Maersk launches differentiated products for long-term contracts
Denmark-based container carrier A.P.Moller-Maersk is offering six standard products for the 2022 tender season: Flat, Seasonal Preset, Seasonal Sync ( traditional ocean contract products) and Block Space, Flexible, and Unlimited ( partnership products).
Flat contract reserves space for cargo following a set
schedule i.e a set number of containers per lane, every week at competitive
rates. "This contract is available for both dry and refrigerated cargo
transport needs." an official statement said.
Seasonal sync contract is ideal for production-driven supply
chains that have a need to synchronise allocation with production fluctuations.
Seasonal reset contracts are designed for import-driven supply chains that have
to deal with strong seasonalities.
"We see a significant increase, for example, in some of
our smaller customers choosing to customise solutions by combining
Less-than-Container Load (LCL) shipments together with Full Container Load
(FCL) ones in our contract as it provides flexibility and ease of business for
them," said Johan Sigsgaard, Head of Ocean Products, Maersk.
Lars Jansen, a leading expert in the container shipping
industry, said in his LinkedIn post: "Conceptually nothing here should be
surprising and, quite frankly, the industry ought to be moving in a similar
direction. What I am seeing here is essentially a drive towards more
predictable contractual terms which some shippers might see as an advantage and
others as a loss of flexibility.
"In terms of timing, pushing through changes from a
position of strength (which the carriers most certainly have now) will
inherently lead to a higher success ratio than under more normal market
circumstances."
Jensen added that the crux will come once the market
normalises in the pre-pandemic period "and we will see how much of the
change can be sustained under more normal circumstances."
An official had earlier told ITLN that 60 percent of new
contracts are long-term deals unlike the earlier short-term contracts.
Maersk had reported a 68 percent increase in Q3 revenue to
$16.6 billion while EBIT was up almost five times to $ 5.9 billion on high
freight rates in an exceptional market situation. Maersk has maintained its
2021 profit outlook at the earlier estimate of $18 billion-$19 billion.
Container prices decline but freight rates steady/inching up
Container prices declined across major ports in the U.S,
China and Europe from August to November.
“Over the last two quarters, the industry has faced
skyrocketing container prices," said Container xChange Co-founder Johannes
Schlingmeier. "These increases first leveled off and have now started
gradually decreasing. It seems, what we’re seeing now, is a turning point.”
The Shanghai port saw the biggest drop - 19 percent - in
average prices between September and November. At the port of Ningbo, 20DC or
40HC containers are cheaper by around $300 in November compared to September.
Ocean rates across all major lanes remained level but were
still extremely elevated this week with peak season behind us and Lunar New
Year two months ahead, Freightos said in an update. "Prices remain high
due to sustained elevated demand – especially from Asia to the US – and the
resulting port congestion."
Though the number of ships anchored off shore (LA/LB) has
declined, the total number of vessels either waiting further away or en route
has not fallen significantly, showing that the underlying demand remains in
place, the update added.
"High rates and congestion are ultimately results of
the consumer spending shift from services to goods that began early in the
pandemic. So in terms of the other major development this week – the spread of
the omicron variant – the new COVID strain has the potential to push the shift
back to spending on services even further away."
Comments
Post a Comment