Did You Know That..

…Hapag-Lloyd hikes full-year guidance, sees ‘steep increase in spot rates’. Rates in 1Q24 jumped 14% versus 4Q23 and have spiked again in 2Q24. Hapag-Lloyd reports a strong pick up in demand for Asian exports to Europe and the US in recent weeks. But chief executive Rolf Habben Jansen says it’s too early to tell how long the surprise rebound in spot rates will last.

…Also Bullish box signals from CMA CGM:  back in black, spot indices add to gains. CMA CGM shipping revenue per feu up 17% in 1Q24 versus 4Q23. As the French container line company reports a return to profitability in its first quarter, spot rates in the second quarter are strengthening further. The Shanghai Containerised Freight Index has hit its highest point since September 2022.

…Here’s the weekly market update from Steven Yuan of FS International Shanghai: The market situation this week can be described as chaotic, with carriers resorting to unconventional methods to further drive up prices. More and more shipping companies are arbitrarily canceling confirmed slots, forcing customers to book at higher prices. In the current chaotic market, carriers no longer care about maintaining integrity, and their sole purpose is to charge higher freight rates. Starting from week 22, the market FAK  rate has already reached around USD 6000/40HQ
 

…In addition to this, we share the comment by ms. Lisa Hughes, responsible for westbound Asia-Europe procurement in the Jordex Group The Netherlands: “MSC reintroduced the Diamond Tier contract ( replacing any other FAK ) effective from 14.05, which saw rates rise from USD 6540 until 31.05 to USD 7540 from 01.06 to 14.06, with a cancellation fee of USD 1000 applicable. Hapag has offered levels of USD 6900 / HC for the latter half of June and YML USD 6500 for the start.  YML advise that space is available on such a rate, but that yet remains to be determined.”

…Maersk announced new FAK rates w.e.f. 17th of June: USD 6500 per 40ft HC, valid until further notice, not beyond 31-12-2024. Remark from Lisa: “There is now an unofficial speculation on the trade that Maersk will increase the PSS from USD 1500 / FFE to USD 2000 / FFE from 01st June. To be continued for sure.”

…Futures market bets on Asia-Europe rates staying high till October. Shippers and box lines expect Asia-North Europe freight rates to stay elevated until at least October, as the traditional Q3 peak season approaches, indicated by high trading volume of China’s container shipping futures (CoFIF).
 

…Positive trends in container traffic. The port of Hamburg witnessed positive trends in Q1/2024, with container throughput increasing by 1.1% to 1.9 million teu despite challenging geopolitical and economic conditions.
 

…As reported by our member Janel group in the USA, the Port of Portland has decided to cease container shipping operations at Terminal 6 by October 1, 2024, following over $30 million in financial losses over the past three years. This closure will affect hundreds of jobs and businesses across Oregon, Washington, and Idaho, as they will need to reroute their shipping through other West Coast ports like Tacoma and Seattle. The ripple effects of this closure on businesses, jobs, and the regional economy are expected to be significant, underscoring the importance of continued investment and collaboration among state authorities and industry stakeholders.

Moving forward, the Port of Portland remains committed to exploring future options for container shipping within the state. However, the immediate impact will be a shift in freight movement into the Pacific Southwest (PSW) region, with an increase in trucking and train traffic expected. This could lead to concerns about congestion and environmental impact. The closure also marks a blow to the region's economy and makes Portland the largest city on the West Coast without close proximity to container service. Efforts to find a third-party operator to manage the terminal were unsuccessful, and ongoing labor disputes and inadequate state support contributed to the port's leadership deciding to cease container shipping operations. The Port of Portland recognizes the broader impact of this decision and calls for continued dialogue and investment to establish a financially sustainable model for container shipping in Oregon. Full details you can read on this site: https://nwlaborpress.org/2024/05/port-of-portland-to-close-its-container-terminal/.

…Our long time valued member Jordex Global in the UAE  is proud to share with you that they have established their own Customs Clearance Department. Attached find the announcement. For questions and inquiries you may contact Jordex Global Customs Clearance’s new colleague mr. Jomon George at jomon.george@jordexglobal.ae.

…The ports of Barcelona and Shanghai have signed an agreement to collaborate on innovation and decarbonisation projects, aimed at enhancing services and logistics chain resilience between China and Europe.

…Relations between Flexport and customer Giti Tires have reached an all-time low.  Earlier this month Flexport filed a $12.3m lawsuit against the shipper, claiming it refused to pay detention and demurrage charges between 2021 and 2023. Now Giti has fought back, claiming to the FMC that Flexport “wrongfully and unreasonably required Giti to pay millions of dollars in unreasonable demurrage and detention charges, as well as millions of dollars of other accessorial charges at unreasonable rates”.

…Equipment shortages continue to persist among major carriers, adding to supply chain strain. Mounting container shortages creating 'total havoc'. Containers out of northern China are becoming increasingly hard to get hold of, report forwarders. A surprisingly strong market, plus lower vessel capacity due to the Red Sea crisis, is creating a shortage of both ships and containers.

…Our esteemed member TLSC in the Baltic States announced Glad to share, that their group company GEN CARGO JSC became official agent of container line REEL SHIPPING in Lithuania, https://reelshipping.com/. 

They added that this is not a very big carrier, but have niche services from Klaipeda and Riga ports  to North Africa, Middle East, Turkey India, FE ports.  

TLSC has more than enough empty 20’dc and 40’hc containers in Klaipeda. First vessel with loaded containers – planned on Week 22-23, most probably between June 1-2.

Gen cargo JSC will start with very aggressive pricing, so this is a unique opportunity to the EAA Network members to offer to Lithuania / Latvia producers. Today most competitive prices are offered to Middle East ports (UAE, Saudi Arabia, Oman), India, China, Vietnam ports.  For inquiries or information you can apply to mr. Andrius Karnašnikovas at  sales1@tlsc.lt.   

…More women in the shipping industry. On 18 May 2024, the third International Day for Women in Maritime was celebrated to promote female employment and address gender imbalances in the sector. Initiated by the International Maritime Organization, this day highlights progress and ongoing efforts.
 
…DP World expands hub infrastructure in Romania. With the opening of three facilities on one day last Wednesday (15 May 2024), the port and terminal operator improves the links between its existing sea, rail, barge, and truck services in Romania, boosting the movement of goods between mainland Europe to the Black, North and Adriatic Seas.

…Houthis yet to make good on latest round of threats. Threat has not changed and the Red Sea is the busiest it’s been in months. The attack on MSC Orion in the Indian Ocean sparked concerns the Houthis would hit ships further afield, but so far they have not managed this.

…China and Russia to team up on Arctic shipping. Two countries pledge to make the northern sea route an international transport corridor. Arctic trade was included in a joint statement during during Vladimir Putin’s visit to Beijing. There is now an argument that the sanctions against Russia have cultivated closer ties in the Arctic between Russia and non-regional players, including China.

…Gothenburg links up with green corridor. “Laura Maersk”, the world's first methanol-powered container ship, has begun a weekly service between Bremerhaven and the port of Gothenburg. The new offer supports lower-emission ocean transport and helps customers reduce their supply chain greenhouse gas footprint.
 

Wishing you all a great rest of the week ahead!