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24 June 2024 - Year XXVIII
Independent journal on economy and transport policy
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CENTRO INTERNAZIONALE STUDI CONTAINERSANNO XXXVIII - Numero LUGLIO 2020

MARITIME TRANSPORT

SKY-HIGH OCEAN SHIPPING RATES MAY HAVE FINALLY PEAKED

Ocean container rates remain exceptionally high but may have finally hit their ceiling. Spot rates have not only stopped rising, they've pulled back by single digits. Is this a new plateau or the start of a longer-term reversal as liner alliances bring more capacity back online?

The share of idle containership tonnage is declining. The number of box ships being chartered by carriers is increasing. Charter rates are on the rise. All of this implies there will be more slots available for containers, a headwind for freight rates.

Spot rates halt their ascent

"As carriers restore capacity, ocean rates dipped slightly," said Freightos Chief Marketing Officer Eytan Buchman in the company's weekly report.

The Freightos Baltic Daily Index tracks the price to ship a forty-foot equivalent unit (FEU) container in various trades. Rates peaked on July 8 on the China-West Coast route (SONAR: FBXD.CNAW) and on July 7 on the China-East Coast route (SONAR: FBXD.CNAE). China-West Coast rates hit a high of $2,855 per FEU before falling 4% to $2,753 per FEU on Wednesday - still more than 65% above rates in the past two years.

Demand in flux

"Volumes and capacity are still not at equilibrium, keeping rates up, with reports of some carriers even requesting premiums on top of these rates to prevent rolled shipments," noted Buchman.

The COVID-19 crisis could push importers to bring even more cargo in quickly, he continued. "As infections rates, closures and restrictions grow in the U.S., these extreme freight rates may point to the urgency importers are feeling to ship as soon as possible, as the pandemic has made it impossible to know how long consumers will still be buying."

On one hand, this could lead to more orders in the coming weeks. On the other hand, importer urgency could have already brought orders forward, implying demand weakness ahead.

U.K.-based consultancy MSI warned in a new report: "There is some need for caution, since the recent rebound in volumes is potentially being driven by one-off inventory restocking dynamics. There are signs that the U.S. economic recovery in particular is slowing," it said. This raises the question of "how durable current volume rebounds will prove."


Blank-sailing data

Demand could be either positive or negative for rates. Given COVID-19, demand is a wildcard. Supply appears more one-sided, in favor of rates declining. An unprecedented amount of capacity was artificially removed from service by carriers to support rates in the wake of coronavirus-stricken demand declines. That capacity is now returning.

Carriers "blanked" (canceled) sailings to calibrate supply to demand. According to the data updated on Thursday from eeSea.com, carriers blanked 14.7% of their sailings from Asia to North America arriving in the second quarter, but have only blanked 4.7% of third-quarter arrivals.


(Chart: eeSea.com)

The data also shows that carriers are much more optimistic about North American consumer demand than European demand. In the second quarter, 21% of Asia-Europe sailings were blanked, with 15.3% blanked in the third.

This implies that carriers are as pessimistic about European imports in the current quarter as they were about U.S. imports in the previous quarter.


(Chart: eeSea.com)

Inactive fleet on the decline

The fewer blank sailings, the fewer ships are idled. Data on idled ships tracked by Alphaliner is pointing to a major change.

Alphaliner reported that the inactive containership fleet fell to 1,847,871 twenty-foot equivalent units (TEUs) as of July 6, down 20% from the previous count in late June.

"The inactive fleet capacity level has dropped below the 2-million-TEU mark for the first time since mid-February, indicating improving market conditions," said Alphaliner.

NOO: Non-owner operated ships. SR: ships undergoing scrubber retrofits (Charts: Alphaliner)


Charter rates rebounding

Carrier fleets are composed of owned tonnage and chartered vessels. This mix provides the flexibility to manage costs. Carriers renew fewer expiring charter contracts in weak markets. This increases the number of ships available for hire and decreases charter rates.

Those charter rates plunged in the wake of the coronavirus. Now, they're coming back.

