(CCFI Commentary in Issue 34, 2011)
This week, the China's containerized transport market showed upward, with the composite freight index increased slightly. On August 19th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 990.97 points, up 0.8% from last week; while the Shanghai Containerized Freight Index came out at 1064.10 points, up 3.0% from last week.
In Europe service the cargo volume kept at the same level in last week and the slot utilization hovered around 90%. Cargo exports in Southern China showed specifically good and the freight rate maintained steady. On August 19th, the freight index of the Europe service was 1107.84 points, basically equaling to last week. The conventional peak season enhanced the cargo volume of Mediterranean service as some of the voyages ran out of slots, with the slot utilization averaged above 95%. Freight rate uplifted as well.
On August 19th, the freight index of the Mediterranean service was 1322.18 points, up 2.3% from last week.
In North America service, the cargo level was perceived stable in US west coast service as the slot utilization generally stayed at 85%. While in US east coast the demand for capacity apparently thrived, buoying up the slot utilization to above 95% with a lot of voyages reported laden. Insiders indicated an uncertainty of the effects of carriers' PSSs, with the biggest increase at USD 400/FEU, announced on August 15th due to the gloomy expectation of the market. So carriers were conservative about the restoration as well, pricing the average of the PSSs at USD 200/FEU ~ USD 300/FEU. On August 19th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to US west coast and US east services were USD 1769/FEU and USD 3343/FEU, respectively up 11.3% and 6.8% from last week.
In Australia and Singapore service, thanks to the approaching conventional peak season at August, the propelling cargo volume pushed the slot utilization up above 95%, with none slot available reported in lots of voyages. Several lines had imposed PSSs, around USD 150/TEU ~ USD 200/TEU, in the middle of the month. On August 19th, the freight index of the Australia and Singapore service was 931.77 points, up 0.6% from last week.
According to the pundits, new capacity added in next week would be very likely to break the current market balance and curb the booming trend of the freight rate.
In Persian Gulf service the ongoing Ramadan was still the main reason depressing the freight rate, where the slot utilization stood at 90%. On August 19th, the freight rate (including ocean freight and surcharges) of the voyages from Shanghai to base ports in Persian Gulf service was USD 937/TEU, down 1.7% from last week.
In South America service the cargo volume was witnessed steady. However, the fact for the freight restorations in previous weeks outpacing the corresponding cargo volume lowered the freight rate. On August 19th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in South America quoted USD 2120/TEU, down 1.3% from last week.
In Japan service the market hold still as the slot utilization revealed 75%, which slightly climbed up from last week. On August 19th, the freight index of the Japan service issued by SSE was 808.76 points, up 1.1% from last week.
viernes, 26 de agosto de 2011
lunes, 22 de agosto de 2011
Asia-US west coast rates lead the peak season surge with 11.3pc hike
FREIGHT rates on all major trades from China continued to climb last week with the biggest jump occurring on the US west coast route where rates increased 11.3 per cent from the previous week to US$1,769 per FEU, according to Shanghai Containerised Freight Index (SCFI) data.
UK-based shipbroker ACM Shipping reported that rate hike to the US west coast was nearly half the amount announced by the Transpacific Stabilisation Agreement for this year's peak season surcharge.
But the increases did not stop there as rates to the US east coast rose by 6.8 per cent week-to-week to $3,343 per FEU.
Following on from a solid 5.5 per cent increase the week before, Asia-Med rates rose again last week by 2.9 per cent to $1,049 per TEU, while Asia-Europe rates were up a marginal 0.5 per cent to $832 per TEU.
At their current low levels it looks as though it will be some time before rates get back to the breakeven level on the Asia-Europe trade, but the fact that rates are rising is positive, albeit by only a small amount, is still positive.
OOCL to raise Asia-Europe westbound rate US$275/TEU from September 1
HONG KONG's Orient Overseas Container Line (OOCL) is to raise its general rate for cargo for westbound traffic from Asia to Europe by US$275 per cent TEU from September 1, the company announced.
The freight rate will apply to shipments from Far East to the Middle East to North Europe, the Mediterranean and the Black Sea.
The increase is necessary to cover basic operating costs and provide a viable service level, said the company in a notice to trade
The freight rate will apply to shipments from Far East to the Middle East to North Europe, the Mediterranean and the Black Sea.
The increase is necessary to cover basic operating costs and provide a viable service level, said the company in a notice to trade
CCFI Commentary Issue 33, 2011
Weekly Report of China Export Container Transport Market(CCFI Commentary in Issue 33, 2011)
This week, the China’s containerized transport market maintained firm, with the composite index slightly increased. On August 12th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.52 points, up 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1033.24 points, up 1.4% from last week.
In Europe service this week, the cargo volume hiked steadily, buoying the slot utilization up to above 90% with some voyages running out of slots. The thriving market quotation stabilized the freight rate after its previous upturn, while in some voyages the price continued went up with the upward trajectory of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe service reported USD 828/TEU, up 0.6% from last week. In Mediterranean service, the ongoing conventional peak season stimulated the slot utilization to above 95%, with the freight rates over the west Mediterranean voyages climbed up to USD 1050/TEU. On August 12th, the freight rate (including ocean freight and surcharges) of the voyages to Mediterranean service was USD 1019/TEU, up 5.5% from last week.
In North America, a sharp differential turned up between the west- and east-bound services. In US west coast service the cargo remained sluggish and the slot utilization stood at about 85%. Freight rate kept dipping, while for some voyages the price had even fallen to USD 1300/FEU, which is near half of what it was a year earlier. On August 12th, the freight index of the US west coast service reported 903.59 points, down 1.7% from last week. The US east coast service was seen bullish, giving the limited capacity influx, sound supply-demand relation, and a 95% slot utilization, which in some cases it was 100%. On August 12th, the freight index of the US east coast service was 1191.18 points, basically equaling to last week. Thanks to the coming conventional peak season, carriers were poised to announce a USD 400/FEU peak season surcharge since August 15th. However, people were afraid of the plan’s implementation as the weak cargo volume and the excessive capacity could not be ignored. As a result, some were reported delaying the announcement to 22nd and cutting the price added.
However, whether the implementation will be fulfilled was conceived as an uncertainty by the market citing the weak cargo volume and the excessive capacity.
In Australia and Singapore service, the approaching conventional peak season left the cargo volume in a strong upward momentum, where the slot utilization hovering above 95% and more voyages were reported laden. Freight rate kept ascending because of the improved supply-demand relations. On August 12th, the freight rate (ocean freight plus surcharges) of the Australia and Singapore service appeared USD 833/TEU, burst by 16.7% from last week. Considering the outstanding performance of the cargo volume, carriers tended to uplift the freight rate once again by about USD 200/TEUl.
In Persian Gulf service, inflicting by the Ramadan, the cargo volume kept slipping and the slot utilization revealed at 90%. Freight rate kept the slumping behavior of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service quoted USD 953/TEU, down 0.7% from last week. As the demand of the capacity generally restrained, some carriers would cut their capacity by switching small tonnages into larger ones.
This week, the China’s containerized transport market maintained firm, with the composite index slightly increased. On August 12th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.52 points, up 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1033.24 points, up 1.4% from last week.
In Europe service this week, the cargo volume hiked steadily, buoying the slot utilization up to above 90% with some voyages running out of slots. The thriving market quotation stabilized the freight rate after its previous upturn, while in some voyages the price continued went up with the upward trajectory of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe service reported USD 828/TEU, up 0.6% from last week. In Mediterranean service, the ongoing conventional peak season stimulated the slot utilization to above 95%, with the freight rates over the west Mediterranean voyages climbed up to USD 1050/TEU. On August 12th, the freight rate (including ocean freight and surcharges) of the voyages to Mediterranean service was USD 1019/TEU, up 5.5% from last week.
In North America, a sharp differential turned up between the west- and east-bound services. In US west coast service the cargo remained sluggish and the slot utilization stood at about 85%. Freight rate kept dipping, while for some voyages the price had even fallen to USD 1300/FEU, which is near half of what it was a year earlier. On August 12th, the freight index of the US west coast service reported 903.59 points, down 1.7% from last week. The US east coast service was seen bullish, giving the limited capacity influx, sound supply-demand relation, and a 95% slot utilization, which in some cases it was 100%. On August 12th, the freight index of the US east coast service was 1191.18 points, basically equaling to last week. Thanks to the coming conventional peak season, carriers were poised to announce a USD 400/FEU peak season surcharge since August 15th. However, people were afraid of the plan’s implementation as the weak cargo volume and the excessive capacity could not be ignored. As a result, some were reported delaying the announcement to 22nd and cutting the price added.
However, whether the implementation will be fulfilled was conceived as an uncertainty by the market citing the weak cargo volume and the excessive capacity.
In Australia and Singapore service, the approaching conventional peak season left the cargo volume in a strong upward momentum, where the slot utilization hovering above 95% and more voyages were reported laden. Freight rate kept ascending because of the improved supply-demand relations. On August 12th, the freight rate (ocean freight plus surcharges) of the Australia and Singapore service appeared USD 833/TEU, burst by 16.7% from last week. Considering the outstanding performance of the cargo volume, carriers tended to uplift the freight rate once again by about USD 200/TEUl.
In Persian Gulf service, inflicting by the Ramadan, the cargo volume kept slipping and the slot utilization revealed at 90%. Freight rate kept the slumping behavior of last week. On August 12th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service quoted USD 953/TEU, down 0.7% from last week. As the demand of the capacity generally restrained, some carriers would cut their capacity by switching small tonnages into larger ones.
jueves, 28 de julio de 2011
CCFI Commentary Issue 29, 2011
Weekly Report of China Export Container Transport Market
This week, the China’s containerized transport market plunged slightly, while the comprehensive index decreased as well.
On July 15th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.84 points, down 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1016.87 points, down 1.3% from last week.
In Europe service, the market carried on the trend of last week as the slot utilization stayed above 90%. But because of the ongoing capacity glut and the sliding freight rate, the service was regard less prosperous than it was a year earlier. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe quoted USD 809/TEU, down 1% from last week. Some carriers were said to announce a peak season surcharge in August, but the plan seemed hard to implement because of the surplus fleet. While in Mediterranean the cargo volume tumbled marginally, causing a week-on-week descent over the slot utilization, which is about 90% currently. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Mediterranean showed USD 926/TEU, down 1.6% from last week.
In North America service this week the cargo volume kept at a high level as there’s a 95% slot utilization in US east coast, where some vessels running out of slots; while the US west coast service behaved not bad as well. Since the amount of fleet didn’t swung much, freight rate barely changed. On July 15th, the freight indices of the US west coast and US east coast services were 947.93 points and 1194.57 points, both grossly equaling to last week. The jobless rate of US had been reported soaring for 3 consecutive months to 9.2%, which would conceivably weaken not only its resident’s purchasing power but also the willingness, with a further impact over the procurement demand during this peak season. Besides, people could also conclude a pessimistic attitude from the carriers given the postponement of the PPS originally planned to impose on July 15th to after August 1st.
