Hello Club Members! Here is your weekly Dispatch with all the maritime news you need to know to end your week.
A.P. Moller-Maersk, the world’s second-largest shipping line, this week upgraded its full-year 2024 guidance for the second time in a month, increasing its projected underlying EBITDA from $4-6 billion to $7-9 billion and revising EBIT from -$2 to $0 billion to a positive $1-3 billion.
According to a HSBC Global Research report released this week, additional upgrades are expected as spot rates surge with the early onset of peak shipping season, driven primarily by Red Sea reroutings and concerns over U.S. tariffs. With the uncertainty surrounding Red Sea, HSBC expects spot rates to remain elevated at least through the third-quarter peak season, which may prompt Maersk to further upgrade its FY24 outlook.
Prominent Greek shipowner Evangelos Marinakis also predicts a rally in container and commodity shipping rates if disruptions continue due to Houthi attacks in the Red Sea. Marinakis said this week he anticipates that the prolonged impact longer voyages around Africa will be felt in the second half of the year, leading to a tighter market as the supply of vessels may not meet demand.
In contrast, Hapag-Lloyd Chief Executive Rolf Habben Jansen, who is admittedly more optimistic than his peers on the Red Sea situation, believes the recent surge in demand for container shipments might be short-lived. The CEO attributes the increase since May to restocking, high customer demand, and shippers bringing forward shipments to avoid peak season chaos. However, unlike many, he predicts the situation in the Red Sea will ease before the year-end, which would mean a quick return to normal for the container shipping market.
Meanwhile, Container xChange has come out with a report predicting a market correction in the second half of 2024, as recent container price increases seem unsupported by robust underlying demand. The report argues high-interest rates and labor market concerns are expected to curb consumer spending.
With Drewry’s WCI and the SCFI up solidly again this week to yearly highs, more gains are expected in the weeks and maybe even months ahead, but who are we to say for certain.
It seems the prevailing sentiment at Greece’s flagship shipping event, Posidonia, held this week in Athens, was that geopolitical conflicts and uncertainties about new ship supply and future alternative fuels are setting the stage for a prolonged earnings boom for shipowners.
With ongoing geopolitical tensions, such as attacks in the Red Sea and Russia’s invasion of Ukraine, shipping magnates expect a more volatile world, which some believe will be beneficial for the industry in the short-to-medium term, but detrimental in the long run. High earnings could also slow shipping’s efforts to decarbonize, as there’s little incentive to modify ships to burn cleaner fuels. Bottom line, the industry is preparing for a prolonged era of volatility where risk is the new normal, but the potential rewards huge.
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U.S. container imports saw significant growth in May 2024, with an 11.9% increase year-on-year and a 6.2% increase from April 2024, according to Descartes’ latest shipping report. Chinese imports also continued to rise, with May’s volume becoming second highest since January 2023, surging 17.6% over the previous month, despite being 11.3% lower than the peak of August 2022. Despite improvements in transit delays at ports, the global supply chain remains vulnerable due to issues at the Panama and Suez Canals, conflict in the Middle East, and potential labor disputes at U.S. South Atlantic and Gulf Coast ports, the report says.
The fourth edition of the Global Container Port Performance Index (CPPI) report released this week by the World Bank and S&P Global Market Intelligence highlights the dominance of East and Southeast Asian ports, occupying 13 out of the top 20 spots.
The CPPI ranks the top 405 global container ports based on efficiency, with a particular focus on the duration of container vessels’ port stays.
China’s Yangshan Port, near Shanghai, retained the top spot for the second consecutive year. Oman’s Port of Salalah secured the second position, while the Port of Cartagena in Colombia climbed to third. Tanger-Mediterranean in Morocco held steady in fourth place, and Malaysia’s Tanjung Pelepas Port rounded out the top five.
