Gridlocked negotiations between APM Terminals and dockworkers in Gothenburg, a new full-year deficit for J. Lauritzen, and a change in strategy at Damco are among this week's top stories on ShippingWatch.
Icelandic container carrier Eimskip booked record-breaking earnings in 2016. Management expects that the positive trends will continue in 2017 where the acquisition of two logistics companies is expected to boost business. The carrier is still looking for more acquisitions.
One of the leading observers and analysts of the international container industry, founder of SeaIntelligence Consulting, Lars Jensen, presents a qualified projection in his new book about what the sector will look like in 2025. ShippingWatch offers an excerpt from the book here.
Last year's contracts between carriers and shippers were signed at historically low prices when comparing contract rates and spot rates. There could therefore be major rate increases in store when new contracts are negotiated in May.
The final months of 2016 brought improvements on the routes from Asia to the east coast of South America. But there is still a long way to go in terms of the activity noted on the routes in the past, writes analyst firm Drewry, warning against excessive optimism.
Container carriers have formed several collaborations for digital solutions within the past few weeks alone – and many more similar arrangements will follow in the first half of 2017 in the search for the best digitalization of container carrier services, says analyst Lars Jensen of Seaintelligence Consulting.
Hard-strained Singapore-based Rickmers Maritime took a big hit on the bottom line in 2016, and in its annual report the company once again calls on its creditors for help in solving the massive financial difficulties enveloping the company.
It will largely be the carriers' ability to idle vessels, postpone deliveries, and maintain the number of scrapped vessels, which will decide the economy of the container industry in 2017, according to Alphaliner, which questions Maersk Line's optimism for the market.
Maersk Line and MSC's South Korean collaboration partner Hyundai Merchant Marine will get a majority of the funds made available by the South Korean government to support the country's shipping and shipyard sector. The funds will be used to order new vessels, among other things.
It was far from a deal between equal partners when the 2M alliance with Maersk Line and MSC entered a cooperation agreement with Hyundai Merchant Marine. "We picked up the carrier from the bus stop where the alliance had left it," says Maersk Line CEO Søren Skou today.
The 2M alliance has upgraded its East-West network, a move characterized by the big changes that have taken place in the sector, according to MSC, including the recent slot agreement with Hamburg Süd. Find the complete, new network below.
Yet another large takeover in the European project cargo sector is shifting the power balance in the sector. Germany's Zeaborn is acquiring Rickmers-Linie and NPC Projects, informs the Bremen-based carrier.
Savings related to the merger of Maersk Line and Hamburg Sud's fleets will be key to reaping the rewards of the acquisition of the German carrier, says Maersk Line CEO Søren Skou. But there will be no job guarantee to the employees, he stresses.
Yang Ming is now, for the first time, drawing on the state-backed credit package launched in Taiwan last year. The container carrier plans to raise USD 54 million by selling new shares to the state and other buyers.
Digitalization emerges as the theme when outlining the reasons behind the nomination of Jim Hagemann Snabe to chair Maersk Group and replace Michael Pram Rasmussen who is stepping down. Here is a portrait of Snabe and a focus on some of the digital challenges.
Maersk Line, the world's largest container carrier and the Maersk Group's core business, emerged from 2016 with a resounding loss, and the group as a whole lost nearly USD 2 billion, mainly due to the offshore segment. Here is an overview of Wednesday's annual report from Maersk.
More than a year of price war in the global container industry has come to an end, says Maersk Group CEO and CEO of Maersk Line, Søren Skou. The Danish container carrier has utilized the price war to win major market shares from competitors, he adds.
State-owned Korea Development Bank has put ten Hanjin vessels up for sale at auction, report local media. Anonymous sources tell Korea Herald that the vessels include two container ships and eight bulkers.
Maersk Line suffered a full-year deficit of USD 376 million against a profit of USD 1.3 billion the year before, according to the Maersk Group annual report. But the container carrier expects a billion-dollar improvement for 2017.
South Korea's largest deep sea carrier, Hyundai Merchant Marine, has initiated talks concerning investments in container terminals in Southeast Asia. "We are targeting to make an operating profit in the third quarter of next year," says CEO Yoo Chang-keun.
The Russian competition authorities have fined Maersk Line USD 12 million for collaborating with its competitors to fix prices on the Russian market. The carrier has confirmed the fine which has been appealed.
Taiwanese carrier Wan Hai has knocked Maersk out of first place in the ranking of the most reliable global carriers. Maersk Line has dropped down to number five on SeaIntel's annual list. However, this is not because the Danish carrier is getting worse at keeping to its schedule.
