Maersk's 22Q2 results beat capital market's estimate by a large margin. Actual EPS was $464 comparing to the highest estimate of $405 (source: Refinitiv I/B/E/S). Liner segment was still the key driver where Liner EBIT up 21% QoQ, which may be ahead of the industry average in 22Q2 on Maersk's higher-than-peers contract mix. Contract rates outperformed the spot market in the past few months. Such trend may continue for the rest of this year as spot rates could be under further pressure on a pot
Xinhua News Agency announced overnight that PLA will conduct military drills between 4 August and 7 August in areas surrounding Taiwan. We have found that 186 ports calls by 174 container ships/675k TEU capacity may be affected. Please see attached list for details of Trade/Operators/Services/Ships that are due to depart during the affected period. Download excel file [https://www.linerlytica.com/uploads/twspc/TaiwanCalls0804-0807.xlsx?utm_source=20220803]
The transpacific carriers landscape has changed significantly since 2019, with competition remaining very keen amongst the incumbent carriers even as newcomers carved out a 4% share of the market. MSC has been the most aggressive carrier, chalking up a 160% increase in liftings in the first 6 months of 2022 compared to the same period in 2019. However, MSC has struggled to maintain the growth momentum since the start of the year as it is heavily reliant on the weakening spot market. At the o
Global port congestion has continued to recede, due mainly to continued improvements at Chinese ports. Waiting times at all of the main Chinese ports are down to 1 day or less, with the total capacity waiting at North Asia ports down by 50% from its July peak. North American ports remain the most critical congestion hotspot accounting for 39% of the global congestion, with North Asia’s share reduced from 24% to 20% while Europe/Med ports increased marginally from 19% to 20%. The other regions
Transpacific freight rates have dropped further, with the SCFI assessment dropping to $6,694/feu but rates of $6,000/feu are now being offered by carriers which will continue to drive down the various spot rate indicators in the weeks ahead. There are no signs of rates rebounding in August, leaving very little room for rates to rally before the start of the winter slack season in October. Spot rates are now firmly lower than 12 month contract rates signed in May (ranging from $7,500 to $10,500
Chinese port volumes grew by 2.6% in the first half of 2022 despite the negative impact of the lockdowns across several major Chinese cities this year. The overall port volumes are partly inflated due to the shift from trucking to barge movements. Performance was mixed amongst the main ports, with Shanghai, Guangzhou, Hong Kong, Lianyungang and Yingkou all recording negative growth. Ningbo reported the largest gains of 8.7%, largely due to the diversion of cargo from Shanghai that was hit by l
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202230] Freight rates are continuing to weaken into August, with no peak season volume surge. Total vessel capacity departing from Asia has continued to increase with easing congestion at Chinese ports releasing more capacity on the linehaul routes last week. Capacity to the US East Coast in particular has risen to a record high, even as demand is softening with high retail inventories weighing down demand while port congest
ONE reported a strong performance in the second quarter with net profit rising sequentially by 8% QoQ. Net profits have exceeded $5bn in the last 2 quarters. To put this amount in perspective, ONE's 3 parents reported in aggregate about $4.5bn of losses at the ordinary result level (similar to earnings before taxes) for their container liner activities between 2005 and 2019. ONE’s revenue yield i.e. revenue generated per teu slot operated have outperformed the CCFI while unit costs excluding bu
What may have gone unnoticed in the ocean freight market is that the Trans Pacific eastbound air freight rates have quietly rebounded by 9% since hitting the low in April. The same airfreight price index and SCFI USWC index shares 87% correlation going back to the inception of SCFI in 2009. The diversion like what we have just seen is rare. Relative to ocean freight, air freight tends to carry cargo more time sensitive and of higher value. The rebound in air freight price may be due to a number
The inactive fleet remains largely unchanged at 24 ships for 74,395 teu as at 24 July 2022,which is a historical low level for our data series dating back to 2008. 13 ships for 26,367 teu are idle or awaiting phase in. 4 ships for 13,981 teu are Iranian owned ships. The idle ships list includes the Dioryx owned 4,398 teu MALIAKOS that have been idle since 26 April as the owners are still holding out for better charterer offers and the 9,403 teu JOSEPH SCHULTE that has been stuck at Odessa