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BAL re-enters liner trades with transpacific loader

Opportunistic Chinese shipowner BAL Container Line is making a selective comeback to the transpacific trade, after exiting liner shipping to focus on being a tonnage provider. According to container shipping consultancy Linerlytica, BAL has postponed chartering its new 14,400 teu BAL Athena to Maersk Line for the Gemini Asia-North Europe AE3 service. Instead, BAL will deploy the vessel on an ad hoc China-US West Coast service, from 24 July, calling at Ningbo, Shanghai, Long Beach, and Shanghai, to take advantage of booming transpacific spot rates. Maersk is expected to take on the BAL Athena once it completes its transpacific stint in early September. BAL, which previously operated a standalone China-Mexico service, stopped its independent liner operation in January 2023, when rates began normalising after the Covid-induced boom. On 3 June, LC Logistics, BAL's intermediate holding company, said in a Hong Kong Stock Exchange filing it had sold BAL Athena to China Development Bank Financial Leasing ,under a sale-and-leaseback transaction. It was one of two ships BAL ordered in June 2024; the other being sold to MSC in December for $170m, BAL realising a $25m profit. On Friday, the Shanghai Containerised Freight index showed the Shanghai-US West Coast rate had risen 9% from 26 June, to $6,630 per 40ft. The Shanghai-US East Coast rate gained 12%, to $8,296 per 40ft. However, Linerlytica said the SCFI figures did not reflect the real-time picture, adding: "Transpacific rates remain very firm, with carriers able to hold their 1 July GRIs. "Spot rates to the US west coast have soared above $7,000 per 40 ft while rates to the US east coast have risen to over $8,600, with the SCFI yet to reflect these higher rates," the analyst said. The early peak season has seen Shanghai-US West Coast rates surge fourfold from about $1,800 per 40ft in February.

Cathay Cargo points to new pharma market opportunities

A trend towards personalised door-to-door pharmaceutical shipments could increase demand for airfreight transportation, finds Cathay Cargo. In the US, personalised door-to-door shipments in some treatment areas are starting to take place. particularly with CGT (cell and gene therapies), noted Toby Griffiths, head of cargo global sales & customer solutions at the airline. "This represents a potentially material industry shift, leading to an even more complex and diverse end-to-end supply chain," said Griffiths in Cathay Cargo's Cargo Pulse newsletter. "With some of these products being high-value and highly time-sensitive, there will always be a requirement of air freight over longer distances." Some medicines have a shelf life of just days, and shipments of such products will depend on express service and precise temperature control. If this trend expands globally, it could increase market opportunities for the air cargo industry and carriers, suggests Griffiths. "If this is starting to happen in the US now, we need to start thinking what it might look like globally in five years," he said. Currently, many pharmaceutical flows originate in Europe and the US. Griffiths points out: "Our brand recognition is stronger in Asia than in these places. But we have a strong pharma product and a robust network behind us." In comparison to use of airfreight for door-to-door pharmaceutical shipments, advances in passive technology, along with cost considerations, have led over the counter pharmaceutical types to shift to ocean freight, pointed out John Lee, regional manager - healthcare vertical, North Asia, for Expeditors. "If we're talking about OTC [over the counter], then this goes by sea mostly," says Lee. "Modal selection is becoming more segmented, with ocean freight supporting certain products, while air remains critical for time- and temperature-sensitive shipments. But if we're looking at innovative, high-end drugs, most will look at air, because a lot of products have a very short shelf life."

WiseTech defends DSV relationship, as CargoWise volumes rise 20%

In what has been a troubled week, WiseTech Global is seeking to reassure investors over its relationship with DSV, revealing that CargoWise transaction volumes with the world's largest freight forwarder have increased by some 20% over the past six months. The announcement follows DSV's confirmation earlier this year that Tango, developed following its acquisition of DB Schenker, is intended to become its strategic operating platform. In an Australian Stock Exchange announcement issued today, the software provider said DSV remained an "active WiseTech customer", with the increase in transaction volumes following the post-acquisition integration of DB Schenker. User numbers had increased by about 3% over the same period, while the companies remained committed under an existing contract until September 2028, including a "substantial financial commitment", it said. The parties were also discussing "potential additional collaboration opportunities", including beyond 2028. The announcement is the first time WiseTech has publicly responded to reports that DSV intends to migrate from CargoWise in favour of its in-house platforms, developed following its acquisition of Schenker. However, rather than addressing DSV's long-term technology roadmap directly, WiseTech focused on the current commercial relationship. "During my recent meeting in Denmark with DSV CEO Jens Lund and his leadership team, I reiterated that we deeply value our long-standing relationship with DSV and remain committed to supporting its business and identifying opportunities to deliver additional value over time," said chief executive Zubin Appoo. He also argued that CargoWise's scale and complexity made it difficult to replace. "CargoWise's deployment, within our large global freight forwarders, can take between five and seven years to roll out and extract all available synergies," he said, citing the system's extensive carrier, customs and port integrations, complex customer interfaces, and broad functional capabilities. He added: "CargoWise's efficiency and execution synergies are substantial... making it very sticky and hard to replace... We expect any changes to be long-term and very gradual." The increase in transaction volumes appears closely linked to DSV's integration of Schenker. In its latest quarterly results, DSV said more than 50 countries had either completed integration or were in the process of being integrated, with Germany - the largest and most complex operation - beginning integration of its Air & Sea business in March. The company also reported air freight volumes up 55% and sea freight volumes up 50% year on year, driven primarily by the contribution from Schenker. The Danish forwarder added that it was consolidating its air and sea networks with Schenker's, while continuing to streamline its transport management systems and broader technology landscape. Taken together, the figures suggest the growth in CargoWise transactions is likely to reflect a greater proportion of the enlarged DSV/Schenker business being processed through the platform during the integration, rather than necessarily signalling a change in DSV's longer-term strategy. Mr Appoo also emphasised the long history between the companies, noting that CargoWise had supported DSV since its rollout began in 2007, and that the partnership had evolved over nearly two decades. He said CargoWise had "played an important role in supporting DSV's world-class operational efficiency and proven acquisition integration capability", while adding that DSV's "skillful use of CargoWise has contributed to WiseTech's own progression as a leading global logistics technology provider". WiseTech declined to answer questions from The Loadstar, citing a pre-results "quiet period" - despite issuing an announcement to ASX - just days after co-founder Richard White stepped down as chair, remaining on the board as chief innovation officer. Mr White said the move was intended to remove the distraction caused by "recent personal media attention", which he said had the potential to encourage short-selling of the company's shares. He again "strenuously and unequivocally" denied allegations made against him, while the board said it remained focused on succession planning and governance. Against that backdrop, today's statement appears aimed at reassuring investors that one of WiseTech's largest customer relationships remains intact, even as DSV continues its integration of Schenker and pursues its longer-term technology plans. DSV has been approached for comment.