Analysis Report on China's Export Container Transport Market in September 2022
The overall situation of the local epidemic in our country is under stable control, and major ports are operating normally. Recently, the global economy has shown signs of slowing down, leading to a slowdown in global trade and a correction in China's export container transportation market. In September, the average comprehensive freight rate index for Chinese export containers released by the Shanghai Shipping Exchange was 2593.35 points, an average decrease of 14.5% compared to the previous month; The average Shanghai Export Container Composite Index, which reflects the spot market, is 2343.48 points, a decrease of 32.5% compared to the previous month.
1. The port container throughput continues to perform well, and the ship leasing market continues to decline
① The local epidemic situation in our country continues to show a stable trend, and major ports are operating normally. In August 2022, China's port container throughput continued to perform well, with both coastal and inland port throughput increasing, with inland ports experiencing a significant increase. According to statistics, the container throughput of ports across the country reached 25.73 million TEUs, an increase of 3.8% compared to the same period last year. Among them, coastal ports completed a container throughput of 22.58 million TEUs, an increase of 2.9% year-on-year; The inland ports completed a container throughput of 3.14 million TEUs, an increase of 11.0% year-on-year.
② The container charter market has accumulated significant gains in the early stage, and most ship rental prices are still in an adjustment trend. According to Clarkson statistics, in September 2022, the rental prices of 1000TEU, 1700TEU, 2750TEU, and 4400TEU ships decreased by 7.9%, 19.4%, 4.0%, and 2.7% compared to the previous month.
2. European freight rates continue to decline
According to data released by research firm Markit, the initial manufacturing PMI for the Eurozone in September was 48.5, a 27 month low, and all indicators continued to deteriorate below the boom bust line. The recent Russia-Ukraine conflict has become more complex and intense, which has made the energy crisis in Europe worse. When winter comes, energy shortages can lead to high inflation or further accelerate the rise. The various concerns about the increase in living costs and economic slowdown have dealt a heavy blow to consumer sentiment, and the future economic situation is not optimistic. The European air route transportation market has shown weak performance this month, and at the end of the month, the market was not supported by the peak shipment before the long holiday as usual, with market freight rates continuing to decline. In September, the average freight rates for China's exports to Europe and the Mediterranean were 4316.23 points and 4625.79 points, respectively, a decrease of 11.4% and 14.3% compared to the previous month.
3. North American market performance is weak
According to data released by the US Department of Labor, the Consumer Price Index (CPI) for August in North America increased by 0.1% month on month and 8.3% year-on-year, with inflation levels continuing to remain at historic highs. The Federal Reserve was forced to continue aggressive interest rate hikes, leading to increased volatility in financial markets. Recently, there have been signs of economic recovery and a slowdown in the job market, further increasing the risk of the US economy falling into stagflation. This month's transportation demand has not improved, and the supply-demand relationship is slightly weak, with market freight rates continuing to decline. In September, the average freight rates for China's exports to the West and East Coast of the United States were 2010.26 and 2700.31 points, respectively, a decrease of 16.7% and 6.2% compared to the previous month.
4. Australian and New Zealand freight rates continue to adjust
The demand for various daily necessities in the local market has shown signs of slowing down on the Australia New Zealand route, and the supply and demand fundamentals are poor. There has been no rebound in transportation demand before the holiday. This month's market freight rates lack support and continue to adjust their trend. In September, the average freight rate index for China's exports to Australia and New Zealand was 2666.00 points, an average decrease of 7.4% compared to the previous month.
5. The South American market has experienced a significant decline
After the traditional peak season for transportation, the demand for transportation on South American routes is hovering at a low level. The destination economy has a weak economic foundation, and after the Federal Reserve continues to raise interest rates significantly, financial market volatility has increased, making it more susceptible to the impact of financial crises in the future. After the traditional transportation peak season, transportation demand continues to decline, and the supply-demand relationship is not good. This month, spot market booking prices continue to decline. In September, the average freight rate index for China's exports to South America was 1829.08 points, an average decrease of 23.5% compared to the previous month.
6. Japan's market slightly declines
In recent times, the local epidemic situation in Japan's air routes is still facing a relatively severe situation. Transportation demand is basically stable, and market freight rates have slightly decreased. In September, the average freight rate index for Chinese exports to Japan was 1161.96 points, a decrease of 1.7% compared to the previous month.
