Marine Link
Monday, October 23, 2017

Ocean Freight

Ocean Freight Shipping Rates on the Rise

After a downtrend in the freight shipping tanker market since the middle of 2007, the industry has seen nothing but rate increases in the last month. This freight rate increase can affect consumers across the board, according to the freight transportation The cost of freight shipping can mean an increase in the cost of many consumer products, according to FreightBrokering.info, which is why it's so important to keep freight transportation costs down. There are many reasons why the costs of ocean freight shipping have increased. Indian Oil Corporation recently paid $9 million in freight transportation charges for shipping crude oil on a very large crude carrier from West Africa to Vadinar, India. The high freight rate was a result of oil firms scrambling to hire ships before the holiday season started, leading to a shortage of ships. Another recent event that may be affecting the ocean freight rate is an accident that occurred on December 7 about five miles off the coast and 93 miles southwest of Seoul, which caused South Korea's worst oil spill in history. Single-bottomed tankers are already scheduled to be phased out worldwide by 2010 under an international maritime treaty, and demands to ban single-hull tankers ahead of the deadline have now emerged. This leaves more demand for other types of freight shipping vessels, and the resources are not necessarily there.

FedEx To Enter Ocean Shipping Business

FedEx Logistics Inc reportedly will enter the oceanshipping business. FedEx Logistics, a unit of FedEx Corp., will become a non-vessel operating common carrier (NVOCC), meaning it will send freight by sea but not own any ships, Mark Gunn, of the Akron, Ohio-based logistics firm said, "We aren't going to own any ships." FedEx Logistics will arrange the global logistics of ocean freight but Gunn did not say when this will start.

CaroTrans Assures Seamless Transport on US West Coast

CaroTrans Logo

  CaroTrans, a leading global NVOCC (non-vessel operating common carrier) and ocean freight consolidator, today announces their U.S. West Coast port readiness program to address potential supply chain disruptions. Congestion and current labor issues are impacting the flow of cargo at U.S. West Coast ports and there is the likelihood of further instability. To address this infrastructure challenge, CaroTrans has developed alternative routing solutions to lessen the impact on supply

Sino-Global Shipping Enters Agreement With COSCO

Image: Sino Global

 Sino-Global Shipping America, a non-asset based global shipping and freight logistic integrated solution provider,  has announced the signing of an Inland Transportation Agreement  with COSCO Beijing International Freight Co in which COSFRE Beijing will utilize the Company's full-service logistics platform to arrange for the transport of its container shipments into US ports.    In addition to the Agreement with COSCO Beijing

Quality of Ocean Carriers “Poor to Average”

Image: Drewry Shipping Consultants Limited

 The service provided by container shipping lines is rated as poor to average and has deteriorated in the past year, according to a survey of exporters, importers and freight forwarders conducted jointly by Drewry and the European Shippers’ Council (ESC).   The ESC and Drewry contacted several hundred shippers and forwarders from all over the world in March 2017 and asked them how satisfied they were with 16 price and non-price related attributes of the services provided by

Global BCOs Hit by Rising Contract Rates from Asia

Graph: Drewry Benchmarking Club

 Contract freight rates paid by Beneficial Cargo Owners to move their products by container have increased for a 4th consecutive quarter, according to actual contract rate data from the Drewry Benchmarking Club.   Average contract rates on two major container trade routes - from Asia to North Europe and North America – have increased by another 4% between the second and the third quarter of this year

CaroTrans Bolsters Service with New Philippines Partnership

CaroTrans, a global NVOCC (non-vessel operating common carrier) and ocean freight consolidator, today announces a strategic alliance with Multifreight Consolidator System, Inc. (MFCSI), a NVOCC in the Philippines market committed to responsive, flexible transportation services. The CaroTrans MFCSI partnership will offer fast, reliable LCL (less than container load) and FCL (full container load) import and export cargo services between North America and the Philippines, the company said

UTi Worldwide, Ansell Name Safmarine Partner of the Year

UTi Worldwide Inc., a global supply chain services and solutions company, together with its client, Ansell Limited, named Safmarine its "Partner of the Year" for 2013-2014 during their annual Ocean carrier performance review meeting in July. The award recognizes the strength of Safmarine’s relationship with UTi Worldwide and Ansell Limited. UTi and Ansell jointly selected Safmarine as a global ocean partner as part of their Strategic Ocean freight Partnership program

