World Maritime News
EU voted in favor to include shipping in Emissions Trading System
The European Parliament has voted in favor of a proposal to include shipping in the EU Emissions Trading System and to impose a 2030 40% carbon intensity target on ships of 5,000 gross registered tonnage and above. The European Parliament will negotiate with the European Commission and Council of the EU to deliver a finalized text.
The World Shipping Council (WSC) is opposed to the decision to include shipping operating outside European waters would constitute “a major and unprecedented exercise of unilateral authority over international trade and the operation of commercial shipping.”
IEA estimates zero-emission shipping to cost U$ 6 trillion over next 50 years
Maritime shipping needs an additional U$ 6 trillion in investment over the next 50 years to meet decarbonization goals, the International Energy Agency says in its report Energy Technology Perspective 2020. The study assessed available technologies across the energy sectors with a U$ 21 trillion call on additional investment for global transport infrastructure encompassing shipping, aviation and freight.
Asia-Europe/US trade records volume growth in July
Asia-Europe container volume in July recorded its first month of year on year growth since October, rising almost 2% taking volume to 1.52 million TEU, according to the latest data from Container Trades Statistics. US ports generally saw an uptick in their container throughput in July as well. The ports’ improved performance in underpinned by figures announced 10 September by the US Census Department, which said imports grew 11% in July over June, while exports picked up by 8.1%.
Carriers summoned by China to curb transpacific mark-ups
A transport ministry notification seen by a media shows that a total of 14 container lines involved in transpacific trade were invited to attend a ‘consultation’ in Shanghai 11 September aiming to ‘stabilize the international container shipping markets.’ It is believed that Chinese authorities have suggested to major container lines that they inject more capacity and less aggressively raise rates in the trans-Pacific trade as port rates hit highs. One Chinese shipping analyst close to the ministry said the latest “summons” was mainly triggered by alliances’ decision earlier this month to again cut service capacity for October. A consultancy expects more regulatory interventions from the US and European Union.
China Plus One or Two strategy
Reducing global supply chain reliance on China has become a buzz phase with a combination of the rise of Chinese labor costs, the China-US trade conflict, the growing markets in emerging economies and the fallout from the coronavirus backdrop. The so-called China Plus One (or Two) strategy has become increasingly prevalent. The implication for container shipping carriers is that the trade flows will change, the service routes will need to be recalibrated and even the types of vessels used may require redesign in future. Moody’s forecast that the pandemic will accelerate the fragmentation of the world trade system, leading to less efficient, less just-in-time supply chains at the global level and regionally focused production is to increase.
Changing trade patterns boost intra-Asia volumes
Intra-Asia container trades were the first to be affected by the pandemic but also the first to recover. Changing trade patterns and move to shift manufacturing out of China have helped boost the intra-Asia trade lane. Moving production from China to avoid tariffs or seek out lower labor costs would keep volumes moving in the region. Products that are labor intensive but low value are moving to Cambodia, Vietnam and the Philippines, as opposed to high-tech products have moved to Taiwan, South Korea and Japan. Along this we have seen an upscaling in terms of ship sizes trading intra-Asia. Some services were using vessels up to 6,000 TEU as feeders. There is higher demand generated internally in the region. This is a market with more than 4 billion people working and consuming.