dhl global forwarding, freight ocean freight market … · 7 economic outlook & demand...

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OCEAN FREIGHT MARKET UPDATE

DHL Global Forwarding, Freight

October 2018

PUBLIC

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Contents

TOPIC OF THE MONTH

Impact of Trade Tariffs

HIGH LEVEL DEVELOPMENT

MARKET OUTLOOK

Freight Rates and Volume Development

ECONOMIC OUTLOOK & DEMAND DEVELOPMENT

CAPACITY DEVELOPMENT

CARRIERS

REGULATIONS

? DID YOU KNOW?

IMO 2020 Global Sulphur Limit Compliant Containership Fleet

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DHL Global Forwarding | OFR Market Update | Oct 2018

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Tariffs on steel &

aluminum products

0.6M (0.4% of global sea

trade) TEU container trade

Tariffs on US

imports

0.1M (0.1%) TEU container trade

New US/EU

Agreement

Cooperation

towards zero tariffs

Tariffs on China

imports


Apart from escalation magnitude, new trade barriers lead to workarounds among customers that have alternative choices

Topic of the Month

Impact of Trade Tariffs

Source: DPDHL Corporate Development, press articles, Seabury Consulting

DHL Global Forwarding | OFR Market Update | Oct2018

• Forward extra cost to customers or accept lower profit at least for the

short term

• Re-source import supplies from alternative country and re-route exports

(e.g. Chinese honey industry exporting into US via 3rd country)

• Re-locate production to other countries

• Stop business due to cost & margin pressure

How customers react

• CN’s announcement to take retaliatory tariff action against $60 billion of

US goods, sharply escalating trade war as Trump administration considers

imposing duties on virtually all CN imports (worth add. ~USD267)

• Apart from putting up barriers, CN is aiming to simplify clearance

processes in general according to last week`s State Council meeting

• As CN cannot match US tariffs like-for-like, “qualitative measures”

against US firms operating in China might to start kicking in

What comes next?

Effective as of: March June

Tariffs on China

imports

0.5M (0.3%)

TEU container trade

Tariffs on US

imports


July 6 July 25 August/

September

Current NAFTA discussions

Agreement between US & MX

reached, discussions with CA

continue. Decision likely end Sep

September 24

Tariffs on US

imports

Further tariffs for goods

worth $60bn as counter

measure to latest US tariffs

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High Level Market Development – Supply and Demand

ECONOMIC OUTLOOK GDP GROWTH BY REGION1)


2018F 2019F 2020F 2021F 2022F CAGR

(2019-22)

EURO 2.2% 2.0% 1.9% 1.8% 1.8% 1.8%

MEA 3.5% 3.8% 3.9% 3.6% 3.5% 3.7%

AMER 2.7% 2.8% 2.2% 1.9% 1.9% 2.0%

ASPA 5.0% 4.9% 4.7% 4.8% 4.8% 4.7%

DGF World 3.4% 3.3% 3.1% 3.0% 3.0% 3.0%

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Supply Growth %

Demand Growth

%

0%1%2%3%4%5%6%7%8%9%

2015 2016 2017 2018F 2019F 2020F 2021F

SUPPLY/DEMAND GROWTH (ANNUALIZED), IN % 2)

1) real GDP, Global Insight, Copyright © IHS, Q2 2018 . All rights reserved 2) Demand growth = Port-to-Port Container Traffic growth. Supply growth = Fleet Growth. Source: Drewry Maritime Research. 3) Shanghai Shipping Exchange, in USD/20ft container & USD/40ft ctnr for US routes, 15 routes from

Shanghai. 4) Global Insight, Drewry, 5) Bunker Index, in USD/metric ton, Bunker Index MGO (BIX MGO) = avg. Global Bunker Price for marine gasoil (MGO) port prices; (BIX 380= avg. Global Bunker Price for all 380 centistoke (cSt) port prices; both index published on the Bunker Index website., 6) DHL

Global Trade Barometer Mar18, index value represents weighted average of current growth and upcoming two months of trade, a value at 50 is considered neutral, expanding above 50, and shrinking below 50.

