Shipping demand

What nearshoring?

Chart of the Week: Inbound Ocean TEUs Index – USA  SONAR: IOTI.USA

Bookings for 20-foot equivalent container imports (IOTI) are up 27% versus mid-June of 2019 and 11% over last year. With all the talk and expectations of nearshoring, goods coming from overseas are still flowing strong and having a noticeable impact on domestic transportation patterns. 

The IOTI is a 14-day moving average index of orders (bookings) of 20-foot equivalent containers (TEU) based on the time of departure from the port...

https://www.freightwaves.com/news/what-nearshoring

Peak Shipping Season For Freight Carriers Is Crashing

  • The peak shipping season is fizzling as overstocked retailers cancel overseas orders and freight companies scale back expectations for heavy freight volumes heading into the holidays.
  • Typically in the last quarter of the year, cargo carriers from container lines to parcel operators bulk up their profits on strong demand.

A recent news article published in WSJ states that Freight Operators’ Peak Shipping Season Is Crumbling.

Measures of shipping demand across the U.S.

But a range of measures of...

https://mfame.guru/peak-shipping-season-for-freight-carriers-is-crashing/

Closure Of Chinese Factories To Have A Knock-on Effect For Supply Chains

  • As container prices from China head south, drought and power rationing has triggered the closure of factories along the crucial Yangtze River commercial corridor.
  • A record heatwave in China’s south-west Sichuan province has led to depleted reservoirs and rolling blackouts as hydropower plants were forced to reduce electricity output.

A recent news article published in the Loadstar states that drought and power shortages bring crucial factories in China to a standstill.

Factories in Sichuan were...

https://mfame.guru/closure-of-chinese-factories-to-have-a-knock-on-effect-for-supply-chains/

Charting A New Course for A Safer Shipping Industry

  • Prices for global shipping have skyrocketed with follow-through consequences for economies in general
  • An estimated 80% of the world’s goods are transported by sea
  • Oligopolistic and ancient industry structure looks ripe for disruption, but easier said than done

As 2021 is exposing many of the flaws and fragilities of the global shipping industry, disruption seems but the logical response. However, reforming the industry is far easier said than done, writes Ed Kennedy for FN Arena.

Suez canal...

https://mfame.guru/charting-a-new-course-for-a-safer-shipping-industry/

Shipping Demand Stays Strong Amid Tight Sea Cargo Market

According to Hapag-Lloyd CEO, a robust demand for shipping goods across the world’s oceans shows no signs of slowing down signaling that elevated rates in the tight market for seaborne cargo may extend into the second half of the year, Bloomberg Quint reports.

Surging demand amid strong bookings

Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said “Last week and this week we’ve still seen very strong bookings,” on a conference call April 8. “So I don’t see any signs around the corner than demand is...

https://mfame.guru/shipping-demand-stays-strong-amid-tight-sea-cargo-market/

Shipping Demand and Spot Rates Dwindle Post Lockdowns

  • Chemical tanker spot shipping continues to be slow intra-Europe, following freight rates declines of June.
  • Spot freight rates on the Transatlantic (TA) westbound route moved down as slower interest in spot fixtures.
  • Sentiment is dull in the Asian chemicals freight market, with very few fresh enquiries for the second half of July and August.
  • Freight rates on the Europe to Asia route have also softened at the turn of the months.

Shipping demand has fallen notably and spot freight rates on some...

https://mfame.guru/shipping-demand-and-spot-rates-dwindle-post-lockdowns/

COVID-19: Shipping Industry Grappling With the Pandemic!

  • The impact of the COVID-19 pandemic on the shipping industry has not only decreased demand of growth prospects, but also has affected fleet development.
  • The shipping contracting activity, which was already low before the COVID-19 pandemic, has only worsened contracting activity dropped 55% from the first quarter of 2019.
  • The negative effect of COVID-19 in the industry has made many owners opting to have their ships demolished.
  • A short term impact of the COVID-19 is the delays of newbuilt ships...

http://mfame.guru/covid-19-shipping-industry-grappling-with-the-pandemic/

US Sanctions: Spot Freight Rate Goes Up With Shipping Demand

US sanctions on Chinese state-owned company COSCO Dalian Tanker Shipping are threatening to disrupt long-term trade flows from Malaysia, Indonesia and Australia to the world’s second largest LNG importer, and raising prompt charter demand and freight rates, reports Platts.

Ship tracking data: Freight rates and shipping demand

Several vessels delivering LNG as part of long-term contracts from Indonesia’s Tangguh, Malaysia’s Bintulu and Australia’s North West Shelf, worth nearly 9 million mt/year...

http://mfame.guru/us-sanctions-spot-freight-rate-goes-up-with-shipping-demand/

Maersk Says US-China Trade War Hitting Shipping Demand

In a major development, the Danish shipping giant A.P. Moeller-Maersk AS swung to a first-quarter loss and warned that rising trade tensions between the U.S. and China could cut container growth by up to a third this year, writes Costas Paris in an article published in the Wall Street Journal.

Another report published by the Maritime Executive highlights how A.P. Moller – Maersk has closed the first quarter of 2019 with a 33 percent increase in earnings before interest, tax, depreciation and...

http://mfame.guru/maersk-says-us-china-trade-war-hitting-shipping-demand/