Market update 16th September 2024

Global Container freight rates continue their downward trend, which started in July (see picture 1).

Baltic Dry Index: The Baltic Dry Index has shown sideways movement throughout the year, fluctuating within a 1,000-point range (see picture 2).

Potential Disruption at US East Coast Ports: Unresolved labor negotiations could lead to higher shipping costs, increased spot rates, cargo re-routing to West Coast ports, port congestion, and a shift towards air cargo during the peak season.

Impact on Global Car Carrier Trade: Approximately 20% of global car carrier flows are tied to US trade. With the East Coast handling 55% of US car carrier traffic, disruptions could significantly impact the global seaborne car trade.

COSCO Specialized Carriers: The company's top-performing segments include heavy-lift, multipurpose, and pulp ships, contributing 23%, 19%, and 15% of gross profits, respectively. Pulp ship profits have increased due to fleet expansion and customized services.

Schedule Reliability: Schedule reliability further deteriorated in July, dropping to 52.1% (compared to 54.4% in June), with the average delay of late vessels rising to 5.24 days (up from 5.19 days in June).

Equity Performance : While ZIM has shown strong year-to-date performance, its results over a two-year period are less impressive. This trend is mirrored by most major shipping lines, which, despite benefiting from higher freight rates in the first half of the year, have not achieved the remarkable performance levels seen in previous years (see pictures 3 & 4).

Key Commodity News (Reuters)

China's aluminium output rises in August as profit spurs smelters
China's refinery output falls for a fifth month as fuel demand disappoints
Saipem wins $4 billion contract from Qatar Energy
Russia's Urals oil rises above $60 Western price cap on stronger Brent
Gold bulls set sights on previously dismissed record $3,000/oz milestone
Tin supply chain tightens after key mine's long absence