nhan dinh keo nha caiNews Highlights week: 44 - 2022

nhan dinh keo nha cai rate of container spot rate decline ticked up again this week, with nhan dinh keo nha cai Shanghai Containerised Freight Index falling another 4.6% to 1,697 points, after dipping just 2% last week. While not as steep as falls in September, which saw four weeks of declines of over 10%, nhan dinh keo nha cai speed and direction of travel will remain concerning for carriers. nhan dinh keo nha cai SCFI comprehensive index has now fallen 67% since its peak in January, with rates on some trade lanes now a third of where they were at nhan dinh keo nha cai top of nhan dinh keo nha cai market.

Oil will make up just 15% of liquid fuels used to power nhan dinh keo nha cai shipping fleet by 2050 if nhan dinh keo nha cai maritime sector is to play its part in limiting man-made temperature rises to 1.5C, according to nhan dinh keo nha cai International Energy Agency. Shipping would have to undergo a major transformation from heavy reliance on oil to a position in which ammonia meets about 45% of demand for shipping fuel, with bioenergy and hydrogen each hitting a further 20% each, nhan dinh keo nha cai 31-nation IEA said in its annual forecast. Hydrogen would be focused on short to mid-range operations while electricity will play a minor role on meeting demand from small ships and short distance cruise ferries, according to nhan dinh keo nha cai IEA’s World Energy Outlook 2022.

Lockdown fallout continues to affect nhan dinh keo nha cai logistics sector in China’s key shipping hub of Ningbo, though nhan dinh keo nha cai situation shows some signs of improving. In Beilun district, where several large container terminals are located, lockdowns have been lifted in nine of nhan dinh keo nha cai 11 subdistricts and part of nhan dinh keo nha cai other two regions, as new coronavirus cases wane, according to nhan dinh keo nha cai latest government update. A total of 31 storage yards and warehouses have been reopened, compared with 17 in nhan dinh keo nha cai middle of last week.

Charter market: signs that it might be bottoming out

After weeks of dull activity, essentially caused by a subdued demand, nhan dinh keo nha cai charter market has ‘woken up’ in nhan dinh keo nha cai past fortnight.

It has experienced a significant rise in nhan dinh keo nha cai number of fixtures concluded and seen nhan dinh keo nha cai return of nhan dinh keo nha cai large mainstream carriers such as CMA CGM, which has been busy fixing or extending a dozen vessels.

Ships of 1,700-1,800 teu and 1,000-1,250 teu have been in particularly high demand with about twelve fixtures agreed in each segment.
This rally has helped reduce nhan dinh keo nha cai fleet of spot ships in these sizes from a total of ten units to only three.

However, charter rates in both sizes have continued to lose ground, with standard 1,700 teu tonnage now fixing at only USD 14,000 per day and units of 1,000 teu obtaining around USD 11-12,000.

These figures are four times lower than what NOOs could achieve at nhan dinh keo nha cai peak of nhan dinh keo nha cai market in March.

nhan dinh keo nha cai rest of nhan dinh keo nha cai market is also seeing continuously weakening charter rates, like for example ‘classic panamaxes’ (4,000-5,299 teu) which are now getting fixed at low-USD 20,000s for periods of six months, a new significant downward correction.

This negative trend on nhan dinh keo nha cai charter rates could however come to an end soon, considering nhan dinh keo nha cai reduction in nhan dinh keo nha cai number of spot ships and nhan dinh keo nha cai continued limited prompt supply of tonnage in most sizes.

But hoping for a rate rebound is probably premature, in view of nhan dinh keo nha cai continuously grim envsuent on nhan dinh keo nha cai cargo side.

On Friday, nhan dinh keo nha cai Shanghai Container Freight Index (SCFI) which reviews spot cargo rates reached a new low at 1,697 points, down 4.6% from nhan dinh keo nha cai previous week.

nhan dinh keo nha cai SCFI is now nearly four times below its January 2022 peak but is still about twice as high as before Covid.

nhan dinh keo nha cai question is to know how low cargo rates will fall, with attempts by carriers to stem nhan dinh keo nha cai decline through service closures, blank sailings and reduced speed having so far proven insufficient.

More capacity needs to be structurally removed from nhan dinh keo nha cai market to fix nhan dinh keo nha cai overcapacity issue and demolition is obviously nhan dinh keo nha cai most obvious option coming to mind.

But en masse scrapping might not happen just yet, with both cargo and charter rates probably not low enough, for now, to prompt NOOs and carriers to start getting rid of their older tonnage.

MKT