(May 23-May 27) Tianjin Shipping Index

2016-06-01

Tianjin Shipping Index (TSI)

Week 21 (May 23-May 27), Tianjin Container Freight Index (TCI) increased at first and then decreased. Tianjin Bulk Freight Index (TBI) saw a slightly downward trend. Tianjin Domestic Container Freight Index (TDI) saw a shock. Tianjin Shipping Index (TSI) decreased at the beginning of the week, then increased at the end of the week and was closed at 497.36 points with an increase of 1.37% from May 20 (the last release day of Week 20). The TCI trend is shown in the chart below:

The chart above shows the trends of TSI from May 16 to May 27. The value of TSI in Week 21 is shown in the table below:

  

Tianjin Container Freight Index (TCI)

Week 21, 2016 (May 23-May 27), the TCI trend is shown in the chart below:

  

In Week 21, TCI continued to decrease at the beginning of the week, then consolidated slightly. At the end of the week, TCI increased markedly.

On May 23 (Mon.), the freight rates in European route, Mediterranean route, North American route, South American route, and Persian Gulf route decreased overall. TCI decreased 3.84% on a single day. From May 24 to May 25 (Tue.-Wed.), the freight rates in European route and Mediterranean East route saw a weak trend. The freight rates in Mediterranean West route and South American West Coast route increased slightly. TCI saw a shock slightly and decreased 0.27% slightly on two consecutive release days. Later in the week, the freight rate in Persian Gulf route continued to decrease. The freight rates in European route, Mediterranean route and South American route increased markedly, while the freight rate in North American route increased slightly. TCI increased 14.65% on two consecutive release days.

TCI eventually closed at 436.02 points on May 27 with an increase of 39.45 points (9.95%) from May 20 (the last release day of Week 20).

The TCI index value and ups and downs on a day-on-day basis are shown as follows:

  

European/ Mediterranean route

Controlling shipping capacity continued to implement. However, the current freight rate could not hold on due to the weak shipment volume. The market decreased the freight rate in order to maintain loading rate at the beginning of the week. Afterwards, some shipping companies implemented the plan of increasing freight rate by the end of the month one by one. The freight rate increased easily to make up for the loss at the beginning of the week. Eventually, the freight index in European route, Mediterranean East route, Mediterranean West route increased 24.01%, 20.85%, 13.21% on a week-on-week basis respectively.

North American route

The shipment volume kept stable overall. The freight rate continued to decrease at the beginning of the week because of the pressure of high shipping capacity. Afterwards, some shipping companies attempted to increased the freight rate slightly. The freight rate increased slightly. The freight index in North American West Coast route decreased 0.06% this week, while the freight index in North American East Coast route increased 0.17% this week.

South American route

The freight rate increased overall. The main trend of the market at the beginning of the week was improving the efficiency of ship utilization by decreasing the freight rate. As a result, the freight rate decreased slightly. At the middle and the end of the week, the market increased GRI generally, which drove the “V shape” trend of the freight rate this week. The freight index increased 4.97%, 7.15%, 6.48% respectively this week.

Persian Gulf route

The Ramadan was coming at the destination. The shipment volume decreased fast. The loading capacity of low density cargo was insufficient. Some shipping companies decreased the freight rate of large container hardly. The freight rate was weak sustainably. The freight index decreased 6.01% this week.

Tianjin Bulk Freight Index (TBI)

Week 21, 2016 (May 23-May 27), Tianjin Bulk Freight Index (TBI) is shown as follows:

  

In week 21, the TBI continued to fall back slowly.

From May 23 to 24 (Mon. to Tue.), the freight rate for coal continued falling back, but the freight rates for grain and mineral ore fluctuated in narrow ranges. The TBI, which demonstrated a decrease at first and an increase afterwards, ended with a decrease of 0.31%. From May 25 to 27, the freight rates for coal, grain and mineral ore showed a tendency of drop-down, which resulted in three consecutive decreases of TBI with a decrease rate of 2.22%.

