Tianjin Shipping Index (Feb.5-Feb.9)

Feb 27, 2018

I. Tianjin Shipping Index (TSI)

In Week 6 (Feb.5-Feb.9), Tianjin Container Freight Index (TCI) fluctuated slightly. Tianjin Bulk Freight Index (TBI) decreased with shocks. Tianjin Domestic Container Freight Index (TDI) kept stable. Tianjin Shipping Index (TSI) decreased slightly. The TSI closed at 606.07 points with a decrease of 0.65% from Feb.2 (the last release day of Week 5). The TSI trend is as follows,

The chart above shows the trends of TSI from Jan.29 to Feb.9. The value of TSI in Week 6, 2018 is as follows,

II. Tianjin Container Freight Index (TCI)

In Week 6, 2018 (Feb.5 to Feb.9), the trend of TCI is as follows,

In Week 6, the TCI fluctuated slightly.

On Feb.5 (Mon.), the freight rates in European route, North American East Coast route and South American route decreased slightly. The freight rates in Mediterranean route, North American West Coast route and India-Pakistan route increased. The TCI increased 0.58 on a day on day basis. From Feb.6 to Feb.9 (Tue. to Fri.), the freight rates in European route and India-Pakistan route stabilized. The freight rates in North American route stabilized and decreased. The freight rates in South American route increased and then decreased. The TCI decreased 0.15% on four consecutive release days.

The TCI closed at 461.87 points with an increase of 1.99 points (0.43%) from Feb.2 (the last release day of Week 5).

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

European/Mediterranean route With the coming of Spring Festival, concentrated shipment of cargo from factories is about to end and the market presented a weak trend. The freight rates in European route decreased slightly. The freight indices decreased 0.60% on a week on week basis. The freight rates in Mediterranean East route and Mediterranean West route increased slightly early this week and then kept stable. The freight indices increased 0.14% and 0.65% on a week on week basis.

North American route It was before Spring Festival, cargo volume reduced. Transport capacity remained a high level. The freight rates in North American West Coast route decreased after hitting a high point. The freight indices increased 0.35% this week. The freight rates in North American East Coast route decreased slightly. The freight indices decreased 0.89% on a week on week basis.

South American route Shipping companies’ pressure to collect cargo became larger. In order to maintain loading rate, the freight rates in South American West route and Central South American route decreased with shocks. The freight indices decreased 3.51% and 4.53% on a week on week basis. In comparison, the freight rates in South American East route kept the increase trend of last week. The freight indices increased 1.26% on a week on week basis.

India-Pakistan route The ship owners raised the freight rates early this week and the freight rates kept an increase trend. In mid and later half of the week, the freight rates kept stable. The freight indices increased 3.12% on a week on week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 6, 2018 (Feb.5 – Feb.9), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 6, the TBI decreased with shocks.

From Feb.5 to Feb.6 (Mon. to Tue.), the freight rates of coal, grain and mineral ore all decreased slightly. TBI continued decreasing for two successive release days and the total decrease was 1.11%. Then, the freight rate of mineral ore increased. TBI increased on Feb.7 (Wed.) and the day-on-day increase was 0.41%.

From Feb.8 to Feb.9 (Thu. to Fri.), the freight rates of coal and grain continued to decrease and the freight rate of mineral ore decreased again. TBI decreased continuously and ended at 743.72 points with a decrease of 13.86 points (1.83%) from Feb.2 (the last release day of week 5).

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

TBCI decreased continuously this week. TBCI ended at 563.31 points with a decrease of 22.14 points (3.78%) from Feb.2 (the last release day of week 5). For the Panamax market, with the spring festival approaching, the cargo of mineral ore decreased and the situation of the oversupply of carriers intensified. The freight rate of the DBCT to Tianjin route decreased continuously and the total decrease was over 7%. The freight rate of the Capesize decreased first but increased later and the freight rate of Hay Point to Qingdao route increased over 1%.

TBGI decreased continuously this week. It ended at 675.12 points with a decrease of 10.98 points (1.60%) from Feb.2 (the last release day of week 5). There were many Panamax carriers in the market and the deal of grain was gloomy and the freight rate continued to decrease. The shipment of grain in South America slowed down and the freight rate decreased significantly. The freight rate of South America to Tianjin route decreased over 2.2%. By contrast, the freight rate of US Gulf to Tianjin route decreased over 1% and the freight rate of West America to Tianjin route decreased 1.6%.

TBMI decreased with shocks this week. It ended at 992.73 points with a decrease of 8.45 points (0.84%) from Feb.2 (the last release day of week 5). For the iron ore market, Australian miners chartered the carriers in the middle part of the week and it led the freight rate to increase. The market became calm again later and the freight rate of West Australia to North China decreased about 2.5%. There were not many carriers in the Atlantic region and the freight rate increased later in the week. The freight rate of Brazil to Tianjin route increased about 4%. As for nickel ore, under the influence of the oversupply of carriers, the freight rate of Surigao to Tianjin route decreased over 0.6%.

IV. Tianjin Domestic Container Freight Index (TDI)

In the sixth week of 2018 (Feb.5-Feb.9), the trend of the TDI is as follows:

In Week 6, Tianjin Domestic Container Freight Index (TDI) remained stable.

This week, both the Inward and Outward Indices maintained a steady trend. TDI ended at 785.28 points, unchanged from Feb. 2 (the last release day of Week 5).

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

Tianjin Domestic Container Outward Freight Index (TDOI) remained stable. The index closed at 968.65 points on Feb.9, unchanged from Feb.2 (the last release day of Week5). As the Spring Festival holiday is approaching, factories headed into the holiday recess and suspended the production, some ship-owners suspended the shipping service, and the market trade was light. Tianjin to Quanzhou, Tianjin to Guangzhou, Tianjin to Shanghai freight rate index week-on-week was flat.

Tianjin Domestic Container Inward Freight Index(TDII)remained stable this week with the index close at 601.91 points on Feb.9, unchanged from Feb.2 (the last release day of Week 5). Affected by the Spring Festival holiday, factories gradually stopped the production and the trade demand for raw materials such as ceramics, building materials, steel pipe and coil steel was sluggish, and the shipping market was quiet and the freight rate remained stable.

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