Container Rates Fall Due To Overcapacity
According to Norway-based ocean freight rate benchmarking and market intelligence specialist Xeneta, long-term contracted ocean freight rates for carriers continued their downward trend this month, however by only 0.1% globally. The company said the decline comes against a backdrop of increasing overcapacity, and that widespread blanked sailings and on-going concern over US-China relations were adding to industry uncertainty.Xeneta said that long-term rates have followed a pattern of decline since the middle of 2018…
AWO Elects Foss Maritime's Merritt as Chair
The members of the American Waterways Operators, the national tugboat, towboat and barge industry association, elected a new slate of leaders earlier this month during the association's annual Spring Convention held in Washington, D.C. Scott Merritt, former Chief Operating Officer for Foss Maritime Company, LLC, was elected Chairman. Arthur F. Mead, Vice President and General Counsel at Crowley Maritime Corporation, was elected Vice Chairman. Mr. Merritt succeeds outgoing Chairman Tom Marian…
William P. Doyle, CEO & Executive Director of the Dredging Contractors of America (DCA).William P. Doyle is the CEO & Executive Director of the Dredging Contractors of America (DCA). Twice a U.S. Senate confirmed Presidential appointee to the U.S. Federal Maritime Commission (FMC), Doyle has, over the course of a long and celebrated career, successfully worn many hats. Prior to his FMC appointment, Mr. Doyle served on cabinet and executive level boards and committees under both the Obama and George W. Bush Administrations. Before that, he served as an officer in the U.S.
Container Terminal Operators Forms Hong Kong Seaport Alliance
Hongkong International Terminals Limited, Modern Terminals Limited, COSCO-HIT Terminals (Hong Kong) Limited, and Asia Container Terminals Limited jointly announced the formation of the Hong Kong Seaport Alliance (The Seaport Alliance).The joint operating agreement designed to deliver more efficient service offerings to carriers that call Hong Kong, while enhancing the overall competitiveness of the Port of Hong Kong across the region.The Seaport Alliance will offer a total of…
Fairview Terminal Reaches 1 Million TEU Milestone
The British Columbia’s Port of Prince Rupert and DP World have marked a historic milestone as Fairview Container Terminal handled its millionth container (TEU) for the first time in a calendar year.The 40-foot TEU was loaded with dimensional lumber in Prince George before being shipped to Prince Rupert by train and loaded onto the COSCO Africa container ship to be sent to market.“DP World is proud to have achieved the million TEU milestone,” said Maksim Mihic, General Manager DP World (Canada) Inc.
NWSA Import Volumes Rise in May 2018
May imports at the Northwest Seaport Alliance of Seattle and Tacoma reached their highest level since 2010 this year.At 131,067 TEUs (20-foot equivalent units), import volumes were 0.7 percent above last May's total.Export volumes of 114,227 TEUs marked a 11.2 percent decrease from the prior year, but were still above the five-year average.At 245,294 TEUs, the total international container volumes decreased 5.2 percent over the year, with the May 2017 volumes having been inflated during the launch of the new carrier alliances.
Interview: William P. Doyle - CEO, Dredging Contractors of America
William P. Doyle is the new CEO & Executive Director of the Dredging Contractors of America (DCA). Twice a U.S. Senate confirmed Presidential appointee to the U.S. Federal Maritime Commission (FMC), Doyle has, over the course of a long and celebrated career, worn many prestigious hats. Prior to his FMC appointment, Mr. Doyle served on cabinet and executive level boards and committees under both the Obama and George W. Bush Administrations. Before that, he served as an officer in the U.S. Merchant Marine as a U.S. Coast Guard licensed marine engineer aboard numerous classes of vessels.
FMC's Doyle to Exit Commission in January, 2018
Today, the Office of Commissioner William P. Doyle of the U.S. “Last week, I notified The President of the United States Donald J. Trump of my intention to leave the Federal Maritime Commission effective January 3, 2017. It has been an honor and a privilege to continue serving in the Trump Administration. I thank President Barack Obama for nominating and appointing me twice as a Commissioner. “I am proud to have worked alongside my fellow Commissioners and with such a dedicated and hardworking Commission staff.
