THINKING AHEAD – MOVING FORWARD

Red Sea Disruption

Global Seafreight Market Update
Impact onFebruary
Container
2024 Shipping
 THINKING AHEAD – MOVING FORWARD 2

Agenda

Hot Topic of the Month

Red Sea Special Edition Update

General global monthly Seafreight Market Update

Volume and Capacity Development

Executive Summary (Global Economy, Container Demand, Index Freight Rates)

Monthly Market Update FCL for Top Global Trade Lanes

(Rates, Capacity, Equipment)

General global monthly LCL Market Update

 THINKING AHEAD – MOVING FORWARD 3

Hot Topic of the Month

Alliance revamp in 2025 set to disrupt liner market balance

The Gemini Cooperation formed by Maersk and Hapag-

Lloyd will create the 3rd largest global container shipping
alliance in January 2025, behind the Ocean Alliance and
MSC/Zim partnership, while THE Alliance will be relegated to
4th position. Although there are speculations about a
potential break-up of the OCEAN Alliance, the agreement
between CMA CGM, COSCO and Evergreen is fixed for a
minimum of 10 years from April 2017 and the partners will
need to give 12 months advance notice to withdraw and
notice may not be given prior to March 2026 unless there is
a material change in the partners’ ownership status or one
of the partners become insolvent. THE Alliance had similar
provisions but allowed its members to give 12 months notice
after April 2023, which Hapag-Lloyd utilized in order to
withdraw prematurely from the arrangement that was
supposed to operate until 2030. This leaves the remaining
members of THE Alliance with limited options to fill the gap
left by Hapag-Lloyd’s imminent departure and they will
operate at a sub-optimal scale in 2025 until the imbalance
can be redressed.

Source: Linerlytica (January 22nd, 2024)

 THINKING AHEAD – MOVING FORWARD 4

Market Update Special Edition: Red Sea Disruption

How it started in November 2023
Dec 30 and 31
Dec 14 and 15 Further attack on container
Attacks with missiles and vessel: Maersk 15.200 TEU,
drones on 3 container “Maersk Hangzhou” (two
Nov 24 vessels: attacks)
15.000 TEU “CMA CGM Maersk 10.000 TEU, “Maersk
Symi” was the first Gibraltar”
container vessel to be
attacked by a drone. This
Hapag-Lloyd 14.500 TEU, “Al
Jasrah” Dec 24
was in the Indian Ocean MSC 2.500 TEU, “MSC Maersk and CMA
and not in the Bab al- Palatium III” CGM begin transits
Mandeb Strait. To some These attacks led to global through Bab al-
degree this went relatively carriers cancelling Red Sea Mandeb with escorts
unnoticed. transits to redirect around from US and French
Africa naval vessels

Dec 3 Dec 18 Dec 26

Attacks with missiles on 3 Further attack on container Further attack on Dec 31
different vessels in Bab al- vessel: container vessel: Maersk stops
Mandeb, hereunder 1 MSC, 18.400 TEU, “MSC Clara” MSC 8.200 TEU, transits again for a
container vessel “Number 9” “MSC United VIII” 48-hour risk
operated by OOCL. This led assessment period
to concern but no action on
the part of the major
container carriers.

Nov 19
Vessel “Galaxy
Leader” was attacked
and hijacked.

Source: Vespucci Maritime, Lars Jensen

 THINKING AHEAD – MOVING FORWARD 5

Market Update Special Edition: Red Sea Disruption

Current situation – Feb 6th
All major carriers are redirecting around Africa which seems to become the new normal as there are no indications to revert to Suez

