DHL Global Forwarding, Freight OCEAN FREIGHT MARKET UPDATE August 2017
1 Contents
TOPIC OF THE MONTH China Cosco Shipping’s offer to acquire OOCL
HIGH LEVEL DEVELOPMENT
MARKET OUTLOOK Freight Rates and Volume Development
ECONOMIC OUTLOOK & DEMAND DEVELOPMENT
CAPACITY DEVELOPMENT
CARRIERS Mergers, Acquisitions and Alliances / Z-Score Update
REGULATIONS
DID YOU KNOW ? ? Congestion in European ports
DHL Global Forwarding | OFR Market Update | Aug 2017 2 Topic of the Month – China Cosco Shipping’s offer to acquire OOCL
A PROMISING OFFER THE OFFER COMPARING THE OFFER EXPECTED BENEFITS OF THE ACQUISITION
It values OOIL’s1) share at HKD 78.67 (USD 10.07). The offer values OOCL at USD 6.4bn, i.e. 1.4x China Cosco Shipping is taking over the 3% market It is 31% higher than its closing value on the day OOIL’s P/B ratio (=the net worth of all of OOCL’s share of OOIL on the global container trade. More the offer was issued. 79 assets minus their debt). In comparison, CMA-CGM specifically, it reinforces the acqueror’s position on 60 acquired NOL for 0.96x its P/B ratio. several trade routes. COSCO COSCO INCREMENTAL TRADE SHARE +OOCL SHARE Asia - Indian 140% 6% 11% +6% 96% subcontinent NE Asia - OFFER JULY 7TH VALUE 14% 27% +13% Oceania OOIL OOIL P/B NOL NOL P/B North Europe - FINANCING THE OFFER ACQUISITION RATIO ACQUISITION RATIO 2% 7% +5% North America China Cosco is offering to buy 90.1% of the shares, PRICE V. P/B PRICE V. P/B while Shanghai International Port Group would Although this final figure may be considered as high, Asia - Europe 11% 15% +4% own the remaining 9.9%. It is solely financed OOIL has historically been more profitable than through external debt. NOL – and freight earnings are higher today than Transpacific 11% 18% +7% SIPG they were at the time of NOL’s acquisition. The acquisition certainly asserts China Cosco’s Investors have had concerns that the deal may not leadership on the North East Asia - Oceania route, China Cosco receive regulators’ approval: shares were last taking up to control short of a 1/3 of the trade. Shipping traded at HK$73.10 as at 25 July, for a 7% discount to the COSCO/SIPG offer price. Source: Drewry, Alphaliner; 1) OOIL is the mother company of OOCL
DHL Global Forwarding | OFR Market Update | Aug 2017 3 High Level Market Development – Supply and Demand now Balancing
CAGR 2’500 ECONOMIC 2017F 2018F 2019F 2020F 2021F WORLD (2017-2021) OUTLOOK CONTAINER 2’000 INDEX (WCI)2) GDP GROWTH EURO 1.8% 1.8% 1.7% 1.7% 1.8% 1.7% 1’500 BY REGION MEA 2.6% 3.4% 3.7% 4.1% 4.0% 3.8% 1’000 500 AMER 2.1% 2.6% 2.5% 2.4% 2.4% 2.5% 0 ASPA 4.8% 4.6% 4.6% 4.5% 4.7% 4.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 15 16 17
1’200 DGF World 3.0% 3.1% 3.1% 3.1% 3.2% 3.1% SHANGHAI CONTAINERIZED 1’000 15 13,7% FREIGHT INDEX 800 SUPPLY VS (SCFI)3) 600 DEMAND 10 6,8% 8,0% 7,4% 400 GROWTH 6,1% 6,3% 5,5% 4,9% 200 9,7% 4,7% 4,5% 5 7,8% 0 5,1% 5,3% 4,2% 4,3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 3,1% 2,2% 3,4% 15 16 17 800 Demand -5 BUNKER PRICE -9,2% 600 Supply INDEX -10 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E 400 200 Source: 1)real GDP, Global Insight, Copyright © IHS, Q4 2016 . All rights reserved; 2)Drewry, in USD/40ft container, BIX 380 including BAF & THC both ends, 42 individual routes, excluding intra-Asia routes; 3) Shanghai Shipping Exchange, in 0 USD/20ft container and USD/40ft container for US routes, 15 routes from Shanghai, 4) Global Insight, Drewry, 5) Bunker BIX MGO Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Index, in USD/metric ton, Bunker Index MGO (BIX MGO) is the Average Global Bunker Price for all marine gasoil (MGO) port 15 16 17 prices published on the Bunker Index website, Bunker Index 380 CST (BIX 380) is the Average Global Bunker Price for all 380 centistoke (cSt) port prices published on the Bunker Index website
