Freight rates pick up!Spot Freight Rates on Far East Routes Rise
- Author:sofreight.com
- Source:sofreight.com
- Release Date:2023-08-29
NO.1 Pan Ocean's first half results release
Recently, South Korea’s Pan Ocean Shipping (Pan Ocean) released its first-half performance announcement. The company’s operating income in the first half of the year was 2.2211 trillion won (about 1.66 billion U.S. dollars), a year-on-year decrease of 29.8%; operating profit was 237.6 billion won (about 1.78billion), a year-on-year decrease of 41.7%.
Pan Ocean Shipping said that the company's performance in the first quarter deteriorated because of the sharp drop in the Baltic Dry Bulk Index (BDI).The average BDI in the first quarter was 1004.7, a decrease of 51% from 2041 in the first quarter of last year, and a decrease of 34.0% from 1523 in the fourth quarter of last year.
After entering the second quarter, the shipping market still failed to recover effectively, and the average BDI was 1313, a year-on-year decrease of 48.1%.Affected by factors such as the deterioration of the shipping market, the company's performance in the first half of the year continued to be sluggish.
NO.2 Nearly 600 ships!The number of battery-powered ships is growing rapidly
As the world strives to reduce its reliance on fossil fuels, battery-powered ships are increasingly seen as a viable alternative to traditional diesel-powered vessels.
According to data from the Maritime Battery Forum, nearly 600 ships in operation around the world have adopted batteries as part of the energy solution, and another 190 new ship orders will use batteries.
Relevant data from Det Norske Veritas also shows that there are 589 battery-powered ships in operation and another 208 new orders for battery-powered ships.Of these, car and passenger ferries accounted for the largest share, with 253 ships in operation using batteries and 91 newbuildings using battery power.They were followed by offshore supply vessels, cruise ships and fishing vessels, as well as vessels classified as engaged in "other activities".
NO.3 The spot freight rate of the Far East route rose
As a number of liner companies have raised the GRI again, the container shipping prices of the three major export routes in the Far East have risen significantly.
Since the end of July, the freight rate of the Far East to Northern Europe route has risen sharply, from a level below $1,500/FEU, up $500, an increase of 39.6%, narrowing the price difference between the route and the Far East to the Mediterranean route to $670,This is the smallest spread this year.
At the same time, in recent months, the freight rate of the Far East to US West route has also shown a steady increase, rising by US$470 in a month from July 1 to August 1.Average spot rates have risen 51.5% since the end of June.
Sand pointed out that the price increase came ahead of the peak season and a new wave of contract tenders.But the fundamentals are still weak, and it remains to be seen whether the increase will continue, which largely depends on whether the short-term boost in freight rates can be transformed into lasting gains, and how it will affect the GRI adjustment in September.
NO.4 53 orders in July!The car carrier industry is hot
According to Clarkson data, from January to July 2023, the number of new orders for global car carriers (PCCs) reached 53, with a total of 436,000 parking spaces and 1.255 million deadweight tons, a year-on-year increase of 44.0% in terms of deadweight tons.
In 2023, the new car carrier market will gradually recover after experiencing highs and lows.Among them, January started hotly, reaching 20 ships, 174,000 parking spaces, and 520,000 deadweight tons; orders were less in April and May; the market improved in June and July, with 11 ships, 219,000 deadweight tons in June, and 8 ships in July, 185,000 deadweight tons.
From the perspective of shipowners, the top five shipowners in the order volume are Grimaldi Group, SAIC Anji Logistics, Reno Shipping, Ray Car Carriers, and Sallaum Lines, with orders of 294,000 dwt and 210,000 dwt respectively.tons, 101,000 deadweight tons, 84,000 deadweight tons, and 80,000 deadweight tons.
From the perspective of shipyards, the top five shipyards receiving orders are China Merchants Jinling (Nanjing), China Merchants Heavy Industry (Jiangsu), Shanghai Waigaoqiao, Guangzhou Shipbuilding International, and Jiangnan Shipbuilding.10,000 deadweight tons, 144,000 deadweight tons, 126,000 deadweight tons, and 90,000 deadweight tons.
NO.5 In July, 100 new ship orders were sold globally
In July, 100 new ship orders of 9.73 million deadweight tons were traded globally, and the number of new ship orders continued to rise, with an increase of 20.3% in terms of deadweight tons.
Among the new ship orders in July, container ships still accounted for the highest proportion, accounting for nearly 50% of all orders in July in terms of dwt.
