May 17, 2010

Freight rates
FE
April 1, 2010 GRI announced by several lines on FEWB but this was postponed until May 1, 2010 by the majority of carriers and has been further postponed again up to May 30, 2010. Only a limited numbers of carriers were increasing their rates wef. May 1, 2010 the average increase is around USD 50 per teu.

PSS wef. June 1, 2010 of USD 200 per teu has been announced by a handful of carriers. We are however still at a very premature stage so we are to await the final outcome to see whether it will come through or not.

TP
For both Transpacific EB and WB the final increases wef. April 1, 2010 were in the range of USD 225 – 300 per teu.

TA
For the Transatlantic WB the rates were increased by USD 300 per teu and EB by USD 250-300 teu.

The Global Container Fleet
No new orders for containerships were placed in February 2010. Continuing deliveries of ships and further cancellations of new build orders has reduced the global order book for containerships to 4.6 million teus (781 ships)

• Vessels delivered in February were equal to 18 ships – 64.000 teus
• Vessels demolished in January were equal to 7 ships – 13.000 teus
• Vessel laid update 542 ships 1.1 million teus

Latest information from the market is that orders for new ships will only be placed by shipping lines in the 1st quarter of 2011 and that shipping lines are doing whatever they can to cancel orders already placed even if this results in losing their 20% deposit.

Volumes
Volumes are picking up and all major trading and space pressure is increasing – a combination of increased consumption and the various tonnage withdrawal programs imposed by shipping lines.

The forecast at this stage is that the pressure for space will continue for the remainder of 2010.

Reefers & Containers
The availability of empty containers for the major trade lanes is becoming a serious issue for the following main reasons:

• Lines are still scrapping containers and not placing orders for building new ones
• Lines are handing in whenever possible long-leased equipment to leasing companies
• Lines are handing in whenever possible long-leased equipment to leasing companies

Overall it is estimated that the average overall global reduction for available empty containers is around 11% because of the above reasons. However, for the big trade lanes the percentage is of course higher than the average number.

Other news
Container lines increase capacity on Asia-Latin America trade lanes. Further signs of sustained recovery under way in the sector have emerged as lines continue to add capacity for this trade lanes. Hopefully this positive move will spread to other trade lanes.