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China Export Container Transportation Market Weekly Report (September 16, 2022)

2022-09-19 16:57 6338 0

Transportation Demand Weakened in its Growth

Market Shipping Rates Sustained the Trend of Adjustment

Market quotations after the Mid-Autumn Festival holiday continued the rather sluggish performance shown before the festival. Weak growth in transportation demand brought about a continued adjustment trend in ocean shipping market rates, which dragged the composite index down. On September 16, the Shanghai Export Containerized Freight Index released by the Shanghai Shipping Exchange was 2312.65 points, declining 9.7% compared to the previous period.

   

European Routes: The data released by the ZEW Center for European Economic Research showed that the Eurozone ZEW Economic Sentiment Index for September was -60.7, a drop of about 6 percentage points from the previous month, which showed that the European economic community was generally pessimistic about the outlook for economic development in the Eurozone. The recent more intense conflict between Russia and Ukraine has led to geopolitical risks continuing to hover at a high level. Added with the high level of inflation, the future economic situation ahead is still subject to numerous risks. The performance of the transportation market remained unsatisfactory after the holidays, with market rates persistently declining. On September 16, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to European basic port was US$3,545/TEU, declining 8.6% compared with the previous period. For Mediterranean routes, market quotations remained largely in sync with European routes, with adverse supply and demand and a continued decline in spot market booking prices. On September 16, the market freight rate (ocean freight and ocean freight surcharge) from Shanghai port to Mediterranean basic port was US$3,777/TEU, declining 10.5% compared with the previous period.

    

North American Routes: According to data released by the U.S. Department of Labor, the U.S. Consumer Price Index (CPI) rose 0.1% in August compared to the previous period and 8.3% year-on-year. The level of inflation remains at a historically high level, which significantly exceeded market expectations and triggered market concerns about the Federal Reserve's ongoing policy of more aggressive interest rate hikes. Against a backdrop of economic growth along with signs of slowdown in employment, the Federal Reserve continued to tighten sharply, further increasing the risk of the US economy falling into recession. This week, transportation demand performed sluggishly, as supply and demand fundamentals continued being weak, and the market rates continued to move downwards. On September 16, the market freight rates (ocean freight and ocean freight surcharge) for exports from Shanghai port to the basic ports in the western and eastern US were US$3,050/FEU and US$7,176/FEU respectively, declining 12.5% and 7.6% respectively compared to the previous period.

    

Persian Gulf Routes: Transportation demand lacked growth momentum, as the supply-demand relationship was unfavorable and market freight rates deprived of support. The spot booking prices continued to see a relatively significant decline. On September 16, the market freight rate (ocean freight and ocean freight surcharge ) from Shanghai port to the basic port of Persian Gulf was US$1,232/TEU, declining 16.8% compared with that in the previous period.

  

Australia and New Zealand Routes: The epidemic continued to linger at a high level in the major countries of destination. Although the demand for all types of household goods in the local market was largely stable, the growth momentum was inadequate and the fundamentals of supply and demand turned weak. The market quotations sustained a decline, with a continued drop in freight rates this week. On September 16, the market freight rate (ocean freight and ocean freight surcharge) for export from Shanghai port to Australia-New Zealand basic port was US$2,262/TEU, declining 9.1% compared with the previous period.

   

South American Routes: After the traditional peak transport season, there was a significant slowdown in transport demand with negative fundamentals of supply and demand. This week, market rates continued the trend of adjustment. On September 16, the market freight rate (ocean freight and ocean freight surcharge) for exports from Shanghai port to South American basic ports was US$6,342/TEU, a decline of 11.7% compared with that of the previous period.

    

Japan Routes: Despite of the recent severe local epidemic situation, the transportation market was basically stable and the market rates fell slightly. On September 16, the freight index of China export to Japan routes was 1,142.22 points.