Maersk schedules vessels through Suez Canal

According to Reuters, Denmark's Maersk has scheduled several dozen container vessels to travel via the Suez Canal and the Red Sea in the coming days and weeks, it said on Wednesday, in a further sign that global shipping firms are returning to the route.

The world's top shipping companies, including container giants Maersk and Hapag-Lloyd, announced to stop using Red Sea routes after Yemen's Houthi militant group began targeting vessels earlier this month.

Maersk's share price fell 5% by 1330 GMT on Wednesday, partly reversing last week's gains, as a return to the shorter routes through the Suez Canal from voyages around Africa might prompt a freight rates correction.

Other shipping stocks also fell, including Hapag-Lloyd which dropped 6%, oil tanker group Frontline which was down 5.3% and car shipping service Hoegh Autoliners which was 3% lower.

Maersk said on December 24 it was preparing a return to the Red Sea for both eastbound and westbound journeys, citing the deployment of a US-led military operation to protect vessels against Houthi attacks, but provided few details.

The schedule remains subject to change based on specific contingency plans that may be formed over the coming days, the company said on Wednesday.

France's CMA CGM on Tuesday said it was increasing the number of vessels travelling through the Suez Canal.

Among the vessels listed in a Maersk advisory to clients on Wednesday was the Maren Maersk, which departed Tangiers on December 24, 2023 and would continue via Suez Canal with an estimated time of arrival in Singapore on January 14, 2024.

But many of its vessels are still scheduled to take the journey around Africa, the advisory showed.

Maersk has since December 19 rerouted ships around Africa via the Cape of Good Hope to avoid attacks, charging customers extra fees and adding weeks to the time it takes to transport goods from Asia to Europe and to the east coast of North America.

It announced on December 22 that it would add charges of US$700 for a standard 20-foot container travelling from China to Northern Europe, consisting of a US$200 transit disruption surcharge and a US$500 peak season surcharge.

The transit disruption charge was imposed last week with immediate effect while the peak season addition is valid from January 01, 2024. It was not immediately clear how the decision to restart some Red Sea shipments would affect the surcharges.

The company declined to comment further when asked about its vessel schedules.

"At the moment, we cannot say anything more than what has been shared," a Maersk spokesperson said in a statement.

German rival Hapag-Lloyd still considers the situation too dangerous to pass through the Suez Canal, a spokesperson for the company said on Wednesday, adding that it would continue to reroute its vessels via the Cape of Good Hope.

 

 

Maersk to pause container ship traffic through Red Sea

Danish shipping company A.P. Moller-Maersk will pause all container shipments through the Red Sea until further notice and send them on a detour around Africa, a spokesperson for the company told Reuters on Friday.

"Following the near-miss incident involving Maersk Gibraltar yesterday and yet another attack on a container vessel today, we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice," the company said in a statement.

Maersk on Thursday said its vessel Maersk Gibraltar was targeted by a missile while travelling from Salalah, Oman, to Jeddah, Saudi Arabia and that the crew and vessel were reported safe.

Earlier on Friday Maersk denied a claim by Yemen's Iran-aligned Houthi movement that the militia had struck a Maersk vessel sailing towards Israel.

"The vessel was not hit," a Maersk spokesperson told Reuters in an emailed statement following the Houthi claim.

The Houthis had claimed they carried out a military operation against a Maersk container vessel, directly hitting it with a drone. The Houthis, who made the claim in a statement, did not release any evidence.

Maersk said the company was deeply concerned about the highly escalated security situation in the southern Red Sea and Gulf of Aden.

"The recent attacks on commercial vessels in the area are alarming and pose a significant threat to the safety and security of seafarers," it wrote in the statement.

 

 

Shipping industry grapples with ways to cut cargo fires at sea

Global shipping companies are exploring ways to boost safety in transporting cargoes as risks grow from fires erupting inside containers or in cars at sea, officials said on Wednesday.

Shipping transports around 90% of world trade onboard different vessels including container and Ro-Ro ships with trade routes getting busier.

In a new initiative, leading carriers Evergreen Line of Taiwan, South Korea's HMM, Denmark's Maersk, Germany's Offen Group, Singapore's ONE (Ocean Network Express), Hong Kong's Seaspan as well as British ship certifier Lloyd's Register said they are looking into feasibility studies to understand how cargo is loaded and also monitored at sea, as well as finding solutions to detect fire onboard ships and speed up ways to stop it spreading.