CMA CGM has now officially announced that they will also re-route their vessels around Africa. This completes the full
separation between the global alliance carriers and the smaller niche carriers who still operate services using the Bab al-
Mandeb crossing. It should in the context be noted that European niche carrier Tailwind also goes around Africa though,
leaving the niche direct Asia-Europe service principally to small Chinese carriers servicing the China-Russia trade. The
multitude of Asian niche carriers which cross the strait is principally linking the Red Sea ports to Asia and do not go through
the Suez Canal into the Med.
A permanent re-routing of all services requires 1-4-1.7 Million TEU of capacity equal to absorbing up to 6% of global
container vessel capacity.
Maintaining the services to and from Europe requires extra vessels which usually has a domino effect on other trades as
capacity is shifting.
Further service disruptions and ripple effects to be expected such as: equipment imbalance, schedule reliability, port
congestions, port omissions, etc. How severe to be seen in the coming weeks and months, but we should not expect a fast
resolution of the challenges.
Spot Rates have been increasing faster than after COVID-19, but are first time dropping since weeks, and it seems the peak
has been reached. However, we should not expect a steep decline in rates back to October/ November SCFI spot rate levels
as they were below cost levels for carriers.
Other services such as Sea-Air, Air, Rail are good alternatives at the moment to keep the supply chain and stock levels alive.
If you are interested in our service options, please speak to your Hellmann Sales Representative
Source: Vespucci Maritime, Lars Jensen, HWL own
 THINKING AHEAD – MOVING FORWARD
Global Seafreight Market Update
The Drewry World Rate Container Index shows a first drop and it seems the peak has been reached, but we all know that the market is not predictable!
Geopolitics
The Red Sea disruption and situation in Israel /
Gaza, all of this has a negative impact on global
supply chains. The war between Russia and the
Ukraine is unchanged and other geopolitics may
arise, e.g., China and Taiwan
Port & Terminal Congestion
Global port congestion eased slightly
ahead of the Chinese holidays with
only minor build ups of congestion in
isolated locations. (N. Asia 37%, N. Europe 3%, N.
America 11%, 1.54m TEU – 5.4% of the global fleet).
Source: Linerlytica (February 5th)
Orderbook/Capacity Outlook
+25.2% of existing fleet / +8.2% 2023e / +9% 2024e.
Source: Alphaliner (January 2024)
Sources: Linerlytica, Alphaliner, Drewry, Sea-Intel, own HWL
Idle Fleet Global Schedule Reliability
56.8% (56.4% same time 2022) and decreased by
1.0% - the idle fleet decreased by 0.1% in
5.0% compared to last month. Evergreen is with
comparison to last month.
63.6% the most reliable carriers in December.
Avg. delay of late vessels is 5.35 days.
Source: Alphaliner (January 2024)
Source: Sea-Intelligence (January 2024)
Global Carrier Ranking Strikes
Rising. Germany (Rail), France (Port). Recently
1.)MSC (19.8%); 2.)Maersk (14.6%); 3.)CMA CGM
India (truckers), South Africa. Tough discussions
(12.6%); 4.)Cosco Group (10.8%); 5.)Hapag-Lloyd
and negotiations expected in the US this year
(7.0%); 6.)ONE (6.3%); 7.)Evergreen (5.7%); 8.)HMM
when the ILA (International Longshoremen’s
(2.7%), 9.)YML (2.5%), 10.)ZIM (2.3%)
Association) contract expires in Sep 2024 for the
TOP10 Share = 84.3%. Source: Alphaliner US Gulf and East Coast.
Bunker Development World Rate Container Index
RTM 0.5% VLSFO 586$/mt (-2% vs. PY), IFO380
449$/mt (+12% vs. PY). LNG in comparison $3.824/40ft – 88% higher than a year ago and
490$/mt (-42% vs. PY). $1.154 higher than last month (Jan 4th, 2024).
Source: Drewry (Feb 1st, 2024)
Source: Linerlytica (February 5th)
 THINKING AHEAD – MOVING FORWARD 7

Global Sea Freight – Volume Development

CTS Year-on-Year Volume comparison single month, Jan 22 – Nov 23 in %

Global Seafreight volume development YoY Growth

14%

12%
12%
10%

8% 9%
8%
6%

4%

2% 3%
1% 1%
0% 0%
-2% -1% -1%
-3% -1% -2%
-2%
-4% -3% -4% -4%
-4%
-6%
-7%
-8% -6%
-9% -9%
-9%
-10% -10%
-12%
01/22 03/22 05/22 07/22 09/22 11/22 01/23 03/23 05/23 07/23 09/23 11/23
Source: CTS
 THINKING AHEAD – MOVING FORWARD 8

Global Sea Freight – Market Update

Development of weekly capacity on
Development of global transport volume [TEUm] top trades Far East to Europe and N. America 1)
130%
11M 2022 11M 2023
125% Transpacific
TEU 159.4m -0.1% TEU 159.4m
Far East
120%
Weekly capacity 2019
115%
+4,8%
-3,2%
-7,2% 110%
45,4 45,4
43,1 43,9 43,3 105%
40,0
100%

