Dec.1 (the last release day of week 48). The grain market was calm as a whole and the freight rate increased slightly. The deal of grain in US Gulf was less than last week. The freight rate of US Gulf to Tianjin route increased about 0.8%. By contrast, the freight rate of South America to Tianjin route increased about 0.9%. The freight rate of West America to Tianjin route increased over 1%.

TBMI continued to increase earlier this week but decreased later. It ended at 1349.44 points with an increase of 9.66 points (0.72%) from Dec.1 (the last release day of week 48). For the iron ore market, Australian miners chartered carriers actively in the first half of the week and the freight rate increased further. The market was calm in the middle and later part of the week. The freight rate of West Australia to North China route increased first and then decreased and the total increase was 0.18%. By contrast, carriers were in short supply in South America and the freight rate decreased slightly. The freight rate of Brazil to Tianjin route increased about 4%. As for nickel ore, the freight rate of the Handysize decreased and the freight rate of Surigao to Tianjin route decreased about 1% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 49, 2017 (Dec.4-Dec.8), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 49, the TDI first decreased and then kept stable.

The Outward Index kept stable in this week and the TDI was affected by the trend of the Inward Index. On Dec.4 (Mon.), the freight rate in Guangzhou-Tianjin route decreased and led the TDI decreased 0.63%. On Dec.5 (Tue.), the freight rate in Shanghai/Guangzhou-Tianjin route decreased and the TDI decreased 0.06%. From Dec. 6 to Dec.8 (Wed. to Fri.), the Inward Indices of three routes were stable. Finally, the TDI was closed at 953.84 points with a decrease of 6.65 points (0.69%) from Dec.1 (the last release day of Week 48).

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

Tianjin Domestic Container Outward Freight Index (TDOI) kept stable and was closed at 1095.47 points on Dec.8 (Fri.) which was the same with the Dec.1 (the last release day of Week 48). The freight rate in three southward routes was stable in December after the big increase in November due to the less deal. The three freight rate indices in Tianjin-Guangzhou/Quanzhou/Shanghai were stable with last week.

Tianjin Domestic Container Inward Freight Index (TDII) decreased continuously. The TDII was closed at 812.21 points on Dec.8 with a decrease of 13.13 points (1.61%) from Dec.1 (the last release day of Week 48). The decrease range of the cargo volume and the freight rate was bigger, and the indices of Shanghai/Guangzhou-Tianjin decreased 0.13% and 2.37%. The freight rate and the index in Quanzhou-Tianjin route was stable.

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