keo nha cai fb88News Highlights week: 42 - 2022

All keo nha cai fb88 signals are currently negative for Non-Operating Owners (NOOs): demand is weak, supply continues to rise, charter rates are losing further ground (albeit at a slower pace than seen recently) and keo nha cai fb88 business on offer is mostly for short employments, often combined with options.

Charterers are striving for new lower benchmark rates with every new fixture, but NOOs are trying to resist, arguing that keo nha cai fb88 environment is not that bad, with a continued limited supply of quality prompt tonnage in some size segments.

But keo nha cai fb88 bottom line is keo nha cai fb88 fast deterioration of keo nha cai fb88 cargo environment, which does not bode well for charter rates in keo nha cai fb88 short & medium term, as keo nha cai fb88 weakening volumes are unlikely going to stimulate demand for tonnage any time soon.

Carriers are trying hard to stem this volume contraction and keo nha cai fb88 freight rate collapse by blanking sailings, removing capacity, shutting down or merging services and reducing speed, but this has been so far insufficient to reverse keo nha cai fb88 trend.

Reports of ships sailing at only 70-80% capacity on main trade routes are showing keo nha cai fb88 extent of keo nha cai fb88 problem and point to further unavoidable capacity reductions further down keo nha cai fb88 road.

Easing congestion around keo nha cai fb88 world is not helping, as capacities held up for weeks are now gradually returning to keo nha cai fb88 market.
Alphaliner believes that, based on keo nha cai fb88 current weak fundamentals, geopolitical instability and poor macroeconomics, keo nha cai fb88 market will remain bearish until at least early 2023, with an unprecedented cost of living crisis slowly pushing keo nha cai fb88 world into a global recession.

Transpacific capacity falls 10% with no end in sight

This week’s Alphaliner newsletter reports keo nha cai fb88 closure of four more Transpacific loops, while also shedding light on three new Transatlantic initiatives by Kalypso Compagnia di Navigazione (Rifline), CMA CGM, and COSCO Shipping Lines.

Weekly capacity between Europe and North America on 18 October stood at 170,500 teu, up 13.3% since keo nha cai fb88 beginning of keo nha cai fb88 year. keo nha cai fb88 current offering between keo nha cai fb88 Far East and Europe remains fairly stable with almost 442,000 teu of weekly nominal capacity available, compared to 450,750 teu in August. No major Asia – Europe loops have been closed yet, as keo nha cai fb88 2% capacity reduction is primarily due to keo nha cai fb88 voiding of individual sailings.

Current weekly capacity between Asia and North America however (608,658 teu on 18 October) is already down 10% since its peak in April 2022. This figure will further decrease in keo nha cai fb88 upcoming weeks as more Transpacific loops are closed.

keo nha cai fb88 capacity reductions on keo nha cai fb88 Transpacific are keo nha cai fb88 main reason why overall East West weekly capacity has decreased over keo nha cai fb88 last months.

keo nha cai fb88 shift in carriers’ attention is not only triggered by lower cargo demand for exports ex China, but also by spot ocean freight rate changes. keo nha cai fb88 latest Shanghai Containerized Freight Index (SCFI) figures suggest that Shanghai – Los Angeles/Long Beach rates were down to only USD 2,100/feu as of Friday 14 October, which compares to over USD 15,000 at keo nha cai fb88 beginning of this year.

Meanwhile Shanghai – North Europe rates have fallen from nearly USD 15,600/feu as of 14 January 2022 to a current rate of USD 5,160.

keo nha cai fb88 Shanghai Shipping Exchange of course does not report on Transatlantic rates, but other rate indices estimate current freight rates between Rotterdam and New York to be between USD 7,000 and USD 7,300, which by far exceeds keo nha cai fb88 rates on keo nha cai fb88 two bigger East West trades.

MKT