Total 78 Posts
Over the last few weeks, the main East West head hauls displayed some concerning signs that utilization are trending down despite of very sharp drop in vessel capacity departed from Far East. These drops might just be short term volatility but in a market that is still debating if a material volume drop may be imminent, the implied in volume drop in the last few weeks that are still within the usual peak season period should be followed by stakeholders in the container liner sector. For most o
Charter rates are weakening as tonnage availability is starting to pick up. In the Bangkok-max sector, the number of vessels available spot (less than 14 days) are at the highest levels in over a year, with rates falling in tandem. SFL was forced to accept a reduced rate of $23,000/day for the 1,740 teu GREEN ACE on a short fixture to Aladin Express after Allseas defaulted on its charter commitment on the ship at short notice. The ship was originally to join Allseas on its Asia-Europe service a
Rates to the USWC have slipped further with the SCFI assessment at $3,484/feu while the CCFI assessment has dropped to 2,195 points. Carriers are continuing to offer lower rates for September bookings with rates of below $3,000/feu already on offer. Rates to the USEC are also coming under pressure, with the SCFI assessment dropping by $551/feu last week. The USEC rates will continue to weaken in the coming weeks as the gap between the WC and EC rates are expected to narrow further, barring any
Carriers’ attempts to drive out the marginal players in the market by aggressive rate cuts have so far failed to achieve any of the desired results, as spot freight rates suffered another large fall last week while trade capacity has not been reduced. Exit are not obviously available for the new entrants, even if they are looking for one. Tonnage shortage over the past two years means the vessels could only be chartered for exceptionally high charter rates and much longer period commitment,
Decline in spot freight rates continue to gather pace this week. SCFI overall index dropped 10% WoW to below 3000 mark, after having fallen 8% WoW the week before. Feedbacks from our channel check suggested the current spot rates available to the BCOs are way below what is being reported in SCFI. CCFI is already tracking below its level last year, meaning even including the YoY much higher contracted rates, the average freight rates including both spot and contract rates are lower YoY. Until
The decline in container freight rates has been gathering pace over the past week. SCFI suggested spot rates to USWC and NEUR have fallen 11% and 7% respectively over the past week, comparing to decline of 6% and 4% respectively the week before. Utilization in the FE-USWC trade actually picked up a bit the last few days after several very light departures recorded on 19 Aug and 20 Aug involving services independently operated by Maersk, MSC and CMACGM. But those light departures have obviously
Container liners proved to be able to generate values for shareholders despite of the cyclicality of their operating performance. From 2000 to July 2022, container liners returned over 700% to their shareholders whereas during the same period MSCI World returned only 440%.
The China Containerized Freight Index (CCFI) (source: SSE) came out just now fell below its level a year ago, registering the first YoY drop since week 50 2019. This weekly published counter tracks both spot and contracted freight rates of outbound shipments from China. The recent peak of CCFI was 3,588 recorded on 11 Feb 2022. At 2,993, CCFI has fallen 17% from its peak. Container freight rates are one of the most trend sensitive price indices in all markets. Being trend sensitive means that
Transit times to US East Coast ports is lengthening noticeably with both the Atlantic Coast and Gulf Coast ports experiencing increased waiting times. Savannah is the most badly affected port currently with waiting times of up to 20 days, with vessel queues still building. There are currently 37 ships waiting to berth a Savannah which can handle only 6-9 ships at any time. New York and Houston are also experiencing delays of up to 10 days. While the situation at other USEC ports are not as criti
China's market share of global port throughput increased marginally in the last four years despite of the US Tariff on the Chinese exports and the lock-downs at China's coastal manufacturing hubs. The port throughput numbers do not show obvious trend of China's losing market share in the exports as oppose to what some in the market have expected. China's market share of global port throughput increased from 33.2% in 2017 to 34.2 in 2021. Over the same period, South East Asia, which is widely ex