Transpacific Rates Hit New Heights – Now Three Times Higher Than Asia-Europe

By Gavin van Marle for The Loadstar

Sept. 9, 2020 - Transpacific container shippers are paying more than three times as much as their Asia-North Europe counterparts, as freight rates on the headhaul leg from Asia to the west coast North America hit unprecedented highs.

According to new analysis from Alphaliner, after the Shanghai-Los Angeles SCFI spot rate reached a record $3,758 per feu on Friday, North American shippers and forwarders are now paying carriers $0.64 per nautical mile.

In contrast, North European importers are paying $0.19 per nautical mile for a shipment from Shanghai to Antwerp, the lowest of the nine routes covered by the Shanghai Containerised Freight Index.

“The fact that earnings per nautical mile are more than three times as high on the Asia-USWC trade is remarkable, as carriers need fewer resources (ships and equipment) on a shorter trade,” wrote Alphaliner today.

“A typical Far East-North Europe service requires the deployment of some 12 ships, whereas six are sufficient for a transpacific south-west loop.”

The complete article can be found on The Loadstar's website: theloadstar.com/transpacific-rates-hit-new-heights-now-three-times-higher-than-asia-europe

Germany Exported Logs at Record Pace in Early 2020, with Almost 50% Destined for China

Aug. 30, 2020 - The log market in Germany has been extremely volatile in the first half of 2020, with high demand from the export market and a tight supply of fresh green logs. When the Coronavirus Epidemic forced sawmills to close in March, domestic demand for sawlogs fell and the price increases seen earlier in the quarter reversed – resulting in both domestic and export prices falling.

Sawlog prices varied throughout the country depending on the level of local supply, the quality of the beetle-killed timber, the availability of fresh logs, and the competition from log exporters.

Log prices also varied due to contract volumes and spot purchases. Towards the end of the quarter, spot prices fell to levels that barely covered the costs for logging and hauling the timber. The 1Q/20’s estimated average sawlog price was an increase from the previous quarter but substantially lower than the 1Q/19, according to the Wood Resource Quarterly.

Softwood log exports from Germany have increased dramatically over the past five years, from 2.1 million m3 in 2014 to 7.4 million m3 in 2019. The oversupply of logs resulted in record high exports in the 3Q/19 followed by two quarters of q-o-q declines (see chart).

Despite the reduction in exports during the winter months, total shipments during the first four months of 2020 were up 38% as compared to the same period in 2019.

China has quickly become the largest market for German logs, accounting for almost 50% of all exported logs so far in 2020. From January to April this year, almost 2.4 million m3 of softwood logs were shipped to China. Log exportation from Europe to Asia is a recent trend. As late as 2017, there were practically no shipments of German logs outside of Europe.

Log export prices were fairly stable during most of 2019 but started to decline in late 2019 and early 2020. In March and April 2020, average prices were down about 14% as compared to the same months in 2019. Prices for logs destined for China have also declined substantially from early 2019 but are still nominally higher than the prices for logs shipped to other markets.

The large supply of logs in Germany has had little impact on the consumption of logs by the domestic sawmilling industry. The increase in lumber exports has been less dramatic than that of logs, with the y-o-y rate of change actually falling the past three years, from 12% (2015 to 2016) to 6% (2018 to 2019).

Wood Resource Quarterly is published by Wood Resources International, an internationally recognized forest industry consulting firm. For further information visit: www.woodprices.com.

SOURCE: Wood Resources International LLC

CMA CGM has Launched New Container Service to the Port of Gothenburg

Aug. 18, 2020 - On 31 July, the shipping company CMA CGM launched a new container service, adding a new link between Gothenburg and Hamburg. The new service includes calls at Gothenburg every Friday, initially using a vessel with a capacity of over 1,000 TEUs.

“CMA CGM is a leading worldwide shipping group, and this is yet another step in our ongoing strategy for the Swedish market. The launch of this new service will enhance the potential for Sweden to link into our extensive global service network,” said Linus Ljungmark, General Manager at CMA CGM Scandinavia.

The service will be operated under the name Scandinavian Shuttle Service, departing from Gothenburg every Friday, and arriving in Hamburg the following Sunday/Monday. Initially, the vessel Aries J, with a capacity of over 1,000 TEUs, will be used.

“We are extremely pleased to see that CMA CGM is continuing to invest offensively, and particularly so as it has chosen the Port of Gothenburg as a focal point. The Port acquires a new service which will broaden our offering even further, opening up new potential for Swedish industry to reach its global markets,” said Claes Sundmark,” Vice President, Business Area Container, RoRo & Rail at the Gothenburg Port Authority.

CMA CGM – one the world’s largest container lines – is part of the shipping company alliance “Ocean Alliance” along with Cosco, Evergreen, and OOCL.

SOURCE: Port of Gothenburg

MSC’S New Santana Service Connects Asia and North America

Aug. 19, 2020 (Press Release) - In anticipation of continuous strong Transpacific market demand, MSC is pleased to announce its new Santana service for the North American west coast. The service will commence at the end of August in Yantian and will remain in place until further notice.

The Santana service’s full rotation will be:

• Yantian – Shanghai – LA/LGB – Vancouver – Busan – Yantian

Besides allowing for added capacity to handle the stronger volume demand, the Santana service will offer market-competitive transit times into the U.S. West Coast.

SOURCE: MSC