Economy

  • Idle containership numbers fall again, but newbuilds and M&A are a threat

    Dec 7, 2017 — The number of containerships in hot or cold lay-up has fallen to 114, from 136 in the past two weeks. Alphaliner warned that newbuild deliveries and M&A activity could reverse the downward trend. The analyst said the amount of idle cellular tonnage had declined from 520,365 teu to 464,802 teu, or 2.2% of the total global fleet, due to “unusual strength during the traditionally slow winter season”.
  • Even a NAFTA Collapse Won’t Keep Companies From Moving to Mexico

    Nov 9, 2017 — President Donald Trump’s vow to scrap or revamp the North American Free Trade Agreement was expected to put a scare into companies considering these kinds of moves. But many are sticking to plans to set up shop in Mexico even if the pact isn’t renewed, according to the experts who help firms relocate and find new plants.
  • Drewry reports increase in World Container Index

    Nov 6, 2017 — Drewry said that the World Container Index, which is a composite of container freight rates on 8 major routes to/from the US, Europe and Asia, has showed an increase and provided a two-year spot freight rate trend for the index. According to maritime research consultants, the index is up by 25.6% to $1517.1/40ft container.
  • Ship Glut Clouds Long-Awaited Recovery

    Nov 1, 2017 — Container shipping is emerging from a painful six-year slump, but a glut of tonnage that will hit the water over the next two years threatens to derail the nascent recovery. In recent months, Mediterranean Shipping Co. and CMA-CGM SA have each announced orders for 11 mega-vessels. Together, with existing plans by Asian giants like Cosco Shipping Holdings Co. and Evergreen Line, the moves mean dozens of these vessels will be delivered by 2020.
  • U.S. truck rates jump to highest points since 2014

    Nov 1, 2017 — With conditions ripe for rate hikes of late, truckload rates in all three major segments in October continued their upward momentum, according to monthly spot market rates data from Truckstop.com.
  • Analysts Say Container Shipping Industry 2018 Profitability Depends On Capacity Discipline

    Nov 1, 2017 — In an assessment made by shipping analyst group Drewry, container shipping industry profitability in the coming year is dependent on the carrier's ability to maintain the tight capacity management displayed so far in 2017. "A lot will depend on whether the carriers can refrain from undercutting one another and stick to the capacity management they have displayed this year," Drewry senior container researcher Simon Heaney said.
  • Cosco sails back into the black as rate improvements help boost revenue

    Oct 31, 2017 — Chinese shipping giant Cosco Shipping Holdings today reported a 35% year-on-year increase in revenue for the third quarter as sit swung back into the black. It also announced plans to raise almost $2bn through a share placement.
  • Airline cargo bosses remain in positive mood

    Oct 27, 2017 — Airline cargo bosses are in an upbeat mood, with a new IATA survey suggesting a continued strong financial performance in the second half of 2017. IATA’s latest business confidence survey, conducted in early-October, asked for the opinions of airline chief financial officers and heads of cargo. Exactly 80% of respondents reported that profitability increased in year-on-year terms in the third quarter of this year – up from just 36% in the first quarter of the year.
  • U.K. Brings Push for Brexit Transition Into Line With EU Stance

    Oct 24, 2017 — The U.K. has shifted its approach to the transition agreement it wants to put in place for after Brexit, falling into line with the European Union’s long-held stance.
  • Outlook Gloomy for Container Shipping as Rates Continue to Slide

    Oct 16, 2017 — Container spot rates from Asia to North Europe slumped below $700 per teu last week, losing a further 3.9% in value. They now stand at $686 per teu, while for Mediterranean ports, rates slid 5.8% to $652 per teu. In January freight rates per teu for both were in excess of $1,000.
  • Alibaba buys controlling interest in Cainiao logistics network

    Sep 27, 2017 — China-based e-commerce giant Alibaba Group has taken control of struggling logistics network Cainiao with an investment of 5.3 billion yuan (US$807 million) in a move to dramatically increase its international reach. The investment, once completed, will increase Alibaba’s stake in the logistics network from 47 percent to 51 percent and brings the estimated valuation of Cainiao to about $20 billion, according to Reuters.
  • The box carriers: Consolidate or compete?

    Sep 20, 2017 — While there were 20 global container lines in 2011 operating in a fragmented industry, the recent Cosco’s takeover of OOCL created a new reality in today’s container shipping, where the top four carriers control 53.8% of the world’s container cargo, according to shipping market analyst Xeneta.
  • Hamad Port seen transforming Qatar into regional trading centre

    Sep 14, 2017 — With rapid growth expected “in the coming years,” Qatar Chamber director general Saleh Hamad al-Sharqi said Hamad Port will transform Doha into a regional trade centre, which would promote inter-trade in the Middle East region and enhance the region’s trade with the world.
  • New Suez Canal income slowly sinking

    Sep 14, 2017 — When Lt. Gen. Mohab Mamish, chairman of the Suez Canal Authority, announced the canal was complete, he said annual revenue would reach $13.4 billion, from about $5 billion at that time. Revenue has barely budged since then, and in fact has declined somewhat. Mamish was counting, however, on growth of global trade, which has suffered the past two years, according to Rashad Abdo, an economic expert and head of the Egyptian Forum for Political and Economic Studies.
  • Iran ready for free trade with regional countries

    Sep 12, 2017 — Iran is ready to establish preferential tariffs and free trade with some regional countries, particularly Afghanistan, Pakistan and Oman, said the head of Iran’s Trade Promotion Organization (TPO).