…Pace of Container Spot Rate Decline is Key Variable in Liner Profit Equation

• SCFI and WCI indexes are down from July, but the fall has been gradual.
• All eyes are on the rate of change in spot container freight rates.
• How the pace of this decline evolves in the coming months will affect carriers’ fourth-quarter spot business revenue as well as the negotiating landscape for 2025 Asia-Europe contract rates.

…Hapag-Lloyd Sees Stronger Third Quarter and Warns on US Port Strike Risk

• May-June surge could be partly related to frontloading driven by strike risk.
• In one scenario, carriers could see rates sink in the fourth quarter as peak season ends.
• In another, a crippling strike at US east and Gulf coast ports may lead to another big supply chain disruption, which could boost spot rates again.

…Congestion 'Rearing its Disruptive and Costly Head' as Canada Rail Strike Looms

• More embargoes have been announced for Canada’s rail network as stakeholders brace for strikes on Thursday and the wide-spread repercussions.
• After multiple rounds of negotiations between the TCRC union and its rail-operating employers Canadian National (CN) and Canadian Pacific Kansas City (CPKC) failed, the union issued a notice to strike on 22 August at 12:01am ET.
• Yesterday, German carrier Hapag-Lloyd notified customers that from Thursday, it would embargo “all commodities originating in Canada, all commodities originating in the US destined for Canada and all carload traffic destined for Canadian interchange”.

…Taiwan’s Top Three Carriers Post Record First-Half Profits

• Evergreen and Yang Ming reported a threefold and sixfold year-on-year growth in profits respectively, while Wan Hai turned a loss from the previous year into a profit.
• Yang Ming and Wan Hai will upgrade their fleets with vessel purchases.
• Elsewhere, Evergreen plans to lease containers.

…HMM Thrives in First Half of Year, Racking Up 88% Net Profit Growth

• South Korean shipping line attributes its significant earnings growth to soaring freight rates.
• HMM plans for global service network improvement, preparing for market fluctuations.

…A Report by Our Friends from JANEL Group in the USA: Ocean Freight Market

• With new capacity in the market, carriers have continued efforts to control space, with over 29% of the total capacity suspended in blanked sailings during the first weeks of August.
• Carriers have surprised the market with a mid-month General Rate Increase (GRI). However, it is not clear if this is sustainable or the start of shippers front running the Christmas and Chinese New Year holiday volume.
• These efforts have been supported by increased retail inventory demands in addition to looming strike threats in both Canada and the USA.

…AD Ports Invests in Tbilisi Dry Port

• The group has acquired a 60% majority stake in the intermodal logistics hub in Georgia.
• The rail-linked facility is scheduled to become operational by October 2024.
• The new hub is strategically positioned between the Caspian Sea and Black Sea.

…Ukrainian Counter Invasion Adds to Pressure on Russian Rail Freight Services

• Ukraine’s unexpected counter invasion has put further strain on Russia’s rail freight sector, which continues to lose ground as European shippers seek alternative capacity for Chinese exports.
• Russian Railways (RZD) is now reportedly rejecting freight services from Belarus, after an influx of Russian soldiers by train into Kursk – part of which has been occupied by Ukrainian forces – led to congestion on tracks and overcrowding at stations.

…China-to-Europe Railfreight Rates Soaring as Operators Develop Red Sea Alternatives

• China-Europe rail freight volumes are continuing 2023’s upward trajectory, recording an 11% year-on-year bounce in the first six months of this year, with some 1.23m TEU moved.

…Port of LA Sees ‘Blockbuster’ Cargo Volumes as Container Dwell Time Grows

• Largest US port reports busiest July on record.
• The port of Los Angeles has been sustaining strong volumes in recent months, leading to an increase in dwell time for containers.
• However, Chief Executive Gene Seroka says there is ‘no cause for alarm’.

…CMA CGM Vessel Loses 99 Boxes off South African Coast

• Containership was transiting the Cape of Good Hope when bad weather forced it to port in South Africa.
• A second CMA CGM vessel has lost containers when transiting in the region, after CMA CGM Benjamin Franklin lost 44 boxes in July.

…Cargo Backlog at Bangladesh Eases as Carriers Bring in More Ships

• Container lines serving strained Bangladesh supply chains are making every effort to clear up the cargo backlogs at Chittagong Port.
• The cargo chaos began amid recent political upheaval that brought businesses across the country to a standstill.

…Saudia Cargo Unveils Campaign "Landing in China in 24"

• The campaign aims to underscore the carrier's commitment to empowering Saudi exports and ensuring they gain a strong foothold in China, Saudi Arabia's main trading partner with 17% of total exports.
• The campaign is aligned with Saudi Arabia’s "Vision 2030", which emphasizes the growth of non-oil exports and the diversification of the kingdom's revenue streams.

…Oil Demand Increases in Second Quarter, but Global Economic Concerns Loom

• Demand increased by 870,000 barrels per day, year on year, in the second quarter of 2024, but not at the same pace as 2023.
• Worries about the health of China’s economy remain after slower-than-expected growth in 2Q24, heightened by employment and consumer confidence data published in the US.

…Panama Canal on Track for Full Recovery as Transit Rebound Continues

• Gatun Lake water levels are much closer to pre-drought ‘normal’ than peak-drought low.
• More containerships transited the Neopanamax locks in July than before transit restrictions were enacted in November.
• In the smaller Panamax locks, the all-important dry bulk business is steadily rebounding ahead of the US grain export season.

…Walmart Launches Ocean Shipping Service

• US commercial giant will ship customers’ goods from Chinese ports to addresses in the US.
• Senior Director of Walmart’s Global Inbound Program says a pilot run by the company ‘exceeded expectations’ in terms of volume.

…Chevron Relocates Headquarters to Texas

• Chevron said it was moving out of California, its home for 145 years, and relocating its headquarters to Texas.
• The oil giant has faced an increasing number of lawsuits in California from climate-change activists over its business.

…Glencore Decides Not to Spin Off its Coalmining Assets

• After shareholders said they would rather keep the highly profitable business, Glencore decided not to spin off its coalmining assets.
• Sentiment has drifted away from high-minded ESG goals and towards bottom-line profits at other energy-related companies too.

…Saudi Aramco Announces Shareholder Dividend

• Saudi Aramco announced that its shareholder dividend this year would top $124bn.
• Amin Nasser, the chief executive of the world’s biggest oil company, said markets were “largely ignoring” the continuing demand for oil.

…Australia’s Biggest Wine Producer, Treasury Wine Estates, Sells Off Cheaper Brands

• Treasury Wine Estates is selling off its cheaper brands, such as Blossom Hill and Wolf Blass, to focus on higher-priced wine.
• Consumers are drinking less wine, apparently, but spending more per bottle.

…Our Web Administrator is Uploading the DYKT to the Website Every Week

• For easier reading convenience, anytime you want to get the industry updates, visit www.eaanetwork.com.

…The Siesta is Still a Serious Business in Europe’s South

• In countries from Spain through France and Italy all the way to Greece, the workday is very different from the northern European and American one.
• After lunch comes the long break that divides the day in two. Some sleep, others merely read the paper or visit friends.
• Only late in the afternoon do the shutters rise again; refreshed by their breaks, owners of even small businesses may stay behind their counters until nine, refreshed by their riposino, messimeri, or siesta.