The multimodal network news digest - issue #25

2022 has been extremely successful for the shipping lines with their over-the-roof profits, but 2023 does not seem to promise the same numbers. Experts predict the companies can count on 5% of those mega revenues. However, it does not mean that the container shipping sector will be down bad. Congestions are easing and operational delays are becoming less frequent. 

As for the rates, they increased from Asia to North Europe by 10% to $1,874 per teu. Drewry’s World Container Index showed a slight bounce at $2,135. Nevertheless, the demand remains weak with no sign of rebound following post-holiday pressure as carriers struggle to fill their ships. Some services have already seen “ghost ships” for the sake of maintaining sailing in the loops.  The cancellation of sailings had been at a record high (17%). The possibility of a surge in demand depends fully on how long the current market downturn will last. 

Another distinguishing factor of 2023 is the unusual drop in box rates in China despite the looming Chinese New Year that traditionally pushes the prices higher. On a global scale, both spot and average rates continue to fall. 

Therefore, more and more companies start reconsidering their contracts and working towards provisioning softer, more flexible conditions. Lines are adopting a “case-by-case” approach depending on shippers' requests. This trend is expected to last. 

Routes & services

• GTS will double the frequency of the trains between Segrate and Marcianise in Italy from Jan 23. 
• Turkish Sidra Line has launched a new feeder service from Istanbul to Novorossiysk, Russia. Two chartered ships in the 350 teu size will be used weekly. 
• Delta Rail will start a new rail freight service between Chalon-sur-Saone, in eastern France, and Duisburg from Feb 28. Thanks to the company, the opportunities to connect Duisburg and the North of France will properly develop. 
• If before the electronic parts produced in Vietnam were delivered to Central Asia by sea, now they will be transported via rail thanks to the first route from Vietnam to Kazakhstan. This new route can compress the itinerary from Vietnam to the Central Asian market to about 25 days.
• Swissterminal starts new connections from Frenkendorf and Niederglatt, in northern Switzerland, to Rotterdam. The weekly roundtrips from the two Swiss hubs to Antwerp will also increase. 
• ONE will upgrade its Maputo/Mombasa India Middle East service to a weekly schedule. The rotation remains unchanged: Jebel Ali – Mundra – Mombasa – Maputo – Jebel Ali.
• From February, ONE will also start a new service connecting Arica and Iquique (Chile) from Callao (Peru). The rotation will be: Callao – Arica – Iquique – Callao.

Other 

• Since for the past week the rates on the transpacific lane remained unchanged, carriers expressed hopes for a market recovery. However, more cautious opponents warn that it is unclear when the surge in demand will happen. Current market conditions make it difficult to predict but what is certain is that 2023 will be very different from 2022. 
• Ship robbery in Asia is on the rise. In 2022 it jumped by 4%. Regional authorities remind ship masters and crews to report all incidents to exercise vigilance. 
• Cosco’s entry at a Hamburg container port is reported to be almost completed. Cosco is not expected to gain any exclusive rights to the terminal or access to strategic know-how.
• Maersk has acquired the Danish company Martin Bencher Group specializing in non-containerized project logistics (with an emphasis on the Health sector) and global operations. 
• Shanghai achieved the best yearly performance. It is the world’s busiest port with 43.19 million TEU moved in 2022. 
• CMA Terminals and Global Ports Investments and PLC (Global Ports) will swap their cash-free shares as part of CMA CGM Group’s divestment of shares in Russia.

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.