The multimodal network news digest - issue #40

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.