Multimodal Transport
11 october
# Digest
Sea service via Western and Southern ports: general situation
The profit of container lines in the second quarter of this year fell by 90%:
After two profitable years for container lines, the market is returning to pre-pandemic financial indicators, Container News reports with reference to Sea-Intelligence data.
"The fourth quarter of 2022 gave the first glimpses of a decline in profits. January-March 2023 was the first quarter when the operating profit of the lines fell significantly," the newspaper writes.
This decline continued in the second quarter – the total EBIT (total profit before interest and taxes) of container carriers fell by 90% compared to the same period in 2022 – to $ 3 billion. Some lines even recorded a loss. For example, ZIM had problems with profitability in previous quarters, and Wan Hai went into a loss for the first time since 2012.
According to Sea-Intelligence analysts, not a single line was able to maintain its EBIT/TEU indicators in 2023. At the same time, the highest EBIT/TEU for the second quarter was recorded at OOCL – $305 with TEU, while the lowest EBIT/TEU for the same period in 2022 was $1,377 with TEU.
Maersk with $207/TEU, Hapag-Lloyd with $298 with TEU and ONE with $137 with TEU showed EBIT/TEU in a much narrower range – $130-300 with TEU.
At the same time, ZIM recorded a negative EBIT/TEU indicator – at minus $195 per TEU. "In fact, the company lost $195 for every TEU transported in the second quarter of this year," explains Container News.
The main reason for the sharp drop in profits was the reduction in freight rates – they fell by 48-67%. Also, a decrease in the volume of container traffic in general played a role in this.
"It is surprising that ZIM, one of the two container lines that recorded an EBIT loss, increased its volumes by 0.5% globally and by about 13% both on the trans–Pacific trade and on the Asia–Europe trade," Sea-Intelligence summarizes.
After two profitable years for container lines, the market is returning to pre-pandemic financial indicators, Container News reports with reference to Sea-Intelligence data.
"The fourth quarter of 2022 gave the first glimpses of a decline in profits. January-March 2023 was the first quarter when the operating profit of the lines fell significantly," the newspaper writes.
This decline continued in the second quarter – the total EBIT (total profit before interest and taxes) of container carriers fell by 90% compared to the same period in 2022 – to $ 3 billion. Some lines even recorded a loss. For example, ZIM had problems with profitability in previous quarters, and Wan Hai went into a loss for the first time since 2012.
According to Sea-Intelligence analysts, not a single line was able to maintain its EBIT/TEU indicators in 2023. At the same time, the highest EBIT/TEU for the second quarter was recorded at OOCL – $305 with TEU, while the lowest EBIT/TEU for the same period in 2022 was $1,377 with TEU.
Maersk with $207/TEU, Hapag-Lloyd with $298 with TEU and ONE with $137 with TEU showed EBIT/TEU in a much narrower range – $130-300 with TEU.
At the same time, ZIM recorded a negative EBIT/TEU indicator – at minus $195 per TEU. "In fact, the company lost $195 for every TEU transported in the second quarter of this year," explains Container News.
The main reason for the sharp drop in profits was the reduction in freight rates – they fell by 48-67%. Also, a decrease in the volume of container traffic in general played a role in this.
"It is surprising that ZIM, one of the two container lines that recorded an EBIT loss, increased its volumes by 0.5% globally and by about 13% both on the trans–Pacific trade and on the Asia–Europe trade," Sea-Intelligence summarizes.
Delivery via the port of Klaipeda/ Riga
Delivery via Kotka/Tallinn port
Delivery via the port of Novorossiysk
There is a volatility of rates for the export of container ships. Throughout August, fuel in the Krasnodar Territory is getting more expensive by 1 rub/liter every week.
Since the beginning of the agricultural season, the rates for awnings / isotherms have increased by an average of 10%, in the direction of more than 2000 km, the search for transport takes 2-4 days.
Only 5 percent of tankers that export oil from Novorossiysk are managed by Russian shipowners. This means that foreign companies earn money on oil transportation. Tanker ship arrivals in June 2023 were investigated. 127 tankers entered Novorossiysk. Here are where the ship operators were registered: Greece (54 units), UAE, Turkey (15 units each), Liberia (9 units), Panama (7 units), Singapore (5 units), Croatia, Italy (4 units each), Germany (3 units), India, Hong Kong, Spain (2 units each), Lebanon, Gabon, Vietnam, Latvia, Russia (1 unit each).
