Tag Archives: economics

Carriers adopt ‘hardcore’ blank sailing strategy as export bookings plunge

It appears that many of the ships waiting offshore in Shanghai are not waiting to unload, but to get new cargo. shipments out of China seem to be plummeting.

It’s leading to blanked or rescheduled sailings.

Perhaps the avalanche of post-COVID goods for the US and the EU has stopped. Perhaps we have enough inventory here and in Europe. If so, we should soon see the queues of waiting ships at US ports drop to more normal levels, and the same with Europe.

It’s getting to look more likely that a recession might appear in the US, and I think the same will happen in Europe. the Ukraine instability is bound to cause consumers to cut back and try to spend less and save more. In both places, that is likely to induce a recessionary trend. Consumer spending is a major part of economic activity in these countries.

R$at3es for container shipping from Asia to the US and Europe are still high. How long will it take for them to plunge down?

By Mike Wackett 25/04/2022

Carriers adopt ‘hardcore’ blank sailing strategy as export bookings plunge – The Loadstar

First European-owned vessel recycled at yard in the US

Seatrade reports that a European-owned vessel is in the US for shipbreaking. International Shipbreaking Limited (ISL) has invested a lot in bringing shipbreaking yards up to international standards for compliance with shipbreaking rules.

It’s a great advance to have compliant yards available and ready to recycle ships.

The abuse of labor in third-world ship recycling facilities is well known. True, it’s not perceived there as abuse. But the absence of safety standards for ship recycling workers, and payment by piece work, encourages unsafe behavior, and also unsustainable behavior by shipowners. These should stop. The EU regulation is a good first move, and having a place to do it is valuable.

Perhaps the next step is to have complaint yards for recycling empty containers in importing nations. Since it’s more expensive to ship them back than to buy new ones in China, it makes sense to salvage the metal here and also do away with the storage problem.

Marcus Hand | Apr 26, 2022

First European-owned vessel recycled at yard in the US

Maersk’s forwarder move could be abuse of its dominant position, says Clecat

Apparently I’m not the only one who thinks Maersk is staking out a monopoly position, discriminating against forwarders.

I think Maersk and others are in danger of killing off forwarders, and also customers. Larger customers will look at private transport. Small customers will mistrust Maersk’s platform, and evaluate its performance against the others out there, such as DP World’s. So it better work lots better than the others, not likely an advantage that can be sustained for long, nor for every type of customer. Many forwarders have end-to-end booking platforms.

I bet even large forwarders will start chartering ships if current price conditions for container shipments continue for long, like till Spring 2023.

And actually, I did not have to wait long. IN THE SAME LOADSTAR, on 10/22/2021, I found the second article.

By Nick Savvides 22/10/2021

Maersk’s forwarder move could be abuse of its dominant position, says Clecat – The Loadstar

UK forwarder turns the tide on container lines with direct China-UK service – The Loadstar