Congestion at Asia ports have cleared gradually after heavy rain in early August from typhoon Doksoru and Khanun caused flooding across multiple North Asian regions. Southern California ports were also hit by Hurricane Hilary over the weekend, but port operations were not materially impacted with both the Port of Los Angeles and Long Beach to re-open on 21 August after the partial shutdown the day before. There were no containerships waiting at the San Pedro Bay anchorage, and no buildup in po
OOIL’s 1H23 earnings fell 74% HoH. Earnings are still very good comparing to historical average. RoE was still stayed close to 20% despite of the large sum of idle assets (e.g. cash) on balance sheet. 74% sequential drop in earnings are a touch better than the industry average which is 83% HoH fall. OOIL’s unit costs fell 17% HoH relative to the industry’s average 11% HoH fall.
Wan Hai reduced EBIT losses by 37% QoQ in 2Q 2023. Like ZIM, Wan Hai also suffer from over-exposure on the weak Transpacific and Intra-Asia markets but it has been shielded from the rapid decline on the Oceania trades where Wan Hai do not have a presence. Wan Hai’s failure to invest in SOx scrubbers has also impacted its operating margins, with all of its ships using the more expensive LSFO.
Zim recorded its worst quarterly loss since its financial restructuring in 2014, with the 2Q 2023 net loss reaching $213m. ZIM’s EBIT loss expanded in 2Q by 11 times QoQ. Zim’s 2Q EBIT margin of -11.2% places it at the bottom of the earnings league table comprising of 10 of the top 12 carriers, with Zim the worst of the 3 carriers that dropped into loss making territory along with Wan Hai (net loss of $76m) and Yang Ming (net loss of $4m). Low operating efficiency and high charter expenses have
Maersk and X-Press Feeders will jointly launch a new Safina/China-Jebel Ali Express (CJX) service that connects Ningbo, Shanghai, Shekou, Tanjung Pelepas, Port Klang, Jebel Ali, Colombo, Singapore from 19 September 2023. The service will turn in 6 ships of 4,000-5,000 teu, with 4 ships from Maersk and 2 ships from X-Press Feeders. The service will replace the existing China Jebel Ali X-Press/Arabian Express (CJX/ABX) and Straits Middle East X-Press/Arabian Star (SMX/ABS) service that calls res
MSC will revise the Asia-US West Coast Sentosa service rotation for the 3rd time this year with calls at Port Klang, Singapore and Busan reinstated together with an extension of the service to India. The revised service is renamed as Sentosa Shikra as it incorporates the existing FE-India Shikra service. The Sentosa service was first launched in April 2021 and has gone through 6 major iterations: * April 2021 to September 2022 - originally focused on the Southeast Asia market calling at Si
Swire Shipping will revamp its North Asia-Oceania Service (NAT) from October 2023 with he service frequency upgraded from 44 days to every 30 days. The revamped NAT will deploy 3 mpp ship of 2,118 teu (KIRIBATI CHIEF, NOUMEA CHIEF, SAMOA CHIEF) on a 90 day rotation that calls at 15 ports - Kaohsiung, Changshu, Yokohama, Osaka, Busan, Lae, Motukea, Noumea, Auckland, Timaru, Tauranga, Marsden Point, Noumea, Vavouto, Subic Bay, Sri Racha, Kaohsiung. The container/breakbulk service will provide t
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202334] Market sentiment has turned negative again, with carriers unable to retain the recent rate increases as the SCFI slipped by 1.2% last week. The setback will make it harder for carriers to push for the next round of rate hikes in September, with no signs of capacity management in place. The idle fleet remains low even as new ship deliveries continues apace. The mounting losses at Zim has forced it to rationalise capa
Zim will withdraw its ships from the Asia-Oceania trade and replace them with slots on MSC's enhanced Oceania services suite from October 2023. The move will affect 14 ships of 1,100 teu to 2,800 teu that Zim currently employs on 3 services on this route. Zim's existing China-Australia Express (CAX) service will be replaced by slots on MSC's Panda service that calls at Busan, Qingdao, Shanghai, Ningbo, Hong Kong, Yantian, Nansha, Brisbane, Melbourne, Sydney, Brisbane, Busan. Zim's current Thai
Maersk has added additional sailings between China/Korea and the US East Coast on its extra loader program for overflow cargo, retaining the routing via the Panama Canal despite ongoing draft restrictions and congestion. Maersk has deployed 8 extra sailings to the US East Coast since the beginning of July 2023 using ships of 3,000-7,000 teu, of which 6 sailings took the Panama route without encountering any significant delays, while 2 sailings were routed via the Suez Canal. * GSL ELEFTHERIA