SeaIntelligence Consulting

More blanked sailings and volume volatility – ‘that is simply the new norm’

Container terminals should “get used to blanked sailings and volume volatility”, while shifting trade flows could benefit hub ports over gateways.
According to Lars Jensen, CEO of SeaIntelligence Consulting, liner industry consolidation has been “phenomenal” in allowing carriers to manage capacity through blanked sailings, with the bumper profits seen in Q2 likely to ensure the frequent withdrawal of capacity becomes a mainstay.
“Ports and terminals have to get used to a market …

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https://theloadstar.com/more-blanked-sailings-and-volume-volatility-that-is-simply-the-new-norm/

Rock Bottom Demand Forces Shipping Lines To Shrink Operations

  • The 17.7% month-to-month increase in retail sales in the U.S. in May still left overall sales below pre-pandemic levels.
  • In the European Union, retail trade fell 11.1% in April from March, according to official statistics agency Eurostat.
  • The retail group forecasts annual declines for May, June and July of 14.6%, 12.9% and 17.4%, respectively.
  • The falling demand has pushed ocean shipping lines to sharply retrench their operations.

A distinguished article published in The Wall Street Journal,...

https://mfame.guru/rock-bottom-demand-forces-shipping-lines-to-shrink-operations/

‘If box carriers lose control of rate levels, then shipping losses could hit $23bn’

Shipper and forwarders planning their container shipment bookings for the third quarter can expect a new wave of blanking announcements over the next two-to-three weeks.
While the second quarter of the year was characterised by a wave of cancelled sailings, there have, so far, been relatively few announced for the third quarter, according to eeSea data.
During July, there are some 235 headhaul sailings scheduled for the Asia-North Europe and transpacific trades, …

The post ‘If box carriers lose...

https://theloadstar.com/if-box-carriers-lose-control-of-rate-levels-then-shipping-losses-could-hit-23bn/

Consolidation the saving grace for container lines in a ‘new competitive landscape’

Shipping lines have realised the benefits of consolidation during the coronavirus crisis, with the sector seeing a “new competitive landscape”.
According to Lars Jensen, CEO of SeaIntelligence Consulting, carriers’ ability to control capacity is better than ever, since there are now only “seven or eight” global carriers and just three alliances on the deepsea trades.
“In the three months impacted by the virus, demand has dropped, in some cases 20%-30%, and the …

The post Consolidation the saving...

https://theloadstar.com/consolidation-the-saving-grace-for-container-lines-in-a-new-competitive-landscape/

FMC commissioners call for federal support for ‘struggling’ box terminal operators

The US federal government should consider stepping in to help container terminal operators stay in business, as volumes plummet as a consequence of the coronavirus pandemic.
Two FMC commissioners, Carl Bentzel and Louis Sola, have written to the department of transport urging it to look at ways of bringing financial relief to the sector.
They said they feared some terminal operators could rack such substantial losses that they could cease operating.
“We have …

The post FMC commissioners call for...

https://theloadstar.com/fmc-commissioners-call-for-federal-support-for-failing-box-terminal-operators/

Carriers could find the cost of blanked sailings adding up to $23 billion

The container shipping industry could lose as much as $23bn this year from reduced demand in the wake of the coronavirus pandemic.
Demand for unitised shipping services is set to nosedive as a result of the economic devastation wrought by large swathes of the world forced into social lockdowns.
Research today from liner analyst SeaIntelligence Consulting reports that the best carriers can hope for this year would be a 10% decline in …

The post Carriers could find the cost of blanked sailings...

https://theloadstar.com/carriers-could-find-the-bill-for-blanked-sailings-adding-up-to-23-billion/

Coronavirus may lead to ‘largest decline in shipping volumes in living memory’

As the retail industry across Europe and North America begins to effectively shut down as governments enforce widespread social lockdown, there are increasing warnings that the container shipping industry is set to see some of the largest declines in volumes in living memory.
According to liner analyst SeaIntelligence Consulting, the possibility of a 10% decline in global container shipments – which would equate to 17m teu carried by the world’s box …

The post Coronavirus may lead to ‘largest...

https://theloadstar.com/coronavirus-may-lead-to-largest-decline-in-shipping-volumes-in-living-memory/

‘Coronavirus impact subsiding rapidly’ as China shipping revives

While Europe and North America begin to grapple with the alarming spread of coronavirus cases, shipping activity in China appears to be picking up, according to new data from liner consultancy SeaIntelligence.
It says there is now a clear reduction in the number of announced blank sailings by carriers as trucking operations resume in China, leading to increased export cargo arriving at ports and ships are needed to handle the backlog …

The post ‘Coronavirus impact subsiding rapidly’ as China...

https://theloadstar.com/coronavirus-impact-subsiding-rapidly-as-china-shipping-revives/

Digitisation and a shift in buying power is putting pressure on shipping rates

The battle for a market that could amount to 30m teu globally is now between carriers, forwarders and digital offerings, delegates at this week’s TOC Container Supply Chain conference in Rotterdam were told.
Lars Jensen, chief executive and partner of SeaIntelligence Consulting, said: “There will be a fundamental change in the competitive dynamics between carriers, and this will take place no matter what happens in terms of supply and demand in the …

The post Digitisation and a shift in buying...

https://theloadstar.com/digitisation-and-a-shift-in-buying-power-is-putting-pressure-on-shipping-rates/

‘An end to shipping alliances would see freight rates skyrocket’

Shipper opposition to deepsea liner shipping alliances may be dangerously misplaced, delegates at the TOC Container Supply Chain event in Rotterdam heard yesterday.
Lars Jensen, chief executive and partner of SeaIntelligence Consulting, said efforts by some to bar container lines from operating in alliances, claiming they have become anti-competitive, would result in freight rates “skyrocketing”.
The EU’s Block Exemption Regulation (BER), the de facto legislation covering liner alliances and...

https://theloadstar.com/an-end-to-shipping-alliances-would-see-freight-rates-skyrocket/

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