In Japan service there wasn’t much change over the cargo volume, where the slot utilization hovered at 70%. Freight rate maintained steadily. On July 15th, the freight index of the Japan service issued by SSE reported 789.06 points, basically the same as last week.
The approaching Ramadan was continuously pushing down the cargo volume exporting to the Persian Gulf with the slot utilization standing at 90%, and freight rate will apparently keep sluggish. It was said that carriers would like to have some surcharge to offset the bearish freight rate, but there’s no indication of when. On July 15th, the freight rate (ocean freight plus surcharges) for the voyages heading to Persian Gulf quoted USD 1005/TEU, down 1.1% from last week.
In Australia and Singapore service the cargo volume was seen firm and the slot utilization reveal at 90%. Freight rate was slightly pushed up by some carriers. Since the market was switching from the slack season to a peak period, cargo volume was estimated to hold still in July and it won’t start rallying until late August. On July 15th, the freight index of the Australia and Singapore service reported 926.73 points, up 1.1% from last week. Owing to the over-deployed capacity, the service proved less profitable than last year.
This week, the China’s containerized transport market plunged slightly, while the comprehensive index decreased as well.
On July 15th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 983.84 points, down 0.5% from last week; while the Shanghai Containerized Freight Index came out at 1016.87 points, down 1.3% from last week.
In Europe service, the market carried on the trend of last week as the slot utilization stayed above 90%. But because of the ongoing capacity glut and the sliding freight rate, the service was regard less prosperous than it was a year earlier. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe quoted USD 809/TEU, down 1% from last week. Some carriers were said to announce a peak season surcharge in August, but the plan seemed hard to implement because of the surplus fleet. While in Mediterranean the cargo volume tumbled marginally, causing a week-on-week descent over the slot utilization, which is about 90% currently. On July 15th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Mediterranean showed USD 926/TEU, down 1.6% from last week.
In North America service this week the cargo volume kept at a high level as there’s a 95% slot utilization in US east coast, where some vessels running out of slots; while the US west coast service behaved not bad as well. Since the amount of fleet didn’t swung much, freight rate barely changed. On July 15th, the freight indices of the US west coast and US east coast services were 947.93 points and 1194.57 points, both grossly equaling to last week. The jobless rate of US had been reported soaring for 3 consecutive months to 9.2%, which would conceivably weaken not only its resident’s purchasing power but also the willingness, with a further impact over the procurement demand during this peak season. Besides, people could also conclude a pessimistic attitude from the carriers given the postponement of the PPS originally planned to impose on July 15th to after August 1st.
In Japan service there wasn’t much change over the cargo volume, where the slot utilization hovered at 70%. Freight rate maintained steadily. On July 15th, the freight index of the Japan service issued by SSE reported 789.06 points, basically the same as last week.
The approaching Ramadan was continuously pushing down the cargo volume exporting to the Persian Gulf with the slot utilization standing at 90%, and freight rate will apparently keep sluggish. It was said that carriers would like to have some surcharge to offset the bearish freight rate, but there’s no indication of when. On July 15th, the freight rate (ocean freight plus surcharges) for the voyages heading to Persian Gulf quoted USD 1005/TEU, down 1.1% from last week.
In Australia and Singapore service the cargo volume was seen firm and the slot utilization reveal at 90%. Freight rate was slightly pushed up by some carriers. Since the market was switching from the slack season to a peak period, cargo volume was estimated to hold still in July and it won’t start rallying until late August. On July 15th, the freight index of the Australia and Singapore service reported 926.73 points, up 1.1% from last week. Owing to the over-deployed capacity, the service proved less profitable than last year.
miércoles, 27 de julio de 2011
Falling freight rates, increasing lay-ups depress charter market prices
THE charter market for containerships is slipping fast in the face of sliding freight rates and increasing lay-ups, according to Alphaliner analysts, which adds that current trends indicate charter rates will fall even more by the end of the year.
Maersk, MSC, CMA CGM continue to be active charterers, but CSAV is re-chartering surplus ships. Alphaliner says CSAV's continuous cutting of services will result in the Chilean carrier removing 100,000 TEU from its slot capacity by the end of August.
Further capacity could be lost if rates continue to fall. The top-four charterers - Maersk, MSC, CMA CGM and CSAV - account for more than 25 per cent of all fixtures. Any slowdown by any of them will have a significant impact on the market, it said.
Because of uncertain market conditions, more charterers are unwilling to sign longer-term deals. This trend is aggravated by the fact that owners have had to accept short charters in an increasingly fragile market as demand weakens.
Both the number of fixtures and the fixture periods have declined significantly since April. Charter rates have dropped by 11 per cent on average in the last three months, with all size segments affected.
Rates are likely to drop in coming months as demand slackens. InJune, the number of reported fixtures reached at the lowest level this year. The average duration of fixtures was cut from 10 months at the beginning of this year to seven months currently.
Maersk, MSC, CMA CGM continue to be active charterers, but CSAV is re-chartering surplus ships. Alphaliner says CSAV's continuous cutting of services will result in the Chilean carrier removing 100,000 TEU from its slot capacity by the end of August.
Further capacity could be lost if rates continue to fall. The top-four charterers - Maersk, MSC, CMA CGM and CSAV - account for more than 25 per cent of all fixtures. Any slowdown by any of them will have a significant impact on the market, it said.
Because of uncertain market conditions, more charterers are unwilling to sign longer-term deals. This trend is aggravated by the fact that owners have had to accept short charters in an increasingly fragile market as demand weakens.
Both the number of fixtures and the fixture periods have declined significantly since April. Charter rates have dropped by 11 per cent on average in the last three months, with all size segments affected.
Rates are likely to drop in coming months as demand slackens. InJune, the number of reported fixtures reached at the lowest level this year. The average duration of fixtures was cut from 10 months at the beginning of this year to seven months currently.
miércoles, 6 de julio de 2011
Capacity growth to reach 8.8% in 2011
Cellular containership capacity is expected to grow by an average annual rate
of 8.7% over the next two years, with 1.26 Mteu due to be added in 2011 and
1.33 Mteu in 2012, based on Alphaliner projections. These figures follow the
1.20 Mteu which have been added to the fleet in 2010. Although the fleet increases
over 2011-2012 will not reach the figures recorded in 2006-2008,
when an average of 1.37 Mteu per year were added, the level of capacity additions
remains a key concern for the industry.
![]()
A large part of the new capacity added in 2010 was absorbed by the increased
demand that was caused by the rapid economic recovery. Throughput volumes
at the world’s five busiest container ports grew by 18% on average in the first
three quarters of 2010. However, the average growth at these ports has slowed
to 8% in the fourth quarter, with the trend towards slower growth likely to persist
into 2011.
The slowing of the demand in the fourth quarter has already started to hurt carriers’
load factors. Alphaliner estimates of vessel utilization levels on the Far
East-US and Far East-Europe routes dropped to only 80% in December, the lowest
levels recorded since May 2009. Attention must now be shifted to utilization
levels in the next two months, as these will determine the direction of
freight rates after the Lunar New Year celebrations in the Far East.
Aphaliner
of 8.7% over the next two years, with 1.26 Mteu due to be added in 2011 and
1.33 Mteu in 2012, based on Alphaliner projections. These figures follow the
1.20 Mteu which have been added to the fleet in 2010. Although the fleet increases
over 2011-2012 will not reach the figures recorded in 2006-2008,
when an average of 1.37 Mteu per year were added, the level of capacity additions
remains a key concern for the industry.
A large part of the new capacity added in 2010 was absorbed by the increased
demand that was caused by the rapid economic recovery. Throughput volumes
at the world’s five busiest container ports grew by 18% on average in the first
three quarters of 2010. However, the average growth at these ports has slowed
to 8% in the fourth quarter, with the trend towards slower growth likely to persist
into 2011.
The slowing of the demand in the fourth quarter has already started to hurt carriers’
load factors. Alphaliner estimates of vessel utilization levels on the Far
East-US and Far East-Europe routes dropped to only 80% in December, the lowest
levels recorded since May 2009. Attention must now be shifted to utilization
levels in the next two months, as these will determine the direction of
freight rates after the Lunar New Year celebrations in the Far East.
Aphaliner
CCFI Commentary Issue 26, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 26, 2011)
This week, the China’s containerized transport market was little better, as the comprehensive index was still seen sluggish. On June 24th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 981.65 points, down 1.7% from last week; while the Shanghai Containerized Freight Index came out at 1024.77 points, down 0.6% from last week.
In Europe service, the demand for the capacity maintained an upward momentum, with a 90% slot utilization. Insiders estimated that there would be a drastic boost of the cargo volume on the first week of July, following a slots scarcity in the next one as the arrival of the conventional peak season. Affected by such optimism, the prevailing freight rate somehow tempered its falling trend while some carriers slightly uplift the freight rate. On June 24th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe and Mediterranean services were USD 845/TEU and USD 953/TEU, respectively down 0.5% and 0.2% from last week. The current freight rate on the service was reported staying below the breakeven point, so some carriers would shut off some routes if the freight rate kept dipping.
The North America service seemed bearish this week, and the cargo volume was still depressing as last week. Slot utilizations in US west and US east reported only 80% and 90% respectively. Since the service became less profitable, some carriers had already announced to suspend their voyages. The continuously descending freight rate had mostly nullified the conventional peak season, leaving some carriers delaying the PSS plan till mid-June. On June 24th, the freight indices of the US west and US east coast services issued by SSE were 938.48 points and 1174.13 points, respectively tumbled by 2.3% and 0.6% from last week. Pundits indicated that several carriers like Hanjin and APL would adopted a new formula to account the BAF in 3rd quarter, which will probably cut the existing one, published by the TSA on the US west and US east coast services, by USD 30/TEU and USD 48/TEU. Besides, carriers are expecting a shipment rally when mid-June and consequently kicks up the freight rate.
In Japan service this week the slot utilization climbed up to 70%. Moreover, the port congestions occurred a few weeks ago had been just relieved, resuming the shipping schedule of most voyages. On June 24th, the freight index of the Japan service issued by SSE reported 789.25 points. After the abolition of the emergency cost surcharge of Shanghai on June 1st, ports of northern China were said to go with the flow on August 1st. Relevant news might be released in the next few weeks.
In Persian Gulf service this week the cargo volume saw flat with a slot utilization of 85%. The Ramadan over the middle-east region started on August 1st and will possibly pressure the cargo volume in mid-July. Meanwhile, inflicted by the poor Europe service, the freight rate was perceived steadily decreasing. On June 24th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to Persian Gulf quoted USD 1014/TEU, down 0.5% from last week.
In Australia and Singapore service the cargo volume hardly changed, with the slot utilization hovering from 80% to 85%. Pundits believed that the freight rate won’t stop dropping until mid-July. On June 24th, the freight index of the Australia and Singapore service reported 934.51 points, down 1.1% from last week.
