Asian Market, Fuel Prices Drive Freight Rates in Valenciaport
The Valencia Containerized Freight Index (VCFI) of December experienced a growth of 4.19% with respect to the previous month, confirming the trend of the last five months of the year of increased freight rates. The high demand for traffic with China and the rise in fuel prices have played a major role in this increase. Thus, the VCFI as a thermometer of the evolution of maritime transport prices is demonstrating the recovery of economic activity. Thus, freight rates end 2020 with a new all-time high of 1…
Suez Canal Ship Transits Rise Amid COVID-19
Transits through the Suez Canal, the beating heart of the Egyptian economy, have stayed remarkably resilient to the fallout of the COVID-19 pandemic if judging by total transits of the three commercial shipping sectors which are up 8% year-on-year. This is despite bleak economic growth prospects world-wide following the pandemic, and highlights that shipping remains the backbone of the global economy.It is often said that a picture says more than 1,000 words, but 6,166 ship transits in the Suez Canal can certainly also tell an interesting tale.
Shipping Not Immune to a Pandemic -BIMCO
The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…
US Retailers Face $700 Mln Hit as Virus Disrupts Shipping
U.S. retailers face an estimated $700 million sales hit from the coronavirus and some shipping lines are sending vessels to retrieve empty cargo containers from Los Angeles to prevent further supply disruptions.The extended shutdown of factories in China caused by the virus, travel restrictions on workers and canceled sailings by shipping lines have thrown off the movement of containers, resulting in a surplus at the Port of Los Angeles and a shortage in Germany.U.S. retailers'…
Global Container Demand to Grow by 1-3% in 2020
For 2020, global container demand is projected to grow by 1-3%, as per forecast by A.P. Moller - Maersk.The continued weak global sentiment above all in the manufacturing sector reduces the likelihood of a material growth pick-up in 2020, although sentiment brightened a bit at the end of 2019, and some improvement can be expected on the back of stabilizing inventory dynamics, said the shipping giant.Aside from the cyclical slowing of the global economy, substantial risk to global container demand comes from the effectiveness of fiscal and monetary policy in major economies…
Coronavirus Disrupts Global Container Shipping
China's fast-spreading coronavirus is throwing the global container shipping trade out of sync, with lines re-routing cargoes and reducing calls to Chinese ports, setting the scene for months of delivery delays ahead, industry sources said.The spread of the deadly virus has shut down cities and factories in China and disrupted global air travel.China's decision to extend its Lunar New Year holiday period until Feb. 10 has compounded logistical complications, despite its ports staying open.
CMA CGM to Raise $2bn Via Selling Terminal, Ships
French container shipping giant CMA CGM plans to sell selected port terminals, ships and other assets to raise roughly $2 billion to finance its acquisition of CEVA Logistics, according to Reuters.Chinese state-owned conglomerate China Merchants Port has entered into a Memorandum of Agreement (MOA) with CMA CGM to acquire interests in a portfolio of 10 terminals from the French container line and its affiliates via Terminal Link for a total consideration of $955 million.As part of the deal…
Evergreen Orders Ten Ships
Taiwanese shipping line Evergreen has confirmed its plans to build a total of ten 23,000 TEU containerships.According to a stock exchange filing, the new vessels would be built at three shipyards in South Korea and China.According to the reports from the South China Morning Post, the enormous order will cost Evergreen anywhere between US$1.4 billion and US$1.6 billion. It is estimated that each vessel will cost between $140 million and $160 million.The new vessels could see Evergreen become the sixth biggest carrier line in the world…
Yang Ming Reports Net Loss of $41mln in Q2
Taiwanese ocean shipping company Yang Ming Marine Transport Corporation reported a consolidated revenues of about NTD 40.4 billion (USD 1.3 billion) for the second quarter of 2019, up 20.24% compared to the same period of prior year.Business volumes increased by 5% year-on-year to 1.35 million TEUs. Net loss for second quarter of the year was NTD 1.27 billion (USD 40.99 million).Meanwhile, Yang Ming’s consolidated revenues for the first half of 2019 rose by 16.77% compared with the same period in the previous year to NTD 75.48 billion (USD 2.44 billion)…
Boxship Operators Opt for Navis Loading Computers
