Table of contents
Topic of the week:
There is a lot of talk around newbuild vessels at the moment, from demand for smaller ships, to automated vessels and concepts for what future newbuilds may look like. In this week’s update we will explore the latest developments and what we could expect to see in the future.
ULCVs (ultra large container vessels) are being temporarily stationed along the Chinese coast as there is growing resistance to the implementation of larger vessels. This stems from carriers struggling to fill the tonnage of these larger 24,000 teu ships, meaning that smaller vessels have become more popular within the charter market in order to fulfill inter-regional trades. However, the industry is insistent on ordering the construction of larger vessels and there is another total 150,000 teu set for this month alone, made up of vessels primarily over 10,000 teu.
Other than the demand for smaller cargo ships, other trends are being seen within the industry as a lot of manufacturer look to the future of sustainable fuel options and even completely electric vessels. Naval Inland Navigation have produced a fleet of 10 hybrid and electric drone ships that operate unmanned. Rolls Royce have been developing crewless cargo ships that utilise sensors and AI to be fully autonomous. The Yara Birkeland, the world’s first fully electric cargo ship made its maiden voyage in February in Norway. Methanol is another fuel source that has undergone a lot of research and development recently, with shipping giant, Maersk, announcing the launch of the world’s first methanol powered vessel earlier this month. The Laura Maersk will operate as of next month and “represents an industrial revolution, but of a green character,” says Robert Uggla, Maersk group chairman.
So what does the future look like for newbuild vessels? Several significant developments are nearly certain, representing trends that are already gaining momentum. First, we anticipate the resurgence of wind-assisted propulsion as a means to enhance energy efficiency and meet stricter future CII scheme requirements. This trend will be more applicable to specific vessel categories, like tankers, and specific trading routes. Secondly, a new approach geared towards technological versatility and future proofing may involve the incorporation of multi-fuel engines, reinforcement of decks to accommodate fuel storage, implementation of fully automated or remotely operated engine rooms, and other innovations. The adoption of energy efficient and waste reducing fuel options is certain with batteries, hybrid generators and even ammonia being explored as possible alternatives.
Sea:
- Over the last two weeks China/East Asia to North America West Coast spot rates have fallen by 3.16% from $1,927 /FEU to $1,866 /FEU according to Freightos data.
- China/East Asia to North America East Coast spot rates have fallen slightly over the last two weeks, decreasing by 6.3% to $2,884/FEU.
- Global container spot prices have fluctuated over the last two weeks, and are now sitting at $1,389/FEU, a 9% decrease over the last two weeks, and a 67.4% decrease from spot rates in September 2022 according to the Freightos Baltic Index (FBX)
- Industry giants, Maersk and CMA CGM have come together to develop methods of decarbonization and green methanol vessels. The companies aim analyse green fuel sources such as methanol and ammonia and look to set a framework for mass production, aiding in the transition to greener alternatives within the shipping industry.
Air:
- Global Air Freight spot rates currently sit at $2.41, a slight decrease as rates continue to fluctuate according to the Freightos Air Freight Index (FAX)
- Europe to Northern America spot rates currently sit at $1.66 (100-3000kg), says FAX, decreasing by 1.7%
- Europe to Central Asia spot rates have risen by 2.6% currently sitting at $2.33 (100-3000kg), says FAX
- Europe to Asia, Greater China spot rates currently sit at $1.43 (100-3000kg), says FAX, a 2% decrease
- Buffalo Airways have now launched the first freighter route between Edmonton and Yellowknife, Canada. The new dedicated service will operate from Monday to Friday using a custom Boeing 737-300SF to carry pharmaceutical, healthcare, food and beverage and other time sensitive goods.
That’s all for this week’s update…
Check out our other insights and articles for more in depth industry news and trending topics, or get in contact to discuss some of our best in class freight forwarding services!
