Total 227 Posts
At least 2 carriers operating on the China-Baltic Russia route have suffered financial troubles. The 2,472 teu MYD JIMEI operated by Global Field Line (GFL) is currently stranded in the Baltics. In a letter to GFL customers dated 25 January 2024, the carrier requested for an additional payment of $3000/20' and $5000/40' to allow the company to settle outstanding payments to its local agent and port operator. The ship has been waiting to dock at St Petersburg since 8 January 2024. Another Russi
Newly established carrier Sea Legend has launched its own China to Red Sea and East Med connections via the Suez Canal that advertises Chinese Naval escorts and commercial armed guards on board their ships. The new service takes advantage of soaring freight rates to Red Sea and Med destinations due to the diversion of over 70% of the containership capacity to the Cape route since December 2023. The Sea Legend service connects Qingdao, Shanghai, Ningbo, Nansha, Djibouti, Jeddah, Sokhna, Aqaba, P
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
Unlikely a surprise to the market, liners are reporting sequentially lower 4Q 2023 results, which is in line with CCFI while the QoQ rebound in SCFI will likely only show in the liners' book in 1Q 2024. While the 4Q results may not be pleasing to look at, everything changed since the second half of December. COSCO reported earning alert, OOCL reported top line breakdown while the Taiwanese liners reported their December revenue this week. COSCO alerted 68% QoQ lower earnings during 4Q while O
Kalypso Compagnia di Navigazione (KCN), part of the RIF Line Group, has been placed in liquidation following the arrest of one of the ships it operated in Taranto on 14 December 2023. The 2,518 teu ZHONG GU XIONG AN was arrested in Taranto for unpaid bunker bills by its Chinese creditors. It was one of 4 ships chartered by Kalypso from Zhonggu for its Marco Polo service connecting China, Bangladesh and the Mediterranean that has been dormant since October 2023 after Zhonggu refused to allow the
Hapag Lloyd’s earnings during 3Q fell back to the pre-2020 level. Yet. Hapag Lloyd still lead the liner peers on EBIT margin and Return on Equity (RoE). Hapag-Lloyd has been consistently generating better EBIT margin than the other top 5 liners, save for COSCO, which are on a different set of accounting policies. The better RoE is attributable to both higher EBIT margin and better capital efficiency. Hapag-Lloyd has been cutting its fuel costs by both higher fuel efficiency and scrubber fittin
Taiwanese carriers reported 3Q 2023 financial results last week with their earnings decline accelerating in spite of the volume recovery. Aggregating the liners’ top line breakdown, volume was up 4% QoQ and 2% YoY while unit revenue was down 11% QoQ and 58% YoY. Interest and liquid investment income have become a significant addition to the carriers’ bottom lines as their cash balances are now comparable to the fixed assets on their balance sheets. Several off the charts data in EMC’s 3Q result
Zim recorded a net loss of $2,270m in the 3rd quarter, due mainly to a non-cash asset impairment write down of $2,063m. Adjusted EBIT losses excluding the non-cash items stood at -$213m for an EBIT margin of -16.7% which places Zim at the bottom of the carrier EBIT margin rankings for the 2nd consecutive quarter. Zim will receive a boost to its earnings of over $150m per quarter as a result of the impairment charge due to lower depreciation expenses going forward but it will not be enough to l
Key take aways from the 11 liner's 3Q results. The 11 liners represent 66% global container liner capacity. Figures in the following are aggregates of the 11 liners unless stated otherwise. 1. Liners were down to breakeven point. The average EBIT margin fell to negative 0.1% or broadly operating breakeven if we exclude only the liners that have made material provisions/write-back (COSCO); inorganic growth (Evergreen); and stopped to report (CMA CGM). Including COSCO, Evergreen and
Abu Dhabi Ports (AD Ports), the owner of Safeen Feeders, is reported to be in talks to acquire Indonesia’s Meratus Line in a transaction that could be valued at $2Bn. Meratus was reported to be seeking to sell its shipping and logistics business since July 2023, and AD Ports has emerged as the front runner in sales process. Meratus was established in 1957 in Surabaya, Indonesia and is the largest domestic operator in Indonesia. The company expanded its services to Papua New Guinea in February 20