According to MSI, "Recent weeks have been encouraging, at least for mid-size and larger benchmarks, as a chartering spree has greatly reduced the number of spot units and placed upward pressure on time-charter earnings."

Charter rates for 8,500-TEU ships are up to $18,000 per day from a low of $11,000 per day. "The specific driver was chartering by MSC [Mediterranean Shipping Co.], which fixed essentially the entire market in the space of a week," reported MSI.

Will carrier willpower break down?

Ocean carriers have been surprisingly adept at averting a price war during the pandemic - so much so that the word "profiteering" has been voiced.

But the real test of carrier willpower will come when vessel supply returns to the market. In other words, now.

More services, fewer blanked sailings and more chartered-in ships equate to more container slots that need to be filled. If carriers don't maintain price discipline, a mid-single-digit drop in spot rates could snowball into something more substantial.

As Simon Sundboell, founder of eeSea.com, previously told FreightWaves, "Now that things are starting to open back up, it'll be interesting to see how well carriers manage not just the shutdown but the reopening. It's way too early to claim that carriers have gotten the upper hand in the perpetual supply/demand-balance game." Click for more FreightWaves/American Shipper articles by Greg Miller

MORE ON BLANK SAILINGS: For an in-depth Q&A on blank sailings with Sea-Intelligence CEO Alan Murphy, see story here. For extensive data on blank sailings from eeSea.com, see story here. For a comparison of second and third-quarter blank sailings to U.S. ports, see story here.

