Newsletter – March 1, 2018
AIR FREIGHT UPDATES
Air freight prices up 17% YoY in January
Average worldwide air cargo yields slipped back to a level of US$1.89 per kilo in January 2018, 7.8% below the highs of December, but 16.8% higher than in January 2017, measured in US dollar (US$) terms, according to data just published by WorldACD. Read more here.
OCEAN FREIGHT UPDATES
Lines may need to close some Asia-Europe services
Liners alliances may be forced to close some services on the Asia-Europe trade due to excess capacity as the current orderbook of ultra-large containerships (ULCs) enter service, according to one analyst.
With some 1.42 million TEU of 20,000+ TEU vessels due for delivery in the coming years, megamax capacity additions will also reshape the power balance between the three major alliances on the critical Asia-Europe lane, according to SeaIntel.
In its latest report, SeaIntel said that as the newbuildings entered service, the Ocean Alliance − one of three huge global alliances that now dominate the east-west container trades, consisting of CMA CGM, Cosco Shipping, Evergreen and OOCL − would gradually match the Asia-Europe capacity market share of 2M by 2019, and surpass it in 2020. THE Alliance, however, consisting of Hapag-Lloyd, Yang Ming, and Ocean Network Express, was forecast to gradually lose market share. [Excerpted from lloydloadinglist.com]
Capacity increases may put transpacific container rates under more pressure
As shippers and carriers on the transpacific prepare for the annual contract negotiating season – which kicks off with the Journal of Commerce’s Transpacific Maritime (TPM) convention next week on Long Beach – industry analysts have predicted planned capacity increases on the trade could bring long-term rates under further pressure. Read more here (login required).
Hapag-Lloyd hangs onto its UASC customers, but its bottom line takes a hit
According to its preliminary annual result, incorporating seven months of merged UASC business, Hapag-Lloyd achieved an operating result (ebit) of $464m in 2017, compared with just $140m the year before.
And at ebitda (earnings before interest, tax, depreciation and amortisation) level, the company’s result almost doubled, from $671m to $1.2bn. Read more here (login required).
HMM Confirms Europe Return
Hyundai Merchant Marine (HMM) today confirmed its intention to reenter the Asia-Europe box tradelane on its own with its boss saying incoming environmental legislation will reshape on its own with its boss saying incoming evironmental legislation will reshape the liner trades and give the Korean carrier a chance to compete. Read more here.