BUNKER PRICE INDEX 5) WORLD CONTAINER INDEX (WCI)3) SHANGHAI CONTAINERIZED FREIGHT INDEX (SCFI)4)

DHL TRADE BAROMETER6)

30

40

50

60

70

80

Q1'16

Q2 Q3 Q4 Q1'17

Q2 Q3 Q4 Q1'18

Q2

Ocean

Global

Q2 Q1

’17

3,000

2,500

2,000

1,500

1,000

500

0

Q3 Q2 Q1

’18

Q4 Q3

1,200

1,000

800

600

400

200

0

Q3 Q2 Q1

’18

Q4 Q3 Q2 Q1

’17

1,000

800

600

400

200

0

Q3 Q2 Q1

’18

Q4 Q3 Q2 Q1

’17

BIX MGO

BIX 380

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Market Outlook October 2018 – Major Trades

Multiple blank sailings announced for 1st half October will impact space situation

KEY Strong

Increase ++

Moderate

Increase +

No

Change =

Moderate

Decline -

Strong

Decline - -

EXPORT REGION IMPORT REGION CAPACITY RATE

EURO AMNO = +

AMLA = +

ASPA = --

MENAT = --

SSA = =

AMNO AMLA = +

ASPA - =

EURO + =

MENAT = =

SSA = +

EXPORT REGION IMPORT REGION CAPACITY RATE

AMLA AMNO = +

ASPA + +

EURO + +

MENAT = =

SSA -- ++

ASPA ASPA - =

AMNO - =

AMLA = +

EURO - =

MENAT = =

OCEANIA = +


Source: DGF

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Market Outlook October 2018 – Ocean Freight Rates Major Trades Market outlook on smaller trades available in the back-up

O C E A N F R E I G H T R A T E S O U T L O O K

ASPA – EURO Carriers have started an intensive blank sailing program to stabilize the market in October. The typhoon season is still affecting the

productivity in the Asian ports, especially at Shanghai/Ningbo.

EURO – ASPA & MEA Market is further softening overall

ASPA – AMLA Rate remain strong to Mexico and WCSA, while ECSA rates have declined. Space is expected to be tight for Mexico & WCSA until after

China Golden Week. Multiple blanks sailing are expected during the same period as well.

ASPA – AMNO Blank sailings across all alliances from wk 40-42. This is expected to result in a tight space situation through 1st half of Oct. Slight

reductions on spot rates in October compared to September.

EURO – AMNO Ocean rates are strong and still increasing; inland carriages in US remain problematic

ASPA – MENAT

Rates remain stable. No huge increase on FAK. Tight vessel utilization is expected after Golden Week. Congestion is reported for Kuwait

Port due to crane problem. Some carriers have implemented Congestion Surcharge of USD50 per TEU into Israel with effect 15 Oct

2018.

ASPA – ASPA Multiple blank sailings have been planned with the China Golden Week. Delays continue at both Manila (N) and (S) port due to the

recent bad weather.

AMNO – EURO Some carriers have announced a rate increase for October to Europe ( Hapag, EISU, YML, Cosco ) and CMA CGM to the MED.


Source: DGF

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Economic Outlook & Demand Development

Risks from protectionism and emerging-market stress

Source: IHS Markit Global Executive Summary, IHS Purchasing Manager Index Manufacturing, a PMI at 50 is considered neutral, expanding above 50, and business shrinking below 50.


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EURO

EURO is experiencing an underlying slowdown in ’18 and cools down to 2.0% growth. Despite higher energy prices & base effects, inflation

outlook is almost unchanged to previous forecast, indicating that rising input costs are not being passed on to consumer prices, suggesting a

squeeze on profit margin.

AMNO

Aided by fiscal stimulus of tax cuts & spending increases, supportive financial conditions, strength in employment, income, & wealth & elevated

consumer & business sentiment, real GDP growth in the US is expected to remain near 3.0% average in H2 ’18. By this measure, GDP has

surpassed potential. With interest rates & inflation rising, & support to growth from fiscal stimulus peaking and then diminishing early next year,

HIS Market expect real GDP growth to slow form 2.9% this year to 2.7% next year and 2.0% in 2020.

ASPA

Outlook on solid feet for 2018 and remains unchanged at 5.0%. Impact of the trade tensions with the US on CN has been limited so far. Exports

forecast downgrade was due to corrections in JP’s & KR’s outlook. Downward market pressure has weakened CN’s currency, but CN

government will likely prevent any sharp or persistent renminbi depreciation.

EMERGING

MARKETS

Emerging market equities are in bear territory. ZA is in a recession & TR is headed there. AR has been forced to raise interest rates to 60%

(more than double the rate at the beginning of the year) to support its crashing currency.

