Marine Link
Friday, March 29, 2024
SUBSCRIBE

Walmart News

06 Mar 2024

US Container Shippers Slow Walk New Contracts, Eye Easing of Red Sea Rate Hikes

© Mariusz / Adobe Stock

U.S. importers are playing the waiting game with new container shipping contracts, gambling the rate spike from Red Sea vessel attacks will fade and put them in a stronger negotiating position, shipping industry analysts said.Iran-aligned Houthi missile and drone attacks on commercial ships in the Red Sea have forced most container carriers to reroute vessels around Africa and sent spot rates soaring.That price shock is a "gift" that carriers will be giving back when the assaults stop…

26 Jan 2024

Freight Through Suez Canal Down 45% Amid Houthi Attacks

© moofushi / Adobe Stock

Freight going through the Suez Canal has dropped by 45% in the two months since attacks by Yemen's Houthis led shipping groups to divert freight, disrupting already strained maritime trading routes, according to UN agency UNCTAD.UNCTAD, the United Nations Conference on Trade and Development, which supports developing countries in global trade, warned of risks of higher inflation, uncertainty of food security and increased greenhouse gas emissions.Shipping companies have diverted ships from the Red Sea since the Iran-aligned Houthi movement…

22 Jan 2024

Red Sea Shipping Attacks Pressure China's Exporters

© ABCDstock / Adobe Stock

For Chinese businessman Han Changming, disruptions to Red Sea freight are threatening the survival of his trading company in the eastern province of Fujian.Han, who exports Chinese-made cars to Africa and imports off-road vehicles from Europe, told Reuters the cost of shipping a container to Europe had surged to roughly $7,000 from $3,000 in December, when Yemen's Iran-aligned Houthi movement escalated attacks on shipping."The disruptions have wiped out our already thin profits…

07 Jan 2024

War, Weather Put Ocean Shippers on Notice for Rough Seas in 2024

© Daniel / Adobe Stock

Recent hostilities in the Red Sea have thrown global shippers of vital goods for a loop - but it is hardly the only issue that big carriers are facing as 2024 kicks off.Giants like Maersk say the industry, which handles 90% of global trade, faces the possibility of significant disruptions, from ongoing wars to droughts affecting key routes like the Panama Canal. Complex vessel schedules are likely to be knocked out of sync for giant container ships, fuel tankers and other commodity haulers throughout the year.That will increase delays and raise costs for retailers like Walmart…

03 Jan 2024

Ocean Cargo Rates Climb After New Red Sea Ship Attacks

© Sergey Novikov / Adobe Stock

Ocean freight rates are surging after a missile attack and attempted hijacking of a Maersk ship this weekend prompted carriers to suspend plans to restart transits through the Red Sea, a key artery to the vital Suez Canal trade route.Yemen-based Houthi militants have been attacking high-value cargo vessels in the Red Sea since November in a show of support for Palestinian Islamist group Hamas fighting Israel in Gaza. It has forced ships to reroute around the southern tip of Africa…

28 Dec 2023

Red Sea Shipping Workarounds Add Costs, Delays for Suppliers

© EvrenKalinbacak / Adobe Stock

Toymaker Basic Fun's team that oversees ocean shipments of Tonka trucks and Care Bears for Walmart and other retailers is racing to reroute cargo away from the Suez Canal following militant attacks on vessels in the Red Sea.Suppliers for the likes of IKEA, Home Depot, Amazon and retailers around the world are doing the same as businesses grapple with the biggest shipping upheaval since the COVID-19 pandemic threw global supply chains into disarray, sources in the logistics industry said.Florida-based Basic Fun usually ships all Europe-bound toys from its China factories via the Suez Canal…

03 Nov 2023

Maersk to Cut at Least 10,000 Jobs as Shipping Boom Unravels

Credit: Fotokon/AdobeStock

Shipping group A.P. Moller-Maersk reported a steep drop in third-quarter profit and revenue on Friday and said it would cut at least 10,000 jobs in the face of overcapacity, rising costs, and weaker prices.Maersk, which controls about one-sixth of global container trade, transporting goods for a host of major retailers and consumer goods companies such as Walmart and Nike, flagged a steeper downturn in demand than analysts and investors had expected."Our industry is facing a new normal with subdued demand…

22 Aug 2023

Shippers Bet on Green Methanol to Cut Emissions, Supply Lags

CMA CGM is among the shiping companies investing in methanol powered ships (© Kara / Adobe Stock)

Container shippers are ordering vessels powered by methanol to reduce greenhouse gas emissions, but it will take years for renewable methanol output to meet demand and for costs to fall, industry executives said.The first green methanol-fuelled container ship, owned by A.P. Moller-Maersk, sailed from South Korea in July. The number of such vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts.Container giants such as A.P. Moller-Maersk, CMA CGM and XpressFeeders dominate the order books.