Twenty newly built container vessels in the size ranging from feeder segment 2,300 TEU to 15,100 TEU have been selected to be equipped with MACS3.Oakland, CA and Flensburg, Germany—July 2nd, 2019—Navis, the leading provider of maritime software solutions for efficient and compliant cargo and vessel performance, has announced that it has been selected as a partner for liner operator, Yang Ming and ship owner and ship manager ChinaNavigation and Eastern Pacific. Through this partnership…
Cosco Eyes PIL Takeover
After buying several container factories from its smaller competitor Singapore-based shipping company Pacific International Lines (PIL), China’s Cosco Shipping Holdings Co. is eyeing it as a potential takeover target.The Chinese state-run ocean carrier had bought part of debt-ridden PIL’s container-manufacturing business, and executives at the Chinese carrier believe they could wrap up a deal for the entire business if family-owned PIL’s owners decide to sell, reported WSJ.Cosco…
Yang Ming Reports $219mln Loss for 2018
Taiwanese global shipping and logistics services company Yang Ming Marine Transportation Corp. it had a net loss of $218.5 million in 2018, with operating results significantly impacted by higher fuel prices.According to a stock exchange annoucement from the ocean shipping company based in Keelung, its consolidated revenues of 2018 totaled NTD 141.83 billion (USD 4.70 billion), up 8.21 % compared with NTD 131.08 billion (USD 4.35 billion) in revenue from previous year.Volumes in 2018 increased to 5…
Mega Ships Affect Freight Rates: Xeneta
Short-term container rates on the China Main ports to North Europe Main ports have seen a slight drop since the beginning of the year. However, compared to Spring and Autumn 2018, overall the industry sees an increase, said a report from Xeneta, the ocean freight price benchmarking and market intelligence platform transforming the shipping and logistics industry.Xeneta reports rates on the up, with February 7, 2019 ticking in at USD1700 market average rate for a 40' box. Also, bunker prices are not as outrageous as before.
Container Shipping Bankruptcy Lends Insight on Potential Fallout from Trade War
Global trade tensions have captured headlines in recent months, as the imposition of a series of tariffs and counter-tariffs by various global trade counterparts has raised questions about the possibility of a trade war. Such development could potentially have an impact on global trade flows, and, consequently, the companies which facilitate international movement of goods.Though the situation is still developing and the final impact is uncertain, Gregory Draco, the Chief U.S. Economist at Oxford, predicted in July that the tariffs would create an 0.1 percent to 0.2 percent drag on U.S. GDP.
Yang Ming Sinks into Red
Taiwanese ocean carrier Yang Ming Marine Transport Corporation (Yang Ming) registered a net loss of NTD3.81 billion (USD 129.1 million) for Q2.However, the Q2 consolidated revenues total NTD33.6 billion (USD1.14 billion) was up 1.12% from the same period in the previous year. The business volume of 1.29 million TEUs rose 11.84% year-on-year.In the meantime, for the first half of 2018, Yang Ming’s consolidated revenues totaled NTD64.6 billion (USD2.19 billion), up 1.81% compared with the same period in the previous year.
Boxships Buffeted by Competing Calamities
Overcapacity, Fleet Supply, Weakened Earnings, Consolidation – and now – fears of trade wars fuel further uncertainties for an already unsteady boxship climate. MLPro’s Barry Parker digs in to get to the bottom of all of it.The report season for 2018 Q1 corporate results saw an “earnings miss” (reported earnings below consensus forecasts of analysts) for the bellwether of listed container equities, A.P. Moller (APM), with its largest portfolio holding being Maersk Line. In a media telephone interview…
King Abdullah Port 8th Fastest Growing Port in the World
King Abdullah Port landed the eighth spot among the world’s fastest growing ports for 2017, according to Alphaliner, the global leader in analyzing maritime transport data, port capabilities and the future of vessels and shipping route development. The new ranking comes after King Abdullah Port had previously announced a 21% increase in its annual throughput in 2017, making it the second largest port in the Kingdom in terms of container handling. In a related context, King Abdullah Port moved up to 87th place among the world’s 100 biggest container ports for 2017, after ranking 98th in 2016.
INTTRA Expands Carrier Network
INTTRA announced significant growth in its carrier network with the recent addition of four new carriers, including Evergreen Marine Corporation, one of the largest container fleets in the world. The continuing growth of INTTRA's carrier network signals the rapid adoption of digitalization across the industry. More than 60 carriers, including all of the top 10, are INTTRA customers. "2017 was a tremendous year for INTTRA, with container orders growing by 12%, and the company processing 45 million container orders on its platform," said John Fay, CEO of INTTRA.
