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.
viernes, 18 de marzo de 2011
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.
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