In July, China continued to be the country with the largest number of orders in the world, accounting for 40.9% of all orders in terms of deadweight tons.
Recently, South Korea’s Pan Ocean Shipping (Pan Ocean) released its first-half performance announcement. The company’s operating income in the first half of the year was 2.2211 trillion won (about 1.66 billion U.S. dollars), a year-on-year decrease of 29.8%; operating profit was 237.6 billion won (about 1.78billion), a year-on-year decrease of 41.7%.
Pan Ocean Shipping said that the company's performance in the first quarter deteriorated because of the sharp drop in the Baltic Dry Bulk Index (BDI).The average BDI in the first quarter was 1004.7, a decrease of 51% from 2041 in the first quarter of last year, and a decrease of 34.0% from 1523 in the fourth quarter of last year.
After entering the second quarter, the shipping market still failed to recover effectively, and the average BDI was 1313, a year-on-year decrease of 48.1%.Affected by factors such as the deterioration of the shipping market, the company's performance in the first half of the year continued to be sluggish.
NO.2 Nearly 600 ships!The number of battery-powered ships is growing rapidly
As the world strives to reduce its reliance on fossil fuels, battery-powered ships are increasingly seen as a viable alternative to traditional diesel-powered vessels.
According to data from the Maritime Battery Forum, nearly 600 ships in operation around the world have adopted batteries as part of the energy solution, and another 190 new ship orders will use batteries.
Relevant data from Det Norske Veritas also shows that there are 589 battery-powered ships in operation and another 208 new orders for battery-powered ships.Of these, car and passenger ferries accounted for the largest share, with 253 ships in operation using batteries and 91 newbuildings using battery power.They were followed by offshore supply vessels, cruise ships and fishing vessels, as well as vessels classified as engaged in "other activities".
NO.3 The spot freight rate of the Far East route rose
As a number of liner companies have raised the GRI again, the container shipping prices of the three major export routes in the Far East have risen significantly.
Since the end of July, the freight rate of the Far East to Northern Europe route has risen sharply, from a level below $1,500/FEU, up $500, an increase of 39.6%, narrowing the price difference between the route and the Far East to the Mediterranean route to $670,This is the smallest spread this year.
At the same time, in recent months, the freight rate of the Far East to US West route has also shown a steady increase, rising by US$470 in a month from July 1 to August 1.Average spot rates have risen 51.5% since the end of June.
Sand pointed out that the price increase came ahead of the peak season and a new wave of contract tenders.But the fundamentals are still weak, and it remains to be seen whether the increase will continue, which largely depends on whether the short-term boost in freight rates can be transformed into lasting gains, and how it will affect the GRI adjustment in September.
NO.4 53 orders in July!The car carrier industry is hot
According to Clarkson data, from January to July 2023, the number of new orders for global car carriers (PCCs) reached 53, with a total of 436,000 parking spaces and 1.255 million deadweight tons, a year-on-year increase of 44.0% in terms of deadweight tons.
In 2023, the new car carrier market will gradually recover after experiencing highs and lows.Among them, January started hotly, reaching 20 ships, 174,000 parking spaces, and 520,000 deadweight tons; orders were less in April and May; the market improved in June and July, with 11 ships, 219,000 deadweight tons in June, and 8 ships in July, 185,000 deadweight tons.
From the perspective of shipowners, the top five shipowners in the order volume are Grimaldi Group, SAIC Anji Logistics, Reno Shipping, Ray Car Carriers, and Sallaum Lines, with orders of 294,000 dwt and 210,000 dwt respectively.tons, 101,000 deadweight tons, 84,000 deadweight tons, and 80,000 deadweight tons.
From the perspective of shipyards, the top five shipyards receiving orders are China Merchants Jinling (Nanjing), China Merchants Heavy Industry (Jiangsu), Shanghai Waigaoqiao, Guangzhou Shipbuilding International, and Jiangnan Shipbuilding.10,000 deadweight tons, 144,000 deadweight tons, 126,000 deadweight tons, and 90,000 deadweight tons.
NO.5 In July, 100 new ship orders were sold globally
In July, 100 new ship orders of 9.73 million deadweight tons were traded globally, and the number of new ship orders continued to rise, with an increase of 20.3% in terms of deadweight tons.
Among the new ship orders in July, container ships still accounted for the highest proportion, accounting for nearly 50% of all orders in July in terms of dwt.
In July, China continued to be the country with the largest number of orders in the world, accounting for 40.9% of all orders in terms of deadweight tons.