Container Shipping News

Spot freight rates in the eastbound trans-Pacific edged down this week, which is probably a good sign for carriers considering that the rates had surged by more than 75 percent the week before.

Rafi Danieli, CEO of Zim Integrated Shipping Services since 2009, is resigning after a 37-year career with the Israeli carrier.

Atlantic Container Line’s first in a series of innovative container/roll-on, roll-off ships that the carrier is deploying in its trans-Atlantic service, will call the Port of New York and New Jersey this weekend on its maiden voyage.

The fleet of idle container ships over 500 twenty-foot-equivalent units increased five-fold in 2015 as the imbalance between the supply of ships and cargo demand worsened “dramatically” through the year, according to Alphaliner.

The freight rate volatility that characterized 2015 has continued into the New Year with spot prices falling across the major east-west trades and led by Asia-Europe and Mediterranean routes that gave back a good chunk of last week’s gains.

Industry-wide losses greater than $5 billion this year as the supply-demand imbalance widens and freight rates continuing to decline is what container shipping lines have to look forward to this year, according to Drewry.

The trans-Atlantic container trade is heading for further volatility this year after shedding its “boring” tag in 2015. But it also looks like one of the rare routes where carriers can turn a profit in a year many fear will be the toughest the industry has faced since the 2008-2009 global financial crisis.

If an uncertain global economy wasn’t enough for shippers and transportation providers, 2016 will be filled with major changes, from the massive container shipping weight mandate to liner consolidation. Other threats and opportunities will likely emerge during the year, but the 10 trends outlined here will definitely be in play and impact global supply chains. Don’t say we didn’t warn you.

Container lines are showing more interest in working with terminals to improve port productivity but it is not prioritized and there is a huge opportunity for improvement in the area, according to a major multi-location terminal operator.

Container shipping lines are making their first tentative push this year to raise freight rates on the troubled Asia-Europe and Mediterranean trades, despite the failure of GRIs to lift prices for any sustained period throughout 2015.

Ocean freight rates for cargo moving under contracts on the major East-West trade routes continued to decline in the last quarter, according to Drewry’s Benchmarking Club that tracks a group of multinational retailers and manufacturers that monitor their contract freight rates.

Crowley Maritime Corporation rung in the new year with a $25.5 million investment in new cargo carrying equipment, part of an ongoing investment in its Latin American services.

Mediterranean Shipping Co. has resumed calls to Iran after suspending services in 2012 in response to trade sanctions imposed on Tehran for its nuclear program.

Zim Integrated Shipping Services has delayed an initial public offering on Wall Street planned for the first half of the year because of deteriorating market conditions and slowing world trade, according to an Israeli news website.

Traditionally seen as a reliable barometer of the global trade environment, the most recent transit and receipt figures from the Suez Canal Authority (SCA) are less than encouraging.

Consultants McKinsey and Co. believes it has found one of those elusive win-win solutions for carriers and container terminals in the area of pricing that could potentially save the industry up to $3 billion a year.

Former American President Lines CEO W. Bruce Seaton, who pioneered the post-Panamax container ship and scheduled transcontinental stacktrains, died Dec. 26 at the age of 90 in Greenbrae, California.

Carriers are finally achieving some measure of relief in freight rates as vessel load factors improve with the approach of Chinese New Year. Spot rates on the Shanghai Containerized Freight Index spiked to both the West and East coasts this week in advance of the two-week celebrations that begin on Feb. 8.

Shares on the Shanghai and Shenzhen exchanges were suspended on the first trading day of the year after stock prices plunged following indications that December manufacturing activity in China contracted for the 10th consecutive month.

The U.S-flagged APL Guam called at the island of Guam for the first time on Jan. 1 to mark the maiden inbound shipment to the Western Pacific island as part of the carrier’s Guam Saipan Express (GSX) service.

The U.S. National Transportation Safety Board has opened its accident docket on the cargo ship El Faro and released the first underwater photos and video of the ship, which sank Oct. 1 off the Bahamas with the loss of its 33-member crew.

Softness in key parts of the global economy is producing cautious forecasts about U.S. containerized imports and exports in 2016. High retail inventory levels have cast a pall over imports. The strong dollar and weak overseas demand are putting a dent in exports.

High debt levels at Hanjin Shipping and Hyundai Merchant Marine will make it difficult for the South Korean container lines to take advantage of their government’s new S1.2 billion fund to assist the country’s struggling shipping and shipbuilding companies.

Despite growing at the slowest pace in four years, U.S. containerized imports of tableware and household goods reached an all-time high in 2015, riding on the back of increasing disposable income and an ongoing recovery in the home sales market.

The fleet of idle container ships above 500 twenty-foot-equivalent units has shrunk for the first time since July due to scrapping of older vessels, rather than increased cargo demand, as charter rates hit all-time lows, according to Alphaliner.

Global carrier schedule reliability in November reached its second-highest level since 2011, according to SeaIntel.

European shippers are urging governments to harmonize their regulations for the meeting of a global container weighing mandate because too few countries have detailed what shippers need to know before the rule takes effect July 1.

The 2M Alliance stands to gain from the pending consolidation of the container line industry because the alignment of the five alliances to which the other major carriers belong will change and with it their services, making the consistency provided by the tie-up of Maersk Line and Mediterranean Shipping Co. more attractive, according to a senior MSC executive.

Zim Integrated Shipping Services said it will launch a seasonal Black Sea reefer service between Israel, Egypt and Russia earlier than planned in response to market demand.

The much-anticipated Panama Canal expansion project is now 96 percent complete, but will not be open to commercial traffic in April as previously reported, according to the canal authority.

China’s Ministry of Transport has fined eight international container lines a total of $169,000 for failing to meet the freight rate guidelines set by the ministry.

Overweight containers have blighted the maritime sector for decades, leading carriers and terminal operators to take steps to reduce the number of overweight containers they handle, to say nothing of the looming verified gross mass mandate that takes effect in the summer of 2016.

The arrival of the CMA CGM Benjamin Franklin Saturday morning heralds the new era of mega-ships in the U.S. These vessels, with capacities of 18,000 20-foot container units or larger, will place unprecedented demands on ports to expand cargo-handling capacity and improve marine terminal efficiency.

The Hong Kong Liner Shipping Association has applied for a block exemption order from the city’s competition law that came into effect on Dec. 14 and effectively outlaws the vessel sharing agreements that dominate shipping activity at the port.

Zim Integrated Shipping Services is expanding its refrigerated container fleet by 1,900 forty-foot containers to meet growing demand for equipment that can provide shippers real-time updates of temperature and gas levels within the equipment.

Russian regulators won’t levy fines against the five container lines it says colluded on prices in 2012 and 2013 on lanes connecting to Asia until next year.

As the idle container ship fleet hits an all-time high, freight rates could recover in 2016 as retail stocks are depleting in Europe amid strong retail sales.

State-owned Shipping Corporation of India has added a second call at Pipavav Port to its intra-regional “SCI Middle East India Liner Express,” or SMILE, service, offering more importing and exporting coverage to shippers in the country’s west coast region.

The curved bow of a container vessel recently deployed by a Japan container line promises to burn 5 percent less bunker fuel than conventional vessels of its size that don’t take inspiration from airplane noses.

The impact of China’s decision to create Emission Control Areas to combat air pollution will be cushioned by low fuel prices and its focus on compliance while at berth rather than sea until 2019.