Perhaps Maersk Line can expect a positive result in its interim report, set for release next Wednesday. The battle for the ballast water market has begun. John Fredriksen struggles with two separate issues. And Shipping and offshore are hurting banks. Read this week's top picks on ShippingWatch.
In the first analysis from a major investment bank ahead of the Maersk Group's annual report on Wednesday next week, Jefferies estimates that the container industry is currently enjoying developments strong enough to send Maersk Line into the black in the fourth quarter after the downturn that characterized the rest of 2016.
A union organizing numerous Hamburg Süd employees now lists four concrete conditions for Maersk Line. Most significant seems to be a job guarantee for the employees at the German carrier. But there will be layoffs, projects analyst.
German shipowners scrapped 98 of 100 retiring vessels on the beaches of India, Bangladesh, and Pakistan. Yard workers and the environment are paying the price for the German shipping industry's financial woes, says Shipbreaking Platform. Find the list of scrapped vessels here.
In spite of large-scale scrapping in the Panamax container segment, at least another 100 vessels will need to be sold as scrap before the market can get back on track, according to a new analysis from Alphaliner.
The three major Japanese container carriers MOL, NYK Line, and K-Line finished the first nine months of the displaced fiscal year 2016/2017 with strained bottom lines in the still-challenging container market.
Growth in the global container fleet has never before been as low as in 2016, according to Bimco. But the shipping association projects that this development will change over the next couple of years, and scrapping activity is also expected to decline.
Analyst firm Drewry has taken stock of what has happened to Hanjin Shipping's vessels. One major container carrier in particular has taken over many of the ships that were formerly part of the now-collapsed company's fleet.
Maersk Line's massive fleet renewal in 2017 and 2018 benefits Singapore and Danish flags with a substantail number of vessels. Another crucial factor will be where Maersk decides to flag its fleet aqcuired from Hamburg Süd.
Maersk Line's acquisition of Hamburg Süd tarnishes the German self-image during hard times as the country's shipping industry is already under pressure, says professor and maritime economist Urlich Malchow, who calls the acquisition "emotionally and symbolically very sad for Hamburg."
For every two container vessels hitting the water in 2017, only one will leave the fleet, projects Alphaliner in a new analysis. Fleet growth in the container market will be more than twice as big as in 2016 and will be driven by the delivery of new, giant container ships.
A newly-established state-owned South Korean shipping unit will purchase Hyundai Merchant vessels for more than USD 500 million and lease them back to the container carrier at favorable charter rates as part of a state aid program.
Icelandic container carrier Eimskip has purchased a majority stake in a Belgian reefer logistics company. The transaction marks the third acquisition in just a few months for Eimskip, which is in the midst of an announced acquisition spree.
Cosco Shipping sold eight container vessels to scrap during the fourth quarter 2016. The ships correspond to a total tonnage of 409,914 dwt, and the youngest in the pack was 15 years old, informs the Chinese carrier.
New container ships with combined capacity of 1.7 million teu are headed to the fleet, according to a new study from Drewry. And the world's by-far biggest carrier, Maersk Line, will take delivery of a majority of the vessels.
The container carriers divided themselves into three major alliances during 2016, and in April these alliances will start to battle it out on the industry's key tradelane from Asia to North Europe. SeaIntel tries to pick a winner among 2M, Ocean Alliance, and The Alliance.
Orient Overseas Container Lines is not in danger of being sold off, say the carrier's owners, the Tung family, in a press release where they deny negotiations with an international buyer. Meanwhile, Cosco has denied placing a bid.
Maersk Line and Hong Kong-based container carrier Orient Overseas (OOCL) are recommended by Drewry as the two carriers which hold the strongest positions in the gradual recovery expected over 2017, where many project that positive earnings will return to the industry.
German shipowners fear that Maersk Line's acquisition of Hamburg Süd will push charter prices even lower. They are now preparing for this scenario, says the director of Germany's shipowners' association to ShippingWatch.
The board of directors of Hyundai Merchant Marine has decided to buy a 20 percent stake in collapsed rival Hanjin Shipping's Total Terminals International, which operates container terminals in Long Beach and Seattle.
Hapag-Lloyd has launched the process to streamline UASC and execute its redundancy plan. Rumors are circulating at the soon-to-be former HQ of the Arabic container carrier in Dubai. ShippingWatch can present the new regional manager who will effectively replace UASC CEO Jørn Hinge.
The new South Korean container carrier SM Shipping, built on the remains of Hanjin Shipping, will have to gather close to 90,000 containers if it wants to launch operations in March. A spokesperson from SM Shipping explains that the carrier is working at full steam to solve the problem.
