IMO chief urges action against Houthis Red Sea attack
Armed men stand on the beach on December 5, 2023, as the Galaxy Leader merchant ship, which was seized by Yemen's Houthi rebels last month, is anchored off the coast of Salif, Yemen. Reuters/Khaled Abdullah As the Houthi armed maritime threat continues to escalate, International Maritime Organization (IMO) Secretary-General Arsenio Dominguez concluded a diplomatic visit to major Red Sea countries. The crisis began with the hijacking of the MV Galaxy Leader in November 2023 and has now been the subject of more than a hundred drone and missile attacks on ships in the region, severely affecting global trade and seafarer safety. The attacks, reportedly triggered by the ongoing Israel-Hamas conflict, have resulted in four deaths, two sinkings and extensive ship damage, prompting many shipping lines to reroute around the Cape of Good Hope, a costly and time-consuming route detour route. Also read: Houthi attack latest: East-West trade braces for rising freight costs in 2024 Dominguez, whose diplomatic mission includes high-level…
Hapag-Lloyd and Maersk raise profit forecasts on Red Sea
Hapag-Lloyd followed future alliance partner Maersk in raising its profit outlook for 2024, citing higher-than-expected demand and rising freight rates despite operational challenges. Also read: Maersk predicts Red Sea conflict to lead to prolonged trade disruptions in 2024 The German shipping giant announced preliminary results for the first nine months of 2024, with group EBITDA of approximately $3.6 billion (€3.3 billion) and group EBIT of approximately $1.9 billion (€1.8 billion). "Given that the current business is characterized by stronger-than-expected demand and higher freight rates, we are revising our earnings outlook upwards for 2024, despite higher costs from vessels around the Cape," the company said in its 2024 report. statement. Upgrade financial guidance Hapag-Lloyd now forecasts that its full-year group EBITDA will be between US$4.6 billion and US$5 billion, up from its previous estimate of US$3.5 billion to US$4.6 billion. Group earnings before interest and tax are expected to increase to US$2.4 billion to US$2.8 billion, compared with the previous forecast…
Global shipping faces turmoil: choke point disruption
The shipping industry is navigating dangerous waters, with critical shipping chokepoints facing unprecedented pressure, threatening global trade, food security and energy supplies. The United Nations Conference on Trade and Development (UNCTAD) "2024 Maritime Transport Review" pointed out that the stability of global supply chains is being undermined by geopolitical tensions, climate change and regional conflicts. Also read: Global shipping headaches – droughts and rocket fires Although maritime trade volume will grow by 2.4% in 2023, totaling 12.29 billion tons, the outlook for 2024 is fragile, with growth of only 2% expected. Disruptions at key chokepoints such as the Panama Canal, Suez Canal, Red Sea and Black Sea have led to higher shipping costs, longer transit times and strained logistics networks, putting recovery efforts at risk. Chokepoint disruptions and rising costs The Panama and Suez Canals, vital arteries for global trade, are under intense pressure. By mid-2024, traffic for both had dropped by more than 50%. The Panama Canal is facing…
US Maritime Administration Opens Center Application
The U.S. Department of Transportation’s Maritime Administration (MARAD) recently announced that it is accepting applications for the Center of Excellence (CoE) designation from eligible institutions of higher education, vocational schools, and nonprofit training organizations. The program is designed to prepare Americans for careers in the maritime industry by creating an equitable pathway to high-paying jobs. Also read: U.S. Maritime Administration announces $4.8 million funding opportunity for U.S. Marine Highways project The CoE scheme is a voluntary initiative that works with existing training providers across the country to support the maritime industry by helping to build and maintain a skilled workforce. The scheme also aligns with the government’s goal to promote diversity, equity, inclusion and accessibility in the maritime industry, both for students and professionals. Under section 51706 of title 46, United States Code, the Secretary of Transportation may designate an institution as a "Center of Excellence" if it demonstrates success in maritime workforce training and education. The program is designed…
TIA urges quick resolution of port labor dispute
With the International Longshoremen’s Association (ILA) threatening to strike at East and Gulf Coast ports, the Transportation Intermediaries Association (TIA) is calling for an urgent resolution to the labor dispute as the holiday season approaches. Also read: CH Robinson: How shippers can prepare for potential ILA strikes amid growing disruption in North American shipping landscape Anne Reinke, president and CEO of TIA, highlighted this significant risk, noting that a strike would severely disrupt supply chains, especially during the peak holiday shipping period. “With 43% of U.S. imports passing through these ports, any delays would create bottlenecks for industries ranging from retail to manufacturing,” Reinke said. TIA supports good-faith negotiations between the ILA and the United States Maritime Union (USMX) to avoid shutdowns that could impact the industry nationwide. The association also urges the Biden Administration to intervene, if necessary, to ensure that the U.S. supply chain remains intact during this critical time for businesses and consumers alike.
Strong market demand, Maersk’s second quarter 2024 results strong growth
Maersk maintained its positive momentum in the second quarter of 2024, achieving significant growth in all divisions and significantly improving its financial performance. Also read: Maersk predicts Red Sea conflict will continue until 2024 The company reported an EBIT margin of 7.5%, a significant improvement from 1.4% in the first quarter. Ocean Freight profitability improved significantly, while Logistics and Services continued to expand steadily. The Terminals division also performed strongly. On August 1, Maersk revised its 2024 forecast, citing the expansion of the Red Sea crisis and continued strong market demand as key factors. As supply chain pressures intensified, freight volumes in the ocean freight sector grew significantly and freight rates rose, especially for goods from Asia. However, the Red Sea crisis and the need to reroute vessels south of the Cape of Good Hope led to increased operating costs. Despite these challenges, profitability returned to positive territory. While earnings were lower than in the same period last year, performance…
Explore the latest exhibition information and industry trends at ASAP Expo Magazine. Your one-stop platform, bringing together global exhibition highlights, industry trends and in-depth analysis, to help companies accurately connect with the market and seize business opportunities.
