Weekly Supply Chain Update: 14

Global Schedule Reliability Declines in July 2024: Maersk Leads, Wan Hai Lags

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Sea-Intelligence's latest Global Liner Performance (GLP) report (issue 156) reveals that global schedule reliability in July 2024 dropped by 2.1 percentage points month-over-month (M/M) to 52.1%, continuing the year’s trend of fluctuating between 50% and 55%. This represents a significant year-over-year (Y/Y) decline of 12.0 percentage points. The average delay for late vessel arrivals slightly improved, decreasing by 0.02 days M/M to 5.24 days, though this figure is still higher than the previous year by 0.63 days. Among the top 13 carriers, Maersk was the most reliable with a schedule reliability of 54.6%, while Wan Hai was the least reliable at 41.3%. Only ZIM and MSC showed M/M improvements, with Wan Hai experiencing the largest decline of 11.6 percentage points. None of the carriers showed a Y/Y improvement, with Wan Hai recording the largest Y/Y decline of -27.4 percentage points.

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Post-Peak Season Shipping Rates Decline on Key Trade Routes from Shanghai

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The latest spot rate data from Drewry shows a continued decline in shipping rates as the peak season has passed. Rates on the four main trade routes from Shanghai to Rotterdam, Genoa, Los Angeles, and New York have dropped between $1,000 to $1,200 per FFE since their mid-July peak. Although the weekly rate declines have varied, the overall trend suggests a steady reduction in rates, without indicating a sudden collapse.

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ONE Launches New Weekly Asia-Middle East Shipping Services

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Ocean Network Express (ONE) announced the launch of its new weekly services—“Gulf Asia Liner Express (GLX),” “Central China Middle East Express (CMX),” and “South China Middle East Express (SMX)”—which will connect East Asia with the Middle East. These new services will enhance coverage, boost connectivity, and increase frequency to Asia for this expanding trade route, complementing ONE’s existing Asia Gulf Express Services. The New Service Details will be as follows: Gulf Asia Liner Express (GLX) The Port Rotation will be Busan, South Korea > Qingdao, China > Xiamen, China > Da Chan Bay, China > Port Kelang, Malaysia > Jebel Ali, United Arab Emirates > Dammam, Saudi Arabia > Bahrain, Bahrain > Busan, South Korea. The turnaround time is set at 49 days, with an estimated time of arrival in Busan on 29 October 2024.

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COSCO Shipping Orders $2.15 Billion Methanol-Powered Fleet for Asia-Latin America Routes

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COSCO Shipping, the world's fourth-largest container line, has placed an order for twelve 14,000 TEU methanol dual-fuel ships at its sister company, COSCO Shipping Heavy Industry Yangzhou in Jiangsu province. The total cost of the order is $2.15 billion. These vessels, which will include significant reefer capacity, are intended for deployment on Asia-Latin America trade routes. COSCO, also the world's largest shipowner, is heavily invested in methanol as a future maritime fuel and is collaborating with other state-run entities to establish a green methanol industrial chain for production, transportation, refueling, and certification.

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Chinese Ports See Strong Growth in Container Throughput for January-July 2024

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From January to July, Chinese ports managed a total of 190.9 million TEUs, representing an 8.3% increase year-on-year. In July alone, Shanghai Port achieved a container throughput of 4.84 million TEUs, a 15.1% rise compared to the same month last year, while Ningbo Zhoushan Port processed 3.35 million TEUs, reflecting a 5.3% increase. Over the first seven months of the year, both Shanghai and Ningbo Zhoushan ports have seen significant growth in container volumes, with increases of 8.6% and 7.9%, respectively.