11 Aug 2023

Drought-hit Panama Canal Lets More Unbooked Ships Pass in bid to Ease Queue

Credit: BlackMac/AdobeStock

The drought-hit Panama Canal has temporarily limited the number of new reserved passage slots to help ease a bottleneck of ships that are waiting to transit without reservations, the waterway's authority said on Thursday.A logjam of commercial vessels seeking to pass through the canal, one of the world's busiest trade passages, has sent companies that typically use the waterway chasing alternative routes, according to executives and data.Any delay or disruption can put shippers on edge.

04 Aug 2023

Maersk Warns of Slower Demand for Container Shipping

Shipping group A.P. Moller-Maersk warned on Friday of a steeper decline in global demand for shipping containers by sea this year, prompted by muted economic growth and customers reducing inventories.The company, one of the world's biggest container shippers with a market share of around 17%, said it expects container volumes to fall by as much as 4%. It had previously forecast a decline of no more than 2.5%.Maersk transports goods for retailers and consumer companies such as Walmart…

15 Jun 2023

Tentative US West Coast Port Contract Deal Reached

© ADLC / Adobe Stock

The Longshore union and employers of 22,000 dockworkers at U.S. West Coast ports on Wednesday said they have reached a tentative deal on a new six-year contract, ending 13 months of talks and easing supply chain worries.The deal was reached with assistance from Acting U.S. Labor Secretary Julie Su, the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) employer group said in a joint statement.President Joe Biden, who dispatched Su to the negotiations in San Francisco earlier this week…

08 May 2023

US Consumer Goods Import Forecast Lowered for First Half of 2023

© ManuelHurtado / Adobe Stock

Closely watched U.S. retail trade forecasters on Monday lowered their import target for the first half of 2023 and said they expect incoming ocean container volume to remain soft going into this autumn - when retailers like Walmart (WMT.N) should be well into holiday season preparations.The Global Port Tracker now expects U.S. container imports of 10.4 million 20-foot equivalent units (TEU) for the first half of the year, a reduction of nearly 4% from its prior forecast.

04 May 2023

Maersk Expects Recent Drop in Container Demand to Stabilize by Mid-year

© tonyv3112 / Adobe Stock

Shipping group Maersk on Thursday reported first-quarter earnings above expectations and maintained its 2023 profit guidance as it expects a recent drop in demand for container shipments to stabilize around mid-year.Maersk, which transports goods for retailers and consumer companies such as Walmart, Nike and Unilever, said the number of containers it loaded onto ships between January and March fell by 9% from a year earlier, while freight rates fell by 37% on average."We delivered a solid financial performance in a challenging market with lower demand caused by continued destocking…

20 Apr 2023

West Coast Port Union, Employers Reach Tentative Deal

© kgrif / Adobe Stock

The International Longshore and Warehouse Union (ILWU) said on Thursday it had reached a tentative agreement with an association representing the U.S. West Coast employers of port laborers on some key issues.Negotiations over a new deal have dragged on for roughly a year since the contract between the Pacific Maritime Association (PMA) and the union expired on July 1, 2022.Any strike in the absence of a deal may prove costly as supply chain issues persist, and high inflation takes a toll on consumer spending…

13 Apr 2023

Employers Say Union is Disrupting Work at Southern California Seaports

© angeldibilio / Adobe Stock

The Pacific Maritime Association on Thursday said the largest longshore union local on the West Coast disrupted work at the nation's busiest seaport complex for the second week in a row, as labor talks covering 22,000 dockworkers from California to Washington state approach the one-year mark.Frustration is growing over the lack of resolution in the talks, which started in May.

