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Thursday, July 2, 2020

Far East News

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Geopolitics Dominate the Oil Tanker Market -BIMCO

Developments in the oil tanker market in the past decade dominated by geopolitics, says shipping association BIMCO.Crude oil and product tanker markets alike have faced high volatility in recent weeks and months, largely due to geopolitics and the constantly evolving situation in the global oil markets. The first major disturbance since the fall in the oil price between the fourth quarter of 2104 and first quarter of 2016 came in the fourth quarter of 2019, after which freight rates have bounced back despite a collapse in demand.In these extraordinary times…

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Container Shipping Hit Hard by US Lockdown -BIMCO

The coronavirus pandemic has shutdown much of the U.S. economy for months and even as parts of it reopen, the data is beginning to reveal the extent of the damage that has been done and a slow recovery is taking a tentative shape.The second estimate for gross domestic product (GDP) in the first quarter shows a 5% contraction from the previous quarter, and just 0.2% growth from the first quarter of 2019. With lockdown measures having only come into force in late March, the second quarter of the year will prove even more damaging for the U.S.

HMM Algeciras made its first European stop in the Port of Rotterdam this week. (Photo: Port of Rotterdam)

World's Largest Containership Makes Its First Call in Europe

The world's largest containership HMM Algeciras made its first European port call this week, entering Rotterdam’s Amaliahaven Wednesday on its maiden voyage to transfer containers at the Rotterdam World Gateway (RWG) terminal.The most recent vessel to hold the world’s largest containership crown, HMM Algeciras at maximum capacity carries slightly more 20-foot containers than its predecessor MSC Gülsün: 23,964 TEU versus 23,756 TEU. During its maiden voyage, HMM Algeciras is carrying a total of 19…

HMM Algeciras sails through the Suez Canal on its maiden voyage (Photo: Suez Canal Authority)

World's Largest Containership Sails Through the Suez Canal

The world's largest containership, HMM Algeciras, passed through the Suez Canal on Monday as the record-setting 24,000 TEU class vessel makes its maiden voyage from Asia to Europe.Built at Daewoo Shipbuilding & Marine Engineering’s (DMSE) Okpo shipyard in Geoje, South Korea, the 399.9-meter HMM Algeciras has a capacity of 23,964 TEU and is the first of 12 vessels of the same class, design and size contracted to be built by DSME and Samsung Heavy Industries (SHI).Delivered in April…

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China to Europe Container Spot Rates in Rare Reversal -BIMCO

Throughout April, container shipping spot freight rates on the back-haul trade from North Europe to China were higher than those on the front-haul trade from China to North Europe. This is a rare occurrence that has developed in the wake of the massive supply chain disruptions in the world’s top manufacturing hub due to the COVID-19 outbreak, causing aftershocks across the Far East.“A reversal of front-haul and back-haul spot freight rates is a rare event. Especially on a high-volume main trade route like the Far East to Europe…

HMM Algeciras (Photo: HMM)

World's Largest Containership HMM Algeciras Launched

South Korean ocean carrier HMM held a naming ceremony for the newly constructed 24,000 TEU-class containership HMM Algeciras, the world’s largest containership, at the Daewoo Shipbuilding & Marine Engineering’s (DMSE) Okpo shipyard in Geoje, Korea.The 399.9-meter HMM Algeciras is the first of a dozen 24,000 TEU-class vessels scheduled to be delivered this year, and takes the "world's largest" title from the 23,656 TEU Gülsün-Class ships owned by Mediterranean Shipping Co (MSC).In September 2018…

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Container Shipping Capacity Down 11% in April -eeSea

A total of 302 of 2,693 containership sailings, or 11%, have been canceled in May on all the main line trades, according to the latest data from maritime intelligence company eeSea, revealing the extent of the impact of COVID-19 on global shipping.In the first six months of 2020, a total of 1,675 sailings have been canceled, or 11%; which comes out at 13% for 2M, 17% for Ocean Alliance and 17% for THE Alliance, while only 8% of non-alliance sailings have been canceled.However, the number of sailings alone only tells part of the story.

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Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market

The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged, however: Brent crude gained 1.5% on Monday, while U.S.

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Coronavirus Disrupts Supply of Ships and Demand -BIMCO

The coronavirus outbreak has affected all aspects of the shipping industry, lowering, if not wiping out, demand growth prospects for the year across all segments. The outbreak has also affected fleet development, says shipping association BIMCO.Contracting activity has fallen, demolition activity, which had been high, is now being limited by restrictions around the world and deliveries of new vessels are delayed.“The coronavirus has certainty replaced the IMO 2020 sulphur regulation as the talking point of the year.

