Markets/Trades

Total 177 Posts

Markets

CoFIF: Volume friendly measures announced after market close

Asia-Europe futures CoFIF prices stayed broadly unchanged for the past week on flat trading volumes with spot SCFIS rates dropping further on 18 March to 2,437 points to close the gap with current EC2404 futures which closed at 1,826 points. International Energy Exchange (INE), the exchange where CoFIF contracts are being traded, announced new measures to spur trading volumes after market close on 18 March for EC2406-EC2412: (1) drop the margin requirement from 22% to 18%, meaning for every dol

Markets

Liners Active in Chartering Market Despite of Their Bearish Outlook

The Red Sea disruptions continue to drive charter rates, with average charter rates rising by a further 3% last week with healthy gains across all size segments. The larger sizes continue to enjoy the biggest gains, with vessel availability failing to match demand. Activity in the panamax segment remains active, with last done rates rising above $25,000 for the first time in 9 months. The availability of ships larger than 5,000 teu remains very limited, with demand still uncovered which will c

Markets

Red Sea crisis has absorbed over 1.2m of containership capacity

Conflicting signals abound in a market looking for fresh directions, with freight rates continuing to slide as the SCFI dropped by 4.7% last week bringing the  cumulative decline to 15.8% since its January peak. However, charter rates continue to firm while second hand vessel prices are still rising as demand for tonnage remains high. The recent freight rate correction has not deterred new entrants, with another Chinese carrier set to launch a transpacific service in March. Total containership

Markets

Spot rates dripping but remain a multiple of pre-Red Sea Crisis levels

There is no fresh direction on the transpacific, with rates continuing to erode. Although the SCFI rates to the USWC held above $4,000 per feu, carriers are offering special rates that were as much as $500 lower than these FAK rates in order to secure additional volumes. The recent rate correction has weakened carriers’ bargaining position for the new service contract that will start from May 2024 with final contract rate levels expected at below $2,000/feu against benchmark rates of $1,200-1,6

Markets

Trading volume down 21% WoW while prices and Open Interest remained unchanged

CoFIF trading volume slumped to a new low of 10,101 lots last Friday (9 March 2024) as speculative sentiment cooled. Based on an estimated ratio of one lot to 10 teu, the reduced CoFIF daily trading volumes still amounts to 100,000 teu, which provides significant market liquidity that matches the daily turnover of the dry bulk FFA which has a longer trading history. However, CoFIF is digitally traded as opposed to dry bulk FFAs that trade over-the-counter. Open interest, an indicator of traders

Markets

OCEAN Alliance extension leaves THE Alliance stranded

The OCEAN Alliance partners (CMA CGM, COSCO, OOCL and Evergreen) have extended their 10 year cooperation agreement that started in April 2017 for 5 more years until 31 March 2032. The move will cement the group’s dominant position as the largest global carrier alliance, with a significant lead over their rival alliances on both the Transpacific and Asia-Europe routes. The move also leaves the remaining members of THE Alliance partners stranded as they will not be able to draw one of the OCEAN A

Markets

9% Drop In Spot For Both NEUR and WCNA Last Week

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 on the transpacific route ahead of the crucial annual contract negotiations. Tr

Markets

Forward rates largely unchanged on low volumes

The CoFiF market shrugged off the 9% drop in the SCFI Asia-North Europe rates last week as the drop was already widely anticipated with forward rates still trading at a discount to spot. The latest SCFIS (Europe) index on 4 March dropped by 3.0% after the previous week’s 9.5% fall with the smaller decline helping to curb further selling in the CoFiF market. With the EC2404 expiration date drawing closer, trading volumes have dropped amidst uncertainty over the extent and speed of further rate

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

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

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