Ocean carriers

Contagion Phenomenon, 2-Year Profit for Ocean Carriers

  • Shippers are bracing for a further broadside of rate increases in June across multiple trades, as ocean carriers beef up profits ahead of the peak season.
  • After a period of stability, following hikes of up to 200% in the second half of last year, transpacific carriers are rolling out a raft of new GRIs, effective 1 June.
  • For example, Hapag-Lloyd is advising its Asia to North America rates will rise by $1,200 per 40ft.

A Loadstar news article reveals that freight rate ‘contagion’ will bring a...

https://mfame.guru/contagion-phenomenon-2-year-profit-for-ocean-carriers/

Fraudulent Contract Bookings & Sky-high FAK Rates

  • Ocean carriers are cracking down on a spike in fraudulent contract bookings being driven by sky-high FAK rates from Asia.
  • Moreover, forwarders are gaining business from shippers based on “speculative” quotations.
  • Shippers not to fall into the trap, and to proceed with caution and ensure you speak to your current supplier before jumping ship.

A recent news article published in the Loadstar written by Mike Wackett reveals that sky-high container spot rates spark emergence of ‘dark side’ of...

https://mfame.guru/fraudulent-contract-bookings-sky-high-fak-rates/

Angry Clients Question Shipping Line Reliability & Accountability As Rates Pile Up

Shipping lines are facing increasingly angry customers as rates continue to soar and service levels plunge. Many are noting their frustrations on LinkedIn as the debate over whether carriers are profiteering rumbles on, reports the LoadStar.

Is Reliability A Thing Of the Past?

In one typical example, the international transport manager for a furniture company claims accountability and reliability are now a “thing of the past”, while playing the blame game is the new top trend.

The manager notes...

https://mfame.guru/angry-clients-question-shipping-line-reliability-accountability-as-rates-pile-up/

Shippers Embrace ‘Tough Times’ Amid Spiraling Bunker Surcharges

With the oil prices heading north again, ocean carriers are preparing to ramp up low-sulphur fuel surcharges to add to the misery of shippers struggling with sky-high freight rates, surcharges and premium fees, reports the Loadstar.

Brent crude & HSFO prices take a hike

The price of Brent crude has increased by 41% since early September, to $55 a barrel, with an 8% spike alone last week driven by Saudi Arabia’s pledge to cut output.

During the same period, heavy fuel oil (HFO), consumed by ships...

https://mfame.guru/shippers-embrace-tough-times-amid-spiraling-bunker-surcharges/

Should shippers rely on steamship lines for first- and last-mile logistics?

Drayage truck at port surrounded by containers

Many shippers have been readjusting their supply chains to compensate for COVID-19’s disruptions, and they may observe that in a slow market, more steamship lines are offering first- and last-mile logistics services as a way to drive additional revenue and shore up bottom lines.

On the surface, this all-in-one service offering seems like a sound idea for shippers eager to save money and time in their busy schedules. After all, who would be better than the ocean carrier to coordinate a door...

https://www.freightwaves.com/news/should-shippers-rely-on-steamship-lines-for-first-and-last-mile-logistics

How the FMC monitors ‘blank sailings’ and their competitive impacts

U.S. Federal Maritime Commission

The coronavirus pandemic has made the schedule-driven ocean container carriers seasick. To counter decreased U.S. import volumes and maximize vessel operations, these companies have resorted to the use of “blank,” or canceled, sailings.

Shippers and non-vessel-operating common carriers have struggled to manage their own fragile supply chains against hundreds of skipped-sailings announcements in recent months.

While blank sailings offer ocean container carriers a means to economize their...

https://s29755.pcdn.co/news/how-the-fmc-monitors-blank-sailings-and-their-competitive-impacts

Commentary: Flags of inconvenience causing problems for crew members

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.  

On a tonnage basis about 70% of U.S. exports and imports travel by ocean vessel. Volume-wise it is the most important mode of international trade. When merchandise trade is focused on Canada and Mexico, as members of the United States-Mexico-Canada Agreement (USMCA), the motor carrier sector dominates in U.S. export flows. Since March 21, 2020 border crossings...

https://s29755.pcdn.co/news/commentary-flags-of-inconvenience-causing-problems-for-crew-members

Coronavirus-related declines spur Port of Oakland budget decrease

The Port of Oakland said coronavirus-induced business declines forced it to cut back its spending plans.

Port commissioners last week approved a fiscal year 2021 budget with 15.84% less in operating and capital expenditures than the previous year. The California port’s 2021 fiscal year began Wednesday.

“This budget is based on neither unsubstantiated hope nor on speculation of any worst-case scenario,” said Port of Oakland Executive Director Danny Wan. “It is based on best estimates of how our...

https://s29755.pcdn.co/news/coronavirus-related-declines-spur-port-of-oakland-budget-decrease

HMM Flooded With Boxships As Carriers Crunch Capacity

According to a LoadStar article written by Gavin Van Marle, every deepsea carrier has reduced its operating capacity this year, except South Korea’s HMM, which is taking delivery of a series of the world’s largest vessels.

The Situation So Far
  • And, in a double-whammy, the carrier has also seen nine ships, amounting to nearly 100,000 teu, returned from its former 2M partners, according to new research from Alphaliner.
  • As part of a cooperation agreement signed in 2017, 2M partners Maersk and MSC...

https://mfame.guru/hmm-flooded-with-boxships-as-carriers-crunch-capacity/

Shipowners Worried As Containership Hiring Declines by 50%

According to a LoadStar article written by Mike Wackett, ocean carriers’ optimism is being driven by higher freight rates and cheaper fuel – but tumbling charter hire costs are proving to be the icing on their cake.

50% Slump in Hiring

According to a recent Alphaliner report, containership daily hire rates have slumped by up to 50% since the coronavirus pandemic wrecked global demand and led container lines to off-hire surplus tonnage and decline extension options.

“Tonnage providers are looking...

https://mfame.guru/covid19-shipping-impact-gets-hard-to-bear-for-containership-owners-as-rates-tumble/

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