I. Tianjin Shipping Index (TSI)
In Week 42, 2022 (October 17 to October 21), the decline of the Tianjin Container Freight Index (TCI) slowed down, Tianjin Bulk Freight Index (TBI) rose sharply and then fell, Tianjin Domestic Container Freight Index (TDI) rose steadily, and the Tianjin Shipping Index (TSI) fluctuated in a narrow range, and closed at 1303.99 points on October 21, with a cumulative increase of 2.65 points (0.20%) compared with October 14 (the last release date of week 41). The trend is shown in the figure below:
The chart above shows the trends of TSI from October 10 to October 21. The value of TSI in Week 42 is as follows:
II. Tianjin Container Freight Index (TCI)
In Week 42, 2022 (October 17 to October 21), the trend of Tianjin Container Freight Index (TCI) is shown in the figure below:
In Week 42, the TCI fell slowly.
From October 17 to October 19 (Monday to Wednesday), the freight rates in European route, Mediterranean route, American route weakened slowly, the freight rates in South America West route and South America East route fluctuated and rose, the freight rates in Central and South American route rose first and then fell, the freight rates in the Persian Gulf continued to rise, and TCI fluctuated and fell, with a cumulative decrease of 10.16 points. From October 20 to October 21 (Thursday to Friday), the freight rates in European route and Mediterranean route fell slightly, the freight rates in other routes tended to stabilize, and the decline of TCI slowed down, with a cumulative decrease of 0.32%.
TCI finally closed at 1535.75 points, with a cumulative decrease of 15.13 points (0.98%) compared with October 14 (the last release day of week 41).
The TCI index value and several ups and downs on a day-on-day basis are as follows:
European/Mediterranean route The intensification of the geopolitical tension triggered the energy crisis, which led to a substantial increase in the demand for winter heating materials and clothing. However, the decline in overall consumer demand caused by high inflation continued, and the market shipping volume continued to show a trend that the peak season was not prosperous. This week, the freight rate continued the decline of last week, and the decline narrowed. This week, the index value of route from Tianjin to Europe, route from Tianjin to Mediterranean East and route from Tianjin to Mediterranean West respectively closed at 1269.44 points, 1337.60 points and 1742.68 points, down 3.10%, 4.47% and 1.88% compared with last weekend.
American route Shipping companies cut their shipping capacity this week, and the relationship between supply and demand in the market improved. The decline in freight rates slowed down significantly compared with the previous period. The index value of route from Tianjin to American West Coast and route from Tianjin to American East Coast respectively closed at 1304.59 points and 1799.39 points, down 2.30% and 1.76% respectively compared with last weekend.
South American route Freight rates were mixed. The scale of shipping capacity of the South America West route shrank, the market freight rate rose this week, and the index value closed at 1159.23 points, up 9.39% on a week-on-week basis. In contrast, for the South America East route and Central and South American route, major countries continued to tighten foreign exchange controls, local imports fell, and the market demand for spot booking was weak. The freight rate in the South America East route fell first and then rose, and the index value closed at 2494.35 points, up 1.21% on a week-on-week basis; The freight rate in Central and South American route rose first and then fell, the index closed at 1978.63 points, down 0.07% on a week-on-week basis.
Persian Gulf route Since September, due to the fierce competition for the supply of goods, the freight rate of this route nearly halved. In this week, some shipping companies implemented the plan to increase the freight rate, and the freight rates rose significantly. The index value closed at 785.57 points, up 7.95% compared with last weekend.
III. Tianjin Bulk Freight Index (TBI)
In Week 42, 2022 (October 17 to October 21), the trend of Tianjin Bulk Freight Index (TBI) is as follows:
In Week 42, the Tianjin Bulk Freight Index (TBI) rose first and then fell, and remained stable generally.
From October 17 to October 19 (Monday to Wednesday), the freight rate in the coal market rose slightly, the freight rate in the metal ore market fluctuated and rose, and the freight rate in the grain market fluctuated narrowly. TBI rose slightly for three consecutive release days, with a cumulative increase of 0.88%.
From October 20 to October 21 (Thursday to Friday), the freight rate in the grain market fluctuated and rose, the freight rate in the coal market fell slightly, and the freight rate in the metal ore market fell significantly, dragging TBI down continuously and finally closed at 1154.91 points, down 1.87 points (0.16%) compared with October 14 (the last release day of the week 41).