Experts managed to connect only 6 ship calls with Russian operators. In total, there were 214 ship calls for oil to the ports of Russia in June. Only 17 of them were identified as tankers under Russian control. Most often, tankers under Russian control are loaded with oil in the port of Kozmino – 22 percent, in Novorossiysk – 5 percent, and in Primorsk - 6 percent.
Since the beginning of the agricultural season, the rates for awnings / isotherms have increased by an average of 10%, in the direction of more than 2000 km, the search for transport takes 2-4 days.
Only 5 percent of tankers that export oil from Novorossiysk are managed by Russian shipowners. This means that foreign companies earn money on oil transportation. Tanker ship arrivals in June 2023 were investigated. 127 tankers entered Novorossiysk. Here are where the ship operators were registered: Greece (54 units), UAE, Turkey (15 units each), Liberia (9 units), Panama (7 units), Singapore (5 units), Croatia, Italy (4 units each), Germany (3 units), India, Hong Kong, Spain (2 units each), Lebanon, Gabon, Vietnam, Latvia, Russia (1 unit each).
Experts managed to connect only 6 ship calls with Russian operators. In total, there were 214 ship calls for oil to the ports of Russia in June. Only 17 of them were identified as tankers under Russian control. Most often, tankers under Russian control are loaded with oil in the port of Kozmino – 22 percent, in Novorossiysk – 5 percent, and in Primorsk - 6 percent.
Delivery via the port of Saint Petersburg
Export to St. Petersburg, from railway stations and seaports are operating normally. Due to the increase in the volume of incoming containers, there is a shortage of transport for export, as well as due to the rise in the cost of auto parts and vehicle maintenance, there are increases in rates on the market.
According to the forecasts of carriers, the market will noticeably go up from September.
According to the forecasts of carriers, the market will noticeably go up from September.
Sea service through Far Eastern ports and delivery through these ports: general situation
Sea shipping
At the end of August, a relative decrease in levels, as well as the extension of current tariffs, is mainly maintained, with a slight increase for limited options.
There is a shortage of empty equipment in some locations. Waiting for the next shipment or a change in the situation can take from 7 to 20 days (depending on the port of departure). Vessels are unloaded according to the schedule. Exceptions may be caused by weather conditions due to the typhoon season in the Far East.
A storm warning has been announced in Vladivostok, rains are intensifying. The ports are still operating normally, but there is a possibility of a temporary suspension of loading and unloading operations and delays in car pickup across the entire region. Overloads and inspections of goods that are afraid of moisture will not be carried out.
During the VIII Eastern Economic Forum, a ban on the transshipment of dangerous goods at the seaport of the VMTP is established from 08.09.2023 to 13.09.2023
Railway delivery
The main trend at the beginning of September is the extension or reduction of current rates directly from terminals, a slight decrease in shipments from third–party stations.
There is still a small shortage of rolling stock, in particular, fitting platforms.
From 08/14/2023, LLC "VSK" does not send container trains to the station. Selyatino, cargo flows need to be reoriented to alternative stations of the Moscow transport hub.
Moving to third-party stations is relevant for cargo arriving at the terminals of the VMTP/VMKT (Fish)/VMPP, according to Sollers, it is recommended to leave containers at the terminal.
When shipping to gondola cars, the expectation of reloading in Novosibirsk is 10-14 days.
At the end of August, a relative decrease in levels, as well as the extension of current tariffs, is mainly maintained, with a slight increase for limited options.
There is a shortage of empty equipment in some locations. Waiting for the next shipment or a change in the situation can take from 7 to 20 days (depending on the port of departure). Vessels are unloaded according to the schedule. Exceptions may be caused by weather conditions due to the typhoon season in the Far East.
A storm warning has been announced in Vladivostok, rains are intensifying. The ports are still operating normally, but there is a possibility of a temporary suspension of loading and unloading operations and delays in car pickup across the entire region. Overloads and inspections of goods that are afraid of moisture will not be carried out.
During the VIII Eastern Economic Forum, a ban on the transshipment of dangerous goods at the seaport of the VMTP is established from 08.09.2023 to 13.09.2023
Railway delivery
The main trend at the beginning of September is the extension or reduction of current rates directly from terminals, a slight decrease in shipments from third–party stations.
There is still a small shortage of rolling stock, in particular, fitting platforms.
From 08/14/2023, LLC "VSK" does not send container trains to the station. Selyatino, cargo flows need to be reoriented to alternative stations of the Moscow transport hub.
Moving to third-party stations is relevant for cargo arriving at the terminals of the VMTP/VMKT (Fish)/VMPP, according to Sollers, it is recommended to leave containers at the terminal.