"The priority for the first challenge area is to provide earliest indication of a fire incident, thus allowing the appropriate onboard responses to prevent the occurrence of large fires and loss," Rich McLoughlin, Program Director for the cargo fire and loss innovation initiative, told Reuters.

"The initiative seeks to provide proof-points that emerging tech may be used to improve response times over the existing regulatory requirements, leading to enhanced vessel safety."

In its 2022 safety and shipping review, analysis by major insurer Allianz Global Corporate & Specialty showed there had been over 70 reported fires on board container ships alone in the past five years, with growing risks faced by car carriers transporting electric vehicles using batteries.

"The main root cause for cargo fires on container ships is the integrity of dangerous goods throughout the supply chain. Therefore, it is a problem that can only be improved through industry wide solutions," Maersk's Aslak Ross said separately in a statement.

 

Maersk and MSC to end alliance beginning 2025

Denmark's Maersk and Swiss-based MSC, the world's largest container shipping companies, said on Wednesday they had agreed to end a vessel sharing alliance in January 2025, allowing them to pursue individual strategies.

The 2M alliance was introduced in 2015 to cope with a glut of ships and weak demand, and to ensure competitive and cost-efficient operations on main shipping routes from Asia to Europe, as well as across the Atlantic and Pacific oceans.

Both companies saw the alliance as a way to manage more capacity after purchasing new mega-ships.

More recently, MSC responded to rising shipping rates caused by pandemic-related delays and bottlenecks by increasing the size of its fleet, while Maersk has kept its fleet size mostly steady.

"Today, we have a much different strategy, where we more look at how to integrate container shipping at sea with our land-based logistics business," Maersk's head of ocean shipping Johan Sigsgaard told Reuters in an interview.

"Operating our own network gives us more flexibility and allows us to connect our ships exactly where we want," he said.

Maersk expects to be able to deliver ocean shipping at the same scale when the partnership with MSC ends without raising the cost of moving each container at sea, Sigsgaard said.

Shares in the company fell after the announcement and were trading 3.6% lower at 1103 GMT.

MSC said in a statement, "We continue to strengthen and modernize our fleet, providing us with the scale we need for the most comprehensive ocean and short-sea shipping network in the market."

MSC, privately owned by the Aponte family, overtook Maersk as the world's biggest container in 2021. Both companies hold market share of around 17%.

"We have been fighting fiercely over customers and market share the last eight years. I don't see increased competition as a result of this," Sigsgaard said.

 

 

 

Shenzhen lockdown: Ports operational but warehouses closed

The southern Chinese port city Shenzhen has started a seven-day Covid-19 city-wide lockdown, which is impacting landside logistics, but ports are operating normally.

Under the lockdown that started on March 14, public services and daily supplies are operating. However city transportation has been suspended.

The regional container hub, Yantian International Container Terminal announced that it maintained normal operation since the escalation of local Covid-19 prevention and controls and is making great efforts to keep the supply chain running smoothly in Great Bay area, as well as the materials supply supporting Hong Kong.

A Covid outbreak last year in Yantian port that closed around two-thirds of capacity for a three-week period sent shockwaves through the supply chain.

Chiwan container terminal and Dachan Bay terminal also reported stable port operation amid the current situation. 

Shipping lines Maersk and OOCL said in customer advisories that the three ports were working normally.

However, landside logistics are likely to see delays. Maersk said: “The overall landside transportation situation is dynamic subject to change. Trucking service for now is still available providing the drivers hold negative Nucleic Acid Test (NAT) report requested by local governments. We foresee the overall trucking operational efficiency will be reduced significantly due to the frequent NATs, especially in Hong Kong, Shenzhen, West Pearl River Delta, Shanghai, Yangtze inland ports, Qingdao and Tianjin.”

Several local logistics parks and warehouses announced that they have suspended cargo exit and entry business and are under close-off management. Maersk said warehouses in Shenzhen remained closed from 14 – 20 March.

Foxconn, which manufacturer iPhones, has halted operations of its factories in Shenzhen.

China is maintaining a strict zero-Covid policy, which is facing a major test with growing Omicron variant outbreaks.