Shipping Exec Indicted for Price Fixing

Another ocean freight executive has been indicted for participation in a long-running conspiracy to restrain trade in international ocean shipments of roll-on, roll-off cargo to and from the Port of Baltimore and elsewhere in the United States, the Department of Justice announced Tuesday.   A grand jury in the District of Maryland returned the indictment. Mauricio Javier Garrido Garcia (Garrido), an executive of Compañia Sudamericana de Vapores S.A

Panama Canal Extension May Be Bad for Some Shippers

Photo: Panama Canal Authority

The newly inaugurated Panama Canal may not be as beneficial as it seems for container ship carriers, says Xeneta, a benchmarking and market intelligence platform for containerized ocean freight.   Although the new sets of locks and deeper, wider shipping channels will potentially double the waterway’s capacity, giving neo-panamax vessels access for the first time, the increased efficiencies may actually undermine rates – deepening the crisis for a segment already suffering

Drewry Warns BCOs to Adapt Their Contract Strategy

Image: Drewry Shipping Consultants Limited

 International transport and logistics executives using container shipping are facing the biggest shift in their ocean provider base for 20 years and must adapt their procurement and contract strategy, according to ocean freight procurement consultancy Drewry Supply Chain Advisors.   In the last five years, beneficial cargo owners have been able to secure large reductions in freight costs by running traditional competitive bids with numerous providers in an over-supplied

Marine Biofuels As Sustainable Alternative For Shipping

Participants of the roundtable share insights on the use of marine biofuels as sustainable alternative fuel for shipping. Photo: Maritime and Port Authority of Singapore

 The inaugural biofuel roundtable was held in Singapore today to drive discussions on the use of biofuels as a sustainable alternative fuel for the future of shipping.    Organised by the Maritime and Port Authority of Singapore (MPA), BHP and GoodFuels Marine (GoodFuels), the closed-door roundtable event brought together shipowners of different ship types to network, share insights into the use of biofuels to meet increasingly stringent environmental regulations as well as

Bahri Rolls Out BahriBunge Dry Bulk

Following announcement in Feb 2017, new joint venture plans to ship over 5 million metric tons of dry bulk commodities in its first year of operation. Photo: Bahri

Following the announcement of the joint venture agreement by Bahri, a global leader in transportation and logistics, and Koninklijke Bunge, a wholly-owned subsidiary of Bunge Limited, a global agribusiness and food company, the two companies recently inaugurated the offices of BahriBunge Dry Bulk Ltd. in Dubai, UAE.    In celebration of the occasion and reveal of the new company’s logo, Mr. Abdulrahman M

APL Adds Eagle GO to Suite of Eagle Guaranteed Services

Photo: APL

 As the Trans-Pacific trading season heats up, APL today launched the new Eagle GO Guaranteed product. A first-of-its-kind ocean freight guarantee, it promises equipment and vessel space on board all APL’s North America-destined services that directly call Shanghai, Ningbo and Yantian in China; as well as Cai Mep in Vietnam.   “APL’s Eagle GO Guaranteed seeks to address the concerns of equipment and vessel space shortages as the Trans-Pacific trading season goes

Spot Freight Rates Soar from North Europe to Asia

Photo: Maersk Line

 Spot container freight rates from North Europe to China increased by 45 percent this week, reaching a four-year high.   The “World Container Index assessed by Drewry” market reading on the route from Rotterdam to Shanghai jumped to $1,076 per 40ft dry container today, from $740 last week.   “Our sources reported that ships are currently full and that carriers have demanded much higher rates – only some prior rate agreements remain in place

DHL Says Ocean Freight Rates at Turning Point

© dbvirago / Adobe Stock

Demand for ocean and air freight has been better than expected this year, with increasing volumes and rates finally improving after years in the doldrums, executives from freight forwarding company DHL, part of Deutsche Post DHL Group, said. "We're seeing relatively high demand for both ocean and air freight. We're seeing rising volumes on several routes," Tobias Meyer, chief operating officer and executive vice president for business support, DHL Global Forwarding, told Reuters

