Total 160 Posts
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202403] With the stakes raised amidst heightened risks of retaliatory Houthi attacks on ships in the Red Sea, carriers continue to take radically different approaches to their Suez services. CMA CGM and a handful of niche carriers continue to make Suez transits while all of the other main carriers have shifted to the Cape route. The capacity shortage arising from the Cape diversions on the Asia-Europe route will require an a
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202401] With no clear timeline for the resolution of the Red Sea crisis, carriers have extended their diversions to the Cape route with the number of containerships re-routed rising to 354 units for 4.65m teu or 16.4% of the fleet as at 7 January 2024. These diversions will result in an expected capacity shortfall of up to 40% for departures from Asia to Europe and the US East Coast in weeks 4 to 6, with freight rates expe
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202401] The Red Sea crisis dominated another frenzied week for the container shipping market with the SCFI rising by 40% - only the 4th time since 2009 that spot freight rates jumped by more than 40% in a single week. All long haul routes recorded strong rate gains led by the Asia-Europe trades, with the elevated rates expected to hold through January and February as capacity will remain tight in the next 6 weeks. 12% of glo
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202352] The SCFI surged by 14.8% on the back of the Red Sea turmoil to hit a 13 month high, with a looming capacity crisis set to erupt over the coming weeks as ships that were supposed to return to Asia from Europe and the US East Coast via the Suez are delayed by 2 to 3 weeks. This will coincide with the high cargo demand expected in the run up to Chinese New Year, with freight rates expected to remain elevated through mid
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202351] Several carriers have paused Red Sea transits over the last 4 days but diversions to the Cape route are limited to Israel-linked ships at the moment. Barring a naval convoy solution, carriers could be forced to divert all ships to the Cape route which would raise teu-mile demand by at least 2.5m teu or 9% of the global fleet that would result in an immediate capacity shortage. Spot freight rates have started to rise
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202350] The SCFI climbed for the second successive week led by strong rate gains on the Asia-Europe route that are likely to hold through December on stronger capacity utilisation backed by the traditional year end cargo demand. Transpacific rates are on weaker ground with the disruptions on the Panama Canal failing to keep rates steady to the East Coast. THE Alliance carriers are paying a heavy price after failing to secure
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202349] The turmoil at both ends of the Suez and Panama passage have forced containerships to divert from their regular routes, as ships linked to Israeli interests are avoiding the Red Sea passage through the Suez Canal even as some of te neo-panamax ships on the Far East-US East routes are shifting to the Suez route to avoid the congested Panama Canal. While these moves will help to absorb some of the surplus ships, the im
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
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202347] The global containership fleet has passed 28m teu last week, with total new ship deliveries since the start of this year reaching 1.94m teu. More than 1 new ship has been delivered each day since June this year, with the same pace to continue through the next 12 months. Carriers are facing a difficult time maintaining recent freight rate gains in the face of the capacity influx, with vessel scrapping and idling remai
Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202346] The reversal of the freight rate hikes in early November has intensified with carriers slashing rates mid-month as new capacity continues to move back into the market. In particular, the capacity additions on the US West Coast by Zim and CMA CGM are set to undermine the capacity cuts made earlier by THE Alliance, with transpacific rates coming under the most pressure last week and further rate weakness is expected in