The TBI index value and several ups and downs on a day-on-day basis are as follows:
TBCI rose continuously at the beginning of the week, but fell slightly at the end of the week. The index finally closed at 916.11 points, with a cumulative increase of 5.79 points (0.64%) compared with October 14 (the last release day of week 41). In the supramax vessel market, a small amount of Indonesian coal cargoes supported the market, and the index value of the route from Indonesia to Qingdao rose by 1.49% this week. In terms of the capesize ships market, the freight rate of route from Hay Point to Qingdao first rose and then fell this week, basically flat compared with the weekend of previous week.
TBGI fluctuated and rose, and the index value finally closed at 1083.34 points, with a cumulative increase of 3.91 points (0.36%) compared with October 14 (the last release day of week 41). There were few cargoes in the South American market, and the index value of the route from South America to Tianjin fell by 0.50% this week. In contrast, the Pacific market transactions tended to be good. The index value of the route from American West Coast to Tianjin rose by 1.25% this week, and the index value of the route from U.S. Gulf to Tianjin also rose by 0.90% this week.
TBMI continued its rising trend at the beginning of the week, and fell significantly at the end of the week. The index value finally closed at 1465.28 points, with a cumulative decrease of 15.31points (1.03%) compared with October 14 (the last release day of week 41). In terms of iron ore, the increase of inquiries from Australian miners at the beginning of the week drove the market freight rate to continue to rise, while the market activity declined at the end of the week. The index value of the route from West Australia to Northern China fell back, but it still rose by 0.10% this week. In contrast, the demand for long-distance mine transportation was weak, and the index value of the route from Brazil to Tianjin fell continuously this week, with a cumulative decrease of 5.06%. In terms of nickel ore, the demand for nickel ore transportation was weak, and the market shipping capacity was abundant. The index value of the route from Surigao to Tianjin fell by 0.63% this week.
IV. Tianjin Domestic Container Freight Index (TDI)
In Week 42, 2022 (October 17 to October 21), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the figure below:
In week 42, the Tianjin Domestic Container Freight Index (TDI) continued to rise.
On October 17 (Monday), the index value in the outward market continued the upward trend of the previous week, and the index value in the inward market stabilized. The TDI rose by 0.49% on a day-on-day basis, and stabilized during the following two release days. From October 20 to October 21 (Thursday to Friday), the increase of index value in the outward market expanded slightly, driving the TDI to rise significantly, and finally closed at 1565.54 points, with a cumulative increase of 31.95 points (2.08%) compared with October 14 (the last release day of week 41).
The TDI index value and several ups and downs on a day-on-day basis are as follows:
The Tianjin Domestic Container Outward Freight Index (TDOI) kept rising and closed at 1412.25 points on October 21, with a cumulative increase of 63.89 points (4.74%) compared with October 14. The Tianjin outbound route to South China and Fujian continued the situation of cabin explosion of the previous week, and the market freight rate further rose. The index value of the route from Tianjin to Guangzhou and the route from Tianjin to Quanzhou/Xiamen respectively closed at 1394.33 points and 1586.70 points, up 5.97% and 1.47% on a week-on-week basis. The freight rate of the route from Tianjin to Shanghai remained stable, and the index value closed at 1257.69 points, flat on a week-on-week basis. According to the data of industry institutions, the social stock of major steel products nationwide was 10.3482 million tons, 433,200 tons less than last week and 536,100 tons less than last month.
The Tianjin Domestic Container Inward Freight Index (TDII) rose slightly, closing at 1718.82 points on October 21, flat compared with October 14. This week, the freight rates of Tianjin's inward domestic trade container transport market remained stable. The freight rate in route from Shanghai to Tianjin and route from Quanzhou/Xiamen to Tianjin recovered to be stable, with the index value closing at 1,272.06 points and 1,378.62 points respectively, both unchanged at 0.68% on a week-on-week basis. The cargo volume of the route from Guangzhou to Tianjin decreased, and the market freight rate remained stable. The index value closed at 1865.92 points, flat on a week-on-week basis.
(The analysis report is for reference only and at your own risk)
