News Highlights week: 09 - 2023

Israeli carrier ZIM and Vietnamese operator Hai An Transport & Stevedoring JSC (HATS) today announced the launch of Lotus Link, a joint venture between the two carriers that will operate domestic and regional shipping services in Vietnam. 
Haiphong-headquartered Lotus Link plans to launch its first service in March deploying Vietnamese-flagged vessels to serve major Vietnamese ports (Ho Chi Minh City, Danang and Haiphong) as well as smaller domestic ports and its hinterland, where direct access to international and domestic shipping services is limited. In addition, the newly established company will provide landside logistics services as well. 

Hai An Transport & Stevedoring JSC was established in 2009 and is listed on the Ho Chi Minh Stock Exchange. The Haiphong-based company currently operates a fleet of five Vietnamese-flagged ships with sizes ranging from 800 to 1,700 teu serving domestic Vietnamese routes and Vietnam – South China service. 
Besides operating ships, Hai An Transport & Stevedoring JSC is also engaged in a wide range of marine and logistics-related activities, including port and terminal operations, offshore services, shipping agency, container depot operations and warehousing.
Charter market: demand soars, rates expected to follow
As expected, demand is picking up in the container charter market, as Asia has gone back to work after the traditional Lunar New Year celebrations. The rise in activity is having a positive effect on the fleet of spot ships, which has fallen from twenty-seven to nineteen units in the last days. 
Most of the available tonnage is open in Asia while the Atlantic is sold out for nearly all sizes of ships. The shortage of vessels West of Suez is pushing up charter rates, which tend to firm up in that area more significantly than in Asia.
Overall, the continued shortage, or low supply, of prompt tonnage across most size segments bodes well for charter rates which, against a backdrop of traditionally high seasonal demand should continue to rise in the coming weeks.
However, Alphaliner remains cautious on the longer-term outlook of the market. Although the world economy might do better than expected, with the IMF having raised its grow forecast by 0.25% to 2.9% for 2023, consumers remain heavily impacted by a continued high inflation and interest rates which undermine spending power. The war in Ukraine meanwhile keeps energy prices high and volatile and remains a major threat due to its significant risks of escalation. 
Spot cargo rates continue in the meantime to fall on most routes, with the SCFI dropping below 1,000 points for the first time since July 2020, while contract rates are also plummeting. 
Finally, the colossal orderbook is like a sword of Damocles hanging over the market, with a raft of new ship deliveries in the next months inevitably triggering a return of overcapacity. On a brighter note, ship demolition is picking up speed, but a large portion of the existing fleet will have to be torched to avoid a possible cargo and charter rate bloodbath