Alpha Pacific Transport Group

Super Typhoon Yagi hits China’s Hainan

Asia’s strongest storm, Super Typhoon Yagi, made landfall in northern Vietnam, after tearing through China’s island of Hainan and the Philippines. Yagi registers as the world’s second-most powerful tropical cyclone.

Vietnam’s coastal city of Haiphong, an industrial hub with a population of 2 million people that hosts factories for foreign multinationals and local carmaker VinFast, was among the hardest-hit by winds with speeds of up to 90kph.

Earlier in Hainan, which has a population of more than 10 million, the storm felled trees, flooded roads and cut power to more than 800,000 homes.

Typhoons are becoming stronger, fuelled by warmer oceans amid climate change, scientists say. Last week, Typhoon Shanshan slammed into south-western Japan, the strongest storm to hit the country in decades.

https://www.bbc.com/news/articles/c4gz3rk71n7o

Margins for the nine largest shipping liners topped 20% in Q2 2024, the highest since the Covid-19 pandemic

Alphaliner’s report stated that margins for the nine largest liner operators topped 20% in Q2 2024, the highest since the Covid-19 pandemic, as the tonnage overhang was absorbed by the Red Sea crisis.

As in the early days of the pandemic, carriers with strong spot exposure to Far East exports performed best in the latest quarter. Taiwanese operator Evergreen Marine Corporation (EMC) has the highest margin, at 30.7%, after operating profit of US$1 billion.

Effective cost control and raising revenue has enabled EMC to achieve the best margins among all operators for half of the last 14 quarters.

EMC’s compatriot peer Wan Hai Lines has the second-best margin, at 28.5%, after overturning a loss-making 2023 to stay profitable in 2024 to date.

Alphaliner opined that Wan Hai’s newbuilding spree during the pandemic was well-timed for the resurgent market amid the Red Sea crisis, which has absorbed excessive vessel supply due to detours round the Cape of Good Hope.

The consultancy said, “Wan Hai has taken delivery of 40 ships of 265,000 TEU over the past two years and with a rising cost base, would have faced a very different set of figures without the impact of the Red Sea crisis.”

HMM and Yang Ming were jointly, the third best performer where margins were concerned, recording margins of 26.9% in the quarter.

ZIM Line and COSCO had margins of over 20%, while ONE’s margin was just 15.8%, reflecting its concentration on long-term shipping contracts.

Margins for Maersk Line and other European carriers were also comparatively lower due ti their focus for long-term shipping contracts. For the third straight quarter, Maersk had the lowest margins among major operators, with a 5.6% margin in Q2 2024.

COSCO, which achieved a US$1.6 billion operating profit in Q2 2024, had a margin of 24.9% and said that faster growth in emerging markets like South America and East Africa is another factor in earnings.

Source: Alphaliner

Indonesia Awaits License to Export Electricity to Singapore

Indonesia is currently seeking the Singaporean government’s green light before it can start exporting solar power to the city-state, according to a senior government official.

Several Indonesian companies had already secured conditional approvals from Singapore’s Energy Market Authority (EMA). For reference, the EMA is a statutory board under Singapore’s Trade Ministry that is in charge of ensuring that the country has a resilient and secure energy supply. Jakarta is now keeping its fingers crossed that it can secure a conditional license when it hosts the Indonesia International Sustainability Forum (ISF) next week, which it claims to be the second-largest climate action conference after the UN’s COP29 in Azerbaijan.

Singapore is seeking to import 4 gigawatts of low-carbon electricity by 2035. Half of that electricity is set to come from Indonesia.

https://jakartaglobe.id/business/indonesia-awaits-license-to-export-electricity-to-singapore

Decarbonization now drives China's Belt and Road push

The Belt and Road Initiative, Chinese President Xi Jinping's signature international infrastructure building program, may have hit snags with some projects, but China's massive green energy push is helping it gain geopolitical and economic influence.

China is a global leader in developing technology aimed at reducing carbon dioxide and other greenhouse gas emissions. Chinese electric vehicles are increasing their market share in Europe and beyond, while Chinese solar panels and wind turbines are also winning customers worldwide.

Chinese manufacturers of electric vehicles are expanding rapidly in Europe. Last year, Chinese EVs captured 19% of the European Union market by unit sales. Transport & Environment, a European think tank, forecasts this share will reach 25% this year.

Concerned about the sharp rise in Chinese EV sales, the European Union imposed additional tariffs in July. EU trade officials allege that Chinese EV makers benefit from massive government subsidies, undermining fair competition.

