The Red Sea crisis continues, and resuming flights is still difficult

 

Maersk announces resumption of Red Sea routes

 

On December 24th local time, global shipping giant Maersk issued a statement saying that due to the deployment of the US-led joint escort operation, the company is preparing to resume shipping operations in the Red Sea and the Gulf of Aden.

 

Earlier, Maersk announced on December 15 that it would suspend the passage of its ships through the Bab el-Mandeb Strait due to attacks on its ships. Shipping in the Suez Canal and the Red Sea has been severely disrupted, and the Suez Canal and the Red Sea are one of the most important arteries for the trade of oil, gas, grain and consumer goods between Europe and Asia.

 

Maersk said in a statement: "As of December 24, we have received confirmation that the previously announced 'Prosperity Guardian' (OPG) multinational security initiative has been formally established and deployed. Maritime trade through the Red Sea and the Gulf of Aden can be carried out, and the Suez Canal can be reopened as a gateway between Asia and Europe." "With the implementation of the 'Prosperity Guardian' initiative, we are preparing to allow ships to resume sailing in both directions through the Red Sea from east to west."

 

Maersk said it would release further details in the coming days, but noted in a customer advisory that the “overall risk in the area has not been eliminated” and it could “activate diversion plans” again if there were further safety concerns.

 

Previously, Maersk announced on December 15 that it would suspend its ships from passing through the Bab el-Mandeb Strait due to attacks on its ships. On December 19, Maersk said it would adopt a route around the Cape of Good Hope and would impose a container surcharge on goods from Asia to make up for the additional costs caused by the increased mileage.

 

Maersk is making preparations to resume east-west trade through the Red Sea and is developing plans to allow the first vessels to transit as soon as operationally feasible.

 

Maersk also stated that if the safety of the crew is threatened, it will reassess the situation and initiate the detour plan again.

 

 

 

Freight rates continue to rise and are unlikely to fall before the New Year

 

Industry insiders said that there are still uncertainties in Maersk's resumption of the Red Sea route. Even if it is resumed, it will be resumed in batches in a planned manner, which will still have a long-term impact on the liner shipping service network with complex structures and serious delays.Moreover, there are still insufficient shipping schedules, and container freight rates do not seem to show signs of a rapid decline in the short term.

 

In order to ensure that goods can be delivered safely and on time, some companies have begun to adopt detours, air transportation, and combined sea and air transportation methods.

 

This change has brought new challenges to global logistics, which requires dealing with the risk of rising prices for both ocean and air freight.Quotes for January have been received, with freight rates from China to the UK reaching US$10,000 per 40 feet.It is surprising that the supply chain crisis would return in this way.

Recently, major shipping companies announced that they will impose various surcharges in January, including peak season surcharges (PSS), which will be added to the new FAK or contract rates, and freight rates will soar. Shippers accuse Asia-North Europe shipping carriers of "raising freight rates" and simply cannot believe the rate levels quoted by carriers.

 

“We expect rates to increase next year, but not to this level and it’s clearly not negotiable,” said a UK-based NVOCC.

 

 

 

Several shipping companies issued additional statements

 

Recently, due to the attack on the container ship MSC United VIII, the situation in the Red Sea, which had just seen hope of resuming navigation, is once again full of uncertainty.

MSC and HPL: Will continue to sail around the Cape of Good Hope

 

As soon as Maersk announced that it would resume shipping to the Red Sea, Hapag-Lloyd followed suit. Then MSC failed, so Hapag-Lloyd had no choice but to decide to go through the Cape of Good Hope.

 

Hapag-Lloyd issued its latest announcement on Wednesday, saying that "it is still too dangerous to go through the Suez Canal, so we will continue to go around the Cape of Good Hope."

 

 

 

Image source: Hapag-Lloyd official website

 

 

MSC said on Tuesday it would continue to use the Cape of Good Hope route instead of the Suez Canal route.

 

But some ships continue to transit through the Suez Canal.

