China's export container transportation market analysis report for June 2024

In June 2024, China's export container transportation market continued to maintain an overall good market, transportation demand remained at a high level, supply and demand fundamentals were stable, and the freight rate of the ocean route market continued to rise, supporting the upward trend of the composite index. According to data released by the General Administration of Customs, China's exports in May 2024 increased by 7.6% year-on-year in US dollar terms, and the export growth rate continued to accelerate. China's exports remain stable and good, which will support the steady development of China's export consolidation market in the long run. In June 2024, the average of China's export container comprehensive freight index released by the Shanghai Shipping Exchange was 1,769.43 points, an average increase of 30.2% from the previous month; The Shanghai Composite Index of export containers, which reflects the spot market, averaged 3,438.50 points, up 30.1% from the average last month.

1, port container throughput continued to grow, ship leasing market rental increase

① In May 2024, China's major ports maintained a good operating situation, port container throughput continued to grow, and the throughput of coastal and inland ports continued to grow. According to statistics, the country's ports completed 28.81 million TEU of container throughput, up 8.1% from the same period last year. Among them, the container throughput of coastal ports was 25.18 million TEU, up 8.2% year on year; The inland port handled 3.63 million TEU of containers, up 8.0% year-on-year.

(2) The container chartering market continues to improve, and the market rents of various ship types continue to rise, and the increase is larger. According to Clarkson statistics, in June, 2,750 TEU, 4,400 TEU, 6,800 TEU and 9,000 TEU ship rentals increased by 43.5%, 40.9%, 29.6% and 49.2% respectively from the previous month.

2, European freight rates continue to rise

According to the data released by the European Economic Research Institute (ZEW), the eurozone ZEW economic climate index in June was 51.3, better than market expectations and the previous value, a new high since July 2021, the data shows that the European economy continues to maintain steady growth, which is conducive to the transport demand for European routes. However, the recent announcement by the European Union that it will impose tariffs on electric vehicles exported from China may trigger a trade dispute between China and Europe, and how it will affect the transportation demand of Asia-Europe routes in the future needs further attention. At present, the Asia-Europe route is faced with more risk factors, which may lead to greater uncertainty in the future transport market. This month, the transportation demand continued to be strong, the supply and demand relationship was good, and the market freight rate continued to rise sharply. In June, the average freight index of China's exports to Europe and the Mediterranean routes was 2607.88 points and 3123.84 points, respectively, up 34.9% and 23.1% from the previous month. Reflecting the spot market, the average freight rate of Shanghai port exports to Europe and the Mediterranean basic port market was 4,336 US dollars /TEU and 4,969 US dollars /TEU, respectively, up 32.7% and 18.0% from the previous month.

3, the North American market continued to rise

According to data released by the General Administration of Customs, in the first five months of 2024, the total value of trade between China and the United States was 1.87 trillion yuan, an increase of 2%. Among them, the export to the United States was 1.39 trillion yuan, up by 3.6 percent, and the trade surplus with the United States was 911.18 billion yuan, up by 7.2 percent. Data show that since 2024, although Sino-US trade has faced a complex situation, it has continued to maintain steady growth, which is conducive to the long-term stability of the North American route transportation market. This week, transport demand remained at a high level, the supply of capacity is still in a relatively tight situation, most flights are full, and the market freight rate continues to rise. In June, the average freight index of China's exports to the West and East routes was 1391.08 points and 1505.62 points, respectively, up 32.7% and 31.6% from the previous month.

4. The South American market continues to rise

South American route, the steady growth of transport demand, market capacity supply is relatively tight, supporting the spot market booking prices continue to rise. In June, the average freight index of China's exports to South America was 1522.99 points, an average increase of 35.9% from the previous month.

5. The freight rate of Bohong rises and then falls

Bohong route, the first half of the transportation demand continued to be stable and good, and the market freight rate remained rising. Entering the second half of the month, the lack of momentum for further growth of goods, supply and demand fundamentals began to weaken, and market freight rates fell from high levels. In June, the average freight index of China's export to Bohong route was 2235.93 points, an average increase of 28.7% from the previous month.

6. Japanese freight rates fell slightly

Japanese route, transport demand remained stable, market freight rates fell slightly. In June, the average freight index of China's export routes to Japan was 726.82 points, an average decline of 1.9% from the previous month.