2012 could prove to be a challenging year for carriers as Alphaliner predicts that carriers could require funding of $20 Billion to cover interest payments and capital requirements.

The high level of indebtness in the industry is of growing concern taking into account that container shipping lines made losses of over $6 Billon in 2011. Alphaliner said that “Greater attention will be paid to their balance sheets, with fresh capital injections required to keep some of the companies’ solvent. Alphaliner estimates that total short term funding needs for container carriers could reach $20 Bn in 2012, based on the companies’ estimated…

The Danish conglomorote, Maersk, which operates mainly in the transportation and energy sectors, announced in their latest outlook report that it is expecting to experience losses again this year in its transportation subsidiary.

Despite successful implementation of GRI’s (General Rate Increases) earlier this year, Michael Pram Rasmussen, chairman of A-P Moller Maersk, said that a “negative result” for its container line division would be a result of “excess capacity”. Maersk also expects that “Global demand for seaborne containers is expected to increase by 4-6% in 2012, lower on the Asia–Europe trades but supported…

The GRI (General Rate Increase) by major carriers on the Asia-Europe trade lanes came into effect on April 1^st, which resulted in a pot rate increase of 28% by April 5^th. In monetary terms this equated to a spot rate increase of $844 per FEU (forty foot equivalent unit) on the Shanghai to Rotterdam freight lane.

This 28% hike follows on form March 1^st, when the World Container Index (WCI) reported that Shanghai to Rotterdam freight rates increased by a staggering 114%.

The spot rate on March 29 per FEU was $2,654 and rose to $3,408 per FEU on April 5^th 2012.…

A Chinese cargo ship was hi-jacked by Somali pirates in the sea of Oman last Friday morning. Nine Somali pirates, armed with guns and axes, boarded the vessel amidst a hail of gunfire, commandeered the ship and forced the captain to head towards Somali waters.

When contacted by Chinas ambassador to Tehran the Iranian navy was dispatched and pursued the Nanjin Ocean Shipping cargo ship. The Chinese crew shut down the engines and many jumped overboard as the Iranian navy opened fire on the Somalian pirates. The pirates, stranded at sea, and under intense fire, duly surrendered.

All 28 Chinese crew members were rescued and brought safely ashore.