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Companies

EMC tops 4Q earnings table but minority shareholders sue Evergreen directors

Evergreen Marine Corp (EMC), the Taiwan listed marine arm of the Evergreen Group posted the highest EBIT earnings margin amongst the main container carriers in 4Q 2024, with EBIT operating profits reaching NTD 4.7Bn (US$150m) for an EBIT margin of 6.8%. Full year operating profits reached NTD 34.7 Bn ($1,083m) while net profits hit NTD 35.3 Bn ($1,001m), with the company directors proposing cash dividends to shareholders of NTD 10 per share with a total payout of NTD 21.4 Bn at a dividend payou

Markets

First Asia Europe CoFIF futures settlement imminent

Short covering on the first freight futures that will expire on 29 April kept EC2404 prices up, although futures contracts for rates expiring after April registered small declines. Traders liquidated another 37% of their positions to cut the open interests (OI) for EC2404 from 11,899 lots to 7,511 lots. The EC2404 open interest peaked at 134,537 on 22 Dec 2023 and has been sliding since then. At 7,511 lots, the open interests for EC2404 amounted to some $110m. Since only the losses/profits of th

MarketPulse

Market Pulse 2024 Week 14

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202414] The Baltimore bridge incident failed to lift freight rates, with Transpacific rates still sliding after initial fears of disruptions to the US supply chains receded. The brief spike in both import and export spot rates from the US East Coast were quickly reversed as the Transpacific rate weakness pulled down the SCFI last week despite encouraging hikes on the Asia-Europe, Middle East and Latin America rates. The Red

Services

ESL/KMTC/TSL/GFS to launch new Cosmos (CMX)/AIM2/Galex 2(GLX2) service

Emirates Shipping Line (ESL), KMTC, TS Lines (TSL) and Global Feeder Shipping (GFS) will jointly launch a new Cosmos (CMX)/AIM2/Galex 2 (GLX2) service from 2 April 2024 connecting Shanghai, Ningbo, Dachan Bay, Jebel Ali, Sohar, Port Klang, Shanghai. The service will turn in 6 weeks using 6 ships of 3,000-4,600 teu starting with the 4,398 teu BF GIANT and followed by the 2,954 teu TS MELBOURNE, 4,636 teu ZHONG GU GUI YANG, 4,130 teu REN JIAN 19, 4,331 teu TS SINGAPORE and a last ship still to be

Services

Wan Hai, IAL, KMTC launch new Southeast Asia-India 8 (SI8)/Asia-Indian Subcontinent 5 (AIS5) service

Wan Hai, Interasia Lines (IAL) and KMTC will jointly launch a new Southeast Asia-India VIII (SI8)/Asia-Indian Subcontinent 5 (AIS5) service from 26 April 2024 to connect Jakarta, Surabaya, Singapore, Port Klang(N), Mundra, Nhava Sheva, Port Klang(N), Jakarta. The SI8/AIS5 service will turn in 28 days using 4 ships of 2,700 teu on a weekly frequency, with Wan Hai contributing the 2,702 teu NAJADE and 2,741 teu WAN HAI 309, alongside the 2.556 teu KMTC YOKOHAMA and a yet to be named ship from IAL

Markets

Apr 1 GRI on the way

Transpacific rates continue to fall sharply, with increasing pressure on carriers to lower their contract rate offers. The gap between current spot rates and asking rates for the new 1 May 2024 contracts remain very wide, with the majority of contracts still not concluded. After failing to push through the 15 March GRI, carriers are also facing similar resistance to the 1 April GRI of $1,000-2,000/feu with the low market conviction that the hikes will stick. Although Transpacific freight volume

Markets

CoFIF rebound on rate hike hopes

CoFIF freight futures staged its first rebound since the end of 2023, with price, daily trading volumes and Open Interests rising in tandem. Last week’s buying interests in EC2404 for contracts expiring on 29 April  were driven by both short covering and profit taking in response to the planned April rate hikes to Europe, with quoted rates already starting to tick up for the first time since January with various Asian carriers raising their spot rates from 3,000-3,100 per feu to $3,600 while the

Port Throughput

Port Throughput May Up By 0.7% YoY

Global container port throughput has reached an estimated 905m in 2023, representing a annual growth of 0.7% compared to 2022. China has withheld the publication of their official container port handling statistics for the last 3 months, with official data only available to November 2023 which showed YTD growth at Chinese ports (including Hong Kong) to have reached 3.9% in the first 11 months of the year. The Chinese port data has been inflated since 2022 with Chinese throughput growth outpaci

Companies

Carriers playing catch-up will further tilt supply-demand imbalance

ONE announced an aggressive midterm plan on 19 March to grow its operated fleet to 3m teu by 2030 which represents a 66% growth from its current fleet of 1.8m teu, at an annualised growth rate of 10% a year. The plan entails capital investments of $25 Bn and a further $10 Bn in associated assets over the next 5 years, which could also include the transfer of some of the assets from its 3 shareholders (NYK, MOL and K Line). The move by ONE represents a belated attempt to regain market share, aft

MarketPulse

Market Pulse 2024 Week 13

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202413] The global containership fleet has reached 29m teu last week as new vessel deliveries continued to enter the market at a brisk pace with close to 200,000 teu delivered over the past month compared to just 2,200 teu that was scrapped. Despite the rapid fleet growth, charter rates have continued to rise with carriers undeterred by the recent freight rate correction with several of them still eyeing market share growth.

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