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MarketPulse

Market Pulse 2024 Week 10

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202410] The freight rate correction gathered pace after carriers failed to defend their pre-Chinese New Year gains with the SCFI shedding 6.2% last week. Although the Red Sea dividend remain in play with spot rates still 96% higher compared to December last year, cargo demand has not rebounded sufficiently after the Chinese New Year holidays to provide rate support with carriers unable to mount a serious 1 March GRI attempt

Services

COSCO/OOCL add Mediterranean Feeder/Israel West Med (MFS/IWM) service

COSCO and OOCL have added a new Mediterranean Feeder Service (MFS) / Israel West Med (IWM) service with the injection of a ship to Zim's Tyrrhenian Container Line (TYR) service. COSCO has been taking slots on the Zim service since November 2023. The TYR/MFS/IWM calls at Ashdod, Haifa, Fos, Genoa, Salerno, Ashdod and turns in 3 week with 3 ships of 1,100-1,400 teu. COSCO will deploy the 1,223 teu FREDERIK on the service from 13 March 2024 to join Zim's 1,134 teu ASIATIC KING and 1,421 teu NAVI B

Services

Maersk replaces PA1 with new HP3 and revised IA88 intra-Asia services

Maersk has launched a new HP2 intra-Asia service calling at Busan, Hakata, Shanghai, Ningbo, Kaohsiung, Hong Kong, Haiphong, Danang, Yantian, Hong Kong, Nansha, Kaohsiung, Busan from 29 February 2024. The HP3 service will turn in 3 weeks and deploys 3 ships of 1,757-1,781 teu - the NORDTIGER, CELANDINE and HELGOLAND. Maersk HP2 service rotationThe HP2 service replaces the current PA1 services where the 3 ships were previously deployed. The PA1 called at Busan, Hakata, Moji, Hibiki, Busan, Sha

Services

Evergreen to launch North China-Indonesia (NCI) service

Evergreen will launch a new North China-Indonesia (NCI) service calling at Xingang, Dalian, Qingdao, Gunsan, Ningbo, Nansha, Ho Chi Minh City, Tanjung Pelepas, Jakarta, Surabaya, Manila (S), Batangas, Hakata, Xingang. The NCI service will start from 29 March 2024 at Nansha with the 1,904 teu EVER CHART. It will turn in 5 weeks using 5 ships of 1,900-2,600 teu to cover 7 different countries in the North Asia to Southeast Asia corridor.

Markets

Comparing Existing Container Freight Futures Products

There are basically two freight futures products one being Freightos Baltic's CFFA(container freight forward agreement) being traded at SGX (Singapore Exchange) and CME (Chicago Mercantile Exchange), and INE's CoFIF (container freight index futures). INE (International Energy Exchange) is the exchange that faces offshore traders/users under Shanghai Futures Exchange. Key findings: 1. CoFIF has liquidity while CFFA doesn't. Liquidity is probably 99.9% of the determining factors about whet

Port Congestion

Port Congestion Eased Further Last Week

Global port congestion continues to ease with a notable fall in congestion at Chinese ports. Overall congestion at North Asia’s ports have dropped to their lowest levels since June 2021, with no serious congestion reported apart from Ningbo and Shanghai but average waiting times have fallen to less than 1 day. North American port congestion is limited at Oakland (up to 6 days), Tacoma (up to 4 days) and Savannah (up to 3 days) with no congestion reported at the main terminals at LA/LB and NY/NJ

Companies

CMA CGM EBIT turns negative in 4Q

CMA CGM reported 4Q 2023 EBITDA earnings of $630m for its container shipping business, out-performing Maersk for the second straight quarter. Maersk had reported EBITDA of $196m and EBIT losses of -$920m in the quarter . CMA CGM’s EBIT losses is estimated at between -$670m to -$770m, based on depreciation and amortisation expenses of $1.3 Bn to 1.4 Bn in the 4th quarter, with the company no longer reporting its EBIT figures since 4Q 2023. The 4Q EBIT losses dwarfs CMA CGM’s previous quarterly p

Companies

Matson Volume Down While Average Freight Rates Up in 4Q

Matson reported full year results on 20 Feb, with further details to the headline earnings already provided in Jan. Matson was able to buck the trend of negative operating profits reported by its larger rivals, with liner operating earnings of $66m in the 4th quarter of 2023, while group level net profits reached $62m. Matson’s container liftings dropped 5% YoY in the 4th quarter, and although overall utilisation levels continued to drop in 1Q 2024, it has outperformed last year’s trend, in lin

Markets

Rise in Charter Rates Accelerates

Containership charter rates continued their rise with the Red Sea crisis still pushing up demand. Rates for larger ship are edging up at a faster pace with demand remaining high while supply is limited. Rates are 15-30% in the larger segments above 4,000 teu are 15-30% higher compared to a year ago, with charter periods lengthening to up to 3 years. Carriers are taking advantage of increased demand and high freight rates to the Red Sea region (including Aden, Jeddah and Djibouti) to add new ser

Markets

Spot Rates Keep Most Recent Gains

The Red Sea crisis continues to drive the container market as the number of ships diverted to the Cape route hit a fresh high with no signs of abating. This will continue to create a capacity shortage across all routes, with the Cape diversions and incremental capacity needed to connect to Red Sea and Med ports already soaking up more than 7% of the global containership fleet. Freight rates retained most of the January gains, with the SCFI shedding only 5.8% of its pre-Chinese New Year peak whil

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