Title: Vietnam Shipper No 114
Date: (01-04-2014)

Seafreight

New era begins as P3 celebrates FMC ruling

Denmark\'s AP Moeller-Maersk\'s Maersk Line, France\'s CMA-CGM and Swiss-based Mediterranean Shipping Co - the world\'s three biggest container-shipping companies by capacity - won approval for their proposed P3 Alliance from the US Federal Maritime Commission by the end of March.

The giant P3 Network is on course to roil the global container business by reducing costs for the world\'s biggest operators while squeezing smaller shippers. …(Read more on Vietnam Shipper Issue No. 114)

 

European Exports to Middle East, Indian Subcontinent Decline

In 2013, container shipments from Europe to the Middle East and the Indian subcontinent declined 3 percent year-over-year to 3.0 million TEUs, while shipments in the opposite direction — from the Middle East and the Indian subcontinent to Europe — rose 6 percent to 2.2 million TEUs, according to data from Container Trade Statistics.

However, Drewry Maritime Research predicted that both eastbound and westbound cargo volumes in the trade lane will return to growth in the first quarter of 2014. Freight rates in both directions are expected to remain under pressure through the second quarter of 2014 as a result of increased competition from transshipment and wayport service providers. …(Read more on Vietnam Shipper Issue No. 114)

 

Airfreight

Overcapacity Challenges Intra-Asia Ocean Carriers

Shipping lines could find the intra-Asia trades an unhappy hunting ground in 2014 after a similarly tough 2013. But the long-term outlook remains positive.

According to data from the 31-carrier Intra-Asia Discussion Agreement, demand on the region’s hundreds of lanes grew 3 to 4 percent through the first three quarters of 2013, a far cry from the double-digit growth recorded in previous years. China remains the key player on Asia’s shipping lanes, but political tension with Japan has hurt flows between the region’s two largest economies.

Vessel oversupply and weaker-than-expected demand has been a key factor, as carriers have cascaded tonnage into the trade as they expand their fleets. …(Read more on Vietnam Shipper Issue No. 114)