freightwaves.com



CMA CGM restructure services in the Mediterranean
Marseille
Changes to the Euronaf and TMX 2 lines scaling several Italian ports
The only retroport of the port of La Spezia is that of Santo Stefano Magra
The Spezia
Shipping agents and shipping agents and customs officers who say no to the hypothesis of other corridors said.
Warriors (AdSP Livorno) : The TDT terminal must maintain its own merceological vocation
Livorno
We expect Grimaldi to develop plans to promote a real growth of containerized traffickers.
Emanuele Grimaldi has been re-elected as president of the International Chamber of Shipping
Emanuele Grimaldi has been re-elected as president of the International Chamber of Shipping
Montreal
Confirmed for another two-year term
Lorenzo Giacobbe is the new president of the Young People's Group of Assagents
Genoa
It will be joined by Vice Presidents Pietro Abbona and Andrea Pompei
The ports of Trieste and Monfalcone are allied with those of Cartagena, Riga and North Sea Port
Trieste
Report on work in liguri ports
Genoa
It was carried out by the Italian Academy of Mercantile Academy
Intermodal transport of prefabricated in concrete from Tuscany to Sardinia
Arezzo
Collaboration between the Baraclit Group, the Logistic Pole of the FS Group and the GMake Group
It continues the growth of containerized transhipment traffic in the ports of Algeciras and Valencia
Algeciras / Valencia
In May in the two shelves the transshipment containers increased by 8.4% and 12.0%
Kombiverkehr, in 2025, will double in Germany the costs of using rail lines for the transport of goods
Frankfurt am Main
Krebs : in the worst case we will stop transport
They rise to 88 the companies associated with Assiterminal
Genoa
Membership of seven new companies
Brothers Cosulich acquired the genovese Slavetti Enzo
Genoa
It operates in the field of production and sales of hardware products for the shipbuilding and nautical industry
Likely sinking of the renaissance Tutor attacked by the Houthis
Portsmouth
Signaled the sighting at sea of debris and hydrocarbon chiaths
EU Council agrees to its position on new regulation on the European Maritime Safety Agency
Brussels
Also adopted the general approach on the regulation on the use of the capacity of the railway infrastructure
The Council of State has also rejected the appeal from the Gioia Tauro oil company
Joy Tauro
The port institution had rejected the concession instances put forward by the company
Mitsubishi Shipbuilding will build the first two Japanese ro-ro ships to methanol
Tokyo
They will have a capacity of about 2,300 motor vehicles
MSC restructure links between the Western Mediterranean and Canada
Geneva
Merger of two services
New Mediterranean Service-East Coast USA of the MSC
Geneva
Will have weekly frequency
On June 24, the Port Community System of the ports of Campania will be activated
Naples
The digital platform will be equipped with additional tools by 2026
In 2023 the traffic in goods in Greek ports grew by 1.0%
The Piraeus
Passenger in growth of 6.4%
Last month container traffic in the port of Long Beach decreased by -8.2%
Long Beach
In the first five months of 2024, there was an increase of 10.0%
In 2023 the turnover of MIS-Mai Intermodal Service grew by 28.5%
Aquanegra Cremonese
Handling 2.3 million tons of cargo
Spearport, contingent arrivals in the port of Genova to a number of vehicles that can actually be served
Continues the growth of prices of new shipbuilding
Copenhagen
We reduce the consistency of the container order portfolio
In May, container traffic in the port of Los Angeles fell by -3.4% percent.
Los Angeles
Waiting for the recovery of growth in summer
The assembly of Assagents will be held in Genoa on June 25.
Genoa
Event entitled " Mari inquieti. Routes and conflicts : the incognition of traffickers "
The work of consolidation of the first tank of the Darsena Europe has arrived at 60%.
Livorno
Completion is expected by the end of the year
Piacenza has resigned as Extraordinary Commissioner of the AdSP of the Western Ligurian Sea
Genoa / Rome
The subenters Admiral Massimo Seno
The means of the Trieste Coast Guard rescue a motonave of the APT Gorizia
Trieste
Rescued from 76 people on board
The Italian Sea Group has completed the divestment of the Viareggio nautical yard
Marina di Carrara
It was sold to Next Yacht Group for 21 million euros
Eni has ceded 10% percent of Saipem's share capital.
San Donato Milanese
The counter-value was about 393 million euros.
Restored full navigability in the access channel to the port of Baltimore
Baltimore
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
Assoports and SRM publish a new update of the report "Port Infographics"
Rome
Focus on maritime trades and fleets, alternative fuels and the employment of women in ports
Renewed the Board of Directors of Maritime Stations
Genoa
Indication of Edoardo Monzani's confirmation to the role of president
In May the revenues of Yang Ming and Wan Hai Lines grew by 46.2% and 40.1%
Keelung / Taipei
In the first five months of 2024 recorded increases of 27.0% and 17.5%
Port of Genoa, Spediporto and Fedespedi call for truck drivers to freeze congestion fee
Genoa
DFDS will sell its own mini cruises to Gotlandsbolaget
Copenhagen / Visby
The divestment will include the ships "Crown Seaways" and "Pearl Seaways" built in 1994 and 1989
Second report from the Fedespedi Studies Center on the Suez Crisis
Milan
In the Mediterranean, take advantage of ports closest to Gibraltar
