Marine Link
Thursday, March 28, 2024
SUBSCRIBE

Philip Damas News

06 Aug 2021

Container Shipping: China-US Box Rates Eclipse $20,000 Mark, a Record

Š Pawin/AdobeStock

Container shipping rates from China to the United States have scaled fresh highs above $20,000 per 40-foot box as rising retailer orders ahead of the peak U.S. shopping season add strain to global supply chains.The acceleration in Delta-variant COVID-19 outbreaks in several counties has slowed global container turnaround rates.Typhoons off China's busy southern coast in late July and this week have also contributed to the crisis gripping the world's most important method for moving…

08 Apr 2019

Satisfaction in Container Transport Declines

The level of satisfaction regarding container carriers among exporters, importers, and freight forwarders reduces marginally, according to the third annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC).The joint ESC and Drewry survey reveals that the 249 shippers and forwarders who took part in the survey rated the service of container shipping lines with a score of 3.1 on average (which is 0.1 lower than last year) on a scale of 1 (very dissatisfied) to 5 (very satisfied).Customer satisfaction was reported least favourable for clarity of prices and surcharges, transit times, and reliability of booking/cargo…

11 Mar 2019

Drewry Benchmarking Club Reaches Milestone

Drewry  has welcome one of the world’s leading automotive and energy companies to its exclusive, online ocean freight cost comparison service, Benchmarking Club.With this latest addition, Drewry Benchmarking Club now counts more than 10% of its members in the S&P 100 and Nasdaq 100.Launched in 2014, Drewry Benchmarking Club is a closed user group designed exclusively for shippers and is one of a number of ocean freight procurement support services from Drewry’s logistics consultancy arm, Drewry Supply Chain Advisors.These services give logistics and procurement teams within global manufacturers and retailers the visibility they need…

17 Dec 2018

Drewry: Ocean Freight Shipping Rates Fall in Q4

Ocean freight rates for cargoes moving under contracts on major East-West routes decreased by 7% in the fourth quarter, according to the results of Drewry’s Benchmarking Club Contract Index.The cost reduction, based on contract freight rate data provided confidentially by Asian, American and European retailers and manufacturers to the Benchmarking Club, shows that shippers who negotiate well with carriers can continue to reduce their multi-million freight spend on most East-West routes, despite the increases in bunker prices during the past year. A moderate fall in the Asia-Europe rates drove this decline.“The latest reduction in average East-West contract rates is the largest quarterly fall since the end of 2016…

16 Oct 2018

Drewry Rolls-out ‘Cost Impact Calculator’ for Shippers

Responding to the concerns and needs of Beneficial Cargo Owners (BCOs) ahead of the IMO 2020 global emission regulation, global shipping consultancy Drewry announces the addition of a new BAF formula and fuel cost benchmarking service to complement its existing range of ocean freight procurement support services.In cooperation with both shipper members of the Drewry Benchmarking Club and other parties, Drewry has developed an IMO low-sulphur rule, “Cost Impact Calculator” based on robust market data, benchmarked BAF charges and fuel cost differentials between loops and carriers.“With the compliance window to the IMO’s low-sulphur rule change in January 2020 rapidly closing…

02 Oct 2018

Unease Over IMO 2020 Low-Sulphur Rule: Drewry Survey

There is considerable unease among global shippers/BCOs (Beneficial Cargo Owners) and freight forwarders ahead of the IMO’s 2020 global emissions regulations, due to come into force on 1 January 2020, according to a survey conducted by global shipping consultancy Drewry.Particular uncertainty and concern was expressed by respondents in both the survey and follow-up interviews about carriers’ methods of fuel cost recovery with more than half of all respondents (56%) stating that they did not consider their service providers’ existing approaches as either fair or transparent.Further to this, 4 in every 5 of the shippers/BCOs participating in the survey stated that they had yet to receive clarity from their providers as to how the widely anticipated future fuel cost increases…

28 Jun 2018

Customers Not Happy with Service Quality of Ocean Carriers

The service provided by container shipping lines has deteriorated since 2016 and is now seen by exporters, importers and freight forwarders as more problematic, according to the second annual shipper satisfaction survey of Drewry and the European Shippers’ Council (ESC). The joint ESC and Drewry survey reveals that the 400 shippers and forwarders who took part rated the service of container shipping lines with a score of 3.2 on average on a scale of 1 (very dissatisfied) to 5 (very satisfied). There were different levels of satisfaction for 16 different carrier activities reviewed in the survey. Satisfaction with documentation accuracy scored 3.4…