19 Mar 2023

US Ports Eye Shipping Turnaround

© Llstock / Adobe Stock

The leader of the busiest U.S. seaport on Friday said February's cargo volume hit the lowest level since the start of the pandemic as inflation and economic upheaval hurt demand, and signaled that activity may not pick up until the second half of this year."This is a global phenomenon. We may not be at the height of the pandemic, but there are more container vessels sitting idle around the world today than at any time since it began," Port of Los Angeles Executive Director Gene…

27 Feb 2023

US Retailers' Ocean Shipping Price Woes Ending as New Delays Threaten

Collapsing ocean shipping rates are not all good news for U.S. retailers, who paid as much as $20,000 to move a container of goods during the worst pandemic disruptions, as they now are bracing for delays due to plummeting demand.Carriers like MSC and Maersk are trying to prop up prices by cancelling voyages and that could spark a new round of cargo delays as containers get bumped from one ship to the next, experts said ahead of a major U.S. ocean shipping conference in Long Beach…

09 Jan 2023

Some Ocean Shipping Rates Collapsing, but Real Price Relief is Months Away

© angeldibilio / Adobe Stock

Prices in the most volatile segment of ocean shipping are collapsing, but top retailers like Walmart and Home Depot should not expect relief until the spring contract renegotiation season, industry experts said.Spot rates, which cover anywhere from 10% to 40% of ocean container shipments and are considered a key indicator of the industry's health, are in free fall as recession looms and the pandemic-fueled U.S. import bubble deflates.The cost to send a container from Asia to the United States on the demand-sensitive spot market has tumbled more than 80% from its September peak above $20…

16 Nov 2022

Port of Los Angeles October Imports Tumble

© MichaelVi / Adobe Stock

October volume at the busiest U.S. seaport fell to its lowest level since 2009 as shippers sent cargo to alternate trade gateways to avoid potential disruptions from ongoing West Coast port labor talks, Port of Los Angeles Executive Director Gene Seroka said on Tuesday.The data comes as ocean trade activity returns to more normalized levels after booming in the early days of the COVID-19 crisis. Seaports like New York/New Jersey, Savannah and Houston have benefited from the uncertainty…

17 Aug 2022

Leader of Busiest US Port Expects Imports to Soften in August

© dbvirago / Adobe Stock

The busiest U.S. seaport expects August imports to begin easing from record highs as retailers cancel orders in the wake of shoppers' pulling back from freewheeling pandemic spending, the executive director of the Port of Los Angeles said on Wednesday.The Port of Los Angeles and the adjacent Port of Long Beach handle more imports from China than any other U.S. ocean trade gateways, and their forecasts are considered to be an economic barometer."Imports will begin to ease somewhat.

12 Dec 2022

Shipping Giant Maersk Replaces CEO

Soren Skou retires as CEO of A. P. Møller - Mærsk A/S, handing the baton to Vincent Clerc, who is appointed new CEO.- ©Maersk

Shipping giant A.P. Moller-Maersk said on Monday it had appointed Vincent Clerc, who has been with the firm for 25 years, to replace Soren Skou as Chief Executive Officer as of Jan 1. Company veteran Clerc, who currently heads the company's Ocean & Logistics business, is taking the helm at a time of slowing demand for transport and logistics as a global recession looms. "The strong tailwinds that benefited the supply chain industries during the pandemic are coming to an end," said chair of the board Robert Maersk Uggla in a statement.

02 Aug 2022

Maersk Sees Global Supply Chain Woes for Longer; Lifts 2022 Guidance

© hit1912 / Adobe Stock

Maersk raised its 2022 profit guidance for a second time on Tuesday after beating quarterly revenue expectations as congested global supply chains that have boosted freight rates persist longer than expected.The shipping industry has seen record profits in recent quarters due to a surge in consumer demand and pandemic-related logjams holding up containers in key ports in China, Europe and the United States."Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated…

08 Feb 2023

Maersk Warns of Four-fold Drop in Profits in 2023

©Maersk

Shipping group A.P. Moller-Maersk warned on Wednesday lower container volumes and freight rates would drive a four-fold plunge in profits this year, even as it reported record earnings for 2022.The Copenhagen-based company, which transports goods for retailers and consumer companies such as Walmart, Nike, and Unilever, raised its profit forecast twice last year as a surge in consumer demand and pandemic-related logjams at ports boosted freight rates.But freight rates have since…