DHL Global Forwarding | OFR Market Update | Aug 2017 4 Market Outlook August 2017 – Major Trades
Strong volume and upcoming peak season in conjunction with capacity control by carriers leads to further increasing rates
EXPORT REGION IMPORT REGION CAPACITY RATE EXPORT REGION IMPORT REGION CAPACITY RATE AMNO = = AMNO = + EURO AMLA AMLA = + ASPA - =
ASPA = = EURO = +
MENAT = = MENAT = =
SSA = = SSA = +
AMLA = + ASPA = = AMNO ASPA ASPA = = AMNO = +
EURO = = AMLA = +
MENAT = = EURO + +
SSA = = MENAT = = OCEANIA = + Strong Moderate No Moderate Strong KEY ++ + = - - - Increase Increase Change Decline Decline
DHL Global Forwarding | OFR Market Update | Aug 2017 5 NEW: Market outlook on Market Outlook August 2017 – Ocean Freight Rates Major Trades smaller trades available in the back-up
OCEAN FREIGHT RATES OUTLOOK ASPA – EURO As we enter the traditional peak season in Q3, uptick in demand is expected and market rates are expected to increase further. General expectation for carriers to implement PSS/GRI EURO – ASPA Rates are stabilizing; pick-and-choose of carriers continues
ASPA – AMLA Space will continue to be tight as we enter into the traditional peak period. There are a few extra loaders to ECSA, but only to evacuate rolling cargoes, not for spot deals and special rates. We also hear of some carriers regrouping to Mexico & WCSA, with small capacity increase, yet to be confirmed. GRIs have been announced for 1st & 15th Aug ‘17. ASPA – AMNO The trade is in the peak and carriers indicating full ship situation. Spot rates expected to increase substantially with two planned increases on Aug 1st GRI & Aug 15th PSS. EURO – AMNO Well utilized vessels and lifting still strong in July. Short term rates will remain unchanged the rest of the quarter.
ASPA – MENAT Still facing high utilization into Middle East and Africa. Carriers have successfully implemented GRI in July, and remain firm on limiting low paying cargo on board. ASPA – ASPA Rates into IPBC region have stabilized. Though space continue to be tight, we are not seeing mid month rate increases as opposed to preceding months. Customers should continue to be encouraged to place bookings at least 2-3 weeks in advance to minimize probability of space rejections. Despite period being the traditional slack season for the trade to SPAC, some carriers are already experiencing space issues out of certain ports. Bookings should be made as early as possible to secure space. The peak season is expected to start in August.
DHL Global Forwarding | OFR Market Update | Aug 2017 6 Market Outlook – Volume Outlook in Main Trade Lanes, 2017 Estimate & Growth Forecast 2017/20 in %
2017e, in mTEU 2017e-2021e CAGR, in %
NORTH NORTH AMERICA AMERICA I n c l . 3.5 mTEU +1.2% 7.6 mTEU +0.7% I n c l . MEXICO F A R E A S T MEXICO
1.7 mTEU +0.9% 11.9 mTEU +1.6% 15.8 mTEU +0.9%
3.5 mTEU 2.0 mTEU +1.3% +0.7% 1.7 mTEU +1.3% EUROPE 7.0 mTEU +0.9% 7.0 mTEU +0.9% LATIN I n c l . M E D LATIN AMERICA 0.2 mTEU +3.0% 4.5 mTEU +2.8% AMERICA I N T R A A S I A excl. Oceania
35.1 mTEU +3.1%
GLOBAL CONTAINER TRADE 2017e 1 3 8 . 5 m T E U + 2 . 3 % C A G R 2017e- 2020e
Mid-term growth is mainly driven by Asian tradelanes.
