Tianjin Shipping Index (Jan.2-Jan.5)

Jan 26, 2018

I. Tianjin Shipping Index (TSI)

In Week 1 (Jan.2-Jan.5), the Tianjin Shipping Index (TSI) released for four times because of the New Year Holidays. Tianjin Container Freight Index (TCI) increased with fluctuation. Tianjin Bulk Freight Index (TBI) decreased markedly and then rebounded. Tianjin Domestic Container Freight Index (TDI) increased and stabilized. Tianjin Shipping Index (TSI) decreased and then increased. The TSI closed at 653.56 points with a decrease 0.95% from Dec.22, 2017 (the last release day of Week 51). The TSI trend is as follows,

The chart above shows the trends of TSI from Dec.18, 2017 to Jan.5, 2018 The value of TSI in Week 1,2018 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 1 2018 (Jan.2 to Jan.5), the TCI was released four times because of the New Year Holidays. The trend of TCI is as follows,

In Week 1, the TCI increased with shocks.

From Jan.2 to Jan.4 (Tue. to Thu.), the freight rates in European route, North American route, South American route and Persian Gulf route increased overall. The freight rates in Mediterranean route decreased and then increased. The TCI increased markedly by 2.97% on three consecutive release days. On Jan.5 (Fri.), the freight rates in European route, Mediterranean route and North American route decreased slightly. The freight rates in South American route kept stable. The freight rates in Persian Gulf route kept the increase trend. The TCI decreased slightly by 0.37% on a day on day basis.

The TCI closed at 402.77 points with an increase of 10.16 points (2.59%) from Dec.29, 2017 (the last release day of Week 52).

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

European/Mediterranean route Last week, some ship owners raised the freight rates up and other ship companies followed their steps and carried out the freight-rate-rising plan. Therefore, the freight in European route kept the increase trend of last week and the freight indices increased 3.71% on a week on week basis. The freight rates in Mediterranean route decreased early this week and then increased. The freight rates in Mediterranean route decreased markedly and the freight indices decreased 1.10% on a week on week basis. The freight rates in Mediterranean West route enjoyed a good momentum of increase and the freight indices increased 4.21% on a week on week basis.

North American route After Christmas holidays, the freight rates are tend to rebound because the market demand got warmer again, cargo volume from factory traders increased compared with that of last week and the freight rates rebounded for over 20%. Ship owners raised the GRI, the freight rates presented a strong trend and then decreased in later half of the week. The freight indices in North American West Coast route and North American East Coast route increased 9.15% and 6.38% this week.

South American route Cargo volume on the market kept stable. The shipping Alliances continued to reduce transport capacity. The freight rates increased with shocks. The freight rates increased 9.28%, 0.66% and 2.98% respectively on a week on week basis.

Persian Gulf route Since Nov.2017, some ship owners who mainly do short-range ocean transport marched to Persian Gulf route. The transport capacity was expanded markedly, but cargo volume was not increased obviously. The center of freight rates decreased continuously. Under cost pressure, the shipping companies continued to raise the freight rates which kept the increase trend of last week. The freight indices increased 4.82% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 1, 2018 (Jan.2 – Jan.5), due to the New Year holiday, Tianjin Bulk Freight Index (TBI) was released four times and the trend is shown as follows:

In week 1, the TBI decreased significantly in the first half of the week but increased later.

On Jan.2 (Tue.), the freight rates of coal and mineral ore decreased significantly from the last release day of 2017 and the freight rate of grain decreased slightly, which made the TBI decrease 8.10% on a day-on-day basis. Then, the freight rates of coal and mineral ore continued to decrease and the freight rate of grain stabilized. The TBI decreased 2.93% on a day-on-day basis on Jan.3 (Wed.).

From Jan.4 to Jan.5 (Thu. to Fri.), the freight rates of coal and grain increased slightly and the freight rate of mineral ore increased significantly. TBI increased continuously and ended at 797.79 points with a decrease of 57.13 points (6.76%) from Dec.22 (the last release day of week 51 last year).

