Best Q2 for container lines in two years as they eye a $10 billion profit swing

By Mike Wackett

Container lines have enjoyed their most profitable quarter in two years, according to a review of second-quarter carrier results by Drewry, and are looking at a $10 billion swing in profitability

With the exception of CMA CGM, which had not yet reported at the time of writing, all carriers which publish their financial results have now posted their interim first-half numbers. “Our preliminary operating margin estimate is that during second quarter of 2017 the industry enjoyed its most profitable quarter in two years, with margins hitting around 4 per cent,” said Drewry. “The trend line is undeniable, and keeps the industry on track to meet our forecast that it will make a collective operating profit in the region of $5 billion this year, after losing a similar amount in 2016.”

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CMA CGM ‘outperforms the industry’ as Q2 profits hit $227 million

By Mike Wackett

CMA CGM posted a net profit of $227 million for the second quarter of the year, turning around a loss of $127 million in the same period of 2016, with the assistance of a “significant” contribution from subsidiary APL. The French carrier was the last of the liner majors that publish results to report its Q2 performance and it was the third full quarter to include figures from Singapore-based APL.

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American Great Lakes Ports Association views pilotage costs as excessive, and hurting the regional economy

The American Great Lakes Ports Association (AGLPA) recently released a position paper on U.S. pilotage costs on the Great Lakes Seaway system.

The U.S. Coast Guard is responsible for regulatory oversight of all aspects of Great Lakes marine pilotage, including the setting of rates and charges. The system is structured similar to a regulated monopoly, in which three private companies provide mandatory pilotage services on the U.S. portions of the Great Lakes. Each year, the Coast Guard adjusts rates and charges for their services.

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K+N unveils ‘transformation’ plan for its ‘customers, technology and people’

By Gavin van Marle

Kuehne + Nagel has unveiled its new corporate plan to succeed the Focus + Excellence initiative that has run since 2014. At the company’s capital markets presentation in London, Chief Executive Detlef Trefzger said KN+ NextGen was effectively an umbrella term for a range of “transformative projects” to be launched in the coming months.

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Asia-Europe spot rates still under pressure as slack season looms

By Mike Wackett

The Shanghai Containerized Freight Index (SCFI) slumped a further 5 per cent in late September to a composite rate of $735.91 per TEU as spot rates surprisingly came under pressure ahead of the Chinese Golden Week holiday. The SCFI has been in steady decline in past weeks, falling some 16 per cent since the end of July, despite reports of healthy peak season export load factors from China, and has slumped below the $780 composite index figure of a year ago.

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