02 Mar 2018

Chainalytics and Drewry Partner to Create Ocean Buying Group

Chainalytics, a global leader in supply chain consulting, and Drewry, the global shipping consultancy, have partnered to launch an innovative ocean freight procurement solution for shippers. The Chainalytics Ocean Buying Group, in partnership with Drewry, will provide participating Beneficial Cargo Owners (BCOs) with enhanced purchasing power, service monitoring and cost transparency. The new strategic partnership delivers a pioneering ocean freight procurement platform that will enable medium and small scale importers and exporters to collaboratively achieve “big shipper” rates and terms direct with ocean carriers and benefit from shared intelligence for better commercial decisions.

18 Sep 2017

Global BCOs Hit by Rising Contract Rates from Asia

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. This means that the latest Drewry Benchmarking Club Contract Index has increased by 39% in the year to the third quarter, based on $2 billion of ocean freight spending. “The container shipping market has seen a sustained, radical reversal away from the previous, long deflationary trend,” said Philip Damas, Head of Drewry’s logistics practice.

05 Sep 2017

Drewry Warns BCOs to Adapt Their Contract Strategy

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, fragmented market. “Today’s business environment is starkly different, so we are now pro-actively advising our BCO customers that last year’s contract strategy will simply not work as a blueprint for the forthcoming annual ocean tender,” said Philip Damas, Head of Drewry’s logistics practice.

11 Apr 2017

Quality of Ocean Carriers “Poor to Average”

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 ocean carriers. The survey also looked into areas most in need of improvement and how quality varies by type of carrier. On a scale of 1 (very dissatisfied) to 5 (very satisfied), customers on average did not rate carriers higher than 3.3 for any of the 16 service attributes, the survey showed (see chart).

10 Mar 2017

Spot Freight Rates Soar from North Europe to Asia

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,” said Philip Damas, head of Drewry’s logistics practice. It is highly unusual for the “backhaul” route from Europe to Asia – where vessels normally have load factors of less than 70 percent - to see such spikes in rate levels and capacity shortages.

11 Jan 2017

Benchmarking Against Peers Upheld Among BCOs

International transport and logistics executives are increasingly benchmarking their companies’ costs and supplier terms in ocean transport contracts, according to data gathered by Drewry Supply Chain Advisors. In the past 6 months, the ocean transport spend under carrier contracts benchmarked by Beneficial Cargo Owners via the Drewry Benchmarking Club global initiative increased by 50%, to $2.2 billion; the number of benchmarked routes rose by 81% and the volume of benchmarked dry container teu jumped by 67%. FMCG companies and retailers are generally ahead of industrial manufacturers when it comes to using benchmarking to negotiate contracts.

06 Jan 2017

Spot box rates rise above 5-year average - Drewry

Spot container freight rates on the major East-West routes reached a 20-month high this week and have risen above the average of the last 5 years. The latest weekly reading is $1,770/40ft container for the composite index, reflecting increases on individual lanes to $1,785 for the Rotterdam-New York index (up $4 this week), $2,210 for the Shanghai-Rotterdam index (up $257 this week) and $2,106 for the Shanghai-Los Angeles index (up $545 this week). On the back of 1 January GRIs, the World Container Index between Shanghai and Rotterdam rose by 13% to reach $2,210 this week. Drewry expects the volume upsurge on account of an early Chinese New Year to support further increases next week.

05 Jan 2017

Spot Box Rates Rise Above 5-Year Average

Spot container freight rates on the major East-West routes reached a 20-month high this week and have risen above the average of the last 5 years, said a report by Drewry. The latest weekly reading is $1,770/40ft container for the composite index, reflecting increases on individual lanes to $1,785 for the Rotterdam-New York index (up $4 this week), $2,210 for the Shanghai-Rotterdam index (up $257 this week) and $2,106 for the Shanghai-Los Angeles index (up $545 this week). On the back of 1 January GRIs, the World Container Index between Shanghai and Rotterdam rose by 13% to reach $2,210 this week. Drewry expects the volume upsurge on account of an early Chinese New Year to support further increases next week.