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

TBCI first decreased and then increased this week. TBCI ended at 584.03 points with a decrease of 61.46 points (9.52%) from Dec.22 (the last release day of week 51). For the Panamax market, market demand was weak after the holiday and the freight rate decreased fast in the first half of the week. The deal of coal increased later in the week and the freight rate also increased. The freight rate of the DBCT to Tianjin route decreased about 8.5%. For the Capesize market, the freight rate of Hay Point to Qingdao route decreased significantly from the last release day before the holiday but the freight rate increased later. The total decrease was about 11% this week.

TBGI shocked narrowly this week. It ended at 679.26 points with an increase of 1.61 points (0.24%) from Dec.22 (the last release day of week 51 in 2017). The freight rate of grain was stable as a whole and the increase of the cargoes in US gulf made the market active in the later part of the week. The freight rate of US Gulf to Tianjin route increased over 0.1%. The freight rate of South America to Tianjin route increased over 0.4%. By contrast, the freight rate of West America to Tianjin route decreased about 0.1%.

TBMI decreased significantly in the first half of the week but increased slightly later. It ended at 1100.07 points with a decrease of 111.56 points (9.21%) from Dec.22 (the last release day of week 51). For the iron ore market, affected by Christmas and the New Year holiday, the Capesize market was gloomy and the freight rate in the first part of the week was much lower than the last release day of 2017. Later, the market recovered. The trading volume increased significantly and the freight rate increased. The freight rate of West Australia to North China route decreased over 13%. The freight rate of Brazil to Tianjin route decreased about 0.3%. As for nickel ore, the cargo volume was small and the freight rate of Surigao to Tianjin route decreased over 0.6% this week.

IV. Tianjin Domestic Container Freight Index (TDI)

In the first week of 2018 (January 2-5), Tianjin Domestic Container Freight Index (TDI) was released for 4 times due to the New Year's holiday, The TDI is shown in the figure below,

In the first week, Tianjin Domestic Container Freight Index (TDI) stabilized after rising at the beginning of the week.

On January 2 (Tuesday), the Outward Index rose and the Inward Index continued its steady trend last week. The TDI rose 1.25% in a single day. On Jan.3rd (Wednesday), the Outward Index rose slightly, the Inward Index dropped and The TDI dropped a bit. From Jan. 4th to 5th (Thursday-Friday), the Inward and Outward Index returned to a stable level. The TDI remained stable at 987.20 points, compared with December 29th, 2017 (the last release day of Week 52 of the previous year) Cumulative rise of 10.68 points, the cumulative increase of 1.09%.

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

Tianjin Domestic Container Outward Freight Index (TDOI) rose continuously this week. On January 5th, The Index closed at 1153.13 points, up 2.41% from December 29, 2017 (the last release day of the 52nd week last year) by 27.11 points. The southbound route market picked up after New Year holidays, of which Tianjin to Quanzhou route market demand is relatively strong and the freight rate increased significantly, the route freight index rose 3.06% week-on-week; Tianjin to Guangzhou route freight went upward as some shipping companies pushed up the coal transport price. The freight index increased 2.59% on a week-on-week basis. The freight rate from Tianjin to Shanghai was stable this week. The freight index of the sub-route was unchanged on a week-on-week basis.

Tianjin Domestic Container Inward Freight Index (TDII) declined slightly this week. The Index closed at 821.09 points on January 5th, down by 0.70% from 5.57 points on Dec. 29, 2017, the last release day of the 52nd week of the previous year. Due to lack of transportation demand in the market and oversupply of capacity, the freight rates of the three routes are still at a low level, showing a declining trend this week. Among them, Quanzhou-Tianjin route carriers cut their prices for supply. The downward trend of freight rate was obvious. The freight index of the sub-route dropped off by 2.59% on a week-on-week basis. The freight rates of Shanghai-Tianjin route and Guangzhou-Tianjin route were steadily decreasing. The freight index decreased 1.00% and 0.16% respectively on a week on week basis.

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