Container lines

The order for the 14,000-TEU ships continues the tussle between methanol and liquefied natural gas (LNG) as the preferred fuel for the next generation of container ships.

The carrier, which reported $1 billion in net profit for the third quarter, says the potential boost in volumes could come as US importers seek to beat the possible implementation of new tariffs on Chinese goods by the incoming Trump administration.

While the presidential campaign is no longer a factor, the new Trump administration will likely be similarly disinterested in a strike of any significant length and, it can be assumed, will get directly involved in talks.

The strong quarterly results mirror those of other carriers, including CMA CGM, Yang Ming Marine and Wan Hai Lines, which have also recently reported stellar third-quarter financials.

Both carriers generated more in net income between July and September than the first two quarters combined, filings to the Taiwan stock exchange showed.

While there was no official word as to what caused the flip-flop on the part of the carrier, sources believe the security situation in the Red Sea remains too volatile for carriers to consider returning to the Suez route.

CMA CGM’s group net profit rocketed to $2.7 billion in the third quarter, thanks to stronger pricing power and earlier peak seasons for North American and European importers.

US retailers plan to significantly increase imports in November and December compared with projections from just one month ago following Donald Trump’s election to a second term.

Among the major container lines, CMA CGM has taken the lead in reinstating shorter Suez Canal routings, offering India exporters to North America shorter transits than the majority of other services sailing around southern Africa.

The bullish fundamentals are expected to keep US imports healthy as the year ends and put a floor under rates, according to participants at this year’s CONECT conference.

Sources also noted that some recent sailings on the trade lane have had difficulty filling space at Nhava Sheva and Mundra in line with declared allocation plans.

There are no signs of any rush to frontload ahead of potential tariff increases on European imports by the new US administration or to get cargo moving before a possible second strike by the ILA.

The carrier has been restrained with its order book up to now, but the order for 312,000 TEUs of capacity comes as pressure to meet 2030 interim decarbonization targets intensifies.

Advisors to beneficial cargo owners say mitigating future supply chain disruptions requires BCOs to proactively engage with ocean carriers and forwarders, seeking to build partnerships even if past experience suggests they end in disappointment.

The major Chinese ports of Shanghai and Ningbo are currently experiencing delays of two to three days due to the lingering impacts of the storm that hit the region late last week.

CMA CGM and Maersk are reshuffling their Mexico-Central America services beginning this month in response to chronic port congestion and berthing delays at key ports in the region.

A series of factors are bending the capacity curve back in favor of carriers and could lead to an improved supply-demand balance next year despite a large capacity overhang, believes the Maersk CEO.

Shippers once saw small variances on freight bills as a nuisance too insignificant to dispute, but technology is enabling more efficient scrutiny across transportation modes.

If the question is solely on the risk related to being delayed in each port, the Gemini network ought to, statistically, have a slightly higher core reliability than Mediterranean Shipping Co. when the need for shuttles is taken into account, writes analyst Lars Jensen.

The new network will have a grace period for about three months as the first full port rotations are completed but must then quickly prove it can raise on-time performance to the promised levels, says Maersk’s CEO.

While conventional retailers were decreasing their orders, the growth of e-commence shipments from Asia was more consistent as elevated air cargo rates pushed more shippers to move goods via ocean transport, the carrier’s CEO said.

The revised forecast, which covers the carrier’s financial year to March 31, 2025, is 13% higher than the $2.7 billion estimate it gave on July 31.

Fewer port calls in the Gemini network will allow the carrier to move greater volumes with the same number of ships, Vincent Clerc said while reporting a highly profitable third quarter.

Import demand from Asia, which typically tapers ahead of Black Friday sales, is holding steady, fueled by resilient retail sales, tariff concerns and the mid-January expiration of the tentative ILA labor agreement.

With this latest deal, the combined methanol offtake agreements Maersk now has in place will meet half the demand from its fast-growing dual-fuel fleet in 2027.

The port will see almost half of its container capacity go offline beginning Thursday as the local longshore union declares an unlimited strike against two of Montreal’s largest marine terminals.

By reworking two trans-Atlantic connections, Zim will offer new port coverage in Italy and Turkey while also offering more ways to connect with South America.

Forwarders say intra-Asia pricing is strengthening amid congestion-based blank sailings and strong demand, and carriers are marshalling another round of peak season rate increases.

Shippers and forwarders are reporting slowdowns at several inland gateways that are linked to seasonality, equipment placement, labor disruption and carrier behavior.

The agency said it has secured more refunds and waivers for shippers in disputes with ocean carriers over detention and demurrage charges, with more investigations pending.

The first signs of solid third-quarter performances are being reported by ocean carriers, and with greater visibility over the rest of the year, they are ramping up their profitability expectations.

Carriers are making up for lost time and accept, as the reality of doing business in this market, that actions that benefit them often work to the disadvantage of their customers, writes Peter Tirschwell.

It marks the second time since August the carrier has increased its 2024 earnings guidance, an indication Maersk expects robust demand and rising rates to deliver a strong finish to the year.

The aim of the partnership with Suez is to establish a long-term industrial collaboration on biomethane, with the fuel generated supplying the carrier’s alternative fuel fleet.

The country could be on the verge of undoing legislation that abolished cabotage restrictions, saying the boost received by foreign-flag carriers has come at the expense of local shipping interests.

The group, comprising ONE, HMM and Yang Ming, said the changes apply to two trans-Pacific services and an Asia-Mediterranean service.

The port’s main container terminals are among the facilities affected by the overtime strike that Montreal’s dockworkers have deployed as part of contentious contract negotiations.

Spot rates on the westbound route, India’s largest trade lane by volume, have nearly halved in the last two weeks, according to new data obtained by the Journal of Commerce.

While longshore wages will not increase until a formal contract is signed, the container shipping industry is starting to tally up the billions in new costs that will come with the almost 62% wage hike, according to a Journal of Commerce analysis

Carriers began pulling the charges shortly after the end of the strike was announced last week, while pressure to do so came even earlier from Transportation Secretary Pete Buttigieg.