Marine link
 

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.


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.


General Maritime to buy Navig8 Crude Tanker

General Maritime Corp, which operates crude oil tankers, will acquire Navig8 Crude Tankers Inc in a stock-for-stock deal, the two companies said in a statement.   A newly formed unit of General Maritime will acquire all of Navig8 Crude's common shares to form Gener8 Maritime Inc.   Tanker companies, struggling to cope with poor charter rates, are teaming up to improve efficiency and reduce operating costs, besides adding to their fleets.  


Scorpio Bulkers in Limbo Until New & Chartered-In Ships Contribute

Bulk carrier: Image courtesy of Scorpio Bulkers

Scorpio Bulkers, headquartered in Monaco, report its results for the three months ended December 31, 2013 and for the period from March 20, 2013 (date of inception) to December 31, 2013. Extracts follow: Results for the three months ended December 31, 2013 For the three months ended December 31, 2013, the Company had a net loss of $3.6 million, or $0.04 basic and diluted loss per share. During this period the Company had no vessels in operation


Arctic Sea Ice Melt Continues

Average sea surface temperature measured by satellites using thermal emission sensors, which produce global data adjusted after comparison with ship and buoy data, and sea ice concentration derived from NSIDC near-real-time data for August 7, 2016. Also shown are drifting buoy temperatures at the ocean surface (colored circles); gray circles indicate that temperature data from the buoys are not available. (Credit: M. Steele, Polar Science Center/University of Washington)

As of August 14, Arctic sea ice extent is tracking third lowest in the satellite record, according to the National Snow & Ice Data Center (NSIDC). The southern route through the Northwest Passage appears to be largely free of ice. Despite a rather diffuse ice cover in the Chukchi Sea


DGLL Pact with IALA

 India's Directorate General of Lighthouses & Lightships (DGLL) has signed a Memorandum of Agreement (MoA) with International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA) on 11thAugust, 2016 at Kuala Lumpur, Malaysia.   


Carriers have Withdrawn Extremely Low Spot Market Freight Rates - Drewry

Figure 1. Major routes where rates have bottomed out (all-in rates in US$ per 40ft container)Note Rates include BAF and THCs at both ends Source Drewry Container Freight Rate Insight (www.drewry.co.ukcfri)

Drewry’s Global Freight Rate Index, a weighted average of spot container freight rates across all major routes except intra-Asia, swung back in July by 13% to reach $1,403 per 40ft box. The global spot rate index had dropped to an all-time low of $1,113 per 40ft container in April.


Worldscale Flat Rates to Fall Again

Graph: E A Gibson Shipbrokers Ltd

 The concept of Worldscale is not an easy principle to grasp, particularly for those outside the tanker industry, says Weekly Tanker Market Report by Gibson.   The task gets even more complicated as Worldscale flat rates are reset at the start of each year due to fluctuations in


Sovcomflot Profits slip

Projects - The company services large-scale energy projects in Russia and abroad, including Sakhalin-1, Sakhalin-2, Prirazlomnoye, Varandey, Tangguh and Peregrino.

Reviewing the company’s financial and operating results for the first half year ended 30 June 2016, on 23 August 2016, the Executive Board of PAO Sovcomflot (“SCF Group”) noted that despite a tanker market downturn, the company was able to demonstrate strong performance and


Asia’s Biggest Container Shipper Posts Loss

Photo: China COSCO Holdings Company Limted

 Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn net profit seen during the same period last year as excess capacity dragged down cargo rates.  


Pressure Mounting on VLGCs Rates - Drewry

Source Drewry’s LPG Forecaster report (www.drewry.co.ukpublications)

A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.   Two major factors have lowered VLGC rates in recent times: excessive fleet growth and weak


DP World Rating Upgraded by Fitch

Photo DP World Port

Fitch Ratings recently upgraded DP World Limited’s  Long-Term Issuer Default Rating (IDR) to BBB from BBB- and its Short-Term IDR to F2 from F3. The rating outlook is stable.   The upgrade follows on the Fitch announcement in November 2015 that DP World’s outlook had been


Q4 Bounce Forecast for Dry Bulk Market

File photo: Eagle Bulk Shipping

The Q4 bounce – a seasonal staple of the dry bulk markets – looks likely for Capesize and Panamax segments, but the effects may be limited.    Independent research and consultancy firm Maritime Strategies International (MSI) is forecasting a fourth quarter bounce in dry


Low Freight Rates Hit Maersk Line

Photo: Maersk Line

 Record low freight rates have driven the World’s largest container carrier Maersk Line to report a second-quarter loss of US$151 million.   The second quarter result and revenue both fall year-on-year as average freight rates hit record low levels


Asia N.Europe Box Rates PLunge 10.5 pct

A containership alongside engaged in cargo operations in the port of Hamburg, Germany (port of Hamburg)

Container spot freight rates from Asia to Northern Europe fell 10.5 percent to $771 per twenty-foot equivalent units (TEU) last week, data from the Shanghai Shipping Exchange showed. Specifics of the Intermodal news include:   Freight rates from Asia to ports in the Mediterranean


Has the Link between OPEC Production and VLCC Rates broken?

Graph: Poten and Partners

 For the tanker market, in particular for VLCCs, increasing Middle East OPEC production is typically a good sign.    Poten and Partners in its Shipbrokers Reports says that does not appear to be the case at this particular moment


Asia Tankers-VLCC Rates Steady as Suezmax Fixtures Weigh

Charterers splitting VLCC cargoes into smaller Suezmax tankers; rates to remain around $24,000 per day, below break-even levels. Freight rates for very large crude carriers (VLCCs) on main routes to Asia are set to hold around current levels next week


Navios Maritime Charter Restructuring with HMM

MSC Cristina. Photo: Scheepvaartwest

 Navios Maritime Partners has reached an agreement with South Korean shipping company Hyundai Merchant Marine to cut the hire rate of five container vessels chartered out to HMM by 20%.   Pursuant to the charter restructuring documentation executed on July 15, 2016


Brokers Optimistic on Asia Dry Bulk-Capesize Rates

File image: credit BSM

More activity from Australian miners buoy capesize rates; dry cargo market remains over-tonnaged as fleet growth outpaces demand. Freight rates for large capesize dry cargo ships on key Asian routes should stay largely unchanged next week on static cargo volumes though shipowners remain






 
rss feeds | archive | privacy | history | articles | contributors | top news | contact us | about us | copyright