Transpacific Trade

2020 low sulphur regulations could be ‘the saviour’ of container shipping

The IMO’s 0.5% sulphur cap, to be imposed in January 2020, could be a “blessing in disguise” for shipping lines, should the regulatory fallout finally end the industry’s elusive search for supply and demand balance.
However, any benefits will not materialise without short-term pain, according to analysts speaking today at the Asia Logistics & Maritime Conference in Hong Kong.
“IMO 2020 could be very helpful in terms of supply,” said McKinsey & …

The post 2020 low sulphur regulations could be...

https://theloadstar.co.uk/2020-low-sulphur-regulations-saviour-container-shipping/

Spot rates hold steady as carriers take advantage of shipper rush to beat tariffs

OOCL has announced the cancellation of four Ocean Alliance headhaul transpacific sailings next month.
This suggests forward bookings are resuming normal seasonal demand patterns after the rush to beat 1 January import duty hikes.
Four Ocean Alliance loops will blank sailings in weeks 48, 49, 50 and 51, which OOCL said was “in response to the expected low demand during the upcoming Christmas and new year period”.
Until then, carriers are taking full advantage …

The post Spot rates hold steady as...

https://theloadstar.co.uk/spot-rates-hold-steady-carriers-take-advantage-shipper-rush-beat-tariffs/

Mixed fortunes for OOCL in Q3 as liftings and revenues rise, but so do costs

OOCL increased carryings by 6.9%, year on year, in the third quarter, to 1.7m teu, while improving turnover by 7%, to $1.56bn.
However, the carrier experienced sharply contrasting fortunes on its transpacific and Asia-Europe tradelanes.
The quarterly operational numbers from parent Orient Overseas International, now majority-owned by Cosco Shipping, are seen as an early guide to the performance of the carrier’s liner industry peers, which will report their third-quarter results in the coming...

https://theloadstar.co.uk/mixed-fortunes-oocl-q3-liftings-revenues-rise-costs/

Cancelled sailings prop up Asia-Europe spot rates, but demand looking uncertain

The Asia to North Europe component of the Shanghai Containerised Freight Index (SCFI) recorded a 4.7% uplift in spot rates this week to $761 per teu, underpinned by a raft of cancelled October headhaul sailings by carriers.
Compared with the same week last year, container spot rates on the route are approximately 2% higher, but the profitability of the container lines is being severely dented by a year-on-year 43% hike in bunker …

The post Cancelled sailings prop up Asia-Europe spot rates, but...

https://theloadstar.co.uk/cancelled-sailings-prop-asia-europe-spot-rates-demand-looking-uncertain/

CMA CGM gets transpacific bonus as shippers shun ONE after botched launch

Transpacific volumes handled by CMA CGM soared this year as shippers abandoned the major Japanese carriers after the botched Ocean Network Express (ONE) launch.
According to new research by Alphaliner, the Ocean Alliance carrier was the main beneficiary as volumes handled by ONE on the headhaul eastbound trade from Asia to North America plummeted.
Problems with the merged booking and documentation systems forced MOL, NYK and K Line customers to book with other …

The post CMA CGM gets...

https://theloadstar.co.uk/cma-cgm-gets-transpacific-bonus-shippers-shun-one-botched-launch/

Carrier efforts to stabilise Asia-Europe capacity keep spot rates steady

Carrier action to curtail capacity on the Asia-North Europe trade this month appears to have been a success, judging by this week’s Shanghai Containerised Freight Index (SCFI).
After several weeks of declining spot rates following China’s Golden Week holiday and this year’s peak shipping season, Asia-North Europe spot rates have held onto the stability seen last week.
The SCFI’s Shanghai-North Europe component showed a marginal decline of just $4, to finish the week …

The post Carrier efforts to...

https://theloadstar.co.uk/carrier-efforts-stabilise-asia-europe-capacity-keep-spot-rates-steady/

CMA CGM stake in Ceva ‘is no threat to the forwarders’

CMA CGM’s investment into Ceva Logistics is not a threat to forwarder-controlled ocean freight, according to Nicolas Sartini, CEO of subsidiary carrier APL.
Speaking prior to yesterday’s announcement that CMA had upped its stake in Ceva to 33%, Mr Sartini said the rationale of the investment was to provide integrated services to large shippers that want to do direct business with carriers.
“Some customers want to deal only with forwarders, some only carriers and …

The post CMA CGM stake in Ceva...

https://theloadstar.co.uk/cma-cgm-stake-ceva-move-towards-offering-premium-container-services/

End-of-year decisions for shippers

US-bound imports are on course for record high levels. Logistics Trends and Insights, citing Port Tracker, predicts that, between September and December, imports will grow 2.3% to 4.3% year on year. With ocean imports normally slowing after the September and October peaks, the 4% growth expected in December marks a significant upturn – especially considering the current tariff stand-off between China and the US. Port Tracker suggests this growth may be linked to the …

The post End-of-year...

https://theloadstar.co.uk/end-year-decisions-shippers/

Early AE2/Swan return would add to the pressure on Asia-Europe carriers

The Shanghai Containerized Freight Index (SCFI), published today after a break for the Chinese Golden Week holiday, reveals a sharp contrast in fortunes for the major carriers.
The decision by Asia-North Europe carriers to blank or suspend 11 headhaul voyages this month appears to have halted the slide in spot rates on the route, the SCFI component virtually unchanged at $731 per teu.
However, if the 2M Alliance reactivates its AE2/Swan loop earlier …

The post Early AE2/Swan return would add to...

https://theloadstar.co.uk/early-ae2swan-return-add-pressure-asia-europe-carriers/

China-US trade war brings box carriers a bonus – but 2019 looks less promising

The US-China trade war has seemed “positive” for transpacific shipping lines, so far, with importers rushing to beat tariff deadlines.
But there is growing concern that a prolonged dispute would leave shippers with question marks on whether to reorganise their supply chains.
APL chief executive Nicolas Sartini believes the industry should still achieve around 5% trade growth this year.
“So far it’s paradoxical, because the trade war has been rather positive for shipping companies,” he told...

https://theloadstar.co.uk/china-us-trade-war-brings-box-carriers-bonus-new-year-looks-less-promising/

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