Ocean freight rates

FMC requires more pricing, capacity data from container ship companies

Overhead view of container ship

Federal regulators are stepping up oversight of ocean carriers by ordering them to submit more comprehensive pricing and capacity data with the goal of protecting against anticompetitive rates and service.

The Federal Maritime Commission announced on Thursday that the three global carrier alliances dominating global shipping (2M, Ocean and THE), along with the 10 member companies that participate in them, will now have to begin providing “uniform data to use in assessing ocean carrier behavior...

https://www.freightwaves.com/news/fmc-requires-more-pricing-capacity-data-from-container-ship-companies

Freight economist to government: Stay out of ocean shipping mess

Cranes lifting containers off a vessel onto shuttle tractors.

Calls for the U.S. government to regulate the shipping industry in response to massive delays, insufficient vessel and container capacity, skyrocketing transport rates and terminal late fees are misguided because conditions are the result of overwhelming consumer demand and unusual supply volatility caused by COVID, a leading freight economist said Wednesday.

“You’ve got an industry in freight movement that grows at a 3% to 5% pace a year. All of a sudden you have this surge of 20% in volumes....

https://www.freightwaves.com/news/freight-economist-to-government-stay-out-of-ocean-shipping-mess

Ocean Freight Rates Rising Steadily

Ocean freight rates are rising steadily as high demand has led to a shortage of containers and to congested ports, reports korea joongang daily.

SCFI A Record High

The Shanghai Containerized Freight Index (SCFI), a barometer of ocean freight rates, hit 3,343.34 points on May 14, a record high. On year, it is up three-fold.

While the SCFI has been rising steadily during the pandemic, it has spiked since March when the Ever Given blocked the Suez Canal for six days.

Forty-Foot Equivalent Unit

A...

https://mfame.guru/ocean-freight-rates-rising-steadily/

FreightWaves Flashback: A simple error in measurement

FreightWaves Classics articles look at various aspects of the transportation industry’s history. If there are topics that you think would be of interest, please send them to [email protected].

The many industries that make up the world of freight have undergone tremendous change over the past several decades. Each week, FreightWaves explores the archives of American Shipper’s nearly 70-year-old collection of shipping and maritime publications to showcase interesting freight stories of...

https://www.freightwaves.com/news/freightwaves-flashback-a-simple-error-in-measurement

Spike in Long-term Contracted Ocean Freight Rates

  • Long-term contracted ocean freight rates are continuing their dizzying ascent, with a 4.1% climb in April leaving container shipping costs up 21.1% year-on-year.
  • According to the latest market intelligence from Xeneta’s Shipping Index Public Indices report for the long-term contract market, prices escalated across all major global trade.
  • On the contrary, the fallout from Ever Given’s Suez Canal blockage has added further pressure to supply chains already stretched by lack of capacity.

A recent...

https://mfame.guru/spike-in-long-term-contracted-ocean-freight-rates/

Freight Rates Shoot Up Due to Rush in Exports

  • Ocean freight rates are up as much as threefold on year, and the firmness of pricing could remain and help Korea’s shippers for the rest of 2021.
  • The Shanghai Containerized Freight Index (SCFI) averaged 999.3 in January 2020. It is now about 2,870 points.
  • Since Oct. 9, the figure has been climbing every week on resumption of manufacturing in China.
  • Demand for ship transportation usually surges ahead of the Lunar New Year holiday.
  • This is attributed to tendency of exporters transporting...

https://mfame.guru/freight-rates-shoot-up-due-to-rush-in-exports/

Boxship Demolitions Abandoned Amid Spike in Freight Rates

Containership demolition virtually dried up in December as shipowners and carriers deployed all available tonnage to meet surging demand across trades, says an article published in the loadstar.

Huge spikes in Ocean freight rates

Huge spikes in ocean freight rates in the second half of last year and corresponding hikes in charter hire rates enabled previously uneconomic smaller containerships to become sought-after by carriers desperate to plug gaps in their networks and take advantage of the...

https://mfame.guru/boxship-demolitions-abandoned-amid-spike-in-freight-rates/

The mystery of the frozen trans-Pacific spot rates

trans-Pacific container port

Historically strong Asia-U.S. container demand has fluctuated since mid-September. The numbers change from week to week and month to month. It’s not as if trans-Pacific demand hit a peak 10 weeks ago and froze in place.

The strange thing is that spot index rates did exactly that. 

Rates differ slightly based upon which source you look at, whether it’s the Shanghai Containerized Freight Index (SCFI), Freightos or Drewry’s. But the pattern is the same. 

As of Monday, the Freightos Baltic Daily Index...

https://s29755.pcdn.co/news/the-mystery-of-the-frozen-trans-pacific-spot-rates

FMC keeps spotlight on ocean forwarder, consolidator concerns

U.S. Federal Maritime Commission

The coronavirus pandemic may have disrupted international supply chains for much of the year, but a top official at the Federal Maritime Commission said his agency has remained vigilant in its responsibility to ensure competition within the U.S. ocean container shipping trades.

“I am pleased to say that, because of advance planning and preparation, the commission has remained fully open and operational throughout these difficult times,” FMC Chairman Michael Khouri told online attendees of the Nat...

https://s29755.pcdn.co/news/fmc-keeps-spotlight-on-ocean-forwarder-consolidator-concerns

Ocean Carriers Respond Amid Erratic Freight Rates

  • Uncertain outlook as ocean freight rates fall and carriers respond.
  • Rates fell for the second consecutive month as the ramifications of coronavirus continue to impact the global economy.
  • Based on crowd-sourced data from leading shippers, Xeneta reports that rates are now down over one percent year-over-year.

The outlook for long-term contracted ocean freight rates continues to look weak based on data from the shipping industry and economic forecasts according to the latest XSI Public Indices...

https://mfame.guru/ocean-carriers-respond-amid-erratic-freight-rates/

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