Shipping: Container Carriers Canvass Towards A Tipping Indicate Of Sea Freight Rates As Well As Fuel

From The Lodestar via gCaptain:

The bellwether Shanghai Container Freight Index (SCFI) did non release on Monday, due to the national vacation inwards China, but electrical flow thought suggests that bounding main carriers volition uncovering their rates nether pressure level next the Golden Week break.

Last month, the Asia to North Europe component division of the SCFI shed 21% to $735 per teu, acre for Mediterranean ports at that spot was a smaller spend upward of 15% to $767 per teu.

Anecdotal reports from The Loadstar’s sources elevate to a “sharp dip” inwards charge factors on the route inwards the ii weeks leading upward the national mill shutdown, from a superlative flavor high of over 95% to below 90%.

The ask slowdown reinforces the strategy of carriers to axe to a greater extent than than 200,000 teu of headhaul capacity this month, including the 2M’s AE2/Swan loop.

Taking out a massive eleven westbound sailings is designed to “stop the spot charge per unit of measurement rot”, but a determination past times Maersk, MSC too CMA CGM to cutting FAK rates has, arguably, negated the initiative.
The sliding spot rates volition also seat carrier negotiators on the dorsum human foot every bit they laid upward for the commencement circular of meetings alongside major contract customers to renew annual contracts.

Meanwhile, on the transpacific tradelane, the jury is notwithstanding out on the behave on on frontward bookings of the States retailers stocking upward inwards advance of Trump merchandise tariff hikes on a vast attain of consumer imports.

Significantly, job levels on Asia to the States sailings were maintained inwards the high 90s inwards the Pb upward to the Golden Week vacation too the ask surge propelled spot rates to highs of around $2,350 per 40ft for the the States due west coast too $3,500 for the States eastward coast ports. This represents a year-on-year increase of 66% too 75% respectively.

But the rates currently enjoyed past times transpacific carriers could survive short-lived if ask weakens substantially this month. After a long run of successful GRIs, carriers convey been obliged to row dorsum on their end ii charge per unit of measurement hikes, cancelling both the mid-September too i Oct GRIs.

“As the China-US tariff state of war ratcheted up, many the States importers stocked upward inwards advance of the high-turnover Thanksgiving too Christmas seasons,” noted Freightos main executive Zvi Schreiber.

Notwithstanding carrier concerns over the stability of freight rates on the ii biggest liner trades, they are also facing considerable damage pressures....MORE

Speaking of Shanghai, equities were upward a fleck afterward yesterday's tumble. From MarketWatch:

Nikkei slips, but Chinese stocks bounce dorsum afterward Monday’s plunge
Hang Seng tries to avoid sixth direct solar daytime of losses

Asian markets were mixed inwards early on trading Tuesday, alongside Chinese equities ascent acre Japanese stocks fell.

Japan’s Nikkei NIK, -1.17%   dropped nigh 1%, though analysts said that was to a greater extent than ofttimes than non a catch-up reaction to Monday’s widespread regional declines that took house acre Japanese markets were closed for a holiday. Electronics were amidst the biggest decliners every bit concerns over U.S.-China merchandise tensions transcend away on to grow too every bit the yen USDJPY, -0.17%   has rebounded since Friday. Sharp 6753, -4.04%   too Renesas 6723, -3.55%   were downwardly nearly 4% amid broad selling, alongside only ii of the 33 Topix sectors — structure too existent estate — logging gains soon afterward the open. Financials convey fallen less, alongside bond yields remaining up. The 10-year JGB was upward a half-basis shout for at 0.15%.

Hong Kong’s Hang Seng Index HSI, +0.42%   was upward 0.5% every bit it tried to avoid its instant six-day losing streak inwards a month. Tencent 0700, -0.40%   hitting fresh 15-month lows inwards dropping to a greater extent than than 0.5% inwards early on trading, but recovered to positive territory. Meanwhile, automaker Geely 0175, -3.39%   skidded 3% afterward its September sales report. But crude oil heavyweight CNOOC 0883, +3.89%  climbed nearly 3%.

Chinese stocks were higher inwards early on trading afterward yesterday’s broad 4% slides left indexes at that spot nigh multiyear lows. The Shanghai Composite SHCOMP, +0.49%   rose an early on 0.3% acre the smaller-cap Shenzhen Composite 399106, +0.14%   climbed 0.4%. Influenza A virus subtype H5N1 bounce-back afterward Monday’s post-holiday slide wasn’t unexpected, but the fundamental inquiry is whether it’s sustainable. ...MORE