Markets/Trades

Total 192 Posts

Markets

Freight Futures Watch: More Signs of Near Term Weakness

More signs of Asia Europe freight rates being peaked has emerged: 5 out of the 7 departures from Far East to North Europe over the last few days were below trend and the latest trend (on 2-week moving average) has been below the average of the past year. AE10 MAYVIEW MAERSK Departed Tanjung Pelepas on 17 July was only 79.41% full comparing to the 2-week moving average of 94.9%. FE4 HMM GARAM departed Singapore on 16 July was only 90.7% full, comparing to the 2-week moving average of 94.3%. T

Markets

MSC fleet closing in 6mn TEU

MSC has taken 2 more secondhand purchases last week, as its total capacity operated edges closer to the 6m teu mark. The vintage 25 year old 5,364 teu EVER UNITY has joined MSC last week as the MSC UNITY VI for deployment on its South Africa Ingwe service while the 2,867 teu AS CLARITA will join MSC after its current drydocking as the MSC CLARITA III for deployment on the Upper Gulf Express service in the Middle East. MSC’s aggressive vessel acquisition drive has allowed it to avoid the charter

Markets

Recent capacity additions have put cap on freight rate increases

The Far East to the Indian Subcontinent, Latin America and US West Coast routes have seen a significant increase in new capacity injections in the last month, with capacity rising by 9.0%, 6.0% and 4.7% respectively with a slew new services and extra loaders added since June. These capacity additions will continue through August, keeping the charter market tight as carriers are still short of tonnage needed on these routes. However, the incremental capacity added has put a cap to recent freigh

Markets

Overall SCFI Dropped While SCFI-Europe Held Up

The SCFI retreated last week by 1.6% after 14 consecutive weekly gains in a further sign that the market has peaked. While demand remains firm, supply has also risen with capacity injections most notably in the Indian subcontinent, Latin America and US West Coast routes where freight rates are the most lucrative currently. This has capped freight rate increases on those routes, but overall capacity utilisation remains tight, with rates still rising on the Asia-North Europe route as schedule disr

Markets

Freight futures fret over ceasefire risks despite strong spot rate gains

Maersk’s high spot rate quotes helped to boost short term market sentiment, but skepticism over the sustainability of the current high rate levels heading into 2025 continues to prevail in the CoFiF futures market. The EC freight futures traders were spooked by reports of a Gaza ceasefire as the longer dated container freight futures for 1H 2025 contracts corrected by 20-30% WoW. Near term contracts for 2H 2024 remain firm, with EC2408 and EC2410 recording marginal gains backed by the 4.0% gai

Markets

Another Limit Down Day for CoFIF

Most of the Container Freight Index Futures, CoFIF, went limit down today on news of the cease fire framework being within reach. But we only found such story on Washington News. No other major news channels reported a ceasefire deal being concluded. 190k contracts changed hands today, which the highest trading volume since mid May. Though, no sign of liquidation in the market as open interests rose to year-to-date high with position-building increasingly concentrated on the contracts expiring

Markets

Maersk set to reverse course after failed Schenker bid

With the rest of its main rivals pushing ahead with their capacity expansion plans, Maersk has been stagnant with its capacity operated capped at 4.3m TEU since 2017 as the Group pursued its logistics integrator strategy. This is set to change as Maersk stated last week that it will be “doing whatever it reasonably can to bring supply in line with businesses’ demand for capacity”, as it hints to an imminent reversal of its self-imposed capacity cap. The move follows Maersk’s withdrawal from it

Markets

Spot Rates Continued Up But Cracks Appeared

SCFI rates to North Europe slipped back marginally after last week’s 12.5% gain with the 1 July rate increase still largely in place. Carriers are still pushing for a mid-July increase, with mixed views on whether this fresh round of rate hikes will stick. Capacity utilization has slipped in the last 2 weeks, with the launch of 3 new FE-North Europe services and bunching departures on 3 other strings adding some 100,000 teu of additional slots to the market. Slot availability will be down over

Markets

Container futures slumps on fears that rates have peaked

EC freight futures to North Europe tumbled on 8 July, with 4 out of the 6 contracts hitting their daily 16% limit down level, while the two exceptions EC2408 and EC2410 dropped by 4.1% and 15.6% respectively. The daily price movement limit will be revised from 16% to 19% for contracts expiring in December onwards starting from 9 July. Open interests went up 2% WoW with traders taking more overnight positions for EC2410, EC2504 and EC2506. The EC market was spooked by concerns that freight rates

Markets

SCFIS up 12.5% WoW

SCFI spot freight rates to North Europe surged by 12.5% with the peak season demand surge continuing while supply is still constrained by port congestion. Pre-GRI cargo bookings surged ahead of the 1 July rate hikes which pushed up demand further despite new capacity from Hapag-Lloyd and CMA CGM as well as several extra loaders using smaller ships. The launch of MSC’s Britannia in July will put further pressure on overall capacity utilization to North Europe which remains tight despite the intr

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