…China and Russia have chilling plans for the Arctic. The two autocracies dream of creating a “polar silk road”. Four hundred kilometres north of the Arctic Circle, in the Norwegian port of Kirkenes, there are still some who dream that this sleepy town will one day become an important shipping hub. They see it as the western end of a new, faster sea route from China to Europe, made possible by the impact of global warming on ice-filled waters off the Siberian coast.

…Container demand spike could stretch through to the third quarter. The unexpected early peak season could be due to more than just front loading. There have been concerns that the recent rise in demand and rates could fade. But even with inventories remaining largely stable, the market may remain strong into the traditional peak season.

…MOL to acquire majority stake in Gearbulk. On 25 June, Mitsui O.S.K. Lines (MOL) announced its decision to reorganize its equity-method affiliate, Gearbulk Holding, by acquiring a 72% stake and making it a consolidated subsidiary by January 2025.

…Türkiye’s container transhipments up sharply amid EU carbon leakage concerns. EU, China, and Russia transhipments are responsible for most of the rise in January to May. Turkish ports are unlikely to be included in the EU ETS despite rising transit traffic, as none of the terminals are eligible for the EU ETS’ neighboring transhipment hub criteria.

…Maersk sets new chartering record with deal for $150,000 a day. As liner operators become desperate for ships, charter rates have hit the $150,000/day mark. Maersk Line has agreed to pay this to charter Taiwanese regional carrier TS Lines’ 7,000 TEU newbuilding Kota Valparaiso for three months.

…Shanghai Pudong Airport to open courier terminal. The logistics provider Time Matters is opening a courier terminal at Shanghai Pudong Airport for handling courier and express airfreight shipments.

…Here’s the weekly market update from FS Shanghai, reported by our friend Steven Yuan.

Shanghai Containerized Freight Index (SCFI)
Source: Shanghai Shipping Exchange
The SCFI composite index rose by 6.10% to 3379.22, with the following specific route data:

Europe and Mediterranean routes: The tight capacity situation continues on Europe and Mediterranean routes, and shipping companies are further increasing the freight rates for sailings in the latter part of the month. The European route freight index increased by 7.8% compared to last week; the East Mediterranean route freight index increased by 1.3% compared to last week; the West Mediterranean route freight index increased by 4.4% compared to last week.

North America routes: Overall transportation demand is rising, and capacity remains tight on North America routes, leading shipping companies to further increase the freight rates for sailings after the 15th of the month. The East Coast of North America route freight index increased by 13.0% compared to last week; the West Coast of North America route freight index increased by 15.1% compared to last week.

Middle East routes: The capacity tightening measures by shipping companies have slowed down since the latter part of the month, leading to a slight decrease in freight rates. The Middle East route index decreased by 2.4% compared to last week.

East Africa routes: Capacity on this route has become significantly more ample than before, and shipping companies have continued to lower freight rates to maintain load factors. This week, the East Africa route freight rates continued to decline from their high levels. The East Africa route freight index decreased by 15.5% compared to last week.

Some shipping companies have already announced the freight rates for July, with FAK prices expected to be in the range of USD 8500-9000 per 40'/40HQ.

…Influx of capacity fails to slow momentum of Asia-Mexico box rate surge. Box carriers are adding new transpacific services to the west coast of Mexico, but rising capacity on the tradelane has not halted the surge in pricing. MSC, CMA CGM, and Cosco have all introduced more transpacific services, but so far, increasing capacity has failed to make a dent in the upward momentum of Asia to Mexico rates.

…Trains fail to take the strain amid delay pain. Land transport lacks the speed of air and the lower price of ocean transport. Geopolitical strains have brought rail back into the range of options for shippers. But the volumes and cost mean it will only ever be a niche product.

…India approves giant port project near Mumbai. Vadhavan Port will have a capacity of more than 23m TEU when completed. The joint venture project is majority-owned by Jawaharlal Nehru Port Authority and will cost nearly $10bn.

…Chongqing launches regular train to Germany. The first train with a full timetable and loaded with 55 containers of goods is now en route from China to Europe.

…Container rate strength revives Asian shipping stocks. Asia-listed shipping company valuations are regaining lost ground after a UN-Gaza truce resolution rattled investors earlier this month. Relentless rises in container freight rates have led to a resurgence in investor confidence, which has spilled over into other sectors. Major listed shipping firms in Shanghai, Hong Kong, and Seoul have seen sustained rises in their share prices this week.

…Dammam increases capacity to 3.2m TEU with new equipment. New quay cranes and rubber-tyred gantry cranes add more than half a million TEU capacity. Port operator Saudi Global Ports has committed to investing $1.8bn over its 30-year concession to develop both container terminals at King Abdulaziz Port Dammam.

…Mediterranean ports hit by multiple challenges. The Red Sea crisis is just the latest to affect ports in the Mediterranean. Volumes are growing significantly but growth is not unlimited. Ports are having to adapt to an environment in which predictability and reliability cannot be guaranteed.

…New route to connect Asia with Southeast India. MSC has launched a new weekly service, “Osprey” to connect Asia and Southeast India. Starting on 23 July with the vessel “MSC Somya”, the service aims to enhance transit times and connectivity between these regions, benefiting importers and exporters.

…Maersk and Nike to christen green-fuelled vessel. Maersk and Nike will christen one of the world’s first methanol-enabled container vessels at the Port of Los Angeles on 27 August.

…Our valued member UNISERVE Group in the UK is celebrating its 40 years anniversary. From their beginnings in 1984 to becoming the UK’s largest independently owned logistics and global management provider, the latest milestone is a testament to the Group’s commitment to delivering excellence and passion for helping our customers succeed. Uniserve deeply appreciates the unwavering support and dedication of our colleagues, customers, and partners, and has thanked their stakeholders for being an integral part of our journey over the last 40 years. Our UK member is excited as a business as to what the future holds for the Group and we’re looking forward to our fifth decade providing pioneering services and solutions for our valued customers across the globe! We will keep an eye out for future updates and features on Uniserve’s celebrations of the 40th anniversary milestone.

…Southern Europeans will soon be the longest-lived people in the world. Diet and exercise, but also urban design and social life. Among the top 20 for living to a ripe old age are rich ones like Switzerland and Singapore. East Asia is also represented by South Korea and Japan, longtime longevity leaders. The oldest person alive is a Spanish woman, Maria Branyas Morera (117), who succeeded a French one.

…The Apollo astronauts collected 382 kg of moon rock between 1969 and 1972.

Enjoy the reading and the rest of the week!