Industry News
A selection of the most relevant facts within the shipping and container industry.
Price war also responsible for box rate slump.
Patrick Hagen - November 14, 2008
A BATTLE for market share is contributing to the plunge in Asia-Europe freight rates that have plummeted to all-time lows, a senior industry executive claimed Friday.
The sharp slowdown in demand growth is not the only reason for falling freight rates, said NYK Line Germany managing director Klaus-Peter Barth
Bearing a heavy burden.
Janet Porter - November 6, 2008
Container shipping is taking a pounding: faltering cargo demand has slashed freight and charter rates and new deliveries are set to swell fleet capacity. Add to this, Brussels’ moves to restrict consortia agreements. Just how much worse can things get for this beleaguered sector?
NEVER in the half century of containerisation has the industry faced such a bleak future. Ocean freight rates are under unprecedented pressure on most routes as cargo demand falters, with some now at record lows. Charter rates are rapidly heading towards levels that would push earnings for newbuildings below operating costs.
How IT can cut carbon emissions
October 15, 2008
Information and communications technologies are becoming a major source of greenhouse gas emissions. However, our research suggests that these technologies could help to eliminate up to 15 percent of the world's greenhouse gas emissions—five times more than our estimate of the emissions they may cause.
Ratings coup buoys Panama Canal plans
Rainbow Nelson - September 12, 2008
The Panama Canal Authority has been awarded an investment-grade rating by Moody's Investors Services, an important breakthrough in its quest to secure loans of up to $2.3bn for the waterway's expansion.
Moody's said it was starting its coverage of the government-owned entity with an A2 credit rating, a rating above that of the Panamanian government, the principal shareholder in the 94-year old waterway.
"The A rating classifies the ACP as upper-medium grade and subject to low credit risk, and reaffirms Panama's growing presence in the global marketplace," the ACP said.
Shipping may be added to EU emissions plan
September 11, 2008
A key lawmaker steering reform of the European Union’s emission trading scheme through its parliament said yesterday she had proposed to include shipping in the scheme from 2013, reports Reuters.
That would be a surprise, and not part of earlier proposals made by the European Commission. The European parliament is preparing to vote on changes to Europe’s flagship weapon against climate change.
Box lines face painful 18 months ahead, says UBS
Michelle Wiese Bockmann – September 5, 2008
Container lines are set to report losses for the next 18 months.
MANY container lines are set to report losses for the next 18 months, as poorer trading conditions exceed previous market downturns seen in 1997 and 2001, according to investment bank UBS.
The massive new building orderbook will see too many boxships entering trades at a time when a decline in the US and some European housing sectors is compounded by the global credit crisis.
Christmas cancelled for box lines
Janet Porter - August 15th, 2008
HOPES of a summer respite for the container trades have been dashed as efforts to impose a peak season surcharge on Asia to Europe cargo fizzle out.
Members of the Far Eastern Freight Conference and independent carriers had planned to impose a levy of $158 per teu at the start of August.
But then a few lines decided that the market was not strong enough to take the extra rates usually charged at this time of the year during the pre-Christmas cargo surge. Very quickly, the rest of the industry followed suit, Lloyd's List has learned.