MSC Federica (Photo courtesy of Peel Ports)

Peel Ports Marks Record Container Volume From Single Vessel

The Port of Liverpool’s deep-water container terminal has broken a new terminal record after the MSC Federica docked and exchanged 5,452 TEUs.The vessel is part of MSC’s Turkey Canada service which has seen remarkable success and includes calls at Montreal, Liverpool, Sines, Valencia, Barcelona and Tekirdağ amongst other terminals. This service directly links Liverpool to the Far East.Its arrival signifies the current strength of Liverpool on the global trading stage. In 2016 owner Peel Ports invested $494m into the container terminal…

Patrik Berglund (Photo: Xeneta)

Contracted Rates to Fall Long-term Due to Conoravirus -Xeneta

The container shipping segment appears to have caught coronavirus, with the industry suffering its first monthly fall in long-term contracted ocean freight rates since October 2019. According to the latest XSI Public Indices report from Xeneta, March 2020 saw a small dip of 0.5% in rates after a sustained period of growth. Although these symptoms look mild, the future is characterized by growing uncertainty, with widespread economic disruption and looming global recession likely…

Image: APM Terminals

Vado Gateway Welcomes First Ship

APM Terminals said that its new deep-sea container terminal, Vado Gateway terminal, located in Vado Ligure, Italy, received its first commercial service on 11 February 2020.The ship, M/V Maersk Kota, was the first of seven ships from Maersk’s weekly ME2 service, connecting the Mediterranean with the Middle East and India.According to a company release, the call by M/V Maersk Kota marked the start of operations for the new deep-sea Vado Gateway container terminal in northern Italy.With a total investment of 450 million euros…

Image: Port NOLA

Port NOLA Sets New Box Record

Louisiana’s only international container port Port of New Orleans (Port NOLA) moved more containers in 2019 than at any time in its history, totaling 648,538 twenty-foot equivalent units (TEUs), up 10% compared to one year ago.The multimodal gateway for global trade said in a press release that the record marks the sixth consecutive year the Port surpassed the half million TEU-mark at its Napoleon Avenue Container Terminal, which is operated by New Orleans Terminal and Ports America.“Port NOLA has now seen double-digit growth in total container volumes for two consecutive years…

Patrik Berglund (Photo: Xeneta)

Xeneta's Year Ends High, Concerns Remain

Xeneta has ended 2019 with a second month of increases in long-term contracted ocean freight rates across key trading routes.According to the latest XSI Public Indices report from Xeneta  global rates climbed by 0.9% in December (adding to a 0.9% rise in November). However, despite the welcome upswing, after well over a year of steady decline (with the exception of a spike in May), market confusion concerning IMO 2020 sulphur surcharges still remain.Moving in the right directionXeneta’s XSI Public Indices report utilizes over 160 million data points…

Source: BIMCO, Clarksons, IMF

BIMCO: Supply & Demand Trending Off-Balance

One of the most worrying trends that has developed recently - which will affect shipping demand in the years to come - is the falling trade-to-GDP ratio. The falling ratio can be explained by slowing globaliztation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.The trade war is the clearest example of these extra barriers to trade…

Image: SAL Heavy Lift

Three More Vessels Join SAL Heavy Lift

SAL Heavy Lift, a carrier specializing in sea transport of heavy lift and project cargo,  announced that it will expand its fleet with three heavy lift vessels with 800t lifting capacity in early 2020.The three vessels - “MV Hanna”, “MV Klara” and “MV Lisa” - will come to serve breakbulk and heavy lift clients on world markets via SALs well known Semi-Liner Service, but will also potentially offer new service options.When the new year 2020 dawns, SAL will see its fleet expanding…

Image: Royal Boskalis Westminster

Boskalis Completes Horizon Acquisition

Dutch dredging and heavylift company Royal Boskalis Westminster has acquired the remaining 37.5% in the United Arab Emirates’s Horizon Group, a company specializing in the provision of marine geophysical surveys and geotechnical services.Earlier this year, Boskalis already acquired 62.5% of the shares. The 2019 revenue is expected to exceed USD 100 million and the activities will be consolidated as of 2020.Following this transaction, Boskalis will be able to optimize its successful…

Source: BIMCO, WTO

BIMCO: Tanker Shipping and Macroeconomics Outlook

World growth and trade volumes under pressure, but still positive. A continued slowdown in global growth, as well as a lower trade multiplier will reduce overall demand for shipping for the rest of this year and through 2020.Expectations for global trade growth have also been lowered for 2020; this is now forecast at 2.7%, down from 3%. The WTO cautions that risks to these forecasts are weighted to the downside, with these risks including a potential deepening of trade tensions…

