Freight Rates

World Container Index (WCI) to launch in September

Drewry Shipping Consultants and The Cleartrade Exchange announced that the World Container Index (WCI), the first Europe-based assessment of container freight rates and index production, is scheduled for launch in September 2011. The index will be designed to provide a new and important facility for the global market to hedge their freight rate risk and see major improvements in forward price discovery through the container derivatives market. Significantly, the new index will be the first of its kind to report weekly freight rates on backhaul as well as headhaul routes and will provide increased efficiencies in hedging strategies for freight users dealing in bulk, commoditised and recovered cargoes. During July and August the index will  be made available to a small number of lead organisations for final testing and feedback prior to launch for trading on 1st September, 2011. Contracts will be available with at least one clearing house at or soon after the launch date and subscriptions to the index will be available from 22nd August, 2011. The WCI reports agreed spot container freight rates for major East West trade routes and consists of 11 route-specific indices representing individual shipping routes and a composite index. Route Assessments The WCI has also confirmed that it will collect and publish weekly market assessments for the following routes:

Lack of Committed Charters Cause of MOL's Losses

In his New Year message, Mitsui O.S.K. Lines President Muto predicts loss in 2013 of same magnitude as last year, suggests new business model. Excerpts from Mr. Muto's message follow: "The marine transport industry has faced a challenging external environment mainly due to economic slowdowns in Europe, the U.S. and China, the yen's appreciation, and high bunker fuel prices. This has certainly been a factor behind MOL's losses

Horizon Announces General Rate Increase for Hawaii Cargo

Horizon Lines, LLC announced that it will file a General Rate Increase with the Surface Transportation Board to raise its ocean freight rates for the company's Hawaii service effective January 2, 2006. The amount of increase to be filed varies depending on a number of factors, including rate basis of the ocean freight and the direction and mode of transport.

Panamax Slide Should Continue

Panamax owners are unlikely to experience any relief from the current slide in earnings until March. February load freight rates have fallen further as a result of reduced enquiry, most obviously in the Atlantic, for both grain and mineral Panamax loads. Brokers expect that this situation will continue until South American grain shipments emerge in March. The noticeable absence of Japanese charterers has undermined the already weaker Panamax grain trades in the Far East

P&O Nedlloyd 4Q Results

P&O Nedlloyd announced that it achieved an operating profit of $84 million in 4Q 2003, compared with an operating loss of $49 million in 4Q 2002. Driving the improved performance: average freight rates increased 16 percent over 2002, and volumes shipped were up 5 percent. Commenting on the future, the company sees a favorable trend in freight rates, and provided trade growth continues as in 2003, the outlook for the container shipping industry remains positive for 2004 although cost

Guide to Index-Linked Container Contracts Launched

Drewry and the World Container Index have published a White Paper that explains how index-linked contracts work, the first definitive guide on the subject since widespread adoption commenced two years ago. The White Paper, which is FREE to download from Drewry’s web site, examines the causes of recent container freight rate volatility and how index-linked contracts can help mitigate the impacts of such instability

Asian Panamax Rates Up Slightly

Asian Panamax freight rates for dry bulk cargo edged up slightly this week in slow trade due to New Year holidays, Reuters reported. But the outlook for the Panamax sector remained healthy as activity would pick up momentum after the holiday period and the arrival of new ships was unlikely to affect Panamax rates before April, brokers said. The freight rates for the heavy grain Panamax benchmark route, U.S. Gulf to Japan, were quoted higher at $22.493 a ton compared with $22

CP Ships Expects 1Q Results to Imrpove

CP Ships Limited announced that in the first quarter, overall volume was up 9% on first quarter last year and all market segments grew. Freight rates softened slightly, mostly due to seasonality. "The first quarter is traditionally a difficult one, but we expect to report quarterly results ahead of last year's and maintain our positive outlook for the year as a whole, despite continuing cost pressures," said CEO Ray Miles

Freight Rates Tumbling

According to a Jan. 10 report from Bloomberg, at a time when analysts anticipate record profits for the biggest mining companies and a third year of gains in commodity prices, shipping lines carrying raw materials are set for the lowest freight rates since 2002. Leasing costs for capesizes, 1,000-foot-long ships hauling iron ore and coal, will drop 34 percent to average $22,000 a day this year, according to the median in a Bloomberg survey of eight fund managers and analysts.

NOL Group: $254m 1Q Loss

High fuel costs, low freight rates conspire to create tough 1Q NOL Group, the Singapore-based container shipping and logistics company, reported a first quarter 2012 net loss of 254 million compared to a net loss of $10 million in the same period last year.  NOL said high fuel costs and low freight rates in container shipping affected first quarter 2012 performance.   NOL said that in the first quarter of 2012 it achieved about $100 million of cost savings under its ongoing