In the first half of 2023, China stepped up investment in solar and wind power projects in developing countries, particularly in Asia and Africa, as part of the Belt and Road Initiative. China's dominance in nearly all related technologies set off alarm bells at the International Energy Agency, which stresses the need to promote supply chain diversification.

One factor contributing to China's success in developing decarbonization technology and products is its large domestic market. Intense competition among Chinese manufacturers over cost and technology has driven innovation. Additionally, the government has actively promoted renewable energy, gradually transforming the country's power mix.

China's expanding role in decarbonization has increased its influence over the industrial policies of others, particularly in developing and emerging economies.

https://asia.nikkei.com/Spotlight/Datawatch/Decarbonization-now-drives-China-s-Belt-and-Road-push

Construction Work Officially Begins on Bali’s Urban Rail Network

The Bali Urban Rail Network is set to completely change the way in which both local residents and tourists travel around South Bali.

The project has been identified as one of the most impactful ways to deal with Bali’s traffic congestion issues in the long term. The multi-billion dollar initiative will take years to complete.

On September 4th, the Acting Governor of Bali, Sang Made Mahendra Jaya, joined with the Regent of Badung, Nyoman Giri Prasta, spiritual leaders and representative for PT Sarana Bali Dwipa Jaya (PT SBDJ), and PT Bumi Indah Prima, to take part in the laying of the first stone; a ceremony in Bali known as Ngeruak. The ceremony was led by Ida Ratu Peranda Geriya Gulingan.

It is now clear that the tenders for the Bali Urban Rail Network, awarded by the Bali Provincial Government, have been facilitated by PT SBDJ, who have identified PT Indotek as the main contractor with China Railway Construction Corporation (CRCC). The company will collaborate with the local contractor PT Sinar Bali Bina Karya (Sinar Bali).

The President Director, Ari, continued, “We chose CRCC because it has a reputation as a global train transportation contractor with experience in building 200 thousand kilometers in more than 100 countries. Meanwhile, PT Sinar Bali Bina Karya is a local contractor in Bali that has been providing the best ready mix and precast in Bali since 1995.”

https://thebalisun.com/construction-work-officially-begins-on-balis-urban-rail-network/

Investment Realization Hits Rp 829.9 Trillion in the First Half of 2024

Investment Minister and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, announced that Indonesia's investment realization for the first half of 2024 reached Rp 829.9 trillion ($53.59 billion).

Roeslani highlighted that this figure accounts for 67 percent of the ministry's target of Rp 1,239 trillion. However, compared to President Joko Widodo's investment target of Rp 1,650 trillion, the realization for the first half of 2024 is about 50.3 percent.

Foreign Direct Investment (FDI) and Domestic Investment (DI) were also nearly balanced, with FDI amounting to Rp 421.7 trillion (50.8 percent) and DI totaling Rp 408.2 trillion (49.2 percent).

https://jakartaglobe.id/business/investment-realization-hits-rp-8299-trillion-in-first-half-of-2024

China Southern leads way on profits among top Chinese carriers in first half

China Southern Airlines continues to lead the way among the country’s leading three operators after more than trebling its operating profit at the halfway point of the year, though all three remain in the red at a net level amid mixed fortunes.

Indeed, while China Southern and China Eastern both enjoyed improved fortunes for the first half, Air China’s operating losses deepened over the same period.

China Southern posted an operating profit of CNY4.5 billion ($633 million) over the first six months of the year, as revenues rise 18% to CNY84.8 billion.

While the carrier still made a net loss of CNY400 million over the first half, it did mark a significant reduction on the almost CNY2.5 billion it lost at the same stage last year.

Meanwhile, China Eastern remains in the red at a net level with a loss of CNY3.1 billion – though this was a more than halving of the CNY6.6 billion it lost six months before.

https://www.flightglobal.com/airlines/china-southern-leads-way-on-profits-among-top-chinese-carriers-in-first-half/159797.article

First YoY (year-over-year ) rise in East-West Contract Rate Index for more than a year; warning of further rises in ocean contract rates

The Drewry East-West Contract Rate Index (for which 100 was the contract price paid at the end of 2019) is now firmly on the rise, with a net year-on-year increase of 2% recorded in the year to August 2024, bringing the index reading to 118.8.

Although this looks like a modest year-on-year increase, Drewry stresses that further rises in ocean contract rates should be expected. It is also a change of trend: the last time we saw year-on-year increases in average East-West contract rates was in April 2023, as the pandemic inflation was reversing. The vast majority of ocean shipments are shipped under contract rates, so this return to inflation in contract rates is much more significant than a short-term change in spot market trends.

