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Services

ONE withdraws from Indamex

ONE will withdraw from the 2 India-North America Indamex services that is marketed as the India-East Coast Express (IEX) and India-East Coast Express 2 (IE2). Its last westbound sailings will be at Port Qasim on 24 May 2024 on IEX and 20 May 2024 on the IEX2. ONE will withdraw the 10,010 teu SEAPSAN BEACON from the IEX on 13 July 2024 that operates alongside 9 other ships operated by the Indamex partners CMA CGM, COSCO and Hapag-Lloyd that calls at Port Qasim, Nhava Sheva, Mundra, New York, Nor

Companies

Hapag-Lloyd 1Q 2024 Results

EBIT turned around in 1Q 2024 from 4Q 2023 losses on sequentially higher freight rates. Management lifted lower end of the EBIT guidance from negative $1bn to breakeven while keeping the upper end of the guidance unchanged at $1bn.

Companies

CMA CGM 1Q 2024 Results

EBIT turned around in 1Q 2024 from 4Q 2023 losses on sequentially higher freight rates and lower unit costs. Management outlook statement: "Uncertainties in the macro-economic and geopolitical environment could continue to cause fluctuations in the transport and logistics market, and weigh on its fluidity and seasonality. In addition, the commissioning of newbuild deliveries are expected to continue in excess of forecast demand, ultimately affecting the supply-demand equilibrium and, by exte

Companies

Liners' Caution Amid Turned Around Results Contrasts to Surging Spot Rates

Carriers earnings turned around from the losses in 4Q 2023 but EBIT earnings are still down YoY except for the carriers with higher spot and long-haul exposure. Aggregate average EBIT margin reached 8% with Asian carriers outperforming their European counterparts, apart from the Intra-Asia focused Wan Hai and contract heavy ONE which posted below-average results. Zim is the last carrier to publish its 1Q results which is due on 21 May 2024. Aggregated results for 9 carriers : CMA CGM, COSCO, E

Port Congestion

Port Congestion Up In Middle East and Southeast Asia

Port congestion at the main Southeast Asia and Middle East Gulf hub ports have reached new record highs in May, surpassing the previous highs during the 2021-2022 COVID pandemic. The worsening congestion is driven by the sudden surge in cargo demand as well as continued disruptions caused by the diversion of ships from the Red Sea with Singapore and Jebel Ali the most badly hit. Berthing delays of up to 5-6 days have been recorded at the 2 key ports, resulting in disruptions to vessel schedules

Markets

Volatile week with main contracts up

The CoFIF container freight index futures traded at a new hight in volatile trading last week. Initial concern that CMA CGM’s resumption of Suez transits on one of its Asia-Med strings (see page 20 Weekly News Briefs) could trigger a response by its rivals proved to be unfounded, while the Shanghai Futures Exchange’s action to enforce the position restrictions to ring-fence speculative activities did little to dampen trading volumes as average daily turnover reached $3.5bn. Open interests are do

MarketPulse

Market Pulse 2024 Week 21

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202421] The caution that carriers have shown in their earnings forecasts for the 2024 financial year stands in sharp contrast to the surging spot freight rates with the SCFI hitting a fresh 2 year high. Bullish Chinese freight futures are predicting further rate gains in the coming 4 months, with a correction only expected in the 4th quarter of the year. The bullish sentiment has also pushed charter rates to fresh 2-year hi

MSC

MSC launch North Peru Feeder service

MSC will launch a new North Peru Feeder connecting Balboa, Buenaventura, Paita, Salaverry, Balboa from 6 June 2024 with the 2,572 teu MSC MONTSERRAT III. The service will turn in 2 weeks, with a second ship to be introduced. MSC North Peru feeder service

Effective capacity increase is far less than the additional capacity deployed

Effective capacity to North Europe based on actual vessel departures from Asia has decreased by 5.1% compared to a year ago due to the longer route taken by the majority of vessels via the Cape of Good Hope despite the deployment of 17.8% more vessel capacity on the Asia-North Europe route. In contrast, effective capacity on the Asia-Med route is up 10.5% despite the Cape diversions as total capacity deployed on this route has jumped by 49.1% compared to a year ago. Contrary to Maersk’s claims

Services

CMA CGM resumes Suez transits for Asia-Med Phoenician Express (BEX2) service

CMA CGM has resumed full Suez Canal transits on the Asia-Med Phoenician Express (BEX2) service from the end of April 2024, becoming the first mainstream Asia-Europe service to return to the Suez since the Red Sea crisis escalated in December 2023. The service is one of 4 OCEAN Alliance services on the Asia-Med route and is marketed as the PHOEX/BEX2 by CMA CGM, AEM6 by COSCO, AAS by OOCL and BEX2 by Evergreen. The service was previously operated with a mixed fleet of ships from the 3 OCEAN Alli

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