• 2016 September 20 15:16

    Xeneta says shipper community reeling from Hanjin aftershocks

    Oslo, Norway based Xeneta says global community of shippers is reeling from the impact of the demise of Hanjin Shipping, the world’s seventh largest containership operator. Xeneta crowd-sources shipping rate data from more than 600 major international businesses, many of whom have now been hit by stranded inventory, rising prices and – in a shock development for a sector struggling with structural overcapacity – claims of under-capacity from the remaining liners.

    “The Hanjin saga has the potential to redefine the container shipping landscape,” comments Xeneta CEO Patrik Berglund. “For an industry that has struggled with collapsing rates, severe overcapacity (8.1% at the beginning of 2016) and devastated profit margins – with even Maersk down 90% year on year for Q2 - this marks an opportunity to finally regain the upper hand at the negotiating table.

    “Hanjin’s failure resulted in an immediate capacity reduction of up to 8% in transpacific and Asian-European routes and this gives competitors an obvious fillip. We’ve seen 2M (MSC and Maersk) moving to launch a new transpacific service, while the feedback we’ve received from our community details rising rates, stretched capacity, claims of broken contracts – when agreed at low prices – and a need to go to the spot market, where quotes of between one and three months are not being contracted.

    “In many ways the market has been turned on its head. Now it’s the liners flexing their muscles again. The question is, how long will this last?”
    Berglund says that for many of the firm’s community it’s the stranded inventory that’s the number one priority, with an estimated USD 14.5 billion of goods marooned on vessels worldwide, belonging to some 8,300 different companies. Many of Xeneta’s customers have “hundreds of containers” stranded at sea.

    That’s the immediate concern, but, as he explains, the long-term is also causing consternation:
    “Short term rates were already rising on the main Far East Asian to North European port route, the world’s most important trade channel, since hitting lows in March. Then the market average price for a 40’ container stood at USD 552, in late August it climbed to USD 1172 and now its USD 1834. Transpacific routes have climbed from USD 839 in March to USD 1887 now.

    “As the year comes to an end the tendering/bidding season starts for many European shippers. This will be a wake up call for the large-volume shippers who have maybe become accustomed to basking in long-term contracts at low rates. In a changed market the carriers won’t be as accommodating. Last term’s prices will suddenly be a distant memory.”

    The container segment has been stuck on a rollercoaster for years, Xeneta argues, and this latest corkscrew will do little to ease the sense of fluctuating rates and jolts in supply and demand.

    “Stability is sorely lacking,” concludes Berglund, “and Hanjin could be the tip of the iceberg, as lenders tire of propping up players that have been limping along in this difficult market for too long. For the time being the carriers will enjoy exploiting the change of fortunes and their overcapacity gives them the means to step in and fill Hanjin’s hole. But this isn’t the long-term fix the industry needs.

    “In this uncertain environment prices will continue fluctuating. That means shippers, freight forwarders and carriers need the latest data, from advanced software platforms like ours, to stay on top of developments and get the right price for their cargoes.
    “There’s much more to come in this dynamic segment. I’d advise everyone to stay tuned.”

    About Xeneta
    Xeneta is the leading ocean freight price comparison and shipping market watch index transforming the shipping and logistics industry. Xeneta’s easy-to-use yet powerful reporting and analytics platform provides shippers and freight forwarders the software data they need to compare their shipping prices against the world's largest database of contracted rates – reporting live on market average and low/high movements. Xeneta’s shipping indexes comprises of over 12 million contracted rates and covers over 60,000 global trade routes enabling informed decisions with actionable intelligence optimizing companies’ logistics procurement. Xeneta is a privately held company and is headquartered in Oslo, Norway.