Finsea renews its identity brand identity
Genoa
The structure of the group split into three main business units : Finsea-Shipping agency, Finsea-Land transport and Finsea-Global logistics
Accelleron has signed a five-year deal with Large Ships Fast
Baden / Genoa
Maintenance and assistance to the more than 100 turboblowers installed on the fleet's 28 ships
In May the container traffic in the port of Singapore amounted to 3.5 million teu (+ 3.6%)
Singapore
In the first five months of 2024, 16.9 million teu (+ 7.7%) were handled.
On July 17 in Rome, the assembly of the Italian Terminalist Terminalist Association will be held in Rome.
Genoa
It will be preceded 16 by a private event between networking and art
Last month Evergreen's revenue grew by 40.3% percent
Taipei
In the first five months of 2024, the increase was 36.2% percent.
Spain's Pérez y Cía. bought the EUCONSA compatril
Madrid
Is specialized in intermodal transport in bulk of chemical and petrochemical products
Suez Canal, continuation of discounts policy applied to ships in transit
Ismailia
Maritime traffic is still more than halved compared to last year.
Conference on the safety and optimisation of the flow of passengers in ports and borders
Rome
Organized by the ICSA Foundation, it will be held on June 12 in Rome
The significant increase in container traffic in the port of Barcelona continued in April.
Barcelona
Transhipment traffic alone has grown by 73.9%
Piero Lazzeri has been reappointed president of Sanilog
Rome
Walter Barbieri has been appointed vice-president of the fund for the next three years.
German L.I.T. buys Italian company Autotransport Pedot
Brake
The Lavis company (Trento) was founded in 1939
In the first quarter of this year, freight traffic in Tunisian ports fell by -8.3% percent.
The Goulette
In decrease both the landings (-6.1%) and embarkation (-11.5%)
Danish Scan Global Logistics has bought the Fopfloor Shipping & Logistics
Copenhagen
The company, headquartered in Prato, employs more than 160 people.
New Egypt-Greece-Greece-Algeria service of Tarros and Diamond Line
The Spezia
Will have weekly attendance and will be inaugurated on June 28
Port of Gioia Tauro, ok of the CSLP to the surgeries for ro-ro and ro-pax vessels
Joy Tauro
Approved the functional technical adjustment to the PRP
Uiltransport, towards mobilisation of Italian dockports from 17 to June 23
Rome
Recovery of purchasing power, security and greater protections are the demands
Michail Stahlhut (Hupac) is the new president of UIRR
Brussels
Jürgen Albersmann (Contargo) appointed Vice-President
Terminals Italy passes to the Logistic Pole of FS Group
Rome
Mercitalia Logistics has become sole partner of the firm
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
The assembly of Assagents will be held in Genoa on June 25.
Genoa
Event entitled " Mari inquieti. Routes and conflicts : the incognition of traffickers "
Conference on the safety and optimisation of the flow of passengers in ports and borders
Rome
Organized by the ICSA Foundation, it will be held on June 12 in Rome
››› Meetings File
PRESS REVIEW
How multinational shipping lines frustrates growth of African counterparts
(Vanguard)
Deutsche Bahn Schenker takes CVC, Maersk, DSV and Bahri into final round, sources sa
(Reuters)
››› Press Review File
FORUM of Shipping
and Logistics
Relazione del presidente Mario Mattioli
Roma, 27 ottobre 2023
››› File
From 2026 it will become mandatory for the reporting of containers lost at sea
From 2026 it will become mandatory for the reporting of containers lost at sea
Washington / Singapore/Brussels / London
Kjaer (WSC) : significant progress in the safety of navigation and the safeguarding of the environment
Emiratense ADNOC Logistics and Services buys Navig8
Abu Dhabi
Transaction of the value of approximately 1,4-1, 5 billion
Part of the former Tubimar area of the port of Ancona will be reserved for the development of the nautical shipbuilding industry
Ancona
Approved an act of address
Tomorrow La Méridionale will inaugurate the Livorno-Île-Rousse ferry service.
Marseille
Expected three weekly departures
The first July Maersk will introduce a Fossil Fuel Fee
Copenhagen
The new superb will gradually replace the Bunker Adjustment Factor and the Low Sulphur Surcharge
Fit Cisl, necessary to ensure the full operation of the AdSP Management Committee of Western Liguria
Genoa
Bilog, the enterprises join the AdSP of the Eastern Liguria and the Municipality of Piacenza
The Spezia
Vittorio Torbianelli has been appointed Extraordinary Commissioner of the AdSP of the East Adriatic Sea
Rome
Brothers Cosulich, new tanker bunker chemical bunker IMO2
Genoa
It is the first in the fleet ready to transport methanol
COSCO will carry out the dual-fuel upgrade of four new container ships from more than 16,000 teu
Shanghai
Renewed the Cda of Interport Padua
Padova
Luciano Greco is the new president
Self-transport enterprises operating with the port of Genova introduce a "congestion fee"
Genoa
In Venice, the Academy of Logistics and the Sea was established
Venice
It is the fruit of the collaboration between ITS Marco Polo Academy, Vemars and CFLI
Signed the contract for the electrification of the docks at the port of Termoli
Bari
In the programme works of the total value of around 4.5 million euros
Downturn in the quarterly financial performance of Danaos and MPCC
Athens / Oslo
The two companies have fleets of 69 and 56 container ships respectively
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