⚓ Your Weekly Maritime News - 11
Greetings, Maritime Mavericks! ⚓🌊
We hope you're ready for another exciting voyage through the maritime world. Your enthusiasm and passion for the sea inspire us to keep charting new horizons and sharing the latest insights with you.
So, fasten your seatbelts—oops, we mean secure your hatches—and let's dive deep into the ocean of maritime knowledge! 🚢🔍
Today's Wisdom from the Waves; 🌊
"Twenty years from now, you will be more disappointed by the things you didn't do than by the ones you did do. So, throw off the bowlines, sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover" - Mark Twain
🚢 Navigating Knowledge: Container Shipping Quiz Time! 🚢
*Last Week’s Answer: Magnetic Anomalies
1- Northern Sea Route - NSR Grows Amid Warming Trends
Rising ocean temperatures extend the NSR shipping season.
Russia explores NSR due to Black Sea security issues and an EU oil ban.
NSR offers a shorter, conflict-free route than the Suez Canal.
Russia invests $21 billion for NSR development, boosting freight traffic.
2-Global Trade's Top Strategic Priorities Revealed
Inflation Soars: Rising costs and inflation are the topmost worries, impacting global trade profitability.
Supply Chains in Peril: Supply chain disruptions persist, posing ongoing challenges to businesses.
Geopolitical Unrest: International politics and conflicts add an additional layer of complexity.
🚢 Cast Your Vote: Container Shipping Insights Poll! 🚢
*Last Week’s Insight: 42% of our followers expect a significant rebound in container demand and sea-freight levels within 12-24 months.
3- U.S. Exporters Face Persistently High Container Costs and Scheduling Problems
U.S. export container rates remain elevated compared to pre-COVID levels.
Exporters are grappling with irregular sailing schedules & poor communication from ocean carriers.
The issue isn't just higher rates; exporters are also dealing with increased detention, demurrage, and storage expenses.
Inadequate information on issues like return dates and terminal destinations is causing extra costs.
4- Trans-Pacific Container Shipping Faces Challenges Amid Capacity Control and Rate Struggles
Carriers reduce capacity through sailing cancellations and slow steaming.
Import in the Trans-Pacific region is declining after a weak peak season.
Carriers' efforts to maintain higher container spot rates face resistance.
5- Container Fleet's Future Fuel Mix Towards 2050
FuelEU Maritime initiative holds potential to drive change.
Fossil fuel use in shipping may persist longer than expected.
Economic implications of shifting container fleet fuel preferences.
Regional considerations: how geography influences future fuel choices.
6- China Expands Presence in European Ports but Remains a Minor Player
Chinese companies have invested in 31 container terminals in EU & Med.
COSCO SP owns shares in 11 terminals across 7 EU countries.
COSCO SP's EU revenue has risen from 32% to 47% of total revenue between 2016 and 2022.
Concerns about Chinese control focus on two EU ports: Piraeus & Zeebrugge.
Piraeus saw investment, increased volumes due to COSCO SP's involvement.
7- CMA CGM Leads in Green Containerships
CMA CGM outpaces MSC in ordering eco-friendly containerships.
They have 997k TEU for "green" vessels, surpassing MSC's 976k TEU.
Over 50% of global container orders focus on green ships.
The shift is led by European carriers like CMA CGM, MSC, and Maersk.
8- U.S. Shifts Import Focus from China to Mexico
The U.S. is turning to Mexico and distancing itself from China due to tariffs, supply chain shifts, and technological rivalry.
Mexico's free trade agreement with the U.S. and Canada has positioned it as a stronger alternative to China as a supply base.
In July, Mexico accounted for 15% of U.S. imports, as China was for 14.6%.
China's share of U.S. goods imports in the first half of 2023 was 13.3%, a significant drop from 21.6% in 2017 and the lowest in 20 years.
9-Shippers Face Dilemma: Return to US West Coast or Stay in the East?
- Shippers who switched to the US East Coast to avoid port labor disputes now ponder their next move.
- After 1.5 year of negotiations, the labor situation on the West Coast is resolved.
- Shippers are considering the spot market & long-term contracted spreads for their decisions.
10-Drewry World Container Index - September 21, 2023
Composite index drops 5.2% to $1,479.48 this week.
Index down 66.9% compared to the same week last year.
Index is 86% below the peak of September 2021.
YTD average index is $1,756/40', lower than the 10-year average.
East-West spot rates expected to remain stable in the near future.
Need more? we've got something special just for you!
As a token of our appreciation, we're offering our Maritime Analytica Exclusive Report - Q2, a $99 value, for only $49. These reports are your guide through the global economy, container shipping market, and global shipping lines. Ready to set sail to success? Reply to this email, and we'll get you started. ⚓🌟