Contract Rate Index increase is the result of three factors:
1. the inflationary impact of Red Sea surcharges,
2. the effect of peak season surcharges ,
3. and the indirect effect of consistently high rates on spot shipments (spot rates being much higher than contract rates).

As many shippers/Beneficial Cargo Owners and Chief Financial Officers know, international transportation costs are no longer a secondary topic and now accounts for a big share of the total indirect costs of multinationals.

https://www.linkedin.com/posts/philip-damas-b23b7011_procurement-freightrates-budgeting-activity-7237126094498217985-12ZO/

Hongkongers can visit Indonesia without visa as city joins only 1 of 3 non-Asean members

Hong Kong passport holders can once again travel to Indonesia visa-free after the city became one of three places outside the Asean bloc to be granted an exemption.

Businesses welcomed the update over travel rules from the country’s consulate in the city, with a chamber of commerce saying it would make visits easier for potential investors.

“I believe that the Indonesian government wants to attract more people to come to Indonesia,” said Brian Chan Pak-lam, vice-president of the Indonesia Chamber of Commerce in Hong Kong.

“It’s always better if you have less friction, although it is not that difficult to get a visa on arrival.”

The city was included in Indonesia’s latest list of 13 countries and regions entitled to visa-free entry under a decree signed by President Joko Widodo last week, with the consulate confirming the policy change on social media.

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3277211/hongkongers-can-visit-indonesia-without-visa-city-joins-only-1-3-non-asean-members

Trinasolar-Vanda RE strike deal for RI-Singapore renewable electricity export

Vanda RE Pte Ltd, a joint venture company majority-owned by Singapore energy company Gurīn Energy Pte Ltd, on Wednesday, September 4, 2024, signed a framework supply agreement with Trinasolar, a global leader in smart photovoltaic (PV) and energy storage solutions, a step forward towards progressing Vanda RE’s renewable energy export project in Indonesia.

Under this agreement, Trinasolar will supply 1.2GW of its inustry-leading Vertex N n-type i-TOPCon advanced technology based on the 210mm product technology platform. Trinasolar’s n-type i-TOPCon module recently broke the world record for power output, reaching 740.6W in a lab setting.

The 1.2GW framework supply agreement will see Trinasolar’s solar PV modules deployed in Vanda RE’s utility-scale project in Riau Islands Province. This is part of the Vanda Solar & Battery Project, underpinned by 2GW of solar PV installed capacity and 4.4GWh of battery storage, ranking it among the largest planned projects of its kind worldwide.

Once completed in 2027, the project will supply Singapore with 300MWh of non-intermittent, zero-emission electricity − enough energy to power 390,000 households in Singapore annually. Vanda RE’s project received conditional approval from Singapore’s Energy Market Authority (EMA) last year, as part of the Indonesian and Singapore governments’ plan to establish a green electricity trading corridor between the two countries.

https://indonesiabusinesspost.com/insider/trinasolar-vanda-re-strike-deal-for-ri-singapore-renewable-electricity-export/

Pakistan-Indonesia trade soars to USD 3.34 billion

Acting Consul General of Indonesia in Karachi Teguh Wiweko has said that despite global challenges, bilateral trade between Indonesia and Pakistan reached an impressive $3.34 billion in 2023 and recorded a remarkable growth of 69.99% in the first quarter of 2024.

Responding to remarks made by Hyderabad Chamber of Small Traders and Small Industry President Muhammad Farooq Shaikhani, the envoy announced that the 39th Trade Expo Indonesia would be held from October 9 to 12, 2024 under the theme of "Build Strong Connection with the Best of Indonesia."

Indonesian products including coffee, biscuits, noodles and children's food items are gaining significant popularity in Pakistan. Furthermore, Indonesia's crude palm oil holds a dominant 80% share in the Pakistani market.

In 2023, Indonesia imported approximately 500,000 metric tonnes of rice from Pakistan with the total value exceeding $300 million. This remarkable achievement represents a significant increase in Pakistan's rice exports to Indonesia compared to $188 million in 2022.

https://tribune.com.pk/story/2493613/pakistan-indonesia-trade-soars-to-334b

Indonesia-EU CEPA negotiations 90% complete

Negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) are nearly 90 percent complete, with the agreement expected to be finalized this month, according to Trade Minister Zulkifli Hasan.

