Our global freight forwarding network keeps our customers freight moving across the world.

Zim the outlier as top carriers slash reliance on chartered tonnage

The world's largest container shipping lines are becoming less-reliant on chartered vessels - most of the top 10 carriers reducing their exposure significantly since the Covid-era freight boom. New analysis by Alphaliner shows the proportion of chartered capacity in the fleets of most major carriers has fallen since 2021-22, as record profits enabled the lines to invest heavily in newbuildings and second-hand tonnage. While a decade ago the operated fleets of the top 10 typically comprised 40%-70% chartered capacity, Alphaliner noted that the figure was now 18%-50%. Among the top five, chartered tonnage accounts for just 30% to 40% of deployed capacity. South Korea's HMM has made the biggest reduction. Its chartered fleet accounted for 56% of capacity in 2016, but is now less than 20%. Following the collapse of Hanjin, the South Korean government supported HMM's expansion as the flagship carrier, which included the acquisition of 59 newbuildings to date. CMA CGM recorded the second-largest decline, its chartered capacity falling from 67% of its fleet in 2016 to about 34% today. Much of the reduction came after the pandemic, when strong profits enabled the French carrier to invest heavily in owned tonnage, acquiring 160 second-hand containerships and delivery of 100 newbuildings. The carrier nevertheless remains a major user of non-operating owner (NOO) tonnage and continues to play an active role in the charter market. MSC has reduced its chartered share from 61% in 2016 to 36% today. Compared with the roughly 75% of its fleet on charter during Covid, the Geneva-based carrier has effectively halved its charter exposure over the past five years. It shifted decisively towards vessel ownership from late 2020, ordering 252 newbuildings and purchasing around 500 second-hand vessels. Its chartering activity subsequently collapsed, with only about 40 fixtures concluded this year, three to four times fewer than previously. Evergreen has cut its chartered share from 42% in 2016 to 28% today, following an investment programme that included 125 newbuildings ordered since 2021. Yang Ming's chartered exposure has fallen from 63% in 2016 to 50%. But Alphaliner flagged that the reductions had been less pronounced at Maersk, ONE, Cosco, and Hapag-Lloyd. About 38% of Maersk's operated fleet is now chartered, just seven percentage points below 2016 levels. The Danish carrier remains a major NOO customer and has concluded at least 130 fixtures this year. ONE and Cosco have both reduced their chartered share by 12%-13%, to approximately 53% and 40%, respectively. Hapag-Lloyd's ratio has fallen 15% over the past decade, to about 39%. Zim, however, remains the clear outlier, retaining an asset-light, charter-heavy model. Chartered vessels have represented between 85% and 98% of its deployed capacity over the past decade, while its 23-vessel orderbook is entirely chartered tonnage. That could change if Hapag-Lloyd's proposed acquisition goes ahead. Alphaliner also cautioned that the distinction between owned and chartered tonnage was becoming less clear. Long-term bareboat charters can include purchase options or obligations, meaning some vessels classified as chartered may effectively represent "delayed ownership". As a result, the actual proportion of capacity controlled through ownership may be higher than the headline figures suggest.

OceanX Radar: Logistics is a people thing; fuel fears; relentless rate rises

Another crazy week passed. Fuel prices moved up a notch again, which makes clear that things in the Middle East are getting worse rather than better. Even US VP Vance warns of a potential "worldwide energy crisis". And with the Houthies back in action, there is a second front on. However, so far no attacks on non-Saudi ships in the Red Sea - let's see how long that lasts. We continue muddling through the fog of uncertainty. Let's look at some ...

L'imad weighs up bid for cargo carrier Atlas Air

Abu Dhabi's L'imad Holding has emerged as one of the companies considering a bid for airfreight giant Atlas Air Worldwide Holdings. Quoting people familiar with the matter, Bloomberg last week reported that the sovereign investment platform is considering a bid in order to expand its presence in the logistics market. The bid is also driven by Abu Dhabi's efforts to provide alternatives to the Strait of Hormuz, which has been closed since the outbreak of the US-Iran war. The company is currently owned by private equity firm Apollo and Bloomberg's sources expect the company to be valued at around $10bn. The news that the freighter giant could be sold doesn't come as too much of a surprise. In December last year, reports emerged that Apollo was considering the potential sale of the company. At the time, the company was valued at around $12bn, including debts. An investor group led by US investor Apollo Global completed the purchase of Atlas Air Worldwide Holdings in March 2023 in a deal with an enterprise value of $5.2bn or an equity value of $2.9bn. Atlas Air Worldwide provides outsourced aircraft and aviation operating services and is the parent company of freighter operators Atlas Air and Polar Air Cargo and lessor Titan Aviation. Atlas claims its subsidiary companies operate the world's largest fleet of 747 freighter aircraft as well as 777 and 767 aircraft for domestic, regional and international cargo and passenger operations. It recently placed an order for 20 next-generation Airbus A350 freighters as it moves beyond a dedicated Boeing fleet. Services include ACMI, CMI, scheduled operations, charter operations and dry leasing. The sale comes as Atlas management has been suggesting a shortage of widebody freighters will hinder the air cargo industry over the coming 10 years and potentially beyond. If the prediction proves correct, Atlas would be in a good position to capitalise on the development given its large widebody fleet.