AWO Testifies on Carrier Alliance, Tug Negotiations
AWO testifies before Congress on dangers of foreign carrier alliances negotiating collectively with U.S. Tom Allegretti, President & CEO of The American Waterways Operators, testified before the House Transportation & Infrastructure Committee's Subcommittee on Coast Guard and Maritime Transportation on the dangers posed by the Federal Maritime Commission's (FMC) decision to allow foreign carrier alliances to collectively negotiate with U.S. tugboat operators. Allegretti also emphasized AWO's view that such agreements violate both the letter and congressional intent of the Shipping Act…
Consolidation Not Enough to Save Box Shippers -Study
The outlook for global container carriers remains rocky at the outset of 2017, according to a new study by AlixPartners. Hanjin Shipping Co.’s bankruptcy in 2016 sent shock waves through the industry, while Brexit and the new U.S. administration’s policies threaten to inject further uncertainty into the future of global trade. These stances could reverse policies that have supported the growth of containerization since the 1950s. Going into the important pricing season, companies need to do everything they can to retain the higher rates recently seen.
Port of Long Beach Trade Dipped in 2016
Slowed by industry headwinds and challenges that included major customer Hanjin declaring bankruptcy, the Port of Long Beach said it moved almost 6.8 million containers in 2016, its fifth best year ever. Overall cargo declined 5.8 percent in 2016 compared to 2015, as the Port was impacted by new ocean carrier alliances and the August bankruptcy of Hanjin Shipping, a South Korean company and former majority stakeholder at the 381-acre Pier T container terminal — Long Beach’s largest.
Long Beach Exports Up, Overall Volumes Down
August exports surged 14.8 percent through the Port of Long Beach compared to the same month in 2015, but lower imports drove overall volumes down, the port reported. Harbor terminals moved 641,029 twenty-foot equivalent units (TEU) in August, an 8.9 percent year-over-year decrease. Of those, 321,625 TEU were import containers, which were down 10.2 percent. Exports numbered 159,247 TEU. Empties accounted for 160,157 containers, 22.5 percent fewer than August 2015. That month set an all-time record for Port of Long Beach cargo.
CMA CGM - COSCO Mega Alliance to Shake-up the Industry?
Paris-based consultancy, Alphaliner, reports “a new mega alliance appears to be in the making,” as French container shipping major CMA CGM and its Chinese counterpart China COSCO lead efforts to set up a new carrier partnership. (Marine Link has reported about this last week. The duo is also seeking to also rope-in Evergreen and OOCL in a plan that could potentially split up three of today’s four main East-West alliances. The movement that will radically alter the current liner shipping landscape and leave the eight remaining carriers of the Ocean Three, CKYHE and G6 alliances in the lurch.
Port of LA Container Volumes Down 22.7% in January
Port of Los Angeles container volumes decreased by 22.7 percent in January compared to January 2014 volumes, the port announced today. The port's January 2015 cargo volumes totaled 529,427 Twenty-Foot Equivalent Units (TEUs), compared to 685,549 TEUs in January 2104. Labor strife between the International Longshore Warehouse Union and the Pacific Maritime Association, which resulted in port slowdowns and shutdowns, made a decline in container volume inevitable. The groups reached a tentative labor agreement last week after federal officials stepped in…
Mega-Containerships Trigger Terminal Shake-ups
Bigger container ships are resulting in much greater peaks in container terminal activity, which together with the ever larger combined volumes of bigger alliances, demands fewer, larger terminals in each port. Terminal operators are reacting by consolidating terminal layouts and ownership – and by working more closely together – but what are the consequences for their customers? Drewry Maritime Research discuss in this extract from their latest 'Container Insight Weekly'. A recent…
Long Beach, LA Collaborate to Improve Cargo Flow
Executives from the ports of Long Beach and Los Angeles held a kickoff meeting earlier this week to begin working together to focus on cargo conveyance strategies that will enhance velocity and efficiency throughout their gateway’s supply chain. In their first meeting under the formal discussion agreement recently approved by the Federal Maritime Commission, ranking staff of the two San Pedro Bay ports — the busiest seaport complex in the United States — agreed that the primary goal of the collaboration is to get cargo moving more efficiently.