(CCFI Commentary in Issue 26, 2011)
This week, the China’s containerized transport market was little better, as the comprehensive index was still seen sluggish. On June 24th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 981.65 points, down 1.7% from last week; while the Shanghai Containerized Freight Index came out at 1024.77 points, down 0.6% from last week.
In Europe service, the demand for the capacity maintained an upward momentum, with a 90% slot utilization. Insiders estimated that there would be a drastic boost of the cargo volume on the first week of July, following a slots scarcity in the next one as the arrival of the conventional peak season. Affected by such optimism, the prevailing freight rate somehow tempered its falling trend while some carriers slightly uplift the freight rate. On June 24th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Europe and Mediterranean services were USD 845/TEU and USD 953/TEU, respectively down 0.5% and 0.2% from last week. The current freight rate on the service was reported staying below the breakeven point, so some carriers would shut off some routes if the freight rate kept dipping.
The North America service seemed bearish this week, and the cargo volume was still depressing as last week. Slot utilizations in US west and US east reported only 80% and 90% respectively. Since the service became less profitable, some carriers had already announced to suspend their voyages. The continuously descending freight rate had mostly nullified the conventional peak season, leaving some carriers delaying the PSS plan till mid-June. On June 24th, the freight indices of the US west and US east coast services issued by SSE were 938.48 points and 1174.13 points, respectively tumbled by 2.3% and 0.6% from last week. Pundits indicated that several carriers like Hanjin and APL would adopted a new formula to account the BAF in 3rd quarter, which will probably cut the existing one, published by the TSA on the US west and US east coast services, by USD 30/TEU and USD 48/TEU. Besides, carriers are expecting a shipment rally when mid-June and consequently kicks up the freight rate.
In Japan service this week the slot utilization climbed up to 70%. Moreover, the port congestions occurred a few weeks ago had been just relieved, resuming the shipping schedule of most voyages. On June 24th, the freight index of the Japan service issued by SSE reported 789.25 points. After the abolition of the emergency cost surcharge of Shanghai on June 1st, ports of northern China were said to go with the flow on August 1st. Relevant news might be released in the next few weeks.
In Persian Gulf service this week the cargo volume saw flat with a slot utilization of 85%. The Ramadan over the middle-east region started on August 1st and will possibly pressure the cargo volume in mid-July. Meanwhile, inflicted by the poor Europe service, the freight rate was perceived steadily decreasing. On June 24th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to Persian Gulf quoted USD 1014/TEU, down 0.5% from last week.
In Australia and Singapore service the cargo volume hardly changed, with the slot utilization hovering from 80% to 85%. Pundits believed that the freight rate won’t stop dropping until mid-July. On June 24th, the freight index of the Australia and Singapore service reported 934.51 points, down 1.1% from last week.
lunes, 30 de mayo de 2011
Oversupply fears already emerging for 2013
CONTAINERSHIP deliveries are expected to reach a record high of two million TEU in 2013, according to a recent report by maritime analyst, Alphaliner, which if accurate could signal a significant oversupply problem on the horizon.
According to Alphaliner's figures, new vessel orders for delivery in 2013 have increased from 0.38 million TEU to 1.59 million TEU in the last 12 months, exceeding the 1.57 million TEU in 2008.
New orders have also outpaced deliveries in the past 12 months.
Alphaliner's data shows that a total of 222 containerships, not including undeclared options, have been ordered, while containership deliveries reached 214 units…
"With all 2011 and most of 2012 delivery slots currently booked, attention now turns to 2013 slots. Scheduled deliveries for 2013 have surged from 380,000 TEU a year ago to 1.59 million TEU today, and there is still available shipyard capacity for 2013 deliveries. If all current options, letters of intent (LOI) and intended orders were exercised, 2013 vessel deliveries could exceed two million TEU," Alphaliner said.
The new orders bring the capacity growth forecast for 2013 to 8.9 per cent, which is expected to increase further to 11.3 per cent if options and LOIs are added.
Besides, shipowners have placed orders for a total of 1.6 million TEU of new capacity since June 2010, surpassing deliveries recorded in the same period that hit 1.4 million TEU.
Since January 2010, a total of 1.58 million TEU of new containerships have been ordered. Of those newly ordered vessels, carriers' orders account for 67 per cent or 1.06 million TEU, while orders from non-operating owners (NOO) account for the rest of the 30 per cent or 0.52 million TEU, Alphaliner said.
Overall, Alphaliner's figures reveal that the total investments in new containerships since January 2010 have swollen to US$18.8 billion.
According to Alphaliner's figures, new vessel orders for delivery in 2013 have increased from 0.38 million TEU to 1.59 million TEU in the last 12 months, exceeding the 1.57 million TEU in 2008.
New orders have also outpaced deliveries in the past 12 months.
Alphaliner's data shows that a total of 222 containerships, not including undeclared options, have been ordered, while containership deliveries reached 214 units…
"With all 2011 and most of 2012 delivery slots currently booked, attention now turns to 2013 slots. Scheduled deliveries for 2013 have surged from 380,000 TEU a year ago to 1.59 million TEU today, and there is still available shipyard capacity for 2013 deliveries. If all current options, letters of intent (LOI) and intended orders were exercised, 2013 vessel deliveries could exceed two million TEU," Alphaliner said.
The new orders bring the capacity growth forecast for 2013 to 8.9 per cent, which is expected to increase further to 11.3 per cent if options and LOIs are added.
Besides, shipowners have placed orders for a total of 1.6 million TEU of new capacity since June 2010, surpassing deliveries recorded in the same period that hit 1.4 million TEU.
Since January 2010, a total of 1.58 million TEU of new containerships have been ordered. Of those newly ordered vessels, carriers' orders account for 67 per cent or 1.06 million TEU, while orders from non-operating owners (NOO) account for the rest of the 30 per cent or 0.52 million TEU, Alphaliner said.
Overall, Alphaliner's figures reveal that the total investments in new containerships since January 2010 have swollen to US$18.8 billion.
CCFI Commentary Issue 21, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 21, 2011)
This week, the China containerized transport market remained sound, with a stable comprehensive index. On May 20th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 1013.37 points; while the Shanghai Containerized Freight Index came out at 1075.60 points, both hardly changed from last week.
In Europe service, the cargo volume stood still and the slot utilization averaged at 90%. Besides, some carriers continued reducing the freight rate, as on May 20th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe was USD 892/TEU, down 1.8% from last week. While the Europe service was perceived calm, the cargo volume in Mediterranean was relatively prosperous. Meanwhile, carriers’ previously prudent control over the capacity had gradually worked, making the slots become so insufficient that the utilization ratio reached above 95%, and laden voyages were seen as well. The apparent amelioration between supply and demand had effectively curbed and marginally upturned the freight rate’s downward trend. On May 20th, the freight rate (ocean freight plus surcharges) of the voyages exporting to the Mediterranean service quoted USD 924/TEU, which is USD 32/TEU higher than the Europe service. Industrial insiders opined that the approaching conventional peak season on the service could propel the steady rising momentum of the freight rate. Some carriers had claimed to impose a peak season surcharge, at about USD 200/TEU, on early June.
In North America service, the cargo volume of US west coast saw slightly soared, where the slot utilization kept hovering around 90%. While in US east coast, however, the unchanged over-supply kept pressuring on the freight rate, which dropped more than USD 100/FEU in some voyages. On May 20th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to US west coast and Us east coast services were USD 1819/FEU and USD 3188/FEU, respectively slipped 1.2% and 0.9% from last week.
In Australia and Singapore service, despite the constant increase in the cargo volume after May, yet since such increase didn’t meet the market expectation, the supply-demand relation was still losing the balance, and the slot utilization had decreased to 80%. The freight rate kept falling as well. On May 20th, the freight index of the Australia and Singapore service reported 962.73 points, down 1.0% from last week. It was rumored that some carriers were poised to add capacity on the service after June, which is very likely to contribute to the capacity surplus and cool down the freight rate.
In Persian Gulf service this week, the shipment rush ahead of the Ramadan steadily pushed up the cargo volume, where the slot utilization showed above 95% and some voyages reported out of slots. On May 20th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service was USD 1001/TEU, up 5.8% from last week.
In Japan service, the cargo volume kept hiking as end of May is coming, where the slot utilization climbed over 70% and the freight rate maintained firmly. On May 20th, the freight index of the Japan service issued by SSE came out at 824.36 points.
(CCFI Commentary in Issue 21, 2011)
This week, the China containerized transport market remained sound, with a stable comprehensive index. On May 20th, the China Containerized Freight Index issued by Shanghai Shipping Exchange was 1013.37 points; while the Shanghai Containerized Freight Index came out at 1075.60 points, both hardly changed from last week.
In Europe service, the cargo volume stood still and the slot utilization averaged at 90%. Besides, some carriers continued reducing the freight rate, as on May 20th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe was USD 892/TEU, down 1.8% from last week. While the Europe service was perceived calm, the cargo volume in Mediterranean was relatively prosperous. Meanwhile, carriers’ previously prudent control over the capacity had gradually worked, making the slots become so insufficient that the utilization ratio reached above 95%, and laden voyages were seen as well. The apparent amelioration between supply and demand had effectively curbed and marginally upturned the freight rate’s downward trend. On May 20th, the freight rate (ocean freight plus surcharges) of the voyages exporting to the Mediterranean service quoted USD 924/TEU, which is USD 32/TEU higher than the Europe service. Industrial insiders opined that the approaching conventional peak season on the service could propel the steady rising momentum of the freight rate. Some carriers had claimed to impose a peak season surcharge, at about USD 200/TEU, on early June.
In North America service, the cargo volume of US west coast saw slightly soared, where the slot utilization kept hovering around 90%. While in US east coast, however, the unchanged over-supply kept pressuring on the freight rate, which dropped more than USD 100/FEU in some voyages. On May 20th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to US west coast and Us east coast services were USD 1819/FEU and USD 3188/FEU, respectively slipped 1.2% and 0.9% from last week.
In Australia and Singapore service, despite the constant increase in the cargo volume after May, yet since such increase didn’t meet the market expectation, the supply-demand relation was still losing the balance, and the slot utilization had decreased to 80%. The freight rate kept falling as well. On May 20th, the freight index of the Australia and Singapore service reported 962.73 points, down 1.0% from last week. It was rumored that some carriers were poised to add capacity on the service after June, which is very likely to contribute to the capacity surplus and cool down the freight rate.
In Persian Gulf service this week, the shipment rush ahead of the Ramadan steadily pushed up the cargo volume, where the slot utilization showed above 95% and some voyages reported out of slots. On May 20th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in Persian Gulf service was USD 1001/TEU, up 5.8% from last week.
