Xeneta predicts another difficult year for container shipping
Xeneta's Ocean Outlook 2025 report foreshadows a challenging year ahead for container shipping and warns that heightened geopolitical risks could disrupt global supply chains. “Red lights are flashing on the geopolitical dashboard and it would be foolish to ignore them,” Zenetta warned. Also read: US East Coast port strikes to cause major supply disruptions in 2025 If 2024 is marked by conflict in the Red Sea, similar threats may persist in 2025, with no signs of stability allowing container ships to safely return to the region. The detour around Africa has stretched TEU demand, and while new ships and slower TEU volume growth may help relieve some of the pressure, they won't be able to make up for another major disruption. Geopolitical concerns include the possibility of an escalation of conflict in the Taiwan Strait, potential unrest in Bangladesh and worsening tensions in the Middle East, particularly around the Persian Gulf. Key market trends in 2025 Xeneta noted that spot…
China’s container trade and leasing rates to fall in the future
This month’s China market update is filled with developments that threaten to disrupt supply chains within China and from China to key markets such as the United States and Europe. See also: China's container trade and leasing markets send mixed signals Typhoon causes delays in berthing times and container operations at major Chinese ports Last week, China was hit by its worst typhoon in 75 years, which made landfall on its eastern coast. Hapag-Lloyd reports that vessel calls at Shanghai are currently delayed by 36 to 60 hours, while calls at Ningbo are delayed by 24 to 48 hours. This bottleneck is expected to intensify further as Typhoon Prasang approaches, potentially exacerbating an already tense situation. Several ports including Ningbo and Shanghai have announced the suspension of container operations. East Coast labor strike affects U.S.-bound goods On the US side, the ongoing threat of strikes at East Coast ports has created uncertainty. These strikes are expected to affect operations at…
Impact of impending strike on US container shipping
September is traditionally one of the busiest months for containerized imports into the U.S. as companies prepare for the holiday rush, a boost to the peak shipping season. However, this year has presented an unprecedented combination of challenges that could severely impact supply chains. Potential strikes, natural disasters, and tariff uncertainty are converging to create a highly volatile environment for global trade. This is also causing retailers to place orders forward, resulting in ample inventory in the U.S. See also: U.S. freight volumes steady, container prices not plunging In August 2024, U.S. containerized cargo imports increased 12.9% year-on-year, with major ports handling nearly 2.5 million TEUs. While this reflects strong freight demand, it also heightens concerns about an impending labor strike on October 1. "The potential for a strike at ports on the U.S. East Coast and Gulf Coast adds uncertainty to container shipping professionals doing business in the United States," Christian Roeloffs, Co-founder and CEO of Container xChange. For…
Rising freight rates drive global container shipping profits soar
The global container shipping industry posted a sharp rise in profits in the second quarter, with revenues exceeding $10 billion, helped by record cargo volumes and rising freight rates. The growth came after disruptions to Red Sea shipping, a recent analysis showed. Also read: CH Robinson: How shippers can prepare for potential ILA strikes amid growing disruption in North American shipping landscape Net revenues at major container shipping companies, including Denmark's AP Moller-Maersk A/S and China's COSCO Shipping Holdings Co., nearly doubled compared with the first quarter of this year. These profits even exceeded the $8.88 billion in the same period of 2023, as highlighted in a report published on Saturday by industry expert John McCown. McCown expects profits to continue to rise this quarter given the strong performance of international trade. The container shipping industry, which transports 80% of the world's goods, experienced a boom during the pandemic due to strong consumer demand and supply chain disruptions. However, the…
TT Club urges global supply chain to respond to growing