Long Beach, Los Angeles ports host forum to gather input
More than 100 cargo owners, trucking firm leaders, longshore labor, marine terminals and other goods movement industry representatives turned out Wednesday for a joint meeting hosted by the ports of Long Beach and Los Angeles to gather input, insights and solutions focused on improving the performance of the supply chain. “We are looking at not just improving this gateway,” said Port of Long Beach CEO Jon Slangerup. “This is an effort to look at the entire supply chain – end to end.
Containership Consortia Set for Further Expansion: Analyst
The formation of 2M is only the conclusion of the latest round of mega-alliance negotiations. Ocean carriers are clearly not yet done with mega-alliance expansion following China’s rejection of P3. Maersk and MSC’s subsequent 2M agreement is only the latest. Evergreen and the CKYH alliance are still talking to the US’ Federal Maritime Commission (FMC) about extending the scope of their operating agreement between Asia and Europe to include the US, and CMA CGM has yet to clarify who its new partners will be.
Vessel Size, Alliances Up Pressure On US Ports -Fitch
The rise of alliances among shipping carriers and industry moves toward post-Panamax and ultra large cargo ships are pressuring many U.S. ports to address access restrictions. The widening of the Panama Canal, slated to open in 2016, will further intensify the need to accommodate larger ships. Some regional ports that serve secondary markets and are unable to process larger vessels risk losing some services or being skipped completely, Fitch Ratings says. The combined impact of the shift to larger vessels and carrier alliances is giving shippers significant negotiating leverage over ports.
Drewry: Cosco, CSCL Merger to Shake up Container Shipping
Industry analyst Drewry believes that the proosed merger between Chinese state-owned companies, Cosco and China Shipping Container Lines (CSCL), could cause a domino effect on existing carrier alliances and further carrier mergers in Asia damaging to industry competition. China is said to be planning to merge is two container shipping majors China Cosco and CSCL within efforts to consolidate state owned enterprises. Although merger talks between the world’s fourth and eighth largest container carriers are unlikely, Drewry expects that both will have to take radical remedial action this year.
Angeles Box Throughput up 3.8%
August 2015 containerized cargo volumes at the Port of Los Angeles increased 3.8 percent compared to the same period last year. The Port handled a total of 786,677 Twenty-Foot Equivalent Units (TEUs) in August 2015. It was the strongest August performance since 2006, when 790,726 TEUs moved through the port complex. Current and historical data is available here. “The numbers are strong indicators that our terminal operators, longshore labor and supply chain partners are adjusting to the new industry dynamics of carrier alliances…
FMC Commissioner Comments on Key Shipping Issues at LA Forum
U.S. Federal Maritime Commissioner Doyle spoke to the Global Shippers Forum in Los Angeles and discussed Ro/Ro price fixing matters; the newly approved cooperation agreement between the ports of Seattle and Tacoma; the first PVO company to take advantage of the alternative bonding mechanisms; China VAT; Commission's 6 (g) Analysis, and the Suez/Panama Canal routes. This past week the Commission unanimously voted to effectively allow the Ports of Seattle and Tacoma to move forward on a cooperative agreement to exchange information and work together to find synergies.
Capacity Culls Insufficient to Reverse Rate Slump: Alphaliner
The idle containership fleet has reached its highest level in five years, with over 1 Mteu of vessel capacity currently unemployed. Carriers are removing capacity on most main tradelanes in response to weak market demand, with the Asia to Europe route witnessing some of the most drastic cuts. Of the 21 strings operated by the four main carrier alliances in the Far East to North Europe trade, two have been withdrawn by the ‘Ocean 3’ and 2M partnerships. The G6 and CKYHE meanwhile…