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
Global port congestion receded slightly last week, with improvements in China offset by the worsening delays at North American ports while there is no significant change in the situation in Europe. North American ports currently account for 39% of the global congestion, outpacing the rest of the main regions with North Asia’s share reduced to 24% while Europe/Med ports remain at 19%. The 3 main regions account for 82% of global congestion, with no major flare up in the congestion situation in
The soft freight market is starting to drag down charter rates but a major correction is not on the cards given the limited availability of open tonnage until early next year. Carriers remain very keen to lock in ships especially in the panamax and larger segments, with several fixtures for charters commencing only in 2023 have already been signed with periods stretching for up to 5 years. Second hand transactions remain brisk, with purchaser interest remaining very strong with asking prices c
VASI shipping started a new Singapore-Laem Chabang shuttle. The weekly service has started with 1756 teu NORDPANTHER at Singapore on 7 July 2022. It is the forth similar Singapore-Laem Chabang shuttle after similar shuttle ran by CNC, MSC and X-Press. CMA CGM is taking slots on this shuttle as from July 21.
Global container handling volumes in June remain robust but there are some signs that volumes may have peaked for the year already. Weakening demand in the US and Europe is filtering into port volumes. North American ports slipped in June after hitting a record high in May with the trend expected to persist over the coming months. In Europe, Rotterdam posted a -6.9% drop in handling volumes in the second quarter after a -1.7% drop in the first quarter with volumes to Russia badly affected by s
Aggregate container volumes at North American ports remain elevated in June but have come off the peak recorded in May, sliding by an estimated 5.4% during the month. Total volume in June was 5.3m TEU, up 5% YoY because June 2021 volume was affected by congestion. Total volumes in the next few months are expected to continue this trend with renewed strength at East Coast ports, while West Coast volumes remain muted. Oakland volumes will be hit in July as gate operations are limited. Overall vo
K&N reported CHF796mn net profit for 22Q2, up 78% YoY but down 4% QoQ, in line with the consensus estimates in the capital market. Seafreight segment contributed 55% of K&N's EBIT YTD, which was once the normal EBIT mix for K&N before 2015. K&N has more than doubled its dividend pay out during 22H1 to CHF1.2bn, comparing to 21H1's CHF0.5bn. Another CHF550mn were used in share buyback. Those distributions helped lower K&N's net cash position from CHF416mn at end of 2021 to CHF258mn at end of 22
Vessel congestion at the port of Oakland increased over the past week as trucker protests against California’s Assembly Bill 5 (AB5). If protests continue into this week, vessel queues will lengthen further as carriers will not be able to divert cargo already loaded for Oakland at short notice. However, as Oakland accounts for less than 8% of total container volumes in the US West Coast, the impact will not significantly affect overall North American congestion unless the protests spread to Los