Transportation and logistics services

SeaLead-operated boxship dodges Houthi assault

22.07.2024

A container ship operated by SeaLead Shipping was attacked by Houthi missiles and drones on 20 July. The 2006-built, 5,059 TEU vessel Pumba was deployed to SeaLead's Five Seas Express service connecting China to the Red Sea and the Mediterranean.

Vessel-tracking data shows Pumba departed Saudi Arabia's port of Jeddah on 17 July and was likely heading towards Egypt's Port Said.

The United Kingdom Maritime Trade Operations said that missiles, an air drone and a sea drone assaulted the ship, which sustained mild damage. None of the crew were hurt.

Houthi spokesperson Yahya Saree said Pumba was targeted because it is an "American" ship.

The Houthis are now widening their target range. On 19 July, a Houthi drone hit an apartment block in Tel Aviv, Israel, killing a civilian. Yahya said the drone used is a novel type that can evade detection. However, the Israelis struck back and on 20 July, bombed the Yemeni port of Hodeidah.

S&P Global's data shows that the Liberia-flagged Pumba is registered to a Liberian entity, Pumbaa Shipping Inc. However, Container News understands that the ship is controlled by Singapore-based Draco Buren Shipping.

A SeaLead spokesperson told Container News: “Pumba is a chartered vessel and was subject to a minor attack while transiting Red Sea without causing any casualty or damages to the crew, the ship, and her cargo. Ship is safe and proceeding toward her destination. Both SeaLead and the owners have implemented strict precautions including armed guards.”

Pause in Transpacific rate surge

15.07.2024

Transpacific freight rates have corrected after rising for more than three months, as capacity additions have begun making an impact.

When the Shanghai Containerised Freight Index (SCFI) closed on 12 July, the Shanghai-US West Coast rate averaged US$7,645/FEU, down US$458 the previous week. The Shanghai-US East Coast rate decreased by a lower margin, to US$9,881/FEU, a dip of US$64 from the previous week.

Clarksons’ latest weekly report commented, “A mixed week for container freight markets, with the SCFI spot container freight rate index falling 2% week-on-week to 3,675 points, the first decline since late March, as additional capacity on the Transpacific allowed rates to soften there, though Far East-Europe rates saw further modest gains and the overall index remains more than double late March levels.”

Shanghai-North Europe rates went up by US$194 to US$5,051/TEU.

The surge in freight rates to levels not seen since the Covid-19 pandemic convinced operators to divert vessels to the Transpacific.

On 3 July, ZIM Line commenced its Central China Xpress (ZX2) service, connecting Shanghai, Ningbo and Los Angeles, assigning five 4,200 TEU vessels, after operating two extra loaders on the route in June.

ZIM will also tweak its eCommerce Xpress (ZEX) service, adding a call at Vietnam’s Cai Mep port from 16 July, its new rotation being Cai Mep-Yantian-Los Angeles. ZEX will have a 42-day turnaround and will be served by six ships of 4,200-5,500 TEU. The service previously offered calls at Cai Lan in North Vietnam, which will be dropped.

Additionally, MSC is relaunching its Mustang service, which was suspended in 2022 when the pandemic-induced boom faded. The Swiss-Italian operator has assigned six ships of 8,000 to 19,000 TEU to the service, which had to be postponed from 8 July to 18 July as the first vessel in the schedule, MSC Eloane, was held up by congestion in Singapore port. The Mustang service will connect Yantian, Ningbo and Shanghai to Long Beach.

Strike averted at DP World’s port facilities in Western Canada

09.07.2024

A strike by ship and dock foremen at DP World’s port facilities in Western Canada has been prevented from occurring this week.

On Sunday, July 7, the Canada Industrial Relations Board (CIRB) determined that the International Longshore & Warehouse Union Canada (ILWU) Local 514 cannot proceed with plans to strike on July 8 at about 4:30 p.m. Pacific Time. Union members had indicated that they would be going on strike at DP World’s port facilities in Western Canada, according to the British Columbia Maritime Employers Association (BCMEA).

CIRB gave this ruling after BCMEA pressed the federal board to intervene. Because of the strike notice, BCMEA said on July 6 that it was planning to conduct an industry-wide lockout on July 9. That lockout would have shut down all cargo operations of BCMEA member companies across British Columbia, although it would not have affected cruise operations and longshoring operations on grain vessels, BCMEA said. However, since the strike will not occur, BCMEA has withdrawn its lockout notice.

“The CIRB found ILWU Local 514’s Nanaimo dispatch proposal was illegal because it consists of a receding horizon in bargaining and amounts to a failure to bargain in good faith. Therefore, the Board directed the union to withdraw its proposal,” BCMEA said in a July 7 update.

“The BCMEA is disappointed that these steps needed to be taken to ensure the stability of Canada’s West Coast ports but is pleased with the outcomes of the CIRB’s decision,” the association continued. The group also said the CIRB hearing to address the union’s outstanding DP World Canada manning proposal is scheduled to continue on Aug. 6-9.

Negotiations between BCMEA and ILWU Local 514 began in November 2022, according to BCMEA. The labor agreement between BCMEA and ILWU Local 514 expired on March 31, 2023. BCMEA had also been negotiating a separate agreement with ILWU Longshore Locals, but the parties reached an agreement on Aug. 4, 2023.