All News

Companies

Maersk 3Q: BTE; Maintain Guidance; Cut Industry Demand Forecast

Maersk reported 3Q before market open today (2 Nov 2022). Earnings turned out better than expected (BTE) but guidance stayed unchanged, suggesting a bearish outlook. BTE 3Q Results: EBIT $9.48bn, up 5% QoQ and 62% YoY, beat Bloomberg consensus estimate of $8.63bn. The BTE earnings were due to higher contract freight rates. During the period, Maersk continued to experienced costs increase particularly in bunker and depreciation, which including chartering. Maersk's 3Q volume dropped 8% YoY and 3

Companies

ONE consortium seals Seaspan deal

Poseidon Acquisition Corp, an entity formed by ONE together with the 3 controlling shareholders of Atlas (Fairfax Financial Holdings, the Washington family and David Sokol, chairman of Atlas) have entered into a definitive agreement on 1 November 2022 to acquire Atlas in an all-cash transaction for an enterprise value of $10.9 Bn. Poseidon will acquire 32% of the outstanding common shares of Atlas not owned by the 3 controlling shareholders for $15.50 per share in cash, which represents a 34% p

Ships

Don't count on demolition being a factor in 2023

Expectations of a surge in containership scrapping in the coming year is unwarranted as many of the older ships have been given extended lifespans in the last 2 years, having completed their class renewal surveys/special surveys that would push their useful lives until 2026-2027. Based on Linerlytica’s analysis of the containership fleet’s special survey due dates, there are less than 300 ships with a total container intake 700,000 teu that will have their 20 or 25 year surveys due in 2023, wit

Services

SUN Line adds new Stockholm-Hull-Rotterdam service

Thor Svecon Group (TSG) will add a fourth ship to its SUN Line service to offer a new connection between Stockholm, Hull and Rotterdam using the 646 teu PERSEUS from 7 November 2022. SUN Line currently operates the 304 teu ODIN and FREJ, together with the 360 teu ALBREK on its existing service that connects the ports of Vasteras, Sodertalje, Oxelosund, Antwerp, Amsterdam and Hull. SUN Line's existing Sweden-Hull-Benelux service

Ports

Global Port Throughput Down In Sep

Global port throughput may be down 4.3% Mo and 0.2% YoY, based on Linerlytica's port sample of over 200 ports globally. Higher than expected volumes at Chinese ports has lifted global estimates for September marginally, but the trend remains negative with volumes still falling by 4.3% on a month to month basis, with a sharper drop expected in October. YTD volume growth in the first 9 months of 2022 is estimated to have reached 1.2% compared to the same period last year. But slower growth in

Port Congestion

Port Congestion Continues to Ease

Global port congestion continues to ease, although the number of ships waiting at anchor at Chinese ports would have fallen more if not for some 9 ships of over 10,000 teu that are currently idle at various North Asia locations. These ships are not waiting to berth and have been temporarily idled as carriers are forced to remove excess capacity due to the softening market demand. However, most of these ships are scheduled to return to service within the next 2 weeks with carriers still reluctan

Ships

COSCO placed methanol-dual newbuilding order

COSCO has confirmed a new order for 12 new methanol-dual fuel ships of 24,000 teu to be built at 2 of its 50% owned shipyards – Nantong COSCO KHI and Dalian COSCO KHI. These ships cost $239.85m each and 7 units will be under OOCL’s account. It adds to 12 units of 23,000 teu that were ordered in March and October 2020 on OOCL’s account for delivery in 2023 and 2024. The earlier units will operate on conventional fuel with scrubbers and cost $156-157m each. COSCO is the second major carrier to c

MarketPulse

Market Pulse – 2022 Week43

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202243] Freight rates will continue to soften into November with carriers unable to push through any material rate increases planned in the coming month. The SCFI index slipped 4.6% last week, with more weakness expected especially on the Asia-Europe and Asia-US East Coast routes as capacity utilisation remains under pressure. The Middle East Gulf is the only tradelane where rates are enjoying a boost with capacity utilisati

Companies

TS Lines plans Hong Kong IPO

TS Group, the parent company of TS Lines, has filed for an Initial Public Offering (IPO) in Hong Kong on 28 October 2022, following similar plans by CUL and LC Logistics (parent of BAL). According to information provided in its IPO filing, the intra-Far East trade accounted for 42% of TS Line's total revenues in the first half of 2022, and the share has shrunk from 95% in 2019 and 92% in 2022 to the current 42%, due to the growth of  Asia-Oceania and Transpacific which currently account for 26

Companies

ONE 3Q: BTE downcycle

ONE reported better-than-expected  22Q3 (Company's FY22Q2) results during lunch break today (31 Oct 2022) but guided beginning of an earning  down cycle. Net profit for 22Q3 was $5.5bn, up 31% YoY but flat QoQ. We have expected 10-20% QoQ drop in earnings for the industry for 3Q. The positive surprises came from the average freight rates which was up 5% YoY, beating the 7% QoQ drop in CCFI on likely two factors: (1) accounting delay in revenue booking because ships, particularly those in the l

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