NEPTUNE LINE.
Taicang- Vostochny-Moscow/Novosibirsk/Yekaterinburg
4 Shipment per month
Monkey business
2M Alliance has announced a "go-slow" strategy for its Asia-Europe trade, in an effort to manage the ongoing congestion and delays at major ports in the region. The strategy involves reducing the number of sailings and slowing down vessel speeds, which is expected to help decrease congestion and improve schedule reliability. The ongoing challenges facing the container shipping industry are also reflected in the uncertainty in spot rates. While spot rates on major trade lanes have been stuck in a range in recent weeks, Drewry’s WCI is expected to remain unchanged over the coming months indicating the fragility of the situation. The longer outlook depends on how the industry will address the challenges. For now, companies’ desire to maintain market share and keep vessels full (some carriers are offering steep discounts on shipping rates in an effort to attract customers) will lead to the rate war primarily focused on the Asia-Europe trade, where there is intense competition and overcapacity.
German rail workers have gone on a 50-hour strike, which is expected to disrupt rail traffic across the country. The strike is being led by the EVG union, which represents around 160,000 rail workers and is in response to ongoing disputes with rail operator Deutsche Bahn over pay and working conditions.
The proposed acquisition of a 24.9% minority stake in China's Cosco Shipping Ports by CTT Holdings has received further regulatory approval. This development is expected to concentrate the flow of goods between Asia and Europe, which is significant considering China’s status as Germany’s and the Port of Hamburg’s primary trading partner.
Routes & services
- The US trucking sector is facing a number of challenges: a shortage of drivers, rising fuel costs, and supply chain disruptions. Despite a recent increase in demand, the industry is struggling to keep up with capacity, leading to higher prices for shippers. The solution is to address the problem of labor shortage and invest in technology.
- Ukraine has joined Lithuania's free rail program, which allows shippers to use Lithuanian Railways' network to transport goods to other European countries without paying additional fees.
- A new rail connection has been established between Gliwice Port in Poland and Marckolsheim in France.
- The trade between Russia and China has increased by 41.3% in the first quarter of 2023, with rail transport playing a significant role in this growth. China's Belt and Road Initiative and Russia's Trans-Siberian Railway have helped to facilitate this increase.
- Rail Cargo Group (RCG) has launched a new rail connection between Vienna and Kyiv.
- China and Pakistan have agreed to include Afghanistan in the China-Pakistan Economic Corridor (CPEC), a major infrastructure project under China's Belt and Road Initiative. The move is part of China's efforts to expand its economic influence in the region and strengthen its ties with neighboring countries.
- China-Europe rail freight services for importing meat products have resumed after a temporary suspension due to COVID-19 restrictions.
Other
- The tank container market has seen a revival in demand post-pandemic, driven by increased trade in chemicals, foodstuffs, and liquefied gasses. This trend is likely to continue in the coming years, with the tank container industry expected to see continued growth as more shippers recognize the benefits of using tank containers for transporting liquid and gas products.
- Evergreen has come under scrutiny over complaints from shippers regarding delays and service disruptions. The complaints follow a series of incidents in the shipping industry, including the aftermath of Suez Canal blockage and ongoing port congestion issues.
- A new bill has been introduced in the US Congress that aims to address concerns over Chinese influence in US ports and potential cyber threats. The bill would establish a new task force to investigate the potential security risks posed by Chinese investment in US ports, as well as providing additional resources for cybersecurity measures.
- The Georgia Ports Authority (GPA) has received environmental approval for the construction of a new rail hub near Gainesville.
- US import cargo volumes have rebounded (a 5% increase from February 2023), but are still below 2022 levels. The recovery is fragile and uncertain, with ongoing port congestion issues, supply chain disruptions, and rising costs.
- CMA CGM will acquire a controlling stake in Bolloré Logistics in a deal worth $5.5 billion. It will strengthen CMA CGM's position in the logistics industry and allow the company to offer a more integrated and diversified range of services to its customers.
These are only several changes that occurred in more than 250 bn freight rates across 25 million routes with more than 1 million market players. Want to share some news about your company, services, and routes? Just post them on MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations across container transportation & logistics industry. Join to innovate.
Wise or crazy?
Ocean carriers are struggling to maintain their transpacific general rate increases (GRIs) as rates come under pressure due to oversupply and weakening demand. Their efforts to implement GRIs have been met with resistance from shippers, who are seeking lower rates (for example, TPWC contract rates settled at $1,200/FEU for big beneficial cargo owners (BCOs) and $1,350-1,500/FEU for the rest) amid the uncertain economic environment. The uncertainty hits even the strongest: Maersk has reported a net loss of $5 billion in the first quarter of 2023. Its loss is due to a combination of factors, including declining freight rates, rising fuel costs, and ongoing supply chain disruptions.
At the same time, Evergreen is expanding its fleet. It has placed orders for 24 new methanol dual fuel ships. They will be among the largest container ships in the world and will feature advanced technology and design to optimize efficiency and reduce emissions.
Routes & services
- European hauliers remain optimistic about the industry's future despite experiencing a decrease in rates following the holiday season. Hauliers believe that the current rate decline is temporary and that it will stabilize soon due to the increasing demand for goods and transportation services.
- Chinese logistics start-up GFL has launched a new direct logistics link between the South Korean city of Busan and St. Petersburg, Russia.
- LKW Walter and MediaMarkt have shifted to rail for their Germany-Italy services. The companies have partnered with Hupac to offer an intermodal solution that will reduce carbon emissions and transit times.
- A new freight train route linking the North China city of Handan with Tashkent, Uzbekistan is part of the Belt and Road Initiative and aims to strengthen trade ties between China and Uzbekistan. The train will transport goods such as machinery, electronics, and textiles and will cover a distance of over 4,000 km.
- A new rotation of MSC’s India Africa Service (IAS): Mundra, Nhava Sheva, Colombo, Abidjan, Lomé, Tema, Coega, Abu Dhabi, Jebel Ali, and Mundra.
- MSC has launched a new Inter-Asia service called Shikra with the rotation: Qingdao – Shanghai – Ningbo – Kaohsiung – Shekou – Singapore – Colombo – Nhava Sheva – Mundra – Colombo – Port Klang – Singapore – Tanjung Pelepas – Vung Tau – Qingdao.
Other
- The ocean carriers have filed a petition with the Surface Transportation Board (STB) requesting clarification on the rail storage fees charged by the railroads. They claim that the fees charged by the railroads are unreasonable and do not reflect the actual costs of storing containers on rail tracks. The railroads, on the other hand, argue that the fees are necessary to cover the costs of providing storage facilities and services. This dispute could have significant implications for the logistics industry.
- MSC has decided to withdraw from all vessel sharing agreements (VSAs) on the Asia-Europe and transpacific trades. However, most carriers continue to rely on VSAs to optimize their capacity and improve efficiency.
- The Port of Thessaloniki, Greece, has reached a labor agreement with dockworkers after negotiations between the two sides which has put an end to service disruptions.
These are only several changes that occurred in more than 250 bn freight rates across 25 million routes with more than 1 million market players. Want to share some news about your company, services, and routes? Just post them on MAXMODAL, a multimodal network that digitally connects routes and rates worldwide to automate sales and operations across container transportation & logistics industry. Join to innovate.