Source: Drewry
DHL Global Forwarding | OFR Market Update | Aug 2017 7 Economic Outlook & Demand Development
A SHARP DECLINE IN ECONOMIC POLICY UNCERTAINTY
Latest elections pave the way towards business-friendly policies. Business and consumer confidence are high. EURO Brexit uncertainties makes UK business confidence slide Strong retail sales and foreign trade contribute to growth in the rest of the EU
Reduced uncertainty boosts consumer and business spendings. More uncertainty regarding 2018 growth, as it partly depends on the rollout of President Trump’s fiscal stimulus. US Fed and CA Bank of Canada started gradually raising interest rates. AM 2017 growth to average 2.3%, solidly pushed by consumer spendings. Decline in goods prices, whilst services’ are inflating
JP: Prime minister Abe’s scandals are unlikely to affect the political and economic outlook of the country. AP CN: Fast industrial sector growth, smaller contribution of consumption to the GDP growht lead to think the old Chinese model is returning
20 years after the Asian financial crisis, we see elevated debt burden in large emerging markets such as KR, MY, HU and BR, that may EMERGING undermine growth on the long term. MARKETS Gains are up in the commodities market BR’s PMI is negative, RU’s declined.
Source: Global Executive Summary, IHS Markit, July 2017
DHL Global Forwarding | OFR Market Update | Aug 2017 8 Capacity Development
CAPACITY DEVELOPMENT The idle fleet slightly fell, to the favor of an increased demand for smaller 1’000-3’000 TEU ships. As these ships are controled by NOOs, the NOO share of idle fleet dropped from 85 to 79%. Idle fleet in other segments remained flat. By assigning two 13’000+ TEU maxi-neo-panamax scale vessels to the Asia-USEC loop the CMA CGM T. ROOSEVELT and the CMA CGM J. ADAMS will become the largest container ships to transit through the Panama Canal. The G6 Alliance came to an end with the unloading in China of the ship that performed the last G6 sailing from Europe. The ship sailed at the end of March but had yet to complete its round trip Delivery of the first Maersk-H-Type MAERSK HONG KONG (15’282 TEU). The new H-type units have a more compact layout than other ships of comparable TEU capacity. The expanded Panama Canal has been able to recover most of the traffic share between Asia and the East Coast of North America. It had previously lost that share to the Suez Canal route. However, the race for market share seem to continue as the Suez Canal Authority has announced reduced tariffs for neo-panamax container ships from 1 Oct ’17 aiming to draw back the Suez Canal services. CMA CGM and Seatrade are to offer a joint weekly service out of their Europe-Pacific – USEC offerings as of October 2017. It will be the only direct container reefer service linking the South Pacific and New Zealand to Europe. CMA CGM’s joint Europe-Oceania service with Hapag-Lloyd is to shift its call at Port Kelang to Piraeus on the South East Asia – Europe leg. Hapag-Lloyd is to upsize its Europe-West Africa service through a vessel sharing agreement with Arkas Line. Arkas will also replace its ZIM-Cosco-Linea Messina West Med-WAF service by another agreement with Hapag-Lloyd. MSC is to grow its presence on the Far East – Africa and ISC – Far East trades, streamlining its existing Africa Express service. It involves, between other, a faster Far East – West Africa southbound connection that will reduce the number of wayport calls, shrinking the transit time by a week.
Source: Alphaliner
DHL Global Forwarding | OFR Market Update | Aug 2017 9
Source: Alphaliner, carriers Global Capacity Development all Trades
Highest scrapping level ever Average age Idling remains high 3.0% Returning Net capacity growth remains low capacity [TTEU] well absorbed Net capacity growth 2017E 27 28 28 1,480 7.7% 24 23 23 23 1,359 1,324 by 19 20 demand +239% 602 -1.8% 809 779 (May 2017) [TTEU] 654 595 2.7% 444 381 356 351 332 -3.3% 193 205 228 131 75
2009 2010 2011 2012 2013 2014 2015 2016 Apr 17 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Scheduled Post-ponements Scrapping Net capacity YTD 2009 2010 2011 2012 2013 2014 2015 2016 capacity growth growth
Very few deliveries expected post 2017 Orders placed by year [TEU m] Vessel deliveries by year [TEU m] 3.2
+33% 2.2 1.7 2.0 15,300 TEU 1.5 1.8 1.4 1.4 1.4 1.3 1.2 1.2 1.3 1.2 1.2 1.1 0.9
0.6 0.4 0.2 0.1 0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Apr17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E YTD Source: Alphaliner (May 2017), carrier views
DHL Global Forwarding | OFR Market Update | Aug 2017 10 Carriers
C A R R I E R S Yang Ming is to issue 500 million of new shares as a part of its recapitalisation plan, aiming at raising US$165M. The Taiwanese government is to provide the largest funds for this recapitalisation. The carrier is also introducing a new Korea-Taiwan-Hong Kong service, as it integrates TS Lines / KMTC existing joint ‘KTH’ offering.
