Newsletter – January 18, 2023

  • Newsletter – January 18, 2023


    Hapag-CMA deal sees re-emergence of cross-alliance slot chartering
    As their network coverage becomes compromised by an aggressive blank sailings strategy, ocean carriers are turning to slot charter deals with members of rival ocean alliances to cover their contract commitments.
    Effective next month, Hapag-Lloyd has agreed a slot charter with Ocean Alliance member CMA CGM which, it said, would “strengthen” its coverage in Asia and provide dedicated connections for the North Europe Benelux ports and the UK’s Southampton. Read more here (login required).

    Surplus tonnage cascading a threat to smaller box ships
    Ocean carriers are busy cascading bigger ships on to secondary trades in order to absorb some of their surplus tonnage as they prepare to receive more ultra-large tonnage from the shipyards.
    Every potential growth opportunity is being assessed in carrier networks to redeploy the remaining smaller vessels deployed on the Asia-Europe tradelanes to other routes, at the expense of the incumbent ships. Read more here (login required).

    Carriers take short-term rate hit and eye post-CNY demand surge
    Ocean carriers do not expect consumer demand in North Europe to recover until at least March, when they hope container freight rates from Asia will also rebound.
    Low rates, down to $750 per 20ft and $1,000 per 40ft from China to North European ports, are being touted in the market either directly through local carrier offices, or via forwarding agents, valid until 1 March. Read more here (login required).

    Secondhand containership prices in free fall
    Secondhand boxship prices are falling off a cliff. After a very muted second half of 2022 in terms of sales, the opening 17 days of 2023 have registered some severe drops in prices for the previously buoyant sector.
    Brokers Southport Atlantic note the sale of the 2007-built, 2,553 teu G. Ace as a good illustration of the fall in values. The ship, just sold to Chinese interests, managed to obtain $13.7m, a sister ship, ST Ever, going for as much as $46.5m 12 months prior. Read more here.


    Challenges return for China-Hong Kong cross-border operations
    Cross-border supply chain operations between south China and Hong Kong are becoming more challenging due to rising Covid cases and the approaching Chinese New Year holiday.
    Freight forwarder Dimerco said that cargo being moved from manufacturing hubs around Shenzhen to Hong Kong by road or feeder vessel for onward transport by air or sea were facing disruption. Read more here.

    Electric trucks and ships? Metals for batteries ‘will run out by 2050’
    Global reserves of copper, cobalt, manganese and nickel will not be enough to support the like-for-like electrification of transport, and ‘de-growth’ in capacity will be needed to meet zero-carbon commitments, says a new study.
    The Locomotion project, helmed by the Group of Energy, Economy and System Dynamics of the University of Valladolid, considered electrification scenarios based on transport demand, taking into account availability of materials, potential for recycling and other factors, including widespread adoption of electric cars and e-bikes. Read more here (login required)

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