DEMAND

DEVELOPMENT

Export growth forecast for 2018 has decreased, driven by downward revision in major economies, but still remains above the average range of

3.3% of the past 10 years. Expansion pace of Global Manufacturing PMI has been declining since January.

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Capacity Development 1/2

C A P A C I T Y D E V E L O P M E N T

After over six years of legal proceedings and commitment to additional environmental mitigation measures, the Senate of the city of Hamburg (Germany’s largest

port) finally obtained the final plan approval of the long-delayed Elbe River deepening project. The tender of dredging works is prepared and it is planned to start

works in 2019. Overall the project is designed to increase the permissible vessel draft in Hamburg by one meter. Currently, large-scale container services from

the Far East can not have Hamburg as a first port of call without discharging some cargo at another port first. In addition to increased depth, the dredging program

will also widen the fairway so that large inbound and outbound ships can pass with fewer restrictions and bigger safety margins. It is expected that it will take up to

18 months to complete the project, but depth improvements will already become gradually available as deepening works progress. Hamburg will invest and

estimated EUR 600M in the project to maintain its competitive edge in the European Northern Range.

More carriers are adding transpacific capacity to relieve the space crunch and take advantage of the strongly increased spot freight rates on this trade.

HMM increased the capacity on its transpacific service ‘PS1’ by 35% in the first three weeks of September. The capacity increase was achieved by swapping

three 6,350 TEU ships with larger ships of 8’566 TEU taken from the China-India Express Service.

CMA CGM also added two high capacity extra loaders (9,953 TEU CMA CGM BUTTERFLY and 8,465 TEU CMA CGM MELISANDE) in September. Maersk

added two more extra loaders making an ad-hoc USWC trip in September. They follow two extra loaders deployed by Maersk in August. Evergreen also

introduced larger tonnage on the transpacific by replacing one 6,332 TEU vessel with a larger 11,037 TEU ship. Evergreen plans to keep this ad-hoc arrangement

until November to give the carrier a short term capacity boost on the transpacific.

Maersk and MSC will suspend their joint Asia – North Europe ‘AE-2/Swan’ service from end September. This service is one of the largest loops operated on

the Asia – North Europe route and its suspension will remove an average of 19,250 TEU or 6.8% of the current weekly capacity on this trade. Both carriers

stated that the suspended ‘AE-2/Swan’ service will resume when demand picks up. However, exact timing for reintroduction has been left open. Maersk and MSC

will temporarily adjust the rotation of some other Asia – North Europe loops to ensure that all ports calls of the ‘AE-2/Swan’ service remain covered directly.


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Source: Alphaliner, carriers

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Capacity Development 2/2

C A P A C I T Y D E V E L O P M E N T

OCEAN Alliance and THE Alliance are to merge their Med-USEC weekly services into a single joint weekly service. The OAL ‘TAT1’ service, run with six

vessels of 4,3000-5,300 TEU, and THE Alliance ‘AL6’ service, run with five vessels of 4,500 TEU, will be combined into a single weekly service employing six

ships of 8,500 TEU. The members of the two alliances (except Evergreen) have formed the ‘MED/USEC Vessel Sharing Agreement’ to formally organize their

cooperation. The rotation of the new service has not been unveiled yet, but the scope of the VSA covers France, Italy, Malta, Morocco, Spain and the US ports in

the Atlantic coast range. The injection of larger ships will lead to a reduction of the costs per slot while retaining a similar weekly capacity.


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Carriers


C A R R I E R S

COSCO Shipping’s container shipping business posted a net loss of $25M in 1H 2018, compared to a net profit of $147M in the same period last year.

Operating margin (Core EBIT after deduction for subsidies) slipped to 0.6%, compared to 3.1% 1H 2017. The deterioration in earnings was due mainly to weak

freight rates, which fell by 2.5% on COSCOS’s international routes and by 7.5% on its domestic routes. Total liftings increased by 12.4% to 11.235 MTEU in 1H

2018, compared to 1H 2017.

CMA CGM has reported operating profits of $67M in Q2, 2018, a deterioration from the $88M posted in Q1, 2018 and the $472M reported in Q2, 2017. The

carrier managed to return a positive net profit of $23M during the quarter thanks to a foreign exchange gain of $123M during Q2 due to the appreciation of the

USD against the Euro. Net profits would have been negative in the absence of this adjustment. CMA CGM expects Q3, 2018 results to be significantly

improved from its first two quarters, but operating margins will still remain lower than last year. The deterioration in the Q2 results was due to an increase in

bunker costs, which carriers were unable to pass on to shippers. Average revenue in the Q2 was -2.0% lower compared to the same quarter last year while

operating costs per TEU increased by 6.6%. CMA CGM’s container lifting's increased by 9.6% to a record of 5.2MTEU in Q2, 2018, due to capacity growth in its

OCEAN Alliance network, as well as the launch of new services and upgraded, with significant gains on the Middle East and Africa trades.

