The CoFIF market went into steeper backwardation as the spot SCFIS went up 12% WoW while the CoFIF contracts were down about 4-6% WoW across the board. Liquidation of the Open Interest continued but on a slower pace than previous weeks. There are indications that rates are peaking as the market looks beyond the current tight market to the expected rate correction post-Chinese New year, with the SCFI registering its first drop last week after 8 consecutive weekly hikes. Spot freight rates compi
Maersk and Hapag-Lloyd announced on 17 January 2024 the formation of a new long-term global alliance named Gemini Cooperation that will start from February 2025. The move comes one year after the announcement of the break up of the 2M partnership between Maersk and MSC on 25 January 2023 with a 2 year notice period that will take effect from January 2025. Hapag-Lloyd has also given a one year notice to its partners in THE Alliance for an early termination of its participation in the partnership
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202404] The freight rate escalation has peaked as carriers look beyond the current Red Sea driven capacity shortage to the post-Chinese New Year slack. After 8 consecutive weekly hikes since the end of November that raised the SCFI by 126%, the weekly gains have slowed down. Despite a widely expected correction, freight rates are still expected to retain most of its recent gains after the Chinese holidays as the shortage of
Zim has launched a new South China Thailand Express (SXT) service connecting Nansha, Dachan Bay, Sihanoukville, Laem Chabang, Bangkok, Cai Mep, Nansha from 7 January 2024. The service turns in 2 weeks and deploys the 1,645 teu SEA OF LUCK and 1,930 teu KANWAY FORTUNE.
Econship has introduced a direct service between Indonesia and Russia with the first sailing made by the 1,620 teu BOSON on 9 January 2024. The service will call at Jakarta, Nhava Sheva, Mundra, Jebel Ali, Novorossiysk and will use the Red Sea/Suez route despite the threat of attacks by Houthis on the Red Sea.
Maersk and Hapag-Lloyd announced on 17 January 2024 the formation of a new long-term global alliance named Gemini Cooperation that will start from February 2025. The move comes one year after the announcement of the break up of the 2M partnership between Maersk and MSC on 25 January 2023 with a 2 year notice period that will take effect from January 2025. Hapag-Lloyd has also given a one year notice to its partners in THE Alliance for an early termination of its participation in the partners
Be aware if you have been expecting interest rate cut this year: Ocean freight that may have contributed to a chunk of inflation during 2021-2022 have staged a come back. Looking back the past few years, the correlation between freight-to-cargo ratio and US inflation averaged 74%. The take-off in May 2020 and peak in July 2022 of the two lines coincide with each other while the flooring of the freight-to-cargo ratio led the US inflation by few months. The swing from May 2020 to July 2022 for t
It has been a volatile week in the CoFIF market that saw a limit-down day last Tuesday (9 Jan) and a big rally on Friday (12 Jan). Nevertheless, liquidation in the CoFIF market continued for the 3rd week albeit at slower pace. Open interests in CoFIF peaked on 22 December and have since fallen 69%. Further volatile trading is expected this week after the SCFI’s 8.1% gain on the Asia-North Europe route and the SCFIS which jumped by a further 49.7% on 15 Jan after the previous week’s 70.9% rise.
With the stakes raised amidst heightened risks of retaliatory Houthi attacks on ships in the Red Sea, carriers continue to take radically different approaches to their Suez services. CMA CGM and a handful of niche carriers continue to make Suez transits while all of the other main carriers have shifted to the Cape route. The Asia-Europe trade faces a severe capacity shortage in the coming weeks, with some 70 additional ships required to maintain weekly sailings on the 30 regular services on th
Charter rates continue to rally as carriers raise their tonnage demand in tandem with the rising freight rates on Red Sea and Suez routes which has also spilled over into the Transpacific routes last week. Activity is high across all size segments with clear rate gains across the board apart from the smaller ships below 1,300 teu that continued to weaken. Maersk took the 15,258 teu newbuilding ONE FOCUS, in a private deal with ONE for an unspecified period for deployment on the FE-USWC for its