THREE IN ''ONE'': JAPANESE OCEAN NETWORK EXPRESS HAS STARTED OPERATING
On the 1st of April 2018, the container shipping business of Japanese liner shipping companies K Line, MOL and NYK has officially started to operate under Ocean Network Express (ONE) which is a major new global container shipping company.
SOFT ASIA-EUROPE SPOT RATES WILL HARDEN AS PEAK SEASON APPROACHES
There was evidence this week of continued softer Asia-North Europe freight rates just ahead of the peak season. Container spot rates on the route have been ticking down for a number of weeks, and yesterday CMA CGM published new FAK (freight all kinds) rates, valid from 1 August. At $1,150 per 20ft and $2,200 per 40ft are $100 per container lower than its current FAKs.
ULCVS TO ALMOST DOUBLE CAPACITY SHARE ON ASIA-NORTH EUROPE BY 2018
Additional phasing in of ultra-large container vessels (ULCV)– with a nominal capacity in excess of 18,000 TEU-on the Asia to North Europe trade lane could double their capacity share on the trade by next year, market intelligence provider in the container shipping industry SeaIntel says. There are 58 ultra-large vessels currently in operation, with 47 to be delivered – predominantly in 2017, and 2018.
COSCO ACQUISITION OF OOCL STILL FACES “A DEGREE OF UNCERTAINTY”
Cosco Shipping Holdings resumed trading on the Shanghai Stock Exchange (SSE) today, more than two months after its shares were suspended on the bourse. The move brings an end to speculation that Cosco had another carrier target on its radar, after it announced plans to scoop up OOIL’s OOCL earlier this month.
CONTAINER SPOT RATES ON THE RISE, FROM ASIA TO THE US, AND ASIA TO EUROPE
Container spot rates from Asia to the US, and Asia to Europe were given a lift this week ahead of August GRI and FAK increases. The increase was most notable on the transpacific where the Shanghai Containerized Freight Index (SCFI) components for the US west coast and the US east coast leapt 37.6% and 20.2% respectively, to $1,687 and $2,685 per 40ft.
CMA CGM WILL LAUNCH NEW SERVICE LINKING BLACK SEA TO MOROCCO AND ALGERIA
Container carrier CMA CGM will launch a new direct service later this month linking the Black Sea to Algeria and Morocco, in line with the carrier’s strategy of developing short sea lines in the Mediterranean and Black Sea.
CMA CGM ULCV ORDER COULD SEND RIPPLES ACROSS TRADELANES AS RATES STRENGTHEN
CMA CGM’s potential order of up to nine 22,000 teu ultra-large container vessels (ULCVs) is sending a message to the liner industry that the freight rate war that led to the bankruptcy of Hanjin Shipping is far from over.
EU TRADE AGREEMENT CREATES HEALTHY TAILWIND FOR JAPAN'S ONE GROUP
It´s hard to imagine any better news for ONE, the new Japanese liner giant, than the new trade agreement that recently was signed between Japan and the EU. During times filled of rhetoric trade protectionism the two parties mustered an impressive agreement that could annually increase the EU export by 34% and Japan´s by 29%! Whilst of course impossible to gauge the ratio between services and products as well as modal split this is a much-welcomed sign of additional trade volume that certainly will manifest itself also in containers.
HONG KONG SECURES ITS SHIPPING HUB STATUS WITH NOD TO VESSEL-SHARING AGREEMENTS
The Hong Kong Competition Commission has issued a five-year block exemption order for liner shipping vessel-sharing agreements (VSAs). However, it declined to issue a similar exemption for vessel-discussion agreements (VDAs). The order, announced on Tuesday, follows two years of legal uncertainty for shipping lines after the city’s Competition Ordinance came into effect in 2015.
OOCL CELEBRATES ARRIVAL OF SISTER TO THE WORLD'S BIGGEST CONTAINERSHIP
Hong Kong-based container shipping company Orient Overseas Container Line (OOCL) christened today another 21,413 TEU boxship, the OOCL Germany, at Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea. The newbuilding is the second of the company’s six 21,000+ TEU class vessels on order at the shipyard.
MILAHA HAS ANNOUNCED THE LAUNCH OF THE FIRST DIRECT REEFER SERVICE BETWEEN QATAR AND TURKEY.
Over the past few weeks, Milaha had arranged two ad hoc voyages of reefer vessels from Turkey to Qatar; however, the company has moved to regularize the service, with departures every 20-25 days between Hamad Port and Port of Izmir, with a short transit time of 11 days.
CNTRACKING WAS AT THE 86TH IZMIR INTERNATIONAL FAIR
The 86th Izmir International Fair was held on August 18-27. The fair theme ,which made the closing on Sunday, August 27th, was the Innovation and Energy. While Muğla provience was choosen as honor guest, Russia became partner country of the fair.