PIL has reported a net loss of -$141M in 1H 2018, compared to a net profit of $11M 1H 2017. PIL’s shipping operations accounted for $1,251M or 56% of the

Group’s total turnover in the 1H 2018. Shipping revenue increased by 2% while container liftings increased by 5% during the period, with average rates falling

due to severe market competition. Shipping expenses increased by 17% due mainly to the increase in bunker price, resulting in the significant drop in

operating margins.

Maersk has opted for a unified brand name, ‘Sealand – A Maersk Company’, to market the services currently offered by Seago Line (Intra Europe trades), MCC

Transport (Intra-Far East trades) and SeaLand (Intra-Americas). The rebranding is aimed to reduce complexity towards customers thanks to a simpler brand

identity. The three regional carriers are to continue their activities and operations unchanged as only the companies’ names are changed. The rebranding

will be effective from 1 Oct 2018 : MCC Transport to become ‘Sealand Asia – A Maersk Company’, SeaLand to become ‘Sealand Americas – A Maersk Company’

and Seago Line to become ‘Sealand Europe & Med – A Maersk Company’. Sealand – A Maersk Company will operate independently from Maersk and the existing

structure of three teams in three locations reporting to their regional CEOs will remain unchanged.


PUBLIC

Source: Alphaliner, Seabury, carriers

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Regulations


R E G U L A T I O N S

Malaysia: Ocean Freight New Implement for 6-Digit HS Code Effective 01 October 2018

The Royal Malaysian Customs Department (RMCD) has issued a directive on the requirement to provide 6-Digit HS Code of the product/commodity for every

shipment and to be submitted in the manifest. The RMCD circular is directed at importation of Ocean shipments only and applicable to all sea-ports in Malaysia for

all shipment with arrival at Malaysian ports from 01 October 2018.

Malaysia: Sales & Service Tax (SST) Rate Changes to Replace Goods & Service Tax (GST) Percent Effective 01 September 2018

All ancillary charges which previously rated as GST zero percent is now SST zero percent effective 01 September 2018. The exception goes to Warehouse

Management Services where it will attract SST 6 percent.

Link to the official government circular and FAQ https://mysst.customs.gov.my

Mexico: Regulation for Trucking Services in Mexico

As of 27 August 2018, a new regulation which establishes the driving times and breaks for drivers of federal motor transport services has become mandatory for

federal transports in the country. As a result of this regulation, pick-up and deliveries are expected to be delayed. DGF Mexico encourages that the impact on

pick-up and delivery time to be considered while scheduling shipments.

You can find the standard in Spanish in the following Link:

http://dof.gob.mx/nota_detalle.php?codigo=5529381&fecha=28/06/2018

Source: DHL


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https://mysst.customs.gov.my/

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The majority of containership owners still appears undecided on how to

achieve compliance with the new IMO 2020 regulation.

Interest in LNG propulsion remains limited so far due to high upfront

investments and uncertainties regarding the yet unproven gas bunkering

infrastructure.

Interest in exhaust gas cleaning systems, known as scrubbers, has picked

up significantly in recent months. Despite investment costs of 5-10m USD

per ship, the relatively short payback period for scrubbers has proven

sufficiently attractive for some ship-owners.

Still, the total number of scrubber-fitted vessels will remain at a fraction of the

global container fleet of more than 5’300 ships. Therefore, the vast majority

of these will need to switch to low-sulphur fuel, with operators facing higher

fuel bills as a result.

Did you know?

IMO 2020 Global Sulphur Limit Compliant Containership Fleet

Source: Alphaliner


13 13 B A C K - U P

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Source: DGF

Market Outlook October 2018 – Ocean Freight Rates Additional Trades (1/2)


EURO – AMLA Capacity remains challenging. Pre-notice of bookings have to be considered at between 2 - 3 weeks. Further rate increases are coming for Q4

by some carriers, subj. to EBAF.

EURO – SSA Rates remain stable and space is available.

AMNO – MENAT Rates in the market are stable. Space continues to be an issue especially from US Gulf Coast and USEC but not as bad as earlier this year.