ZIM’s initial public offering could well happen, as a consequence to Eli Glickmann being appointed CEO on 1st July. Weak market conditions and low earnings demined the previous attempts to list the company. In 2016, the attempt to split the company in two (Mediterranean operations/international operations) to sell the international busines even failed. If the current shareholders are now open to a sale, an IPO still remains a more realistic option. HMM lost contol of part of its operated capacity (479’000 down to 344’000 TEU) as a part of the 2M-HMM Strategic cooperation agreement signed with Maersk and MSC, who are now controling the units. Two ships have also been chartered out to ZIM, and one to Hamburg Süd. The shipping line is now focusing its growth on intra-Asia trade lanes.
Hapag-Lloyd is issuing new bonds, for EUR450m, in order to pay back other notes that are to mature in 2018 and 2019. The new bonds are less expensive than the two former issues, saving HL an annual EUR11m in interests. The issuance follows TUI AG completely exiting the carrier, as it disposed of its remaining 8.5M shares. CMA CGM has sold a 90% stake in the Global Gateway South (GGS) terminal in Los Angeles for USD875m the cash raised has allowed CMA CGM to pare down its debts. The Asset sale will however result in higher operating costs due to higher terminal handling fees at the GGS terminal. On 7 July ’17 the ONE (Ocean Network Express) has announced the establishment of the Holding Company in Japan and the Operating Company in Singapore. 3 days later the new CEO was appointed and the new Company Logo revealed.
Source: Alphaliner, carriers
DHL Global Forwarding | OFR Market Update | Aug 2017 11 Carrier Mergers, Acquisitions and Alliances
MERGERS AND AQUISITIONS
United Hyundai China OOCL CMA Hapag Hamburg Maersk Yang Hanjin Cosco Evergreen APL Arab Merchant MSC K Line MOL NYK Shipping TBC CGM Lloyd Süd Line Ming Shipping Shipping Marine
EVER HYUNDAI OCEAN NETWORK YANG CHINA COSCO SHIPPING CMA CGM HAPAG-LLOYD/UASC MERCHANT MAERSK LINE MSC Bankrupt GREEN MARINE EXPRESS (ONE) MING
ALLIANCES
FORMER ALLIANCES PRESENT ALLIANCES
CMA CGM MAERSK LINE OOCL MAERSK LINE OCEAN CMA CGM 2M OCEAN 3 CHINA SHIPPING 2M MSC MSC UNITED ARAB HMM (strategic ALLIANCE CHINA COSCO SHIPPING SHIPPING COMPANY cooperation) EVERGREEN
HAPAG-LLOYD COSCO HYUNDAI HAPAG-LLOYD/UASC MOL MERCHANT EVERGREEN K-LINE G6 CKYHE THE ALLIANCE ONE NYK MARINE HANJIN YANG MING YANG MING APL OOCL SHPPING Source: Carriers
DHL Global Forwarding | OFR Market Update | Aug 2017 12 Drewry’s Altman Z-Score as at June ‘17
Asset Book Value of Liabilities Liabilities Retainted Company Period Period End Unit Net Sales EBIT Asset Total Z-Score Current Equity Total Current Earnings AP Moller-Maersk 3 months 31-Mar-17 mn US$ 8,963 1,784 38,380 11,494 560 37,820 11,406 4,988 2.40 OOIL (parent of OOCL) Annual 31 Dec 16 mn US$ 5’298 -138 9,405 2’566 4’519 4’885 1’313 4’457 1.89 CMA CGM 3 months 31-Mar-17 mn US$ 4,620 -260 18,812 5,940 5,029 13,783 6,006 4,637 1.72 Wan Hai 3 months 31-Mar-17 mn NT$ 13,877 14 72,584 27,233 32,757 39,827 15,164 9,876 1.65 Hapag-Lloyd Holding 3 months 31-Mar-17 mn EUR 2,132 4 11,206 1,573 4,940 6,266 2,386 3,090 1.54 NYK Group Annual 31-Mar-17 bn Yen 1,924 -18 2,045 575 592 1,452 458 202 1.36 K Line Group Annual 31-Mar-17 bn Yen 1,030 -46 1,045 381 245 800 223 56 1.28 Pacific International Lines Annual 30-Dec-15 mn US$ 3’732 146 5’830 1’215 1’979 3’851 1’493 1’184 1.26 MOL Group Annual 31-Mar-17 bn Yen 1,504 3 2,218 481 684 1,534 383 355 1.23 China Cosco1) 3 months 31-Mar-17 mn RMB 20,101 566 120,574 46,136 38,531 82,044 35,473 8,576 1.22 Evergreen Marine Corp 3 months 31-Mar-17 mn NT$ 33,839 658 181,027 51,096 52,104 128,923 40,113 5,298 