China United Lines (CUL) has served notice on 28 November 2022 for the early termination of its Long Term Cooperation Agreement with Antong Holdings that involves the charter of 12 panamax ships of 4,132 teu to 4,713 teu to CU Lines for $52,000 per day and the lease of Antong containers by CU Lines for operations on the Asia-Europe and Transpacific routes under a profit sharing arrangement. The agreement was effective from 1 June 2022 and was supposed to expire in 34 months or on 1 April 2025.
The main carriers’ average EBIT margins fell by 3.4% from the 2Q peak of 54.3% to 50.9%. However, the gap between individual carriers are widening, with some notable drops at Wan Hai (down 13.0%), OOCL (down 8.3%), HMM (down 6.8%) and Yang Ming (down 6.1%). Carriers with a larger share on the Asia-US West Coast have suffered the largest margin erosion, with a sharper drop expected in 4Q 2022 as the rate malaise has spread to other tradelanes.
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202247] Freight rates continue to spiral downwards with FE-Europe, FE-Middle East and FE-Australia rates suffering the sharpest falls last week, amidst volume weakness across all tradelanes. Carriers are pushing for a new round of General Rate Increases (GRI) in December but they are unlikely to succeed if surplus capacity are not removed. Contract rates for the new 2023 season appear certain to fall by as much as 80% as the
Regional Container Lines (RCL) has revised its RCL Singapore-South Philippines 6 (RSP6) service with new calls at Zamboanga and Bintulu in East Malaysia. The revised service will connect Cebu, Cagayan de Oro, Zamboanga, Bintulu, Singapore, Cebu starting from 9 November 2022 with the 1,018 teu DANU BHUM on a 14-16 day frequency. RCL started its business in the Philippines in 1988, at the Port of Manila and was the first common feeder vessel to serve the port of Cebu and Davao in the early 90s.
Arctic Container Line has added a second feeder service with the launch of the Germany-Norway service on 13 November 2022 with the 712 teu RS MISTRAL. The new service calls at Bremerhaven, Hamburg and the Norwegian ports of Egersund, Tananger, Haugesund, Bergen, Florø, Ålesund and Orkanger. Arctic Container Line was established in March 2022 as a subsidiary of the Myklebusthaug Group of Norway to operate container feeder services between Europe and Scandinavia. It launched its first service on
On 25 Nov, CMA CGM reported 3Q earnings which was down 7% QoQ driven by 3% QoQ lower freight rates and 9% QoQ higher OPEX. Main delta for OPEX increase are fuel and chartering expenses. CMA CGM’s group level profit margin is lower than that of the liner industry average, being affected by the less profitable logistics businesses. However, CMA CGM enjoys relatively better capital efficiency on less idle cash on its balance sheet, which helps CMA CGM deliver a Return on Equity ratio on par with
SeaLead Shipping has upgraded its Far East to Middle East (FAM) with the addition of new port calls at Dammam and Hamad. The updated FAM service will call at Qingdao, Xingang, Shanghai, Ningbo, Nansha, Jebel Ali, Dammam, Hamad, Qingdao starting with the call by the 6,966 teu TIMON at Dammam on 15 November 2022 and Hamad on 16 November 2022. The service is currently operated with 5 ships of 4,500-6,900 teu.
The 3 AD Ports shipping companies - Safeen Feeders, Transmar and Global Feeder Shippping (GFS) - will launch a new service connecting Karachi, Abu Dhabi, Jebel Ali, Dammam, Jeddah, Aqaba, Sokhna, Adabiya, Port Sudan, Djibouti. The service is scheduled to start in December 2022, with further details still to be advised.
ZIM has slashed its 4Q 2022 EBIT earnings forecast to $440m from $740m, compared to $1,554m in 3Q 2022 due to falling freight rates and weaker liftings. Although ZIM has emphasized its commercial and operational agility, this will be tested over the next 2 years as it takes delivery of more than 50 newbuildings and committed vessel charters that will raise its operated capacity by some 70% (before charter redeliveries). Zim’s heavy reliance on chartered tonnage since its financial restructurin
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202246] Freight rates slipped further last week with weakening demand continuing to pull down capacity utilisation on the Transpacific and Asia-North Europe routes. Rate pressure has shifted to the Asia-Europe trades with carriers still unwilling to remove any capacity on the route as the the temporary blank sailings in October have mostly resumed their regular sailings. The FE-USEC routes are also under pressure, forcing Zi