95%

+9,3%
90%
+8,4%
2022
85%
2023 15,3 14,9
14,0 13,7
80%

75%

70%
Q1 Q2 Q3 Oct Nov 01/22 04/22 07/22 10/22 01/23 04/23 07/23 10/23 01/24
Sources: CTS, Alphaliner various issues ; 1) As compared to the respective weekly PY capacity
 THINKING AHEAD – MOVING FORWARD 9

Freight Rates Global Economy

The composite index decreased by 4% to $3,824 per 40ft World Economic Outlook Update, January 2024
container this week and has increased by 88% compared
with the same week last year. The latest Drewry WCI Global growth is projected to stay at 3.1 percent in
composite index of $3,824 per 40ft container is the 2024 and rise to 3.2 percent in 2025. Elevated central
highest since October 2022 and is 169% more than bank rates to fight inflation and a withdrawal of fiscal
average 2019 (pre-pandemic) rates of $1,420. support amid high debt weigh on economic activity.
February 2nd SCFI increased from January 5th to
2,218/TEU (16.9%). It is 107.7% higher than 3 months ago
and 120.3% above last year’s figure at the same time.

Container Demand

Year over year in November we have seen a growth

of more than 8% and if that trend continues in
December, which is expected, we will see a slight
market growth in 2023. YTD November as per CTS is
still negative with minus 0.1% vs. previous year.

Sources: CTS, Drewry, Linerlytica, IMF

THINKING AHEAD – MOVING FORWARD

FCL - Monthly Market Update

 THINKING AHEAD – MOVING FORWARD 11

Top Global Trade Lanes - Market Update & Outlook

1. E U R O P E (1/2)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

01.1 = = - Rates remain on a very low level + emergency surcharges

Europe to Asia Schedule reliability decreases due to Red Sea situation
Transitimes increase
(2024-02-06)

02.1 = = - Rates steady but Congestion + PSS announced (not related to Red Sea situation)
Europe to Africa Space is a challenge but not impossible.

(2024-02-06)

03.1 = + - Rates are about to increase due to Red Sea situation

Europe to Middle East Especially ports directly at Red Sea will face higher costs
At the moment Red Sea ports not regularly served by all carriers (only four can serve at the moment)
(2024-02-06)

04.1 - - + SAEC: Rates are decreasing. Demand is dropping and therefore space is available / SAWC: Rates are decreasing. the carriers
Europe to Latin America show more interest in opportunities and space is available / MEX: vessels show a higher utilization again. Carriers are open
for new opportunities and are willing to discuss longer contract validities again. Impact of the Red Sea conflict is known yet.
(2024-02-06)
 THINKING AHEAD – MOVING FORWARD 12

Top Global Trade Lanes - Market Update & Outlook

1. E U R O P E (2/2)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

05.1 - = = Layover time in T/S ports is back to normal (one to max two weeks)
Europe to Oceania Direct service is still very good utilized
Rates are no more decreasing because of the Red Sea situation
(2024-02-06)

06.1 - = + Open space on close to all vessels

Europe to North America Carriers are actively searching for new opportunities and long contract validities.
Rates are decreasing
(2024-02-06) Schedule reliability is increasing
Based on the red sea conflict it is expected to see an equipment shortfall

25.1 - = = Space & equipment availability are back on a “normal” level for the majority of the ports.. Carriers are interested in businesses
Intra Europe again.
Israel: situation unstable – only possible with high risk charges. Can change from day to day
(2024-02-06) Majority of Med destinations are not effected by Red Sea situation as there are a lot of Med dedicated services available. Still
some destinations served via Asia services will face issues
 THINKING AHEAD – MOVING FORWARD 13

