Shipping Information | The container shipping industry may experience a slow peak season; Maersk ordered 6 methanol-powered container ships!

NO.1, Maersk ordered 6 methanol-powered container ships

On June 26, Maersk announced the order of six medium-sized container ships capable of using green methanol dual-fuel engines and with a design capacity of 9,000TEU.

Yangzijiang Shipbuilding Group will build the six new ships in China, with delivery starting in 2026 and the last delivery in March 2027. All vessels are equipped with dual-fuel engines and are capable of sailing on both fuel oil and methanol.

After delivery, these ships will replace the existing capacity of the Maersk fleet, and the new ships will replace ships of similar size. When operating with green methanol fuel, considering the fuel life cycle as the basis, Maersk will reduce about 450,000 tons of carbon dioxide emissions per year.

NO.2, ONE increased its shareholding in ITI to 77.8%

According to foreign media reports, Ocean Network Shipping (ONE) has recently increased its stake in the US terminal operator International Transportation Company (ITI), and ONE's shareholding in ITI has increased from 51.0% to 77.8%.

ITI is the holding company of container terminal operator TraPac LLC, which provides container terminal services in the US ports of Los Angeles and Oakland.

ONE stated that through the acquisition of more shares in ITI, it has strengthened its port business in the California region, enhanced its ability to provide first-class services to customers, and consolidated ONE's position as a global shipping market leader.

Industry insiders analyzed this and said that ONE’s move is similar to the strategy of liner giants such as Maersk, CMA CGM and Hapag-Lloyd. They are all actively seeking business expansion in global ports and strengthening control over important terminals.

NO.3, China's seaborne trade volume rebounded

According to the Netherlands Bureau for Economic Policy Analysis, trade volumes fell in three of the first four months of 2023 compared to the same period last year. Growth from China and other emerging markets in Asia was offset by a small contraction from the United States and large contractions from Japan, the European Union and especially the United Kingdom. Britain's exports and imports shrank the fastest between February and April this year, more than twice as fast as any other major economy.

China seaborne trade volumes have rebounded, although not as high as expected at the beginning of the year. Compared with the same period in 2022, container throughput at China's coastal ports increased by 4% in the first four months of 2023, according to the Ministry of Transport.

Container throughput at the Port of Singapore, one of the main transshipment hubs between China, the rest of East Asia and Europe, grew by 3% in the first five months of 2023.

NO.4, the container shipping industry may encounter a peak season that is not busy

Source: Xinde Maritime Network Invasion and deletion

The third quarter was originally the peak season for the container shipping industry, but according to analysts, the peak season for the third quarter of this year may not be as prosperous as expected.

According to a recent report by Container X Change, a German company, Container X Change predicted that the average container price will further decline in the next few weeks, and introduced that there is no sign that container demand will recover.

Container X Change said container prices typically soar as the industry prepares for peak season. But the current container price has not risen.

The Container X Change platform compares the average container prices of some of the world's busiest ports and compiles a table. As can be seen from the comparison, container prices have fallen to their lowest levels in the past three years. According to data, as of June, container demand remained sluggish.

NO.5, ONE and PIL jointly open new routes

Recently, Japanese container shipping company ONE and Singapore Pacific Lines PIL announced the launch of a new route "China-Korea Strait 2" (KCS2 for short).

The service of the new route was launched from Busan Port (Korea) on July 6, and the ports are called in turn: Busan (Korea)-Gwangyang (Korea)-Shanghai-Shekou-Singapore-Port Klang (Malaysia)-Penang (Malaysia) - Singapore - Ji Lai (Vietnam) - Nansha (Guangzhou) - Busan (Korea).

ONE said that the new route is also an upgrade to the current PF1 and VSS routes, and better connects to the markets of Penang and Gilai via Singapore. Head of PIL Asia commented: "The main feature of this new route is that it connects 9 major ports in 5 countries in Asia, allowing us to provide our customers with more efficient transportation at more attractive prices.”