UPDATED MARKET FORECAST FOR INTERNATIONAL OCEAN FREIGHT

According to increased loading factors, ocean carriers will most likely plan to increase their rates and enjoy the profit gain. As such, the ocean lines have planned General Rate Increases throughout the summer months and into fall.

As we all know we are entering the traditional peak season, we foresee the space for August and September will be very limited due to carrier’s optimistic forecast.  Because of the recent tightening of the vessel supply and demand gap has not been sufficient to erase overcapacity from the market.

All ocean booking requests should be sent to us as early as possible to reserve space in advance.
As the demands increasing significantly in July and August, there has been equipment shortages throughout the industry, which is also due to some serious port congestion and strikes at certain ports ( ex. Chittagong, Bangladesh, Spain, LAX/LGB)

As a result we are seeing a shortage of the equipment especially for the 40GP and HQ containers, for example MSK HPL OOCL HMM all are experiences equipment shortages.  We expect the situation will become better at the second half of August.

South Korea Carriers form “Korea Shipping Partnership” – South Korea’s container shipping companies are banding together to present a united front in the face of an increasingly competitive global market and in light of Hanjin Shipping’s demise. According to a statement from the Korea Ship-owners Association, the nation’s 14 boxship owners are scheduled to ink a memorandum of understanding as they seek to form a national shipping consortium, named Korea Shipping Partnership. The move is expected to ensure the nation’s companies stay competitive in the wake of Hanjin Shipping’s collapse last year. It will be the first time for Korea’s entire shippers to come together under a single club, said an unnamed shipping industry official. Under the terms of agreement, they will cooperate to improve their collective strength through various measures including increasing shared cargo capacity, adding new shipping routes and co-managing overseas terminals.

The companies are: Hyundai Merchant Marine, CK Line, Dongjin Shipping, Don Woo Shipping, Dong Young Shipping, Hansung Line, Heung-A Shipping, KMTC, Namsung Shipping, Pan Continental Shipping, Pan Ocean, Sinokor Shipping, SM Line and Tai Young Shipping, according to an HMM official.

The new partnership follows a similar deal amongst Japanese shipping companies. In July, Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) formally established a joint holding company for their container business alliance. The new company, named Ocean Network Express, includes terminal operation businesses outside Japan

For questions about or for help on how to best navigate the changing environment please email info@pngworldwide.com