APRIL 2023 - SNAPSHOT

• Drewry's composite World Container Index increased by 0.95% in the past month to $1,773.58 per 40ft container as at 20 April 2023. This is as a result of the past week alone which saw an increase of $64.95 per 40ft (+3.8%) since last reported index on 13 April. This marks the first increase in 15 weeks.
• Import freight rates from China still at low levels with some carriers yet to increase.
• Rate restoration charges are being announced for some trade lanes to maintain services.
• World Shipping Council release details of their proposal and are seeking feedback on new global measures for the avoidance of contamination of sea containers by invasive pests and cargoes - Verified Pest Prevention (VPP) declaration.
• Vessel scrapping seems to have slowed with reports new owners are being found with sales surging on used vessels. Evergreen as example had forecast to scrap two 1999 built ships, but instead sold them to MSC.
• There was a 1% decline in total sailings in March - another signal of decreasing global demand.
• ANL announce Late B/L Collection Fee on exports now extends to Waybills as of April
• Shipping analysts at HSBC have called the bottom of the cycle for container shipping with latest freight market report making the case that the sector, in decline since last summer, is now on the way back up. HSBC argued that spot rates have likely troughed and a sequential recovery is on the cards.
• South Korean carrier HMM's privitisation is nearing completion with the state's approximate 45% stake being sold to provate investors. Last year the South Korean carrier's net profit soared to $7.7bn
• Further to last month's report on surge in new vessels, Carriers investing heavily in Methanol-ready vessels, with Cosco for example adding an order of 4 x 16000 teu ships all methanol capable and Maersk unveiling designs of their first green fuel powered vessel operating on green methanol.
• Carriers investing in Methanol plants and Singapore (as the world's top bunkering hub) is getting infrastructure in place to cater for higher Methanol activity as a result of carrier efforts and investments to go green.
• Since IMO regulations were recently introduced in January 2023 making it mandatory for all ships to calculate their attained Energy Efficiency Existing Ship Index (EEXI) and to initiate the collection of data for the reporting of their annual operational carbon intensity indicator (CII), carriers have looked to reduce speed on vessels and increase the transit times to meet the current requirements. However some carriers are adding additional vessel(s) to the same route which somewhat may impact negatively on results. 
• Blue Alpha Capital has forecast liner shipping will make a combined net income this year of $43.2bn on revenues of $327bn which while this would mark an 80% drop over last year's record profits, would still prove to be another sensational year of earnings helping to explain carriers' continued amassing of tonnage in the first three months of 2023. 
  The earnings before interest and taxes (EBIT) liner shipping made in the three years – 2020, 2021 and 2022 – are more than the combined profits of the previous 63-year history of container shipping, according to analysts.
• Terminal and Port Update

• Container volume (TEUs) in February was down 19% across the 4 major ports comprising Botany down 26%, Melbourne down 20%, Fremantle down 17%, and Brisbane down 8%. February's result was the largest monthly decline recorded in at least the last 20 years across the 4 ports. It was the fourth consecutive month of declines (Nov -3%, Dec -8%, Jan -4%)
• Hutchison Ports have provided a notice of intention to increase landside charges effective 22 May 2023 at both their Brisbane and Sydney stevedore operations.
• VICT (Melbourne) have provided a notice of intention to increase landside and infrastructure charges. Effective 1st June 2023 they will introduce VGM Weight Discrepancy & Reefer Temp Discrepancy Fees, and effective 1st July an increase to Infrastructure Surcharge.
• NZ Ports - It is expected other major ports across NZ will soon adopt fixed berthing windows, increasing service reliability for shipping lines and their customers.
• In response to the Ocean Shipping Reform Act of 2022, MSC has joined a growing list of ocean carriers that will cease charging container detention and demurrage fees to consignees on days a US marine terminal is closed.  Joining HMM, Maersk, & OOCL.
• Global sea freight schedule reliability increased to 60.2% in February 2023, up 7.7% from January 2023 (52.5%) and a yearon-year increase of 26%. Improvement can be attributed to eased congestion and better port conditions. Reliability now aligns with August 2020, when it began to notably decline amid the COVID-19 pandemic
• Global average vessel delays continued to decrease, now at 5.29 days, down from 5.36 days in January 2023 and 2 days lower than February 2022 (7.59 days)
• From 2024 the EU will enforce carbon taxes on shipping lines carrying goods to and from Europe. This means shipping lines need to look at alternative fuel sources or accept the taxes to continue with current fuels. LNG and other alternative fuels are not yet readily available in commercial volumes and, according to Drewry, a change to a fuel source like LNG could raise costs by up to 340%. If shipping lines simply accept taxes, it will lead to a minimum 35% price increase

GLOBAL SHIPPERS FORUM (GSF) WORKING GROUPS

INTERNATIONAL SHIPPING LINE UPDATES

INTERNATIONAL SHIPPING LINE UPDATES

• Week 13 (as at 28 March 2023)
• Week 14 (as at 4 April 2023)
• Week 15 (as at 12 April 2023) 
• Week 16 (as at 18 April 2023)

AUSTRALIAN PART X SHIPPING NOTICES