Steady Transportation Demand Maintained
Slight Dip in Composite Index
In the realm of China’s export container shipping market, this week exhibited an overall stability. Transportation demand remained relatively constant, and different routes experienced varied fluctuations in shipping rates due to distinct supply and demand dynamics. The composite index saw a minor decline. Data released by the National Bureau of Statistics revealed that in the first half of the year, the year-on-year growth of total retail sales of consumer goods increased by 8.2%, a 2.4 percentage point acceleration from the first quarter. The contribution of growth in final consumption expenditure to the economy reached 77.2% in the first half of the year. Consumption-driven economic recovery sustained, and with the support of macro policies, the second half of the year is anticipated to witness further unlocking of economic growth potential. On August 18th, the Shanghai Shipping Exchange reported the Shanghai Export Container Comprehensive Freight Index as 1031 points, marking a minor decrease of 1.2% compared to the previous period.
European Routes faced economic revival challenges. According to data from the European Union’s statistical office, seasonally adjusted data indicated a 0.3% quarter-on-quarter growth in GDP for the Eurozone in the second quarter of this year. The Euro area GDP showed no growth, indicating a sluggish European economic recovery. Amidst elevated inflation and high-interest rates, considerable uncertainties loom over future economic prospects. This week saw persistent softness in transportation demand due to suboptimal supply-demand fundamentals, consequently leading to further declines in market freight rates. On August 18th, the export freight rate from Shanghai to the European base port market (including sea freight and surcharges) registered at $852 per TEU, experiencing an 8.0% decrease compared to the previous period. Mediterranean Routes mirrored the trends of the European routes, with spot booking prices slightly decreasing. On August 18th, the export freight rate from Shanghai to the Mediterranean base port market (including sea freight and surcharges) amounted to $1500 per TEU, showing a decrease of 0.5% compared to the previous period.
North American Routes encountered certain economic pressures. Data published by the Institute for Supply Management (ISM) revealed that the Manufacturing Purchasing Managers’ Index (PMI) for July was 46.4, consistently below the 50-point threshold for nine consecutive months. Although this marked an improvement from June’s figure, it still fell short of market expectations, indicating a certain level of economic recovery strain. This week observed relatively stable transportation demand, with supply and demand fundamentals maintaining equilibrium. Market freight rates largely remained consistent with the previous week, with minor fluctuations. On August 18th, the export freight rate from Shanghai to the US West and East base port markets (including sea freight and surcharges) amounted to $2003 per FEU and $3110 per FEU, representing a decrease of 0.7% and an increase of 1.3%, respectively.
Persian Gulf Routes saw improvements in supply and demand. With a rebound in transportation demand and a generally improved supply-demand balance, market freight rates rebounded after previous declines. On August 18th, the export freight rate from Shanghai to the Persian Gulf base port market (including sea freight and surcharges) stood at $908 per TEU, indicating a 6.4% increase compared to the previous period.
Australia-New Zealand Routes maintained high demand. With a continued positive trend in supply and demand relations, market freight rates continued to rise this week. On August 18th, the export freight rate from Shanghai to the Australia-New Zealand base port market (including sea freight and surcharges) reached $453 per TEU, marking a 4.1% increase from the previous period.
South American Routes faced weakened growth in transportation demand. As supply and demand relations continued to decline, spot booking prices followed a downward trajectory this week. On August 18th, the export freight rate from Shanghai to the South American base port market (including sea freight and surcharges) stood at $2285 per TEU, experiencing a 6.5% decrease compared to the previous period.
Japanese Routes witnessed a relatively steady transportation demand, resulting in a minor decrease in market freight rates. On August 18th, China’s Export to Japan Route Freight Index reached 753.66 points.
