Asia-Europe rates are faltering with the capacity overhang in play while demand has started to slow. Port congestion along the Asia-Europe corridor is still keeping capacity growth in check. Although capacity utilization remains healthy and is still running at 3% higher compared to a year ago, the earlier space pressure has eased with average utilization for the week before falling to 92% as opposed to the preliminary reading of 96% reported last week as a few late sailings departed from the las
Continued spot rate weakness and renewed Gaza ceasefire talks brought the longer dated EC futures contracts down to their daily limit on 19 August. EC2408 contracts held up with the SCFIS falling by less than expected, down by 2.3% WoW after market close. EC2410 also largely held its ground as the October contracts are already trading at a 48% discount to current spot rates. The latest EC2410 closing price has built in weekly drops of 7% each week over the next 2 months against the SCFIS’ 1-2%
Maersk continues to underperform the rest of the market with the lowest EBIT earnings margins in the 2nd quarter of 2024 compared to all of its main publicly listed peers. Maersk’s Ocean shipping segment recorded EBIT margins of just 5.6% for the quarter compared to an average margin of 21.3% posted by 8 of its main rivals with only COSCO and OOCL yet to report their earnings figures. It marks the 3rd consecutive quarter that Maersk was placed at the bottom of the earnings league table, with i
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202434] The SCFI rebounded by 0.8% last week but is unlikely to hold on to these gains with freight rates coming under pressure on both the Asia-Europe and Transpacific routes. Carriers failed to push ahead with the planned 15 August transpacific rate hikes and allowed rates to the US West Coast to slip with the lower rates to show up on the coming week’s SCFI reading. Carriers will be making another push for a September rat
SeaLead will launch a new Far East-India-Djibouti (FID) service calling at Shanghai, Ningbo, Nansha, Port Klang, Colombo, Nhava Sheva, Mundra, Djibouti, Colombo, Shanghai from 5 September 2024. The FID service will turn in around 6 weeks, with 2 ships currently scheduled to join the service in September - the 4,636 teu ZHONG GU CHENG DU and ZHONG GU NAN CHANG.
China United Lines (CUL) has launched a Red Sea 1 (RS1) service connecting Qingdao, Shanghai, Nansha, Jeddah through slots on the Far East-Mediterraean Service (FEM1) operated by CStar Line and Uniglobal Shipping (UGL). The FEM1 service offers an extended service from China to Turkey via the Red Sea and Suez Canal calling at Qingdao, Shanghai, Nansha, Jeddah, Ambarli, Izmit, Jeddah, Port Klang, Qingdao. It mirrors a similar Asia-East Mediterranean (AEM) service that CUL had operated irregularl
X-Press Feeders have launched a new Thailand Singapore X-Press (TSX) service calling at Singapore, Laem Chabang, Singapore from 6 August 2024. The TSX service turns in 1 week and deploys the 1,809 teu GREEN EARTH on a weekly frequency.
Interasia Lines (IAL), Pacific International Lines (PIL) and SeaLead will jointly launch a new China-Bangladesh service calling at Ningbo, Shanghai, Shekou, Chittagong, Ningbo from 31 August 2024. The service is branded respectively as the IAL Bangladesh Express (IBX) by IAL, China Chittagong Express (CCE) by PIL and Far East-Bangladesh (FBX) service by SeaLead. The IBX/CCE/FBX will turn in 4 weeks, with using 3 ships initially with 1 blank sailing in each cycle. The ships deployed are the 1,51
Market attention has shifted to newbuilding orders, with MSC confirming a new order for 12 ships of 19,000 teu at Zhoushan Changhong while Seaspan has announced a 23 ship order made earlier in June comprising of 9,000 teu, 16,000 teu and 17,000 teu units with charters to ONE and Maersk. A further order for 4 units of 9,000 teu ships were novated to an undisclosed carrier. Charter rates have stabilized in the past week, ending an 8-month run that has seen average rates rising by over 150% since
Bangladesh port congestion continues to build up over the past week with the number of ships waiting to dock increasing sharply while port operations remains disrupted in the aftermath of the collapse of the government. Although an interim government was formed on 8 August, there has been no improvements in the port situation with more than 20 containerships currently waiting to berth at Chittagong and average delays rising to 7-10 days. Ships operated by Bangladesh’s sole local container carri