OCEAN FREIGHT RATE
Ready for a round of sustained re-rating? 7 logistic stocks with an upside potential of upto 48 %
Recently, JSW Infra announced its acquisition of Navkar Corp. On the face of it there is nothing special about it as merger and acquisition is a very normal activity which keeps happening. But the fact that it happened in sectors like logistics, where for large companies organic growth is the norm , involves a company which has a proven track of achieving a scale and the timing of its takeover. When one combines these three, this is probably indicating that the logistics sector which has faced many headwinds till a few years back, might be close to reaching a level where the bigger players are re-rated. A sector where headwinds are becoming lesser and tailwinds are getting stronger. Probably this would be a better way to take exposure to the growth of the Indian economy.
Container shortage is shipping’s Achilles’ heel
An initial surge in freight prices — prompted by ships taking the much longer route around the Cape of Good Hope — petered out in March, yet prices have now surged even higher.
Ships diverted from Red Sea send ripple effects across the globe
Supply chain managers paying for the services look to place order in advance as ships face extended journeys since they spend more time at anchor.
Trade strains boost cargo rates at pace recalling Covid ‘chaos’
Global goods trade is rebounding, boosting shipping rates and triggering memories of past disruptions for supply-chain managers.
French shipping giant expects slump in cargo rates
CMA CGM SA anticipates lower ocean freight rates as new vessel deliveries boost capacity impacted by ship diversions to avoid the Red Sea conflict.
Red Sea crisis reaches the skies: Indian businesses battle high air freight cost & cargo space shortage
The Houthi attacks on ships have forced many Indian businesses to turn to air cargo to move their goods. This rise in demand and limited capacity has made air freight more expensive, causing troubles on multiple fronts.
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US container shippers slow walk new contracts, eye easing of Red Sea rate hikes, analysts say
Iran-aligned Houthi missile and drone attacks on commercial ships in the Red Sea have forced most container carriers to reroute vessels around Africa and sent spot rates soaring.
Air freight rates rise amid Red Sea crisis and in run-up to Asia's Lunar New Year
The Baltic Air Freight Index, which shows general cargo weekly transactional rates across a number of routes, rose 6.4% in the week to Monday, price reporting agency TAC Index said, reversing declines since a mid-December seasonal peak.
Exports from Kolkata port may be hit due to soaring freight rate, rice ban, geopolitical turmoil
Exports from Kolkata port, a key gateway to eastern India, are facing challenges such as geopolitical tensions, a government-imposed rice export ban, and soaring ocean freight costs. Key export items like engineering goods, shrimp, and rice have been impacted. Freight charges, especially for West Coast destinations, have surged by 30-50% since December 2023 due to the conflict in the Red Sea, leading to rerouting of vessels.
Red Sea turmoil sends economic shockwaves far and wide
With sailors demanding double pay and insurance rates skyrocketing, shipping lines are steering clear of a waterway that normally carries 12% of the world’s seaborne trade.
Freighters seek air cargo back-up amid Red Sea shipping crisis
Air freight is costly compared to sea freight, and not competitive for bulky, low-margin items. Such constraints have limited air cargo to less than 1% of global trade by volume, according to airline industry association IATA. But since the attacks, which have forced shippers to take costlier routes that can add weeks to delivery times, air freight has become a more attractive option.
Significant jump in freight rates to hurt trade; India needs own shipping line, say exporters
The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants.
Charting the global economy: Ocean freight rates from Asia to Europe more than double in weeks
Ocean freight rates for goods from Asia to Europe have more than doubled over the past four weeks.
War, weather put ocean shippers on notice for rough seas in 2024
"This is seemingly the new normal - these waves of chaos that seem to rise and fall. Before you get back to some level of normalcy another event happens that sort of throws things out of whack," said Jay Foreman, CEO of Florida-based Basic Fun, who sends toys from factories in China to Europe and the United States.