1.15 Yang Ming 3 months 31-Mar-17 mn NT$ 30,255 -1,241 131,765 22,782 16,615 115,150 40,935 -2,554 0.69 Zim 3 months 31-Mar-17 mn US$ 655 25 1,723 512 -110 1,833 562 -1,901 0.09 Hyundai Merchant Marine 3 months 31-Mar-17 bn Won 1,302 -566 3,830 1,666 749 3,081 1,091 -2,221 -1.08 • Weak operating performance of all carriers, together with the weak balance sheet position of some carriers, have resulted in generally poor Z-scores for all carriers involved in container shipping. None of the companies were able to reach the ‘safe zone’ Z-score of 2.8 or more.
• The Z-score is a statistical analysis to predict a company’s probability of failure in the next 2 years, using data from the company’s financial statement. • A Z-score ≥ 2.99 company is “safe”. • A Z-score between 1.8 and 2.99 exercise caution (“grey zone”). • A Z-score ≤ 1.8 higher risk of the company going bankrupt (“distress zone”). All indications based on these financial figures only.
Source: Drewry Sea & Air Shipper Insight, June 2017; 1) parent of Cosco Container Lines; Z-score is calculated as follows: T1 = (Current Assets - Current Liabilities) / Total Assets, T2 = Retained Earnings / Total Assets, T3 = Annualized EBIT / Total Assets, T4 = Book Value of Equity / Total Liabilities, T5 = Annualized Sales / Total Assets, Z-score bankruptcy rating = 1.2*T1 + 1.4*T2 + 3.3*T3 + 0.6*T4 + 1.0*T5
DHL Global Forwarding | OFR Market Update | Aug 2017 13 Regulations
Regulations IMO postpones the implementation for the Ballast Water Management Convention by two years to 8 Sep ’18.
To ensure quality and safety of products Eurasian customs union authorities implemented various technical regulations since 2011. In spring 2017 Russian Customs introduced physical inspection of the shipments to control compliance with EAC marking regime. Practically, every product having no EAC logo is being banned for importation resulting in additional storage \ re-export costs plus penalties. The EAC logo is to be affix on the product or on its packaging and on the documentation of the product itself. In any case, it must be visible to the customer and customs authorities at the moment of the purchase or importation when customs clearance of the product takes place. The US Federal Maritime Commission (FMC) has updated its list of "Controlled Carriers", that are majority owned or controlled by foreign governments. The FMC may prohibit the publication or use of a rate, charge, classification, rule or regulation, in order to ensure that controlled carriers do not engage in unreasonable below-market pricing practices that could disrupt trade or harm privately-owned shipping companies. Four carriers have been removed from the FMC list of state-controlled shipping lines as a result of the recent consolidation in the container shipping industry, namely: ► China Shipping Container Lines (CSCL) was integrated into COSCO Container Lines since March 2016 which then changed its name to COSCO SHIPPING Lines ► APL, previously controlled by the government of Singapore, has been wholly owned by CMA CGM since June 2016 and no state entity is currently a majority owner ► United Arab Shipping Company (UASC), previously controlled by the government of Qatar, was merged with Hapag-Lloyd in May 2017 and no state entity is currently a majority owner. ► Hainan P O Shipping (HPOS), controlled by Chinese state interests, ceased to operate in the US trades since July 2012. Only two carriers, COSCO Shipping and CNAN Nord, still remain on the Controlled Carrier list, as they are deemed to be controlled respectively by the Chinese and Algerian governments
Source: Alphaliner, DGF
DHL Global Forwarding | OFR Market Update | Aug 2017 14
Source: Alphaliner, carriers Did You Know ?