Top Global Trade Lanes - Market Update & Outlook

2. A S I A (2/4)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

07.1 - ++ - Supply & Demand / Pricing

Asia to North America • As a direct consequence of recent security concerns in the Red Sea area resulting in Cape of Good Hope (CGH) re-routings,
coupled with NAEC Panama Canal draught restrictions, carriers have raised the pricing base quite considerably. Affecting both
(2024-02-06) FAK and NAC agreements.
• SCFI index has shown yearly increases of 200%/125% WC/EC.
• Increases are materializing in the shape of Peak Season + Panama Canal Surcharge + traditional, and hefty, GRIs.
• Whilst utilization slightly dropped in the last weeks of the year, capacity will be facing a reduction throughout January and
February, linked to Lunar New Year, but also to the re-routing of vessels affecting the proforma schedules of services.
• Carriers will also continuously blank sailings to curb the current demand vs supply gap, even more so to ensure that the
increases they’ve announced hold on as much as possible.
Operational
• Once again, pre-booking and forecasting comes as a top-priority. Especially for long term agreements since ocean carriers will be
looking to prioritize higher-yielding shipments in the spot market.
• Although the Panama Canal draught restrictions remain in place, the Canal’s authorities increased the daily passages back to 24
vessels per day, up from 22 vessels being allowed throughout December. The previously announced reduction to 18 vessels/day
as of Feb. 1st has been put on hold. Delays when transiting via the Panama Canal range anywhere from 5-12 days for
containerships.
• Equipment currently remains available across most locations in the region. However, the latest impacts resulting from the re-
routings will be causing a ripple effect that may result in equipment shortage soon. It shouldn’t come as a surprise to start
seeing premium/priority surcharges come into play once again.
• Schedule reliability had been experiencing gradual improvement but stagnated for the past couple of months. Once again, with
Suez/CGH due to sudden congestion in PNW due to the ILWU CA strike, as well as the marginal capacity limitation on EC
services and the resulting delays. As blanking increases, and service strings face adjustments, reliability isn’t expected to keep
improving in the short term.
• Trucking and equipment/chassis availability remains steady. Not a point of major concern.
Ports/Rail
• All major North American ports are operating normally without any major backlog or critical dwelling times, for now.
• Keep in mind that the ILA, representing EC/Gulf labor unions, has their labor agreement expiring come September 2024. The ILA
has already rejected a proposal similar to what the ILWU US accepted.
 THINKING AHEAD – MOVING FORWARD 14

Top Global Trade Lanes - Market Update & Outlook

2. A S I A (1/4)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

01.2 -- - -- Rate levels are slightly decreasing close before CNY as carriers are trying to secure as much cargo as possible for a solid roll
Asia to Europe pool, in order to cater for the post CLY slack period. SCFI slightly decreased three weeks in a row.
First issues regarding Equipment availability arise in certain areas.
(2024-02-06)
First blank sailings due to COGH diversions from mid FEB. Further Equipment issues expected.
 THINKING AHEAD – MOVING FORWARD 15

Top Global Trade Lanes - Market Update & Outlook

2. A S I A (4/4)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

10.1 _ + - • Freight rates are stabilizing with slight increases but carriers strict to apply congestion charge of USD200/TEU for South
Asia to Africa African Ports.
• We may expect congestion situation to improve in South Africa post CNY.
(2024-02-06) • East and West Africa freight rates are expecting to stay stagnant for most of Feb.
• Carriers are open to longer-term contracts.

11.1 = ++ - Schedule into Australia has been severely affected due to the continuous Planned Industrial Action (PIA) since early October.
Asia to Oceania Average waiting time for berth for SYD/MEL/BNE/FRE/ADL stands at approximately 2-3 days. Most ships are returning to Asia
almost a week late from their intended proforma schedule. Market capacity for China to Australia East Coast has reduced as a
(2024-02-06) result.

Service into New Zealand are affected by PIA from AU, as most vessels arrive outside of planned window and thus must wait
for available berth. Demand for direct call space from China is high and thus carriers are also having GRI to ensure to keep the
balance between supply and demand.

24.1 = = = Southbound Intra Asia from China are experiencing higher demand, and rates are expected to remain high especially for
Intra Asia Destination ID/PH/VN/TH. That said, rates are expected to soften as we head into Chinese New Year in February.