Dismissals at J. Lauritzen, new cases in the wake of OW Bunker, and the crisis in the oil and gas sector leading to fresh firings at Maersk Oil – these were among the top stories on ShippingWatch this week.
It has now been confirmed that South Korea will get a new deep sea container carrier by the name of SM Line. The carrier is owned by SM Group, which purchased Hanjin Shipping's Asia-US service network last year.
Since the turn of the year, the share price in Orient Overseas Container Lines has skyrocketed by 20 percent, and the group's container carrier looks poised to become the container industry's next acquisition, according to Alphaliner.
Eimskip could be hit by a labor strike unless the carrier is able to settle an agreement with its seafarers before Monday. Negotiations are still underway and the Icelandic carriers remains optimistic about resolving the matter.
Seago Line, which is owned by Maersk Line, is changing the composition of its executive board, which will go from seven members to four. For the carrier, it will be "business as usual" going forward, says Maersk Line to ShippingWatch.
Remarkably few changes to the timetables announced by the two new and major container alliances set to launch in April 2017 come as good news for the major North European ports, of which several were hit by fewer calls last year, writes Drewry.
Investment bank Jefferies believes that Maersk Group's new strategy will create more value for shareholders. There are good opportunities for synergies in the transport division, while future divestments of the energy companies could free up billions of dollars, according to the bank.
Interview with Maersk Tankers' new CEO, Christian Michael Ingerslev, a new Asian container alliance, a surge in dry bulk shares, and rigs ready to be scrapped in the North Sea were some of this week's top stories on ShippingWatch.
Spot rates on the 11 major East-West routes between Asia and Europe climbed to a 20-month high this week, according to Drewry's World Container Index. Further rate increases are expected in the week to come.
SM Group, which is in the process of acquiring Hanjin's route network between Asia and the US, is considering establishing a new container carrier under the name SM Shipping. It has until now been thought that SM Group would place the network under its carrier Korea Line.
Two container vessels from APL and Wan Hai have collided off the port Pasir Guadang in Malaysia late Tuesday, report several media. Upwards of 300 tons of bunker oil were spilled from one of the vessels.
With the prospects of a prolonged trade slowdown and continued low freight rates, Asia's container lines look set for further consolidation in 2017, projects Hyundai Merchant CEO. Analysts point to possible Taiwanese container merger.
The board of directors at Korea Lines' owner, SM Group, has voted no to the acquisition of Hanjin Shipping's Asia-US network. But the transaction could still be cleared as it is not contingent on shareholders' approval, informs a spokesperson.
Hyundai Merchant Marine (HMM) is entering a new alliance with the two South Korean carriers Heung-A Shipping and Sinokor on intra-Asian services after recently failing in attempts to be included in the 2M alliance between Maersk Line and MSC.
Increasing pressure on all business segments meant that big decisions had to be made at Maersk Group's headquarters in Copenhagen, but stock market developments suggest that the outcome has been positive.
The world's two largest container carriers have expanded their Pacific network, most recently on Dec. 26, causing problems for ailing South Korean partner Hyundai Merchant Marine, which according to Alphaliner is now left with an unrealistic growth plan.
Mitsui OSK Lines was blamed for a dramatic 2013 wreck, Hyundai Merchant Marine lashed out at Maersk Line, while Kristian Mørch talked about his turnaround of Odfjell this week on ShippingWatch, which also brought news about Thorco, Rickmers Maritime, and the oil sector.
Bondholders' rejection of Rickmers Maritime's restructuring proposal for the crisis-struck carrier could mean "a long and painful liquidation of the company," says Søren Andersen to ShippingWatch. Divestments are a necessity.
The smaller and independent container carriers outside the alliances have a combined market share of 13 percent on the trade routes between the Far East and North America, and this could undermine attempts to increase the rates.
A change of attitude has emerged in the container sector where carriers have realized that there is no use in offering rock-bottom prices, says Evergreen's chairman. He anticipates higher rates in 2017.
German owners continue to scrap vessels on a large scale after the record year 2016, a year which, according to Clarksons, will be surpassed this year. Yet the fleet is still expected to grow by three percent.
The EU Commission will decide on Maersk Line's acquisition of Hamburg Süd in late March, reports Ritzau Finans in reference to Bloomberg News. The transaction will still need to be cleared by additional regulators.
Several container carriers have received penalties in China for failing to provide correct information about their freight rates to the Chinese ministry of transports. The carriers fined include CMA CGM and Hamburg Süd. But the size of the fine is fairly modest.