Linerlytica

Carriers set for major blanking programme

Hong Kong consultancy Linerlytica suggests that the carriers are struggling to achieve the General Rate Increases (GRIs) that they have supposedly imposed amongst the increase in capacity and persistent low demand, which will lead to greater capacity management according to one expert.

Long term shipping commentator and industry insider John McCown in his latest report suggests that the impact on capacity caused by the congestion as a result of the pandemic allowed carriers to take advantage of...

https://container-news.com/carriers-set-for-major-blanking-programme/

Demolition to stay in the doldrums

Any expectation that capacity will be removed from the market over the coming year is being scotched by market analysts who say that the age profile of vessels points to depressed scrapping over the coming year.

Only 82 boxships have been scrapped to date in 2023, amounting to just 145,50 TEUs, which has been more than offset with 40 ships of 247,441 TEUs delivered over the last 30 days alone, according to an analysis by Linerlytica.

This is a significant increase on the 23 ships demolished in...

https://container-news.com/demolition-to-stay-in-the-doldrums/

Analyst says Maersk rate cutting behind Q3 losses

Analysis by Hong Kong-based Linerlytica suggests that the sudden and deep decline in container freight rates in the third quarter was initiated by Maersk Lines’ attempts to recover market share.

Container freight rates have declined significantly over the course of this year as market fundamentals have been hit by a double shock with demand declining and capacity soaring as record levels of ordering translated into deliveries.

As a result, Linerlytica said Maersk “swung” into a US$27 million EBIT...

https://container-news.com/analyst-says-maersk-rate-cutting-behind-q3-losses/

Panama Canal limits fail to halt rate slide as box lines up capacity

The Panama Canal transit restrictions have not stopped carriers from adding 20% of incremental capacity on the Asia-US East Coast route since the end of August, with the average capacity deployed over the last five weeks reaching 246,000 TEUs, compared to 204,000 TEUs in the preceding five weeks, according to Linerlytica’s latest report.

Capacity utilisation has slipped to 85%, as freight rates have fallen by US$1,000 since then, to about US$2,1000/FEU today (19 September).

The Shanghai...

https://container-news.com/panama-canal-limits-fail-to-halt-rate-slide-as-box-lines-up-capacity/

CMA CGM halts Mediterranean service as rates sink

CMA CGM’s new Asia-Mediterranean service has fallen victim to falling freight rates, after just six sailings.

The French carrier has suspended its newly launched Turkey-Libya Express (TLX) service, which commenced in July, calling at Shanghai, Ningbo, Nansha, Singapore, Jeddah, Iskenderun, Malta and Misurata, with ad hoc calls at Lianyungang and Tripoli. TLX had its last sailing on 11 August.

Rates to the Mediterranean have been rapidly deteriorating after holding on to the premium over the...

https://container-news.com/cma-cgm-halts-mediterranean-service-as-rates-sink/

Transpacific rates rise on Canadian port strike

Transpacific container rates went up again when the Shanghai Containerized Freight Index (SCFI) closed on 14 July, as congestion built up in the US West Coast due to dockers’ strike on the Canadian west coast. Liner operators also blanked sailings in response to bleak demand.

The index showed Asia-US West Coast rates and Asia-US East Coast rates at US$1,771/FEU and US$2,662/FEU respectively, up 26% and 12% from 7 July.

Linerlytica, in a note released on 17 July, said, “Momentum is strong for...

https://container-news.com/transpacific-rates-rise-on-canadian-port-strike/

E-Shipping The Latest Carrier To Launch Russia Service

Credit: venti-views-unsplash

Turkey’s e-Shipping has joined the league of newcomers offering container shipping services to Russia, The Loadstar.

About the deal

Through an agency agreement with South Korean forwarder Farmko GLS, e-Shipping, which opened for business in February, has launched its Korea Vladivostok Express (KVE) service, connecting South Korea and China with the Russian Far Eastern port of Vladivostok.

Two 1,600-1,800 teu ships and one of 665 teu have been chartered by e-Shipping for...

https://mfame.guru/e-shipping-the-latest-carrier-to-launch-russia-service/

SM Line expected to grow HMM investment when Seoul sells its share

Speculation about a possible union of South Korea’s two ocean-going liner operators has grown after SM Merchant Marine (also known as SM Line) extended its stake in HMM, and could increase its share further this year.
On 29 December, SM Line, which the Samra Midas (SM) group formed in 2016 after acquiring the remaining operations of bankrupt Hanjin Shipping, acquired an additional 613,438 shares in HMM for $14m, bringing its holding …

The post SM Line expected to grow HMM investment when Seoul...

https://theloadstar.com/sm-line-expected-to-grow-hmm-investment-when-seoul-sells-its-share/

Ocean Shipping Reform Act won’t alleviate issues in container shipping: industry players

Shippers and market observers have expressed scepticism at the passing of the Ocean Shipping Reform Act (OSRA) by the US House of Representatives on 8 December in Washington DC passed a bipartisan bill designed to strengthen shipping supply chains. OSRA was passed by 364 votes, while 60 house members voted against it.

OSRA obliges shipping companies to adhere to “minimum service standards that meet the public interest” and prevents them from rejecting cargoes without good reasons.

Democrat...

https://container-news.com/ocean-shipping-reform-act-wont-alleviate-issues-in-container-shipping-industry-players/

Operations in southern Vietnamese ports slow to a crawl with Covid-19 outbreak

Ho Chi Minh City is now the Covid-19 epicentre of Vietnam and the resulting lockdown of the country’s commercial capital has slowed port operations in the southern part of the country.

Movement restrictions have been imposed in the southern Vietnamese city until 1 August, after thousands of Covid-19 infections were confirmed.

A spokesperson for Hapag-Lloyd told Container News that several factors, including the recent grounding of Ever Given in the Suez Canal and the bottleneck in China’s Yantian...

https://container-news.com/operations-in-southern-vietnamese-ports-slow-to-a-crawl-with-covid-19-outbreak/

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