Container Box
Ocean container volumes are about to fall off a cliff
The new market outlook of U.K.-based consultancy Maritime Strategies International (MSI) reads like a Stephen King novel geared toward container-line executives. It’s not exactly feel-good reading for cargo shippers either. Cheap freight rates are only attractive if they don’t trigger another Hanjin Shipping-style bankruptcy. Read more
IMO 2020 – lower sulphur means higher freight rates
‘From our discussions with Maritime Strategies International (MSI) and other active participants in the freight market, we now expect a higher uptake of scrubbers. We estimate that 20-25% of the larger Capesize vessels will have scrubbers fitted by end 2020. For the mid-size Panamax vessels, the uptake is lower at 5%.’ Read more
DP World chomps its way toward end-to-end logistics after swallowing up Feedertech
Take a look at Daniel Richard’s comments on the latest with DP world’s acquisition of Feedertech. Read more
Box Line Predatory Pricing undermining rates
BIMCO Proposes Slow-Steaming Alternative to IMO
In the Shipping Herald, MSI’s Dan Richard’s Load Star article is quoted- ‘Liner companies face a “trade-off” between minimising fuel bills, thus cutting emissions, but no longer being able to offer a full network of port pairs.’ Read more
IMO 2020 and blank sailings to define Q4 container markets
MSI argues in Hellenic Shipping News that liner charges to customers, as they introduce the more expensive low sulphur fuels, will define box-shipping markets in the coming months. However, MSI is sceptical of claims that expected fuel price increases in January will lead shippers to front-load cargoes. Read more
Carbon Carriers
The consequences for shipping markets of a major shift in energy consumption away from hydrocarbons and towards renewables and biofuels is the subject of a report prepared by MSI on behalf of the European Climate Foundation. MSI’s shipping market modelling systems were used to analyse how global fossil fuel demand reductions could alter inter-regional commodity trade flows and the associated shift in required shipping capacity, industry earnings and asset prices, across all segments of the shipping industry. The full report can be downloaded here and a shorter Executive Summary here.