Bookings are now out about 2 weeks.

AMNO – SSA Rates to South Africa and West Africa will increase in October. Capacity is stable and space available. Hamburg Sud joined the direct service

from USA to South Africa in August (Direct Service is currently shared by Maersk/Safmarine/MSC).

AMNO – AMLA Capacity to WCSA continues to be very tight. GRI’s pending to WCSA and Fuel rising slightly.

AMLA Exports

Roll over and space constraints affecting entire region. MX/BR/SAWC region facing port omissions and backlogs (Market Restructuring, BR

Strike backlog, Weather). Serious congestion being faced in T/Shipment ports like CTG, BUN and MIT. Shippers are strongly urged to provide

forecasts 6-8 weeks out. Carriers suspending service temporarily on trades effected by congestion. GRI’s and Emergency Fuel surcharges

announced daily on all trade. F/Time/Drop off conditions coming with a cost.

AMNO – ASPA FMC is currently reviewing proposal from carriers to remove one of two direct services for USA to Oceania trade. The proposal (if approved)

would go into effect during Q4 and would remove PNW loop, while stretching the PSW string to include those ports in one call.


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Market Outlook October 2018 – Ocean Freight Rates Additional Trades (2/2)


EURO MED - AMNO Slight rate increases depending on the service

EUR MED – AMLA Unchanged / stable

EURO MED – ASPA Slight reductions / stable

EURO MED – MENAT Slight reductions / stable

EURO MED – SSA Unchanged / stable

ASPA-SPAC

Alliances have planned blank sailings in October. Space is expected to be tight during the Oceania traditional peak season. Recovery is

expected to be during end of October at earliest for China export. South East Asia on the other hand is at its peak and situation will

persist till end of Dec 2018.


Source: DGF

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Market Outlook – Volume Outlook in Main Trade Lanes, 2018 Estimate &

2019/22 Growth Forecast in %

N O R T H

A M E R I C A I n c l .

M E X I C O

4.0 mTEU +3.0%

2.1 mTEU +3.4%

1.6 mTEU +4.7%

1.8 mTEU +3.5%

N O R T H

A M E R I C A I n c l .

M E X I C O

L A T I N

A M E R I C A

E U R O P E

I n c l . M E D

12.8 mTEU +2.3%

7.3 mTEU +2.7%

8.1 mTEU +2.5%

19.0 mTEU +2.8%

1.7 mTEU +4.3%

4.1 mTEU +4.4%

2018e, in mTEU 2019e-2022e CAGR, in %

F A R E A S T

I N T R A A S I A

excl. Oceania

41.6 mTEU +4.8%

2.0 mTEU

+5.6%

1.5 mTEU

+3.6%

L A T I N

A M E R I C A

G L O B A L C O N T A I N E R T R A D E 2 0 1 8 e 1 5 2 . 6 m T E U + 4 . 0 % C A G R 2 0 1 9 e - 2 0 2 2 e

Mid-term growth is mainly driven by Asian tradelanes.

Source: Seabury Jun18 update


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Drewry’s Altman Z-Score as of 1 Sep 2018


PUBLIC

Source: Drewry Sea & Air Shipper Insight Aug 2018, 1) parent of OOCL, 2) 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

The Z-Score is a statistical analysis to predict a company’s probability of failure in the next two years, using data from the company’s financial statement.

Z-Score 2.99 = company is “safe”; Z-Score between 1.8 and 2.99 = exercise caution (“grey zone”); Z-Score 1.8 = Higher risk of the company going bankrupt

(“distress zone”)

Company Period Period Ended Units Net Sales EBIT Assets Book Value

of Equity

Liabilities Retained

Earnings Z-Score

Total Current Total Current

AP Moller-Maersk 3 months 31. Mrz 18 million US$ 9'253 -3 61'639 21'794 34'313 27'326 10'127 29'723 2.26

OOIL 1) Annual 31. Dez 17 million US$ 6'108 208 10'069 2'965 4'683 5'387 1'380 4'620 2.03

CMA CGM 3 months 31. Mrz 18 million US$ 5'411 115 19'713 5'545 5'575 14'138 5'526 5'327 1.79

Wan Hai 3 months 31. Mrz 18 million NT$ 14'918 146 72'753 23'665 33'705 39'048 19'566 12'065 1.66

NYK group 3 months 30. Jun 18 billion Yen 465 -8 2'122 506 568 1'554 557 336 1.56