 

MSK and CMA: Headstrong, ready to go to the red sea

 

A Maersk spokesperson said on Wednesday that it will continue to prepare for ships to pass through the Red Sea. In addition, Maersk also released a detailed list of ships that will pass through the Suez Canal.A total of 59 ships with a total freight rate of over 820,000 TEUs will resume sailing in the Red Sea!

  

CMA CGM also said on Tuesday that we are developing plans to gradually increase the number of ships passing through the Suez Canal.

 

 

Image source: Dafei official website

 

It is worth noting that after France made it clear that it would "give priority to its own shipping interests", the French Navy has begun escorting the country's merchant ships through the Red Sea.

 

The ships involved include CMA CGM Pegasus, CMA CGM George Washington and APL Salalah, all of which are owned by CMA CGM.

 

 

 

Although we have seen two CMA CGM container ships already passing through the Bab el-Mandeb Strait.

 

However, on December 26, CMA CGM said it is currently formulating plans to gradually increase the number of ships passing through the Suez Canal, while it is constantly monitoring the situation and is ready to quickly reassess and adjust plans as needed.

 

At present, the mainstream shipping companies have announced that they will stop sailing in the Red Sea for a week. Faced with the turbulent situation in the Red Sea,Container ships of various shipping companies mainly sail around the Cape of Good Hope。

 

 

 

It is not easy for shipping companies to resume sailing. The safety of the waterway is the primary concern, and many shipping companies are in a wait-and-see state. Although the US-led OPG plans to escort the Red Sea, the specific situation and arrangements are still unknown.

 

Moreover, many container ships have begun to detour, and it is not realistic to resume the Red Sea route immediately.

 

Huifeng International would like to remind all customers that if the Red Sea situation continues, many goods exported according to orders will face pressure and problems such as increased freight rates, extended shipping schedules, and delayed delivery dates.

 

Be sure to prepare alternative routes and use multimodal transport to avoid or reduce the impact of this crisis.

 

Huifeng International has rich multimodal transport resources and project experience, and can tailor the best foreign trade route for you. Welcome to consult.

 

 

 

RMB hits record high!

 

Recently, transaction data compiled by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) showed that in November 2023, the share of the RMB in international payments rose to 4.6% from 3.6% in October.RMB hits record high.November,The renminbi's share in global payments has surpassed that of the Japanese yen, making it the fourth largest currency for international payments.

 

 

 

This is the first time since January 2022 that the renminbi has surpassed the yen to become the world's fourth most commonly used currency after the dollar, euro and pound. In terms of annual comparison, the latest data shows that the renminbi's share of global payments has almost doubled compared with November 2022, when it accounted for 2.37%. The background of China's efforts to promote the internationalization of the renminbi is the steady increase in the renminbi's share of global payments. Last month, the renminbi's share of total cross-border loans jumped to 28%, and the People's Bank of China currently has more than 30 bilateral currency swap agreements with foreign central banks such as the Saudi Arabian Central Bank and the Central Bank of Argentina. Separately, Russian Prime Minister Mikhail Mishustin said this week that more than 90% of trade between Russia and China is settled in renminbi or rubles, according to Russia's official news agency TASS. With the continued development of international bonds denominated in renminbi and the rise of offshore renminbi loan business, in September this year, the renminbi replaced the euro as the world's second largest trade financing currency.

 

 

 

Ningbo-Zhoushan Port container port area has achieved full coverage and operation of high-voltage shore power

 

On the morning of December 28, as COSCO Shipping's "Tian Xiu He" vessel successfully berthed at Berth No. 2 of Daxie Container Terminal in Daxie Port Area of Ningbo Zhoushan Port,

 

The dock electricians immediately connected the two 6.6 kV cables on board to the high-voltage shore power box at the front of the dock.

 

The high-voltage shore power supply at the wharf successfully replaced the diesel generator on board to supply power to the "Tianxiuhe" vessel.

