Not so long ago, container lines competed with each other on price, with disastrous results.
The well documented race to the bottom on pricing, and race to the top on ship-building, dovetailed with the 2008 financial crisis, sending the industry into a tailspin.
Fast forward a few years to another crisis and the carriers are in better shape, having cut capacity dramatically.
Couple that, though, with the big answer to yesterday’s problems – …
GRIs
Supply chain radar: Maersk ‘first to cancel GRI’? Chill out and walk the fine antitrust line
When is a cartel not a cartel?
That question must be on the minds of ocean shippers facing record freight rates these days, particularly on US-bound transpacific routes.
Those routes are, like most others, dominated by nine of the world’s biggest container lines organised into three ship-sharing alliances: 2M, THE Alliance, and Ocean Alliance.
Background
Various reports this month suggest the cartel question – humbly anticipated by Premium on 3 September as part of …
The post Supply chain radar:...
Maersk first to cancel GRI and cut transpacific rates as China wades in
Maersk has reportedly reduced its planned mid-September transpacific GRIs, thought to be due to China’s move to step in to reduce freight rates on the trade.
Last week, Zest Shipping Media reported that Chinese authorities planned to interfere in pricing and capacity management on the transpacific as rates soared to record highs.
Dennis Zhou, founder of Zest, noted this morning that Maersk had quoted $4,200 for US west coast, and $5,000 for …
The post Maersk first to cancel GRI and cut...
https://theloadstar.com/maersk-first-to-cancel-gri-and-cut-transpacific-rates-as-china-wades-in/
Carriers impose restrictions as container shortages in Asian ports get worse
All the major carriers are experiencing equipment shortages at Asian ports with popular 40ft high cubes in particular short supply at Chinese depots.
Anecdotal reports to The Loadstar suggest CMA CGM currently has a shortage of equipment at all of the main Chinese ports, while other carriers are advising of shortages at some docks and “near normal” availability at others.
However, one Chinese forwarding source said equipment availability was more about “what …
The post Carriers impose...
Asia-Europe rates may be ‘past their peak’: new GRIs may be tricky for carriers
With a reading of 1,022.03, the Shanghai Containerized Freight Index (SCFI) comprehensive index is today 30% higher than it was 12 months ago, an upshot of carriers adjusting their capacity wisely in response to the reduced demand impact of the pandemic.
However, today’s SCFI recorded further small declines for container spot rates across the main east-west trades – Asia-Europe and the transpacific – suggesting rates are past their peak and could …
Ocean carriers fight seasonal downturn by blanking more voyages
Spot container freight rates on the transpacific and Asia-Europe are coming under intense pressure ahead of a weak outlook for the markets following China’s Golden Week holiday factory shutdown the first week of October.
Today’s readings of the Shanghai Containerized Freight Index (SCFI) show further declines, the North Europe component falling 6.2%, to $710 per teu, while rates to west Mediterranean ports were down 2%, to $877 per teu.
Spot rates for North Europe are about a third lower …
The...
https://theloadstar.com/ocean-carriers-fight-seasonal-downturn-by-blanking-more-voyages/
Box carriers sail towards a tipping point of ocean freight rates and fuel
The bellwether Shanghai Container Freight Index (SCFI) did not publish today, due to the national holiday in China, but current sentiment suggests that ocean carriers will find their rates under pressure following the Golden Week break.
Last month, the Asia to North Europe component of the SCFI shed 21% to $735 per teu, while for Mediterranean ports there was a smaller decline of 15% to $767 per teu.
Anecdotal reports from The Loadstar’s …
The post Box carriers sail towards a tipping point of...
https://theloadstar.co.uk/box-carriers-sail-towards-tipping-point-ocean-freight-rates-fuel/