Monthly Review of China's Export Container Transport Market (January 2025)

Source: Ministry of Transport

In January 2025, the Chinese export container transportation market remained generally stable, with the composite index continuing to rise steadily. As the traditional "Spring Festival" holiday approached, spot market booking prices declined in the second half of the month. According to data from the Shanghai Shipping Exchange, the average China Export Containerized Freight Index was 1,542.87 points, representing a 3.6% increase from the previous month. The Shanghai Export Containerized Freight Index, which reflects the spot market, averaged 2,243.03 points, a decrease of 5.5% compared to December.

1. Steady Growth in Port Container Throughput and Rising Ship Leasing Rates

① In December 2024, major Chinese ports maintained robust operations, with port container throughput showing steady growth throughout 2024.

② The container chartering market continued its recovery trend, with rental rates for various ship sizes increasing. According to Clarkson statistics, in January, rentals for 2,750 TEU, 4,400 TEU, 6,800 TEU, and 9,000 TEU vessels rose by 1.4%, 0.4%, 2.6%, and 3.9%, respectively, compared to the previous month.

2. European Freight Rates Adjusted Before the Holiday

According to data from the European Commission, the Eurozone Economic Sentiment Indicator stood at 93.7 in December, lower than market expectations and the lowest level since September 2023. With the Spring Festival holiday approaching, transport demand on European routes did not show significant growth, leading to weakened supply-demand fundamentals and continued adjustments in spot market booking prices. In January, the average freight indices for China's exports to Europe and the Mediterranean routes were 2,236.65 and 2,770.19 points, respectively, up 2.5% and 5.5% from the previous month. Reflecting the spot market, the average freight rates for Shanghai port exports to European and Mediterranean basic ports were $2,429/TEU and $3,440/TEU, down 18.4% and 8.4%, respectively, from the previous month.

3. Decline in the North American Market

Data from the US Institute of Supply Management showed that the US ISM Manufacturing Index in December was 49.3, slightly higher than the previous value but still below the 50-point threshold indicating contraction. Notably, the employment index fell to 45.3, marking the seventh consecutive month below the 50 mark, signaling ongoing slowdowns in the U.S. labor market and challenges to economic recovery. At the beginning of January, airlines implemented a technical rate increase, maintaining upward momentum in market rates. However, without significant growth in transport demand or strong supply-demand fundamentals, spot market booking prices began to decline. In January, the average freight indices for China's exports to the West Coast and East Coast of the United States were 1,166.65 points and 1,299.07 points, respectively, up 17.5% and 5.9% from the previous month.

4. Red Sea Market Fluctuations

In the first half of January, the transportation market remained at high levels. However, as the holiday approached, transport demand growth slowed, weakening supply-demand fundamentals and causing spot market booking prices to fall from their highs. In January, the average freight index for China's exports to the Red Sea route was 1,431.21 points, an increase of 0.4% from the previous month.

5. Stable Freight Rates for Australia and New Zealand Routes

The local demand for materials in Australia and New Zealand remained generally stable, resulting in a relatively stable transport market. Due to holiday factors, market freight rates declined in the second half of the month. In January, the average freight index for China's exports to Australia and New Zealand routes was 1,352.83 points, a decrease of 0.5% from the previous month.

6. Slight Increase in Japanese Market Rates

Transport demand on the Japan route remained generally stable, with market rates rising slightly. In January, the average freight index for China's exports to Japan was 971.72 points, an increase of 2.1% from the previous month.