The minister made a similar statement on August 29, saying that negotiations on trade agreements, including IEU-CEPA, must be concluded before the new government led by President-elect Prabowo Subianto comes into office in October.

He noted that Indonesia's trade balance has posted a surplus for 51 successive months, while stressing the need to continually strengthen it by tackling trade barriers through diplomatic agreements.

Hence, Indonesia has been seeking to wrap up the nine years of negotiations on IEU-CEPA, an agreement that is expected to help both parties tackle various obstacles impeding bilateral trade, he said.

https://en.antaranews.com/news/324771/indonesia-eu-cepa-negotiations-90-complete-minister

New university unveiled in Bandung

A groundbreaking educational institution has come to Bandung, West Java. Deakin University Lancaster University Indonesia introduces a unique dual-degree program, allowing students to obtain a bachelor’s degree from both Deakin University in Australia and Lancaster University in the UK in three years of study.

All courses offered by Deakin University Lancaster University Indonesia have obtained approval of the Indonesian Government and are equivalent to a Sarjana degree from a local Indonesian university.

Deakin University Lancaster University Indonesia is initially offering five undergraduate programs in the areas of Business and Computing. Students will have multiple entry points to the dual-award bachelor degree programs, including direct entry, or through foundation studies that prepare them for entry into their first year of degree study.

https://www.macaubusiness.com/new-university-unveiled-in-bandung-deakin-university-lancaster-university-indonesia-launches-dual-degree-programs-for-providing-global-education-to-students-in-indonesia/

President Jokowi Opens 2nd Indonesia Africa Forum (IAF) in Bali

President Jokowi officially opened the Joint Leaders’ Session of the High Level Forum on Multi Stakeholder Partnership (HLF MSP) and the 2nd Indonesia Africa Forum (IAF) in Nusa Dua, Badung, Bali.

The President stated that the presence of state leaders and international organizations showed the commitment to change in the midst of a world full of challenges, including economic slowdown, unemployment, inflation rate, as well as ongoing geopolitical tension that has caused many casualties and disrupted the global supply chain.

President Jokowi further said that the global solidarity needs to be revived to enhance South-South Cooperation as well as North-South Cooperation. According to the President, next year Indonesia will hold the Platinum Jubilee of the Asian-African Conference to commemorate the 70th anniversary of the Asia Africa Summit.

https://setkab.go.id/en/president-jokowi-opens-2nd-indonesia-africa-forum-iaf-in-bali/

Indonesia-Africa Forum 2024 Records 32 Business Cooperation Worth 3.5 Billion US Dollars

The 2nd Indonesia-Africa Forum (IAF) 2024 which ended on Tuesday evening, managed to record business cooperation with a total value of more than 3.5 billion US dollars (Rp54,481,746,200,000).

Director of Africa, Directorate General of Asia, Pacific and African Ministry of Foreign Affairs of the Republic of Indonesia, Dewi Justicia Meidiwaty, said that several important agreements were reached, among others, the signing of four business agreements in the strategic industrial sector, nine agreements in the health business sector and six agreements in the new and renewable energy business sector (EBT).

He explained that the 2nd IAF is not only an event for State-Owned Enterprises (BUMN) and the private sector to achieve potential business cooperation. However, it also involves Micro, Small and Medium Enterprises (MSMEs) to collaborate together.

This can be seen from the achievement of 16 business agreements between Indonesian MSMEs and African companies, in an exhibition that lasted two days and received visits from five African national leaders.

https://voi.id/en/news/413509

Pope Francis arrives in Indonesia, kicks off ambitious Asia-Pacific tour

Pope Francis began the first leg of an ambitious Asia-Pacific tour expected to urge global action on climate change as part of his longest trip yet.

The 87-year-old pontiff, who will also visit East Timor, Singapore and Papua New Guinea over the next 10 days, was seated in a wheelchair as a lift disembarked him from a chartered aircraft at Jakarta airport.

The pontiff is set to travel nearly 33,000 km (21,000 miles)on the 12 days of the Asia-Pacific tour, before he arrives back in Rome late in the evening of Sept. 13.

Francis, who is not only the leader of the world's 1.4 billion Catholics but also the Vatican's head of state, wired customary greetings to every country he crossed on the way to Indonesia, including Iran, India, Pakistan and Turkey.