(2024-02-06) Other sectors such as Southeast Asia (SEA) Northbound and Intra SEA remain stable, and rates are expected to remain flat
into 2024.
 THINKING AHEAD – MOVING FORWARD 16

Top Global Trade Lanes - Market Update & Outlook

2. A S I A (3/4)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

08.1 -- - - • First week of February is seeing a high demand of volume, PRE CNY rush to ship as much as possible.
Asia to Latin America • The next weeks of the month are expected to see a decrease in the demand with holidays in Asia and factories closing,
rates are expected to decrease as well during this month as carriers will push to fill vessels.
(2024-02-06) • February will have at least 2 Blank sailings per carrier, decreasing market capacity to stabilize vessel´s utilization.
• For March we will see the Post CNY effect, with urgent cargo to be shipped and full vessels which will once again spike
rates higher.
• Container shortage is already a reality in Asia, not only on outports but on base ports as well. If the Red sea situation
continues in March after CNY, then rate increase will be even higher. Suggest flexibility on equipment type, including the
use of NOR containers.
09.1 - + -- • Most carriers continue to suspend direct service to Red sea, accepting routing via Jebel Ali at high premium.
Asia to Middle East / • This has resulted higher demand for Persian gulf which has pushed up rates significantly by over 100%
South Asia • For Indian-Subcontinent, rates were pushed up with USD300/TEU increase
• Space in 1st half of Feb is overbooked due to CNY and rollovers are expected
(2024-02-06) • Post CNY we may start to see some softening up of freight
• Carriers are still open to longer-term rates but levels provided are much higher than what was possible last year.
 THINKING AHEAD – MOVING FORWARD 17

Top Global Trade Lanes - Market Update & Outlook

3. N O R T H A M E R I C A (2/2)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

19.1 = - = • All Services are open.

North America to Oceania • MSC has implemented a GRI for their t/s services off the east coast routed through the Suez Canal being re-routed around
the Cape of Good Hope of $150/teu
(2024-02-06) • Rates on direct services have been reduced dramatically
• The ANP direct service (Hapag, MSC, Maersk) has suspended direct service to Sydney due to Labor issues

21.1 = = ++ Rate Development:

North America to Latin WCSA •Current low ocean rates will remain for Q1/24 across the board for FAK and on-line Spot and some carriers are just aligning to
America the market.
•Manaus Low-water restrictions has been lifted, with full allocation available.
(2024-02-06) •Bunker increases received across the board for Q1/2024, ranging from $40 to $60 x TEU, requiring to pass on to the clients
accordingly.
•New Panama Canal Surcharge Eff. Jan/24 ranging from USD 130 to $150 x TEU's to compensate the operational
spend faced with the recent delays and vessel crossing reduction from 38 to 24 x day, to remain under evaluation until further
notice.

Allocation:
• ONE in collaboration with CMA on the South Florida “FLX” service now calling ORF/PHL/NYC and SAI on the WCSA.
•Zim enhanced the Colibri service by adding Lirquen Chile (South) targeting commodities moving into USEC.
•New service rotation deployed during Q1/24 by ZIM Lines under "Tucan", connecting ECSA <-> USGULF, and Ceiba Express
from CMA ex Florida to Central America.
•USEC to WCSA, suffering capacity constrains in view of the Panama Canal service delays pushing carriers to re-route the
cargo via Panama (land) or dealing with the extra waiting time announced with 3 days aprox.
 THINKING AHEAD – MOVING FORWARD 18

Top Global Trade Lanes - Market Update & Outlook

3. N O R T H A M E R I C A (1/2)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

06.2 = - = • Al5 open, but has cancelled the PNW and added Saint Johns, Canada. Los Angles & Oakland remain off the west coast
North America to Europe • Panama Canal surcharge has been implemented due to low waters.
• East coast/Gulf Coast open for business
(2024-02-06) • Rates continue to remain low.
• Services into the West & East Med wide open.
• Watch for blank sailings
• EU ETS Surcharge in full effect from all carriers

07.2 = - _ • Space is wide open off the east and west coast
North America to Asia • The Alliance has suspended the EC4, PN3 & PS5 services
• Be aware of upcoming port omissions/blank sailings.
(2024-02-06) • Rates remain low off both coasts.
• Some carriers have implemented a Panama Canal Surcharge ranging from $65 -$150 per teu
• Due to the current ongong crisis in the Red Sea many carriers have re-routed cargo to Asia through the Suez Canal around
the Cape of Good Hope. Contingency surcharges/GRI's to be expected
 THINKING AHEAD – MOVING FORWARD 19