In response to a recent series of container ship fires, TT Club, an international freight and logistics insurance provider, called on the global supply chain to increase awareness and responsibility when handling dangerous goods. Four major incidents involving container ships in the past four months, two at sea and two in ports, have highlighted the urgent need for accurate cargo classification, packaging and communication. See also: TT Club highlights ongoing efforts to prevent container losses at sea Tragic incidents include the Northern Juvenile in the South China Sea, the Maersk Frankfurt in the Indian Ocean, and more recently the MSC Cape Town III in Colombo and the YM Mobility in Ningbo. Peregrine Storrs-Fox of TT Club said investigations indicated that potentially explosive chemicals and ignition agents, such as lithium-ion batteries, may have been the cause of at least two of these incidents. These incidents highlight the importance of careful handling of cargo and communication at every stage of the supply…
CH Robinson: How shippers can prepare for a potential ILA
CH Robinson’s North America Ocean Director Mia Ginter takes an in-depth look at the upcoming ILA East Coast and Gulf Coast port strikes and how shippers can prepare now. While there is still hope that a strike can be avoided, labor issues in Canada and ongoing ocean disruptions could exacerbate the impact of a strike for shippers that don’t have a contingency plan in place. Here’s an overview of the potential strike and what shippers can do now to strategically prepare for it: See also: East Coast and Gulf Coast ports face strike threats as ILO suspends labor talks As master contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX) continue to advance, the likelihood of a strike at ports along the U.S. East and Gulf Coast is growing. With less than two months until the current contract expires and a potential strike begins, shippers should begin preparing now to avoid major disruptions. The…
U.S. consumer spending remains stable, with no signs of an early peak
Policy uncertainty in Europe and the United States has a negative impact on trade: “In a more uncertain environment,” a World Bank report states, “firms may choose to postpone investment and export decisions, and consumers may cut back on spending.” The latest data from the U.S. Bureau of Economic Analysis (BEA) shows no sudden increase in U.S. consumer spending, supporting the view that the early peak season for container cargo is driven more by frontloading of imports rather than increased consumer demand. Also read: US consumer spending trends reshape container shipping dynamics © Ocean Intelligence According to Sea-Intelligence, year-over-year growth rates for “durable goods” fell sharply in early 2024, and although they have recovered, they have not yet reached 2023 levels. In contrast, spending on “non-durable goods” has been showing consistent growth since late 2022, but there was no unexpected spike in consumer spending in the late spring and early summer of 2024. The only significant increase in consumer spending…
Key measures to reduce railway disruptions in Ningbo
Container xChangeAn online container trading and leasing marketplace, A warning to the global container trade and leasing community of the serious consequences of the recent Yang Ming Marine container ship explosion YM Mobile The accident, which shut down one of the world's busiest container terminals, is expected to have major knock-on effects on global supply chains, especially on key trade routes out of Asia. See also: Dangerous goods container explosion causes fire at Ningbo Port; no casualties reported On August 9, 2024, a container carrying dangerous goods was YM Mobile The ship was moored at Ningbo Beilun Phase III Terminal at the time. The explosion involved organic peroxide materials, which resulted in the closure of the terminal until further notice. “As a result of this closure, the Port of Ningbo is no longer operating, which will exacerbate supply chain disruptions caused by Typhoon Gemi in July.” Christian Roeloffs, Co-founder and CEO of Container xChange. Christian Roelofs The urgent need to…
Explosion of dangerous goods container at Ningbo Port caused fire; no
An explosion occurred today in a hazardous materials container aboard a cargo ship docked at China's busy Ningbo port. Fortunately, no casualties have been reported so far. The explosion occurred on board the YM Mobility vessel, causing a fire which has now been brought under control. All crew members on board were evacuated safely without incident. The Liberian-flagged vessel arrived in Ningbo after docking at the port of Shanghai, according to tracking data from MarineTraffic. The ship was docked at Beilun Container Terminal 2 when the explosion occurred, according to a post on Chinese social media by state-owned port operator Ningbo Zhoushan Port. Yang Ming and the port operator said the exact cause of the explosion was unclear. Yang Ming noted that the container ship owner had declared that the cargo required dry refrigeration and no electricity was required, a translated statement from the company said. Despite the explosion, the incident did not appear to have a serious impact on…
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