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MareGreco.com | Editors' picks | MARITIME | November 30, 2020


| Editors' picks | Maritime | 11.30.2020

Container shortage in Asia pushes up shipping costs

Nikkei | HellenicShippingNews.com | November 30, 2020


Vard Delivers World's First Electric, Autonomous Container Feeder

Maritime-Executive.com | November 27, 2020


Liner competition shifts focus to NVOCC’s

Nick Savvides, Managing Editor | Maritime-Executive.com | November 30, 2020


BUILDING ROBUST REVENUES

PortStrategy.com | November 29, 2020


More than a quarter of all tonnage under construction will use alternative fuels

Sam Chambers | Splash247.com | November 30, 2020

Excerpts: Container shipping rates from China to Southeast Asia are surging due to a shortage of transportation space in the Asian region, the result of an uneven distribution of containers to meet surging shipping demand from Asia to Europe and the U.S.

Container shipping rates, including those for Europe and the U.S., are likely to remain at high levels, as it will take some time before the shortage is resolved.

As of mid-November, the cost to ship a 20-foot container from Shanghai to Singapore was around $802, up 370% from $170 a month ago, according to data released by the Shanghai Shipping Exchange. Container shipping rates have remained relatively stable as it is a route full of small container vessels.

Container shortage in Asia pushes up shipping costs

Nikkei | HellenicShippingNews.com | November 30, 2020

Fincantieri's Vard division has delivered the zero-emissions container vessel Yara Birkeland to her owner, fertilizer manufacturer Yara International. The 120 TEU Yara Birkeland is the world's first battery-electric container feeder for commercial use, and the project partners' ultimate goal is to operate her as an autonomous vessel.

The vessel's hull was built by Vard's Braila yard in Romania, and initially her outfitting and delivery were slated for completion at Vard Brevik. The work was later transferred to Vard Brattvaag, and a planned second-quarter delivery was pushed back due to the COVID-19 pandemic.

Vard Delivers World's First Electric, Autonomous Container Feeder

Maritime-Executive.com | November 27, 2020

Today’s launch of CMA CGM’s SEAPRIORITY go and SEAPRIORITY get by CMA CGM reveals the confidence carriers have that the current surge in cargo on the Pacific will continue, but also shows the lines’ newfound ability to manage capacity, bolstering rates and carrier income.

SEAPRIORITY go will offer fast, 12-day, transit times from Yantian to Los Angeles with priority given to cargo out of Yantian to receive equipment and space on board the vessel. SEAPRIORITY get gives priority to cargo in the system for early discharge and chassis availability in the US port.

Liner competition shifts focus to NVOCC’s

Nick Savvides, Managing Editor | Maritime-Executive.com | November 30, 2020

In the first of a two-part series of articles, renowned industry analyst, Andrew Penfold, considers the creative approaches open to container terminal operators to consolidate and expand terminal revenues in a challenging marketplace.

The uncertainties associated with volumes and revenues for container terminal operators has been at the front of industry attention this year. There are many techniques that can be applied in this situation. This is the first of a two-part series of articles that examines various strategies to preserve and enhance revenues in these difficult market conditions.

During economic contractions, some ports and terminals have been confronted with above-average volume declines, while others have done significantly better. Specific factors determine market position, but a port or terminal must work with the advantages and disadvantages associated with its location and other key factors.

BUILDING ROBUST REVENUES

PortStrategy.com | November 29, 2020

Clarkson Research Services has provided its subscribers with a snapshot of the amount of ships – both trading today and under construction – which do not use bunker fuel. Remarkably, in tonnage terms more than a quarter of all ships being built today do not use bunker fuel oil for propulsion, according to the new research.

“Alternative fuels are gaining traction,” commented Stephen Gordon, managing director of Clarkson Research Services, writing in the company’s latest weekly report.

