Container Contract Rates Rise in November
The ongoing trend of downward pressure on long-term contracted ocean freight rates appears to have been broken, or at least temporarily derailed, with marginal increases seen across the board in November.According to the latest XSI Public Indices report from Xeneta, which provides unique business intelligence based on real-time crowd-sourced data from the world’s leading shippers, global rates climbed by 0.9% over the last month. This disrupts a long-term pattern of decline that…
BIMCO: US Box Imports Break Records Despite Uncertainty Ahead
Container imports on both the US East Coast (USEC) and West Coast (USWC) had a strong year in 2018, growing 3.7% and 8% respectively in the first 11 months of the year compared to the same period in 2017.Record high levels of inbound laden containers were experienced on both coasts in October with the USWC at 1.09 million TEU and the USEC at 0.91 million TEU according to BIMCO’s own data.The first two months of 2018 saw the USWC coast’s laden imports increase 11.7% from the start of 2017, with the accumulated growth rate then stabilising to around 4% for the rest of the year.
Port of Oakland to Begin Seaport Logistics Complex
A freight distribution center placing high-demand logistics capability inside a global trade gateway will soon take shape here. The Port of Oakland said today that work should begin this fall on a long-awaited Seaport Logistics Complex.The complex is envisioned as a cargo-handling campus that could change the trajectory of Port business. Currently a West Coast terminus for Transpacific trade vessels, Oakland could eventually double as a major freight distribution point.“This is our future,” said Port of Oakland Maritime Director John Driscoll.
Seaborne Reefer Trade Continues to Expand: Drewry
Despite moderating perishable seaborne trade growth, continued modal shift will sustain expansion in the containerised reefer trade and so support freight rate development, according to Drewry’s latest Reefer Shipping Annual Review and Forecast 2018/19 report, by global shipping consultancy Drewry.Global seaborne reefer trade continues to expand, posting a gain of over 5% in 2017 to 124 million tonnes, a big improvement on trend growth over the past 10 years of 3.6% a year. Underpinning this progress was strong growth in banana…
Container Shipping Shakeup Needed for Higher Rates
Container shipping: Change required for higher ratesDemandThe growing imports of loaded containers into the U.S. East Coast (USEC) continues to be a focal point for the container shipping industry. Growing by 10.4 percent in Q1-2018, the first three months saw 215,000 TEU more entering the USEC than in Q1-2017. Exports grew by 55,000 TEU in the same time span, growing outbound loaded containers by 3.8 percent.This illustrates the constantly changing imbalance in U.S. foreign trade. For every five containers entering the USEC in 2013, four were exported.
FLIR Helps Keep One of Canada’s Largest Ports Safe
As Canada’s second largest container port and North America’s fastest growing port for transpacific trade, the Port of Prince Rupert in British Columbia is committed to providing mariners with safe, efficient and productive port operations. To ensure the port operates safely and securely, rotating crews work day and night aboard the Charles Hays patrol boat, a vessel fitted with a full complement of FLIR thermal and Raymarine navigation technologies. The equipment includes two 12-inch Raymarine MFDs…
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.
Maersk Enhances Asia-Europe, Transpacific services
Maersk Line introduces a new service – the AE7 – on the Asia-North Europe trade and a new service – the TP16 – on the Transpacific trade. The new services will enable MSC and Maersk Line to accommodate the incoming volumes from the recently announced slot purchase agreements with Hyundai Merchant Marine and Hamburg Süd. The two carriers will move cargo, but not operate vessels in the 2M network. “With these exciting product improvements we confirm our commitment to provide extensive direct coverage and best in class transit times to our customers in the Asia-Europe and Transpacific trades…
Hyundai Merchant Marine Ties Up with 2M Alliance
Heavily indebted South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) said on Sunday it has agreed with the 2M shipping alliance to form a cooperative relationship that falls short of full-fledged membership. Joining an alliance with major shipping firms was one of the conditions of a debt restructuring deal between Hyundai Merchant Marine and its creditors in May, and the company said on Sunday that the tie-up with 2M met that criteria. Its main creditor, the state-backed Korea Development Bank…
MSC’s Exclusive Maple Service to Include Vancouver
Service introduced in wake of Hanjin announcement and continues from Yantian. MSC’s Maple service is to resume on Friday 28th October, sailing from Yantian and including Vancouver in its full rotation. The service was first introduced in September on the Transpacific Trade, designed to assist shippers in the wake of the Hanjin announcement. Maple is an exclusive MSC provision, and since September has omitted three calls during the so-called ‘Golden Week’ period. It will now resume its full service with a rotation which sees MSC Rochelle departing Yantian on 28th October and calling Shanghai…
Controversy on Hyundai Joining 2M Alliance
The world’s largest shipping alliance 2M partners - Maersk Line and Mediterranean Shipping Co (MSC) - have been quick to offer shippers an alternate service on the transpacific trade in the wake of Hanjin Shipping’s collapse. The Partners are all set to fill the gaps created by Korean owner’s receivership. However, there is controversy over legal force of the contract in which Hyundai Merchant Marine Co. (HMM) signed to join 2M, reports Business Korea. It has been found that HMM signed a memorandum of understanding (MOU) with Maersk Line and MSC in July to join the 2M alliance…
Matson Launches China to New York LCL Service
Matson Logistics Supply Chain Services is expanding its less-than-container-load (LCL) capabilities by offering direct fast transit from China to the New York and New Jersey markets. The service is based on Matson’s China-Long Beach Express (CLX) service, which offers express Transpacific trade, and partners with JAD International for expedited coast-to-coast transport. “We listened to our clients’ needs and in collaboration with JAD International, we are proud to bring this premium service to the market,” said Jeffrey Ivinski, director of sales and marketing for Matson Logistics Supply Chain Services. “Matson created an alternative to costly air freight to the West Coast and now we are bringing expedited service to the important New York metro market.
