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It’s Happening Again: Maersk Halts Asia-Europe Loop Amid Global Slowdown

It’s Happening Again: Maersk Halts Asia-Europe Loop Amid Global Slowdown  

Growth in the world continues to collapse into late summer, so much so that Maersk and Mediterranean Shipping Company (MSC) had to “temporarily suspend” their AE2/Swan Asia to North Europe loop until mid-November, removing 20,000 twenty-foot equivalent unit (TEU) a week from trade, reported The Loadstar.

Collapsing demand and plunging shipping container rates have led to pain for carriers who sail their vessels along the route. This is the second time Maersk and MSC have suspended the circuit, and the last time this happened was last fall.

Maersk and MSC said it’s working hard to “balance its network to match reduced market demand for the upcoming [Chinese factory shutdown] Golden Week.”

Maersk and MSC said the AE2/Swan suspension would “help us to match capacity with the expected weaker demand for shipping services” from Asia to Europe.

Maersk and MSC said the service would resume “in line with demand pickup,” suggesting the suspension could be extended into 1H20 as global trade isn’t expected to pick up for the next six to eight months. 

Maersk and MSC adopted a similar strategy last year, suspending AE2/Swan Asia to North Europe loop from September to December, this was right around the time when stock markets across the world crashed from October to December, on fears the world economy was slowing. It just so happens that the global synchronized slowdown is much worse this year, likely the world has entered a manufacturing/trade recession in late summer 2019.

The suspension of AE2/Swan loop will see 12 17,800-20,500 TEU vessels idled for the next several months. 

The last time the AE2/Swan loop was halted, it was during the period when world stocks collapsed last fall.

Freightos freight data for China to Europe 40 ft shipping containers shows muted price recovery over the last several years.

 …click on the above link to read the rest of the article…

Munich Conference: “For The First Time In Decades We Are Facing Threat Of Nuclear Conflict”

Over the past fifty years, the Munich Security Conference (MSC) has traditionally reflected the current state of world military affairs. Each February, more than 450 senior decision-makers from around the globe descend into Munich, Germany, to discuss current and future security challenges.

And while there have been times in recent years when the MSC demonstrated signs of hope and optimism, none of that was evident this year. This year’s motto “To the Brink – and Back?”- which seems to be an accurate portrayal of the current geopolitical situations in most regions. After several days of senior decision-makers bickering back and forth, the negativity in the atmosphere only means one thing: A global conflict between nuclear superpowers is lingering.

“I was hoping when I opened this conference on Friday that, in concluding the conference, I would be able to say we can delete the question mark. In other words: ‘We are back from the brink,’” former German diplomat Wolfgang Ischinger said in closing remarks of the MSC. “I’m actually not sure we can say that,” he added.

The dangers of nuclear proliferation and talk of a “dire” global security situation dominated the security conference: from the ongoing war in eastern Ukraine, to U.S. allegations of Russia’s election-meddling, to territorial disputes between ex-Soviet republics, and even discussions about the escalating tensions between Israel and Iran: geopolitical doom and gloom was not short in all conversations during the meeting.

And, in the latest escalation, Bloomberg reports that the most fiery subject of the conference were the tensions surrounding Russia and the U.S over nuclear arms controls.

Addressing a conference hall in Munich packed with dignitaries, UN Secretary-General Antonio Guterres warned of the risks emanating from North Korea’s nuclear activities, which have ratcheted up tensions between Pyongyang and Washington.

…click on the above link to read the rest of the article…

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