15 Dec 2016

East-West Shippers See First Increase in Contract Rates

Ocean freight rates for cargo moving under contracts on the major East-West trade routes saw a reversal of trend in 4Q 2016, according to Drewry’s Benchmarking Club, a closed user group of 50 multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on average Transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, increased by 3% in the latest quarter, after having fallen for more than 6 consecutive quarters. “2017 will be the first year of increasing contract rates since 2010 and this could come as a shock to some logistics managers who had got used to deflationary international transportation costs year after year…

05 Aug 2016

Spot Rate Trends on Asia-Europe See Reversal: Drewry

The downwards trend line in Asia-Europe spot freight rates has finally been reversed, as data from World Container Index Shanghai-Europe reveals. Whereas the first four months of 2016 saw 50% or larger reductions in freight rates and record-low spot rate levels, a series of five consecutive monthly rate increases that started in April and continued again on 1 August has resulted in a return to an upwards trend line. “Shippers and cargo owners booking under spot rates enjoyed huge cost reductions while carriers suffered substantial revenue shortfalls in early 2016 on the Asia-Europe route but, as we predicted, this extreme situation did not last,” said Philip Damas, director at Drewry, which jointly owns WCI alongside Cleartrade Exchange.

14 Jun 2016

East-West Shippers See Acceleration in Container Contract Rate Cuts

Ocean freight rates for cargo moving under contracts on the major East-West trade routes fell by another 18% between February and May, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on average Transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, has now declined by 29% in the year to May, as shippers secured, first, big cuts in Asia-Europe annual contract rates and, second, considerable reductions in their transpacific rates effective from May.

13 Jun 2016

East-West Shippers see Acceleration in Container Contract Rate Cuts - Drewry

Ocean freight rates for cargo moving under contracts on the major East-West trade routes fell by another 18% between February and May, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on average Transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, has now declined by 29% in the year to May, as shippers secured, first, big cuts in Asia-Europe annual contract rates and, second, considerable reductions in their transpacific rates effective from May.

11 Mar 2016

Container Blood Bath: Freight Rates Hit New Lows

The World Container Index’s composite index, an average of spot freight rates on 11 global East-West routes connecting Asia, Europe and the US, reached a record low of US$701 per 40-foot container on March 10, says Drewry Shipping Consultants. This was the lowest reading since the World Container Index (WCI) starting tracking weekly transatlantic, transpacific and Asia-Europe rates in June 2011. “The World Container Index’s composite index is now 60% lower than the average of the past 5 years and has decreased by 62% in the past year,” said Richard Heath, director of WCI. Jonathan Chappell, an analyst at Evercore ISI in New York says that there’s been an arms race in building bigger and bigger ships and they’re coming at a time the economy is slowing.

26 Feb 2016

Drewry Launches e-Sourcing Solution

Drewry, an independent research and consulting firm to the shipping sector, has launched a new e-Sourcing solution for global ocean transport exporters and importers. The new e-Sourcing Ocean Freight Solution (eSOFS) combines Drewry’s freight rate benchmarking intelligence, industry expertise with new technology to bring speed and efficiency to ocean freight sourcing events, the firm explained. Faced with increasingly complex, data-intensive product flows and budgetary constraints, ocean transport logistics managers within multinational retailers and manufacturers have been seeking a more efficient and cost effective process to handle procurement activities. Drewry said its eSOFS solution provides the flexibility and analytical capabilities to ensure well informed procurement decisions.

05 Jan 2016

East-West Shippers See Contract Rates Slide

Ocean freight rates for cargo moving under contracts on the major East-West trade routes saw another reduction in the last quarter of 2015, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on Trans Pacific and Asia-Europe contract freight rate data provided confidentially by shippers, declined by 5 percent between August and November last year, another fall on top of the sharp decline we saw during the third quarter of 2015. The reduction in contract rates was driven by a combination of lower fuel costs, excess vessel capacity and intensive competition between shipping lines.

29 Sep 2015

East-West Shippers' Contract Rates Falling -Drewry

Ocean freight rates for cargo moving under contracts on the major East-West routes have seen a sharp reduction since the beginning of the year, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club contract rate index, based on Trans Pacific and Asia-Europe contract freight rate data provided confidentially by shippers, declined by 7% between May and August this year, the steepest fall since the Benchmarking Club was established in March 2014. The fall in contract rates has been driven by a combination of lower fuel costs, excess vessel capacity and intensive competition between shipping lines.