Container Shipping News

Two Australia-based software providers, Mizzen and Maxamation, have developed a product that will enable container lines to strategize around profitability of dynamically quoted ocean spot pricing.

In just one month’s time, retailers have gone from a pessimistic peak-season outlook to a forecast of better-than-expected imports this fall.

US import growth from Asia and China accelerated in August after a strong July, driven by e-commerce merchandise and PPE supplies.

A steady stream of extra-loader vessels in the trans-Pacific have failed to blunt the steady increase in spot rates.

Container shortages in Asia are reaching a crisis level as carriers are desperate to secure sufficient equipment to satisfy US import needs for the upcoming peak shipping season.

What has changed such that the world’s largest container line, and the largest company in Denmark, is willing to bet its future not just on an unproven theory, but one that has been disproved time and time again over the course of containerization?

While Bangladesh saw a huge jump in apparel exports last month, factories are seeing fewer orders from western buyers for September and October.

Uptake in digital quoting tools at top container lines suggests every carrier will need that capability even if the usage and benefits of such tools aren’t yet clearly defined.

Carriers have already delayed services calling at Busan and Japanese ports, including Tokyo, due to the typhoons, while also omitting some calls, including Yokohama.

While there has been a discernible shift in global sourcing patterns toward countries in Southeast Asia, India has yet to become a key beneficiary of that evolving migration, with the challenges tied to its ocean supply chains seen as a big barrier to larger trade aspirations.

With trans-Pacific carriers having no blank sailings scheduled through September, US exporters anticipate there will be sufficient westbound capacity to ship their commodities to Asia.

Maersk’s reorganization is expected to lead to a raft of redundancies and possible office closures, with Danish newspaper Borsen reporting a loss of 3,400 jobs, or roughly 4 percent of its workforce.

New service offerings announced recently by CMA CGM demonstrate that while alliances serve the carriers well in terms of cost efficiencies, the benefits may not extend much further.

The US import surge that began in late June now looks like it will continue at least through October as consumers turn to e-commerce for purchases, including holiday season merchandise.

Cosco’s sale of a large portion of its ownership stake in China International Marine Containers appears to be a state-mandated move to consolidate control around China Merchants Group, CIMC’s largest shareholder.

With carriers refocusing on Colombo or other regional hubs for predictable cost advantages in tighter market conditions, Indian cargo owners may have to wait longer to enjoy more competitive, direct shipping solutions.

Only eight of the JOC Top 40 Container Carriers by US Imports managed to increase volumes in the first five months of the year, none of which belong to one of the three major vessel-sharing alliances.

Mediterranean Shipping Co. announced a new weekly service from Asia to the US West Coast to meet import demand that has risen significantly in the past two months.

In proactively and successfully influencing the direction of the market as container lines have done this year, leading to higher rates and stronger profit, the carriers will inevitably provoke a regulatory reaction.

APL Logistics has added Haiphong to its OceanGuaranteed product as demand for premium services from Vietnam increases with the shift of some manufacturing from China.

Forwarders say shipping lines in the eastbound trans-Pacific are telling them to prepare for a Sept. 1 general rate increase (GRI) that could push West Coast spot rates above $4,000 per FEU.

Container lines have displayed an ability to flex capacity in response to short-term demand changes, and this strategy has paid off across the board despite stunted volumes in the second quarter.

Growth of Maersk Spot indicates the industry is past the point of no return on adoption of instant quoting tools, with container lines not having this capability lagging behind.

Earnings season is drawing to a close, with carriers shrugging off the impact of COVID-19 lockdowns on demand in the second quarter and significantly boosting their earnings due to capacity management.

The new service will significantly shorten the transit time for Bangladeshi cargoes to reach their final destination in the US by — at least 10 days, according to officials.

Taiwanese carrier Yang Ming was unable to turn around its string of financial losses in the first half, but the shipping company continues to inch its way closer to a positive result.

Technology has the potential to solve long-running financing tensions between suppliers and importers, and logistics networks and service providers are likely to be the focal point for these solutions.

US imports from Asia and China turned positive in July, but US retailers predict a short peak season they say will be the weakest in four years.

Jack Mahoney, currently head of Maersk North America’s automotive industry division, will end a 21-year tenure with the Danish giant to lead the niche trans-Pacific carrier.

Spot rates from Asia to both US coasts spiked by several hundred dollars last week as carriers in the eastbound trans-Pacific prepare to implement an Aug. 15 general rate increase.

One marine terminal in Montreal has begun turning away refrigerated exports as a series of strikes will last until at least Friday.

Sources expect Bangladesh’s export figures for August and September to fall sharply, given the ongoing COVID-19 outbreak in the United States and bankruptcy declarations from some major apparel retailers.

Crowley Maritime’s switch to lift-on lift-off vessels a decade ago didn’t pay full dividends until it adopted an aligned terminal operating system to support its grounded operations at its hubs in Florida and Puerto Rico.

Ocean Network Express (ONE) said blank sailings were key to boosting ship utilization, with use on eastbound trans-Pacific services hitting 96 percent.

The uncertainty that marks cargo forecasting in the largest US trade lane is largely a reflection of consumer purchasing habits, which have not followed normal seasonal trends due to the coronavirus disease 2019 (COVID-19).

Aggressive capacity management in response to the effects of the COVID-19 crisis and escalating tariffs has helped the top 10 container carriers operating in the Europe–US trade increase their share of the market so far in 2020.

The Asia–US West Coast spot rate exploded past $3,000 per FEU this week, but forwarders expect pricing to stabilize for the coming month as demand and supply are reaching a state of balance.

Container carrier ONE said an increase in COVID-19 infections in South Africa has also disrupted port operations in Durban, causing vessel delays to ships operating on its South Africa Central service.

Singapore's sovereign wealth fund is thought to be contemplating a cash injection of up to $450 million into PIL in return for a significant shareholding in the privately controlled carrier.

Maersk’s march toward providing supply chain management services and tools for shippers continues with the addition of a control tower software suite aimed at small and mid-sized shippers.