More than a quarter of all tonnage under construction will use alternative fuels

Sam Chambers | Splash247.com | November 30, 2020




MareGreco.com | Editors' picks | Maritime | 11.27.2020 |


Baltic index hits 3-week high as vessel rates climb

Reuters | HellenicShippingNews.com | November 27, 2020


Rates shoot up 25% in just one week on Asia-Europe tradelane

Sam Chambers | Splash247.com | November 27, 2020


MIXED RECOVERY WITH DIGITAL DRIVE

PortStrategy.com | November 27, 2020


Sustainable Ports as Energy Hubs

MIKAEL LIND | Maritime-Executive.com | November 26, 2020


Bezos Targeted By Shipping Groups To Save Stranded Seafarers

Bloomberg | ShippingHerald.com | November 27, 2020

Excerpts:


The Baltic Exchange’s main sea freight index rose for an eighth straight session to its highest in three weeks on Thursday, steered by stronger rates across all vessel segments.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, rose by 22 points, or 1.8%, to 1,219, its highest since Nov. 4.

Baltic index hits 3-week high as vessel rates climb

Reuters | HellenicShippingNews.com | November 27, 2020

As analysts have been predicting, spot rates on the Asia-Europe container tradelane shot up today, playing belated catch-up with the booming transpacific.

Tight capacity and limited equipment availability amid a spike in consumer demand saw rates published on the Shanghai Containerized Freight Index (SCFI) leap $447 per teu to $2,091, up 27% in the space of a week. Asia – Mediterranean rates also shot up, climbing by $421 or 23% this week to $2,219 per teu.

Rates shoot up 25% in just one week on Asia-Europe tradelane

Sam Chambers | Splash247.com | November 27, 2020

Port terminals will be hit by cost-cutting measures that will likely impact modernisation and technology investments.

This is the view from Dinesh Sharma, Director, Drewry Maritime Advisors, who spoke during the TOC Americas Trade Outlook about how the changing global economy has impacted terminal investment, with the COVID -19 pandemic having a key impact on developments.

“A lot of terminals have seen an impact on trade growth since 2009. It’s already added a number of years to their original business plans. Further compression in growth rates is likely to further impact the terminal operators’ business plans and could add a number of years to business plans,” Mr Sharma said.

MIXED RECOVERY WITH DIGITAL DRIVE

PortStrategy.com | November 27, 2020

Society’s contribution to greenhouse gases is one of the biggest threats for the future of our planet and transport operations account for at least 20 percent of the world’s total greenhouse gas emissions. In many transport chains, several different means of transport are utilized, and numerous transport hubs are used for transhipment. To achieve fossil fuel free operations, transport hubs need to support those chains by providing, for example, green electrical power. There is now a strong call for the port of tomorrow to expand its capabilities beyond the port as a transhipment hub providing physical services, as an energy hub. In this short statement we elaborate on the opportunities provided by the collaboration between energy companies and ports empowered by digitalisation.

Sustainable Ports as Energy Hubs

MIKAEL LIND | Maritime-Executive.com | November 26, 2020

Amazon.com Inc. founder Jeff Bezos is being targeted by shipping groups to support some 400,000 seafarers stuck on merchant vessels because of port and border restrictions to stop the spread of Covid-19.

While consumer giants such as Unilever Plc and Procter & Gamble Co. have called for measures to allow more crew changes at ports, ensure the safety of overworked seafarers and make sure supply chains don’t use forced labor, the world’s largest e-commerce retailer has so far remained silent on the issue, according to the International Chamber of Shipping.

Bezos Targeted By Shipping Groups To Save Stranded Seafarers

Bloomberg | ShippingHerald.com | November 27, 2020




MareGreco.com - Editors' picks | 11.26.2020 -



1/ Federal Maritime Commission demands more data from carrier alliances

PortTechnology.org | November 26, 2020


2/ Study finds UK ports are coping with unprecedented surge in demand

PortTechnology.org | November 26, 2020


3/ Xeneta container rates alert: no crisis for carriers as long-term contracted rates continue upward trajectory, but what awaits in 2021?

HellenicShippingNews.com | November 26, 2020


4/ Weekly Broker: Dry bulk finally bottoms out

Jason Jiang | Splash247.com | November 26, 2020


5/ AIDA Joins Other German Cruise Lines Resuming Sailing

Maritime-Executive.com | November 25, 2020


6/ CMA CGM unveils new short sea Med service

Container-News.com | November 25, 2020

Excerpts:


The US Federal Maritime Commission (FMC) has issued letters to the three major global carrier alliances demanding carrier-specific trade data be filed on a monthly basis as part of efforts to ensure fair competition and increase transparency.

