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General Rate

Global Shipping in Doldrums

Photo: Maersk Line

 Wells Fargo Securities says that headwinds face global shipping industry and the continued overcapacity means freight rate gains are less likely to stick.   "Given the continued overcapacity headwinds and easing containerized trade demand, we believe these freight rate gains are less likely to stick, and we expect rates to remain under pressure as we approach the slack winter season, particularly following a muted peak season," says a report from Wells Fargo Securities, written by Michael Webber that appeared in the Forbes.   Container Freight Rates Get Boost Amid November General Rate Increases, Will They Stick? Last week, the Shanghai Containerized Freight Index (SCFI) increased by 41.1% wk/wk (week-over-week) to $759/TEU (twenty foot equivalent unit), marking the highest levels reached since early August (although the SCFI is still down 30% year-to-date).    That said, we note that the bulk of these gains were driven by the latest round of general rate increases (GRIs) across the Container Line group, with Liners implementing rate hikes ranging from $600-$1,200/TEU along major trade lanes, which helped to drive the Shanghai-Europe and Shanghai-Mediterranean indexes up by 328% (to $988/TEU) and 298% (to $804/TEU), respectively.  


General Rate Increases, Transatlantic Trade

Since rates are at an unsustainable level in the transatlantic trade, Maersk Line announced a general rate increase effective 1 September 2009. The company said the rate increase is necessary to continue to operate its services with the same level of reliability. The filed increase is as follows: •    $400 per 20 ft container •    $500 per 40 ft/high cube/45 ft container


MOL Announces GRI

MOL (Mitsui OSK Line) said it plans a general rate increase for all cargo moving southbound from Europe North Continent and Mediterranean to West Africa. The new rate of $219.4 per TEU will become effective 15 October 2009. The GRI is applicable to all commodities and equipment, including reefer containers. (www.MOLpower.com)


Rate Increase, Transatlantic Trade

As a result of market instability in the transatlantic trade, Maersk Line is announcing the following general rate increase, effective 1 April 2009. The filed increases are as follows between Northern Europe and the East Coast and Gulf Coast of North America: •    $160 per 20 ft dry container •    $220 per 40 ft container/high cube/45 ft container/reefer The filed increases are as follows between Northern Europe and the West Coast of North


World’s Dry Cargo Transport Rate Nosedives

Pic: Maersk Line

 The recession, gradually engulfing the world commodity production, has become apparent amid the dynamics of rates for international dry cargo transportation, reports abc.az   The key shipping freight rates for transporting containers from ports in Asia to Northern Europe fell by 26.7 percent to $469 per 20-foot container (TEU), last Friday.    It was the third consecutive week of falling freight rates on the world’s busiest route and rates are now nearly 60


Asia–U.S. Container Lines to Introduce Freight Increase

TSA Containership: Photo Evergreen Line

The Transpacific Stabilization Agreement (TSA) informs that member container shipping lines are proposing an across-the board general rate increase (GRI) of at least US$600 per 40-foot container (FEU) to all destinations, effective September 1, 2014 Carriers had filed increases in their individual tariffs in late July and subsequently began notifying customers directly. TSA lines said the planned GRI follows strong cargo demand and high vessel utilization levels in recent months


Container Industry Stuck in a Vicious Cycle

Photo: Maersk

The industry is stuck in a vicious cycle, Drewry reports – although new ships may give carriers lower slot costs, the supply/demand dynamics are out of kilter and freight rates remain very volatile. Drewry Maritime Research’s 1Q14 Container Forecaster report highlights that the industry remains in an extended down cycle. This is being accentuated and extended by the constant delivery of new ships. The global cascade is now hurting the balance of the north/south trades.


Dry Bulk: Less Pain, Not Much Gain

© Volodymyr Kyrylyuk/ Adobe Stock

The dry bulk market’s strong end to 2016 is unlikely to last long into 2017, according to the latest research from Maritime Strategies International. In its latest quarterly dry bulk market report*, MSI predicts a depressed year for rates in 2017, a year marked by multiple risks to recovery.   Stronger freight markets in Q4 2016 had been broadly expected by MSI, albeit for slightly different reasons. While iron ore trade undershot its expectations


Maersk Rate Hikes Hitting the High Notes

Do we sense a touch of desperation from the executive corridors of Maersk Line as the Triple-E delivery dates approach?    Maersk Line boss Nils Smedegaard Andersen was in a confident mood after his carrier posted a decent $204 million profit in the first quarter. Making a profit when Asia-Europe is a disaster and many other carriers are wallowing in red ink is impressive enough, but the Maersk CEO raised eyebrows when he addressed the rates issue.


