Transpacific freight rates are eroding rapidly, with carriers slashing rates on both the West Coast and East Coast by as much as $500 below the current SCFI assessments. There is little hope of a rate rebound over the October holidays in China despite the increase in the number of blank sailings that will mostly hit Asia last port departures on week 41, with up to 40% of the weekly capacity removed. The lack of permanent capacity cuts will continue to put pressure on transpacific rates. Rates
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202338] Container market sentiment continues to deteriorate, with freight rates still slipping with little prospects for a rate rebound in October despite carriers’ efforts to contain capacity availability through blanked sailings. The planned capacity cuts over the Golden Week holidays in October are still smaller than the capacity removed during the Lunar New Year holidays in February this year, and are insufficient to ste
Taiwanese liners’ August revenue in NTD moved up 6% MoM, but revenue in USD moved up less at 4% MoM. In either currency, the rebound is better than CCFI on likely sequential volume growth. Since hitting the bottom in February, these liners’ monthly revenue has rebounded between 3%-27% with EMC leading due to its ongoing consolidation of the unlisted ship owning entities highlighted by the acquisition of the privately owned Evergreen Marine (Singapore) (EMS) for $780m on 19 June 2023, in a landm
ONE, Namsung, TS Lines and SITC are joining hands to launch a new Korea China Indonesia (KCI) service calling at Busan, Qingdao, Shanghai, Ningbo, Jakarta, Surabaya, Shekou, Xiamen, Busan from 10 October 2023. The KCI service will turn in 28 days using 4 ships of 2,400-3,000 teu. Each of the 4 partners will provide 1 ship each on the service, starting with the 2,954 teu TS MUNDRA at Busan on 10 October, to be followed by the 2,433 teu SITC MINGCHENG, 2,741 teu LORRAINE and 2,556 teu STARSHIP N
CoFIF closed last week (15 Sep) down 1-3% in price and down 47% in trading volume. Daily turnover dropped below $1bn for the first time since CoFIF launch on 18 Aug. Open interests, the balance of CoFIF that traders hold overnight, was up 9% WoW. The influx of liquidity on 5 Sep turned out to be due to one trader’s irregular position building that has been stopped by the exchange as per a notice published in INE’s Chinese website after market close on 5 Sep. To raise barrier for irregular tradi
Zim and Gold Star Line (GSL) have changed the GSL Kolkata-Chittagong Express Shuttle (GKC) service to a Port Klang-Kolkata shuttle service but has retained the GKC service name. The new GKC is jointly operated with RCL which brands the service as the RCL Malaysia-Kolkata Service (RCH8). The GKC/RCH8 service will call Port Klang (Westports), Kolkata, Port Klang and turns in 2-3 weeks with up to 3 ships of 1,000-1,200 teu deployed, with the new deployment started in September 2023.
Zim has withdrawn its Zim Med ISC (ZMI) service from September 2023, with the last sailing departing from Haifa on 2 September 2023. The ZMI service called at Haifa, Aliaga, Valencia, Felixstowe, Rotterdam, Hamburg, Antwerp, Le Havre, Ashdod, Limassol,Haifa,Colombo,Nhava Sheva, Mundra, Haifa turning in 5 weeks with 5 ships of 3,500-6,800 teu operated independently by Zim. Zim will replace the ZMI with slots on 3 MSC services covering 3 separate corridors that were previously served by the ZMI:
Several carriers have announced their participation in the new X-Press Feeders North China-India West Coast X-Press (NWX) service that is operated jointly with Maersk, which brands it as the FI3 (Far East-India 3) that will start from October 2023. ONE, ESL and Sinokor have all announced their participation in the service, branding it respectively by ONE as Northeast Asia to Pakistan and India (NPI), ESL as Far East West India (FWI) and Sinokor as the North China-India West Coast Express (NWX).
The erosion in charter rates continue, with further drops expected as the market slips into the traditional cargo slack season in October. Capacity utilisation on all key routes are trending lower and this could kill carriers appetite for further tonnage. SeaLead has chartered its largest ship taking over the 10,114 teu EXPRESS BERLIN from Danaos. COSCO has also received last week the first 7,092 teu newbuilding that it has chartered for 3 years from X-Press Feeders. Russian operators continue
The 1 September rate gains on the transpacific have all but evaporated, with rates to the US East Coast falling sharply with the SCFI assessment registered a 8.4% drop last week. Capacity utilization has dropped on the East Coast with average capacity deployed in September reaching a record high of almost 250,000 teu per week or 12.5% higher compared to August. In contrast, average capacity to the West Coast is 7.4% lower in September, which has only partially stemmed the rate fall. Rates to