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According to the Securities Times report, on October 8, Shanghai International Shipping Research Center released the report on China's shipping boom in the third quarter of 2016. The report shows that the overall operating conditions of Chinese shipping companies are still severe. The China Shipping Climate Index is 96.00 points, although it is nearly one year. The highest level since the beginning, but still in a weak recession. China's shipping confidence index is 64.69 points, still in a relatively sluggish range. However, the operation status of container shipping companies and port enterprises has taken the lead in warming up, and they have entered the boom zone by the boundary of the economy.

Looking forward to the fourth quarter, the report expects that container shipping companies and Chinese port companies are expected to remain in the boom zone.

The report also believes that on the afternoon of August 31, Hanjin Shipping, Korea's largest shipping company, filed a bankruptcy protection application with the Central District Court of Seoul, South Korea. The report believes that this has a certain impact on the global shipping pattern and container shipping prices. According to China's shipping climate survey, about 37.5% of container shipping companies choose “not much change”; about 63% of container shipping companies believe that freight rates will “rise 5%-10%” or “up 10% -15” %".

Container shipping recovery

According to the report, in the third quarter of 2016, the ship transport enterprise's prosperity index was 97.94 points, which was in a weak recession; the ship transport enterprise confidence index was 55.49 points, which was in a relatively sluggish range. The willingness of the shipping company to invest in ships continued to decline, and the intensity of capacity control was generally increased. The freight rate of enterprises has risen from the previous quarter. At the same time, due to factors such as the decline in operating costs, the profitability of shipping companies has greatly improved. According to China's shipping climate survey, the profitability index of the shipping company in the third quarter of 2016 was 118.4 points, a significant increase of 24.67 points from the previous quarter, and directly entered the relative economic range.

In the third quarter, the container shipping company's prosperity index was 112.25 points, and it has returned to the boom zone for the first time since the fourth quarter of 2014. In addition to indicators such as corporate financing and willingness to invest in shipping capacity, the main financial indicators such as freight revenue, corporate profits, loan liabilities and working capital of container shipping companies are in the booming range, and the overall operating status of container shipping companies is picking up. However, container shipping entrepreneurs are generally cautious about the overall situation of the industry. The confidence index of container shipping enterprises is 83.75 points, which is in a relatively sluggish range.

During the reporting period, the prosperity index of dry bulk shipping enterprises was 97.06 points, a sharp increase of 20.39 points from the previous quarter, and quickly rose to a weak recession. The freight income of enterprises has increased significantly, the operating costs have further declined, and the profitability of enterprises has greatly improved. According to the survey of China's shipping economy, the profitability index of dry bulk shipping companies rose sharply to 160.39 points, and entered a strong boom. However, although the control of the capacity of dry bulk shipping companies continues to increase, the ship turnover rate continues to decline, and the confidence of dry bulk shipping entrepreneurs continues to fall. In the third quarter of 2016, the confidence index of dry bulk shipping companies was 14.02 points, once again falling into a severe recession.

In addition, driven by indicators such as throughput and berth utilization, China's port enterprises' economic conditions have once again entered the boom zone. In the third quarter of 2016, the port enterprises' prosperity index was 103.47 points, slightly rising to the boom zone. However, the port charges have been declining, the operating costs have continued to rise, and the business pressure faced by enterprises has also increased. Affected by this, the confidence index of Chinese port enterprises is 82.22 points, which is still in a relatively sluggish range. Port entrepreneurs are still cautious about the overall situation of the industry.

Container and port companies are expected to continue to boom in the fourth quarter

Looking forward to the fourth quarter of 2016, the report expects that the overall operating conditions of Chinese shipping companies will still not improve. According to China's shipping climate survey, China's shipping climate index is expected to be 98.11 points, still maintaining a weak recession. China's shipping confidence index is expected to be 64.14 points, still in a relatively sluggish range. Among them, container shipping companies and Chinese port companies are expected to remain in the boom zone.

The operating status of shipping companies will deteriorate slightly. According to China's shipping climate survey, in the fourth quarter of 2016, the shipping industry's prosperity index is expected to be 95.89 points, still in a weak recession. The Ship Transportation Enterprise Confidence Index is expected to be 56.60 points, still in a heavier recession. Among them, the container shipping enterprises are expected to remain in the boom zone. In the fourth quarter of 2016, the container shipping company's prosperity index is expected to be 100.88 points, although it is down 11.38 points compared with the current quarter, but still stays above the boom line. Operating indicators such as cabin utilization, freight income, corporate profits and liquidity continued to improve. Among them, the corporate profitability index was 116.25 points, which was in a relative boom.

The operating conditions of port enterprises continued to pick up. According to the China Shipping Climate Survey, in the fourth quarter of 2016, the China Port Enterprise Climate Index is expected to be 102.83 points, still in the boom zone. Important operational indicators such as throughput, berth utilization, profitability and liquidity of Chinese port companies are still improving, but there is a certain sign of weakening towards good strength. Affected by this, the China Port Enterprise Confidence Index is expected to be 75.69 points, falling to a relatively sluggish range.

The report also believes that the domestic VGM charging standard is slightly higher: since the container was re-regulated (VGM) on July 1, 2016, all ports have begun to charge container weighing. According to an incomplete survey conducted by the Shanghai International Shipping Research Center, 43.75% of the companies reported that the region with the highest container weighing charges encountered worldwide (including Hong Kong), and 6.25% of the companies reported that they are global The area of the container that has the highest weighing rate for containers is Singapore. The liner companies generally believe that Japan, South Korea, New York and Rotterdam have relatively low weighing service fees.

Source: China Water Transport Network