container shipping industry

How Container Carriers Are Adapting to Dwindling Demand

Credit: pymnts

The container shipping industry faces turbulent times as it grapples with a sharp decline in rates driven by a drop in consumer demand. While large retailers benefit from reduced shipping costs, ship operators are wrestling with unprofitable voyages and the challenges of oversupply. The pymnts source.

  • Container shipping rates have sharply declined due to decreased consumer demand, challenging profitability for ship operators.
  • Large retailers benefit from lower shipping costs, but...

https://mfame.guru/how-container-carriers-are-adapting-to-dwindling-demand/

China’s Lunar New Year Shutdowns And Port Delays Will Worsen Supply Chains

The

Credits: Viking Life-Saving Equipment

A recent news article published in the Yahoo Finance states that Lunar New Year lull to make supply chain ‘even worse’ amid factory closures, port delays in China.

Further disruptions to global supply chains

The container shipping industry is bracing for further disruptions to global supply chains ahead of the Lunar New Year holiday and Beijing Winter Olympics, which are expected to lead to factory closures for an extended period in China.

According to a...

https://mfame.guru/chinas-lunar-new-year-shutdowns-and-port-delays-will-worsen-supply-chains/

Recent Trends in Shipping Industry, Experts Opinions

  • The shipbuilding industry currently sees the Chinese financing phasing out the western one.
  • Smaller ship owners opt for alternative financial schemes with shipping companies requiring state support for introduction of green fuels.
  • Meanwhile, the world trade centre is gradually shifting from China to other Asian countries.
  • Ship owners look for ways towards autonomous shipping.
  • Those issues have been discussed by the market experts at the German Maritime Forum and SMM Digital.

A recent news...

https://mfame.guru/recent-trends-in-shipping-industry-experts-opinions/

South Korean Container Majors to Form Brand New K-Alliance

  • Five South Korean container shipping companies shake hands and agreed to establish a Korean Maritime Movement Alliance (K-Alliance).
  • This was done in an effort to enhance competitiveness in Asia.

According to country’s Ministry of Oceans and Fisheries (MOF), HMM, SM Line, Pan Ocean, Sinokor Merchant Marine and Heung-A Line signed a basic agreement in order to create the first national shipping alliance, says an article published in Safety 4 Sea.

Benefits of the collaboration

What is more, the...

https://mfame.guru/south-korean-container-majors-to-form-brand-new-k-alliance/

Positive Outlook From Moody’s for Global Ship Lease

  • Global Ship Lease mentions that its credit outlook has been improved to B3 / Positive from B3 / Stable by Moody’s Investor Services.
  • In announcing its review, Moody’s cited the demonstrated resilience of Global Ship Lease and the container shipping industry throughout 2020.
  • It also shared its expectations of an improved leverage profile on a sustained basis, positive momentum for charter rates, and supportive supply-side fundamentals.

Improved credit outlook from Moody’s for Global Ship Lease,...

https://mfame.guru/positive-outlook-from-moodys-for-global-ship-lease/

Global Container Shipping Industry At Top with High Freight Rates

  • Fitch Ratings-London-12 October 2020: Spot container freight rates have increased in recent months, driven by shipping companies’ supply discipline.
  • This is despite a decline in demand at the start of the coronavirus pandemic, Fitch Ratings says.
  • Global shipping companies’ financial performance has been improving as a result.
  •  Healthy freight rates are expected to continue in the short term.
  • Although potential pressures from trade protectionism and resulting localisation of supply chains, weak...

https://mfame.guru/global-container-shipping-industry-at-top-with-high-freight-rates/

Container Shipping Industry To Have Record Breaking Q3 Results

Container-line profits exceeded expectations in Q2 2020, a period when volumes were weak. In the third quarter, volumes and rates surged — and not just in the trans-Pacific trade.

“The stars are aligning for container shipping: historic consolidation, rational capacity management and now a fast bounce-back in demand post-lockdown,” wrote Jefferies analyst David Kerstens in a report published by American Shipper.

Matson’s upside surprise

Matson is primarily in the Hawaii and Alaska Jones Act...

https://mfame.guru/container-shipping-industry-to-have-record-breaking-q3-results/

Container Management Key To Profit Amidst Lower Demand

  • Container Shipping industry is vulnerable to changes in consumer spending, especially during lockdown across the world.
  • The first half of this year with last, accumulated volumes are down by 6.8%, to 78m TEU, a loss of 5.8m TEU.
  • Rates into the US West Coast (USWC) have risen 117.7% and rates into the US East Coast are up 47.9%.
  • Secondary trades have also had falling volumes, with intra-Europe down 2.6% and Europe to North America falling 7.0%. North America to Far East is down 3.9%.

Capacity...

https://mfame.guru/container-management-key-to-profit-amidst-lower-demand/

South Korean shipping sector ‘heading for disaster’ as virus crisis hits industry

As volumes plunge amid the coronavirus crisis, South Korea’s shipping industry is “heading for disaster”.
Other than cancelled passenger flights, so far there has been limited impact on cargo operations from the outbreak within Korea, and ports and airports function mostly as normal.
But with Korea’s trade so closely linked to China, vast swathes of the shipping sector are suffering from the factory and transport disruption there.
According to HG Jung, commercial director …

The post South Korean...

https://theloadstar.com/south-korean-shipping-sector-heading-for-disaster-as-virus-crisis-hits-industry/

Trade war has accelerated the ‘internationalisation’ of Chinese companies

The latest trade war truce at the weekend is unlikely to reverse shipping lines’ increased coverage of South-east Asia or the trend towards trade regionalisation.
According to Alan Murphy, chief executive of Sea-Intelligence, the number of transpacific services calling at ports in South-east Asia and sailing directly to North America has increased by 28% since January.
“Traditionally, carriers have been very slow adapting to market changes,” he told the TPM Asia conference …

The post Trade war...

https://theloadstar.com/trade-war-has-accelerated-the-internationalisation-of-chinese-companies/

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