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MarketPulse

Market Pulse – 2023 Week 48

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202348] Carriers are making a last ditch attempt to raise freight rates ahead of the 2024 contract season, as carriers announced rate hikes on 1 December and 15 December 2023 with some initial success on the FE-Europe routes. However, the composite SCFI index continued to slip last week and all of the gains from the last 4 weeks have been erased with carriers making little efforts to curb capacity growth. The heightened ten

Services

MSC adds Torogoz Feeder service

MSC has launched a new Torogoz Feeder service connecting Balboa, Acajutla, Puerto Quetzal, Balboa using the 1,878 teu MSC DIAMOND II. The service has been in operation since July 2023, and operates on a 2-3 week rotation on an irregular frequency.

Services

MSC revise Santana service rotation

MSC will revise the port rotation of the Far East-US East Coast Santana service from 2 December 2023 to call at Yantian, Ningbo, Shanghai, Qingdao, Busan, Manzanillo, Cristobal, Caucedo, New York, Yantian. The revised service will turn in 11 weeks on a 77 day rotation and will deploy up to 11 neo-panamax ships of 13,000-15,000 teu. The new rotation will omit previous calls at Laem Chabang, Cai Mep and Norfolk while adding a new call at Yantian.

Services

COSCO/OOCL launch UAE-India Sub-Continent Gulf 2 (UIG2) service

COSCO and OOCL have introduced a new UAE-India Sub-Continent Gulf 2 (UIG2) service calling at Nhava Sheva, Hazira, Mundra, Abu Dhabi, Jebel Ali, Sharjah, Khalifa bin Salman, Abu Dhabi, Sohar, Nhava Sheva from 22 November 2023. The service replaces the current Asia Gulf India 2 (AGI2) service that calls at Singapore, Mundra, Jebel Ali, Abu Dhabi, Hamad, Khalifa bin Salman, Abu Dhabi, Singapore. The UIG2 turns in 21 days using 3 ships - the 2,174 teu ADVANCE and SPRINTER, together with the 1,7

Services

Panama Venezuela X-Press (PVX) launched

X-Press Feeders has launched a new Panama Venezuela X-Press (PVX) service connecting Manzanillo (Pan), Cartagena, La Guaira, Puerto Cabello, Manzanillo (Pan) from 15 November 2023 with the 2,526 teu CALLIOPE. The service turns in 14 days with a fortnightly frequency initially using 1 ship.

Ports

Early Data Suggested Decent Throughput Growth Globally in Sep

Global container throughput increased by 5.4% in September, based on flash estimates from Linerlytica’s global ports survey. It is the strongest monthly growth rate achieved so far in 2023, although this is tempered by the low base in September 2022 when container volumes first showed signs of weakness after the frenetic growth in the previous 2 years. The strong September growth rate raised  the 3rd quarter throughput growth to 1.9% - the first positive quarter this year. YTD volumes remain n

Port Congestion

Global Port Congestion Watch: Rising

Total vessel capacity waiting at ports increased to 1.94m teu or 6.5% of the fleet at the end of last week, with a growing number of ships waiting at Chinese ports. While port operations at Chinese ports remain normal, the rising number of ships waiting was due to scheduled delays for vessels phasing in/phasing out as well as ships entering and leaving drydock in China. The congestion situation in South Africa has continued to deteriorate with delays extended up to 10 days. Total capacity waiti

Companies

Hapag-Lloyd 3Q

Hapag Lloyd’s earnings during 3Q fell back to the pre-2020 level. Yet. Hapag Lloyd still lead the liner peers on EBIT margin and Return on Equity (RoE).  Hapag-Lloyd has been consistently generating better EBIT margin than the other top 5 liners, save for COSCO, which are on a different set of accounting policies. The better RoE is attributable to both higher EBIT margin and better capital efficiency. Hapag-Lloyd has been cutting its fuel costs by both higher fuel efficiency and scrubber fittin

Companies

Taiwanese Liner 3Q results

Taiwanese carriers reported 3Q 2023 financial results last week with their earnings decline accelerating in spite of the volume recovery. Aggregating the liners’ top line breakdown, volume was up 4% QoQ and 2% YoY while unit revenue was down 11% QoQ and 58% YoY. Interest and liquid investment income have become a significant addition to the carriers’ bottom lines as their cash balances are now comparable to the fixed assets on their balance sheets. Several off the charts data in EMC’s 3Q result

Companies

Zim’s $2bn impairment will not be enough to lift its 4Q performance

Zim recorded a net loss of $2,270m in the 3rd quarter, due mainly to a non-cash asset impairment write down of $2,063m. Adjusted EBIT losses excluding the non-cash items stood at -$213m for an EBIT margin of -16.7% which places Zim at the bottom of the carrier EBIT margin rankings for the 2nd consecutive quarter. Zim will receive a boost to its earnings of over $150m per quarter as a result of the impairment charge due to lower depreciation expenses going forward but it will not be enough to l

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