2020 July 10

13:19 GTT receives an order from Hudong-Zhonghua Shipbuilding for the tank design of three new LNG carriers
13:01 Sredne-Nevsky Shipyard commenced making hull of yet another minesweeper of Project 12700, Aleksandrit
12:38 Throughput of Murmansk Sea Fishing Port fell by 12.7% in HI’2020
12:13 Nuclear-powered icebreakers of Rosatomflot assisted 462 ship calls in winter-spring navigation season
11:35 Construction commences on Austal's largest ever ferry
11:04 GIWACAF launches webinar series on oil spill preparedness and response
10:46 FSUE “Rosmorport” takes award-winning place in the annual sailing regatta
10:32 LR to develop structural digital twin for Bluewater FPSO Glas Dowr
10:22 Rosmorport changes tariffs on berth assignment services in Astrakhan and Olya seaports
09:59 Bunker prices are slightly up at the Port of Saint-Petersburg, Russia (graph)
09:37 Oil prices decrease amid concern over demand recovery rates
09:20 Baltic Dry Index as of July 9
09:11 MABUX: Bunker market this morning, July 10

2020 July 9

19:03 OOCL receives Gold Award from the HKAEE for the fourth time
18:10 Aquila Power Catamarans announce a luxuriously versatile new model
17:55 Tallink Grupp’s vessel Sailor to operate on Paldiski-Kapellskär Route from Sunday
17:31 Bunker prices are flat at the Far East ports of Russia (graph)
17:28 Port of Rotterdam to start trial with PIN-free container handling
17:18 Damen holds keel-laying for Port of Auckland’s fully electric RSD-E Tug 2513
17:12 Diana Shipping announces time charter contract for m/v Selina with ST Shipping
16:44 "K" Line participates in JV for FPSO owning and chartering business offshore Brazil
16:23 Jan De Nul Group has started offshore installation activities in Taiwan
16:06 Port of Liepaja throughput in 6M’2020 fell by 15.6% Y-o-Y
15:48 Russia remains in Paris MOU’s White List
15:24 PD Ports submit response to national Freeport consultation
15:03 Khabarovsk Territory Governor Sergey Furgal detained by officials of Russia’s Investigative Committee
14:39 Aibel awarded Oseberg portfolio agreement
13:47 Ukraine is still on Paris MOU’s Black List
13:22 MOL announces joint development of energy-saving rudder
12:50 Container shipments on Russian Railways’ network up 15% in 1H 2020
12:17 Cargo transhipment in North Sea Port falls by more than 11% in first half of year
12:07 ABB teams up with Yinson on offshore oil and gas project in Brazil
11:20 FPSO operators could save £15 million per asset on maintenance
10:42 The CMA CGM Group commits to fight illicit trafficking in protected species and tightens its shipment control procedures
10:10 Unifeeder contracts We4Sea for fleetwide vessel performance monitoring
09:38 MABUX: Bunker market this morning, July 09
09:29 Oil market sees mixed price movements
09:13 Baltic Dry Index as of July 8

2020 July 8

18:11 Carnival Cruise Line sets ship delivery changes and related deployment plans
17:50 POWERGLOBE seeks for 10 years LNG vessel charter-agreement
17:27 Maritime partners unveil Autonomous Guard Vessel
17:03 THE Alliance announces COVID-19 response measures for August 2020
16:48 SaR operation in Singapore: man overboard incident
16:20 Throughput of Rostov-on-Don port in 6M’2020 grew by 10% Y-o-Y
16:13 Maritime industry calls for EU political leadership on seafarers
15:23 Port of Antwerp total throughput down by 4.9% in H1 2020
14:03 Wärtsilä introduces the system, designed to reliquefy boil-off gas onboard gas carriers and LNG bunker vessels
13:45 RF State Duna adopts a package of laws on privileges in the Arctic
13:12 PD Ports wins major pipeline contract with Global Manufacturer at Hartlepool
12:44 DCSA publishes standards for digital exchange of operational vessel schedules
12:18 Germany takes over HELCOM chairmanship
12:11 Seanergy Maritime announces agreement to acquire a Capesize vessel with prompt delivery
11:55 Russian Fishery Company fleet renewal to reduce carbon footprint by 50%
11:29 Pella Shipyard delivers patrol boat of Project 03160
11:04 Austal delivers first of two 118 metre trimarans to Fred. Olsen Express
10:43 Barcelona Cruise Port obtains the 'Safe Travels' Stamp, as safe infrastructures preventing COVID-19
10:32 Throughput of Rosterminalugol in HI’2020 grew by 10% YoY
10:04 ESPO says EU Taxonomy should align with already defined sectoral sustainability criteria
09:40 Oil prices continue decreasing
09:37 MABUX: Bunker market this morning, July 08