World Maritime News

WMNF 2021/7/15

2021.07.14

High Container Freight Rate

Contract containerized freight rates have witnessed an “astronomical” hike in the first six months of this year and are expected to remain elevated for at least the medium term. Strong demand in the US and Europe continued to be the main driver of rates performance. Port congestion and equipment shortage remain contributing factors. Carriers’ efforts to increase their fleets would not bear fruit until 2023-2024. The high freight rates of the main lines pushed up the rates of the regional route, the charter rate of vessels, and demurrage and detention charges at the leading 20 container ports.

Read more: Lloyd’s List1 | Lloyd’s List2 | Lloyd’s List3 | Lloyd’s List4 | Lloyd’s List5 | JOC1 | JOC2

Outlook of trade volume and growth

Seaborne trade growth has returned to the pre-pandemic level. According to Lloyd’s List Intelligence data, seaborne trade is expected to grow 4.2% in 2021 after falling 3.4% in 2020 during the global pandemic. The World Trade Organization (WTO) expects global trade to rise 8% in 2021 after its 5.3% drop in 2020.

The latest figures published by Container Trades Statistics show that carriers shifted 15.2 million TEUs in May, up 1.7% in April 2021 and 14.3% in May 2020. The year-to-date total of 73.3 million TEUs is 5.6% up on the corresponding period of 2019, or pre-pandemic.

Demand on both transpacific trade and Far East-Europe trade is showing no respite.

Read more:

Lloyd’s List1 | Lloyd’s List2 | Lloyd’s List3

EU’s proposal including the shipping sector to its emissions trading system

After IMO adopted new short-term measures targeting CO2 intensity in June, the focus turns to those policies that will fundamentally change behaviors and help the development and adoption of low- and zero-emissions fuels. Governments have agreed to start discussing mid-, and long-term measures as soon as October 2021.

European Commission will propose that some international voyages are included in the EU’s Emission Trading System, with a gradual coverage of the sector’s emissions beginning with 20% in 2023 and leading 100% in 2026.

Read more: Lloyd’s List1 | Lloyd’s List2 | Lloyd’s List3 | Lloyd’s List4 | Lloyd’s List5

China sees shipping as a potential target for the national carbon market

China is exploring the idea of adding shipping into a national carbon trading market as a way of decarbonizing the country’s maritime sector, according to a government official.

As the talks are at an early stage, there is no clear pathway and timetable for the implementation of the measures. He said China needs to actively participate in the negotiations at the IMO and within the UNFCCC to guide the making of international rules and form fair and reasonable institutional arrangements.

Read more: Lloyd’s List

CMA CGM launches waste power project

The CMA CGM-led Coalition for the Energy of the Future has launched a feasibility study to trial the production of bio-LNG in France. The Project will allow the transformation of household waste from the Aix-Marseille-Provence region into liquefied biomethane. The bio-LNG will then be used for CMA CGM’s LNG-powered vessels. The carrier said bio-LNG made it possible to reduce greenhouse gas emissions by at least 67% compared with very low-sulfur fuel oil from well-to-wake.

Read more: Lloyd’s List

Ever Given left Suez Canal

Ever Given left the canal’s Great Bitter Lake anchorage after an estimated $550 million settlement was paid. According to the Suez Canal Authority, Ever Given’s master was solely responsible for the decisions and actions that led to the blockage of the Suez Canal.

Read more: Lloyd’s List

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