The SCFIS finally caught up with the recent spot rate hikes, rising by 11.8% on 14 November after 2 weeks of lackluster gains, reflecting the backward looking nature of the index that captures actual settled rates. The cumulative gain of 14.6% logged by the SCFIS in the last 4 weeks has lagged behind the SCFI’s 30.3% rise in the same period. However, the positive rate momentum is shifting with MSC slashing their rates to $3,700-3,800 per feu until the end of November, undercutting rivals’ rates
Charter rates continue to firm across all size segments, with the lack of supply of fresh tonnage pushing charterers to commit to not just higher rates but also forward deliveries into 2025. All of the laycans registered in the past week was in the smaller size segments of 2,800 teu and below, with the lack of tonnage in the larger sizes continuing to limit the number of transactions recorded. Interest from Russia related carriers remain firm with Uniglobal and OVP taking on smaller feeder ship
Global port congestion remains elevated through the past week with poor weather continuing to affect port operations in South China, with the escalation of the industrial action at Canadian ports has also worsened the congestion situation in North America. The port strike in Canada has halted operations at Vancouver and Prince Rupert, with the British Columbia Maritime Employers Association (BCMEA) locking out the dockworkers since 4 November. Although some of the affected ships are starting to
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