CARRIERS PREPARE FOR THE SLACK SEASON BY BLANKING ASIA-EUROPE SAILINGS
The Ocean Alliance is to cancel four Asia-Europe voyages early next month – two North Europe loops and two Mediterranean loops – as the peak season ends. The lines concerned, OOCL, CMA CGM, Cosco and Evergreen, said the blanked sailings were in response to “expected weak demand” after the China National Day “Golden Week” holiday from 1-8 October. So far, the 2M and THE Alliance members have not announced similar moves, but it is anticipated that they will follow suite shortly. After what looks like being one of the best peak seasons for several years the carriers want to protect as much of of their rate gains as possible.
MAERSK CREDIT RATING DOWNGRADE THREATS ARE A RED HERRING, ARGUES FINANCIAL ANALYST
According to one research investor analyst a potential downgrading of A P Moller Maersk’s credit rating is an overreaction to a perceived worsening of container industry fundamentals. On 23 August Standard & Poor’s announced that it was placing its BBB rating of Maersk on CreditWatch negative following the Danish firm’s proposed $7.45bn sale of its oil and gas subsidiary to Total.
SECOND HAND CONTAINERSHIP SALES AT RECORD LEVEL
The volume of secondhand containership sales reported in the first eight months of 2017 totalled 0.75 million TEU, exceeding the previous annual record level of 0.64 million TEU set in 2015. According to Clarksons Research, a new monthly record was set in March 2017 which witnessed some 40% of the full year 2016 sales capacity total.
SHIPPING IN CHANGING CLIMATES
The shipping industry must cut greenhouse gas (GHG) emissions by at least 50% by 2050, according to a research effort ‘Shipping in Changing Climates’. Rising trade and demand means this will require substantial efficiency improvements in the average ship, which will have to reduce in carbon intensity some 60-90% by mid century, the research showed.
LATEST ULCV ORDERS THE START OF A SLIPPERY SLOPE TO NEW OVERCAPACITY GLUT?
Analysts have raised concerns over another bout of overcapacity, following the latest orders for ULCVs, by CMA CGM and MSC. These orders are on top of the expected delivery over the next two years of 21 ULCVs for Cosco and 11 for Evergreen.
THE SCFI RECORDED A FALL OF 4.6 PERCENT FOR ASIA- NORTH EUROPE SPOT RATES.
The Shanghai Containerized Freight Index (SCFI) slumped a further 5% this week to a composite rate of $735.91 per teu as spot rates surprisingly came under pressure ahead of the Chinese Golden Week holiday.
STORM WREAKS HAVOC IN PORT OF DURBAN - CONTAINER SHIP BLOCKED PORT
A large MSC containership to broke free from its moorings Tuesday at the port of Durban, South Africa as a powerful storm swept through the area, blowing the ship across the harbor before blocking the entrance to the port.
RUSSIA SETTING UP DIRECT SHIPPING LINE TO SYRIA
MOSCOW, Oct 10 (Reuters) – Russia is setting up a direct shipping line to Syria and wants its companies to help build an economic recovery in the war-torn Middle Eastern country, the TASS news agency quoted Russian Deputy Prime Minister Dmitry Rogozin as saying on Tuesday.
WORLD’S FIRST FLOATING WIND FARM OPENS UP OFF SCOTLAND
The first offshore wind farm to use floating wind turbines has started producing power for the Scottish energy grid in what could be the start of offshore wind’s push into deeper and more favorable waters for renewable energy production.
UNCTAD: CONSOLIDATION IN CONTAINER SHIPPING MAY LEAD TO OLIGOPOLY
Increased consolidation among carriers driven by a continued oversupply of vessels could bring some order to the market, however, the recent mergers and mega alliances may lead to oligopolistic structures, UNCTAD warned in its latest report on maritime transport.
MSC ORDERS 11 NEW 22,000-TEU VESSELS
The latest news that ocean carrier Mediterranean Shipping Co. (MSC) will sign contracts for as many as 11 newbuild ultra-large containerships comes on the heels of rival CMA CGM confirming an order for up to nine containerships of 22,000 TEUs.
ONE CARRIER IN PARTICULAR HAS ABSORBED HANJIN'S VESSELS
Collapsed South Korean carrier Hanjin controlled a fleet of 102 container vessels, which have since been absorbed by other carriers. One carrier in particular has taken over a third of Hanjin's former capacity, writes Alphaliner.
OIL TRADERS SET SIGHTS ON HIGH SEAS AS DIESEL RENAISSANCE IS BORN
It was only two years ago that the world’s biggest oil market was awash with diesel and profits from making the fuel cratered. Now the refined product is getting a new lease of life, and more demand is poised to emerge from the sea.