Industry Opinions

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...

https://container-news.com/geopolitical-volatility-keeps-ytd-container-leasing-rates-elevated/

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...

https://container-news.com/red-sea-disruption-pushing-up-container-values-and-rates/

Covid pandemic wiped 24.6 million TEUs off container market growth

“Due to the Covid-19 pandemic, the global container market grew only 1.5% from 171
million TEU in 2019 to 173.5 million TEU in 2023. Without the pandemic, that figure would
have been 24.6 million higher, landing at 198.1 million in 2023,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO.

During the past four years, the container market has faced not only lower-than-expected
growth in the global economy, but the ratio of market growth vs economic growth, the so-
called GDP multiplier, was...

https://container-news.com/covid-pandemic-wiped-24-6-million-teus-off-container-market-growth/

Escalating Middle East tensions trigger projected surge in war risk premiums and freight rates

In a significant escalation of tensions in the Middle East, Iran’s capture of the MSC Aries, a container ship linked to Israel, has reverberated throughout the maritime industry.

This development, occurring before the missile attacks on Saturday, 13 April 2024, underscores the deepening conflict in the region. Believed to be in response to an Israeli raid on the Iranian consulate in Syria, the capture has heightened concerns about the security of key trade routes and the stability of regional...

https://container-news.com/escalating-middle-east-tensions-trigger-projected-surge-in-war-risk-premiums-and-freight-rates/

Due diligence needed for maritime tech adoption to minimize risk with digital transformation

Rapid technological change, complex regulation and competitive pressures are driving digital transformation in the shipping industry.

But navigating a confusing software landscape can be difficult and sound decision-making is essential to minimize innovation risk, according to OrbitMI.

Industry spending has soared in recent years on intelligent process automation solutions geared to boosting efficiency, reducing costs, curbing emissions and improving safety for shipping companies, with research...

https://container-news.com/due-diligence-needed-for-maritime-tech-adoption-to-minimize-risk-with-digital-transformation/

EU tanker import tonne mile demand up 12% as ships avoid Red Sea area

“In 2023, sanctions on Russian oil exports by the EU caused a major shift in tanker trades and a 10% increase in average sailing distances for EU tanker imports. Now, attacks on ships in the Red Sea area have caused average sailing distances to increase a further 16% and tonne mile demand to increase 12% despite falling volumes,” stated Niels Rasmussen, Chief Shipping Analyst at BIMCO.

During the first quarter of 2024, tanker import volumes to the European Union fell 4% year-on-year due to a 1%...

https://container-news.com/eu-tanker-import-tonne-mile-demand-up-12-as-ships-avoid-red-sea-area/

Singapore’s EU ETS liabilities of €330 million can accelerate green shipping initiatives

Singapore-registered vessels will be required to contribute a significant €330 million (US$355 million)m share of Asian shipping’s total emissions liabilities under the EU ETS, underlining the importance of the Lion City as a key maritime hub for both global trade and decarbonization, according to OceanScore.

The Hamburg-based maritime technology firm’s modelling analysis shows that 5.5 million EU Allowances (EUAs), or carbon credits, will have to be surrendered for some 1120 liable vessels...

https://container-news.com/singapores-eu-ets-liabilities-of-e330-million-can-accelerate-green-shipping-initiatives/

Veson Shipping Market Outlook: Chinese economy’s recovery, elevated interest rates and ongoing political tensions add to an atmosphere of uncertainty

Veson Nautical, which delivers maritime freight management solutions, said there are several elements of unpredictability affecting the shipping market forecasts for the second quarter of 2024.

The Chinese economy’s recovery currently teeters on instability, casting a shadow of uncertainty over the industry due to China’s pivotal role as a major demand driver. Elevated interest rates in Western economies heighten the risk of a severe downturn, potentially stalling prospective growth.

Ongoing...

https://container-news.com/veson-shipping-market-outlook-chinese-economys-recovery-elevated-interest-rates-and-ongoing-political-tensions-add-to-an-atmosphere-of-uncertainty/

Baltimore bridge collapse has not triggered rate increase

The collapse of the Francis Scott Key Bridge in Baltimore has caused supply chain disruption on the US East Coast but, so far, it has not seen an increase in ocean freight container shipping rates.

Data released on 8 April by Xeneta, the ocean freight rate benchmarking and intelligence platform, reveals average spot rates from the Far East into the US North East Coast (including Baltimore) have fallen slightly (-1%) since the bridge collapse on 26 March to stand at US$5,421 per FEU (40ft...

https://container-news.com/baltimore-bridge-collapse-has-not-triggered-rate-increase-xeneta/

Demand shocks drive ship recycling to lowest level in 20 years

Over the past eight quarters, ship recycling of bulkers, tankers and container ships has dropped to the lowest level in 20 years.

A combination of strong demand following a series of market shocks and low order books have kept older ships operating for longer than usual.

During the first quarter of 2024, only two million deadweight tonnes (DWT) ship capacity were recycled. This marks the ninth consecutive quarter with recycling levels below three million DWT. The last time recycling was this low...

https://container-news.com/demand-shocks-drive-ship-recycling-to-lowest-level-in-20-years/

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