Tianjin Shipping Index (Dec.18-Dec.22)

Jan 8, 2018

I. Tianjin Shipping Index (TSI)

Week 51, 2017 (Dec.18-Dec.22), Tianjin Container Freight Index (TCI) increased slightly with fluctuation. Tianjin Bulk Freight Index (TBI) decreased rapidly. Tianjin Domestic Container Freight Index (TDI) decreased early this week and stabilized. Tianjin Shipping Index (TSI) kept decreasing. The TSI closed at 659.82 points with a decrease 3.66% from Dec.15 (the last release day of Week 50). The TSI trend is as follows,

The chart above shows the trends of TSI from Dec.11 to Dec.22. The value of TSI in Week 51 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 51, 2017 (Dec.18-Dec.22), the trend of TCI is as follows,

In Week 51, the TCI decreased slightly and rebounded in later half of the week.

From Dec.18 to Dec.21 (Mon. to Thu.), the freight rates in European route, Mediterranean East route and India-Pakistan route decreased early this week and then stabilized. The freight rates in Mediterranean West route, North American East route and South American route increased and then decreased. The freight rates in North American West Coast route decreased slightly. The center of TCI decreased slowly by 0.57% on four consecutive release days. The freight rates in European route, Mediterranean East route and North American East Coast route increased. The freight rates in India-Pakistan route decreased. The TCI ceased to decrease and increased 0.71% on a day on day basis.

The TCI closed at 368.22 points with an increase of 0.50 points (0.14%) from Dec.15 (the last release day of Week 50).

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

European/Mediterranean route The freight rates in European route and Mediterranean East route decreased early this week and then stabilized. Late this week, some ship owners tried to raise the freight rates up. Finally, the freight rates in European route gained a large increase. The freight indices increased 0.18% on a week on week basis. The freight rates in Mediterranean East route decreased 1.71% on a week on week basis. In Mediterranean West route, some ship owners raised the freight rates up and the freight rates increased early this week. In later half of the week, the freight rates decreased slightly and kept stable. The freight indices increased 3.66% on a week on week basis.

North American route In the U.S., as Christmas coming, the trade on transportation market presented a weak trend. The freight rates in North American West Coast route stabilized and decreased slightly. The freight indices decreased 0.71%. In North American East Coast route, the freight rates were reduced for nearly half a month. Some shipping companies carried out the freight-rate-rising plan and the freight rates increased with shocks. The freight indices increased 3.59% this week.

South American route Some shipping companies carried out the freight-rate-rising plan last week, other shipping companies followed their steps to raise the GRI. Early this week, the freight rates hit a high point. But because the freight rates were at a high level, the traders slowed the shipment down. The freight rates were reduced continuously to guarantee the loading rate. The freight rates in South American West Coast route and South American East Coast route were reduced heavily. The freight indices decreased 1.74% and 2.10% on a week on week basis. In comparison, the freight rates in Central South American route increased markedly and the freight indices increased 5.28% on a week on week basis.

India-Pakistan route The cargo volume presented a weak trend and the scale of shipping space put on the market was at a high level. The freight rates kept the decrease trend of last week. The freight indices decreased 2.59% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 51, 2017 (Dec.18 – Dec.22), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 51, the TBI decreased slightly in the first half of the week and the decrease extended later.

On Dec.18 (Mon.), the freight rates of coal and mineral ore increased slightly and the freight rate of grain decreased, which made the TBI decrease slightly. Then, the freight rates of coal and mineral ore decreased and the freight rate of grain continued to decrease. The TBI decreased slightly from Dec.19 to Dec.20 (Tue. to Wed.).

From Dec.21 to Dec.22 (Thu. to Fri.), the freight rates of coal and grain decreased further and the decrease of the freight rate of mineral ore extended. TBI decreased fast and ended at 844.92 points with a decrease of 63.07 points (6.95%) from Dec.15 (the last release day of week 50).

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

TBCI decreased as a whole this week. TBCI ended at 645.49 points with a decrease of 39.78 points (5.81%) from Dec.15 (the last release day of week 50). For the Panamax market, domestic coal demand was well and the deal of cargoes was stable. But the available carriers were in over-supply, then the freight rate of the DBCT to Tianjin route continued to increase earlier this week but decreased continuously later and the total decrease was over 5%. For the Capesize market, the freight rate of Hay Point to Qingdao route decreased and the total decrease was about 6.5%.

TBGI decreased slightly this week. It ended at 677.65 points with a decrease of 10.55 points (1.53%) from Dec.15 (the last release day of week 50). Cargo volume of grain was small this week and the Panamax market was in a watch-and-see situation. The carriers were in oversupply and the freight rate of grain decreased. The freight rate of US Gulf to Tianjin route decreased about 1.5%. The freight rate of South America to Tianjin route decreased about 1.8%. The freight rate of West America to Tianjin route decreased over 1.4%.

TBMI increased slightly earlier this week but decreased significantly later. It ended at 1211.63 points with a decrease of 138.88 points (10.28%) from Dec.15 (the last release day of week 50). For the iron ore market, with the coming of the Christmas holiday, the deal in the Capesize market was gloomy and the ship-owners intended to lower the rate, then the freight rate decreased fast. The freight rate of West Australia to North China route decreased over 11%. The freight rate of Brazil to Tianjin route decreased about 12%. As for nickel ore, the Handysize carriers increased and the freight rate of Surigao to Tianjin route decreased over 2.5% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 51, 2017 (Dec.18-Dec.22), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 51, the TDI first decreased and then kept stable.

On Dec.18 (Mon.), the Outward Index decreased and the Inward Index kept stable which led the TDI decreased 1.59%. On Dec.19 (Tue.), both the Outward and Inward Index kept stable and the TDI kept stable. From Dec.20 to Dec.21 (Wed. to Thu.), the Outward Index kept stable and the freight rate in Guangzhou-Tianjin route decreased and that in Shanghai-Tianjin route increased slightly. The TDI decreased in two days. Finally, the TDI was closed at 982.31 points with a decrease of 16.20 points (1.62%) from Dec.15 (the last release day of Week 50).

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 at the beginning of the week and was closed at 1126.20 points on Dec.22 (Fri.) with a decrease of 31.69 points or 2.74% with the Dec.15 (the last release day of Week 50). The freight rate in three southward routes first decreased and then kept stable. The freight rate indices of Tianjin-Guangzhou/Quanzhou/Shanghai route decreased 3.87%, 3.89% and 2.30%.

Tianjin Domestic Container Inward Freight Index (TDII) decreased slightly. The TDII was closed at 838.42 points on Dec.22 with a decrease of 0.71 points (0.08%) from Dec.15 (the last release day of Week 50). The trend of three route were different. The freight rate of Quanzhou-Tianjin route kept stable and the index kept stable. The freight rate of Guangzhou-Tianjin route decreased and the index decreased 0.21%. The freight rate of Shanghai-Tianjin route increased and index increased 0.54% on a w-o-w basis.

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