Data is already filed to the FMC on a quarterly basis and the FMC has traditionally relied on a combination of individual vessel operator confidentially provided data and information from commercially available industry data to monitor and analyse container carrier freight rates and service market trends.

Federal Maritime Commission demands more data from carrier alliances

PortTechnology.org | November 26, 2020

The UK Major Ports Group (UKMPG) has said results from a nationwide survey show UK ports are very busy compared to the same period a year ago but are adapting and redeploying resources to manage the surge in demand.

In a statement, the UKMPG said the results show that ports are “very busy but coping” as they adapt to conditions. Container terminals are working hard and liaising closely with shipping lines and supply chain partners with the peak of containers likely to have passed.

Study finds UK ports are coping with unprecedented surge in demand

PortTechnology.org | November 26, 2020

Leading container shipping companies are continuing to weather the pandemic storm, and its economic shockwaves, with success – pushing long-term contracted rates up for the second successive month. In the latest figures from Xeneta’s XSI® Public Indices report, which crowd sources real-time shipping rates from shippers worldwide, rates were seen to climb by 1.9% over November, building on a gain of 1.3% in October. The index is now 1.9% up year-on-year, with a 0.9% rise since the start of 2020.

Xeneta container rates alert: no crisis for carriers as long-term contracted rates continue upward trajectory, but what awaits in 2021?

HellenicShippingNews.com | November 26, 2020

The secondhand bulk sale and purchase saw a fruitful week with a large number of ships changing hands with almost all dry bulk segments showing an improvement in rates and shipowners feeling dry bulk has finally bottomed out.

“The good momentum and buying appetite now seems ‘abundant’ in the SnP market for the time being, especially when given the slight support coming from the side of earnings. Interest for dry units lacks any given direction, given the considerable number of units changing hands across all different size segments and age groups.

Weekly Broker: Dry bulk finally bottoms out

Jason Jiang | Splash247.com | November 26, 2020

AIDA, Carnival Corporation’s brand marketed to German-speaking consumers, announced plans to resume cruise operations in December joining other cruise lines marketed to the German market which are also moving forward with their cruises. The plans are in part based on the German government’s pledge to reduce restrictions in December.

Saying that the infection rates in the Canary Islands have been stable at a very low level for a long time and that the Spanish government has adopted clear regulations for safe travel, AIDA announced that it will resume operations with two ships cruising around the Canary Islands.

AIDA Joins Other German Cruise Lines Resuming Sailing

Maritime-Executive.com | November 25, 2020

CMA CGM has introduced its new TMX 2 - Turkey Med Express 2, a new Short Sea Mediterranean service starting on 16 December with the 1,100TEU container ship, OPS Hamburg from the Port of Gemlik.

TMX 2 service's rotation is Gemlik - Gebze - Ambarli - Aliaga - Salerno - Genoa - Marseilles - Algiers - Skikda - Annaba - Gemlik.

CMA CGM unveils new short sea Med service

Container-News.com | November 25, 2020




MareGreco.com - Editors' picks | 11.25.2020 -

1/ CONTAINER SHIPPING: A SURPRISINGLY PROFITABLE YEAR DURING CHALLENGING TIMES, BUT HOW LONG CAN IT LAST?

Peter Sand | BIMCO.org | November 25, 2020


2/ MACROECONOMICS: AS VIRUS CASES SURGE, A SLOWER RECOVERY AWAITS

Peter Sand | BIMCO.org | November 24, 2020


3/ DRY BULK SHIPPING: CHINA REMAINS THE DRIVING FACTOR, BUT COAL POLICY IS DISRUPTING THE MARKET

Peter Sand | BIMCO.org | November 24, 2020


4/ TANKER SHIPPING: WORST NOT YET OVER AS INDUSTRY PAYS FOR STRONG SECOND QUARTER Peter Sand | BIMCO.org | November 25, 2020 5/ Liners turn to multipurpose tonnage to plug gaps in charter market Sam Chambers | Splash247.com | November 25, 2020

Excerpts:


There is money to be made by both carriers and tonnage providers as volumes defy usual seasonality and remain strong into the fourth quarter of the year. On top of that, low bunker prices –, one of the keys to high profitability this year – look set to stick around.