INTTRA Grows Container Orders to 45 Million
INTTRA, a neutral electronic transaction platform, software and information provider at the center of the ocean shipping industry, today announced significant growth in its carrier network with the recent addition of four new carriers, including Evergreen Marine Corporation, one of the largest container fleets in the world. The continuing growth of INTTRA's carrier network signals the rapid adoption of digitalization across the industry. More than 60 carriers, including all of the top 10, are INTTRA customers*.
Hyundai Merchant Marine’s Expansion Plans: Drewry
Korean carrier Hyundai Merchant Marine (HMM)’s expansion plans are incompatible with market stability. Will it settle for more limited ambitions? An Analysis by Drewry. South Korean carrier Hyundai Merchant Marine (HMM) is back in the news with an impending order for as many as 14 Ultra Large Container Vessels (ULCV) of 22,000 teu and for its intriguing re-entrance into the Asia-Europe market as a vessel provider, with reports suggesting a new standalone service called Asia Europe Express (AEX) using 10 Classic Panamax ships of 4,700 teu will commence in April.
Container Fleets & Demand Growing in Step -BIMCO
For 2018, the world containership fleet is expected to grow in step with global demand, according to BIMCO’s latest container shipping market outlook. Having experienced falling freight rates from August to year-end in 2017, most liner companies were successful in pushing rates higher in early January 2018. Most of them managed to hold onto most of the gains they achieved, considering October and November were challenging in terms of very low demand growth. The weak demand came from the Far East to Europe trade, and on the Intra-Asian transport.
Maersk joins New York Shipping Exchange
Danish container shipping giant Maersk Line has followed in the footsteps of its counterparts CMA CGM and Hapag-Lloyd and joined the New York Shipping Exchange (NYSHEX) as its founding member. Along with Hapag Lloyd, CMA CGM, MOL, OOCL, and COSCO, Maersk Line will begin posting digital contract offers for the Transpacific Westbound trade on the exchange as early as March of this year. "This marks a significant milestone for us as we now have added six of the top global ocean carriers as members in the last nine months," says a statement from NYSHEX.
Maersk Completes Hamburg Süd Acquisition
The transaction between Oetker Group and Maersk Line for Maersk Line's acquisition of Hamburg Süd, the German container line, was closed on 30 November 2017. On 1 December 2016, Maersk Line announced its intention to acquire Hamburg Süd. The acquisition triggered a regulatory approval process in 23 jurisdictions which was successfully concluded on Tuesday 28 November with the approval of the acquisition by the Korea Fair Trade Commission. "With the final approval of the acquisition…
Cosco Overtakes Maersk as Top Box Shipper
The Chinese container shipping company Cosco exceeded Maersk Line as the shipping company handling the most containers in the third quarter, Reuters reported quoting data from shipping consultancy Alphaliner. However, this is mainly because the Maersk group was hit by a hacker attack, reports the Alphaliner analysis house. Cosco increased the handled container volume by 23 percent in Q3 to 5.49 million TEU (20-foot container units) and thus exceeded Maersk Line's 5.26 million TEU. It was unclear how much of COSCO’s activity related to inter-Chinese trade.
Better Times for Box Carriers Ahead?
In the choppy wake of the liner alliance reshuffle, industry consolidation and the (long awaited) boost from expanded Panama Canal traffic, a glimmer of hope appears. The situation for the liner carriers has clearly improved since the doldrums of 2016. Consultants Drewry were estimating that container carriers could book profits of $5 billion in 2017 – coming on the heels of half a decade of losses. In early 2017, improvements were seen in the market compared to the previous two years…
CMIT Welcomes Vietnam PM
Vietnam’s Prime Minister Nguyen Xuan Phuc visited Cai Mep International Terminal (CMIT) on July 21st, becoming the first container terminal in the Cai Mep area, part of Saigon Port, to receive the Vietnamese Head of State. CMIT is a joint venture between APM Terminals, which holds a 49% share, Vietnam National Shipping Lines, with a 36% share, and Saigon Port, with a 15% share. Prime Minister Phuc was welcomed by CMIT acting Managing director Nguyen Xuan Ky, who expressed the facility’s appreciation to the Vietnamese national and provincial governments…