In Japan service, the cargo volume kept hiking as end of May is coming, where the slot utilization climbed over 70% and the freight rate maintained firmly. On May 20th, the freight index of the Japan service issued by SSE came out at 824.36 points.
viernes, 8 de abril de 2011
CCFI Commentary Issue 14, 2011
Weekly Report of China Export Container Transport Market
The China export box market remained steady this week as the demand on most oceangoing services gradually returned, where the freight rate stopped dropping. On April 1st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1,016.25 points, basically equaling to last week; while the Shanghai Containerized Freight Index came to 1,012.63 points, up 2.3% from last week.
With the significant re-activated vessels and new-deliveries added, the aggregate capacity on Europe service continued to expand. The latest statistics from CI ONLINE showed that, as of April 1st, the capacity engaging on Far East to North Europe and Mediterranean services stood at 2.76 million TEU and 1.18 million TEU, respectively up by 11.4% and 2.3% from the beginning of this year. The surplus thus showed no sign of mitigation despite a shipment rush occurred at the end of March. Fierce competition left carriers no choice but to cut the rate for cargo solicitation, which dampened the rate to less than USD 1,000/TEU. On April 1st, the freight index of Europe service was 1,287.52 points, down 2.5% from last week. Pundits indicated that the rate, which is close to the breakeven point for some carriers now, had been dipping by about USD 300/TEU since February. In addition, lines were increasingly suffered from the increased operation costs caused by the higher fuel bills. As a result, carriers are very likely to impose a Bunker Adjustment Factor (BAF) in mid-April. Moreover, it rumors that a rate restoration, previously abolished, might be launched on May 1st as some predict that volume would go up in April as the reopen of domestic manufacturers.
In North America service there was a steady upturn. The demand thrived in US west coast service as the conventional peak season in 2nd quarter is approaching, where the slot utilization hovered around 80%. The benefits brought from the rising shipment, however, had been partly offset by the capacity influx since March. The US east coast service showed less capacity-surplus, owing to the carriers’ relatively prudent capacity management, where the slot utilization averaged above 95% and some of the ships saw laden. Some lines imposed a BAF ahead of schedule, which lifted up the rate level. On April 1st, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast are USD 1,631/FEU and USD 2,905/FEU, respectively rose by 1.4% and 3.1% from last week.
In Japan service the cargo volume kept rising, where the slot utilization averaged around 85%. The rate slowly went up, with a slight increase of BAF for some voyages. On April 1st, the freight index of the Japan service showed 806.82 points, up 2.7% from last week.
Latest numbers from Alphaliner revealed the global capacity has broken through 15m TEU for the first time. Furthermore, the number of the idle ships has fallen to 84, or 185,000 TEU, which is a record low after 2008 November.
The China export box market remained steady this week as the demand on most oceangoing services gradually returned, where the freight rate stopped dropping. On April 1st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1,016.25 points, basically equaling to last week; while the Shanghai Containerized Freight Index came to 1,012.63 points, up 2.3% from last week.
With the significant re-activated vessels and new-deliveries added, the aggregate capacity on Europe service continued to expand. The latest statistics from CI ONLINE showed that, as of April 1st, the capacity engaging on Far East to North Europe and Mediterranean services stood at 2.76 million TEU and 1.18 million TEU, respectively up by 11.4% and 2.3% from the beginning of this year. The surplus thus showed no sign of mitigation despite a shipment rush occurred at the end of March. Fierce competition left carriers no choice but to cut the rate for cargo solicitation, which dampened the rate to less than USD 1,000/TEU. On April 1st, the freight index of Europe service was 1,287.52 points, down 2.5% from last week. Pundits indicated that the rate, which is close to the breakeven point for some carriers now, had been dipping by about USD 300/TEU since February. In addition, lines were increasingly suffered from the increased operation costs caused by the higher fuel bills. As a result, carriers are very likely to impose a Bunker Adjustment Factor (BAF) in mid-April. Moreover, it rumors that a rate restoration, previously abolished, might be launched on May 1st as some predict that volume would go up in April as the reopen of domestic manufacturers.
In North America service there was a steady upturn. The demand thrived in US west coast service as the conventional peak season in 2nd quarter is approaching, where the slot utilization hovered around 80%. The benefits brought from the rising shipment, however, had been partly offset by the capacity influx since March. The US east coast service showed less capacity-surplus, owing to the carriers’ relatively prudent capacity management, where the slot utilization averaged above 95% and some of the ships saw laden. Some lines imposed a BAF ahead of schedule, which lifted up the rate level. On April 1st, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast are USD 1,631/FEU and USD 2,905/FEU, respectively rose by 1.4% and 3.1% from last week.
In Japan service the cargo volume kept rising, where the slot utilization averaged around 85%. The rate slowly went up, with a slight increase of BAF for some voyages. On April 1st, the freight index of the Japan service showed 806.82 points, up 2.7% from last week.
Latest numbers from Alphaliner revealed the global capacity has broken through 15m TEU for the first time. Furthermore, the number of the idle ships has fallen to 84, or 185,000 TEU, which is a record low after 2008 November.
martes, 5 de abril de 2011
CCFI Commentary Issue 13, 2011
Weekly Report of China Export Container Transport Market
This week, a marginal fluctuation turn up in the China containerized transport market, with no obvious swelling in general cargo volume. On March 25th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1018.25 points; while the Shanghai Containerized Freight Index came out at 989.43 points, basically no change with last week.
In Europe and Mediterranean service, the volume kept up with previous week, where the slot utilization maintained at 90%. Nevertheless, the massive new-deployed capacity lowered the freight rate, as on March 25th, the freight indices of the Europe and Mediterranean services issued by SSE reported 1320.40 points and 1317.51 points, respectively down 3.4% and 2.3% from last week. Insiders indicated that more fleets would be arranged in the service in April, so the rally is very likely be restrained if the demand couldn't maintained the current upward momentum.
In North America service, the cargo volume kept the trend in last week, and the average slot utilization reported at about 70%. Freight rate was slightly volatile. On March 25th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast were USD 1608/FEU and USD 2819/FEU, basically equaling to last week. The conventional peak season on the North America service in 2nd quarter is approaching, while the rate restoration plans are approaching as well. However, pundits were afraid of the huge tonnage carriers were poised to release, so the glut of capacity, as a result, in the future could put the implement force of the restoration plans into doubt, despite the strong recovery of US' economy.
In Australia and Singapore services, carriers had been cutting 20% of the total capacity since February, where the pressure of capacity surplus was relieved. Besides, the upsurging demand warmed up the slot utilization to about 80%, and the freight rate marginally fluctuated. On March 25th, the freight rate index for the voyages from Shanghai to Australia and Singapore services was 954.95 points, down 0.7% from last week.
In Japan service, the demand ascended a little. The power brownouts over the Japan and the insufficient fuel continued hampering the port operations and the inland box transports. Carriers had already imposed a PCS (Port Congestion Surcharge) for some of the voyages from Shanghai to Kanto, buoying the freight rate. On March 25th, the freight rate index of the Japan service reported 785.56 points, soared 3.1% from last week.
The USDX fell to the yearlow this week, and such slump triggered a boosting crude oil price, to which the Libya woes had contributed as well. Some believe the crude oil price will stay high for a long time. Consequently, not only would the bunker price inflate but also the recovery in most developed countries to be stagnated. And whether the growth of China export containerized market will boom steadily remains to be seen.
This week, a marginal fluctuation turn up in the China containerized transport market, with no obvious swelling in general cargo volume. On March 25th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1018.25 points; while the Shanghai Containerized Freight Index came out at 989.43 points, basically no change with last week.
In Europe and Mediterranean service, the volume kept up with previous week, where the slot utilization maintained at 90%. Nevertheless, the massive new-deployed capacity lowered the freight rate, as on March 25th, the freight indices of the Europe and Mediterranean services issued by SSE reported 1320.40 points and 1317.51 points, respectively down 3.4% and 2.3% from last week. Insiders indicated that more fleets would be arranged in the service in April, so the rally is very likely be restrained if the demand couldn't maintained the current upward momentum.
In North America service, the cargo volume kept the trend in last week, and the average slot utilization reported at about 70%. Freight rate was slightly volatile. On March 25th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast were USD 1608/FEU and USD 2819/FEU, basically equaling to last week. The conventional peak season on the North America service in 2nd quarter is approaching, while the rate restoration plans are approaching as well. However, pundits were afraid of the huge tonnage carriers were poised to release, so the glut of capacity, as a result, in the future could put the implement force of the restoration plans into doubt, despite the strong recovery of US' economy.
In Australia and Singapore services, carriers had been cutting 20% of the total capacity since February, where the pressure of capacity surplus was relieved. Besides, the upsurging demand warmed up the slot utilization to about 80%, and the freight rate marginally fluctuated. On March 25th, the freight rate index for the voyages from Shanghai to Australia and Singapore services was 954.95 points, down 0.7% from last week.
In Japan service, the demand ascended a little. The power brownouts over the Japan and the insufficient fuel continued hampering the port operations and the inland box transports. Carriers had already imposed a PCS (Port Congestion Surcharge) for some of the voyages from Shanghai to Kanto, buoying the freight rate. On March 25th, the freight rate index of the Japan service reported 785.56 points, soared 3.1% from last week.
The USDX fell to the yearlow this week, and such slump triggered a boosting crude oil price, to which the Libya woes had contributed as well. Some believe the crude oil price will stay high for a long time. Consequently, not only would the bunker price inflate but also the recovery in most developed countries to be stagnated. And whether the growth of China export containerized market will boom steadily remains to be seen.
viernes, 18 de marzo de 2011
CCFI Commentary Issue 11, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 11, 2011)
This week, the China containerized transport market marginally went down, with weak demands and freight rates continued in most of the services. On March 11th, the China Containerized Freight Index Issued by Shanghai Shipping Exchange came out at 1027.90 points; while the Shanghai Containerized Freight Index broke through 1000 points threshold to the 993.99 points, down 2.9% from last week.
In Europe and Mediterranean services the inadequate demand, as well as the overcapacity, were still pulling down the freight rate, as on March 11th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe and Mediterranean quoted USD 1076/TEU and USD 1042/TEU, respectively down 22% and 15% comparing to the early of the year. Insiders indicated that the slumping freight rate since this year had almost turned the profits generated from the rate restorations in last year to be “vain”. Meanwhile, jumped to the 29 months high, the bunker price had rendered a significant impact on the carriers’ operating cost according to the latest statistics from Alphaliner. So how would the freight rate perform next basically determine the income of the carriers in the 1st quarter.
The capacity demand was still proved slack in North America service, where the slot utilization remain at 70% and the freight rate kept sliding. On March 11th, the freight rates for the voyages to the US west coast and US east coast were USD 1654/FEU and USD 2862/FEU, respectively shrunk by 4.8% and 3.2% from last week.
