Tianjin Shipping Index (Apr.9-Apr.13)

Apr 20, 2018

I. Tianjin Shipping Index (TSI)

In Week 15 2018 (Apr.9-Apr.13),Tianjin Container Freight Index (TCI) decreased with fluctuation. Tianjin Bulk Freight Index (TBI) decreased and then increased. Tianjin Domestic Container Freight Index (TDI) increased with shocks. Tianjin Shipping Index (TSI) decreased and increased. The TSI closed at 563.74 points with a decrease of 0.83% from Apr.4 (the last release day of Week 14). The TSI trend is as follows:

The chart above shows the trends of TSI from Apr.2 to Apr.13. The value of TSI in Week 15, 2018 is as follows:

II. Tianjin Container Freight Index (TCI)

In Week 15 2018 (Apr.8 to Apr.13), the TCI released six times because of the Tomb Sweeping Day holiday. The trend of TCI is as follows:

In week 15, the TCI decreased slightly.

From Apr.8 to Apr.10 (Sun. to Tue.), the freight rates in European route and Mediterranean route increase slightly with shocks. The freight rates in South American East Coast route and India-Pakistan route increased rapidly. The freight rates in North American route, South American West Coast route and Central South American route presented a weak trend. The TCI decreased and then increased 0.16% on three consecutive release days. From Apr.11 to Apr.13(Wed. to Fri.), the freight rates in South American East Coast route and India-Pakistan route kept the increase trend. The freight rates in European route, Mediterranean route, North American route, South American West Coast route and Central South American route decreased overall. The TCI decreased by 0.98% on three consecutive days.

The TCI closed at 341.34 points with an increase of 2.83 points (0.82%) from Apr.4 (the last release day of Week 14).

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

European/Mediterranean route Cargo volume increased slowly. Some ship owners tried to raise the freight rates which increased with shock at first half of the week. The situation of supply exceeds demand improved markedly. Beside, some other ship owners’ willingness to raise the freight rates were not strong, the freight rates kept decreasing in later half of the week. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased 1.96%,0.36% and 1.15% on a week on week basis.

North American route Some shipping alliances adopted the “small for bigger” strategy or put new ships on the market to upgrade the transport capacity. Therefore, the freight rates did not kept the increase trend of last week. The freight rates decreased slightly. The freight indices in North American West Coast route and North American East Coast route decreased 5.57% and 2.18% respectively this week.

South American route In South American West Coast route and Central South American route, the cargo volume was in a low level. The pressure for cargo collection was big and the freight rates decreased markedly. The freight indices decreased 10.04% and 7.72% on a week on week basis. In comparison, the freight rates in South American East Coast route decreased markedly since 2018. The ship owners’ willingness to raise the freight rates were strong. The GRI was raised by the shipping companies. The freight rates presented a strong trend the whole week. The freight indices increased 11.37% on a week on week basis.

India-Pakistan route For almost a month, cargo volume grew inadequately. Under the pressure of transport overcapacity, the ship owners decreased the freight rates and fought for market share, which led to the decrease of freight rates and the decrease was over 30 percent. Pressured by cost, the freight rates were increased and the freight indices increased 10.29% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 15, 2018 (Apr.9 – Apr.13), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 15, the TBI continued to decrease earlier this week but then stabilized and increased.

From Apr.9 to Apr.10 (Mon. to Tue.), the freight rates of coal and mineral ore decreased significantly and the freight rate of grain decreased slightly, which led the TBI to decrease for two successive release days and the total decrease was 4.90%. Then, the freight rates of coal and grain stabilized and increased and the freight rate of mineral ore increased slightly, which led the TBI to increase successively from Apr.11 to Apr.13 (Wed. to Fri.) and the total increase was 3.34%.

TBI ended at 739.73 points with a decrease of 13.02 points (1.73%) from Apr.4 (the last release day of week 14).

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

TBCI kept decreasing earlier this week but increased slightly later. TBCI ended at 594.98 points with a decrease of 51.06 points (7.90%) from Apr.4 (the last release day of week 14). Domestic coal demand decreased and the coal stockpile was sufficient. The deal of coal was not active and the freight rate continued to decrease. For the Panamax market, the freight rate of the DBCT to Tianjin route decreased over 12%. For the Capesize market, the freight rate of Hay Point to Qingdao route decreased fast earlier this week but increased significantly later. The total decrease was about 1%.

TBGI shocked narrowly this week. It ended at 697.53 points with a decrease of 6.45 points (0.92%) from Apr.4 (the last release day of week 14). The market of the Panamax market was gloomy as a whole and the freight rate of grain decreased slightly. The market in South America was normal but the increase of carriers in ballast caused the freight rate of South America to Tianjin route decreased over 0.4%. By contrast, the freight rate of US Gulf to Tianjin route decreased over 1.1% and the freight rate of West America to Tianjin route decreased over 1.8%.

TBMI first decreased and then increased. It ended at 926.68 points with an increase of 18.44 points (2.03%) from Apr.4 (the last release day of week 14). For the iron ore market, it continued to be gloomy earlier this week. The shipment of Australian miners became active later and the oil price increased, which led the freight rate of West Australia to North China to increase about 6%. By contrast, the freight rate of Brazil to Tianjin route continued to decrease and the total decrease this week was about 6%. As for nickel ore, under the influence of bad weather, the shipment of nickel ore in the Philippines was not active. The freight rate of Surigao to Tianjin route decreased over 1.2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Six days (Apr.08-Apr.13) of Tianjin Domestic Container Freight Index (TDI) updates because of Tomb Sweeping Day in Week 15. The trend is shown in the chart below.

The TDI in Week 15 went up in concussion.

From Apr.08 (Sun.) to Apr.09 (Mon.), the Inward Index and the Outward Index kept steady, thus the TDI remained stable. From Apr.10 (Tues.) to Apr.11 (Wed.), both the Inward Index and the Outward Index increased, driving the TDI skyrocketed. The TDI rose 1.08% and hit the maximum on Apr.11 (Wed.). On Apr.12 (Thur.), the Outward Index continued rising, but the Inward Index started to decline, so the TDI decreased. Finally, on Apr.13 (Fri.), the Inward Index and the Outward righted themselves and the TDI closed at 782.13 points, with a growth of 2.08points (0.27%), compared with that on Apr.04 (the last release day of Week 14).

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

Tianjin Domestic Container Outward Freight Index (TDOI) continued rising this week, eventually closing at 955.35 points on Apr.13 (Fri.), increasing 33.52 points (3.64%) compared with that on Apr.04 (the last release day of Week 14). With increasing freight transport demand in April, ship owners gradually pushed up freight rate. This week, the freight rate indices of Tianjin-Quanzhou and Tianjin-Guangzhou routes rose 2.77% and 4.32% respectively. That of Tianjin-Shanghai route kept stable on a week-on-week basis.

Tianjin Domestic Container Inward Freight Index (TDII) first increased and then decreased. It closed at 608.91 points on Apr.13, with a decline of 29.36 points (4.60%), compared with that on Apr.04 (the last release day of Week 14). This week, some new ships were launched, expanding transport capacity, but was unfavorable for the balance of supply and demand. Thus, both the freight rate index of Quanzhou-Tianjin route and that of Guangzhou-Tianjin route slashed this week, separately 7.90% and 4.97%. By contrast, that of Shanghai-Tianjin route rose in stability (0.82%).

Source from : Tianjin Shipping Index

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