THE China Containerised Freight Index (CCFI) compiled by Shanghai Shipping Exchange, was 1,207.96, down, or 0.3 per cent, from 1,211.79 in
previous week, indicating a downturn in China exports.

Its New Shanghai Containerised Freight Index (New SCFI) also declined 13.46 points from 1,523.6 to 1,513.6 last week.

Cargo volume to Europe has remained stable but the growth is slowing down. Most carriers increased capacity on European routes in July, resulting in a slight drop in freight rates and the cancellation of peak season surcharges in August.

A report from Xinhua stated that since the increases of freight rate for European services were significant, the overall freight rate level is still at a high point now despite a sign of falling. The fluctuations of the exchange rate of euro have discouraged the importers to place substantial and long-term orders, said the report.

With the expected shrinking demand in the fourth quarter, the freight rate might drop if the capacity will not be cut then, it said.

North American routes show a better picture. Since it is the peak season for consignment, cargo volume has remained steady with 95 per cent of capacity loaded for most vessels. The growth of cargo volume in south China is better than in eastern and northern China.

Basic market rate from Shanghai to the west coast of US was US$2.76 per TEU and to east coast was $4.15 per FEU.

Cargo volume to Japan showed a slight decrease too. CCFI figure for Japan service was 1,207.96, down 0.7 per cent from 742.68 in previous week.