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Cohesion – Newsletter – October 15, 2018

October 15, 2018

Overall Situation

  1. Top 20 Carrier Capacity Analysis
Rank Operator Total Owned Chartered Order Book
TEU Ships TEU Ships TEU Ships % Existing TEU Ships % Existing
1 MSK 4,041,296 719 226,8730 312 1,772,566 407 43.9% 73,606 6 1.8%
2 MSC 3,251,999 516 109,0566 194 2,161,433 322 66.5% 332,052 18 10.2%
3 2,810,028 478 1,315,479 158 1,494,549 320 53.2% 242,520 19 8.6%
4 CMA CGM Group 2,642,682 503 992,356 129 1,650,326 374 62.4% 241,054 16 9.1%
5 Hapag-Lloyd 1,595,408 222 1,047,266 112 548,142 110 34.4%
6 ONE Line 1,537,973 223 584,599 80 953,374 143 62.0% 97,818 7 6.4%
7 Evergreen Line 1,197,504 205 579,592 115 617,912 90 51.6% 479,486 72 40.0%
8 Yang Ming 629,643 100 183,583 40 446,060 60 70.8% 222,550 25 35.3%
9 PIL (Pacific Int. Line) 417,346 136 278,986 112 138,360 24 33.2% 48,292 5 11.6%
10 Hyundai M.M. 414,073 72 129,439 14 284,634 58 68.7% 396,000 20 95.6%
11 Zim 381,652 75 30,541 7 351,111 68 92.0%
12 Wan Hai Lines 259,510 96 168,620 70 90,890 26 35.0% 33,600 12 12.9%
13 140,325 115 102,447 48 37,878 67 27.0% 29,676 21 21.1%
14 KMTC 139,320 65 60,236 29 79,084 36 56.8% 14,400 8 10.3%
15 Zhonggu Logistics 135,962 99 87,835 35 48,127 64 35.4% 13,966 7 10.3%
16 X-Press Feeders Group 133,870 83 36,181 24 97,689 59 73.0%
17 SITC 109,600 81 71,890 52 37,710 29 34.4% 19,455 11 17.8%
18 IRISL Group 96,383 46 96,383 46
19 SM Line Corp. 81,799 21 58,201 13 23,598 8 28.8%
20 Arkas Line / E<ES 70,753 43 61,070 38 9,683 5 13.7%

 

  1. New Bunker Adjustment Factor (BAF)

From January 1, 2020, a new regulation will come into force to reduce air pollution from ships globally.  Whereas today ships can use fuel with up to 3.5% Sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%.  The regulation has been developed and adopted by the International Maritime Organization and aims to reduce sulphur pollution from shipping more than 80%.  The cost of compliance with the new regulation will be significant, so the cost of shipping will increase.  It brings additional cost $160 per TEU averagely, distributed by trade factor.

In order to allow customers to predict, plan and track how changes in fuel price will impact total shipping freight rate, Maersk / MSC / CMA will introduce new bunker adjustment fact, BAF to replace the current standard BAF.

New Products & Services

  1. 2nd Cooperation between PIL & IBM in Block Chain

Since 2017 agreement among PIL, PSA and IBM establishing IBM Blockchain Platform, it aims to track and trace shipments from Chongqing to Singapore during August to December 2017.  Now PIL will cooperation with IBM in Blockchain once again to design, and create electronic bill of lading, to promote the process of supply chain documentation exchange. By Blockchain technology, it is possible to realize the direct flow of information and documents, so that it can help to increase transparency and eliminate document authenticity, with unnecessary risks reduced.

  1. Twill Enters Import Market of Great China

Twill started from an internal innovation of Damco affiliated to Maersk Group.  It is a digital freight forwarder to simplify shipping process for cargo owners.  It was launched in April, 2017.  Via Twill platform, users can get quotation, manage documents and deliver goods. With clicks of buttons, they can book, manage, track and trace flow of cargo.

Now it has entered the import market of Great China.

Particulars

Sears Hires Advisers to Prepare Bankruptcy Filing

Sears Holding Corp has hired M-III Partners LLC to prepare a bankruptcy filing that could come no later than 14 Oct, according to people familiar with the situation, as the cash-strapped company that once dominated American retailing faces a debt payment deadline.

Air Freight

  1. Air Cargo Facing the Specter of Trade War

Although the IATA’s latest data shows that demand, measured in freight tonne kilometers (FTKs), rose by 2.3 per cent in August this year, in comparison with the same period in 2017, three key factors are threatening the air cargo industry’s buoyancy.

Firstly, manufacturing firms’ export orders have weakened, specifically in Europe, China, Japan and Korea, where orders have declined in recent months.

Secondly, longer supplier delivery times are being reported by manufacturers in Asia and Europe – the top two global trading areas by volume.  This trend suggests they have less need for the speed of airfreight.

Thirdly, are the risks to global trade from the recent escalation in trade tensions.  The WTO announced at the tail end of September that it anticipates trade growth will slow for the rest of this year to 3.9 per cent and slow further to 3.7 per cent in 2019.

  1. Overall Regional Performance of International Airlines

 

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