Weekly Shipping Insights from Shipwaves — Issue 2 (16 March 2017)
A maritime news and analysis weekly, to help you make informed decisions in the weeks ahead. Over 1000 senior executives and officials from the Export, Import, Trading House and Manufacturing industries benefit from the insights provided by shipwaves.com
What is happening this week?
India Market watch
- Jeddah port is reported to be congested and most of the carriers have stopped taking fresh bookings due to non availability of containers and delay in clearance from port. King Abdullah Port, which is the new port, has come up as an alternative to Jeddah old port. Selected lines like MSC is operating from this new port.
Tip: Shipwaves can help movement of cargo to Jeddah port.
- Container shipping liner Maersk has delivered the first batch of containers at Vizag port for onward connection to Nepal. Maersk is the first liner to offer the aggregation services as part of marketing strategy for Vizag. Container Corporation of India (Concor) has already offered lucrative terms for transfering the cargo by rail from Vizag to Nepal.
Tip: Since Kolkatta port is congested, Shipwaves advises to use Vizag port for import cargo to Nepal.
- Many carriers from India are planning to implement a new GRI from end of March for the various destinations. It will introduce a substantial hike in the freight rates by end of March.
Tip: Shipwaves advises you plan your fresh bookings before the proposed hike.
Container Freight Pulse
- Spot freight Rates Soar on Backhaul North Europe to Asia resulting in an increase in container freight rates from North Europe to China/Asia by 45% this week, reaching a four-year high. Freight rates from Rotterdam to Shanghai jumped to $1,076 per 40ft dry container today, from $740 last week. Ships are currently full and carriers have demanded much higher rates — only some prior rate agreements remain in place. The sailings cancelled by carriers in China due to Chinese New Year contribute to the capacity crunch which has now reached Europe. Spot freight Rates Soar on Backhaul North Europe to Asia Route
- The World Bank is likely to assist the commerce ministry in preparing Logistics Performance Index (LPI) to rank states with a view to improve domestic as well as international trade.The LPI ranking would encourage states to work and improve upon their logistics infrastructure. Inadequate infrastructure is impacting the country’s trade and investments also. Commerce Ministry in talks with World Bank for Logistics Performance Index
Container Shipping Sailing
- Indian Railways cements whopping 6,000-km Bangladesh-India-Pakistan-Turkey trans-continental train run and has planned to do the trial run soon. Indian Railways is going to run a trans-continental container train full of goods from Dhaka to Istanbul. The journey would be across five countries — Bangladesh, India, Pakistan, Iran and Turkey. The route the container train will follow, will be, Dhaka-Kolkata-Delhi-Islamabad-Tehran-Istanbul. Indian Railways cements whopping 6,000-km Bangladesh-India-Pakistan-Turkey trans-continental train run
Tip: Shipwaves will keep you informed once this service is implemented.
- Container group MSC is planning to buy Italy’s Messina, a Swiss-headquartered group said that it is an another sign of consolidation in the sector. Container lines are battling their worst ever downturn due to a glut of ships and weaker demand — prompting rivals to form vessel-sharing arrangements or pursue other measures including mergers and acquisitions. Container group MSC says in talks to buy stake in Italy’s Messina
Shipping Industry Roundup
- To further enhance the connectivity between Karnataka and Kerala, DP World and Container Corporation of India has introduced a new dedicated train service between Bengaluru-Kochi. The train from Bengaluru will depart every Friday night from ICD Whitefield and reach Kochi on Sunday morning and the train from Kochi will depart every Thursday to reach Bengaluru on Friday. DP World Cochin and Concor to launch Bengaluru-Cochin rail service
- Customs warns a private terminal over JNPT congestion. Customs authorities at Jawaharlal Nehru Port Trust have put the private terminal, on the firing line for the congestion that created long truck queues outside India’s busiest container gateway over the past two weeks. The Customs ordered JNPT’s largest facility to immediately remove all gate hour restrictions and allocate the needed resources equipment and manpower to ensure seamless supply chains. Customs warns APMT over JNPT congestion
Global Market Buzz
- After the fall of Hanjin Shipping, the troubled financial condition of Hyundai Shipping is another line to be watched for. In the recent development, HMM Signs MoU, for Sale of Ten Container Vessels. Hyundai Merchant Marine announced that it has reached an agreement to transfer ten ships to the Korean government in a sale-leaseback transaction, an arrangement that gives Hyundai new funding worth five times the market value of the vessels. HMM Signs Government Sale-Leaseback Deal for 10 Ships
- Global Ship Lease loss more than doubles. Container ship owners had a difficult year in 2016 as container lines reigned in excess capacity. Global Ship Lease’s (GSL’s) loss more than doubled in 2016 as the container ship owner wrote down the future earning potential of some of its vessels. Ship owners have faced a difficult market as container lines are reluctant to hire any new tonnage as they seek to establish equilibrium between supply and demand in the global container shipping market. Global Ship Lease loss more than doubles
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