The outcome of the US presidential elections will drive further instability in the container markets, with US imports poised to rise ahead of the potential imposition of new tariffs. Based on data collected since 2018, the cargo front loading could raise US container imports by as much as 10% to 15% in the next 3 months. Although this will drive up freight rates in the short term, the longer term impact of any trade war on global container volumes will be negative even though US import tariffs i
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202446] The outcome of the US presidential elections will drive further instability in the container markets, with US imports poised to rise ahead of the potential imposition of new tariffs. Based on data collected since 2018, the cargo front loading could raise US container imports by as much as 10% to 15% in the next 3 months. Although this will drive up freight rates in the short term, the longer term impact of any trade
This morning, many container freight futures contracts dropped to their daily limit. The EC market is circulating a story about MSC reducing freight rates to $3,800 per FEU. The author has not yet been able to validate this claim. However, the fact that MSC and Maersk are still not quoting over $5,000 per FEU for shipments after mid-November may have triggered a reaction from EC traders. The sell-off this morning is still concentrated on longer-dated contracts, reflecting a belief in the EC mark
TS Lines received a lukewarm response to its Hong Kong stock listing, with its shares trading below its issue price of HK$4.18 on its first trading day to close at HK$4.10 on 1 November 2024 before rebounding by 5.12% to HK$4.31 on 4 Nov. TSL shares currently trade at a 43% discount to its adjusted book value, compared to the average discount of 15% for its main publicly listed peers (excluding SITC that currently trades a 367% premium to book value). The addition of TS Lines brings the number
The aggregate revenue of the three Taiwanese liners are back to level just 6% below the monthly revenue recorded for June, when their revenue started to take off. The 10% MoM drop is less than the CCFI's 20% MoM fall.
The freight futures market continues to follow a pattern similar to yesterday, with near-term contracts being bought and longer-dated ones sold. One point we overlooked yesterday is that Hapag Lloyd began quoting $7,000/FEU rates online. However, most liners kept their online quotations unchanged over the past two days. Utilization improved slightly overnight, as the CMA CGM ZHENG HE, which departed yesterday, registered nearly 100% utilization. Far East - North Europe Head Haul
The EC market is in "Trump trade mode" this morning, with near-term contracts rallying while longer-dated contracts have dropped. This movement is based on the expectation that Trump's tariffs on Chinese goods will lead to an increase in shipments before the tariffs are implemented, followed by a decrease in shipment volume afterward. However, the author believes that the impact of the tariffs is weaker than the organic growth in U.S. consumption, which is a key demand factor for container shipp
EC2502, the main contract of EC, rose 10% yesterday (November 5) on strong volume and maintained this gain through the morning session today, despite increasing concerns about the impact of the Trump administration on Chinese exports. Since our last daily update on November 1, COSCO and Evergreen have also raised their quotations for Asia-North Europe shipments to over $5,000/FEU. However, utilization has been declining since November 1. Far East - North Europe Head Haul
SeaLead has launched a new Djibouti-Red Sea-Asia Express (DRAX) service connecting Shanghai, Ningbo, Nansha, Cai Mep, Port Klang, Colombo, Djibouti, Cai Mep, Shanghai from 7 November 2024. The DRAX service will turn in 7 weeks and will deploy initially 3 ships of 3,400-4,600 teu starting with the 3,451 teu LIDIA at Shanghai on 7 November 2024 followed by the 4,636 teu ZHONG GU XI AN and ZHONG GU YIN CHUAN that will join on 23 November abd 24 November respectively. Port rotation of the new DRAX
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202445] Carriers have pushed ahead with the 1 November rate hikes with smaller increases than initially planned but they have at least reversed the continuous declines since July that has seen the SCFI and CCFI shed 45% and 37% of their values. Carriers will struggle to retain the rate hikes with cargo demand still weak in the seasonally weak November period in the absence of more capacity cuts. Although capacity utilisation