Trans-Pacific

Trans-Pacific shipping rates rise as carriers make capacity cuts

Shipping lines finally seem to be making some headway in managing vessel capacity in the Asia-U.S. trades.

Spot rates have been on the rise for three straight weeks, rebounding to levels last seen in early 2023 and late 2022, according to several index providers. U.S. import bookings remain above pre-COVID levels, and multiple analysts are now highlighting positive rate effects from reduced vessel capacity.

Liners managing down trans-Pacific capacity

“Typically, higher demand leads to higher...

https://www.freightwaves.com/news/trans-pacific-shipping-rates-rise-as-carriers-constrain-capacity

Container shipping under pressure as peak season hopes dim

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One of the earlier scenarios for container shipping’s 2023 peak season went like this: Importers...

https://www.freightwaves.com/news/container-shipping-under-pressure-as-peak-season-hopes-dim

Crunch time for trans-Pacific container shipping contract talks

a chart showing trans-Pacific spot rates; current spot rates are negatively affecting contract rates

The annual contract season is down to the final stretch in the trans-Pacific shipping market. U.S. import costs, liner profitability and service reliability all hinge on where contract prices settle in the next few weeks.

The plot twist this year is that the prior round of annual contracts were signed at historically high levels and the timing of the current contract RFP season coincides with a period of still-sinking spot rates.

Import demand remains weak due to bloated inventories, with inbound...

https://www.freightwaves.com/news/crunch-time-for-trans-pacific-container-shipping-contract-talks

Container shipping rates still sinking, no sign yet of market floor

chart of shipping rates

So much for the theory that container lines are a nefarious cartel that can control freight pricing — spot rates are still falling over a year after they peaked.

“This cliff that rates have fallen from shows there is more competition in the market than a lot of people had feared,” said Patrik Berglund, CEO of rate-tracking company Xeneta, in a recent interview with American Shipper.

The pace of spot-rate declines did slow in some trade lanes in October versus August and September. However, rate...

https://www.freightwaves.com/news/container-shipping-rates-still-sinking-no-new-normal-yet

Shipping giant Maersk: ‘Significantly less demand’ but ‘no hard landing’

photo of a container ship operated by Maersk

It’s getting increasingly ugly for shipping lines in the trans-Pacific market. Spot rates are sliding relentlessly with each passing week. Liners are starting to suspend entire service strings: Maersk just dropped two trans-Pacific services, MSC and Matson canceled one each.

Is Maersk CEO Soren Skou — whose company operates the world’s second largest liner company — getting worried yet?

He doesn’t sound worried, at least, not about Maersk itself.

Skou addressed questions on current market...

https://www.freightwaves.com/news/shipping-giant-maersk-significantly-less-demand-but-no-hard-landing

La caída de los precios al contado de los contenedores es “mucho más pronunciada” y “menos ordenada” de lo esperado 

photo of containers

Los ejecutivos de las navieras predijeron una caída continuada de los fletes al contado durante sus últimas convocatorias trimestrales, al tiempo que ofrecían garantías tranquilizadoras a los inversores de que la caída sería gradual. El director financiero de Maersk, Patrick Jany, dijo que sería una “erosión progresiva”, no “una caída de un día”. El director general de Matson, Matt Cox, subrayó que las tarifas se estaban “ajustando lentamente” en un “mercado ordenado” y no “cayendo por un...

https://www.freightwaves.com/news/la-caida-de-los-precios-al-contado-de-los-contenedores-es-mucho-mas-pronunciada-y-menos-ordenada-de-lo-esperado

Fall in container spot rates ‘much steeper,’ ‘less orderly’ than expected

photo of containers

Shipping liner executives predicted a continued drop in spot rates during their latest quarterly calls, while offering soothing assurances to investors that the fall would be gradual. Maersk CFO Patrick Jany said it would be a “progressive erosion,” not “a one-day drop.” Matson CEO Matt Cox emphasized rates were “adjusting slowly” in an “orderly marketplace” and not “falling off a cliff.”

The decline may indeed be fairly steady, as opposed to the sudden, violent swings seen in bulk commodity...

https://www.freightwaves.com/news/container-spot-rate-fall-much-steeper-and-less-orderly-than-expected

OOIL clearly has great results but forecast cloudy

Orient Overseas (International) Limited (OOIL) said it scored the highest first-half revenue in its history but is unsure if it can maintain the record-breaking ways. 

The Hong Kong-headquartered ocean carrier announced a profit attributable to equity holders of $5.66 billion for the six-month period that ended June 30, compared to a profit of $2.8 billion for the same period in 2021.  

“The outstanding performance of the group was driven by the continuing extraordinary conditions prevailing in...

https://www.freightwaves.com/news/ooil-clearly-has-great-results-but-forecast-cloudy

Trans-Pacific rates still sinking. Trans-Atlantic rates still peaking

a photo of a container shipping port in Bremerhaven

It’s a tale of two oceans: The price to ship containers of cargo from Asia to the U.S. across the Pacific continues to recede from record levels. In contrast, the price to ship containers across the Atlantic from Europe has risen through 2022 and is still hovering near all-time highs.

Vessel backups remain historically severe off Savannah, Georgia, New York/New Jersey and Houston, whereas conditions have dramatically improved off Los Angeles/Long Beach. Reduced congestion is a negative for spot...

https://www.freightwaves.com/news/trans-pacific-rates-still-sinking-trans-atlantic-rates-still-peaking

Turning point? Port of LA boss sees imports ‘easing’ lower in August

photo of container port of Los Angeles

Los Angeles, America’s largest container port, saw no letup in imports in July. But the numbers could finally start to pull back this month, according to Gene Seroka, executive director of the Port of Los Angeles.

Seroka reported Wednesday that Los Angeles handled 935,345 twenty-foot equivalent units last month, making it the port’s best July on record. Volumes were up 5% year on year.

Imports totaled 485,472 TEUs, up 3% year on year and up 9% compared to June.

(Chart: American Shipper based on...

https://www.freightwaves.com/news/turning-point-port-of-la-boss-sees-imports-easing-lower-in-august

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