Chemical Shipping Freight Rates to Remain Firm
Chemical tanker shipping freight rates are expected to remain firm over the medium term, thanks to rising production capacity in key exporting countries, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry. Since 2015, the US has started to export more and import less volume of liquid chemical products. US methanol capacity surged 77% in 2015 with the addition of around 3.5 million tonnes per year of new capacity. As a result, US methanol exports are starting to change the pattern of the long-haul chemical shipping trade.
MSC Introduce 'Lone Star Express' and 'Amberjack' to the Transpacific Trade
Swiss headquartered Mediterranean Shipping Company (MSC) has announced two new services alled the ‘Lone Star Express’ which will operate between Asia and the US Gulf. This new service will become a new Gateway to/from the US Gulf in anticipation of increased demand. At the same time, MSC’s Everglades service will be renamed ‘Amberjack’ and restructured to include a call to New York, this change ensures both services will operate at optimum efficiency. All changes will be in effect from the first week of May 2016 (departing Asia).
Overcapacity Catches Box Ship Industry in Undertow
All signs point to a continuation of struggling theme for containerized-ocean-freight industry into 2016 and beyond, warns a study by AlixPartners. The containerized-ocean-freight industry suffered in 2015. Its continuing financial woes accelerated because nearly all key financial indicators declined from 2014. At the heart of the industry’s problems, a persistent global supply-and-demand imbalance is to blame. All signs point to a continuation of that theme into 2016 and beyond.
New Methanol Projects to Change Chemical Shipping Patterns
New US and Middle East methanol production capacity being added over the next two years will have serious implications for chemical shipping trade flow patterns, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry. Methanol is one of the top five seaborne chemical commodities accounting for 35 percent of the world seaborne chemical and vegoil trade in 2014. Despite being the largest producer, by both capacity and output,…
Box Shipping Eyes More Overcapacity, Financial Pain
Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry. The recent slowdown in world trade has forced Drewry to halve its forecast for container shipping growth for this year to just 2.2 percent and revise down estimates for future years. Meanwhile, an additional 1.6 million teu of new capacity is being added to the fleet this year, equating to a growth rate of 7.7 percent.
West Coast not to Hamper Hapag-Lloyd's Financials
The disruptions at West Coast ports in the U.S. caused by a labor dispute won’t do much harm to the financial results of the Germany’s biggest container shipping line Hapag-Lloyd AG, reports Bloomberg. Hapag-Lloyd isn’t seeing massive declines in a way that it is jeopardizing our results. It is particularly dramatic for manufacturers, whose goods need to reach a destination at a fixed date, said company spokesman Nils Haupt. The backlog on Hapag-Lloyd’s most important trade route across the Pacific could adversely affect retailers shipping seasonal goods and manufacturers.
Carrier On-Time Percentage Increased in Feb
The on-time percentage of liner services improved slightly in February, but the ships that missed their berthing window missed it by a wider margin due in large part to labor strife at West Coast U.S. ports, according to this month's Carrier Performance Insight from Drewry. 55% of ships in the three key East-West trades arrived within +/- 24 hours from the advertised ETA, up 6.6% against January’s historic low of 49%. The average deviation from the ETA to actual arrival, however, extended from 1.9 days in January to 2.1 days in February.
Maher to Invest in Prince Rupert Port Expansion
Maher Terminals Holding Corp., the operator of the Port of Prince Rupert’s Fairview Container Terminal, today announced its decision to proceed with expansion of the 7-year-old facility, increasing its container capacity by 500,000 TEUs to accommodate growing container volumes and further enhancing the Canadian gateway’s growing role in North American trans-Pacific trade. “Intermodal customers have been capitalizing on the advantages of Prince Rupert as part of their transpacific trade solution since Fairview’s first phase opened in 2007…
Container Shipping Outlook Uncertain in 2015: AlixPartners
The outlook for the global container shipping industry remains challenging for the remainder of 2015, according to a new report from AlixPartners. In its annual outlook for the industry, the global business-advisory firm predicts that operating improvements will continue to prove difficult amid flat or declining demand. The AlixPartners report warns that carriers have been too slow to make any changes to their services or networks in the face of the slump in Brent crude oil prices during 2015 and that recent falls in bunker fuel prices are welcome but will not likely offer a permanent fix.
Cost-Cutting Container Carriers Forge Ahead: Analysis
As freight rates keep declining, cost reductions are the top priority for box carriers, according to Drewry's 2Q14 'Container Forecaster', highlighting that there is a widening gap between the positive financials of the few carriers really focused on cutting costs and the rest of the top 20 lines, as they battle with the pressure of falling freight rates. Drewry forecasts that once again, average freight rates will be lower than in the previous year. Drewry estimates that on the headhaul transpacific trade alone…
Containership Reliability Reaches New High
Container service reliability reached a data-series high in April with the aggregate on-time performance for the three key East-West trades rising to 67.6%, up by 4.1 percentage points on March, according to Carrier Performance Insight , the online schedule reliability tool provided by Drewry Supply Chain Advisors. The previous best since Drewry’s new data series started in May 2014 was achieved in October last year (64.3%) after which the industry struggled to cope with heavy port congestion on the US West Coast and the implementation of new alliance partnerships and services.