Spot container shipping rates soar 173% on Red Sea threats
The cost for goods from Asia to the Mediterranean increased to $5,175, Freightos said, adding that some carriers have announced prices above $6,000 for this route starting in mid-January.
Freight market pendulum swings back toward normal
In the meantime, as per maritime research firm Drewry, global average ocean freight rates for a 40-foot container have jumped for five weeks.
Global freight shows signs of bottoming out
The global freight ecosystem has been hit by ballooned inventories along the supply chain as business and consumer spending has reverted from merchandise to services after the pandemic.
US-China tensions amplify global trade shifts, says shipping CEO
For much of the past year, the two countries have been steadily becoming less reliant on one another.
Shipping, allied industries battle choppy waters as margins sink
As things stand, freight rates in key transit routes have declined over the past 3-4 months to as much as just a quarter of what they averaged a couple of years ago due to lower consumption in western markets amid global economic headwinds. With that, containers have piled up at Indian ports, resulting in a reversal of the situation from just a year ago when shippers were running from pillar to post to get their hands on empty containers.
Maersk sees global trade contracting as much as 2.5% in 2023
The shipping market has normalised after two years of exceptionally high freight rates, when supply snarls and and a shortage of vessels allowed Maersk and its peers to charge higher prices for their services and pocket record profits.
Traders want GST exemption extended on export freight
The exemption from GST on export freight, introduced in 2018, ended on September 30 after being extended twice. Exporters now have to pay 18% GST on export ocean freight for which they can claim a refund. "The global trade is entering into a very difficult phase as countries are facing high inflation and impending recession affecting demand. The rate of growth in exports is also coming down as can be seen in export growth rate from April-August 2022," FIEO said.
Exporters seek GST extension on export ocean freight
In a letter to finance minister Nirmala Sitharaman on Sunday, the Federation of Indian Export Organisations (FIEO) said that overseas freights have increased 300-350% from pre-Covid level and refund of GST through Input Tax Credit comes with a lag of 2-3 months which affects cash flows.
Ship emission norms, war in Europe & demand slowdown cloud predictability of ocean freight rates: DB Schenker
As disruptions become more frequent and widespread, supply chains will have to be more flexible, agile, and have back up plans to cater to instability.
French container line CMA CGM expects shipping slowdown after another strong quarter
CMA CGM said economic pressures were starting to be felt in shipping, cooling intense demand for ocean transport since the coronavirus pandemic.
Gujarat High Court Orders IGST Refund on Ocean Freight Within 6 Weeks
Many importers had filed the refund claims after the Supreme Court order, but their claims are still stuck. "It is directed that if any IGST amount is collected, the same shall be refunded within six weeks along with statutory rate of interest," Justice NV Anjaria said, while admitting the petition by Louis Dreyfus Company India Pvt Ltd Vs Union of India.
Gujarat High Court directs CBIC to refund IGST on ocean freight within six weeks
Many importers had filed the refund claims after the Supreme Court order, but their claims are stuck. “It is directed that if any IGST amount is collected, the same shall be refunded within six weeks along with statutory rate of interest,” Justice NV Anjaria said, while admitting the petition by Louis Dreyfus Company India Pvt Ltd Vs Union of India.
Global port congestion, high shipping rates to last into 2023
The COVID-19 outbreak has lengthened ship delivery times since 2020, pushing up freight costs, while the Russia-Ukraine conflict and lockdowns in Shanghai have added to supply chain disruptions this year.
Sea freight rates down 15%; Container availability better
The Federation of Indian Export Organisations (FIEO) has pegged India's merchandise exports in the current fiscal year at $475 billion, 14% higher than the previous financial year but much less compared to growth seen in FY22 over FY21.
Freight-cost pain intensifies as pandemic rocks ocean shipping
India was also caught up in the freight-rate issue, but its export lobby group said that the container shortage has eased to some extent on the country’s west coast after the government intervened.
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