Volume appeared to rebound on the Australia and Singapore services, as the slot utilization soared to about 75%, while some even showed 80%. Still, the capacity surplus left unchanged, and the freight rate dropped to USD 700/TEU, some of the voyages even saw it below USD 650/TEU. On March 11th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Australia and Singapore showed USD 745/TEU, down 3.6% from last week. Pundits believe not only the low production caused by the post-lunar new year softened the cargo volume, but the extreme stagnancy of the residents’ spending will in Australia, where the Consumer Confidence Index in March was reported to fall by 2.4% from previous month, resulting an abundant retailing stockpile and the decreasing order for the China’s manufacturers.
In Persian Gulf service, some of the ships were hard to remain unscathed as the rampant Somali piracy frequently occurred in Fareast, Persian Gulf, and the Red Sea, adding up carriers’ risk and cost. Thanks to these pirates, carriers were poised to impose a WRS (Wars Risks Surcharge), pricing at USD 40/TEU. On March 11th, the freight rate of the voyages to the Persian Gulf service reflected USD 726/TEU.
The skyward international oil price forced carriers to speculate on the Bunker Surcharges. Those running on the Southeast Asia services were reported to have implemented an EBS (Emergency Bunker Surcharge) already in this month, quoting about RMB 900/TEU; while the carriers on the North America services introduced Bunker Surcharges of USD 100/FEU in US west coast and USD 200/FEU in US east coast. Also, freight rate over Africa service and South America service were uplifted as well.
(CCFI Commentary in Issue 11, 2011)
This week, the China containerized transport market marginally went down, with weak demands and freight rates continued in most of the services. On March 11th, the China Containerized Freight Index Issued by Shanghai Shipping Exchange came out at 1027.90 points; while the Shanghai Containerized Freight Index broke through 1000 points threshold to the 993.99 points, down 2.9% from last week.
In Europe and Mediterranean services the inadequate demand, as well as the overcapacity, were still pulling down the freight rate, as on March 11th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe and Mediterranean quoted USD 1076/TEU and USD 1042/TEU, respectively down 22% and 15% comparing to the early of the year. Insiders indicated that the slumping freight rate since this year had almost turned the profits generated from the rate restorations in last year to be “vain”. Meanwhile, jumped to the 29 months high, the bunker price had rendered a significant impact on the carriers’ operating cost according to the latest statistics from Alphaliner. So how would the freight rate perform next basically determine the income of the carriers in the 1st quarter.
The capacity demand was still proved slack in North America service, where the slot utilization remain at 70% and the freight rate kept sliding. On March 11th, the freight rates for the voyages to the US west coast and US east coast were USD 1654/FEU and USD 2862/FEU, respectively shrunk by 4.8% and 3.2% from last week.
Volume appeared to rebound on the Australia and Singapore services, as the slot utilization soared to about 75%, while some even showed 80%. Still, the capacity surplus left unchanged, and the freight rate dropped to USD 700/TEU, some of the voyages even saw it below USD 650/TEU. On March 11th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Australia and Singapore showed USD 745/TEU, down 3.6% from last week. Pundits believe not only the low production caused by the post-lunar new year softened the cargo volume, but the extreme stagnancy of the residents’ spending will in Australia, where the Consumer Confidence Index in March was reported to fall by 2.4% from previous month, resulting an abundant retailing stockpile and the decreasing order for the China’s manufacturers.
In Persian Gulf service, some of the ships were hard to remain unscathed as the rampant Somali piracy frequently occurred in Fareast, Persian Gulf, and the Red Sea, adding up carriers’ risk and cost. Thanks to these pirates, carriers were poised to impose a WRS (Wars Risks Surcharge), pricing at USD 40/TEU. On March 11th, the freight rate of the voyages to the Persian Gulf service reflected USD 726/TEU.
The skyward international oil price forced carriers to speculate on the Bunker Surcharges. Those running on the Southeast Asia services were reported to have implemented an EBS (Emergency Bunker Surcharge) already in this month, quoting about RMB 900/TEU; while the carriers on the North America services introduced Bunker Surcharges of USD 100/FEU in US west coast and USD 200/FEU in US east coast. Also, freight rate over Africa service and South America service were uplifted as well.
viernes, 11 de marzo de 2011
TUI Sells Hapag-Lloyd Stake to Albert Ballin, Approves IPO
TUI AG (TUI1), the German tour operator that owns almost half of Hapag-Lloyd, sold part of its stake to the container line’s other shareholder and said it may sell more through an initial public offering.
TUI, which owns 49.8 percent of Hapag-Lloyd, will sell an 11.33 percent stake to Albert Ballin GmbH for 315 million euros ($439 million), the Hanover, Germany-based company said in a statement today. The price may increase by as much as 35 million euros if an IPO takes place, providing “certain conditions are met,” according to the statement.
TUI’s supervisory board authorized the executive board to sell more of Hapag-Lloyd through an IPO, the statement said, without providing further details. An IPO of the container line is scheduled to happen by April 15 and will raise 1 billion euros to 1.5 billion euros, according to two people familiar with the matter. That may give a valuation of 2.8 billion euros to 3.5 billion euros, depending on demand, the people said.
The stake sale “is good news, as it values TUI’s Hapag- Lloyd stake at almost 1.8 billion euros,” or about 2 billion euros including the potential premium from an IPO, said Stefan Kick, an analyst at Silvia Quandt & Cie. who has a “buy” recommendation on the stock. That value is “much more than was expected by most people.”
Hapag-Lloyd returned to profit last year as a rebound in global trade enabled it to raise container-carrying rates. The shipping line has returned to a “position of strength,” Chairman Michael Behrendt said in December.
An IPO would also be subject to the approval of Albert Ballin shareholders. Albert Ballin, a Hamburg-based investment group that includes German billionaire Klaus Michael Kuehne, M.M. Warburg & Co., HSH Nordbank AG and Hamburg’s state government, bought a majority stake in Hapag-Lloyd in 2009. TUI, which controls U.K. tour operator TUI Travel Plc (TT/), has said it wants to invest proceeds from the IPO into its tourism business.
Bloomberg
viernes, 4 de marzo de 2011
CCFI Commentary Issue 09, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 09, 2011)
This week, with the weak recovery in European and American services, the China containerized transport market generally remained slack and the capacity still saw surplus.
On February 25th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1056.06 points, basically equaling to last week; while the Shanghai Containerized Transport Index came out at 1036.51 points, down 2.3% from last week.
While the Europe service was still in its upturn period in the post-Chinese new year, the controversy between the sluggish demand and the continuous increasing capacity kept the market unbalanced. We could see a relatively potent booming force in the cargo volume of the Northern China where there was a 85% slot utilization and a USD 1200/TEU ~ USD 1250/USD freight rate; whereas a limited growth was witnessed in the Eastern China’s export as the freight rate slightly sagged. The Southern China, however, saw a flat demand, which mainly attributed to a temporary labor insufficiency, putting off the manufacturers’ productions and slash the exports. The slot utilization of the voyages out of the region only hovered 75% with an intensified dropping freight rate.
On February 25th, the freight indices of the Europe and Mediterranean services were 1441.24 points and 1447.66 points, respectively down 0.8% and 0.5% from last week.
In North America the dipping trajectory of cargo volume was curbed with the slot utilization at about 70%, and freight rate marginally decreased. On February 25th, the freight rate (ocean freight plus surcharges) from Shanghai to base ports in US west coast and US east coast were USD 1783/FEU and USD 3011/FEU, respectively descended by 2.8% and 1.5% from last week. What’s worth mentioning was the monthly growth of 1.5% reported from the US’ entire retail sales in the first 3 weeks of February, while the US Consumer Confidence Indicator showed bouncing as well, implying a sound economy development in US and a prosperous demand from China goods.
Although carriers in Australia and Singapore services tried to cut the capacity, but the low cargo volume let the scenario of the glut of ships hardly ameliorated. The slot utilization on most voyages averaged at 60% while the freight rate kept dipping. On February 25th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Singapore and Australia quoted USD 801/TEU, down 2.3% from last week. Pundits believe one of the factors keeping depressing the cargo volume on the service is the underlying conventional slack season, besides, the natural calamities recently inflicting over the Australia like floods and hurricanes also contributed. It was rumored that the Asia Australia Discussion Agreement (AADA) were poised to extend its capacity readjustment plan, which originally announced to implement from January to March, due to the gloomy expectation.
A sharp rally of the shipment in Japan service could be perceived this week, as the slot utilization soared above 60% and the freight rate remained steady. On February 25th, the freight index of the Japan service issued by SSE was 769.35 points.
(CCFI Commentary in Issue 09, 2011)
This week, with the weak recovery in European and American services, the China containerized transport market generally remained slack and the capacity still saw surplus.
On February 25th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1056.06 points, basically equaling to last week; while the Shanghai Containerized Transport Index came out at 1036.51 points, down 2.3% from last week.
While the Europe service was still in its upturn period in the post-Chinese new year, the controversy between the sluggish demand and the continuous increasing capacity kept the market unbalanced. We could see a relatively potent booming force in the cargo volume of the Northern China where there was a 85% slot utilization and a USD 1200/TEU ~ USD 1250/USD freight rate; whereas a limited growth was witnessed in the Eastern China’s export as the freight rate slightly sagged. The Southern China, however, saw a flat demand, which mainly attributed to a temporary labor insufficiency, putting off the manufacturers’ productions and slash the exports. The slot utilization of the voyages out of the region only hovered 75% with an intensified dropping freight rate.
On February 25th, the freight indices of the Europe and Mediterranean services were 1441.24 points and 1447.66 points, respectively down 0.8% and 0.5% from last week.
In North America the dipping trajectory of cargo volume was curbed with the slot utilization at about 70%, and freight rate marginally decreased. On February 25th, the freight rate (ocean freight plus surcharges) from Shanghai to base ports in US west coast and US east coast were USD 1783/FEU and USD 3011/FEU, respectively descended by 2.8% and 1.5% from last week. What’s worth mentioning was the monthly growth of 1.5% reported from the US’ entire retail sales in the first 3 weeks of February, while the US Consumer Confidence Indicator showed bouncing as well, implying a sound economy development in US and a prosperous demand from China goods.
Although carriers in Australia and Singapore services tried to cut the capacity, but the low cargo volume let the scenario of the glut of ships hardly ameliorated. The slot utilization on most voyages averaged at 60% while the freight rate kept dipping. On February 25th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Singapore and Australia quoted USD 801/TEU, down 2.3% from last week. Pundits believe one of the factors keeping depressing the cargo volume on the service is the underlying conventional slack season, besides, the natural calamities recently inflicting over the Australia like floods and hurricanes also contributed. It was rumored that the Asia Australia Discussion Agreement (AADA) were poised to extend its capacity readjustment plan, which originally announced to implement from January to March, due to the gloomy expectation.
A sharp rally of the shipment in Japan service could be perceived this week, as the slot utilization soared above 60% and the freight rate remained steady. On February 25th, the freight index of the Japan service issued by SSE was 769.35 points.
lunes, 28 de febrero de 2011
Scrambling to swap Libyan crude for Saudi
Posted by FT Alphaville on Feb 24 11:22.