 

This marks the official commissioning of Daxie Group's high-voltage shore power, and also means that Ningbo Zhoushan Port's container port area has achieved full coverage and commissioning of high-voltage shore power.

 

 

 

It is understood that ship emissions are an important area for ports to prevent and control air pollution.

 

The use of shore power while ships are at port can effectively reduce atmospheric pollutants such as sulfur oxides, nitrogen oxides, and particulate matter, and is one of the most effective ways to reduce emissions.

 

It is estimated that after berthed ships use high-voltage shore power, each berth can save an average of 300 tons of fuel each year and reduce emissions of various air pollutants by about 30 tons.

 

 

 

Maersk places another 15 new ship orders at Chinese shipyards

 

 

Alphabliner reports that Maersk appears to have selected Chinese shipyard Guangzhou Wenchong Shipyard (GWS) to build a new series of small green fuel containerships, each with a capacity of 3,500 Teu.

 

Shipbroking sources told the institute that Maersk had reached a deal with GWS rather than accepting a competing offer from Yangzijiang Shipyard.

 

It is not yet clear how many ships will be built, but the company is believed to be looking at a dozen vessels in total, Alphabliner reported. The ships are due to be delivered between 2026 and 2027.

 

As ShippingWatch previously reported, the expected ship order could reach 15 ships.

 

Maersk Group named the world's first methanol-powered container ship Laura Maersk in September this year and is already building 25 other methanol-powered container ships.

 

The vessels will be delivered from the shipyard between 2024 and 2027. They will all be equipped with dual-fuel technology and will be able to use green methanol as an alternative to traditional polluting fuel oil.

 

 

 

The new series of small container ships will also be equipped with dual-fuel technology.

 

Maersk is generally a firm believer in methanol as a new green marine fuel, but industry observers told Alphabliner that, like several others, it has problems sourcing sufficient quantities of the fuel, which could mean some of the new ships could be ammonia-powered.

 

For example, rival CMA CGM recently changed its order for eight 9,200 teu container ships so that they will no longer run on green methanol but on liquefied natural gas, a more readily available fuel.

 

Although LNG is also a fossil fuel, it produces less carbon dioxide emissions than conventional fuel oil.

 

Maersk does not usually comment on rumors of ship orders, but indicated at a press conference in September regarding the naming of the Laura Mærk that the methanol-powered ship order could exceed the official 25-ship order.

 

Maersk CEO Vincent Clerc also said Maersk will consider other alternative fuel technologies in the coming years, which could include ships capable of running on green ammonia.

 

“In a few years, when the technology is more mature, we will probably order ammonia-powered ships, and then we will have part of the fleet using methanol and the rest using other technologies,” said Vincent Clerc.

 

 

 

Steel exports are picking up!

 

According to a report by CCTV Finance on December 27, China's steel exports have continued to run at a high level this year. Data released by the General Administration of Customs showed that in the first 11 months of this year, my country's cumulative steel exports were 82.66 million tons, an increase of 35.6% year-on-year, and an increase of 37.86% compared with 2019. Industry insiders said that due to the relatively high steel production in my country this year, domestic steel mills are generally more active in exports.

 

 

 

 

 

In the first three quarters, my country's exports of home appliances increased by 8.2% year-on-year!

 

Recently, the General Administration of Customs released a monitoring and analysis report on the export of household appliances. In the first three quarters of 2023, my country exported 464.21 billion yuan of household appliances, an increase of 8.2% year-on-year. Among them, exports in September were 58.88 billion yuan, a year-on-year increase of 20.8%, setting a monthly record high. In terms of export markets, the United States, the European Union, and ASEAN are the top three export markets for my home appliances. Russia, the United Kingdom, Mexico and other countries have seen a substantial increase in demand for my home appliances.

 

 

Source: Focus, Shipping Network, Shipping Today, Lecang, One Shipping, etc.

If there is any infringement, please contact us to delete it.