Total 114 Posts
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202329] The resolution of the ILWU US and ILWU Canada port labour contract negotiations have removed the last hurdle to market normalisation, with port congestion set to ease further from its current level affecting 5.7% of the global fleet. This does not bode well for the container market that is increasingly struggling with surplus capacity. Zim downgraded its EBIT forecast last week to a full year loss of up to $500m fro
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202328] Carriers’ bid to raise Transpacific rates mid-July has gained traction, supported by improved capacity utilisation levels and a 14% month on month reduction in capacity that has been bolstered by Zim’s withdrawal of the ZNP service and THE Alliance’s planned removal of one FE-USWC string from August. Despite the improved transpacific market sentiment, the SCFI slipped by 2.3% at the end of last week, dragged down by
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202326] Supply side pressure continues with June vessel deliveries charting a new high, while limited delivery slippage and subdued scrapping numbers dent hopes that the unbridled capacity growth can be contained. Although the SCFI bucked its recent downward trend on the back of Transpacific rate increases on 1 July, the rate revival will be short lived as capacity is still growing faster than demand despite encouraging port
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202326] Market sentiment remains bearish with freight rates still slipping. The SCFI declined further in the holiday-shortened week in China, led by the rapid drop in Transpacific rates. Although carriers are pushing for another transpacific GRI on 1 July, the failure of the last 4 attempts will hurt their credibility with lines putting little effort to remove capacity while utilisation rates remain well below the level requ
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202325] Freight rates slumped for the 2nd successive week, with the SCFI losing over 9% in the last 2 weeks as carriers continued to slash rates on the transpacific routes. The resolution of the ILWU contract negotiations will further weaken the transpacific rate outlook as the risk of any peak season disruption to cargo flows to the US is materially reduced. Carriers need to reduce their capacity deployed to stop the rate
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202324] The SCFI slipped by 4.7% last week on the back of slumping transpacific rates with carriers slashing rates on both the West Coast and East Coast routes, erasing all of the recent GRI gains. The US west coast dock labour dispute remains a distraction with only a minimal impact on vessel operations and latent congestion already easing, while the Panama Canal draft restrictions failed to stop rates from falling on the e
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202323] Although the SCFI rose by 4.6% on the back of 1 June transpacific rate increases, market sentiment remains poor with the CCFI still sliding and carriers continued to offer discounts with cargo demand still insufficient to support rate hikes. Rates on the Atlantic, Asia-Europe and Australia routes remain under significant pressure, while the recent charter rate rally is starting to soften on the smaller size segments
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202322] Carriers continued to take one step forward and 2 steps back, with the rise in the SCFI last week providing little relief for the market as the CCFI continued to fall. The divergent movement of the SCFI and CCFI reflects the decline in average rates despite carriers’ attempt to push rate increases that have so far failed to stick. The SCFI will see further increases this week from the 1 June GRI on the transpacific,
Conviction around a freight market recovery is rapidly fading, with carriers failing once again to push ahead with their planned rate increases on 1 June following the 2 failed attempts earlier in May. Freight rates have continued to slip with the SCFI falling by 6% over the last 4 weeks, with scant signs of any reversal. Zim retained its full year EBIT earnings guidance of $100m-500m despite suffering a first quarter EBIT loss of $14m. Carriers such as Zim are still hoping for a 2nd half reco
Carriers failed to push ahead with the mid-May GRI, with transpacific and Asia-Europe rates still slipping amidst an increase in vessel capacity on both tradelanes. Overcapacity continues to pose the biggest challenge to a freight rate recovery, but the weakening freight rates has not deterred carriers from adding more capacity. The charter market is rapidly running out of open tonnage and the idle fleet has dropped to just 1% of the total fleet for the first time since October 2022. The positi