Drewry

China backhaul costs mirror headhaul rate shifts

Rates on the Europe to Asia trades have mirrored headhaul trades with China’s import cargo paying more for carriage since the Red Sea crisis hit the industry in December.

At the end of last year, eastbound cargo out of European ports of origin was US$303/FEU, in January, as in the headhaul trade, rates started to climb as carriers diverted around the Cape, peaking at US$1,066/FEU on 1 February according to Xeneta, which shows rates on the slide again, now down to US$866/FEU.

“These developments...

https://container-news.com/china-backhaul-costs-mirror-headhaul-rate-shifts/

Weak demand puts paid to talk of empty box crisis

Fears that there is a looming empty repositioning crisis in Asia have subsided as weak demand and the continued growth in capacity have combined to see rates slide in the post-Chinese New Year period.

Hong Kong analyst Linerlytica reported that the “freight rate correction has gathered pace,” as “carriers failed to defend their pre-Chinese New Year gains.” According to Linerlytica the SCFI had lost 6.2% during the previous week.

The analyst attributed the slide in rates to weak demand that had...

https://container-news.com/weak-demand-puts-paid-to-talk-of-empty-box-crisis/

COLUMN | The Twelve Days of Christmas 2023: Days 4 to 6: Seadrill, Gulf Drilling International and ADES; five shipping magnates on future fuels; six corrupted states and Al Jazeera [Offshore Accounts]

On the first day of Christmas my true love gave to me… a partridge in a pear tree, according to the ancient English carol, but at Baird Maritime, that’s the cue for a dozen topical features about the offshore industry. Lovers of festive traditions get scrolling, as for the fourth year in a row, we […]

The post COLUMN | The Twelve Days of Christmas 2023: Days 4 to 6: Seadrill, Gulf Drilling International and ADES; five shipping magnates on future fuels; six corrupted states and Al Jazeera...

https://www.bairdmaritime.com/work-boat-world/offshore-world/column-the-twelve-days-of-christmas-2023-days-4-to-6-seadrill-gulf-drilling-international-and-ades-five-shipping-magnates-on-future-fuels-six-corrupted-states-and-al-jazeera-offshore-accounts/

‘Dire’ scenario for shipping lines more likely as spot rates fall back

There’s a lot at stake for container lines’ 2024 bottom lines in the last few weeks of 2023. If lines can’t push up spot rates very soon, next year’s annual contract rates will reset much lower versus this year’s.

That scenario — which would have a very negative financial effect on liners — looks increasingly likely. Time is running out for a fourth-quarter rebound, and indexes show spot rates falling, not rising.

Shipping lines’ attempts to use general rate increases (GRI) this month to improve...

https://www.freightwaves.com/news/dire-scenario-for-shipping-lines-more-likely-as-spot-rates-fall-back

Stymied lines face several years of pain, says Drewry

“Snookered” shipping lines face up to four years of losses as weak demand, ordering and a lack of demolitions have led to overcapacity, low rates and will ultimately see returns crash.

New capacity will hit the water at a rate of around 2 million TEU a year with substantial numbers of ships confirmed on order for delivery between 2024-2026 with Drewry Shipping Consultants’ Simon Heaney warning that “every new delivery adds a to the challenge [of returning to a supply/demand balance]”.

“The...

https://container-news.com/stymied-lines-face-several-years-of-pain-says-drewry/

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