Hitting the wires at pixel time — an astonishing promise:
RIYADH, Feb 24 (Reuters) – Saudi Arabia is willing and able to supply high quality, light oil to replace any lost Libyan crude, senior Saudi sources said on Thursday.
“Saudi is willing and capable of supplying oil of the same quality, either Arab extra light or through blending,” one source said…
Some West African crude, such as Angolan crude can also be redirected to Europe, the sources said, while Saudi Arabia could temporarily send extra oil to Asia to compensate.
Well, the feasibility of a straight Libyan-Saudi swap has been an issue. Needless to say, prices of Arab Light and Arab Extra Light have been spiking sharply higher following the chaos in Libyan production:
This, though, appears to be offering a complicated, global swap of oil products — one which leaves Saudi Arabia relatively exposed to the market’s current gyrations. For one thing, blending means that they would need ready access to condensates and other components. It’s also by no means easy to create a perfect substitute, even with blending.
Meanwhile, it’s also worth noting that Saudi Aramco announced only days ago that it would become active in the swaps market — a move which has reportedly been in the pipeline for some time:
Aramco, one of the largest exporters of fuel oil and naphtha into East Asia as well as a net importer of gas oil, is also expected to make its debut in the oil swaps market when it starts trading, traders said…
Aramco, which had already started optimising production for the past one to two years, is expected to trade conservatively in the swaps market, mainly for hedging purposes and not be seen as engaging in market-moving trading plays, the traders added.
This could prove useful for hedging any unanticipated basis risk brought about crude differential exposure.
A bit like the central bank of oil opening itself up for a swap line arrangement — but in a scenario in which Saudi Arabia becomes the equivalent of the Fed, with a euro shortage problem.
Although there is one fly in the ointment, however — unrest hitting Saudi itself. Protests are currently scheduled for a ‘Day of Rage’ on March 11, although it’s a fast-changing situation as eyes flash from Tripoli — to Riyadh.
By Joseph Cotterill and Izabella Kaminska
Hitting the wires at pixel time — an astonishing promise:
RIYADH, Feb 24 (Reuters) – Saudi Arabia is willing and able to supply high quality, light oil to replace any lost Libyan crude, senior Saudi sources said on Thursday.
“Saudi is willing and capable of supplying oil of the same quality, either Arab extra light or through blending,” one source said…
Some West African crude, such as Angolan crude can also be redirected to Europe, the sources said, while Saudi Arabia could temporarily send extra oil to Asia to compensate.
Well, the feasibility of a straight Libyan-Saudi swap has been an issue. Needless to say, prices of Arab Light and Arab Extra Light have been spiking sharply higher following the chaos in Libyan production:
This, though, appears to be offering a complicated, global swap of oil products — one which leaves Saudi Arabia relatively exposed to the market’s current gyrations. For one thing, blending means that they would need ready access to condensates and other components. It’s also by no means easy to create a perfect substitute, even with blending.
Meanwhile, it’s also worth noting that Saudi Aramco announced only days ago that it would become active in the swaps market — a move which has reportedly been in the pipeline for some time:
Aramco, one of the largest exporters of fuel oil and naphtha into East Asia as well as a net importer of gas oil, is also expected to make its debut in the oil swaps market when it starts trading, traders said…
Aramco, which had already started optimising production for the past one to two years, is expected to trade conservatively in the swaps market, mainly for hedging purposes and not be seen as engaging in market-moving trading plays, the traders added.
This could prove useful for hedging any unanticipated basis risk brought about crude differential exposure.
A bit like the central bank of oil opening itself up for a swap line arrangement — but in a scenario in which Saudi Arabia becomes the equivalent of the Fed, with a euro shortage problem.
Although there is one fly in the ointment, however — unrest hitting Saudi itself. Protests are currently scheduled for a ‘Day of Rage’ on March 11, although it’s a fast-changing situation as eyes flash from Tripoli — to Riyadh.
By Joseph Cotterill and Izabella Kaminska
China's 2010 gross oceanic product reaches 3.8 trillion yuan
Feb.28--The State Oceanic Administration (SOA) told Xinhua Saturday that China's gross oceanic product was worth 3.8 trillion yuan (577.89 billion U.S. dollars). The figure accounted for 9.7 percent of the nation's total gross domestic product in 2010 and 16 percent of the GDP in coastal areas. China's gross oceanic product surged from 1.77 trillion yuan in 2005 to 3.8 trillion yuan last year, an annual increase of 13.5 percent, said the SOA. In the past five years, the oceanic industry provided 33 million jobs to people in the coastal areas.
(Source:Xinhua)
(Source:Xinhua)
Container shipping volumes to rise 10pc in 2011: SeaAxis
Feb.28--PARIS based SeaAxis, the container leasing arm of Axis Intermodal UK, forecasts that demand for container shipping services will rise more than 10 per cent this year on the back of a recovery in the global economy led by the strength of emerging nations. On the other hand, its quarterly report on box shipping also predicts that overall freight rates will fall by another 10 per cent in the second quarter, reports Newark's Journal of Commerce. The biggest threat to the ocean liner industry is overcapacity, which "will peak soon before diminishing later this year as trade volume rises," the report said."The highest risks facing the container shipping industry at this time, in order of importance, are: acceleration of redeployment of vessel capacity, increase in fuel costs, increase in container prices, commodity price surge and regional political instability, said SeaAxis vice president Philippe Hoehlinger.But he remained optimistic. "The underlying fundamentals for container shipping remain largely favourable in the mid-term with the forging of global supply chains, the rise in merchandise trade and the emergence of BRIC countries still creating demand for the future."
(Source:Shippingazette)
(Source:Shippingazette)
CCFI Commentary Issue 08, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 08, 2011)
On February 18th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1052.52 points, basically the same from last week; while the Shanghai Containerized Freight Index came out at 1060.47 points, down 2.8% from last week.
In Europe service the shipment was so weak that the slot utilization only showed 80% even carriers attempted to uplift the freight rate with capacity cutting, voyage suspending, and slow steaming. Unfortunately, the result was disappointing. On February 18th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe quoted USD 1246/TEU, slipped by 4.5% from last week. Commentaries from the insiders indicated the China's export was basically entangled by the post Chinese new year effect which have yet to fade since part of the plants still haven't resumed production completely, also, the slow production cycle of some of the manufactures contributes as well.
In North America service the cargo volume kept shrinking this week as the slot utilization dropped to 70%, while the freight rate tended to decline even tougher. On February 18th, the freight rate (ocean freight plus surcharges) of the voyages to base ports in US west coast and US east coast were USD 1835/TEU and USD 3056/TEU, respectively down 3.4% and 2.2% from last week. What's worth mentioning is the optimism of US federal reserve board, who predicted the economic growth for 2011 at 3.4% ~ 3.9%, up by 0.4% compared to the figure previously announced in 2010 November. Should the over-estimated growth come real, the prosperity of North America service will be greatly driven forward.
In Singapore and Australia service the cargo volume preserved the downward trajectory as the slot utilization hold below 50%. On February 18th, the freight rate (ocean freight plus surcharges) to the base ports in Australia and Singapore services saw USD 820/TEU, slid 4.5% from last week. With the significant amount of fleet deployed last year, the glut of capacity hardly changed although carriers had put efforts to ameliorate the situation. Under the current downward pressure of the shipment, carriers are now commonly conservative about the short-term market.
Shipments in Japan service turned thriving, but no stronger than half of it was before the holiday. And the freight rate remained hard to rally because of the doom expectations for the next month. On February 18th, the freight index of the Japan service reported 749.37 points, marginally descended from last week.
In Southeast Asia service both the cargo volume and the freight rate slumped, as on February 18th, the freight rate (ocean freight plus surcharges) from Shanghai to Southeast Asia showed USD 149/TEU, down 2.6% from last week. Latest statistics in January from China customs informed that the bilateral trade with ASEAN Free Trade Area has outdo that of with Japan and became the third greatest trading partner for China. Thanks to the sound establishment of ASEAN Free Trade Area, the rapid growing strength of the shipment on the Southeast Asia services would be regarded as one of the most powerful engine for the China's transport market when most western services appeared stagnant.
(CCFI Commentary in Issue 08, 2011)
On February 18th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1052.52 points, basically the same from last week; while the Shanghai Containerized Freight Index came out at 1060.47 points, down 2.8% from last week.
In Europe service the shipment was so weak that the slot utilization only showed 80% even carriers attempted to uplift the freight rate with capacity cutting, voyage suspending, and slow steaming. Unfortunately, the result was disappointing. On February 18th, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe quoted USD 1246/TEU, slipped by 4.5% from last week. Commentaries from the insiders indicated the China's export was basically entangled by the post Chinese new year effect which have yet to fade since part of the plants still haven't resumed production completely, also, the slow production cycle of some of the manufactures contributes as well.
In North America service the cargo volume kept shrinking this week as the slot utilization dropped to 70%, while the freight rate tended to decline even tougher. On February 18th, the freight rate (ocean freight plus surcharges) of the voyages to base ports in US west coast and US east coast were USD 1835/TEU and USD 3056/TEU, respectively down 3.4% and 2.2% from last week. What's worth mentioning is the optimism of US federal reserve board, who predicted the economic growth for 2011 at 3.4% ~ 3.9%, up by 0.4% compared to the figure previously announced in 2010 November. Should the over-estimated growth come real, the prosperity of North America service will be greatly driven forward.
In Singapore and Australia service the cargo volume preserved the downward trajectory as the slot utilization hold below 50%. On February 18th, the freight rate (ocean freight plus surcharges) to the base ports in Australia and Singapore services saw USD 820/TEU, slid 4.5% from last week. With the significant amount of fleet deployed last year, the glut of capacity hardly changed although carriers had put efforts to ameliorate the situation. Under the current downward pressure of the shipment, carriers are now commonly conservative about the short-term market.
Shipments in Japan service turned thriving, but no stronger than half of it was before the holiday. And the freight rate remained hard to rally because of the doom expectations for the next month. On February 18th, the freight index of the Japan service reported 749.37 points, marginally descended from last week.
In Southeast Asia service both the cargo volume and the freight rate slumped, as on February 18th, the freight rate (ocean freight plus surcharges) from Shanghai to Southeast Asia showed USD 149/TEU, down 2.6% from last week. Latest statistics in January from China customs informed that the bilateral trade with ASEAN Free Trade Area has outdo that of with Japan and became the third greatest trading partner for China. Thanks to the sound establishment of ASEAN Free Trade Area, the rapid growing strength of the shipment on the Southeast Asia services would be regarded as one of the most powerful engine for the China's transport market when most western services appeared stagnant.
lunes, 21 de febrero de 2011
Maersk Reported In $2 Billion Order for 18,000-TEU Ships
Deal with Daewoo Shipbuilding for 10 ships could double, Reuters reports
Feb.21--A.P. Moller-Maersk placed a $2 billion order for 10 18,000 20-foot equivalent unit container ships with South Korea’s Daewoo Shipbuilding and Marine Engineering, according to published reports, setting a new standard in the rapid escalation in vessel capacity.
