Trade lanesAlphaliner, the freight analysts, reported that weekly sea freight  capacity on the Europe-Far East trade lane will increase from the current level of 248,000 teu to 284,000 teu weekly.

With significant alliances and consolidation on this trade lane in 2011, this increased capacity is a good indicator of the predicted fierce level of competition which is expected in 2012.

The main question posed by freight shippers is whether or not a rate war will ensue as a result of increased capacity?

Analysts believe that a rate war will be minimised by transferring shipments of over 10,000 teu’s onto secondary trade lanes. Despite this, analysts…

baltic freightThe Baltic Exchanges Freight Index hit a three year low on Thursday, 19th January. This freight index which measures the prices of dry commodities was down by approximately 50% in 2011. Dry bulk traffic includes commodities such as coal, iron-ore and grain.

Lessening demand for raw material from China is an issue of major concern for shippers in the region. When combined with economic instability in the Euro zone and overcapacity the current outlook for Baltic shippers is quite pessimistic.

The 19th January low represents the lowest the index has hit since January 2009 and freight rates are under extreme pressure with…

containerised shippingThe Cass Freight Index, which measures No0rth American shipping freight volumes, was up 0.75 in volume when compared with December 2010 and 15% up when compared to December 2009.

This strong December result is indicative of retailers maintaining low inventories and postponing delivery of shipments until the end of Q4, 2011.

The December results were very good news for US shippers as it followed two months of declining freight shipments. Shipment expenditure was up 1.8% when compared to November 2011 and expenditure was up a significant 18.8% when compared to December 2010.

The Cass Freight Index is a trusted…

strait of hormuzGlobal supply chains are under threat as US/Euro-Iran tensions reach new levels as Tehran threatens to block the Strait of Hormuz in retaliation against tougher trade sanctions proposed by the EU.

The Strait of Hormuz controls the access point to the region’s largest port, Dubai and the major oil producing countries of Qatar, Saudi Arabia and Kuwait. Oil prices rose by 6% in two days as a result of the escalating tensions. Dubai is of major concern to international shippers of sea freight as it is the worlds  ninth largest port, and needless to say a hugely significant port in regards global oil supply, with Dubai itself producing…

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