A Glimmer of Hope for Asia Dirty Tankers

© Igor Groshev / Adobe Stock

 As we enter Q2 2017, Asia’s crude tanker market finds itself flooded with a flurry of newbuilds that hit the water over the last quarter. According to Lloyd’s List Intelligence, new tonnage delivered hit 15m dwt in Q1 and is expected to stand at 8.7m dwt in Q2. The gradual but steady unwinding of floating storage in global hotspots due to a flattening Brent futures curve is likely to release a constant stream of tonnage into the market, exacerbating the situation of oversupply

Shanghai Grapples with Traffic Congestion

File Image (CREDIT: AdobeStock / (c) zhu difeng)

The world's busiest container port, Yangshan in China's business hub of Shanghai, is battling severe congestion wrought by dense fog, higher-than-usual volumes and the aftermath of a shake-up in shipping alliances, ocean carriers and port officials say.   More than 100 container vessels are now waiting outside the port, where the average waiting time at berth last week went up 6.2 percent, to 18.2 hours, versus the previous week, according to shipping software provider CargoSmart.

Long-haul Arbitrage Trades to Benefit VLCCs

© donvictori0 / Adobe Stock

The OPEC production cuts since the start of 2017 has tightened supplies of medium and heavy sour crudes, leading to a narrowing Brent-Dubai EFS. This has made long-haul crude trades from the Atlantic Basin to the Far East economically viable, resulting in a surge in flows from the North Sea as well as Americas which has in turn boosted ton-mile demand in the VLCC sector. Growing ton-mile demand has helped to halt declining rates in a sector flooded with newbuild deliveries in Q1

Signs of Recovery Seen in Asian MR Market

File photo: Scorpio Tankers

A new lease of life has been breathed into the ailing Medium Range (MR) tanker market in Asia. The MR market has been mired in a slump in recent months, with TC11 rates sinking to a multi-year low of $240,000 in April on the back of lower product exports from China and South Korea. The lumpsum rate for TC11 has since rebounded by $50,000 to $290,000 due an influx of activity in North Asia. Overall Chinese product exports touched a three-month low at 3.5 mmt in April, down by 22

Tsuneishi Says Built 45 Ships Last Year

Photo: Tsuneishi Holdings Corporation

 Japan's Tsuneishi Holdings Corporation said that its  shipbuilding business output was nearly flat with the construction of 45 ships in the fiscal year ending December 2016.   However, ship orders declined markedly due to the impact of last-minute orders before environmental regulations went into effect in 2015.    "Our shipping business, affected by the dry bulk market downturn, recorded sales of 26.9 billion yen, a YOY decline of 5

Weak US Imports Push European Gasoline East

© Evren Kalinbacak / Adobe Stock

Unusually bloated gasoline inventories in the U.S. during peak summer driving season has kept the transatlantic arb barely workable. EIA data indicates that gasoline imports into the U.S. East Coast (PADD 1) for June averaged 549 kb/d so far, down by 15.4 percent m-o-m. As such, an atypical influx of LR tankers carrying gasoline from Europe have been fixed to the East in recent weeks. At least 6 LR2 and LR1 tankers loaded with gasoline are heading from the ARA region to AG/Singapore in June.

CMA CGM Invests in NYSHEX Market

Photo: CMA CGM

 CMA CGM, a world leader in container shipping, is pleased to announce its participation in the first ever New York Shipping Exchange (NYSHEX) fundraiser, the first digital marketplace for ocean freight contracts.   This investment is made alongside Hapag Lloyd, GE Ventures and Goldman Sachs, for a cumulative investment of $13 million. It is carried out through CMA CGM Ventures, the corporate venture structure recently created by the CMA CGM Group and dedicated to investments in

Maersk to Face Price War

Photo: Maersk Line

 A.P. Moller-Maersk's main sea freight business faces the threat of a new price war in a consolidating industry, though the company has been fortified by the $7.5 billion sale of its oil and gas business to France's Total Reuters reported.   Maersk, the world's biggest container shipping company, has shifted its focus this year from preserving market share to higher margins, a strategy that was helped by a recovery in freight rates, the report said.  

Mega-ships: ‘Mega-problem in Waiting’ -Xeneta

(File photo: Maersk Line)

New alliances, structural change and positive economic trends have transformed the container shipping market over the past year, driving growth and pushing business performance figures from deep red into black. However, despite long-term rates that are, in some cases, up 120 percent year on year, the future remains uncertain due to a looming shadow on the horizon. And, according to Xeneta, it’s not being cast by the ‘usual suspect’.  

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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