Congestion in Antwerp, Rotterdam & Bremerhaven leading to necessary surcharges The situation at many container terminals in Belgium, the Netherlands and Germany is critical, not only due to the high freight volumes but also due to the cyber- attack on the AP Moller-Maersk Group which created a backlog of volume to be handled. In particular, the terminals in Antwerp and Rotterdam are facing up to several days of delays. We also see delay issues in Bremerhaven and in the French ports.
Especially barge operators are struggling for the last few weeks as barge schedules have been impacted heavily due to very long waiting times in Antwerp and Rotterdam. The barge operators are chartering short-term available capacities in an effort to handle the domestic transport volumes efficiently, and congestion charges have been announced to balance off these efforts.
Due to these circumstances DHL Global Forwarding has to implement a temporary Barge Congestion Fee of EUR 19.50 / TEU for all barge transports to and from Antwerp and Rotterdam. This fee is applicable with immediate effect and for all inland areas connected to Antwerp and Rotterdam by multimodal barge service.
Furthermore, please be informed that the barge operators might have to choose offloading at different terminals than originally booked. This could lead to changes in handling, collection and other port related charges, which DHL Global Forwarding will pass on due to the fact that these recovery activities are beyond our control.
In Bremerhaven, the rail operation is affected with massive delays. Rail operators are passing on incurred additional costs arising from waiting times or additional handling requirements. As a result of this DHL Global Forwarding is forced to charge a temporary congestion fee of EUR 30,00 per container for all rail transports (including multimodal transports) into and out of Bremerhaven. This affects all countries connected to Bremerhaven by rail service.
Source: DGF
DHL Global Forwarding | OFR Market Update | Aug 2017 15 BACK - UP 16 Market Outlook August 2017 – Ocean Freight Rates Additional Trades (1/2)
Ocean Freight Rates Outlook AMNO – ASPA No increases have hit the market for the month of May. & SPAC Space continues to be a challenge specially for USEC ports. Pre-booking 2-4 weeks in advance is recommended. AMNO – EURO THE Alliance premium services with fast transit time remain full. Although, significant decrease of capacity in week 35.
EURO – AMLA Some upcoming development in the trade from Europe NWC to the East Coast of South America in terms of changes / reductions of services and capacity as of Q4. We expect rates to increase considerably. EURO – MENAT rates are stabilizing; pick-and-choose of carriers continues
EURO – SSA unchanged stable, well utilized vessels US – MENAT Space is still very tight from USEC & USGC Ports but better than May and June. Increasing rate trend is stopped for now. It appears that current rates will stay the same until end of September. Carriers continue to accept cargo from USA to Qatar mostly via Salalah. US – SSA Rates are stable and there is no increase on the horizon for now US – AMLA Rates are rising slowly as services become full on consistent basis to WCSA. RRI/GRI issued AUG 1 by several carriers. US to ECSA still lagging and rates are stable, forecasted to rise end of Q3 2017
AMLA Exports FCL market is facing extreme space issues from the ECSA. Rates have doubled and tripled in some cases on certain trade lanes. Situation could last through Dec ‘17. Bookings should be placed 4-6 weeks out to ensure space. Low Water conditions in Brazilian ports adding to delays and transit time disturbances. Space from ECSA to EURO from Aug onwards could be reduced by 1 string, more information to follow. WCSA beginning to experience the effects from reduced capacity from Asia and the increase in export demands.
DHL Global Forwarding | OFR Market Update | Aug 2017 17
Source:Source: DGF DGF team team Source: DGF team Market Outlook August 2017 – Ocean Freight Rates Additional Trades (2/2)
Ocean Freight Rates Outlook
EURO MED - AMNO Stable
EUR MED – AMLA Stable EURO MED – ASPA Slight rate reductions can occur depending on the provider
EURO MED – MENAT Slight rate reductions can occur depending on the provider EURO MED – SSA Stable
DHL Global Forwarding | OFR Market Update | Aug 2017 18