The parent of Maersk Line, the world’s largest container ship operator, also is negotiating options for another 10 vessels of the same size, which would take the total value of the contract to $4 billion, according to a report by Reuters out of Hong Kong.
“The deal has been signed and they are preparing details ahead of a public announcement expected next week,” Reuters quoted an unnamed source as saying.
A.P. Moller-Maersk played down the report. “We do not comment on rumors and we have not signed any deal with Daewoo,” a spokesman for the Copenhagen-based company said.
Maersk Line’s North Asia chief executive, Tim Smith, has scheduled a news conference for Monday in Hong Kong to outline the carrier’s plans for Asia.
Reports that Maersk was planning to order ships with almost 4,000 TEUs more capacity than the current largest vessels first surfaced in November.
The Danish carrier launched the era of super-sized container vessels in 2006 with the launch of the Emma Maersk, the first of eight sisterships, whose capacity was officially declared to be 12,500 TEUs but was widely believed to be closer to 14,000 TEUs.
Feb.21--A.P. Moller-Maersk placed a $2 billion order for 10 18,000 20-foot equivalent unit container ships with South Korea’s Daewoo Shipbuilding and Marine Engineering, according to published reports, setting a new standard in the rapid escalation in vessel capacity.
The parent of Maersk Line, the world’s largest container ship operator, also is negotiating options for another 10 vessels of the same size, which would take the total value of the contract to $4 billion, according to a report by Reuters out of Hong Kong.
“The deal has been signed and they are preparing details ahead of a public announcement expected next week,” Reuters quoted an unnamed source as saying.
A.P. Moller-Maersk played down the report. “We do not comment on rumors and we have not signed any deal with Daewoo,” a spokesman for the Copenhagen-based company said.
Maersk Line’s North Asia chief executive, Tim Smith, has scheduled a news conference for Monday in Hong Kong to outline the carrier’s plans for Asia.
Reports that Maersk was planning to order ships with almost 4,000 TEUs more capacity than the current largest vessels first surfaced in November.
The Danish carrier launched the era of super-sized container vessels in 2006 with the launch of the Emma Maersk, the first of eight sisterships, whose capacity was officially declared to be 12,500 TEUs but was widely believed to be closer to 14,000 TEUs.
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 07, 2011)
This week, the China containerized transport market turned gloomy under the post-Chinese lunar new year, as both cargo volume and freight rates shrunk apparently in most main services.
On February 11th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1051.14 points, down 0.8% from last week; while the Shanghai Containerized Freight Index came out at 1091.33 points, down 1.2% from last week.
In Europe service, cargo volume fell drastically comparing to the period before the lunar new year, but with the support of the carrier’s capacity readjustment the slot utilization maintained at 85% while the freight rate descended a little.
On February 11th, the freight index of the Europe service issued by SSE reported 1453.65 points, down 1.3% from last week.
Pundits believed the downward trajectory of the general market hardly changed since it was still in its slack season, but an upsurging momentum is expected to rise after Arpil according to the empirical evidence, which would probably buoyed the container market.
In North America services the sharp decrease in cargo volume this week pulled down the slot utilization to about 80%. And the current sluggish market was mainly shaped by two reasons, first of which is the substantially slumped shipment caused by most manufacturers’ shutdown during the lunar new year; while the second is that the shipment rush ahead of the holiday had fore-delivered part of the cargos in this week, leaving carriers no choice but declining freight rate for solicitation.
On February 11th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in US west coast and US east coast quoted USD 1900/FEU and USD 3124/FEU, respectively down 1.7% and 1.3%.
The cargo volume had greatly contracted on the Australia service after the holiday whereas the freight rate slightly slid a little. While the impact from the flood eased gradually, carriers have been stingy with the capacity since late January, however, the fact of the prevailing slack season and the abundant stockpile had significantly depress the import, lowering the demand of capacity as consequence.
On February 11th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Australia and Singapore services saw USD 859/TEU, down 1% from last week.
In Japan service, the slot utilization dropped terribly to less than 50%, while the freight rate maintained steady.
On February 11th, the freight index of the Japan service was 764.68 points, barely changed from last week.
Latest statistics from Japan’s Ministry of Finance showed that the total trade between Japan and China has reached 26.5 trillion yen, up 22.3% from last year, almost returning to the record high before the crisis.
This week, the China containerized transport market turned gloomy under the post-Chinese lunar new year, as both cargo volume and freight rates shrunk apparently in most main services.
On February 11th, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1051.14 points, down 0.8% from last week; while the Shanghai Containerized Freight Index came out at 1091.33 points, down 1.2% from last week.
In Europe service, cargo volume fell drastically comparing to the period before the lunar new year, but with the support of the carrier’s capacity readjustment the slot utilization maintained at 85% while the freight rate descended a little.
On February 11th, the freight index of the Europe service issued by SSE reported 1453.65 points, down 1.3% from last week.
Pundits believed the downward trajectory of the general market hardly changed since it was still in its slack season, but an upsurging momentum is expected to rise after Arpil according to the empirical evidence, which would probably buoyed the container market.
In North America services the sharp decrease in cargo volume this week pulled down the slot utilization to about 80%. And the current sluggish market was mainly shaped by two reasons, first of which is the substantially slumped shipment caused by most manufacturers’ shutdown during the lunar new year; while the second is that the shipment rush ahead of the holiday had fore-delivered part of the cargos in this week, leaving carriers no choice but declining freight rate for solicitation.
On February 11th, the freight rate (ocean freight plus surcharges) of the voyages from Shanghai to base ports in US west coast and US east coast quoted USD 1900/FEU and USD 3124/FEU, respectively down 1.7% and 1.3%.
The cargo volume had greatly contracted on the Australia service after the holiday whereas the freight rate slightly slid a little. While the impact from the flood eased gradually, carriers have been stingy with the capacity since late January, however, the fact of the prevailing slack season and the abundant stockpile had significantly depress the import, lowering the demand of capacity as consequence.
On February 11th, the freight rate (ocean freight plus surcharges) of the voyages to the base ports in Australia and Singapore services saw USD 859/TEU, down 1% from last week.
In Japan service, the slot utilization dropped terribly to less than 50%, while the freight rate maintained steady.
On February 11th, the freight index of the Japan service was 764.68 points, barely changed from last week.
Latest statistics from Japan’s Ministry of Finance showed that the total trade between Japan and China has reached 26.5 trillion yen, up 22.3% from last year, almost returning to the record high before the crisis.
jueves, 3 de febrero de 2011
lunes, 31 de enero de 2011
Top Ocean Carriers' Capacity Swelled 14 Percent in 2010
Jan 4 -- The top 20 container lines increased their operated capacity 14 percent over the last 12 months, as the strong recovery in freight volume led carriers to take on new tonnage over 2010, Alphaliner reported.
The total liner capacity of both cellular and non-cellular vessels grew 8.6 percent in 2010 to reach 14.8 million 20-foot equivalent units as of Jan. 1, 2011, according to the Paris-based information service.
The total cellular fleet stands at 4,849 ships with a nominal capacity of 14,270,000 TEUs, up 9.1 percent from January, 2010.
The total capacity of the fleet operated by the top 20 carriers reached 12.3 million TEUs compared to 10.8 million TEUs a year ago.
The overall share of the top 20 carriers as a percentage of the global liner fleet rose to 83 percent from 79 percent, as the large carriers’ capacity additions outpaced the overall increase in liner capacity.
Over the last year, the top 20 carriers have reduced their idled capacity from 740,000 TEUs, or 6.9 percent of their operated capacity as of Jan. 1, 2010 to only 136,000 TEUs currently, or 1.1 percent of their operated fleet.
Eighteen of the top 20 carriers increased their operated capacity, with only NYK and “K” Line logging a decline in the last 12 months, Alphaliner said.
Mediterranean Shipping Co., the second largest container line, recorded the largest increase in capacity over the last 12 months, adding 375,000 TEUs to its fleet, up 25 percent.
In relative terms, the strongest capacity increase was made by CSAV with a 74 percent growth in the last 12 months from 333,000 TEUs to 579,000 TEUs currently, Alphaliner said.
By contrast, the capacity of Maersk Line, the world’s largest carrier, increased a modest 5 percent in the 12-month period, while that of Evergreen, the fourth-largest carrier grew 8 percent.
CCFI Commentary Issue 05, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 05, 2011)
This week, the demand of the China containerized transport market was warmed by the shipment rush ahead of the Conventional Spring Festival, where the cargo volume boosted evidently on services like Europe and North America, nevertheless, the increase of which seemed not strong enough due to the excessive capacity. On January 21st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1060.64 points; while the Shanghai Containerized Freight Index came out at 1107.85 points, both declined 0.4% from last week.
Stepping into the peak period of the cargo exporting before the Spring Festival, the Europe service was seen its shipment volume keeping thriving and the slot utilization jumped to 95%, besides, fright rate remained steady. On January 21st, the freight index of the Europe service issued by SSE was 1482.37 points, basically no change with last week. In spite of the current prosperous market, cargo volume will definitely turn dull once entering the festival, until then there will be capacity cutting policies like voyages readjustment and cancellation on most services. As a result, how cargo volume recovers afterwards turn out to be the key of the short-term market. Freight rate will incur significant downward pressure if the cargo volume behaves with a disappointing growth by the moment.
In North America service, the market showed no signs of improvement because of the swelling capacity, although the cargo volume rose steadily. Slot utilization stayed around 90%. Statistics from CI ONLINE indicated a 1.723m TEU of capacity was engaging from Far-east to US west coast as of January 1st, multiplying by 48000TEU from December 2010. Bearish sentiments of the short-term market left carriers cutting the price for solicitation, where the restoration of the freight rate has been offsetting mostly by its downward trajectory since early January.
n January 21st, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast services were USD 1955/FEU and USD 3168/FEU, respectively down 1.1% and 0.9% from last week.
Still, thanks to the pre-Spring Festival, both the transport demand and the cargo volume in Australia and Singapore service showed upward momentum. Also, the recent appreciating exchange rate of the Australian dollar against RMB greatly enhanced the purchasing power of the consignees in acceptance places, propelling the increase of the cargo volume. Besides, the sharp contract of the capacity on the service since late January pulled the slot utilization up to above 95% this week, where laden vessels and steady freight rate could be witnessed as consequence.
In Japan service, cargo volume marginally ascended and the slot utilization hovered around 70%, and freight rate maintained steady as usual. On January 21st, the freight index of the Japan service reported 753.40 points, generally remained the same from last week.