Top Global Trade Lanes - Market Update & Outlook

4. L A T I N A M E R I C A (1/1)
++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

04.2 = - + •
•
Ocean carrier vessel utilization is stable, carriers are reporting strong performance on FAK.
Lumber Season demand from ECSA starts in Q1 to NEU, strength will depend each country economy development.
Latin America to Europe
• Effective Jan. 1st/24 new ETS surcharge implementation by all carriers connecting with Europe ports.
(2024-02-06) • One Lux Service and Zim Tucan Service, are opening allocation ex ECSA connecting with Europe via their net-work
• New Panama Canal Surcharge Eff. Jan/24 ranging from USD 130 to $150 x TEU's.
• Carrier’s flexibility increased around long-term and mid-term businesses, except to Read Sea Market

21.2 = - + •
•
Capacity is stable, entering to the slack season that shall end by end of Q1.
Rate levels continue stable, not further reduction expected with some flexibility around NAC's.
Latin America to North
• Mexico to USA (nearshoring projects) creating high expectations in the market once Automobile productions plants are ready in 1-2 years
America from now.
• New Panama Canal Surcharge Eff. Jan/24 ranging from USD 130 to $150 x TEU's to compensate the operational spend faced with the
(2024-02-06) recent delays and vessel crossing reduction from 38 to 24, to remain under evaluation until further notice.
• New service rotation deployed during Q1/24 by ZIM Lines under "Tucan", connecting ECSA <-> USGULF, opening extra capacity to this
market, and Ceiba Express by CMA connecting CA & South Flordia. Also upgrade of the Colibri adding Lirquen POL to connect with USEC

23.1 = - + • Rates for Intra East & Intra West Coast are very low, pushing carriers to prefer long haul business paying higher rates, but market is not
Intra Latin America
on carrier's favor.
(2024-02-06) • New Panama Canal Surcharge Eff. Jan/24 ranging from USD 130 to $150 x TEU's to compensate the operational spend faced with the
recent delays and vessel crossing reduction from 38 to 24 x day, until further notice.
• Intra-Latam service connections are running smooth with no port congestion and open space across the board
• Carrier’s flexibility increased around long-term and mid-term businesses due to soft market conditions.
• TLM seeking for new clients, this is the right time to play aggressive, and approach clients that were not able to secure before due to
pricing or service connectivity limitations.
 THINKING AHEAD – MOVING FORWARD 20

Top Global Trade Lanes - Market Update & Outlook

5. IMEA (1/1) ++ + = - --
Strong Increase Slight Increase Unchanged Slight Decline Strong Decline

Trade Lane Equipment

Outlook
Rate
Outlook
Capacity
Outlook
Market Information

03.2 = ++ - Due to Red Sea Situation, Carriers have implemented Surcharges / GRI / PSS
Middle East / South Asia to Capactiy is less due to port omissions and blanks .
Europe
(2024-02-06)
17.2 = ++ - Due to Red Sea Situation, Carriers have implemented Surcharges / GRI / PSS
Middle East / South Asia to Capactiy is less due to port omissions and blanks. Carriers are releasing bookings strictly as per allocation.
North America
(2024-02-06)
09.2 = - - Space and equipment are available , backhaul trade is still ok as carriers need equipment in China
Middle East / South Asia to
Far East
(2024-02-06)
18.2 = ++ - Due to Red Sea Situation, Carriers have implemented Surcharges / GRI / PSS
Middle East / South Asia to Capactiy is less due to port omissions and blanks. Carriers are releasing bookings strictly as per allocation.
Latin America
(2024-02-06)
26.1 = ++ - Due to Red Sea Situation, Carriers have implemented Surcharges / GRI / PSS
Intra Middle East / Capactiy is less due to port omissions and blanks . Red sea : Land sea options, new feeder capacity to serve Red sea ports.
South Asia
(2024-02-06)
THINKING AHEAD – MOVING FORWARD

