Stable demand slightly recovers containerized maritime transport
Daniel Bosch Wood
Maritim Lawyer
LLM Southampton
Las Palmas de Gran Canaria
As recorded by the Shanghai Container Load Index (SCFI)
The containerized shipping market in China registers a stable demand in general and the shipping companies increase their freight rates on some routes, recording a marginal recovery. However, spot rates go up and down depending on the different shipping strategies. On May 26, the Shanghai Container Load Index (SCFI) quoted 853.43 points, marking an increase of 2.7% in the inter-weekly comparison.
According to Chineseshipping, consumer confidence has risen for three consecutive months and in May a new record was recorded for 10 years. The demand for transport on the route to Europe remains stable, which improves the demand / supply ratio. Both the occupancy rates for container spaces on European and Mediterranean routes remain above 90%, and some even mark 100%.
Also some shipping companies begin to carry out a rate increase plan, but most are cautious. Finally, the increase in rates has remained within USD100 / TEU.
Situation by route
On May 26, freight rates on routes from Shanghai to Europe and the Mediterranean (with surcharge) quoted US $ 977 / TEU and US $ 945 / TEU, respectively, with an increase of 5.7% and 3.4 % each, compared to the previous week.
On the North American route, the demand for transport increased steadily, but in terms of capacity increase, the demand / supply ratio does not improve. The average rate of use of spaces from the port of Shanghai averages around 90%. Due to the weak condition of the market, most shipping companies maintain a cautious attitude. Only a small part of them tried to increase reserve rates by the beginning of June, causing spot rates to continue falling. On May 26, freight rates on the routes from Shanghai to USWC and USEC (with surcharges) quoted US $ 1,264 / FEU and US $ 2,229 / FEU, falling by 21.3% and 15.1%, each with respect to The last week.
On the route of the Persian Gulf, as a result of the increase in shipments before the “Duanwu Festival” in China, the market experienced a series of incentives, causing the average occupation rate of spaces from the port of Shanghai to remain above the 95%, with some even at 100%. Most of the shipping companies increased their freight rates, increasing the spot rate continuously. On May 26, the freight rate on the route of the Persian Gulf of Shanghai (with surcharges) quoted US $ 764 TEU, 6.3% more than the previous week.
Impacted by the persistent weakness in transport demand, the demand / supply ratio did not improve the route to Australia, where the average utilization rate exiting the Shanghai port fell to around 80%. Some shipping companies have reduced freight rates, further reducing spot rates. On May 26, the fare on the Shanghai-Australia route (with surcharges) had a weekly decrease of 8.1%, reaching US $ 373 / TEU.
The demand / supply ratio remains stable on the South American route, where the average occupancy rate for spaces leaving the Shanghai port remains around 95%. The shipping companies increased the rates for the second time on this route. On May 26, the freight rate on the Shanghai-South America route (with surcharges by sea) was quoted at US $ 3,294 / TEU, with an increase of 7.3% on an inter-weekly basis.