Skip to main content


Quality journalism requires investment. Please use the link below when sharing this article with others. 

SeaIntel: Transatlantic will be next victim of instability

The Transatlantic has till now been spared the container carriers' cascading of ships. But it will become increasingly difficult for carriers to find trades for the ships, and this increases the risks that the Transatlantic will be hit in 2015, says Lars Jensen, partner and CEO, SeaIntel.

Published 31.12.14 at 12:10

The unstable container market will likely spread to more trades during 2015, Lars Jensen, partner and CEO of SeaIntel, tells ShippingWatch in a comment on the past year. In recent months, container carriers have attempted to increase the rates by implementing general rate increases (GRI), some of which have been successful though most of them were accompanied by a subsequent slide - and quite often a significant slide.

In addition to rate increases, carriers are trying to control the massive overcapacity of vessels by canceling sailings, a move that could boost a subsequent rate increase. 

But the fundamental problem remains, namely that there are far too many ships in the market - and this could now impact trades that have previously been spared, says Lars Jensen:

The Transatlantic will be next

"The rate increases are quickly washed over by subsequent rate slides, and this is a pattern that's spreading like ripples in the water to more and more trades around the world. When they try to control it on Asia-Europe, for instance, they just push the ships onto other trades. And if we look at 2015 we're seeing the same pattern. We will see an increasing number of ships pushed to these trades. One thing we're worried about is the Transatlantic," he says.

Unlike many other trades, the Transatlantic has till now not been subjected to cascading, where carriers "throw" big ships onto other services when they take delivery of new ultra-large ships - as seen on Asia-Europe, for instance, with Maersk Line's Triple-E vessels. 

This means that the Transatlantic has been a fairly stable market so far.

"The problem here is that these are some fairly small ships of 4,500 teu on average, and as it becomes increasingly difficult for carriers to find places where they can throw their 6,000-8,000 teu vessels, there's a risk that some carriers might push these ships to the Atlantic,"
he explains, adding that there is a significant chance of this happening.

The nightmare scenario

This in itself is not necessarily a problem. It is possible to deploy bigger ships on routes that traditionally operate with smaller ships if the carriers also reduce the number of weekly sailings.

"We just haven't seen carriers do that on other trades when performing this stunt," says Lars Jensen.

He refers to the "nightmare scenario" on the route from Asia to the East Coast of South America, as this trade took on some major ships without shutting down services, which according to Lars Jensen means that the rates have dropped significantly and that the trade has been plagued by an enormous instability as has also been the case on Asia-Europe and Asia-Pacific. And there have been numerous reactions to the unstable markets. Maersk Line announced recently that the carrier will reduce its capacity between the US and East Asia.

"The business climate on the Pacific has been challenging over the last decade, and the combined region has produced unprofitable results in nine of the past ten years, which makes some observers question the region's long-term health," said the carrier in its newsletter.

SeaIntel: The 10 worst container trades in 2014

"The long-term downward pressure on profitability on the Pacific represents a serious risk for the service level. We will not take the lead in this process, but we expect that the Transpacific Stabilization Agreement will handle this challenge to the benefit of all stakeholders."

Instability on the major routes is typically caused by overcapacity, says Lars Jensen:

"This leads to these very unstable markets with massive rate fluctuations and rapid rate slides. The Transatlantic has fortunately been spared these troubles in recent years because carriers haven't cascaded a lot of tonnage onto this trade."

Popular posts from this blog


While "Flavor" is very subjective, and each country that grows mangoes is very nationalistic, these are the mango varieties that are the most sought after around the world because of sweetnesss (Brix) and demand.

The Chaunsa has a Brix rating in the 22 degree level which is unheard of!
Carabao claims to be the sweetest mango in the world and was able to register this in the Guiness book of world records.
Perhaps it is time for a GLOBAL taste test ???

In alphabetical order by Country....



Alphonso (mango)
From Wikipedia, the free encyclopedia

Alphonso (हापुस Haapoos in Marathi, હાફુસ in Gujarati, ಆಪೂಸ್ Aapoos in Kannada) is a mango cultivar that is considered by many[who?] to be one of the best in terms of sweetness, richness and flavor. 

It has considerable shelf life of a week after it is ripe making it exportable. 

It is also one of the most expensive kinds of mango and is grown mainly in Kokan region of western India.

 It is in season April through May and the fruit wei…

Mangoes date back 65 million years according to research ...

Experts at the Birbal Sahni Institute of Palaeobotany (BSIP) here have traced the origin of mango to the hills of Meghalaya, India from a 65 million year-old fossil of a mango leaf. 

The earlier fossil records of mango (Mangifera indica) from the Northeast and elsewhere were 25 to 30 million years old. The 'carbonized leaf fossil' from Damalgiri area of Meghalaya hills, believed to be a mango tree from the peninsular India, was found by Dr R. C. Mehrotra, senior scientist, BSIP and his colleagues. 

After careful analysis of the fossil of the mango leaf and leaves of modern plants, the BISP scientist found many of the fossil leaf characters to be similar to mangifera.

An extensive study of the anatomy and morphology of several modern-day species of the genus mangifera with the fossil samples had reinforced the concept that its centre of origin is Northeast India, from where it spread into neighbouring areas, says Dr. Mehrotra. 

The genus is believed to have disseminated into neighb…

DHL (INDIA) makes gifting mangoes as easy as 1-2-3-....

Gifting mangoes is now easy with DHL
Announcement / Corporate

 May 19, 2011, 14:04 IST

Come this summer pamper your loved ones abroad with a box of delicious mangoes through DHL’s Express Easy Mango service, a unique one-stop-shop and hassle-free service for gifting mangoes all across the world.

This unique service by DHL Express, the world’s leading express company, allows customers to send mangoes from India across the world to the following countries Belgium, Canada, Czech Republic, Germany, Greece, Hungary, Hong Kong, Italy, Luxemburg, Maldives, Netherlands, Norway, Oman, Qatar Singapore, Switzerland and Sweden.

Mangoes can be availed of free of cost by merely paying for the Air Express service. In addition, DHL Express assists customers with the necessary paperwork along with procurement of quality-grade Alphonso mangoes.

Commenting on the new service, Mr. R.S Subramanian, Country Head, DHL Express India said: “With the advent of the mango season, it is no wonder that DHL Express Ea…