Did You Know That..

…Maersk chief doubles down on integrator strategy. Clerc asserts Maersk’s strategic direction remains the ‘right one’. Danish carrier achieved highest earnings outside the post-pandemic years in 2024. Red Sea return based on two factors. Vincent Clerc reaffirms the company’s integrated logistics blueprint, noting how developing end-to-end capabilities is more critical now than when the strategy began eight years ago.

…Maersk skips call at Rotterdam as labour issues bring delay. Labour unrest at the port of Rotterdam has exposed long-standing issues and diminishing hopes of a resolution to backlogs and congestion in the near term.Maersk told customers yesterday it would be omitting a call at the Hutchinson Port Delta II terminal on Monday, because of “unplanned strike action” at the facility.

…Chaos at Chittagong as port workers' strike creates vessel and box backlogs. Congestion at Bangladesh’s Chittagong Port is mounting, following a wave of strikes last week, with 18 containerships in a queue to berth that eis expected to take a fortnight to clear.

…Panama Canal denies special treatment of US Government vessels. This comes only days after US Secretary of State Marco Rubio said Panama should make ‘immediate changes’ to the ‘influence and control’ of China. The canal authority refuted claims by the US State Department that it would not longer charge US Government vessels to transit the canal.

…Spot rates still falling but Maersk touts ‘benign’ box shipping outlook.

·         Shanghai Containerised Freight Index drops 7%; Drewry’s World Container Index falls 3%

·         Spot indexes are showing larger declines in Asia-Europe than transpacific trades

·         Maersk is now less concerned about overcapacity and sees a path forward for the industry to absorb newbuildings and tonnage freed up by an eventual Red Sea reopening

There are a lot of negatives for container shipping: falling spot rates, looming overcapacity from the Red Sea reopening, a still very sizeable orderbook, and more tariffs. And yet, Maersk executives are sounding more optimistic than they have in the past.

…Blanked voyages fail to halt sliding spot rates, and March GRIs will be resisted. Blanked sailings and general rate increases (GRIs) have failed to arrest the drop in Asia-North Europe freight rates, with slot utilisation less than 95% amid the post-Chinese New Year slack period. On Friday, the Shanghai Containerised Freight Index showed a 16% fall (from the week prior to the holiday on 29 January) in Asia-North Europe freight rates to $1,805 per teu.

…Shanghai handled more than 5m teu in just one month.

…‘Let hell break out’: Gaza ceasefire snag looms over Red Sea return. Hamas announced an ‘indefinite’ suspension of its hostage release on Monday, prompting threats from the US president. The end of the Houthis’ Red Sea aggression has been tied to the Israel-Hamas ceasefire, the continuation of which is now in doubt.

…CMA CGM still in discussion with Syrian government on Latakia deal. French carrier has run the container terminal at Syria’s main port since 2009. Despite media reports of an agreement between the line and the transitional government, CMA CMA said discussions were ongoing.

…MSC announced a new direct container service at the Fruit Logistica trade fair in Berlin recently, offering a weekly call at the port of Sète (France). The decision follows years of market observation and discussions with key stakeholders. The presence of Primever, which specialises in perishable logistics and investments from companies like Dole, has strengthened the appeal of Sète, which offers multimodal connections.

…Cathay Cargo has transported 70 world-class horses to Hong Kong for the Longines Hong Kong International Horse Show (HKIHS), taking place from 14-16 February in the AsiaWorldExpo centre there.

…Following a report by our member Transolve in Australia, the conclusion of 2024 saw Australian wine exports increase by 34% in value to $2.55 billion and by 7% in volume to 649 million litres. This positive outcome was a result of high levels of shipments to mainland China post-tariff removal in the months April to December 2024, accounting for 83 million litres of wine, worth $902 million.

…There has been a significant rise in agricultural exports such as Australian beef, honey, sugar, and lamb exports, as well as a solid boost in two-way trade since the broad removal of tariffs under the 2023 Free Trade Agreement (FTA) between the UK and Australia.

…Wind-assisted ship propulsion gaining momentum. Econowind has sold over 100 ‘VentoFoil’ units, marking a what it called a major milestone in wind-assisted ship propulsion. The technology has been designed to cut fuel consumption, reduce CO₂ emissions, and meet tighter regulations worldwide.

…Why China presents a bigger risk to freedom of navigation than the Houthis

·         Houthi control of Red Sea raises important questions about who now has the power to assert freedom of navigation

·         China’s sustained legal and diplomatic assault on Unclos is eroding the rules-based order

·         Russia is aping China’s tactics, political moves are undermining established norms

·         The principles that enable global trade are under more pressure than at any time since the end of the Second World War

Geopolitical tensions are deepening and global maritime trade is being caught in the crossfire, both literally and figuratively. Freedom of navigation is under attack.

…Anniversary of efforts for a green shipping corridor. Viking Line, the port of Turku and the ports of Stockholm have worked together for a year now to establish a fossil-free shipping corridor between Stockholm and Turku (Finland).

…Azerbaijan opens rail line to port of Zira. A 21 km railway line that connects the Caspian Sea port of Zira with the Azeri hinterland has been reconstructed, and a new 9 km stretch built between Gurgan and the port.

…The ‘Great Red Spot’ is a cyclone on Jupiter. It blows at speeds of 400 km/h, is the largest storm in our solar system and has been raging without interruption since at least the 17th century.

Wishing you all a fruitful rest of the week !