Just 3 per cent of a population of about 280 million is Catholic in Indonesia, which is the world's most populous Muslim-majority nation.

https://www.business-standard.com/world-news/pope-francis-arrives-in-indonesia-kicks-off-ambitious-asia-pacific-tour-124090300564_1.html

Ace Hardware will leave Indonesian market by the end of 2024

PT Aspirasi Hidup Indonesia Tbk (AHI) decided not to continue the licensing agreement with ACE Hardware International Holdings, Ltd. After 29 years, the license with ACE Hardware will expire on December 31st, 2024.

AHI reported a solid financial performance in the first semester of 2024 with an increase in net profit of 21% to Rp. 366 billion compared to the same period in the previous year.

https://economy.okezone.com/read/2024/09/02/278/3057704/ace-hardware-pamit-dari-indonesia-usai-29-tahun

Ocean carriers 'fire blanks' ahead of China’s Golden Week holiday

Fearing another container spot rate crash, ocean carriers have blanked a number of export sailings from Asia to Europe and Asia to the US, prior to the Chinese national holiday in early October.

A carrier contact told The Loadstar this week he expected to see “many more” void sailings this year in the key soft-demand weeks of the slack season.

Drewry’s latest blanked sailings assessment puts the notified cancellation rate in September for scheduled sailings on the transpacific, Asia-Europe and the transatlantic at 10% to date.

“Over the next five weeks, THE Alliance have announced 17 cancellations, followed by the Ocean and 2M alliances with 12 and 10 respectively,” said the consultant.

Drewry said 51% of the blanked sailings notified to date were on the transpacific, 28% on Asia-Europe and 21% on the transatlantic.

In shipper advisories, Maersk said it was “looking to balance the network in light of forecast reductions in demand”, while its 2M alliance partner, MSC, said it would adjust capacity in weeks 39 and 40, “due to an anticipated slowdown in demand”.

While spot rates from Asia to Europe and on the transpacific eastbound route have been declining steadily for several weeks, there is no evidence so far of heavy discounting by the major carriers that would cause freight rates to collapse.

Meanwhile, transpacific rates are also holding up well, with the WCI’s headhaul spot rate to the US west coast edging down by just 2% on the week, to $6,248 per 40ft, with US east coast rates down by the same percentage, tot $8,591 per 40ft.

Spot rates on the tradelane remain elevated however, up year-on-year by 180% and 150% respectively, for Asia to the US west and east coasts.

Elsewhere, on the transatlantic westbound North Europe to US east coast route spot rates remained stable, at around $2,000 per 40ft, with exporters starting to run out of time to ship their goods ahead of potential industrial action at the east coast ports.

Source: LFS Group Newsletter

Sea freight rates cool, port volumes break records

In the first seven months of 2024, the volume of goods passing through Vietnamese seaports reached an estimated 501.117 million tonnes, marking a 16 per cent increase compared to the same period in 2023, reports Hanoi's Vietnam News Agency.

According to the Viet Nam Maritime Administration (VMA), sea freight rates have recently decreased four per cent compared to the previous week.

The import and export of cargo through seaports have surged to their highest levels in the past five years.

VTC News reported that container cargo throughput during this period is estimated at 16.9 million TEU, a 21 per cent increase compared to last year.

The Cai Mep - Thi Vai deepwater port area saw a 41 per cent increase in container cargo, reaching 2.8 million TEU compared to 2023. The Lach Huyen port area recorded 875,000 TEU, an 87 per cent increase over 2023.

Source: LFS Group Newsletter

Foreign airlines lose interest in China as domestic carriers expand abroad

Chinese airlines are gaining international market share as foreign carriers reduce or suspend flights to China, citing low demand, higher costs, and longer flight times due to avoiding Russian airspace. In contrast, Chinese airlines continue to expand, benefiting from shorter routes over Russia.

The share of international flights operated by Chinese carriers has risen since the pandemic, while airlines like British Airways and Qantas have cut services, citing commercial reasons and low demand.

Chinese carriers enjoy up to 30% lower costs than their international competitors, allowing them to capture more market share. They benefit from shorter flight paths over Russia, enhancing their competitive edge.

Foreign airlines are pulling back from China, with many operating fewer flights than before the pandemic. For example, only Chinese airlines now offer non-stop flights between Mexico and China.

Chinese airlines are expanding their international operations to earn hard currency, while foreign carriers struggle with overcapacity and challenging market conditions.

https://www.thejakartapost.com/business/2024/08/09/foreign-airlines-lose-interest-in-china-as-domestic-carriers-expand-abroad.html.

Chinese manufacturing contracts for fourth straight month

Chinese manufacturing contracted for a fourth consecutive month in August, a worse-than-expected result reflecting the world's second-largest economy's struggle to recover.