Latest report from Alphaliner informs that the growth of this year’s containerized transport market will back to normal, which the cargo volume is estimated to perk up by 7.7% annually. However the global capacity will be expected to inflate as well, by 1.3m TEU, or 8.6% from 2010, darkening the market of 2011.
(CCFI Commentary in Issue 05, 2011)
This week, the demand of the China containerized transport market was warmed by the shipment rush ahead of the Conventional Spring Festival, where the cargo volume boosted evidently on services like Europe and North America, nevertheless, the increase of which seemed not strong enough due to the excessive capacity. On January 21st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1060.64 points; while the Shanghai Containerized Freight Index came out at 1107.85 points, both declined 0.4% from last week.
Stepping into the peak period of the cargo exporting before the Spring Festival, the Europe service was seen its shipment volume keeping thriving and the slot utilization jumped to 95%, besides, fright rate remained steady. On January 21st, the freight index of the Europe service issued by SSE was 1482.37 points, basically no change with last week. In spite of the current prosperous market, cargo volume will definitely turn dull once entering the festival, until then there will be capacity cutting policies like voyages readjustment and cancellation on most services. As a result, how cargo volume recovers afterwards turn out to be the key of the short-term market. Freight rate will incur significant downward pressure if the cargo volume behaves with a disappointing growth by the moment.
In North America service, the market showed no signs of improvement because of the swelling capacity, although the cargo volume rose steadily. Slot utilization stayed around 90%. Statistics from CI ONLINE indicated a 1.723m TEU of capacity was engaging from Far-east to US west coast as of January 1st, multiplying by 48000TEU from December 2010. Bearish sentiments of the short-term market left carriers cutting the price for solicitation, where the restoration of the freight rate has been offsetting mostly by its downward trajectory since early January.
n January 21st, the freight rate (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US west coast and US east coast services were USD 1955/FEU and USD 3168/FEU, respectively down 1.1% and 0.9% from last week.
Still, thanks to the pre-Spring Festival, both the transport demand and the cargo volume in Australia and Singapore service showed upward momentum. Also, the recent appreciating exchange rate of the Australian dollar against RMB greatly enhanced the purchasing power of the consignees in acceptance places, propelling the increase of the cargo volume. Besides, the sharp contract of the capacity on the service since late January pulled the slot utilization up to above 95% this week, where laden vessels and steady freight rate could be witnessed as consequence.
In Japan service, cargo volume marginally ascended and the slot utilization hovered around 70%, and freight rate maintained steady as usual. On January 21st, the freight index of the Japan service reported 753.40 points, generally remained the same from last week.
Latest report from Alphaliner informs that the growth of this year’s containerized transport market will back to normal, which the cargo volume is estimated to perk up by 7.7% annually. However the global capacity will be expected to inflate as well, by 1.3m TEU, or 8.6% from 2010, darkening the market of 2011.
jueves, 27 de enero de 2011
CCFI Commentary Issue 02, 2011
Weekly Report of China Export Container Transport Market
(CCFI Commentary in Issue 02, 2011)
This week, the demand of China’s containerized transport market saw upward, as the strong shipment on the Europe and America services curbed the slumping freight rate. On 2010 December 31st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1053.93 points, almost no change with last week; while the Shanghai Containerized Freight Index reported 1122.68 points, with an week-on-week increase of 3.7%.
Europe service entered its annual final stage this week, where the cargo volume sharply raised, pushing the slot utilization to 100%; whereas Mediterranean service was relatively weaker than the Europe service as the growth of the shipment exporting to North Africa showed lackluster, but still the cargo volume kept the rising trajectory with the slot utilization having climbed to 95%. Some of the carriers managed to restore the freight rate on January 1st 2011, bounding up the price of slot reservation for the first time after the 10 Q4. On December 31st, the freight rates (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe and Mediterranean services nailed at USD 1401/TEU and USD 1250/TEU, respectively up 4.4% and 1.2%.
In North America service, the cargo volume kept the mounting momentum and sustained the slot utilization to above 95%. Considering the growing cargo volume, carriers were poised to upraise the freight rate, and some of them had already done that. On 2010 December 31st, the freight rates (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US east coast and US west coast quoted USD 1962/FEU and USD 3169/FEU, both of which increased more than USD 100/FEU. Seasonal factors substantially boosted the demand of the capacity. The indices, however, which demonstrate the US economic consuming power was quite mixed, with the December retail sales increased and consumer confidence index dropped compared to the previous month. As a result, the short-term market on the North America service remains unclear. Besides, it was rumored that carriers drastically diverged about the range of the peak season surcharge, ranging from USD 200/FEU ~ USD 400/TEU. Moreover, some of them probably delay the PPS to 2011 January 15th.
The prevailing rate restoration on the main west-east services like Europe and Mediterranean had encouraged most carriers on other services to follow the step, where several liner operators announced to hike the rate with various degrees in January on West Africa, South Africa and Persian Gulf services.
In Australia and Singapore services the cargo volume showed steady, so did the freight rate, where the slot utilization for most voyages averaged about 90%. With the huge capacity and the limited cargo resources mostly emerging on the service over the past year, the surplus capacity seems hopeless to alleviate, so people are cautious about next year. Recently, members of the Asia Australia Discussion Agreement announced to gradually cut the capacity on the Far East/Australia service since the end of January to June. Such extensive and durative adjustment may widely influent next year’s market, as some carriers had declared to uplift the freight rate at January 15th by about USD 250/TEU.
On Japan service, the cargo volume were perceived obviously sluggish, for the figure shrunk by 30% from last week and the slot utilization saw no more than 50%. On December 31st, the freight index of the Japan service issued by SSE reported 739.38 points.
(CCFI Commentary in Issue 02, 2011)
This week, the demand of China’s containerized transport market saw upward, as the strong shipment on the Europe and America services curbed the slumping freight rate. On 2010 December 31st, the China Containerized Freight Index issued by Shanghai Shipping Exchange reported 1053.93 points, almost no change with last week; while the Shanghai Containerized Freight Index reported 1122.68 points, with an week-on-week increase of 3.7%.
Europe service entered its annual final stage this week, where the cargo volume sharply raised, pushing the slot utilization to 100%; whereas Mediterranean service was relatively weaker than the Europe service as the growth of the shipment exporting to North Africa showed lackluster, but still the cargo volume kept the rising trajectory with the slot utilization having climbed to 95%. Some of the carriers managed to restore the freight rate on January 1st 2011, bounding up the price of slot reservation for the first time after the 10 Q4. On December 31st, the freight rates (ocean freight plus surcharges) for the voyages from Shanghai to base ports in Europe and Mediterranean services nailed at USD 1401/TEU and USD 1250/TEU, respectively up 4.4% and 1.2%.
In North America service, the cargo volume kept the mounting momentum and sustained the slot utilization to above 95%. Considering the growing cargo volume, carriers were poised to upraise the freight rate, and some of them had already done that. On 2010 December 31st, the freight rates (ocean freight plus surcharges) for the voyages from Shanghai to base ports in US east coast and US west coast quoted USD 1962/FEU and USD 3169/FEU, both of which increased more than USD 100/FEU. Seasonal factors substantially boosted the demand of the capacity. The indices, however, which demonstrate the US economic consuming power was quite mixed, with the December retail sales increased and consumer confidence index dropped compared to the previous month. As a result, the short-term market on the North America service remains unclear. Besides, it was rumored that carriers drastically diverged about the range of the peak season surcharge, ranging from USD 200/FEU ~ USD 400/TEU. Moreover, some of them probably delay the PPS to 2011 January 15th.
The prevailing rate restoration on the main west-east services like Europe and Mediterranean had encouraged most carriers on other services to follow the step, where several liner operators announced to hike the rate with various degrees in January on West Africa, South Africa and Persian Gulf services.
In Australia and Singapore services the cargo volume showed steady, so did the freight rate, where the slot utilization for most voyages averaged about 90%. With the huge capacity and the limited cargo resources mostly emerging on the service over the past year, the surplus capacity seems hopeless to alleviate, so people are cautious about next year. Recently, members of the Asia Australia Discussion Agreement announced to gradually cut the capacity on the Far East/Australia service since the end of January to June. Such extensive and durative adjustment may widely influent next year’s market, as some carriers had declared to uplift the freight rate at January 15th by about USD 250/TEU.
On Japan service, the cargo volume were perceived obviously sluggish, for the figure shrunk by 30% from last week and the slot utilization saw no more than 50%. On December 31st, the freight index of the Japan service issued by SSE reported 739.38 points.
lunes, 17 de enero de 2011
European container import volumes up 15.4pc in 2010
EUROPEAN container volumes strengthened last year with January to November imports up 15.4 per cent over 2009, while exports rose 10.3 per cent.
Container Trade Statistics (CTS) data showed that exports from Europe to Asia increased 3.6 per cent to 463,600 TEU in November, up from 447,600 TEU in October, reported London's International Freighting Weekly. European imports from Asia in November totalled 1.1 million TEU, up one per cent on October.
But exports from north Europe to Asia declined in November for a third month, and were 12.5 per cent down on August's peak for 2010, said the report, adding that rates on the trade continued to soften in November, for a fourth month.
NNNN
Container Trade Statistics (CTS) data showed that exports from Europe to Asia increased 3.6 per cent to 463,600 TEU in November, up from 447,600 TEU in October, reported London's International Freighting Weekly. European imports from Asia in November totalled 1.1 million TEU, up one per cent on October.
But exports from north Europe to Asia declined in November for a third month, and were 12.5 per cent down on August's peak for 2010, said the report, adding that rates on the trade continued to soften in November, for a fourth month.
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martes, 11 de enero de 2011
Freight Rates Tumbling
1/10/11 Freight Rates Tumbling as 35-Mile Line of Ships Sails Even at an average of $22,000, ship owners should be able to make money, with average daily expenses last year of about $15,000 for costs including crew and depreciation, Clarkson estimates. While the figure doesn’t include payments on loans, interest rates for many companies have dropped since the Federal Reserve cut its benchmark interest rate to near zero in December 2008 and kept it there since.
Bloomberg
Bloomberg
miércoles, 5 de enero de 2011
ASIA- WEST COAST SOUTH AMERICA FREIGHT CONFERENCE
BUNKER SURCHARGE (BS)
Further to our announcement dated November 24, 2010, it is noted that the following BSs apply effective January 15, 2011 as follows:-
January 15, 2011 December 15, 2010
WCSA/WCCA USD774TEU USD738TEU
Mexico USD548/TEU USD522/TEU
The foregoing adjustment will be done by individual Members at their discretions on voluntary and non-binding basis.
December 24, 2010. Secretary.
Further to our announcement dated November 24, 2010, it is noted that the following BSs apply effective January 15, 2011 as follows:-
January 15, 2011 December 15, 2010
WCSA/WCCA USD774TEU USD738TEU
Mexico USD548/TEU USD522/TEU
The foregoing adjustment will be done by individual Members at their discretions on voluntary and non-binding basis.
December 24, 2010. Secretary.
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