container market forecast 2017

LOOKING AHEAD: CONTAINER MARKET FORECAST 2017

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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

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

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HERE IS OUR FORECAST.

THERE ARE NOW THREE MAJOR SHIPPING ALLIANCES.

THE 2M PLUS H

MAERSK AND MSC CONTINUE TO DOMINATE, AND NOW THEY'VE GOT HYUNDAI MERCHANT MARINE'S STRONG ASIAN CONNECTION FEEDING THEIR MEGAS.

ON SUNDAY 11 DEC MAERSK AND HYUNDAI ANNOUNCED HYUNDAI WOULD BE ENTERING INTO AN EXCLUSIVE CARGO-SHARING AGREEMENT WITH THE 2M THAT INVOLVES SLOT PURCHASING.

ADDITIONALLY, MAERSK WILL ASSUME THE CHARTERS FOR FIVE HMM VESSELS, WHICH WILL BE A FINANCIAL RELIEF FOR HMM'S CREDITORS AND SHAREHOLDERS, WHILE MAERSK'S COO SOREN TOFT MENTIONED HOW SUNDAY'S AGREEMENT WILL ENHANCE THE 2M'S PRESENCE IN THE TRANS-PACIFIC TRADE.

FORECAST:

THE OCEAN ALLIANCE

CONSISTS OF CMA CGM – OOCL – CHINA COSCO – EVERGREEN. BOTH CHINA COSCO AND OOCL WILL BE RECEIVING 20,000+ TEU MEGA'S BEGINNING 2017, INCREASING THEIR MEGA FLEET.

HOWEVER WITH MR TRUMP THREATENING A TRADE WAR WITH CHINA, FILLING THOSE MEGAS MIGHT PROVE PROBLEMATIC AS THE EU'S CONTINUED ECONOMIC WEAKNESS PRECLUDE THEIR PICKING UP ADDITIONAL CHINESE EXPORTS.

WITH A CHANCE OF POLITICAL STORMS.

FORECAST:

THE ALLIANCEHapag-Lloyd

MOL K Line NYK

Yang Ming

MOL – K LINE – NYK AGREED TO MERGE; WHICH FORMED THE WORLD 6TH LARGEST SHIPPING COMPANY, WHILE BOTH HAPAG-LLOYD (DUE THEIR ACQUISITION OF UASC) AND MOL WILL RECEIVING ADDITIONAL 20,000+ TEU MEGA'S BEGINNING 2017, ADDING TO THEIR EXISTING MEGA-HEAVY FLEET.

IN A SIGN OF THE TIMES, THE ALLIANCE MEMBERS HAVE SET UP A 'CATASTROPHIC INSTRUMENT' BETWEEN THEMSELVES THAT WILL ALLOW THE MEMBERS TO SUCCESSFULLY DELIVER THE CARGO-CONTAINERS OF ANY ALLIANCE MEMBER THAT GOES BANKRUPT

BOTH YANG MING AND K LINE WERE MEMBERS OF THE CKHYE ALLIANCE WITH HANJIN, AND BOTH SUFFERED HUGE LOSS OF REPUTATION AS THEIR IRATE CLIENTS FOUND BOXES THEY'D BOOKED WITH K LINE AND YANG MING HAD BEEN PLACED ON HANJIN VESSELS AND WERE SEIZED, ARRESTED, OR OTHERWISE DELAYED

AS THEY COMPETE AGAINST THE OCEAN ALLIANCE FOR CARGO OUT OF ASIA.

FORECAST:

WITH A CHANCE OF POLITICAL STORMS.

2017 PROMISES TO BE AN INTERESTING YEAR. FROM BREXIT TO

THE INCOMING AMERICAN ADMINISTRATION, IT SEEMS THE

PREVAILING SENTIMENTS ARE NOT TOO PRO-TRADE. SHOULD THE

NATIVIST TREND CONTINUE, THE CURRENT PROBLEM OF TOO MANY

CONTAINERS VERSUS TOO- FEW CARGO WILL CONTINUE, AND THE

ALLIANCES 'CATASTROPHIC

CONTAINER SHIPPING: 2016 A YEAR-IN-REVIEW

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