Newsletter – August 4, 2023

OCEAN FREIGHT UPDATES

Sinking rates and new capacity create crashing waves in box line financials

theloadstar.com
The deluge of new containership deliveries continues, the extra capacity driving down freight rates and prompting carriers to improvise new strategies as they face a depressing financial outlook .
According to Clarksons Research data, the container fleet will have grown by 7.3% by the end of the year, almost double the average of the previous four years, and next year this number is barely better, at 6.6%. Read more here.

Report card published on carrier and retailer shipping emissions

splash247.com
A report card released by the Ship It Zero campaign suggests carriers are better than retailers when it comes to tracking their shipping emissions. The detailed report will make bad reading however for Evergreen, Hapag-Lloyd, Pacific International Lines and Yang Ming who all scored the rock bottom grade of F.
Ship It Zero’s Shipping Decarbonization Report Card is designed to evaluate major retailers and shipping carriers on their commitment to rapid decarbonization and development of zero emissions fuels for maritime shipping. Read more here.

GROUND AND RAIL FREIGHT UPDATES

Maritime and rail carriers need to be more collaborative, say shippers

theloadstar.com
Carriers need to become more collaborative partners in their customers’ supply chains and recognise that “it’s not all about transport”.
Director of the Global Shippers Forum James Hookham (pictured) told The Loadstar the experience gained during the pandemic had highlighted “a level of detachment” between, particularly maritime and rail, carriers and the needs of their customers. Read more here.

Volatile conditions see Maersk raise profit expectations while warning of weaker H2

splash247.com
Maersk became the latest carrier to post solid Q2 results today with an EBITA of close to $3bn with plenty of data suggesting liner fortunes are temporarily back on an upward trend.
Maersk’s $2.9bn EBITA for Q2 saw the Danish carrier raise its full-year forecasts, while warning of a “weakened” second half market outlook. Read more here.

INTERNATIONAL BUSINESS – GOVERNMETN UPDATES

Warning to forwarders: a perfect storm on the horizon for US supply chains

theloadstar.com
The US supply chain faces several challenges, including decreasing product demand, the war in Ukraine and rising inflation. However, a potential UPS strike – along with a chance that Yellow Freight goes insolvent – could create a perfect storm, with disastrous economic consequences. Read more here (login required).