A CMA CGM container ship lost nearly 99 containers off South Africa’s east coast in rough weather, as reported by SAMSA. The Maltese-flagged vessel, CMA CGM BELEM, faced severe weather near Richards Bay, causing stowage issues and container losses. SAMSA issued a navigational warning, urging the public to report sightings of the lost containers.
Spot prices for shipping containers fell for the first time in nearly three months, signaling a demand slowdown post-U.S. tariffs on Chinese goods. The Drewry World Container Index dropped 2.2% to $5,806 for a 40-foot unit, ending a 12-week surge. Port congestion eased with shorter waiting times, hinting at balanced supply and demand in the market.
Carbon dioxide emissions from shipping increased by 23 million tonnes in the first half of the year, with ships taking longer routes to avoid attacks in the Red Sea. The industry’s emissions reached around 450 million tonnes, posing a challenge to meeting global emission targets. Increased attacks and sanctions contribute to longer shipping distances.
The Red Sea conflict has disrupted international shipping routes, leading to longer transit times and rerouting of major shipping companies. The Suez Canal has seen an 80% drop in traffic, forcing carriers to use alternative routes, increasing transit times by 10-14 days. Shippers are advised to plan accordingly for the high-demand retail season.
The congestion at Singapore’s container port is causing the peak shipping season to start earlier, leading to difficulties for local businesses. The overflow of container ships due to the Red Sea conflict is resulting in high freight fees and prolonged cargo delays. Alternative ports like in Malaysia are not as well connected, exacerbating the situation.
Due to the crisis in the Red Sea, transshipment ports like Singapore are experiencing severe congestion. A report by Drewry highlights the impact of abrupt changes in carriers’ service patterns and vessel diversions. The Port of Singapore’s productivity has suffered as turnaround times for containers have increased, leading to disruptions in services.
The Red Sea crisis continues to impact the maritime industry, with attacks by the Iran-backed Houthis leading to disruptions, increased costs, and longer journeys. Drewry warns of ongoing challenges through 2025, with factors like capacity crunch, demand growth, carrier behavior, and operational disruptions contributing to the problem.
According to the U.S. Energy Information Administration, maritime trade has shifted dramatically due to drone and missile attacks in the Middle East, leading to a 47% increase in crude oil and oil product flows around the Cape of Good Hope. This rerouting has impacted trade dynamics and increased transport times and costs significantly.
AP Moller-Maersk A/S faces port congestion and rising freight rates due to strong demand and Red Sea crisis disruptions. Maersk raises full-year 2024 guidance, expecting improved financial performance. Delays and reroutes impact shipping schedules. The company warns of volatile trading conditions and will reveal Q2 results on August 7, 2024.
Russia’s Northern Sea Route is set to witness record transit traffic this summer, with over 200 permits issued by Rosatom for vessels. While mainly Russian-flagged ships provide relief supplies to the Arctic, an increasing number of foreign-flagged LNG tankers, crude oil tankers, and container ships are expected to travel the route.
New data shows a 14% increase in EU shipping sector carbon emissions, monitored by Kayrros. Ship diversions due to Houthi attacks in the Red Sea are the main cause, leading to additional CO2 emissions. This poses a challenge to decarbonization efforts and hinders progress towards net zero emissions.
Maersk warned of overcapacity in container shipping hitting profits more than expected due to disruptions in the Red Sea. Shares fell 17% and the company suspended its share buyback program. CEO Vincent Clerc stated that overcapacity and price pressure will remain, with analysts predicting a pessimistic outlook for the industry.
Due to ongoing Suez Canal diversions, container shipping costs are expected to rise, causing shipping companies to adapt and reconsider their routes and strategies. Drewry’s analysis shows the impact of these diversions on transit times, fuel costs, and total round-trip costs, along with potential strategies for minimizing the impact. Despite the projected minimal increase in round-trip costs, market freight rates on Asia-Europe routes have skyrocketed, leading to potential port congestion and equipment shortages. If the Suez Canal is avoided for all of 2024, effective capacity could fall by about 9%. However, Drewry emphasizes that when trade flows across the Suez again, normal market dynamics will quickly return and prices will fall.
At least four oil tankers have changed course from the Red Sea after U.S. and British attacks on Houthi targets in Yemen. The attacks were in response to Houthi attacks on ships in the Red Sea, leading to soaring oil prices amid heightened geopolitical risks.
