THINGS IN OCEAN FREIGHT NOT AS BAD AS THEY SEEM, BELIEVES YANG MING CEO

The Panama Canal’s restriction on shiploads and industrial action by US west coast dockers could pause the slide in container freight rates, according to Yang Ming CEO Patrick Tu.

 

He said the Shanghai Containerised Freight Index had been going up in the past two weeks.

 

Due to drought, the Panama Canal authority brought in weight restrictions on larger vessels on 24 May and stepped them up five days later. Consequently, several liner operators have hiked freight rates by between $300 and $500 per container.

 

Mr Tu said THE Alliance, of which Yang Ming is part, had five US east coast services, two using the Suez Canal and three going via Panama. Customers would be advised to use the Suez route for heavy cargo, although Yang Ming would also adjust its loading limits accordingly, he added.

 

He explained: “The SCFI’s rise doesn’t yet signal a recovery, but it’s a good sign, and we hope this continues. People have said that liner operators should blank more sailings to stabilise freight rates, but we haven’t idled any ships. Slow-steaming has enabled us to trim capacity by 10% and, with the load reductions in the Panama Canal, another 1%-2% will be cut.”

 

On the action by US west coast dockers, Mr Tu believes it is merely “a delay in manpower deployment and not an all-out strike”.

 

He said: “This doesn’t have a severe impact. Wage negotiations for the dockers are held every six years and such industrial action always occurs during the discussions. The current situation has caused only some delays in shipping schedules, but these aren’t beyond control.”

 

The International Longshoremen and Warehouse Union (ILWU), representing 22,000 dockworkers, and the Pacific Maritime Association (PMA), which represents ocean carriers and terminal operators, have been discussing a new labour contract since May 2022, two months before the then current agreement expired.

 

Citing the record profits liner operators reaped during the pandemic-fuelled boom, the ILWU is demanding wages be increased by $7.50/hour, while action by some some dockers has disrupted operations at terminals in Seattle, Los Angeles and Oakland.

 

Source: theloadstar.com by Martina Li


Related News

Airfreight loses as shippers switch to cheaper ocean routes to save costs
Airfreight loses as shippers switch to cheaper ocean routes to save costs

1184 Views

Shippers are merrily switching modes, back to sea freight, as ocean congestion ends and rates fall, but they are continuing to book at least some air capacity for next year.

Evergreen spends soaring profits on more box ships and containers
Evergreen spends soaring profits on more box ships and containers

1788 Views

Evergreen is adding to its fleet and equipment capacity with an order for two 24,000 teu ships from China’s Jiangnan shipyard and 55,500 containers from three manufacturers.

SOUTH KOREAN INDUSTRY GROUPS SLAM HAPAG-LLOYD BID FOR HMM
SOUTH KOREAN INDUSTRY GROUPS SLAM HAPAG-LLOYD BID FOR HMM

975 Views

The Federation of Korea Maritime Industries (FKMI) and the Busan Port Development Association (BPDA) have come out against German liner operator Hapag-Lloyd being allowed to bid to buy HMM.


Comment
  • Your review
main.add_cart_success