Excerpts from the Financial Times:
Shares in Maersk fell as much as 7 per cent on Wednesday as it reported only its second annual loss in seven decades and halved its dividend to try to protect its investment grade credit rating.
Maersk recorded a net loss of $1.9bn for 2016, compared with analysts’ expectations of […]
From Hellenic Shipping News:
Container shipping costs, which radically plunged, now shows signs of recovery after the fall of Hanjin Shpiping Co. The strategy of Maersk Line, the world’s largest shipping group which cuts down shipping fees until its competitors fall down and pick fruit when they are liquidated, seems to be working. As […]
From the Journal of Commerce:
Backed against a wall of deep losses and weak demand but emboldened by a doubling of spot rates since mid-2016, container lines are warning trans-Pacific shippers of significantly higher spot and contract rates next year. Shippers, however, aren’t convinced the fundamental drivers around pricing have changed, setting the stage for […]
Excerpts from Bloomberg:
Hanjin Shipping Co. is hardly a bellwether in the world of container movers. As lenders halt all support this week, the South Korean company is now emerging as a symbol of the slump that has plagued the industry since the global financial crisis.
Creditors led by Korea Development Bank will […]
Excerpts from the Lewiston Tribune:
Westwood Shipping [made] its last call on the Port of Portland Saturday. It was the only container carrier that stopped regularly at the Oregon port and carried a fraction of the volume major shippers hauled. The last of those, Hapag-Lloyd, departed a year ago.
Low rates and overcapacity in the […]
Drewry Maritime Research asks: will carriers repeat the same tactics that saved them in 2009, or will they wait until things reach boiling point, as the risk of a double dip recession rears its head?
Today’s market does share some similarities to the 2009 crisis: carrier staff redundancies, ultra-low freight rates and the rapid increase […]
Plagued by overcapacity and ongoing losses, the container shipping industry is rife with talk of potential mergers and acquisitions. The consolidation of the highly fragmented industry is long overdue, especially when contrasted with such other heavily capitalized transportation sectors as railroads and airlines.
The possibility that a new wave of M&A may be imminent was […]
”The most dramatic symbol of these problems is that an 18,000 container Triple-E freighter, one of the largest (and therefore theoretically most cost-efficient) container ships on the planet, was idled by Maersk in late October.” — Fortune
From an article titled ”Maersk’s terrible earnings report shows ocean shippers are sinking themselves” in Fortune Magazine:
Danish conglomerate A.P. Møller-Maersk A/S on Friday cut its full-year profit guidance, saying global demand for container shipping — the conglomerate’s biggest contributor — has been weaker than expected.
The company said it expected underlying earnings to come in at $3.4 billion this year, compared with its previous guidance of $4 billion, based on a […]
Excerpts from the Wall Street Journal:
The Wall Street Journal reported the impending Cosco order in April. At the time, some senior company executives had reservations about following bigger competitors—including Maersk Line, a unit of Denmark’s A.P. Møller-Maersk A/S, Switzerland-based Mediterranean Shipping Co. and France’s CMA CGM SA—that already operate dozens of such behemoths.
Excerpts from the Journal of Commerce:
One major global shipper compared the container shipping freight market to a car dealership. “The basic product is not profitable, but if you can sign the customer up for a sufficient number of additionals, you’ll survive,” he told JOC.com.
[S]urcharges contained, among other items, terminal handling fees at both […]
Cosco has reportedly ordered nine 20,000-teu ships, with an option for four additional vessels of the same size, according to several news media.
The ultra-large container ship newbuilding order comes just days after Maersk Line ordered 11 similarly-sized vessels of 19,630-teu each. That order came after CMA CGM confirmed it had ordered six 14,000-teu ships, […]
From today’s Wall Street Journal:
The world’s biggest container-shipping operators are making an expensive bet by committing billions of dollars in giant vessel orders. So far, that bet is a losing one as freight rates hover around record lows and demand for ocean shipping is weak.
The already big operators are looking to grow and […]
Container shipping demand is projected to grow 3-5% this year over 2014, but freight rates are expected to be on a slight decline, according to Lars Mikael Jensen, chief executive of Asia Pacific region at Maersk Line.
On the supply side, growth is anticipated at 5-7%, putting demand and supply growth close to the same […]
From The Loadstar:
Aggressive scrapping, a dearth of newbuilds and port congestion has given the Panamax containership sector a welcome boost and pushed daily charter rates to their highest level in four years.
Meanwhile, the current port congestion crisis afflicting the US west coast is providing a further boost to the sector. Although Panamax ships […]