The demand is cooling off but the uncertainty makes it difficult to foresee the future of the market. Experts advise waiting until October/November to see if the trend continues. Spot rates keep declining. Another week has resulted in WCI Asia-North Europe component falling 10%, to $6,027 per 40ft, and Mediterranean rates going down to 13%, to $6,419 per 40ft. On the transpacific tradelane, Asia-US west coast rates dropped by 14%, to $3,727 per 40ft.
The picture on the regional level is the same. Rate levels from India to Central/North China, Singapore and Hong Kong have plummeted between 30% and 50% in comparison to summer. The post-COVID rebound period for this local market is over due to the global decline.
Drastically declining spot rates are dragging contract rates along. Some companies are considering reducing prices short-term following the demands of shippers.
The peak season didn’t happen this year, so as the result, capacity from Asia to the US West Coast has fallen to its lowest since winter. Carriers are fighting to shore up falling spot rates, blanking some 1.5m teu of capacity. Despite that, analysts predict that big shipping lines will still bloom and profit thanks to earlier secured long-term rates.
From January 1, 2023 the Suez Canal Authority will increase its transit tolls by 15%.
Container-ship rental is no longer among favorites as rental rates are dropping nearly 30%. Hard to believe that just a couple of months before charter indexes stayed near record highs. Carriers start re-negotiating the prices in an attempt to get discounts or even cancel the orders. Those who already signed their rental payments for ships at very high prices months ago are now realizing how much they have lost in light of the current situation.
Routes & services
MSC has added a new call at the port of Jeddah in Saudi Arabia on its Himalaya Express service.
Instead of rail volumes, huge truck volumes are transiting through INSTC. Why not through rail as originally planned? Until the missing railway link in Iran is not completed, trucking through Iran is the way forward. Resources are needed. The corridor provides access to markets in India and around without the need for shipping across the Mediterranean Sea.
German hub Duisport and the port of Hamburg do not plan to forget the traditionally close cooperation even though the corridor might have been transformed. The cooperation will be discussed at the European Silk Road Summit 2022.
A new postal rail freight service has been launched from Xi’an, China to Malaszewice, Poland.
GTS Logistics (Italy) is launching a new rail freight service to link the southeast (Brindisi) with the north (Bologna).
The new terminal of Teiuș in Romania is now connected to Duisburg. Romania has a chance to play a major role on the Middle Corridor.
MSC and FS Group (Italy) are joining efforts to start a project that will integrate Italian sea and rail services on the basis of intermodal transport. The companies have already established the partnership thanks to services between the Gioia Tauro port and the Padova Interporto terminal.
The new China-Kyrgyzstan-Uzbekistan-Afghanistan corridor is undergoing tests with the first launched containers.
China is also planning to develop rail services with Kazakhstan, as follows from the SCO summit. The idea of opening the third railway crossing on the Kazakh-Chinese border is in talks.
CEVA Logistics has signed a new multi-year agreement with HMM to further facilitate the partnership. Thanks to it, CEVA’s strategic ocean partner network now amounts to 14 global and regional carriers. HMM plan to expand its service network with an eco-friendly container fleet of 1.2 million TEU by 2026.
Other
Port of Manzanillo has resumed its operations after the earthquake.
MSC files opposition to the accusations of failing to produce documents relating to a shipper’s complaint.
Shanghai International Port Group plans to build a new terminal at Yangshan. The new facility will be huge in size amounting to 11.6m teu.
The strikes in Britain persist. The National Union of Rail, Maritime and Transport Workers walkout is planned for October 1.
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