Peter S. Goodman’s Post

"Attacks on vessels in the Red Sea area reduced traffic through the Suez Canal, the shortest maritime route between Asia and Europe, through which about 15 percent of global maritime trade volume normally passes. Instead, several shipping companies diverted their ships around the Cape of Good Hope. This increased delivery times by 10 days or more on average, hurting companies with limited inventories." https://lnkd.in/erbWHXrP #globaltrade #trade #redsea #inventorymanagement #supplychain #logistics #customs #customsclearance

Global container shipping industry records sharp rise in profits In the second quarter of 2024, the global container shipping industry recorded a sharp rise in profits. They exceeded $10 billion, according to Bloomberg. The publication notes that the largest market players - Maersk and Cosco - earned almost 2 times more during this period than in the first quarter. Currently, global shipping companies are seeing a recovery in profits due to favorable supply and demand conditions. Although they are still significantly below the peaks reached during the pandemic. In addition, it should be emphasized that the Houthi attacks in the Red Sea have tightened capacity, as ships began to look for longer routes around southern Africa. As a result, shipping rates have risen sharply, and some major ports have become more congested. Despite these obstacles, transshipment volumes last quarter reached a historical high of 46.4 million TEU.

Freight rates in the global shipping sector have surged due to Houthi attacks on ships heading for the Suez Canal, causing rates to rise from $1,200 per trip in 2023 to $4,500 by late June. This spike is driven by increased demand, port strikes, and geopolitical tensions, including new U.S. tariffs on Chinese goods. The disruption forces ships to reroute around Africa, adding travel time and straining capacity. Consequently, shipping companies like Zim and Maersk are benefiting from higher spot prices. Rates may rise further, possibly reaching $9,000 for certain routes. Read more at Reuters: https://lnkd.in/gjGF-k4a

Companies whose trade routes include the Suez Canal, the Strait of Hormuz, the Straits of Malacca and Taiwan, or the Panama Canal should be preparing for disruption. A new article from BCG lays out strategies for resilience. Read more: https://lnkd.in/eNxiSQyf #shipping #globaltrade #supplychains

🛬It’s been quite the week for supply chains!  Here’s everything you need to know ⬇️ 📉The Drewry World Container Index rose by just 1% to $5,901 per Forty Foot Container on July 11. Despite recent increases, spot freight rates remain below pandemic peaks, with the WCI 43% lower than its September 2021 high (more on Sea Trade Maritime). 🌧️ Severe weather in South Africa's western and eastern cape regions has halted containerships at the Cape of Good Hope since July 8, exacerbating global shipping congestion (more on Sea Trade Maritime).  🇨🇳🇲🇽 The U.S. and Mexico have introduced measures to curb Chinese imports of metals that bypass tariffs by transiting through Mexico. Under this new policy, steel and aluminum imports from Mexico will face a 25% tariff unless proven to be melted and poured in North America (more on Freight Waves). 🤯 The CMA CGM Benjamin Franklin lost 44 containers overboard and reported 30 additional damaged containers due to unexpectedly severe weather off the South African coast. CMA CGM has notified authorities and will assess the situation in Cape Town (more on the Load Star). 🇵🇦 Water levels at the Panama Canal are returning to normal faster than expected, allowing the permissible draught for vessels to increase to 14.63 meters starting tomorrow (more on Freight Waves). 

Companies whose trade routes include the Suez Canal, the Strait of Hormuz, the Straits of Malacca and Taiwan, or the Panama Canal should be preparing for disruption. A new article from BCG lays out strategies for resilience. Read more: https://lnkd.in/gmDmHgSc #shipping #globaltrade #supplychains

Our daily briefing (July 12)… Free to view: Asia-US spot freight rates continue to climb higher, nearing Covid-era records and showing an increasingly steep disconnect with US import volumes: https://lnkd.in/e5krAnJq A dark fleet tanker that regularly ships Russian oil through the Danish straits and English Channel was revealed to have a string of serious deficiencies compromising environmental and crew safety: https://lnkd.in/ewUPBkfb LNG and methanol dual-fuel vessels are to rake in millions in 2025 by pooling with non-compliant vessels under the FuelEU Maritime legislation: https://lnkd.in/euUaKxUi Free to view: Container lines that avoided the dangers of transiting the Red Sea by extending voyages around the Cape of Good Hope face another black swan - winter in the southern hemisphere: https://lnkd.in/eGxiU6mq Evangelos Marinakis has proceeded with an order in China for up to 10 dual-fuel containerships that will be able to use LNG as fuel: https://lnkd.in/e2TyAcVT Basic war risk rates for Black Sea ports have softened substantially, with vessel calls now on an established upwards trend: https://lnkd.in/e4Ch5ggg Global oil demand continues to slow, with growth in Q2 of 2024 the slowest since the Q4 of 2022: https://lnkd.in/exuvcYeG South Korea’s HD Hyundai Samho has expanded its shipbuilding facilities to increase capacity, as vessel orders rise: https://lnkd.in/ewxKfNHM Hafnia has made significant progress in increasing the number of female seafarers aboard its owned fleet of product tankers: https://lnkd.in/eYsXre3R Congestion at Singapore appears to have eased somewhat - average waiting times have reduced to two days: https://lnkd.in/ethXm6ry More Texas ports reopened after shutting down ahead of Hurricane Beryl making landfall in the US Gulf coast: https://lnkd.in/eu4-q3uS Maersk Energy Markets has hired three new traders and operators amid its rising bunker consumption on the back of the Red Sea crisis: https://lnkd.in/eA7ZMEqD

Russia's Azov-Marmara freight 'falls to $30/MT’, boosts competition versus Ukraine – Agricensus According to Agricensus, freight for Russia's Azov Sea to Marmara have fallen by $8-9/MT w/w, with some trade sources expecting the values will fall to around $30/MT, making the country's grain offers more competitive vs Ukrainian origins. Freight levels out of Azov have now slumped to the $35-38/MT range through the week. Trade sources have voiced expectations of further declines coming as a slowdown in export pace from the Azov ports frees up more freight capacity in the region, while improved conditions of passage through the strategically important Kerch Strait have also cut costs.  

🚢 Shifting Tides in the Shipping Industry: A Look at Cosco Group's Performance 🚢 In 2023, the Chinese Cosco Group, which encompasses COSCO SHIPPING Lines and OOCL, reported an 85% decline in profits compared to the previous year, amidst a challenging container market with dropping freight rates. This stark contrast highlights the volatility of the current market environment. From a staggering USD 20.3 billion bottom line in 2022, profits dwindled to USD 3.2 billion in 2023, according to research firm Alphaliner. This dramatic shift underscores the complexities facing the shipping industry today. What are your thoughts on the future of the shipping and logistics industry in light of these challenges? Are adaptation and innovation the keys to resilience? #Shipping #Logistics #ContainerShipping #Innovation #BusinessStrategy https://lnkd.in/ed9AWJwY

Global container shipping continues to face supply-demand imbalances with rates from Asia to Europe and USA tripling since 2023.🚢 🌏 Yet, markets like Saudi Arabia maintain a highly resilient container shipping! 🇸🇦 Here are the latest updates on the global container shipping situation and how we're adapting. 🔗 ⬇️ #industrynews #containershipping #logistics #saudiarabia #vervomiddleeast