In stark contrast, top U.S. ports continued to rank towards the bottom in terms of efficiency. Los Angeles and Long Beach, two of the busiest ports in the U.S., ranked 375 and 373 respectively. The Port of New York/New Jersey fared better at 92, while Savannah and Oakland were near the bottom at 395 and 397 respectively. Other U.S. ports like Houston, Norfolk, and Seattle/Tacoma also ranked poorly. Charleston ranked the highest among its compatriots, coming in at number 52.
Read the report: Global Container Port Performance Index (CPPI) report
In a major milestone, salvage crews in Baltimore have successfully removed the final large steel truss segment of the collapsed Francis Scott Key Bridge.
The intricate operation was executed between June 3-4, involving the use of concrete breakers, underwater surveys, and oxyacetylene torches to disentangle tons of concrete roadway, cable, and steel rebar from a segment known as “Section 4C”. The debris was subsequently removed using clamshell dredges.
Over the past ten weeks, crews with the Unified Command have been progressively clearing the main federal channel, aiming to restore the Fort McHenry Federal Channel to its original 700-foot width and 50-foot depth. As of May 20, the channel has been widened to 400 feet and deepened to 50 feet, allowing deep-draft commercial vessels to access the Port of Baltimore.
The full restoration of the Fort McHenry Federal Channel is slated to finish as soon as this weekend, which will mark a significant milestone in recovery efforts after the devastating bridge collapse on March 26.
Read the latest: Baltimore Bridge Collapse
The Houthi group in Yemen and the Islamic Resistance in Iraq claim to have conducted “joint military operations” targeting two ships in the port of Haifa, a claim that Israeli military sources dispute. This incident marks the first time the Houthis have claimed joint operations with other factions of Iran’s “Axis of Resistance”, raising concerns for ships in the Eastern Mediterranean. Despite the unverified nature of these claims and others by the group, the potential range of the Islamic Resistance’s weaponry suggests that such attacks could theoretically take place.
Russia’s Rosatom and China’s Hainan Yangpu NewNew Shipping Co. Ltd have partnered to establish a year-round container line via the Arctic’s Northern Sea Route (NSR). The venture will design and construct up to five Arctic-class vessels for year-round operation on the NSR, with a goal to transport up to 50 million tonnes of cargo annually. Despite challenges, the aim is to achieve year-round container transportation along the NSR between China and Russia’s northwestern ports within three years.
Transit cargo in the Arctic is expected to reach 3 million tons this year, a 50% increase from the previous year, mainly due to crude oil and LNG transport.
Read More:
The Greek Navy has resumed drills in the Laconian Gulf this week, effectively blocking Russia’s ability to transfer oil between tankers in the area. These exercises, which will continue until July 15, are part of Greece’s efforts to hamper Russia’s ability to export its oil. Despite this, Russia has found a new location near a Spanish enclave in North Africa for transferring cargoes.
 splash247.com BLUE Communications’ Emily Dove explains that for any newcomer Posidonia can be daunting and confusing, but there are tricks that make it easier. You’ve all heard the name, and most… |
 lloydslist.com Norwegian insurer DNK has provided fine detail of the attack, one of 21 ships struck by Houthis in the Red Sea since November. It warns that affected seafarers face severe… |
 highnorthnews.com The combination of seasonally ice-free waters and turmoil along traditional trade routes is diverting vessels into the Arctic. The first non-ice class Panamax containership has now received a permit for… |
 lloydslist.com The early headline theme from the shipping industry’s Posidonia biennial has been a warning that a shift away from conventional fuelled orders is not going to happen any time soon… |
 gcaptain.com (Bloomberg) — The US and its alliesare raising the stakes in their struggle to curb ship attacks by Houthi militants in the Red Sea by increasingly blocking their revenue sources,a… |
 gcaptain.com By Malte Humpert (gCaptain) – Russia continues to push ahead with plans to develop its Northern Sea Route into a year-round Arctic maritime shortcut. For the current year officials expect… |
As always, we’d love to hear your feedback. Email [email protected] with any questions, comments, tips, or concerns. Don’t forget to check out the Club Discord and gCaptain.com for the latest maritime news.
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