Economy

  • More transatlantic blankings are unveiled as a new trade war threatens

    Jun 25, 2020 — 2M partners Maersk and MSC have extended the suspension of their TA4/NEUATL4 transatlantic loop through to September. In contrast to the main Asia-Europe and transpacific tradelanes, where carriers have seen a pickup in demand in recent weeks, trade between Europe and the US is still very much in the doldrums.
  • MPC Container Ships flags bankruptcy risk

    Jun 22, 2020 — Oslo-listed MPC Container Ships has warned it could go bankrupt and will face severe liquidity strains from as early as next month. In a presentation to bondholders on Friday, the company, one of the fastest growing boxship tonnage providers in recent years, said it will need to sell ships or risk going bankrupt unless it can seal a $200m loan soon.
  • Box Carriers’ Blanked Sailing Strategy Could Bring $9 Billion in Profit

    Jun 22, 2020 — Notwithstanding a significant decline in container liftings as a consequence of the global pandemic, ocean carriers have a more optimistic outlook for earnings. Sea-Intelligence said that, based on its remodelling, the carriers could potentially achieve a profit for the year “in excess of $9bn”.
  • Transpacific spot rates hit highest level for 18 months, but US imports are drying up

    Jun 15, 2020 — Last week’s Shanghai Containerized Freight Index (SCFI) recorded a second massive spike, of over 25%, in three weeks to take the spot rate to $2,755 per 40ft – double the rate recorded by the index at this time last year.
  • New Paycheck Protection Program (PPP) Guidance Issued by the Treasury Department

    Jun 15, 2020 — As a result of the PPP legislation signed into law earlier this month, yesterday, Treasury guidance on PPP loan requirements was issued. The Treasury Department clarified that borrowers that use less than 60% of their PPP loan amount for payroll costs will be eligible for partial loan forgiveness. The loan forgiveness period has also been increased from eight to 24 weeks.
  • US ending special trade status threatens Hong Kong's transhipment traffic

    Jun 9, 2020 — The latest skirmish in the US-China trade war could “accelerate the demise” of Hong Kong as a major transhipment port. While the ‘phase one’ trade deal was signed in January, subsequent tit-for-tat blame rhetoric has steadily raised tensions between Washington and Beijing again.
  • More blanked voyages a summer certainty on major east-west trades

    Jun 8, 2020 — The widespread removal of capacity across most of the world’s shipping trades via blank sailings and the withdrawal of services been the primary reasons that freight rates in recent weeks have managed to remain relatively high.
  • Air freight rates out of China are declining – but slowly

    May 27, 2020 — Air freight rates out of China have continued to fall, although not at the pace they rose. New figures for the past week from the TAC Index and Freight Investor Services (FIS) show China to Europe down $0.59, while China to the US is down $0.23.
  • 'No hope' of bounce-back in demand for container shipping this year

    May 26, 2020 — Cold water is being poured on any optimistic outlook by some ocean carriers for a speedy recovery of the container industry from the impact of Covid-19. In his latest assessment of the market, Bimco’s chief analyst, Peter Sand, said the current economic situation “provides no hope for a short-term recovery”.
  • KHN’s ‘What The Health?’: What’s In The Next Round Of COVID-19 Relief?

    May 15, 2020 — House Democrats are moving ahead with another round of COVID-19 relief, including additional funding for state Medicaid programs, an open enrollment period for the Affordable Care Act’s marketplace plans, and money to pay premiums for newly unemployed Americans to continue on their employer health coverage. Republicans, however, say the Democrats’ bill goes too far.
  • It Pays to be Small: New Guidance Gives PPP Loans under $2 Million a Safe Harbor

    May 14, 2020 — On May 13, the U.S. Small Business Administration (SBA) and the U.S. Treasury Department released the promised and much awaited “additional guidance” regarding the “certification of need” requirements of the Paycheck Protection Program (PPP). It is FAQ #46 in the joint SBA-Treasury guidance.
  • Maersk Sees Sharp Drop in Global Container Shipping Demand This Year

    May 14, 2020 — Maersk, which also reported a 23% rise in first-quarter core profits on Wednesday, now expects global container demand to contract this year, after previously forecasting growth of between 1% and 3%.
  • Inactive boxship fleet to surpass 3m teu for the first time

    Apr 8, 2020 — The sudden massive volume of blanked sailings announced in recent days is set to create new records in terms of the inactive containership fleet, which analysts at Alphaliner are now saying will breach the 3m teu mark for the first time meaning some 13% of the entire global box fleet will be out of work. The inactive containership fleet had actually been dropping for most of the last month having hit a record of 2.46m teu at the start of March.
  • Joint Association Letter – Emergency Financial Support Needed for the Defense Personal Property Program (DP3)

    Apr 7, 2020 — IAM and AMSA signed a joint letter to the USTC Commander, GEN Stephen Lyons, asking for any advocacy/assistance he could provide for this industry to work with DoD to get financial support.
  • COVID-19 Relief Package Clarification

    Apr 7, 2020 — For companies whose operations have been curtailed or otherwise impacted by COVID-19 related restrictions, several clarifying guidance and forms were issued over the weekend, connected to programs created under the first three legislative relief packages to pass the Congress.