Container Shipping News

Mighty fall: Container line profits plummet from historic peak

chart showing container line profits by quarter

googletag.cmd.push(function() { var gptSlot = googletag.defineSlot(‘/21776187881/FW-Responsive-Main_Content-Slot1’, [[728, 90], [468, 60], [300, 100], [320, 50]], ‘div-gpt-ad-b1-i-fw-ad-1’).defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads());
gptAdSlots.push(gptSlot);
});

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-b1-i-fw-ad-1’); });

China’s Cosco Group — the world’s fourth-largest container line operator with an 11% market share —...

https://www.freightwaves.com/news/container-line-profits-are-plummeting-from-their-historic-peaks

Ship fuel cost way down from war peak, but ‘green’ fallout looms

The price of ship fuel is now down to around half the post-Ukraine-invasion peak. Second-quarter fuel surcharges for containerized cargo shippers promise more savings ahead.

That’s the good news. The bad news is that if shipping ultimately switches from fuel oil to LNG or methanol as part of the energy transition, future fuel costs will likely skyrocket back to levels seen after the invasion — or higher.

The common refrain from vessel owners and operators is that cargo shippers will ultimately...

https://www.freightwaves.com/news/ship-fuel-cost-down-from-war-peak-but-green-fallout-looms

Trans-Atlantic container rates still double pre-COVID levels

chart showing trans-Atlantic rates vs. trans-Pacific rates

googletag.cmd.push(function() { var gptSlot = googletag.defineSlot(‘/21776187881/FW-Responsive-Main_Content-Slot1’, [[728, 90], [468, 60], [300, 100], [320, 50]], ‘div-gpt-ad-b1-i-fw-ad-1’).defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads());
gptAdSlots.push(gptSlot);
});

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-b1-i-fw-ad-1’); });

Container shipping rates are not back to normal quite yet. Trans-Pacific rates have returned to...

https://www.freightwaves.com/news/trans-atlantic-container-rates-still-double-pre-covid-levels

February volumes soften at South Carolina Ports

Despite a year-over-year decline, last month’s volumes were the second-highest ever for February for South Carolina Ports.

Container volumes at the Port of Charleston totaled 201,418 twenty-foot equivalent units and 111,118 pier containers, down 13% from February 2022, the port said Monday. Volumes also fell from January, when SC Ports handled 215,238 TEUs and 118,179 pier containers.

But despite the dip, February’s container volumes “were stronger than typical.” A slowdown in consumer spending,...

https://www.freightwaves.com/news/february-volumes-soften-at-south-carolina-ports

Crunch time for trans-Pacific container shipping contract talks

a chart showing trans-Pacific spot rates; current spot rates are negatively affecting contract rates

The annual contract season is down to the final stretch in the trans-Pacific shipping market. U.S. import costs, liner profitability and service reliability all hinge on where contract prices settle in the next few weeks.

The plot twist this year is that the prior round of annual contracts were signed at historically high levels and the timing of the current contract RFP season coincides with a period of still-sinking spot rates.

Import demand remains weak due to bloated inventories, with inbound...

https://www.freightwaves.com/news/crunch-time-for-trans-pacific-container-shipping-contract-talks

West Coast wipeout: Los Angeles, Long Beach imports still sinking

a chart showing combined imports to Los Angeles and Long Beach

googletag.cmd.push(function() { var gptSlot = googletag.defineSlot(‘/21776187881/FW-Responsive-Main_Content-Slot1’, [[728, 90], [468, 60], [300, 100], [320, 50]], ‘div-gpt-ad-b1-i-fw-ad-1’).defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads());
gptAdSlots.push(gptSlot);
});

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-b1-i-fw-ad-1’); });

The losing streak continues for the Port of Los Angeles. It relinquished its long-held title as...

https://www.freightwaves.com/news/west-coast-wipeout-los-angeles-long-beach-imports-still-plunging

How much will container lines ‘earn’ in 2023? It depends on the metric

Berkshire Hathaway’s Charlie Munger once famously said, “Every time you hear ‘EBITDA,’ just substitute the phrase ‘bullshit earnings.’”

Public shipping companies in different segments highlight different earnings metrics. Tanker and dry bulk owners focus on adjusted net income. Listed container shipping lines often highlight adjusted earnings before interest, taxes, depreciation and amortization.

EBITDA has been criticized for decades — Munger’s quote is from Berkshire Hathaway’s 2003 annual...

https://www.freightwaves.com/news/how-much-will-container-lines-earn-in-2023-it-depends-on-the-metric

February still busy for Georgia Ports despite year-over-year, sequential dips

Despite the headwinds of inflation, rising interest rates and high warehouse inventories, the Georgia Ports Authority said it had its second-busiest February ever.

February container volumes totaled nearly 395,000 twenty-foot equivalent units, down from 460,400 TEUs in February 2022 but still 30,400 TEUs higher than pre-pandemic February 2020, GPA said Tuesday.

However, February’s volumes of 394,793 TEUs were also 6% lower than January’s volumes of 421,714 TEUs. January’s volumes also marked a...

https://www.freightwaves.com/news/february-still-busy-for-georgia-ports-despite-year-over-year-sequential-dips

Zim Q4 results surprise to upside but 2023 ‘extremely challenging’

a chart showing Zim KPIs

Zim, the world’s 10th-largest ocean carrier, announced a big earnings beat for the fourth quarter and paid out a higher-than-expected dividend. However, it faces a tough year ahead, with a chance of at least some quarters in the red.

The company’s shares (NYSE: ZIM) surged Monday on news of the earnings beat, jumping as much as 25% in morning trading. Shares had given back most of those gains by the end of the day, closing up only 6.6%. Trading was heavy, at more than four times average volume.

Bi...

https://www.freightwaves.com/news/zim-q4-results-surprise-to-upside-but-2023-extremely-challenging

Imports sink again as wholesale inventories remain bloated

a chart showing imports

googletag.cmd.push(function() { var gptSlot = googletag.defineSlot(‘/21776187881/FW-Responsive-Main_Content-Slot1’, [[728, 90], [468, 60], [300, 100], [320, 50]], ‘div-gpt-ad-b1-i-fw-ad-1’).defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads());
gptAdSlots.push(gptSlot);
});

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-b1-i-fw-ad-1’); });

February is typically a bad month for U.S. imports. This February was particularly rough, as the...

https://www.freightwaves.com/news/imports-sink-again-as-wholesale-inventories-remain-bloated

+ More