Photo: Cosco Shipping Group

Cosco Acquires Stake in Greek Intermodal Firm

OceanRail Logistics, part of the Cosco Shipping Group, acquired 60% of the Greek railway company Piraeus Europe Asia Rail Logistics (PEARL) as part of its plan to develop its intermodal transport services network.OceanRail specializes in sea-rail intermodal transport with the Piraeus Port as the hub and related logistics business, while PEARL is a Greece-based company engaged in railway operations.The China-Europe Land-Sea Express Line, which starts from the Piraeus Port in Greece and expands to the hinterland of Central and Eastern Europe…

Pic: TORM

Product Tanker Freight Rates Rebounds

Product tanker freight rates softened in the third quarter of 2019 but rebounded strongly at the start of the fourth quarter following an increase in crude tanker rates that began after the attacks on Saudi Arabian oil facilities and accelerated dramatically to multi-year high levels at the end of September when the US imposed sanctions on two subsidiaries of China's COSCO Shipping.Denmark-based TORM said that growth in global demand for oil products generally remained subdued…

Patrik Berglund, CEO & Co-founder. Photo: Xeneta

Xeneta Expects Further Disruption in Container Rates

Further disruption in ocean freight rates expected despite best efforts from leading carriers, according to Xeneta Container Rates Alert.Long-term contracted ocean freight rates for carriers continued their downward trend through the month of October, it pointed out.The latest freight data from the XSI Public Indices report from Xeneta shows a continued drop in contracted freight rates as the industry heads into the key seasonal months.Rates on a number of key routes have continued a steady downward slide since early summer but have yet to fall below the levels seen one year ago…

Kimberly Oropesa (Photo: ShipMoney)

ShipMoney Expands in the Far East

Specialized global maritime payments provider ShipMoney continues to expand its presence in the Far East with a new appointment in The Philippines.The company has hired Kimberly Oropesa to join its team in Manila. Kimberly has worked in sales and marketing since graduating in 2013. For the past three years she has worked in the maritime sector and was the Soroptimist International Women’s Opportunity Awardee in 2013 for being an inspiration to her fellow women. Kimberly will be…

Caption: Accumulated container volumes on the Far East – Europe trade lane are up 4.6% y-o-y. The CCFI has fallen to an index level of 987, down -9% from the same period last year. 2 (Chart: BIMCO)

BIMCO’s Sand to Offer Boxship Insight in Athens

BIMCO’s Chief Shipping Analyst, Peter Sand, will be speaking and providing the audience with unique insights on the container market at the European Shipping Seminar on November 27, 2019 in Athens, Greece.The European Shipping Seminar, hosted by S&P Global Platts, will discuss the various topics relating to the commercial shipping markets and take a deep dive into how the shipping industry will navigate its way through the uncertain environment of the IMO 2020 Sulphur Cap.Container shipping outlookBIMCO has persistently stressed that trade wars and protectionism are negative for shipping.

Edoardo Podestá (Photo: Dachser)

Podestá Named COO of Dachser Air & Sea Logistics

Dachser appoints Edoardo Podestá as the Chief Operations Officer (COO) of the Air & Sea Logistics business field. Podestá replaces Jochen Müller in this position.Dachser and the current COO Air & Sea Logistics, Jochen Müller, have mutually agreed not to extend his contract when it expires in 2020. Jochen Müller will stop working for Dachser with immediate effect.In recent years, Jochen Müller was responsible for developing the air and sea freight business into a network company with operations worldwide…

Graph: Photo, CTS

BIMCO: Fleet Growth, Ship Size Up

Global growth in container volumes has picked up slightly in the second quarter of the year, with growth in the first seven months reaching 1.2%, compared to the just 0.8% in the first quarter.Global growth in container volumes has picked up slightly in the second quarter of the year, with growth in the first seven months reaching 1.2%, compared to the just 0.8% in the first quarter. Despite this rise, the growth figure remains substantially below what the industry has been used to…

Pic: Port of New Orleans

Port NOLA President Says Volume is Booming

Port of New Orleans (Port NOLA) President and CEO, and New Orleans Public Belt Railroad Corporation (NOPB) CEO Brandy D. Christian highlighted record volumes and bold vision for the future in the 2019 State of the Port address.Christian outlined key short- and long-term strategies to capitalize on current momentum and to create opportunities in the future. In the address titled “Opportunity Calls, We Answer,” Christian attributed the successes to collaboration and partnerships…