Tag Archives: ocean shipping

Ripples from Black Sea shipping crisis hitting regional supply chains

Posted on July 30, 2022 by | Leave a comment

It is interesting to hear about changes in regional supply chains. The Ukraine war provides a chance to see what disruption occurred and how it is impacting routes to move cargo in the area of the Black Sea. This article covers the effects of the blockade of Ukranian ports.

Naturally costs have changed, and so have equipment imbalances.

Finally, the markets for freight into and out of the area have changed a lot. Many shippers and carriers have been actively looking for alternatives, and have needed to create some new ones.

And sanctions imposed by the EU and US have forced other changes.

By Daniil Melnychenko data analyst at Informall BG 26/07/2022

Ripples from Black Sea shipping crisis hitting regional supply chains – The Loadstar

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In topsy-turvy commodity trades, small ships outperform big ships

Posted on July 13, 2022 by | 1 comment

It’s unusual for small ships to be more valuable than large ones. But that has been happening in the tanker and dry bulk shipping area. The disruptions of 2022, following on Covid, have created markets better served by smaller ships.

One source of large dislocations in markets is a result of the Ukraine war. Because of sanctions, China has stopped shipping crude from Arabia. That was a channel that favored VLCC tankers. In addition, Russian exports of oil favor the use of smaller ships.

But other markets, too, have seen this effect as well. China, for instance, has reduced imports of iron ore and coal, partly due to Covid restrictions, and partly due to the deep slowdown in Chinese construction, requiring less steel production.

Clarksons, the shipping consulting firm, expects a reversal to more normal price differentials by 2024.

Greg Miller Wednesday, July 13, 2022

In topsy-turvy commodity trades, small ships outperform big ships

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A potential economic recession and the supply chain bullwhip are colliding

Posted on June 22, 2022 by | 1 comment

Freightwaves’s SONAR app has a lot of excellent data that it makes readily available. This post by the CEO shows some clear trends in freight, particularly ocean freight.

One of the interesting graphs shows that recently the number of containers per shipment has dropped a lot. It’s based on the number of bills of lading, and the container volumes in twenty-foot units (TEU) in green.

The most obvious fact predicting this number is that order size for containers is dropping. Perhaps the shippers need less stuff.

Or perhaps they are finding other ways to get them. Walmart and Home Depot, for instance, are running their own liner services, so perhaps shipments moved on them are not showing up. Or perhaps they are ordering domestically.

The service on the container lines and alliances has been so horrible that supply chain managers who really need reliability are becoming squeamish about using them.

I think we can look for these ratios to stay similar till the container lines and alliances start regularizing their schedules and improving their on-time delivery rates.

SONAR is a good place to look for an overview. Now there needs to be some analysis. Visibility is only so valuable. It needs analytics to determine causes and relationships.

Craig Fuller, CEO at FreightWaves Follow on TwitterTuesday, June 21, 2022

A potential economic recession and the supply chain bullwhip are colliding – FreightWaves

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