The main EC freight futures contracts for December 2024 (EC2412) tumbled by 23% over the past week on high trading volumes. Carriers continued to slash FAK rates to North Europe, with market sentiment remaining bearish. Contrarian views are providing support for EC2410 on the belief that October contracts have been oversold at its current 52% discount to the SCFIS. Open interests increased by 11% WoW, indicating the high conviction that traders have on their positions.
MSC and the Premier Alliance (the new name that ONE, HMM and Yang Ming have chosen to replace the current THE Alliance) have announced a new partnership on the Far East-Europe trade that will involve slot swaps covering 5 services to North Europe and 4 services to the Mediterranean commencing from February 2025. In addition to these, MSC will independently operate 2 additional services to North Europe and 2 services to the Med, ensuring that it remains the largest carrier on the Far East-Europ
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202437] MSC and the Premier Alliance have announced a new partnership covering 9 Asia-Europe services commencing in February 2025 which will set the stage for a fresh alliance competition next year with the newly formed Gemini Cooperation and existing OCEAN Alliance. These carriers remain locked in their current price war as the SCFI tumbled by a further 8% last week with the Asia-North Europe and Asia-USEC seeing the sharp
CMA CGM's intra-Asia arm CNC will launch a new Luzon Visayas Mindanao Express (LVMX) service connecting Manila (N), Cagayan de Oro, Cebu, Manila (N) from 22 September 2024. The service will operate on a weekly basis with the geared 1,037 teu SOFRANA TOURVILLE.
Sinokor, TS Lines and X-Press Feeders will launch a new China-Middle East service branded respectively as the Sinokor Gulf Service 2 (SGX2), Central China Middle East Express (CMX) and Jebel Ali-Far East X-Press (JFX) that will call at Qingdao, Shanghai, Ningbo, Shekou, Port Klang, Jebel Ali, Colombo, Qingdao. The service will turn in 6 weeks and will deploy 6 ships of 6,000 to 8,000 teu starting with the 8,030 teu MUMBAI BRIDGE at Qingdao on 23 September 2024.
Bengal Tiger Lines will introduce a new Colombo-Mangalore (GMT) service from 24 September 2024. The service will deploy the 1,368 teu TAKUTAI CHIEF that will connect Colombo's SAGT with Mangalore on a weekly basis.
Swire Shipping's New Zealand coastal operator Pacifica Shipping has withdrawn the 1,368 teu TAKUTAI CHIEF from its New Zealand coastal service from 30 August 2024. The ship was first introduced on the service in September 2022 to connect Auckland, Lyttelton, Marsden Point, Tauranga, Auckland. The New Zealand intra-island domestic service will continue to be offered by the 1,732 teu MOANA CHIEF. The TAKUTAI CHIEF will be chartered out by Swire Shipping after completing its drydock on 24 Septemb
Carriers are rushing to secure ship contracts despite rising newbuilding prices and growing concerns over over-capacity by the time these ships hit the water in 2027-2029. COSCO is the latest carrier to join in the new order frenzy with a fresh order revealed last week for 12 units of 13,700 teu at its COSCO Yangzhou shipyard for delivery over 2027-2029 bringing the total capacity contracted in August to a record high of over 1.4m teu, including several Letters of Intent (LOIs) that are expect
COSCO concluded the 1H 2024 interim reports for the publicly listed carriers with its EBIT earnings of $566m for its container shipping business for a margin of 25%, down from the 32% margin in the same quarter last year due mainly to higher unit costs during 2Q 2023. Average freight rates were 13% higher for COSCO against the CCFI’s 53% gain, while container volumes increased marginally by just 1%. Aggregated revenues of the 12 main listed carriers increased by 10% YoY while volume increased 8
Asia-Europe spot rates continued to slide in the last week of August with the SCFI rates to North Europe slipping by 11.9% while rates to the Mediterranean dropped by 9.7%. Carriers continued to undercut each other with FAK rates dropping to the $5,500/feu level with no action to cut capacity in September as blanked sailings are only planned in October. These measures would come too late to arrest the rate decline, with current EC futures already pricing in a 50% reduction to current levels by