Eventually, the TBI ended at 434.36 points, a decrease of 11.24points (2.52%) from May 20 (the last release day of Week 20).

TBI index value saw several ups and downs on a day-by-day basis are shown as follows:

  

The TBCI continued the decline tendency this week and ended at 279.25 points with the decrease of 18.75 points and a decrease rate of 6.29% from May 20 (the last release day of Week 20). Due to the limited demand for coal transportation and the overcapacity of Panamax vessels in the Pacific region, this week saw a continuous decrease of 8% in the freight rate from DBCT to Tianjin. Stable early this week, the freight rate of the Capesize dropped down greatly late this week. A nearly 5.0% decrease in the freight rate of Hay Point to Tianjin was observed.

The TBGI decreased in a narrow range this week and ended at 402.38 points, a decrease of 0.55 points (0.14%) from May 20 (the last release day of Week 20). The freight rate of the grain market stayed steady generally. Due to the limited quantity of grain in the West Coast America, the freight rate from West Coat America to Tianjin fluctuated slightly, while the freight rate from US Gulf to Tianjin remained the same as last week. In contrast, the storm in Argentina led to the decline of soybean production, which resulted in the drop-down of soybean trade in South America. The freight rate for South American to Tianjin decreased nearly 0.4% this week.

The TBMI dropped 14.44 points (2.27%) from May 20 (the last release day of Week 20) to 621.44 points this week. For iron ore, the continuous rise of the international bunker price boosted the freight rate of Capesize ship. However, the rising stock of iron ore at the main ports of China suppressed its import, which kept the freight rate at a low level this week. The freight rates for Australia to North China and Tubarao (Brazil) to Tianjin presented the falls of nearly 4% and over 1% respectively. As for nickel ore, the Handysize market gained support from the coal trade. The freight rate for Surigao to Tianjin increased nearly 0.4%, and the freight rate for Celebes to Tianjin remained almost the same as last week.

Tianjin Domestic Container Freight Index (TDI)

Week 21, 2016 (May 23-May 27), Tianjin Domestic Container Freight Index (TDI) was released and the trend is shown in the chart below.

In Week 21, the TDI declined with a fluctuation.

From May 23 to May 25. (Mon. -Wed.), Inward Index decreased, and the TDI continued the downward trend, decreasing 0.34% for three consecutive release days. On May.26 (Thu.), Inward and Outward Index increased, and the TDI saw an upward trend, increasing 0.75% on a day-on-day basis. On May 27 (Fri.), Inward Index decreased again, leading to a 1.69% decrease on the TDI on a day-on-day basis.

Finally the TDI was closed at 796.94 points with a decrease of 10.40 points (1.29%) from May 20 (the last release day of Week 20).

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

  

Tianjin Domestic Container Outward Freight Index (TDOI) increased this week, and was closed at 925.01 points on May 27(Fri.) with an increase of 4.28 points (0.46%) from May 20 (the last release day of Week 20). The market shipment volume of Tianjin-Guangzhou route remained in the doldrums. Shipping companies tried to maintain the current freight rate. Some shipping companies raise the freight rate, and the freight rate of this route increased 0.63% on a week-on-week basis. The freight rates in the Tianjin-Quanzhou route and Tianjin-Shanghai route remained stable due to the weak cargo volume. It was reported that new shipping capacity would fluctuate the freight rate.

Tianjin Domestic Container Inward Freight Index (TDII) in this week declined and was closed at 668.87 points on May 27 (Fri.) with a decrease of 25.07 points (3.61%) from May 20 (the last release day of Week 20). The shipping volume in northbound routes was low. The freight rate in Guangzhou-Tianjin route declined this week and was closed at 638.66 points with a decrease of 3.53%. The freight rate in Shanghai-Tianjin route got a slight downward trend at the beginning of the week, then kept stable. Eventually, the freight rate in this route decreased 0.39% on a week-on-week basis. The freight rate in Quanzhou-Tianjin route declined at the same time with a decrease of 6.78% on a week-on-week basis.

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