However, with COVID-19 cases on the rise again, and a slow recovery the outlook for next year, things aren’t all rosy for container shipping.

CONTAINER SHIPPING: A SURPRISINGLY PROFITABLE YEAR DURING CHALLENGING TIMES, BUT HOW LONG CAN IT LAST?

Peter Sand | BIMCO.org | November 25, 2020

Record-breaking GDP drops seen in the second quarter of the year have been replaced by record-breaking growth rates in the third. Despite this, the major economies of the world have still not returned to pre-pandemic levels, except China. Further recovery is now on hold in many countries as the second wave of the virus takes hold, provoking new lockdowns and restrictions.

MACROECONOMICS: AS VIRUS CASES SURGE, A SLOWER RECOVERY AWAITS

Peter Sand | BIMCO.org | November 24, 2020

The second half of the year has provided some cheer for the dry bulk market, with all ships in the spot market averaging earnings above the break-even point, though not high enough to make up for losses made during the first part of the year. Seasonal factors are currently increasing demand, while geopolitical developments, in particular around Chinese coal imports, are pulling on the brakes.

DRY BULK SHIPPING: CHINA REMAINS THE DRIVING FACTOR, BUT COAL POLICY IS DISRUPTING THE MARKET

Peter Sand | BIMCO.org | November 24, 2020

This year, tanker shipping will not benefit from the usual strong winter seasonal effect. Though the new lockdowns being introduced in many countries are less strict than in the spring, the effect on tanker shipping will be worse, given the oil supply glut of Q2. The news of an effective vaccine offers some hope of a global oil demand recovery but, however it comes about, it will be slow and drawn out, and it will be at least 2022 before global oil demand returns to pre-pandemic levels.

TANKER SHIPPING: WORST NOT YET OVER AS INDUSTRY PAYS FOR STRONG SECOND QUARTER Peter Sand | BIMCO.org | November 25, 2020

Liners are having to seek out multipurpose (MPP) ships to cope with extraordinary demand and sky high rates across container shipping tradelanes.

“The dearth of cellular container tonnage in the charter market is forcing some carriers to tap into the multipurpose market to cover their needs, targeting ships with good speeds and high container intakes,” Alphaliner noted in its most recent weekly report.

Liners turn to multipurpose tonnage to plug gaps in charter market Sam Chambers | Splash247.com | November 25, 2020




MareGreco.com - Editors' picks | 11.24.2020 -

1/ FMC Investigates Carriers' Strong-Arm Tactics on Container Fees

Maritime-Executive.com | November 23, 2020


2/ Surge in charter rates is driving SnP market

Nick Savvides, Managing Editor | Container-News.com | November 24, 2020


3/ Rollover cargo still on the increase says Ocean Insights

Josh Brazil, COO at Ocean Insights | Container-News.com | November 24, 2020


4/ Surge In Greenhouse Gases Sustained Despite COVID Lockdowns

Reuters | ShippingHerald.com | November 24, 2020


5/ Intra-Asia container rates surge on capacity shortage, pushing up polymer prices

HellenicShippingNews.com | November 24, 2020

Excerpts:


Amidst a surge of import volume and unprecedented congestion at the nation's biggest container seaports, the Federal Maritime Commission is expanding its fact-finding investigation into logistical challenges and pursuing reports of potential noncompliance.

The inquiry is an extension of the FMC's Fact Finding 29 investigation, which was intended to identify collaborative operational solutions to the challenges affecting America's seaports due to the COVID-19 pandemic.

FMC Investigates Carriers' Strong-Arm Tactics on Container Fees

Maritime-Executive.com | November 23, 2020

Hardening charter rates are pushing second-hand asset values upwards as carriers look to acquire suitable tonnage before the prices peak.

Some liner companies may consider second-hand vessels ahead of another price surge, though on the flip side, as asset prices are increasing, ship owners may take the opportunity to wait for prices to peak before considering selling tonnage, said shipbroker Braemar ACM.

Surge in charter rates is driving SnP market

Nick Savvides, Managing Editor | Container-News.com | November 24, 2020

Increasing levels of rollover cargo at congested ports are continuing to prevent the smooth operation of global supply chains an Ocean Insights study has found.

