Karan Dube’s Post

Ocean 🌊 freight rates in the high profiled #AsiaEurope trade are increasing at an unprecedented levels last seen during the pandemic😷 . 3 key takeaways for me from the latest gCaptain piece, which succinctly explains the drivers behind these rising levels . 1. According to eeSea data📈 carriers' schedules on the #AsiaEurope trade promised 1.68mTEU, but only 1.29mTEU were shipped, leaving a shortfall of 397,000TEU due to #blanksailings and #vesseldelays. 2.High #AsiaEurope trade rates are driven by risk surcharges, transit costs, and #portcongestion. If carriers are already benefiting from these "politically charged contingency/transit disruption fees” does it make sense to add in tonnage even if these are available for deployment? 3. The modus operandi of #BlankSailings ⛵️ have evolved. Traditionally used to manage #oversupply by reducing services and creating "artificial demand," they now result from lack of vessels due to rerouting vessels via the #CapeofGoodHope and rising port congestion in #WestMed and #Asianports . In other words, effective capacity is curtailed. With persistent cargo flows, the #RedSeacrisis, and a scarcity of container vessels 🚢 , high freight rates are expected to continue on major #EastWest trades like #AsiaEurope. #containershipping #asiaeurope #freightlevels #eeSea #gcaptain #blanksailings #portcongestions

Barometer: Shipping crisis and worldwide issues 🌏 While Asia-Europe freight rates are stabilising slightly, the shipping sector continues to face unprecedented challenges, having a major impact on carriers and shippers. Dive into the heart of these economic upheavals with our expert Jérôme de Ricqlès and discover how the crisis situation in the Red Sea is disrupting the global supply chain and the Mediterranean market. Don't miss this in-depth analysis to understand the consequences of this situation on the global economy 👉 https://lnkd.in/ekJ_h-7y #transportation #shipping #freight #RedSea #upply

The Red Sea, a crucial maritime corridor, is facing significant disruptions, and the ripple effects are being felt worldwide impacting global trade. At Maersk, we're doing our utmost to take care of our valued customers during these challenging times. Thank you for being our valued partners. Read the full article to understand how these disruptions are impacting the global shipping industry and what measures are being taken to mitigate these effects. 🔗 Read more #GlobalTrade #ShippingIndustry #Maersk #SupplyChain #Logistics #MaritimeNews #Resilience https://lnkd.in/guHwrTKZ

Ocean 🌊 freight rates in the high profiled #AsiaEurope trade are increasing at an unprecedented levels last seen during the pandemic😷 . 3 key takeaways for me from the latest gCaptain piece, which succinctly explains the drivers behind these rising levels . 1. According to eeSea data📈 carriers' schedules on the #AsiaEurope trade promised 1.68mTEU, but only 1.29mTEU were shipped, leaving a shortfall of 397,000TEU due to #blanksailings and #vesseldelays. 2.High #AsiaEurope trade rates are driven by risk surcharges, transit costs, and #portcongestion. If carriers are already benefiting from these "politically charged contingency/transit disruption fees” does it make sense to add in tonnage even if these are available for deployment? 3. The modus operandi of #BlankSailings ⛵️ have evolved. Traditionally used to manage #oversupply by reducing services and creating "artificial demand," they now result from lack of vessels due to rerouting vessels via the #CapeofGoodHope and rising port congestion in #WestMed and #Asianports . In other words, effective capacity is scarce #containershipping #asiaeurope #freightlevels #eeSea #gcaptain #blanksailings #portcongestions

* Cascading impact of Red Sea disruptions * Asian ports facing significant delays * Company securing additional containers * Higher freight rates from longer voyage times * Risks of disruptions at Australian ports The second half of 2024 presents a challenging landscape for global shipping. Denmark's A.P. Moller - Maersk reports that disruptions via the Red Sea, caused by Iran-aligned Houthi militants, have extended beyond Far East-Europe trade routes to impact its entire network. These disruptions have led to vessels rerouting around Africa's Cape of Good Hope, resulting in longer voyages and higher freight rates.The cascading effects are significant. Ports across Asia, including major hubs in Singapore, Australia, and Shanghai, are experiencing delays due to the rerouted ships. This congestion is further exacerbated by equipment shortages and capacity constraints. Maersk's Oceania network, for example, faces congestion in Southeast Asian hubs, causing delays at Australian ports due to vessel bunching upon arrival.Northeast Asia and Greater China ports are not spared, with delays rippling through these regions. Despite the challenges, Maersk notes that global ocean cargo demand remains robust. The company is working to mitigate disruptions by securing additional containers and adjusting its network and supply strategies. However, the ongoing geopolitical tensions and logistical challenges suggest that the coming months will remain tough for global shipping.Shares in Maersk have already felt the impact, dropping 1.5%. The company continues to adapt and respond to these persistent disruptions. #GlobalShipping #RedSeaDisruptions #FreightRates #SupplyChainCrisis #Maersk #AsiaPortDelays #ContainerShortages

The disruption to container shipping traffic in the Red Sea is increasing and is expected to reduce the industry's capacity between the Far East and Europe by some 15-20 per cent in the second quarter, shipping group Maersk said this week. #business #economy #shipping

The delays associated with the longer transits, container shortages, and weather will only add to the headache of logistics managers as they embark on an early pulling forward of freight for the holidays and back-to-school season. The soaring rates come on the heels of a period of tense negotiations in March between shippers and clients over rates, which was fueled by the Red Sea diversions and the impact of the longer transits. The recent increase in demand for exports out of China, together with the dip in the number of repatriated empty containers, means shippers are starting to find empty equipment hard to come by at some export hubs. Even though demand levels are not extremely high, with vessel capacity already stretched thin, the recent increase in demand is enough to push rates up, and the added lack of containers is only helping to push them up even higher. "Carriers have plenty of room to manipulate capacity." #ContainerShipping #CapacityCrunch #LongerTransitRoute #BlankSailings #Manipulation 🧐 https://lnkd.in/gQgftPzp

https://lnkd.in/gD4G4cTz The recent increase in demand for exports out of China, together with the dip in the number of repatriated empty containers, means shippers are starting to find empty equipment hard to come by at some export hubs," Levine said. "Even though demand levels are not extremely high, with vessel capacity already stretched thin, the recent increase in demand is enough to push rates up, and the added lack of containers is only helping to push them up even higher.

📉 Maersk Warns Red Sea Disruption Could Reduce Capacity 🚢 Maersk predicts that Red Sea disruption could decrease Asia-Europe shipping capacity by 20%, significantly impacting global trade routes. This potential reduction requires stakeholders to plan alternative strategies to meet demand. #Shipping #TradeRoutes #AsiaEurope #SupplyChain #Logistics 🔗 Maersk says Red Sea disruption could cut Asia-Europe capacity by 20% https://lnkd.in/e87vuF-6

📉 Maersk Warns Red Sea Disruption Could Reduce Capacity 🚢 Maersk predicts that Red Sea disruption could decrease Asia-Europe shipping capacity by 20%, significantly impacting global trade routes. This potential reduction requires stakeholders to plan alternative strategies to meet demand. #Shipping #TradeRoutes #AsiaEurope #SupplyChain #Logistics 🔗 Maersk says Red Sea disruption could cut Asia-Europe capacity by 20% https://lnkd.in/d-e3fFma