When shipping to gondola cars, the expectation of reloading in Novosibirsk is 10-14 days.
Japanese ONE overtook Evergreen in the ranking of container lines
The line, created as a result of the merger of container operations of the three largest Japanese shipping corporations NYK, MOL and K-line, pushed the Taiwanese carrier Evergreen and reached the 7th place in the Alphaliner rating.
The fleet capacity of both operators is currently slightly less than 1.7 million TEU. The difference is only one eight–thousandth, and Evergreen is likely to win back losses soon. By the end of the year, the company expects the delivery of 3 new vessels, and next year – 22. In general, the order portfolio of the Taiwanese operator is twice as large as that of ONE: 72 versus 36. Just last month, the operator signed two huge contracts with South Korean Samsung and Japan's Imarabi Group for the supply of 24 16-thousand units.
Despite the record volumes of new capacity that will join the fleet operating today this year and next, and unfavorable forecasts of a fleet surplus, carriers continue to actively place orders for the construction of new vessels. According to Alphaliner, in June-July, orders were placed for the supply of 77 container ships with a total capacity of about 770 thousand TEU. Deliveries during this period amounted to 63 vessels and about half a million TEU capacity. And at the same time , only about 20 thousand were sent for scrapping . TEU of capacity.
The fleet capacity of both operators is currently slightly less than 1.7 million TEU. The difference is only one eight–thousandth, and Evergreen is likely to win back losses soon. By the end of the year, the company expects the delivery of 3 new vessels, and next year – 22. In general, the order portfolio of the Taiwanese operator is twice as large as that of ONE: 72 versus 36. Just last month, the operator signed two huge contracts with South Korean Samsung and Japan's Imarabi Group for the supply of 24 16-thousand units.
Despite the record volumes of new capacity that will join the fleet operating today this year and next, and unfavorable forecasts of a fleet surplus, carriers continue to actively place orders for the construction of new vessels. According to Alphaliner, in June-July, orders were placed for the supply of 77 container ships with a total capacity of about 770 thousand TEU. Deliveries during this period amounted to 63 vessels and about half a million TEU capacity. And at the same time , only about 20 thousand were sent for scrapping . TEU of capacity.
Newnew acquired two container ships to operate between China and St. Petersburg
The Chinese linear operator Newnew Shipping, part of the Torgmoll group, has added two container ships purchased on the secondary market to its fleet, Splash reports with reference to Alphaliner.
According to Alphaliner, Newnew acquired the TS Kelang vessel with a capacity of 4,363 TEU for US$ 20.8 million, as well as the Northern Defender with a capacity of 3,700 TEU for US$ 17 million. Both vessels were built in 2007.
The vessels will work on the service connecting St. Petersburg with the ports of China.
Newnew ranks 46th in the rating of Alphaliner lines with a fleet of 11 vessels with a total capacity of 27.8 thousand TEU. The operator owns 5 container ships with a capacity of 15 thousand TEU.
According to the rating of line operators operating in the Russian container market, prepared by InfraNews at the end of the second quarter, the Torgmoll group ranked 6th with an average monthly capacity of 17.5 thousand TEU. Compared with the average for the first quarter, the average monthly capacity increased by one and a half times due to the launch of the service to St. Petersburg with a frequency of twice a month. The company's services now connect the ports of China with all three main container port complexes in Russia: the Far East, Novorossiysk and St. Petersburg.
According to Alphaliner, Newnew acquired the TS Kelang vessel with a capacity of 4,363 TEU for US$ 20.8 million, as well as the Northern Defender with a capacity of 3,700 TEU for US$ 17 million. Both vessels were built in 2007.
The vessels will work on the service connecting St. Petersburg with the ports of China.
Newnew ranks 46th in the rating of Alphaliner lines with a fleet of 11 vessels with a total capacity of 27.8 thousand TEU. The operator owns 5 container ships with a capacity of 15 thousand TEU.
According to the rating of line operators operating in the Russian container market, prepared by InfraNews at the end of the second quarter, the Torgmoll group ranked 6th with an average monthly capacity of 17.5 thousand TEU. Compared with the average for the first quarter, the average monthly capacity increased by one and a half times due to the launch of the service to St. Petersburg with a frequency of twice a month. The company's services now connect the ports of China with all three main container port complexes in Russia: the Far East, Novorossiysk and St. Petersburg.
Global Ports for the first time sent fertilizers in special containers from St. Petersburg
Global Ports Group (Delo Group stevedoring holding) has launched the transportation of mineral fertilizers using its own specialized containers through terminals in St. Petersburg, it follows from the message of Delo Group.