Asian ports exporting to Europe and the US have seen a month-on-month rise in cargo delayed at ports during October, according to data analysis of more than one million data points, according to the data consolidation and analysis group for forwarders and shippers, Ocean Insights, which is based in Rostock Germany.

Rollover cargo still on the increase says Ocean Insights

Josh Brazil, COO at Ocean Insights | Container-News.com | November 24, 2020

Greenhouse gas concentrations climbed to a new record in 2019 and rose again this year despite an expected drop in emissions due to COVID-19 lockdowns, the World Meteorological Organization said on Monday, warning against complacency.

Many scientists expect the biggest annual fall in carbon emissions in generations this year as measures to contain coronavirus have grounded planes, docked ships, and kept commuters at home.

Surge In Greenhouse Gases Sustained Despite COVID Lockdowns

Reuters | ShippingHerald.com | November 24, 2020

Vessel capacity shortages and trade disruptions in Asia’s container shipping markets are impacting the region’s polymer trade flows and prices, with little hope of the container market re-balancing before the Lunar New Year, trade sources said this week.

Container freight prices on most routes within Asia have more than doubled since the start of October, amid the capacity crunch.

Intra-Asia container rates surge on capacity shortage, pushing up polymer prices

HellenicShippingNews.com | November 24, 2020




MareGreco.com - Editors' picks | 11.23.2020 -


1/ UNCTAD: ‘Recovery fraught with uncertainty’

The Baltic Exchange | HellenicShippingNews.com | November 21, 2020


2/ Is the maritime sector out of step? Container-News.com | November 21, 2020 3/ CMA CGM’s third-quarter profits jump 522% Greg Miller, Senior Editor | American Shipper | FreightWaves.com | November 23, 2020 4/ Reefer rates out of Europe take a hike Container-News.com | November 23, 2020 5/ CDC Advises Public to Avoid Cruise Ships due to "Very High" COVID Risk Maritime-Executive.com | November 22, 2020

Excerpts:

International maritime trade is expected to drop by 4.1% this year, with an anticipated modest recovery in 2021 that is heavily caveated by its forecaster, UNCTAD.

Having already stalled last year, trade growth was just 0.5% in 2019, down from 2.8% in 2018, at 11.08 billion tons. Against this backdrop, seaborne trade was already on an unsteady footing at the start of 2020. “While initial expectations were that 2020 would bring moderate improvements in the economy and trade, the unprecedented global health and economic crisis triggered by the Covid-19 pandemic severely affected the outlook,” said UNCTAD in its annual Review of Maritime Transport (RMT) study.

UNCTAD: ‘Recovery fraught with uncertainty’

The Baltic Exchange | HellenicShippingNews.com | November 21, 2020

Global warming is a ticking time-bomb that could destroy us all or it could be a dud, failing to explode at the expected time. For most climate change must be dealt with and in shipping that is the general view, but the route to climate redemption remains unclear, as was clearly understood at this week’s debate at the IMO. Container News’ Nick Savvides argues that the industry may, as a result, have missed an important opportunity.

Time is a wonderous thing, timing is, apparently everything, at least in comedy. It is hard to know whether the virtual meeting of the International Maritime Organization (IMO)’s Marine Environment Protection Committee (MEPC) 75 had descended into farce or was the sensible outcome of those guided by the technological nous and the will to slalom through the political minefield.

Time will tell.

Is the maritime sector out of step? Container-News.com | November 21, 2020

Another container-line quarterly report, another big profit and another bullish outlook on the rest of the year.

French carrier CMA CGM reported net income of $567 million for Q3 2020 for the group, up 522% from $45 million in Q3 2019.

For the shipping division, earnings before interest, tax, depreciation and amortization (EBITDA) was $1.5 billion, up 76% year-on-year. Volume rose 1%, to 5.59 million twenty-foot equivalent units (TEUs). Revenue per TEU was $1,120, up 5.2%.

CMA CGM’s third-quarter profits jump 522% Greg Miller, Senior Editor | American Shipper | FreightWaves.com | November 23, 2020

European reefer rates are seeing upward pressure with some major lines announcing significant increases, for reefer cargo in particular, but also for standard freight containers too.