Bahri Profits Fall

Photo: Bahri

 National Shipping Company of Saudi Arabia (Bahri),  the exclusive oil shipper for Saudi Aramco, made a net profit of 327.8 million riyals ($87.4 million) for the three months to Dec. 31. That compares with 566.4 million riyals in the fourth quarter of 2015.   For the year ending December 31, 2016, Bahri has reported a net profit of SR1.76 billion ($469.3 million).  The company registered net revenue of SR6.78 billion ($1.8 billion), and earnings per share (EPS) of SR4


Higher Shipping Rates Boost Baltic Index

© Volodymyr Kyrylyuk / Adobe Stock

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Wednesday due to strengthening rates across all vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels


Nakilat Profit slips

Nakilat announced its financial results for the year ended 31 December 2016, with a net profit of QR 955 million achieved compared to QR 984 million in 2015. The earnings per share attained in 2016 was QR 1.72 compared to QR 1.77 in the same period last year


Oversupply Pressure on LPG Shipping Rates

Graph: Drewry Shipping Consultants Limited

 The LPG shipping trade will continue to grow at a healthy pace on the back of strong Asian demand, but fleet growth will outpace it, keeping rates under pressure in 2017, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.  


Moody's Upgrades HMM Credit Rating

Photo: Hyundai Merchant Marine

 South Korean Container carrier Hyundai Merchant Marine (HMM), which collaborates with the 2M alliance, has had its rating improved from the default rating D to instead BB, informs the carrier.   "Korea Investor Service (a Moody’s Affiliate)  has upgraded Hyundai


Wilhelmsen Reports Positive Results

Photo: Wilh. Wilhelmsen ASA

 2016 ended for Wilh. Wilhelmsen with an improvement in transported volumes, which had a positive effect on total income for the fourth quarter.   Adjusted for non-recurring items, WWASA also recorded an uplift in operating profit


Asia Dry Bulk-Capesize Rates could Diverge on Market Conditions

File Image (CREDIT: AdobeStock)

Australia-China rates could climb on improved weather. Brazil-China rates to hold steady, fall on lack of charters.   Freight rates for large capesize dry cargo vessels on key Asian routes could diverge next week with rates from Australia to China rebounding on improved weather


Has the Asian LR Tanker Market Hit Bottom?

© Shimpei Fukui / Adobe Stock

The Long Range (LR) 2 tanker market in the East of Suez has been languishing in the doldrums for almost two weeks. LR2 rates on the AG/Japan route, basis 75 kt, nosedived from w120 at the beginning of January to current levels of w80. Earnings for a round voyage on the benchmark route are hovering


New Total Lubmarine Head Shares His Vision

Robert Joore (Photo: Total Lubmarine)

Robert Joore, the new General Manager of marine lubricants supplier Total Lubmarine, has laid out his vision for the company, focusing on developing a range of innovative solutions for ship operators operating in poor freight markets in a low-sulphur era.   


Asia Tankers-VLCC Rates to Hold Steady

File image of a typical VLCC underway (Credit: EuroNav)

25 MidEast cargoes still to be fixed; VLCC rates fall to 4-month low.   Freight rates for very large crude carriers (VLCCs), which hit a four-month low on Thursday, are likely to hold around current levels or nudge higher as charterers fix the final charters in February's loading


Asia Dry Bulk-Capesize Rates to Hold Steady

Floor may have been reached on Western Australia-China rates; dry cargo demand could fall 5.4 pct in first quarter.   Freight rates for large capesize dry cargo vessels on key Asian routes are likely to hold around the current levels next week on ample tonnage supply even as chartering


Vessel Oversupply to Continue in Chemical Shipping

Graph: Drewry Shipping Consultants Limited

 Chemical shipping vessel supply on major routes has been in surplus with many newbuilding deliveries and swing tankers flooding the market. As a result, freight rates on long-haul routes will continue to be challenged by surplus large vessels over the next two years


Strong Fleet Growth to Keep LNG Shipping Rates in Check

Graph: Drewry Shipping Consultants Limited

2017 will be a tough year for LNG shipowners as rates are expected to remain under pressure, according to the latest edition of the LNG Forecaster report published by global shipping consultancy Drewry.   This year has started on a positive note for LNG shipowners as spot rates have firmed


Navios Maritime Midstream Posts 4Q Profit

Image: Navios Midstream Partners L.P

 Maritime Midstream Partners LP (NAP), an owner and operator of tanker vessels, has reported fourth-quarter earnings of $6 million. On a per-share basis, the company has a net income of 28 cents.   The operator of contracted crude oil tankers posted revenue of $22


Container lines earned $42 less per TEU

Notes US Trade based on USD per forty foot unit -FEU

The container shipping lines received an average rate 7% (USD 42) lower in 2016 than in 2015, if they operated in the spot market on all Shanghai Containerized Freight Index (SCFI) trade routes. This has primarily been due to the devastating low rates received in the first half of 2016


Teekay LNG Completes Norwegian Bond Issuance

Oak Spirit LNG carrier. Photo: Teekay LNG Partners

 Teekay LNG Partners has successfully issued NOK 300 million (USD 35 million) in new senior unsecured bonds through an add-on to its existing Norwegian bonds due in October 2021.    All payments will be swapped into a US dollar fixed-rate coupon of approximately 7.75%.  






 
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