Linerlytica

Vessel redeployment forces rate rises in secondary trades

Liner companies chasing the high returns on the major trade lanes are shifting tonnage from secondary services, with consultancy Xeneta warning shippers and forwarders that capacity constraints in second string services will force up rates.

Hong Kong-based Linerlytica believes these increases may have already begun with consultancy reporting today that capacity injections have been seen in the Indian subcontinent, Latin America and US West Coast routes, “where freight rates are the most...

https://container-news.com/vessel-redeployment-forces-rate-rises-in-secondary-trades/

Pioneering Virtual Container Freight Futures Trading Competition: An Exclusive Interview with BANDS Financial and Linerlytica

BANDS Financial and Linerlytica launch the first virtual container freight futures trading competition exclusively for companies and executives in the container shipping sector along the Asia-Europe route.

In an interview with Antonis Karamalegkos, Managing Editor of Container News, Johnson Leung, Director of Linerlytica, and Tiger Shi, CEO of BANDS Financial, discussed the competitive landscape, future project plans, and the goals driving this initiative.

  • To start, could you give us an overview...

https://container-news.com/pioneering-virtual-container-freight-futures-trading-competition-an-exclusive-interview-with-bands-financial-and-linerlytica/

Market panic triggers sharp rate surge

According to the latest analysis of the shipping consultancy Linerlytica, the market panic over tightening vessel space availability has sent the Shanghai Containerized Freight Index (SCFI) to its highest level since September 2022, rising by 18.8% after last week’s holiday break to hit a 20-month high.

Unlike the surge in January, when the rate hikes were largely limited to the Red Sea-affected routes, the gains are more broad-based this time with sharp rate hikes on all long-haul routes on the...

https://container-news.com/market-panic-triggers-sharp-rate-surge/

BANDS and Linerlytica launch innovative virtual container trading competition

BANDS Financial and Linerlytica launch the first virtual container freight futures trading competition exclusively for companies and executives involved in the container shipping sector along the Asia-Europe route.

Competition details

The competition is open to 20 companies and 200 individuals in separate company and individual leagues. Contestants receive virtual money to trade CoFIF, and the three contestants from each league with the highest equity at the end of the six-month competition...

https://container-news.com/bands-and-linerlytica-launch-innovative-virtual-container-trading-competition/

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/

Carriers playing catch-up to further tilt supply-demand imbalance

Ocean Network Express (ONE) announced an aggressive midterm plan on 19 March to grow its operated fleet to 3 million TEUs by 2030, representing a 66% growth from its current fleet at an annualised growth rate of 10% per year.

The plan will demand capital investments of US$25 billion and a further US$10 billion in associated assets over the next five years, which could also include the transfer of some of the assets from its three shareholders, NYK, MOL and K Line.

ONE’s move represents a “belated...

https://container-news.com/carriers-playing-catch-up-to-further-tilt-supply-demand-imbalance/

Red Sea crisis spurs surge in TEU capacity: Newbuildings fully absorbed

The total container ship capacity deployed on trades affected by the Red Sea crisis has increased by 1.26 million TEUs since October 2023, driven mainly by vessel diversions to the Cape of Good Hope, according to the latest Linerlytica report.

The Far East-Mediterranean recorded the largest jump of 610,000 TEUs, accounting for half of the increased capacity over the period, followed by the Far East-North Europe route at 260,000 TEUs.

“The increased demand for tonnage has fully absorbed all of the...

https://container-news.com/red-sea-crisis-spurs-surge-in-teu-capacity-newbuildings-fully-absorbed/

Container shipping alliance landscape: Dominant OCEAN Alliance extension leaves THE Alliance stranded

The extension of cooperation among OCEAN Alliance partners has established a framework for the operation of major container lines in the coming years.

As CMA CGM, COSCO, along with its subsidiary OOCL, and Evergreen will remain under the OCEAN Alliance umbrella until 2032 and Maersk has already announced its upcoming partnership with Hapag-Lloyd, effective from February 2025, the members of THE Alliance seem in an unfavourable position. Meanwhile, MSC and ZIM have already signed a partnership...

https://container-news.com/container-shipping-alliance-landscape-dominant-ocean-alliance-extension-leaves-the-alliance-stranded/

How long can Maersk investors tolerate below-par performance, wonders Linerlytica

Maersk blamed overcapacity for its record EBIT losses in the fourth quarter but it failed to mask the fact that it has continuously underperformed the market, according to Linerlytica’s latest report.

The Danish ocean carrier reported EBIT losses of US$920 million for its Ocean business with EBIT margins dropping to -12.8% in the last quarter of 2023, which is more than 5% lower than its liner peers that have announced their latest quarterly results.

Linerlytica noted that “Maersk’s...

https://container-news.com/how-long-can-maersk-investors-tolerate-below-par-performance-wonders-linerlytica/

80% of all container ships on Suez route divert to Cape of Good Hope

The number of container vessels that have re-routed via the Cape of Good Hope due to the Red Sea crisis has risen to 354 units as of 7 January, according to the latest Linerlytica report, translating to 4.65 million TEUs or 16.4% of the global fleet.

This number also accounts for 80% of all the boxships moving between the Atlantic/Med basins and the Indian Ocean. The number will continue to grow over the coming week with most of the main carriers currently opting for the Cape route.

Only the...

https://container-news.com/80-of-all-container-ships-on-suez-route-divert-to-cape-of-good-hope/

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