LCL - Monthly Market Update

 THINKING AHEAD – MOVING FORWARD
LCL Market Update
Trade Lane
06.2- North America to Europe
19.1- North America to Oceania
07.2- North America to Far
East
15.1- North America to Africa
17.1- North America to MESA
General; All NOAM
22
Market Information
• Our own consol NYC-HAM can offer capacity
• LCL export rates slightly dropping
• Our consol is not fully utilized, space is available, target to increase volume in HWL own box vs co-load
• LCL export rates are currently stable
• Space is available.
• Panama Canal draught restrictions have made carriers announce surcharges, but effective dates are getting pushed back
to July 1st. Please announce your customers a surcharge of 15 USD w/m might be implemented as of July.
• Rates to Africa are stable
• Capacity is taken out of this trade to support high demand on other trade lanes
• Trade is affected by low schedule reliability
• ECU has started direct sailing from Los Angeles to Nhava Sheva – T/T 38 Days – weekly sailing
• US East Coast increasing cargo volumes from the LATAM trades, especially Miami and Savannah.
• North America-South America volume is expected to continue growing with the launch of new services that connect
both sub-regions.
• Export storage free times have been reduced across the board
• Port congestion continues to improve; however delays continue to be observed resulting in potential delays.
• Schedule reliability still low, causing unanticipated delays in CFS vs ATD.
• ILWU Labor negotiation still waiting for final resolution. A tentative agreement on a new 6-year contract.
 THINKING AHEAD – MOVING FORWARD
LCL Market Update
Trade Lane
04.2- Latin America to Europe
08.2- Latin America to Far East
18.1- Latin America to MESA
21.2- Latin America to N.
America
23.1- Intra Latin America
General; LATAM
23
Market Information
• Capacity is available. Market is relaxing and rates are stable.
• Rate increase tendency has ceased ex ECSA and WCSA.
• Booking with anticipation is suggested to ensure space in desired sailing.
• Carriers have set stricter limitations for non-stackable to avoid impacting on container usage, especially cargoes via
SGSIN and KRPUS, where congestion is critical.
• Market relaxation taking place. Congestion in transshipment ports getting better.
• LCL carriers eager to get additional volumes to optimize boxes. Open possibility to get long-term rates as well as weekly
space for your bookings.
• Similar development to LATAM-Far East. Open possibility to get long-term rates and space availability in LCL, but strict
limitations for heavy and non-stackable cargo. New business with standard requirements is welcome.
• Rates tendency to decrease. E.g. BRSSZ to USNYC are on its lowest levels in 5 years.
• Booking with anticipation is suggested to ensure space in desired sailing.
• LCL rates trend to stabilize. Open possibility to get low long-term rates.
• Booking with anticipation is recommended to ensure space in desired sailing.
Panama Canal Drought: low water level causing several restrictions on vessel crossing from Asia to US EC and Gulf Coasts.
Carriers likely to impose an additional fee to offset the impact, however they continue to push the surcharges effective date
to August 1st.
 THINKING AHEAD – MOVING FORWARD
LCL Market Update
Trade Lane
01.1- Europe to Far East
06.1- Europe to North America
04.1- Europe to Latin America
03.1- Europe to MESA
25.1- Intra Europe
24
Market Information
Base port rates are still decreasing long term rates are at USD250/40ft GIAI incl BAF, short-term USD275. Some spot rates
of USD75/40ft GIAI incl BAF were seen. Space available but depends on the services. South Asia more space than China
Main. Longest waiting time for space 2 weeks. Delays in transit back to pre covid. Schedule reliability increases due to less
demand and congestions in ports.
Rates are steadily decreasing. Probably trending down over the next few months. Schedules tend to be more reliable. The US
still deals with delays with their IPI system, due to driver shortages and other challenges. QFP deals will be re-negotiated.
More services will be opened (ONE to SAEC). Offers will be bigger. All carriers seem to look for cargo.
EU:WWA has started Direct service in below sectors:-
FRMRS - INNSA
SEGOT – AEJEA
IMEA: Icargo has started direct service on below sector
London Gateway to Aqaba –T/T – 26 Days – Weekly Sailing.
Barcelona to Alexandria – T/T - 10 Days – Weekly Sailing
Rotterdam to Alexandria – T/T - 14 Days – Weekly Sailing
Hellmann Consol started from Hamburg to Nhava Sheva – Weekly sailing. Additional volume required to utilize the full
capacity.
Hellmann Consol started from Rotterdam to Jebel Ali – Weekly sailing. Additional volume required to utilize the full capacity.
Stable.
 THINKING AHEAD – MOVING FORWARD 25

LCL Market Update

Trade Lane Market Information

01.2- Far East to Europe Rates have been increased to the highest level and expecting no major changes before Chinese New Year. Carriers
announced they will continue to route via COGH until further notice.

