Tianjin Shipping Index(Dec.25-Dec.29)

Jan 8, 2018

I. Tianjin Shipping Index (TSI)

Week 52, 2017 (Dec.25-Dec.29), Tianjin Shipping Index (TSI) and Tianjin Bulk Freight Index (TBI) were not released because of holidays. Tianjin Container Freight Index (TCI) increased continuously this week. Tianjin Domestic Container Freight Index (TDI) decreased early this week and then stabilized.

II. Tianjin Container Freight Index (TCI)

In Week 52, 2017 (Dec.25-Dec.29), the trend of TCI is as follows,

In Week 52, the TCI increased continuously.

From Dec.25 to Dec.27 (Mon. to Wed.), the freight rates in European route, South American West Coast route, South American East route and the Persian Gulf route increased slightly, the freight rate in Mediterranean route increased significantly and the freight rates in US route and Central and South America route decreased. TCI increased significantly and the total increased was 4.38%. From Dec.28 to Dec.29 (Thu. to Fri.), the freight rates in European route, Mediterranean route, US route, South America route and the Persian Gulf route all increased. TCI continued to increase and the total increase was 2.15%.

The TCI closed at 392.61 points with an increase of 24.39 points (6.62%) from Dec.22 (the last release day of Week 51).

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

European/Mediterranean route In the last week before the New Year’s Day vacation, the shipments of cargoes concentrated. Besides, the freight rate has decreased for nearly two months. Then the freight rate was in a low point within half a year and it was also significantly lower than the same period last year. Ship-owners carried out a plan of lifting the price in order to maintain a certain annual income and the freight rate increased fast. The freight rates in European route, Mediterranean East route and some of Mediterranean West route increased 3.48%, 42.60% and 20.81% on a week-on-week basis.

North American route Transport demand was stable and some ship-owners lowered the freight rate early this week in order to raise the loading rate. The shipment increased later and the freight rate stopped decreasing and increased. The freight rates in North American West Coast route and North American East Coast increased 1.26% and 0.62%.

South American route In South America West Coast route and South America East Coast route, some shipping alliances decreased the carriers and the volume of cargoes increased, then the freight rate kept increasing and the week-on-week increases in the two routes were 4.97% and 3.80%. As for the Central and South America route, the freight rate decreased with narrow shocks because the increase was large in earlier stage and the week-on-week decrease was 0.42%.

India-Pakistan route Some near-sea shipping line ship-owners joined the operation and carriers increased. The freight rate decreased significantly and hit a new low within this year early this week. Some shipping companies tried to lift the freight rate under the cost pressure and the freight rate stopped decreasing and began to increase later in the week. The freight rate increase 5.60% on a week-on-week basis.

III. Tianjin Domestic Container Freight Index (TDI)

Week 52 (Dec. 25-29) in 2017, the trend of the TDI is as follows

In week 52, Tianjin Domestic Container Freight Index (TDI) declined steadily.

The Outward Index remained stable this week, with TDI subject to changes of the Inward Index. On Dec. 25 (Mon.), the Inward Index remained stable. TDI maintained a steady market of last weekend. From 26th to 27th (Tuesday to Wednesday), the Inward Index went down and TDI dropped a total of 5.53 points for the second consecutive release day. On the 28th (Thursday), the Inward Index returned to stable with a steady TDI. On the 29th (Friday), the freight rate from Guangzhou to Tianjin slightly decreased, TDI declined slightly. The TDI finally closed at 976.52 points, has fallen 5.79 points or 0.59% from December 22 (the last release day of Week 51).

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

Tianjin Domestic Container Outward Freight Index (TDOI) returned to its steady state this week with index closing at 1126.20 points on December 29, unchanged from December 22 (the last release day of Week 51). As the New Year holidays is approaching, the supply and demand of southbound three routes market is relatively stable, the freight rate hadn’t seen any fluctuations this week. Tianjin to Quanzhou, Tianjin to Shanghai and Tianjin to Guangzhou route freight index week-on-week was flat.

Tianjin Domestic Container Inward Freight Index (TDII) continued the downtrend this week. The index closed at 826.84 on December 29 points, down by 11.58 points, or 1.38%, from December 22 (the last release day of Week 51). This week, Quanzhou to Tianjin, Shanghai to Tianjin route market is more stable, sub-route freight index remained stable. Guangzhou to Tianjin route market fights for the suppliers with lower prices, which led to a continued decline of freight rate and the rate of sub-route freight index fell 1.38% week-on-week.