Monthly report on China's export container transport market in July

The epidemic continues to spread worldwide, with nearly 17 million confirmed cases by the end of July 2020. Most countries have rebounded after restarting their economies, but they have not reintroduced blockade measures. Economic recovery along with epidemic prevention and control will become the new normal for a period of time to come, supporting the container transport market. China's export container transport market has been on the up this month, with freight rates on most ocean routes rising, driving up the composite index. In July, the index averaged 861.05, up 2.4% from the previous month. Freight rates on North American routes rose to record highs, driving up spot market booking prices. The Shanghai Composite index of export containers, which reflects the spot market, rose 6.9 per cent on average to 1,039.75 points in July.

1, the ship charter market declined substantially

Dragged down by the epidemic, the container charter market is depressed, and most ship charter prices have dropped significantly. According to Clarkson, charters for 1700TEU, 2750TEU, 4400TEU and 6800TEU ships fell 18 per cent, 16 per cent, 29 per cent and 39 per cent respectively in July from the previous month.

2. European freight rate rose slightly

Although the epidemic has rebounded slightly in some countries, the countries have not resumed control measures and the pace of economic recovery has not stopped. Recently, a number of economic data in The European region show that the economy is picking up momentum. The demand for container transport continues to keep a good momentum, and the fundamentals of supply and demand remain firm. The average loading rate of ships at Shanghai Port remains around 95%, and the market freight rate has risen slightly. In July, the average index of freight rates for China's routes to Europe and the Mediterranean was 1,029.88 points and 1,168.96 points, respectively, up 1.4% and 0.6% from the previous month.

3. The North American market rose significantly

The United States ranks first in the number of confirmed coVID-19 cases and deaths in the North American airline industry, and the epidemic continues to spread rapidly in the United States, but the United States still gives priority to economic recovery. U.S. employers added 4.8 million jobs in June, a record high, according to the Labor Department, in a sign of a better economic recovery. Supported by this, the demand for transportation continues to grow. The utilization rate of average shipping space at Shanghai Port is above 95%, and the relationship between supply and demand is sound. Airlines continued to push up rates this month, with spot market booking prices for flights between the US and the West hitting record levels. In July, the average index of freight rates for China's export routes to the Western and eastern United States was 855.78 points and 973.65 points, respectively, up 13.7 percent and 6.2 percent from the previous month.

4. The New Australia market is generally good

The epidemic situation in Australia and New Zealand has been under overall control. Despite the recent rebound, the overall economy has basically returned to normal. Transport demand is performing well, the fundamentals of supply and demand are balanced, the average loading rate of ships at Shanghai port remains around 95%, and the market freight rate is rising. The index averaged 847.54 points in July, up 4.0% on average from the previous month.

5. South American freight rates continue to fall

South American routes, the outbreak in local transmission condition is relatively serious, countries such as Brazil confirmed the number of high-speed growth, although stimulates the demand of part of the daily necessities and medical goods, but this overall transport demand is still weak, some carriers to take measures to control capacity scale, such as stopping the fundamentals are still poor, Shanghai ship cubed out wandering around 90% on average, the market rate continued to fall. The index averaged 459.93 points in July, down 11.4 per cent from the previous month.

6. The Japanese airline is basically stable

Japan airlines, the overall market supply and demand stable, freight rates remain basically stable. The index averaged 740.80 points in July, down 0.1 per cent from the previous month.