07.1- Far East to North Carriers increased rates significantly to cater for the situation of vessel divert from Red Sea to via CPGH, blank sailing and
America equipment shortage. We anticipate carriers will continue the blank sailing to curb the supply vs demand and will hold those
surcharges as much as possible.

U.S. East Coast :

There is potential port strike in the East Coast and Gulf coast terminal in October while the labour contract end in
September.

U.S. West Coast :

Vessels are experiencing significant delays, pushing them further off their pre-fixed schedules. It has led to blank sailings
and increased port congestion.

Rail Terminal Updates :

No specific update
08.1- Far East to Latin America Rates started to decreased in second half of January and expecting to remain at current level until second half of February.
We anticipate the demand will increase after Chinese New Year and rates might be push up again.
 THINKING AHEAD – MOVING FORWARD 26

LCL Market Update

Trade Lane Market Information

09.1- Far East to MESA Due to Red Sea situation, Cape of Good Hope, with an average transit time increase of 14 days, has become the primary
alternative route for most of routing which originally route via Red Sea. The approaching of Lunar New Year is expected to
intensify delays, as increased exports precede the traditional holiday shutdown across Asia. Sea-air solution can be another
option to ease the situation.

11.1- Far East to Oceania Space is available and require support for own Consol service.

Consol require support : Shenzhen to Melbourne, Shanghai/Singapore to Sydney,

24.1- Intra Far East Due to vessel diversion around the COGH, Asian shippers are facing high freight rates and a lack of capacity on the intra-Asia
trades. Exporters are also grappling with equipment shortages and the impact is significant on key trade routes, like China-
Vietnam and China-Thailand, where deep-sea services make up a growing share of intra-Asia volumes.
 THINKING AHEAD – MOVING FORWARD
LCL Market Update
Trade Lane
14.2- MESA to Oceania
9.2- MESA to Far East
26.1- Intra MESA
17.2- MESA to North America
27
Market Information
WWA has started direct service on below sectors
INMAA - AUSYD –T/T – 35 Days – Weekly Sailing
INMAA – AUMEL –T/T – 30 Days – Weekly Sailing
WWA has started direct service on below sector
INMAA - IDJKT –T/T – 11 Days – Weekly Sailing
IINCOK – KRPUS – T/T - 30 Days – Weekly Sailing
INDEL – CNSHA – T/T - 17 Days – Weekly Sailing
.WWA has started direct service on below sector
INDEL - LKCBM –T/T – 3 Days – Weekly Sailing
Due to Red Sea Situation, Carriers have implemented Surcharges / GRI / PSS
Capacity is less due to port omissions and blank sailing
AE to Jeddah- Co-loaders are rerouting via Dammam port and bonded truck movement from Dammam to Jeddah. Customs clearance point for the
consignee will be SAJED. T/T slightly increased
WWA has started direct service on below sector
INMAA - CATOR –T/T – 27 Days – Weekly Sailing
 THINKING AHEAD – MOVING FORWARD
LCL Market Update
Trade Lane
10.2- Africa to Far East
28.1- Intra Africa
03.2- MESA to Europe
17.2- MESA to North America
18.2- MESA to Latin America
26.1- Intra MESA
28
Market Information
Icargo has started direct service on below trade lanes
Durban to Singapore – T/T of 15 Days
Johannesburg to Singapore – T/T of 17 Days
Port congestion in West African ports continues to be experienced, leading to increased delays and affecting overall transit
times published on our services.
South Africa continuous to experience energy crises. Load shedding has impact on production facilities.
South Africa finance minister announces Tax rebates to encourage business and households to install renewable energy
sources (such as Solar power).
WWA has started direct sailing for below sectors:-
INDEL to GBLON & GBSOU with a T/T of 21 Days
INMAA to FRLEH – with a T/T of 33 Days
INMAA to GBLON & GBSOU with a T/T of 26 Days
INNSA to CZPRG with a T/T of 33 Days
Ecu has started direct Sailing from Nhava Sheva to Tunis – T/T 30 days, wef Nov 2023
WWA has started direct sailing from BDCGP to CAMTR with a T/T of 48 Days
WWA has started direct sailing from INNSA to DOCAU with a T/T of 29 Days
 THINKING AHEAD – MOVING FORWARD 29

Hellmann Worldwide Logistics