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IS THE OCEAN FREIGHT MARKET A BUYER'S OR SELLER'S MARKET?
JOIN THE CONVERSATION ON TWITTER
@XENETA_AS
ABOUTXENETA
At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.
With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.
WE ARE TRANSFORMING GLOBAL LOGISTICS
ARE YOU PAYING THE RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS POTENTIAL IN REAL
TIME.
CONTACT US.
2016 HAS BEEN A YEAR OF TURMOIL AND UPHEAVAL WITHIN THE OCEAN FREIGHT MARKET – THE FORMATION OF NEW ALLIANCES, MERGERS AND ACQUISITIONS AND A BANKRUPTCY OF A MAJOR OCEAN LINER.
WITH THESE CHANGES IN MIND, WE ASKED THE OPINION OF SOME
INDUSTRY PLAYERS IF THE OCEAN FREIGHT MARKET IS BECOMING A SELLER'S OR BUYER'S MARKET.
NOTHING WAS CONCLUSIVE, BUT IT FOR SURE MADE FOR SOME INTERESTING DISCUSSIONS.
A BUYER'S MARKET WITH UNCERTAINTY
ALTHOUGH THE MARKET IS IN RECOVERY WITH SPOT MARKET RATES TRENDING UPWARDS, IT SEEMS THE INDUSTRY AS A WHOLE IS NOT YET CONVINCED THAT CARRIERS ARE IN
FOR A LONG-TERM WIN. A GOOD NUMBER OF OUR CONVERSATIONS
REVOLVED AROUND THE OPINION THAT THE MARKET IS STILL A BUYER'S
MARKET AND CARRIERS CAN'T YET CALL VICTORY.
THE OVERALL THE MARKET HAS BEEN TRENDING UP FOR A FEW MONTHS.
WITH NOVEMBER'S GRIS HOLDING STEADY IN ASIA-EUROPE SPOT MARKET AND AN INCREASE REPORTED LAST WEEK, AT THE MOMENT, WE CAN'T DENY THAT CARRIERS ARE DOING A BIT BETTER THAN IN Q2, FOR EXAMPLE.
WHAT MAY BE MORE SURPRISING OR PERHAPS NOT SURPRISING AT ALL IS THE FACT THAT MOST FOLKS WE SPOKE TO INDICATED THEY WERE NOT SURE. 2016 HAS BEEN AN UNPRECEDENTED YEAR FOR THE OCEAN FREIGHT MARKET.
MORE BIG BOYS TAKING SAIL IN 2017
WE SHOULDN'T FORGET THAT NEXT YEAR WE WILL SEE
SOME LARGE SHIPPERS TAKING SAIL
WHICH IS ANTICIPATED TO ADD
MORE CAPACITY. MAERSK HAS 11 NEW
TRIPLE E'S (ASIA -EUROPE) COMING
INTO PLAY FROM APRIL 2017 PART OF
THEIR ORGANIC GROWTH STRATEGY.
THE ACQUISITIONS AND BANKRUPTICES THIS YEAR HAVEN'T DONE TOO MUCH TO ADDRESS THE OVERSUPPLY ISSUE.
[HE IS CONCERNED] ABOUT HOW LONG THE MOMENTUM WOULD BE
MAINTAINED GIVEN THE FUNDAMENTAL OVERSUPPLY OF SPACE, WHICH IS
EXPECTED TO BE EXACERBATED BY NEW ULTRA-LARGE CONTAINER VESSEL (ULCV)
DELIVERIES NEXT YEAR. ALL THE MERGERS AND ACQUISITIONS THIS YEAR,
AND EVEN THE HANJIN BANKRUPTCY, HAVEN’T DONE ANYTHING TO ADDRESS
THE OVERSUPPLY SIDE OF THE INDUSTRY
- PATRIK BERGLUND (CEO)
ALLIANCES, M&AS AND BANKRUPTCIES OH MY
EARLIER THIS YEAR, THE NUMBER OF ALLIANCES
WAS REDUCED TO THREE – THE ALLIANCE, 2M AND
THE OCEAN ALLIANCE. COMBINED, THESE
ALLIANCES WILL HAVE A COMMANDING SHARE
OF MAJOR TRADE LANES.FOR EXAMPLE, FOR THE
LARGEST LANE, ASIA-EUROPE, THE THREE
ALLIANCES COMBINED, IS ESTIMATED TO HAVE A
99% SHARE OF THE CAPACITY.
THE UNCERTAINTY OF WHAT THIS MAY BRING TO SHIPPERS IN APRIL 2017 WHEN THE ALLIANCES GOES INTO EFFECT IS APPARENT IN THE LARGE PERCENTAGE OF RESPONDENTS THAT NOTED THEY WERE NOT SURE WHAT KIND OF MARKET OCEAN FREIGHT IS MOVING TOWARDS.
IN ADDITION, WITH MAERSK ACQUIRING HAMBURG SÜD, THERE ARE NOW 11 GLOBAL CARRIERS, DOWN FROM 20 AT THE START OF THE DECADE.
ACCORDING TO ONLINE PUBLICATION, SPLASH 24/7, ISRAEL’S ZIM, IS LOOKING TO REDUCE ITS GLOBAL PRESENCE AND FOCUS MORE ON REGIONAL TRANSPORT WHILE YANG MING AND OOCL ARE DENYING THEY ARE LOOKING AT SALE OPPORTUNITIES. SPLASH 24/7 SPECULATES THAT FOR THE RIGHT PRICE SENIOR MANAGEMENT AT BOTH LINES WOULD SELL OR POSSIBLY MERGE TOGETHER.
JOIN PATRIK BERGLUND (CEO) AND THOMAS SØRBØ (COO) ON DECEMBER 15TH AS WE TAKE A
LOOK BACK AT 2016
WATCHWEBINAR
[HE IS CONCERNED] ABOUT HOW LONG THE MOMENTUM WOULD BE
MAINTAINED GIVEN THE FUNDAMENTAL OVERSUPPLY OF SPACE, WHICH IS
EXPECTED TO BE EXACERBATED BY NEW ULTRA-LARGE CONTAINER VESSEL (ULCV)
DELIVERIES NEXT YEAR. ALL THE MERGERS AND ACQUISITIONS THIS YEAR,
AND EVEN THE HANJIN BANKRUPTCY, HAVEN’T DONE ANYTHING TO ADDRESS
THE OVERSUPPLY SIDE OF THE INDUSTRY
- PATRIK BERGLUND (CEO)
LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND
INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS
BUSINESS:
REQUEST DEMO NOW