Port congestion is no longer providing any supply side support as congestion is easing across Asia and North America. Congestion at the main Eastern China ports of Shanghai and Ningbo, as well as in Bohai and South Korea dropped to half of their previous week’s highs, as the backlog of ships delayed by the North Asia typhoons of the past 2 weeks were gradually cleared up. The reduction in congestion in North Asia ports has brought down global congestion levels to 10.9% at the end of last week,
French carrier Marfret will launch a new Egypt-Italy Express service that connects Genoa, Salerno, Alexandria, Genoa. The new service will deploy the 390 teu LYDIA that has just rejoined Marfret at the end of August 2022 and is currently deployed on the FluvioFeeder/Lydia Feeder service running between Le Havre and Rouen. The new service is scheduled to start from Genoa in mid October 2022 and is targetted at the reefer fruit exports from Egypt, with Marfret positioning 200 new reefer container
Containerships, the intra-Europe subsidiary of CMA CGM, has revised the rotation of 2 existing services that connects that UK and Ireland with the North Continent. The DUKE service will cover Germany and the UK East Coast as part of the revised BALT1 CS service, calling at Helsinki, Talinn, Hamburg, Rotterdam, Teesport, Rotterdam, Helsinki with the 850 teu CONTAINERSHIPS VIII and the 966 teu CONTAINERSHIPS VI. It replaces the previous BALT1 service that called at Helsinki, Talinkk, Klaipeda,
Bangladeshi port operator Saif Powertec will enter the container shipping markets for the first time in November 2022. It has signed a 15 year charter agreement with AD Ports' Safeen Feeders for 3 containerships of 1,700-2,100 teu that would be deployed on services calling directly at Bangladesh. Safeen will invest $102m to acquire the ships, with the first ship scheduled to join in November. Saif Powertec operates the Chittagong Container Terminal (CCT) and New Mooring Container Terminal (NC
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202238] The liner market continues to weaken with the outlook remaining weak until the end of this year. The SCFI took another 10% beating last week but further rate drops are expected as market rates are dropping faster than the indices can track them, with a similar situation developing on the charter market as containership charter rates are also dropping rapidly as demand wanes ahead of the traditional slack season start
Unifeeder has introduced a new service linking Lithuania and UK from 10 September 2022. The service calls at Klaipeda, Gdynia, Immingham, Rotterdam, Gdansk, Klaipeda on a 11-13 day turnaround using the 1,025 teu ELBSPRING and the 1,036 teu ELBWAVE.
Hapag Lloyd is launching a Colombo Chittagong Feeder (CCF) starting from 30 September 2022 with 1,740 teu HANSA RENDSBURG at Chittagong. The service will run on 14-days rotation on fortnightly basis. HANSA RENDSBURG was initially deployed in East Med trade after joining Hapag Lloyd in early August.
As the container liner sector is entering an earning downcycle, OPEX analysis should be back in focus for the stakeholders. While the average freight rates over 6-month has been tripled since 19H1, OPEX has also quietly moved up by 52%. Hence the 60% EBIT margin reported in 22H1. If the average freight rates fall by 60%, the industry will reach the break even level holding all else constant. Some of the OPEX items may not be correlated with the freight rates or at least not moving in synchroniz
WHL and YMM also reported their August revenue last week, after EMC. WHL's August revenue fell 20% YoY, 12% MoM and 40% from its peak in Jan 2022. YMM's August revenue also fell both YoY and MoM. If the same MoM pace continues for Sep, the three Taiwanese liners will likely report 9% M0M lower top line and hence 7% QoQ lower top line for for 3Q 2022. Liner industry reported about 58% EBIT margin and 50% net profit margin during 2Q 2022. So on the ballpark, every 1% drop in top line would mean
Charter rates recorded sharp falls last week, with the negative sentiment in the freight markets finally filtering through to the charter market. With freight rates rapidly collapsing across all tradelanes, charter rates are belatedly catching up with further rate falls to follow given the rising number of vessels available spot and on a prompt basis. Shorter period charters of up to 6 months are no longer commanding any premiums over 12 month rates, while the gap on 24 month rates are also na