China is facing a crisis in its vast real estate sector as well as lackluster confidence among households and businesses, which is hindering consumption, while geopolitical tensions with Washington and the European Union threaten foreign trade.

While some sectors have largely regained their strength -- including tourism and the auto industry -- others are struggling, particularly real estate, a key growth driver.

In July, demand for bank loans contracted for the first time in nearly 20 years, according to official figures, also indicating a slowdown.

https://www.thejakartapost.com/business/2024/08/31/chinese-manufacturing-contracts-for-fourth-straight-month.html

Emirates to Operate Second Airbus A380 on Bali-Dubai Route

Emirates announced a second daily A380 service between Bali and Dubai from the 1st of September until the 26th of October, 2024. The upcoming Airbus aircraft aims to keep up with the influx of travel demands to Bali, especially in anticipation of the upcoming holiday season.

Set to serve the travel demands to Bali with two A380 flights, Emirates plans to offer at least 2,600 additional seats each week to and from the Island of Gods. Moreover, with these additional services, Emirates is hoping that more passengers to and from Indonesia can enjoy the best-in-class products and services; the additional services in question include spacious cabins, exclusive onboard lounges, and an inflight entertainment system that offers more than 6,500 channels of on-demand entertainment.

Previously, back in May, the Indonesian Minister of Tourism and Creative Economy, Sandiaga Uno, revealed that Emirates was interested in adding flights to Bali. Uno also noted that the Airbus A380-type airline with flights to Bali, preferably the morning ones, was very popular among foreign tourists looking to visit the Island of Gods.

https://indonesiaexpat.id/travel/emirates-to-operate-second-airbus-a380-on-bali-dubai-route-in-september/

COSCO orders a dozen of 14,000 teu ships

COSCO Shipping, the world’s fourth largest containerline, has ordered a dozen 14,000 teu ships at a sister firm in Jiangsu province rounding off one of the busiest months for global containership orders ever.

The state-run line is paying $2.15bn for the methanol dual-fuelled ships which will be built at COSCO Shipping Heavy Industry Yangzhou.

COSCO, the world’s largest shipowner, is a big believer in methanol as a future fuel. Last year it teamed with three other state-run firms – State Power Investment Corporation Limited (S**C), Shanghai International Port Group (SIPG), and China Certification & Inspection Group (CCIC) – to develop a green methanol industrial chain which will comprise the production, transportation, refuelling, and certification of green methanol for ships.

https://splash247.com/cosco-orders-a-dozen-14000-teu-ships/

Container Shipping’s Fleet Expansion Continues

The global container shipping industry is experiencing a significant surge in fleet expansion, according to recent data from BIMCO.

Despite initial signs of a slowdown in late 2023, the appetite for new ships remains strong, with year-to-date contracting in 2024 already surpassing the full-year total for 2023.

The recent surge, combined with previous contracts, has led to a potential 44% increase in new capacity compared to the fleet size at the beginning of 2021.

However, actual fleet growth will depend on ship recycling rates. Since 2021, only 150 ships (0.24 million TEU) have been recycled, leading to a 25% fleet expansion and an increase in the average age of container ships from 13.0 to 13.9 years.

The current order book to fleet ratio stands at 22%, indicating potential for further fleet growth. This expansion has proven beneficial during the recent Red Sea crisis, which has increased demand for ships due to lengthened voyages.

Looking ahead, the fleet is expected to grow by at least 12% before the end of the decade, equivalent to an average annual growth rate of 2.4%.

Source: LFS Group Newsletter

Strike at major Indian ports called off, but supply chain challenges remain

Fears of supply chain disruption from an indefinite strike by Indian port workers have eased.

The action across 12 major ports was planned to begin 28th Aug was cancelled after negotiators representing India’s shipping ministry agreed wage enhancements and additional fringe benefits for some 20,000 workers.

The local shipping and logistics communities have expressed relief that a deal was struck in time to avert trade disruption. Some industry groups had pressed the government to intervene and resolve the impasse in the overall interest of trade and business.

Among the government-controlled ports, terminals at Nhava Sheva, Chennai, V.O. Chidambaranar (Tuticorin), Cochin, Visakhapatnam and Kamarajar (Ennore) represent significant containerised traffic. According to the latest data, combined box volumes out of major ports from April through July stood at 4.3m teu, up 9.6% year on year.

A nationwide port strike, even with scattered local impacts, would have disrupted cargo flows just as exporters were making every effort to maximise shipments in the peak season.

Source: LFS Group Newsletter