Shipping

Dockworkers unpack lasting weak trade links

1 Oct 2024

An extended strike by 45,000 US longshoremen threatens to cost the economy $5 bln daily and snarl supply chains. Government intervention would rattle relations with unions just ahead of the election. The clash illustrates the limits of onshoring, nearshoring and friendshoring.

Germany gives DSV a sweet deal on freight takeover

12 Sep 2024

The Danish group will acquire Schenker, the logistics arm of indebted German railway operator Deutsche Bahn, for 14 bln euros, beating a higher CVC offer. Berlin may be hoping that an industry player will be a more stable owner. But DSV’s share price jump shows it got a bargain.

Shipping rates yet to signal a calmer Middle East

22 Aug 2024

The US is pushing hard for an Israel-Hamas peace deal. But shipping executives expect rates to stay high this year as vessels avoid the Red Sea. While only a rough gauge of regional tensions, the freight experts may be more accurate forecasters than ceasefire optimists.

Red Sea gives shipping an Uber-style price surge

24 Jun 2024

Container rates have spiked well above their level when Houthi attacks first shut the Suez Canal. Surging demand as exporters seek to get ahead of looming trade tariffs is one reason why. But that in turn would be easier to manage if traffic didn’t have to go round Africa.

Capital Calls: Green vehicles

3 Apr 2024

Concise views on global finance: French shipping and logistics heavyweight CMA CGM has acquired a 10% stake in Flexis, a joint venture set up by Volvo and Renault to develop electric vans in Europe.

Capital Calls: Maersk, SoftBank, Adyen

8 Feb 2024

Concise views on global finance: The Danish shipping giant’s shares fell 14% after it missed expectations and warned of years of earnings pain; the Japanese investment firm posted its first net profit in five quarters; the Dutch payment company is slowly recovering.

Red Sea delays are no panacea for European EVs

5 Feb 2024

Suez Canal blockages mean Chinese electric vehicles take longer to get to Europe. But these don’t look bad enough to close the price gap with EU rivals. The most likely upshot is a slower rate of domestic EV adoption, rather than a change in the competitive pecking order.

Shipping giants can withstand Red Sea crisis

30 Jan 2024

Houthi attacks near the Suez Canal are slowing global trade. In this Exchange podcast, Zvi Schreiber, CEO of shipping platform Freightos, discusses how the sector was caught by surprise, but excess container ships and more air cargo capacity are helping limit the immediate pain.

Red Sea oil tension may revive Russia-Saudi spat

22 Jan 2024

Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.

Global risk pile-up penetrates Davos bubble

18 Jan 2024

Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.

Prolonged Red Sea attacks can hurt global economy

11 Jan 2024

Freight costs are soaring as militants target ships on a crucial trade route. In this Viewsroom podcast, Breakingviews columnists debate how inflation could rise and which companies could suffer if the tensions aren’t resolved soon.

Red Sea windfall will only delay shippers’ pain

4 Jan 2024

Maersk and Hapag-Lloyd have gained some $18 bln in market value, as militant attacks shut the Suez Canal and caused freight rates to soar. Yet investor hopes for a lasting boost may be disappointed. And carriers will still face a reckoning from a weak economy and idle fleets.

Suez crisis may finally jolt Egypt out of stasis

20 Dec 2023

Cairo was wobbling even before militant attacks threatened its $9 bln of annual revenue from the Suez Canal. With inflation at 36%, re-elected President Abdel Fattah al-Sisi’s foreign aid needs are spiking. He will need to stop dawdling on reforms required by donors like the IMF.

New Red Sea blockage may be both longer and milder

19 Dec 2023

Militant attacks have forced groups from Maersk to BP to avoid the conduit for over 10% of world trade. Re-routing round Africa will hike fuel costs and could last six months. Yet weaker global demand relative to a six-day 2021 stoppage may limit the wider economic fallout.

Capital Calls: Paramount’s stricter streaming

3 Nov 2023

Concise views on global finance: The media stalwart’s shares popped 10% as boss Bob Bakish predicted that losses from its costly streaming push have topped out. But the company still faces a cutthroat market full of better-resourced rivals.

Capital Calls: Exxon’s $5 bln carbon-capture deal

13 Jul 2023

Concise views on global finance: The oil giant is using its own shares and paying a tiny premium to buy Denbury, the largest US carbon dioxide pipeline operator, in a greenish-looking transaction that mostly helps it pump more crude.

Sea giant MSC sets sail on erratic M&A journey

4 Jul 2023

After expanding into logistics and eyeing an airline, the maritime firm may buy a train operator for $6 bln. Diversification is key to countering a shipping downturn. MSC’s owner, the Aponte family, is right to deploy its ample cash reserves, but the bet may prove expensive.

Debt ballast slows cruise ships’ return

28 Jun 2023

Royal Caribbean will launch the world’s biggest ship next year, and the firm shouldn’t have trouble finding passengers. Operating profit could surge well beyond pre-pandemic levels too. But debt larded on during lockdowns will continue to weigh down cruise companies.

Shipping tax could yield $100 bln climate windfall

12 Jun 2023

The industry emits almost 3% of the world’s greenhouse gases. It’s also largely escaped taxation. A levy on emissions would encourage shippers to go green, while raising money to help poorer countries. Key meetings in the next month are the time to push the idea, says Hugo Dixon.

Indian ports will test tycoons’ safe harbour

2 Jun 2023

Sajjan Jindal’s JSW is floating India’s second-largest commercial operator. It’s less profitable than Gautam Adani’s $20 bln business where auditor Deloitte is waving a flag. In a global industry with few listed giants, appetite for this small deal will deliver its own verdict.