News
The downward trend dominated China export box market last week, worsening supply-demand picture in the market and applying downward pressure on freight rates generally.
The China Containerized Freight Index (CCFI) announced by the Shanghai Shipping Exchange (SSE) on May 24 marked 1057.92 points, down 1.2% from the previous week. The Shanghai Containerized Freight Index (SCFI) also declined 1.1% from a week before to 991.25 points.
On the Asia/Europe trade, an influx of new vessels into the trade since the second quarter offset carriers cautious stance to capacity increase, and the rate level has kept falling, with the lowest dropping as low as $600 per TEU. The CCFI on the trade quoted at 1203.17, down 3.6% from a week earlier.
Rates for Mediterranean services also tumbled last week. Spot rates (ocean freight + surcharges) fell 2.4% week on week to $760 per TEU.
As for the transpacific trades, U.S. economic indices show demand in the transportation market is on the right track in spice of a 10% capacity increase and continuing overtonnage. The freight rate (covering ocean freight and surcharges) of service from Shanghai to U.S. West Coast and East Coast ports stood at $2,093 per FEU and $3,254 per FEU, up 4.0% and 2.7%, respectively.
On Japan service, volumes declined slightly and average slot utilization rate for ships from Shanghai to Japan fell below 70%. The CCFI for the trade was 752.96 points, down 1.5% from the previous week.