The first ship's batch of fertilizers from the EuroChem mineral and chemical company was shipped from the Petrolesport terminal in August. In the future, shipments using special containers from Petrolesport and PKT terminals (both part of Global Ports) will be carried out regularly.
The company noted that fertilizers were loaded into special containers directly at the manufacturing plant without removing containers from fitting platforms. Transportation by rail was provided by Transcontainer (part of the Delo Group of Companies). After the accumulation of the ship's batch at the terminal, the products from the containers were unloaded into the hold of the vessel for subsequent shipment by sea.
As InfraNews reported, in April 2023, an agreement was signed between EuroChem and Global Ports, according to which the producer of mineral fertilizers will ship up to 100 thousand tons of products to Global Ports containers monthly for further transshipment in the port of St. Petersburg. The agreement will be valid until the end of 2025.
Also in April, Global Ports announced the acquisition of 4 thousand 20-foot specialized containers that will be used for the transportation, storage and transshipment of bulk cargo.
The first ship's batch of fertilizers from the EuroChem mineral and chemical company was shipped from the Petrolesport terminal in August. In the future, shipments using special containers from Petrolesport and PKT terminals (both part of Global Ports) will be carried out regularly.
The company noted that fertilizers were loaded into special containers directly at the manufacturing plant without removing containers from fitting platforms. Transportation by rail was provided by Transcontainer (part of the Delo Group of Companies). After the accumulation of the ship's batch at the terminal, the products from the containers were unloaded into the hold of the vessel for subsequent shipment by sea.
As InfraNews reported, in April 2023, an agreement was signed between EuroChem and Global Ports, according to which the producer of mineral fertilizers will ship up to 100 thousand tons of products to Global Ports containers monthly for further transshipment in the port of St. Petersburg. The agreement will be valid until the end of 2025.
Also in April, Global Ports announced the acquisition of 4 thousand 20-foot specialized containers that will be used for the transportation, storage and transshipment of bulk cargo.
The quarterly container turnover of the Port of Hamburg remains at record low levels
The port of Hamburg handled 3.8 million TEU in the first half of the year, which is 12% less than a year earlier. In the second quarter, the turnover increased slightly to the level of the first, but there is no such noticeable growth as in Rotterdam and Antwerp. In general, volumes remain around 1.9 million TEU, which corresponds to the minimum reached in the second quarter of 2020, when the wave of the pandemic reached Western markets.
According to the report of the marketing operator of the port, China remains the most important trading partner of the port, it accounted for almost 30% of the total turnover of the port, nevertheless, trade volumes decreased by about 200 thousand. TEU or by 15% to 1.1 million TEU. The USA is in second place with a share of about 8%. The volume of trade increased by 7.5% to 313 thousand. TEU with 291 thousand . TEU a year earlier. In general, the port considers North American countries to be its most promising market: trade volumes with Canada and Central American countries increased by an average of 6.5% year-on-year and exceeded 200 thousand TEU in the first six months.
Volumes in the Baltic feeder market decreased by about a quarter as volumes in trade with Russia came to naught. Volumes in trade with Finland increased by 10% in the first half of the year and left 119 thousand TEU.
The total cargo turnover of the port of Hamburg amounted to 58 million tons, which is 5.8% less than a year earlier. Export and import transshipment decreased by approximately equal shares and amounted to 24 million and 34 million tons, respectively. The volume of bulk cargo increased by 18% to 5.3 million tons, agricultural – by 17% to 3.5 million tons.
According to the report of the marketing operator of the port, China remains the most important trading partner of the port, it accounted for almost 30% of the total turnover of the port, nevertheless, trade volumes decreased by about 200 thousand. TEU or by 15% to 1.1 million TEU. The USA is in second place with a share of about 8%. The volume of trade increased by 7.5% to 313 thousand. TEU with 291 thousand . TEU a year earlier. In general, the port considers North American countries to be its most promising market: trade volumes with Canada and Central American countries increased by an average of 6.5% year-on-year and exceeded 200 thousand TEU in the first six months.
Volumes in the Baltic feeder market decreased by about a quarter as volumes in trade with Russia came to naught. Volumes in trade with Finland increased by 10% in the first half of the year and left 119 thousand TEU.
The total cargo turnover of the port of Hamburg amounted to 58 million tons, which is 5.8% less than a year earlier. Export and import transshipment decreased by approximately equal shares and amounted to 24 million and 34 million tons, respectively. The volume of bulk cargo increased by 18% to 5.3 million tons, agricultural – by 17% to 3.5 million tons.
