⚓ Your Weekly Maritime News - 12
Ahoy, Maritime Explorers! ⚓🌊
Prepare to embark on another thrilling journey across the maritime realm. Your unwavering love for the sea fuels our desire to uncover fresh perspectives and deliver the latest updates just for you.
Let's plunge into the boundless ocean of maritime wisdom! 🚢🔍
Today's Wisdom from the Waves; 🌊
“One cannot discover new oceans unless they have the courage to lose sight of the shore.” - André Gide"
🚢 Navigating Knowledge: Container Shipping Quiz Time! 🚢
*Last Week’s Answer: Kite Sail
1- Apple Slashes Transport Emissions by 95% via Ships
Apple's unconventional approach to greening its supply chain: opting for conventional ships over air transport.
An ad features "Mother Nature" grilling Apple's leadership on sustainability, highlighting the shift to ocean shipping.
This change alone reduces transportation emissions by an impressive 95%.
While a major leap, Apple aims for net-zero carbon by 2030, prompting calls for zero-emission ships.
Advocates urge Apple to collaborate with cargo providers for a more sustainable future.
🚢 Cast Your Vote: Container Shipping Insights Poll! 🚢
*Last Week’s Insight: 50% of our followers believe that Green Propulsion (e.g., Hydrogen) will have the biggest impact on container shipping operations in the next decade.
2- Freight Rates Decline: Composite Index Drops 5.1%
Composite index down 5.1% to $1,404.38 this week, 65% lower than last year.
Drewry's WCI now 1% below 2019 rates at $1,404.38 per 40-foot container.
Year-to-date average at $1,747, significantly lower than the 10-year average of $2,678.
Shanghai to Rotterdam rates plunge 10%, while Transatlantic rates show a slight increase.
Expectation of stable East-West spot rates due to Chinese Golden Week holidays.
3- Air vs. Ocean Freight Cost Gap Widens Post-Pandemic
Airfreight now costs 16.7 times more than seafreight, surpassing pre-pandemic levels.
Pre-pandemic, airfreight was typically 13 times more expensive than ocean transport.
During the pandemic, congestion in ocean supply chains led to a modal shift to air.
Expectations for a narrower price difference due to ocean shipping consolidation have not materialized.
Airfreight rates remain 36% higher than in 2019, while maritime rates are only 7% above the 2019 reference point.
4- Maersk and Hapag-Lloyd Differ on 2024 ETS Charges
New EU Emission Trading System (ETS) to cut carbon emissions in transport.
Maersk predicts €70 per TEU for ETS charges, while Hapag-Lloyd estimates €12 per TEU from Asia to North Europe.
Charges cover emissions from Jan 2024, with 40% due in Sep 2025, 70% in 2026, and full coverage from 2027.
Both companies note potential EUA price fluctuations.
Shippers using green fuel programs won't face ETS charges; Amazon partners with Maersk for eco-friendly shipments.
5- Amazon Unveils "Supply Chain by Amazon" Revolution
Amazon launches "Supply Chain by Amazon," an end-to-end logistics service for sellers to efficiently move products globally.
Initially aimed at sellers, Amazon's service hints at broader ambitions.
Covers inventory pickup, cross-border shipping, customs clearance, bulk storage, multi-channel replenishment, and direct customer delivery.
Offers discounts on cross-border sea and air freight, plus potential savings on road freight to Amazon warehouses.
Amazon plans to support physical shop locations beyond its platform, potentially challenging the wider logistics industry.
6- Containership Capacity Surge Sets Record Pace
Rapid growth in container fleet, with 190,000 TEU/m increase since April.
Overcapacity strains carriers, surpassing previous growth spurt challenges.
2023 to break annual record with 2.2 mlln TEU; 2024 expects 3 mlln TEU.
Large newbuilds idling for months due to supply-demand imbalance.
Carriers adopt measures, but overcapacity issue persists.
7- Capacity Change of Carriers from Q2/2006 to Q2/2023
Focusing on diversifying revenue streams and bolstering logistics.
Embracing end-to-end solutions and entering profitable sectors.
Venturing into air cargo, acquiring freighter aircrafts.
MSC surpasses Maersk as the largest global liner operator in 2022.
Maersk and Zim witness slight declines in capacity.
8- Container Shipping - Dynamics of Supply & Demand
Global containerized trade fell by 0.7% in 2022, a slight drop compared to 2009 and 2020 contractions.
Container ship carrying capacity increased by 4% in 2022, creating a potential supply overcapacity.
Spot container freight rates easing, returning to pre-COVID-19 levels and possibly dropping below historical averages.
9- 2022 Freight Rates Surged Amid Supply-Demand Gap
Contracted rates rise significantly.
Factors include supply-demand imbalances, disruptions, congestion, inflation, and trade imbalances.
Rates vary based on container shipment type.
Notable rate increases in various trade routes.
Imbalances could lead to broader economic inflation.
10- Europe's Container Shipping Crisis Deepens
Rates Plunge: Asia-Europe spot rates drop below $1,000 per FEU, a record low in FBX history.
War and Inflation: Ukraine-Russia conflict compounds Europe's economic woes and inflation.
Carrier Exposure: Leading carriers heavily reliant on Asia-Europe trade face earnings pressure.
Capacity Surge: Record capacity growth in Mega-max vessels amplifies rate woes.
The WCI Shanghai-Rotterdam index had wild swings in 2015-2016, hitting highs above $1,172 per FEU and lows as extreme as $336 per FEU.
