Freight that can cost lives

A group of industry bodies have banded together to produce guidance on some surprising,
and some less surprising, hazardous cargoes that could save lives, the environment and
unnecessary cost.

The Cargo Integrity Group (CIG) brings together seven maritime, port, cargo and insurance
interests in an effort to reduce the number of incidents that can occur due to badly packed
or handled freight, either at sea, in port or on inland delivery.

The list is divided into the various types of hazard that...

Danaos denounces protectionism threat to shipping

One of the major threats to shipping was identified by John Coustas, the president and CEO
of ship owner Danaos Corporation, who said that deglobalisation is the major threat to
shipping today.

Speaking at Posidonia’s Capital Link conference in Athens, Coustas said that globalised trade is better for the world’s population because it reduces costs and he added that container shipping was a disruptive force.

“The biggest danger to shipping is deglobalisation, protectionism is a major challenge.

Two-thirds of European green shipping fuel projects at risk: T&E study

Two-thirds of European green shipping fuel projects are at risk, a new Transport & Environment (T&E) study shows.

T&E’s mapping of green hydrogen projects across Europe shows that nearly 4% of European shipping could run on green e-fuels by 2030. But fuel suppliers appear to be reluctant to commit financially to projects without more guarantees that there will be demand for these fuels shortly.

This means the vast majority of projects may never come online in this decade, putting Europe’s climate...

Rates climb on early peak season and capacity stretched thin

Carrier adjustments due to Red Sea diversions – the use of more vessels travelling at faster speeds, together with heavier reliance on transshipment – for the most part succeeded in keeping containers moving on schedule through March and April.

But alongside the success were gradual signs that carriers were falling behind: pockets of congestion, increases in port omissions, delays and missed departures, and a decrease in empty equipment at export hubs.

With demand stable, in those months carriers...

Peak in China’s coal demand in sight as renewables jump 12%

Between January and April 2024, China’s electricity generation from renewables surged 12% y/y, significantly outpacing the 6% growth in generation from fossil fuels.

“While steam coal shipments to China rose 29% y/y, they are starting to feel the pressure from stronger renewables. Between March and April, the shipments fell 7% y/y as electricity generation from fossil fuels only rose 1% y/y,” stated Filipe Gouveia, shipping analyst at BIMCO.

So far in 2024, electricity generated from renewables...

Ocean rates leveling off, but remain elevated on Red Sea impacts

Overall, the ocean container market has settled into a new routine that avoids the Red Sea due to Houthi attacks which continued this week.

Though significant backlogs, congestion and equipment shortages seen during the first few weeks of the crisis have dissipated, adjustments have resulted in some moderate but ongoing disruptions.

Some West Mediterranean ports, for example, are now being used as transhipment hubs for East Mediterranean-bound containers, leading to some congestion there, and...

Long term rates edge up globally as Red Sea conflict continues to cast uncertainty across the market: Xeneta

Ocean freight container carriers are treading a fine line between risk and reward during new contract negotiations as the market remains gripped by uncertainty in the Red Sea, according to new data on the Xeneta Shipping Index (XSI®).

The latest data released by Xeneta shows the Global XSI® (the average rate of all valid long-term contracts in the market) remained fairly flat in April at 154.3 points, up by just 1.7% from March.

However, looking at sub-indices within this global figure reveals a...

Counting the cost of war on the climate: Red Sea conflict brings massive carbon emissions increases in ocean freight shipping

Conflict in the Red Sea has brought massive carbon emissions increases in ocean freight container shipping, according to data released by Xeneta.

The Xeneta and Marine Benchmark Carbon Emissions Index (CEI), which measures carbon emissions per ton of cargo transported across the world’s top 13 trades, hit 107.4 points in Q1 2024 – the highest it has been since the index began in Q1 2018.

For containers being shipped via ocean from the Far East to the Mediterranean, the CEI reveals carbon...

Geopolitical volatility keeps YTD container leasing rates elevated

A YTD analysis of global container leasing transactions by Container xChange shows a notable uptick in average rates since the beginning of 2024, indicating an uptick in demand for container leasing services and an increased financial burden on lessors, pointing to a potentially tighter market. The study also highlights persistently strong container trade patterns between China and Russia, Taiwan and India, and China and India, amongst other hot trade routes so far in this year 2024.

“China to...

Red Sea disruption pushing up container values and rates

Container values have risen significantly across almost all sectors and age categories since the start of the year.

Following an extended period of declines, where values fell steadily for this sector after reaching a record peak during the Container boom at the end of Q1 2022. However, since January 2024, values have taken a turn in the opposite direction and older vessels have shown the most strength, with values for 20-year-old Handy Containers of 1,750 TEU up by as much as 43% since the new...

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