Hapag-Lloyd Holding 6 months 30. Jun 18 million euro 5'425 89 14'998 2'268 6'146 8'851 3'115 3'075 1.40

Evergreen Marine Corp 3 months 31. Mrz 18 million NT$ 36'841 493 196'599 57'390 65'845 130'754 45'021 12'183 1.25

K Line group 3 months 30. Jun 18 billion Yen 212 -13 1'025 307 280 744 234 107 1.11

China Cosco 2) 3 months 31. Mrz 18 million RMB 21'923 699 129'359 34'792 43'356 86'003 40'728 9'959 1.10

MOL group 6 months 30. Jun 18 billion Yen 304 4 2'206 414 619 1'587 508 304 0.95

Pacific International Lines Annual 31. Dez 17 million US$ 4'037 -267 6'107 1'471 1'906 4'201 2'068 1'078 0.92

Yang Ming 3 months 31. Mrz 18 million NT$ 31'035 -2'066 130'908 25'968 24'320 106'587 50'022 -3'460 0.62

Zim 3 months 31. Mrz 18 million US$ 751 -7 1'777 572 -130 1'906 720 -1'927 -0.02

Hyundai Merchant Marine 3 months 31. Mrz 18 billion Won 1'112 -164 3'399 1'227 749 2'650 682 -2'890 -0.16

18 18

Topic of the Month

Top 12 Carriers by Operated Capacity (in Mil. TEU), December 2017

0

1

2

3

4

5

APM-Maersk,

HamburgSüd

MSC COSCO,OOCL

CMA CGM,Mercosul

Hapag-Lloyd ONE (NYK,MOL, K Line)

Evergreen Yang Ming PIL Zim HMM Wan Hai


Source: Alphaliner, incl. pending mergers

After triggering regulatory approval processes in 23 jurisdictions, Maersk

finally aquired Hamburg Süd.

Over the next five months, Maerk will terminate some of Hamburg Süd’s

overlapping services on certain trades.

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Acronyms and Explanations

2M - Carrier Alliance: Maersk / MSC Ocean 3 - Carrier Alliance: CMA, UASC, China Shipping

AMLA - Latin America OCRS - Operational Cost Recovery surcharge

AMNO - North America OOCL - Orient Overseas Container Line

AR - Argentina OWS - Overweight Surcharge

ASPA - AsiaPacific PH - Philippines

BR - Brazil PNW - Pacific North West

CAGR - Compound Annual Growth Rate Ppt. - Percentage points

CENAC - Central Amercia and Caribbean PSW - Pacific South West

CKYHE - Carrier Alliance: Cosco, K-Line, YangMing, Hanjin and Evergreen RR(I) - Rate Restoration

CNC - CNC Line (Cheng Lie Navigation Co. Ltd.) SAEC - South America East Coast

DG - Dangerous Goods SAWC - South America West Coast

DWT - Dead Weight Tonnage SOLAS - Safety of Life at Sea

EB - Eastbound SPRC - South People’s Republic of China – South China

ECSA - East Coast South America SSA - Sub-Saharan Africa

EGLV - Evergreen Marine Corp SSL - Steam Ship Line

EURO - Europe T - Thousands

FMC - US Federal Marine Commission TEU - Twenty foot equivalent unit (20‘ container)

G6 - Carrier Alliance: APL, Hapag Lloyd, Hyundai, MOL, NYK and OOCL TP - Trans Pacific

GRI - General Rate Increase TSA - Trans Pacific Stabilization Agreement

HJS - Hanjin Shipping ULCS - Ultra Large Container Ship

HMM - Hyundai USGC - US Gulf Coast

HL - Hapag -Lloyd US FMC - US Federal Maritime Commission

HSUD - Hamburg Süd USEC - US East Coast

HWS - Heavy Weight Surcharge USWC - US West Coast

IA - Intra Asia VGM - Verified Gross Mass

IPBC - India Pakistan Bangladesh Colombo VLCS - Very Large Container Ship

IPI - Inland Point Intermodal VSA - Vessel Sharing Agreement

ISC - Indian Sub Continent WB - Westbound

MENAT - Middle East and North Africa WCSA - West Coast South America

ML - Maersk Line WHL - Wan Hai

mn - Millions YML - Yang Ming Line

MoM - Month-on-Month YoY - Year-on-Year

NOO - Non-operating (vessel) owners YTD - Year-to-Date


PUBLIC

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