Shipping alliances

Container trade’s next turn: Price wars, cheap contracts, new ships

What does the future hold for container shipping alliances and price competition among ocean carriers? How low will spot and long-term freight rates go in the Asia-U.S. trade? And what happens when a massive wave of new container vessels starts hitting the water in the months ahead?

These are just some of the issues addressed by Vespucci Maritime CEO Lars Jensen and Xeneta CEO Patrik Berglund during FreightWaves’ Global Supply Chain Week (GSCW) virtual forum on Tuesday.

The future of alliances

The...

https://www.freightwaves.com/news/container-trades-next-chapter-price-wars-cheap-contracts-new-ships

Forwarders fear ‘shut-out’ as other major lines emulate Maersk strategy

Increasing numbers of forwarders claim they are being “shut out” by shipping lines that appear to be focusing on very large forwarders and BCOs.
There is suspicion that several European carriers are looking at a similar approach to that of Maersk.
“We’re getting the feeling and feedback from individual sources that this is the case,” one US forwarder executive said.
He said none of the shipping lines had made a clear statement that …

The post Forwarders fear ‘shut-out’ as other major lines...

https://theloadstar.com/forwarders-fear-shut-out-as-other-major-lines-emulate-maersk-strategy/

Beware ‘nasty side effects’ if government targets ocean carriers

container shipping

As skyrocketing rates squeeze importers and exporters scramble for containers, the push for government intervention is accelerating.

What if the U.S. government does move to rein in foreign carriers? What if carrier alliances are broken up, detention and demurrage charges are curtailed, export service is mandatory and — most hypothetically — spot rates are capped?

To answer these questions, American Shipper spoke with Lars Jensen of Denmark-based Vespucci Maritime. The consultant and former...

https://www.freightwaves.com/news/beware-nasty-side-effects-if-government-targets-ocean-carriers

[Infographic] Fleet Consolidation Boost Container Freight Rates

Container shipping has sailed through the coronavirus pandemic largely unscathed, as ship-sharing alliances and supply curbs to bolster freight rates have helped operators to offset tepid trade demand, reports Platts.

These new approaches to manage capacity will help the industry cope with the long-term challenge of overcapacity in the years ahead.

Blank sailings

When the pandemic started to hit global trade in March, these alliances were able to move quickly and decisively to reduce overcapacity...

https://mfame.guru/infographic-fleet-consolidation-boost-container-freight-rates/

How Containershipping Showed Resilience To Avert the COVID19 Crisis

Although the pandemic has brought chaos to the global economy, many lines are making more money, reports the Financial Times.

Holding a small axe in a white-gloved hand, South Korea’s first lady Kim Jung-sook cut the ropes tethering the HMM Algeciras and officially launched the world’s biggest containership at a ceremony in April.

The towering vessel, the first of a dozen ordered by shipping line HMM, is the size of four football pitches. If loaded on to a train, the 23,964 20-foot metal boxes it...

https://mfame.guru/how-containershipping-showed-resilience-to-avert-the-covid19-crisis/

Q&A: Inside the early warning system of global trade

container ships

There have been pandemics before, but never at a time when the global economy was this interconnected. There have been global recessions before, but never one driven by the mix of forces seen in 2020.

With all the uncertainty, there’s an intense hunger for leading indicators, and ocean shipping — particularly container shipping — has offered an early warning system ever since the coronavirus crisis began in late January.

Container lines “blank” (cancel) sailings well ahead of scheduled departures...

https://s29755.pcdn.co/news/qa-inside-the-early-warning-system-of-global-trade

ITF warns governments to be careful bailing out debt-laden carriers

As the economic fallout from the coronavirus pandemic continues, the OECD’s International Transport Forum (ITF) has renewed its criticism of the structure of the liner shipping industry, according to Splash247. The slump in consumer demand has driven a steep decline in volumes and looks set to wreak havoc on carriers’ balance sheets, and led the ITF to refine its warnings about the re-emergence of state subsidies and associated loss of …

The post ITF warns governments to be careful bailing out...

https://theloadstar.com/itf-warns-governments-to-be-careful-bailing-out-debt-laden-carriers/

Anger from objectors as liner shipping block exemption extension is ‘nodded through’

A forum of shippers, freight forwarders and port service providers have slammed the high-handedness of the EC for including an extension of the consortia block exemption regulation (BER) for liner shipping in its 2020 work programme to the European parliament.
The “done deal” for a four-year BER extension was included in the EC’s communication to the European parliament on 29 January, under Annex 11 item 27, which it justified as continuing …

The post Anger from objectors as liner shipping block...

https://theloadstar.com/anger-from-objectors-as-liner-shipping-block-exemption-extension-is-nodded-through/

Yet another ‘challenging’ year for box carriers balancing demand and capacity

2020 will prove another challenging year for ocean carriers in terms of capacity management, according to Drewry.
Although the consultant claimed the industry would be able to cope.
Drewry calculates that 1.2m teu of capacity will be added to the fleet this year, of which almost half comprises 23 20,000-plus teu ULCVs for HMM, CMA CGM and MSC.
According to Alphaliner data, the containership fleet grew by 4% in 2019, to 23.2m teu …

The post Yet another ‘challenging’ year for box carriers...

https://theloadstar.com/yet-another-challenging-year-for-box-carriers-balancing-demand-and-capacity/

THE Alliance formally adopts HMM as a new member and boosts ‘contingency fund’

THE Alliance members have filed an amended version of their vessel-sharing agreement (VSA), to incorporate new member HMM, with the US Federal Maritime Commission (FMC), according to Alphaliner. 
It will also include provision for an increase in its $50m contingency fund from a significant financial commitment from the South Korean carrier. 
HMM will join THE Alliance on 1 April next year, after its slot charter agreement with the 2M Alliance comes to an end. 
Until then it is purchasing Asia...

https://theloadstar.com/the-alliance-formally-adopts-hmm-as-a-new-member-and-boosts-contingency-fund/

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