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Review on China export container shipping market
Writer:admin     Time:2009/9/7     Hits:3955
    The freight volume of Europe and the US still remained in the doldrums, the composite index also declined slightly.

  This week, the total demand for China export container shipping remain flat, it’s hard to prevent the declining of the freight price of all major routes. The freight of Europe line become flexible after three weeks’ continuing contraction of the freight volume. Even though the decreasing of the freight volume of Northern America line has been halted, the price declined further due to the pressure of shipping overcapacity. And the freight of Japan line continued low tubulence. On April 17, Shanghai Shipping Exchange issued that the index of China export container freight was 833.92 points, and 800.66 points of Shanghai container freight, each decrease by 0.5% and 1.6% compared to last week.

  Of Europe line, the market volume continued declining this week. There are two reasons led to this situation. On one hand, European consignees deepen pessimism about the economy, which led to a decline in orders on domestic production. On the other hand, the recent trend of freight in Europe-Mediterrane line still not clear, most manufacturer are gradually lengthening the producing cycle and slow down the pace of shipment. Because of these reasons, the freight volume of E-M line this week suffered another setback. Compare to the period before rise in price, it is down by about 20% in a conservative estimate. The average space utilization of the ship in Europe line barely maintained at 70%, and Mediterrane line has dropped to 60%. Shipping companies insist that they have no choice but to rise the price due to the force of low incomes and they claim that they will hold the present markup, but deterioration of the volume and increasing of the cabin lossing rate has forced some shipping companies to lower the freight. Although the mainstream of current market price remained at $500/TEU or more, some shipping companies have lowered the price to $400/TEU (include surcharge), only about $100/TEU higher than the price before its rise, which far below the expected markup of the cost insurance line of route management. On April 17, Shanghai Shipping Exchange announced that the Europe line freight index was 828.88 points, decreased slightly by 0.5% compared to last week.  

  Of Northern America line, Of Northern America Line, the volume this week stop declining and become stabilized. The decreasing volume and the resulting shipping overcapacity which make shipping companies struggling to ward off. The freight this week continue to decrease. The freight of America-Spain Line market has fell below $1000/FEU. Recently, inview of the increasingly depressed market conditions. The Transpacific Stabilisation Agreement suggest its member setting the lowest freight of Northern America Line from July 1st this year. The A-S line will be set to $1350/FEU and the A-E line will be $2500/FEU. But this suggestion does no enforceability. Under the background of reduced demand of freight, wether or not shipping companies will take this suggestion depends on when the market demand will increase.

  Japan line act oustanding this week. With the Labour Day approaching, many domestic enterprises acceleroted delivery. So the volume rised obviously this weekby about 10% compare to last week. And compare to the period last year, it changes little. But troubled by the shipping overcapacity, the average utilization rate of Shanghai-Japan export line remain in 60%-70%, the freight changed slightly. On April 17, Shanghai Shipping Exchange issued the index of Japan line freight is 641.59 point, dropped by 1.7% compare to last week

 

 
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