The economics of the megaships of 18,000 20-foot-equivalent units that container lines are building and deploying may not be all they are cracked up to be. The savings that carriers are touting as the reason for ordering them may not be as great as advertised when all their costs are factored in.
Greek dock workers are due to stage a 24-hour strike on Thursday to protest the privatization of the ports of Piraeus and Thessaloniki.
Carriers accepting record low rates on Asia-Europe routes while regularly trying to impose general rate increases are managing to irritate both customers with contractual arrangements and those using the spot market.
Eastbound trans-Pacific liner reliability has improved for the first time this year, but liner reliablity on the opposing direction fell to the lowest point since JOC.com began collecting SeaIntel data in August 2011.
The cargo of the world’s largest retailer contributes to the slightly more than 200 twenty-foot-equivalent units hauled on the Kansas City Southern network weekly from the port of Lazaro Cardenas to its Houston area intermodal terminal
Navios Maritime Partners, the NYSE-listed Greek dry bulk and container ship-owner, restated its focus on the container sector as it reported lower first quarter income.
Increasing cooperation between Hamburg Sud and carriers in the Ocean Three Alliance suggests it “seems only a matter of time” before the German container line joins the alliance, Drewry Container Insight said in a speculative commentary this week.
Matson’s first quarter operating income quadrupled from a year earlier as the carrier’s niche China-to-U.S. West Coast service continued to benefit from delays afflicting other trans-Pacific carriers.
Trans-Pacific ocean carriers have been digging in their heels to get rate increases in their 2014-2015 trans-Pacific ocean contracts and have been getting increases in some cases, especially on routes from Asia to East Coast ports. But rates negotiated for shipments from Asia to West Coast ports have been flat or lower than last year in some cases when bunker fuel surcharges are included in the rate.
Greece is expected to launch the long delayed privatization of the port of Piraeus, a top 10 European container hub, this week as its leftist government reluctantly undertakes reforms demanded by its international creditors.