OceanX Reads / Industry Insights02-06-2024

Our weekly to twice weekly reads, are a collection of commented links to interesting industry news and market developments, around oceanfreight and technology. Some of our comments are slightly sarcastic but always honest. Besides informing our members about what is going on and providing some industry insights, they are also always an invitation to start a dialogue on any of the subjects.

June 2nd 2024

Good afternoon,

And welcome in June.

With India and South Africa two of the many elections this year are in again and whilst India looks likely to continue on its path with same leadership under Modi, South Africa becomes a bit more messy as ANC needs to find a coalition partner. Let’s hope along that way, they get electricity and their ports in order.

Rates continued rising again this week and an end to the boom is currently not yet in sight. There was more interesting press lately arguing that especially on transpacific it being mainly a restocking trend as importers were cautious during 2023.

Remaining in the US, a crackdown of customs authorities on customs clearance providers for Chinese eCommerce has slowed down things and is expected to remain more harsh on certain goods. In fact the trade war seems to continue on all fronts, as on the other China continued to dump US debt during May. Meanwhile China’s trade with the rest of the world, outside US and Europe continues to grow.

Schenker sale has officially moved into the next round, with CVC, Maersk, DSV and Saudi Arabia’s Bahri, still in the race.

Off to the UK next week, looking forward to catch up with many members and friends in London, Ipswich, Birmingham and Manchester! On June 11th, I’ll be at Multimodal all day, text me if you have time to catch up.

Enjoy the reads,

Cheers Ruben

PS: Members, please remember registering for #como2024 and reserving your room. Rooms are limited and room rates go up after June: https://agm.oceanx.network

We just released our Hungary Market Report, following the market visit last month: https://oceanx.network/download/36/travelreports/8656/hungary-may-2024-report.pdf

WCI is up again, as rates continue to climb: https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry
- Meanwhile carriers claim they are not holding back any capacity: https://theloadstar.com/liners-are-not-hoarding-capacity-assures-evergreen-as-q1-profits-triple/
- For now all is going up https://container-news.com/ocean-freight-container-shipping-market-set-to-surpass-red-sea-crisis-peak-and-hit-levels-not-seen-since-covid-19-pandemic/
- An early peak season? https://theloadstar.com/box-rates-ease-but-things-may-get-worse-for-shippers-before-they-get-better/

Maersk groups low sulphur surcharge and bunkers as FFF – Fossil Fuel Surcharge – whilst simplification of surcharge structures is generally good, that’s an odd move… : https://theloadstar.com/maersks-new-surcharge-strategy-raises-eyebrows/

FMC cases for CMA CGM, Shipco and Vanguard sorted,… pocket money for the big boys…. https://container-news.com/cma-cgm-hit-with-us2-million-fine-by-fmc/ and here https://splash247.com/cma-cgm-pays-1-975m-fine-in-the-us/

Britain is another funny case for ETS, as they are not part of it and on several lanes, the last port in EU rotation is a British port, which then is the first non-EU port: https://www.sea-intelligence.com/press-room/267-brexit-leads-to-24-ets-north-atlantic-savings

Interesting Deep Dive into Freight futures – first 20 mins also some good insights on current container shipping market: https://m.youtube.com/watch?v=F2daOz4L6RI&feature=youtu.be

Red Sea Update
- No news on MSC Aries that is now held by Iran since more than 51 days….
- No news in terms of the Houthis either, attacks continue, mostly with little success but keeping the „terror“ up and the Red Sea mainly closed. https://www.centcom.mil/MEDIA/PRESS-RELEASES/Press-Release-View/Article/3793906/june-1-red-sea-update/

Singapore reactivates some older terminals to battle congestion https://splash247.com/singapore-brings-shuttered-terminals-back-online-to-battle-severe-box-congestion/

Panama Canal draft level improves https://splash247.com/panama-canal-increases-vessel-draft-ahead-of-schedule/

Last week did not only see big T got convicted but also former Polar Air Cargo COO sentenced to jailtime – „corporate corruption does not pay“: https://www-freightwaves-com.cdn.ampproject.org/c/s/www.freightwaves.com/news/former-polar-air-cargo-coo-sentenced-to-4-years-in-prison/amp

Big crackdown on customs clearance agents in the US involved in eCommerce: https://theloadstar.com/customs-brokers-under-scrutiny-as-us-cbp-confirms-ecommerce-crackdown/ and here https://theloadstar.com/transpac-ecommerce-freighters-on-pause-as-us-customs-checks-every-parcel/

Schenker sales goes into next round – CVC, Maersk, DSV and Saudi Arabia’s Bahri make it to the next round: https://www.marketscreener.com/quote/stock/AP-MOLLER-MAERSK-1412885/news/Deutsche-Bahn-Schenker-takes-CVC-Maersk-DSV-and-Bahri-into-final-round-sources-say-46855201/ and here https://www.reuters.com/business/autos-transportation/deutsche-bahn-schenker-takes-cvc-maersk-dsv-bahri-into-final-round-sources-say-2024-05-29/

Tips on contract logistics automation from GXO https://theloadstar.com/dont-leave-it-too-late-to-start-your-digital-transformation-says-gxos-adrian-stoch/

China merchants cleaning up its holding: https://www.caixinglobal.com/2024-05-31/china-merchants-to-consolidate-cargo-operations-amid-shipping-boom-102201671.html

Chinas export to the global south keep growing – interesting look how China’s export growth recently comes from „non-western“ markets: https://asiatimes.com/2024/05/2-words-explain-china-export-surge-global-south/