supply-demand

‘The Past A Friend’ For Today’s American Economic Recession!

Credits: John McArthur/ Unsplash
  • Years into the pandemic, it is still difficult to get a handle on what comes next for the economy by looking at examples from the past.
  • Loss of economic momentum feeds on itself, and the nation plunges into a recession. 
  • New home sales have fallen off a cliff as surging mortgage costs and the recent price run-up has put purchasing a house out of reach for many families.

Historical data has always been critical to those who make economic predictions. But three...

https://mfame.guru/the-past-a-friend-for-todays-american-economic-recession/

Freight Rates Down By 90% As Global Trade Falls Off Fast

Credits: Andy Li/ Unsplash
  • Prices in the ocean freight contract market posted a record monthly drop in November.
  • Central banks around the world are fighting inflation by raising interest rates and cooling demand, but that can quickly turn into a recession.
  • While November could represent the low point, logistics firms are warning of an all-out price war in 2023 with too many ocean vessels.

Logistics managers are sending the message to clients that the ocean freight market is correcting itself at...

https://mfame.guru/freight-rates-down-by-90-as-global-trade-falls-off-fast/

Unsustainable Asia Freight Rates Makes Carriers Lose Pricing

Credits: Christian Lue/ Unsplash
  • Spot cargo from Asia is being heavily discounted by ocean carriers as a “top-up” for their much higher-paying contract business. 
  • Carriers have effectively encouraged forward quoting by Chinese forwarders with fictitious rates, a director of a UK-based forwarder says.
  • UK forwarders say that carriers have been given “carte blanche” on rates to fill the ships this side of Christmas.

Spot cargo from Asia is being heavily discounted by ocean carriers as a “top-up”...

https://mfame.guru/unsustainable-asia-freight-rates-makes-carriers-lose-pricing/

Ship operating costs up 773%, demand up, supply up, congestion up, shipper propaganda up

Pictured: rows and columns of containers in a stack. Photo: OlafPictures via Pixabay

Current market conditions are caused by a huge surge in the demand for container transport. On the supply side, box port congestion and poor container port performance are  reducing the supply of shipping. The costs to operate a ship are massively escalating.

COVID has induced a demand-squeeze. In such a squeeze, demand increases massively and rapidly while supply (which involves the physical building of, and...

https://www.shippingaustralia.com.au/ship-operating-costs-up-773-demand-up-supply-up-congestion-up-shipper-propaganda-up/

Governments must intervene in the PPE industry to ensure future supply

Public health procurement officials around the world need to radically rethink their supply chain strategies to avoid a repeat of the chaos that engulfed PPE logistics in the early weeks of the coronavirus pandemic.
As the pandemic spread from China across the world in March and April, the provision of personal protective equipment (PPE) to health professionals fell woefully short of what was required in almost every country, due to a …

The post Governments must intervene in the PPE industry to...

https://theloadstar.com/governments-must-intervene-in-the-ppe-industry-to-ensure-future-supply/

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/

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/

IMO 2020: the curved ball that acted as a counterweight for box shipping

The bellwether Shanghai Containerized Freight Index (SCFI), which records container spot rates from China to the major tradelanes of the world, will end 2019 on a par with last year – but, as usual, the narrative surrounding how that has been achieved is much more complex.
Global container growth has slowed dramatically, with some analysts predicting expansion for the year of just 1% to 2%, compared with the 4% of 2018.
A …

The post IMO 2020: the curved ball that acted as a counterweight for box...

https://theloadstar.com/imo-2020-the-curved-ball-that-acted-as-a-counterweight-for-box-shipping/

CSSC Research Shows Signs of Recovery in Newbuild Orders

According to an article published in Seatrade-Maritime News, a significant drop in newbuilding orders across the three conventional merchant ship types is an obvious signal of recovery for the shipping industry, according to China Shipbuilding Industry Research Center (CSIRC).

Achieving supply-demand balance

Liu Ersen, senior analyst and offshore market research director at CSIRC, considered that a supply-demand balance has been reached for the once oversupplied shipping market – albeit a...

http://mfame.guru/cssc-research-shows-signs-of-recovery-in-newbuild-orders/