Hapag Lloyd CEO warns that shipping rates are at “unsustainable levels”: Container shipping freight rates have fallen to unsustainable levels,Hapag Lloyd CEO Rolf Habben Jansen said in a call with journalists, according to Reuters. There is an urgent need for rates to rebound and that some spot rates are “below cost,” Habben Jansen said. “In the long run, that typically does not hold. Whenever everything becomes cash negative, then people take the measures that need to be taken to settle rates slightly above cost,” he added. This is happening alongside an increase in transport expenses, which has seen them rise due to inflation, fuel and labor costs, Habben Jansen added. Hapag Lloyd witnessed a 3% y-o-y increase in transport expenses during 1Q 2023, reaching USD 1.3k per TEU.

Where are rates at? The Shanghai containerised freight index hit a low point in 2Q 2023 and has witnessed minimal fluctuation since then. Habben Jansen anticipates rates to eventually stabilize at higher levels, ranging between c.USD 1.3k-1.8k per TEU. However, even at these forecasted levels, rates would still be 25% higher than pre-pandemic levels.

Seafarers in demand as officer deficit reaches 9% — its highest in 17 years: A shortage in the supply of seafarer officers has reached a record high with analysts predicting it to last at least five more years, Hellenic Shipping News reported, citing global shipping consultancy firm Drewry. The availability gap has widened to a deficit that equates to 9% of the global pool, up from last year’s 5%. The tightening in the labor market — which is also causing manning cost inflation — is attributed to the trickling effects of covid-19 and laborer wellbeing, as well as the eruption of the Russia-Ukraine war, which limited the number of Russian and Ukrainian seafarers, according to Drewry.

Maersk to expand use of Microsoft Azure for digitization + decarbonization: Logistics giant AP Moller-Maersk will expand its use of Microsoft Azure as its cloud platform to accelerate digitization, according to a statement. The expansion will support Maersk’s transformation strategy by building scalable platforms to boost organic and inorganic growth. Maersk will also benefit from the use of machine learning and data analytics, which should give the company greater insights, the statement said. The collaboration will see the two cooperate across three core pillars: technology, ocean and logistics, and decarbonization.

Russian oil exporters have nearly doubled their usage of aging shipsfollowing the Ukraine war, with the average share carried by ships more than 15 years old reaching 62.6% since December, the Financial Timesreports. This increase is raising concerns within the shipping industry regarding the safety of workers on old and unfit ships and the potential environmental hazards they pose, such as the risk of oil spills. This, coupled with the increasing size of Russia’s shadow fleet, is also raising concerns that a big chunk of the world’s fleet will be inconsistent with international standards, according to industry figures.

Aging ships are rising as a share of the world’s ships: Braemar expects the share of ships aged 20 years or more to increase to 16% by 2025.

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