News
The composite China Containerized Freight Index (CCFI) averaged 1,279.21 points in March, down 11.2% from the previous month, Shanghai Shipping Exchange (SSE) recently announced, while the composite Shanghai Containerized Freight Index (SCFI) stood at 1,820.27 points on average, down 15.9%. Many market insiders thought that China's container exports entered a correction phase, according to an analysis report compiled by the nation's transport ministry.
The CCFIs averaged 1,938.08 points to Europe, down 15.8%, and 2,471.59 points to the Mediterranean, down 15.7%. Meanwhile, spot rates for container exports from Shanghai amounted to $2,064 per TEU to Europe, down 21.4%, and $3,061 per TEU to the Mediterranean, down 15.9%. Growth in growth in transport demand slowed and disrupted its balance against supply.
The CCFI closed at 1,029.59 points on average to the U.S. West Coast, down 6.4%, and 1,179.74 points to the East Coast, down 9.6%. Transport demand lost momentum, loosening its balance against supply on the route to the U.S. as well; therefore, ex-China spot rates entered an adjustment phase.
The CCFI came to an average of 925.08 points on the route to Australia and New Zealand, down 11.7%. Demand fluctuated at low levels at places of destination, which was not robust enough to pick up. The balance between demand and supply, as such, deteriorated, making spot rates remained on a downward trend.
The CCFI fell 4.7% to 1,379.22 points on average on the trade to the Middle East Gulf and the Red Sea, while ex-Shanghai spot rates waned 1.7% to $1,585 per TEU on average. Ramadan began in the midst of the shipping crisis in the Red Sea. Transport demand was weak at places of destination in the first half of the month, loosening its balance against supply and making spot rates continue to decline. In contrast, demand has been more favorable than usual since the beginning of the second half of the month, triggering mild spot rate rebounds near the end of the month.
The CCFI averaged 754 points on the trade to Japan, down 6%, where transport demand was relatively stable, but spot rates decreased slightly.
The CCFI, an indicator for freight rates for container exports from China that are transported on medium- and long-term contracts, was set at a baseline of 1,000 points on Jan. 1, 1998. Meanwhile, the SCFI represents spot rates for those from Shanghai that do not include terminal handling charges (THCs), which was set at a baseline of the same value on Oct. 16, 2009.