CMA CGM has unveiled the largest peak season surcharge (PSS) of US$600 per reefer box from North Europe, Baltic, Scandinavia and Poland to Middle East Gulf, Red Sea, India and Pakistan, effective from 1 December.

Reefer rates out of Europe take a hike Container-News.com | November 23, 2020

The U.S. Centers for Disease Control (CDC) has elevated its assessment of the risk of COVID-19 on cruise ships to its highest category, and it is cautioning potential passengers to avoid cruising.

"CDC recommends that all people avoid travel on cruise ships, including river cruises, worldwide, because the risk of COVID-19 on cruise ships is very high. It is especially important that people with an increased risk of severe illness avoid travel on cruise ships, including river cruises," the agency warned in an updated advisory on Saturday. "Cruise passengers are at increased risk of person-to-person spread of infectious diseases, including COVID-19, and outbreaks of COVID-19 have been reported on cruise ships."

CDC Advises Public to Avoid Cruise Ships due to "Very High" COVID Risk Maritime-Executive.com | November 22, 2020




MareGreco.com

- Editors' picks | 11.20.2020 -


1/ UK port congestion leads to additional surcharges

Antonis Karamalegkos, Editor | Container-News.com | November 20, 2020


2/ ZIM upgrades its China-Australia service network

Container-News.com | November 20, 2020


3/ Higher Rates Across Vessels Propel Baltic Index Higher

Reuters | ShippingHerald.com | November 20, 2020


4/ New Trade Agreement Could Herald New Growth Era For Ship Owners

Nikos Roussanoglou | HellenicShipingNews.com | November 20, 2020


5/ Shipping Watchdog Sets Rules to Curb Industry’s Pollution

Jack Wittels & Jess Shankleman | Bloomberg.com | November 17, 2020

Excerpts:


The heavy congestion in London Gateway, and in most ports of the United Kingdom, has forced several shipping lines to implement congestion surcharges and cancel some sailings.

Shipping lines have noted that the congestion has been ongoing for some months now, particularly at the Port of Felixstowe, but bottlenecks at London Gateway have also caused concerns for the carriers, including the German carrier Hapag-Lloyd.

UK port congestion leads to additional surcharges

Antonis Karamalegkos, Editor | Container-News.com | November 20, 2020

ZIM has announced the introduction of its second Express service from China to Australia in December. In particular, the Israeli carrier will launch the C2A service on 4 December with the following rotation:

Laem Chabang – Hochiminh – Nansha – Yantian – Sydney – Melbourne – Brisbane – Laem Chabang.

ZIM upgrades its China-Australia service network

Container-News.com | November 20, 2020

The Baltic Exchange’s main sea freight index, which tracks rates for capesize, panamax and supramax vessels, rose to its highest in over a week on Thursday, steered by higher rates across all vessel segments.

The Baltic dry index rose 19 points, or 1.7%, to 1,134, a peak since Nov. 11.

The capesize index went up by 16 points, or 1.1%, to 1,430.

Higher Rates Across Vessels Propel Baltic Index Higher

Reuters | ShippingHerald.com | November 20, 2020

The new RCEP trade agreement could become a boon for shipping in the coming years, at least according to market delegates. In its latest weekly report, shipbroker Allied Shipbroking said that “during a week where the developments regarding the pandemic and the aftermath of the US elections have monopolized market interest, news of a fresh trade agreement signed by 15 Asian Pacific nations may not have attracted the importance it deserved. However, this massive trade deal is expected to reshape a significant part of the global trade over the coming years.

New Trade Agreement Could Herald New Growth Era For Ship Owners

Nikos Roussanoglou | HellenicShipingNews.com | November 20, 2020

The organization responsible for setting global environmental standards for shipping approved rules designed to curb the industry’s carbon emissions, triggering criticism that its measures won’t do enough to help tackle climate change.

About 90% of the world’s physical trade is moved by ship, and the sector spews about as much CO2 into the atmosphere as Germany and France combined. On Tuesday, the International Maritime Organization approved rules aimed at cleaning up the industry by improving vessels’ carbon efficiency.

Shipping Watchdog Sets Rules to Curb Industry’s Pollution

Jack Wittels & Jess Shankleman | Bloomberg.com | November 17, 2020