WEEK 34 MARKET UPDATE

MARIE MAERSK RESUMES VOYAGE WITH NO VISIBLE DAMAGE FROM CONTAINER FIRE
The company released two pictures taken on Friday, August 22, when a supply vessel reached the scene with additional firefighting equipment. There is no visible fire damage to any of the boxes aboard what appears to be a heavily laden vessel. The ship has a rated capacity of just over 19,000 TEU.“After an inspection of affected areas of the vessel and careful consideration of all aspects together with authorities and class, it was deemed safe that Marie Maersk resumes her eastbound voyage around Cape of Good Hope on Sunday. Her next port of destination is under final review, and we will inform as soon as it has been decided,” Maersk reported. Maersk reports that the external firefighting team will remain on board, and “special measures” have been put in place to ensure a safe journey. An intermediate stop might be implemented, Maersk said, depending on the optimal place for handling the damaged containers and to mitigate onward disruptions in its network. Contingencies are in place in case the planned journey needs to be revised en route. The company has not advised on the location of the boxes that were smoking or the nature of the cargo.

MSC CONTAINER SHIP CAPTAIN ARRESTED ON SUSPICION OF BEING DRUNK
The US Coast Guard Investigative Service arrested the Captain of the MSC Jubilee IX on 20 August on suspicion of operating a container ship while under the influence on 20 August at Terminal 5 in the Port of Seattle.The alarm was raised when a pilot boarded the vessel sailing into the Port of Seattle. A Puget Sound Pilot on board the MSC Jubilee IX reported to coast guard watchstanders that the Captain was exhibiting signs of intoxication. The vessel was operating by the pilot and First Mate for the transit from an anchorage near Everett, Washington, to Terminal 5 at the Port of Seattle, where it was boarded by agents from the Coast Guard Investigation Service. “Crews administered a field sobriety and breathalyser test to the Captain, which found that he was impaired more than six times the legal limit for commercial mariners,” USCG said.The Captain was taken to King County Jail, where charges were referred to the King County Prosecutor for “boating under the influence”.The vessel was detained by the Coast Guard until a relief Captain for the MSC Jubilee IX was confirmed. According to AIS data from Pole Star Global the container ship departed the Port of Seattle on 22 August bound for the Port of Prince Rupert in Canada.

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TARIFF CLARITY CAN’T SHORE UP FALLING OCEAN CONTAINER RATES
Container rates on the all-important Asia-to-U.S. trade routes continue to trend downward following a July surge fueled by shippers frontloading imports ahead of tariff increases.Another 90-day extension of the tariff truce between China and the United States into November likely won’t stimulate another import surge, said shipping consultant Freightos, in an update.The tariff pause wasn’t driven solely by economic demands; FreightWaves has learned that the information technology systems of U.S. Customs and Border Protection has been unable to keep up pace with the increased data requirements resulting from the on-again, off-again swings in U.S. tariff and trade policies. The charges start at $50 per net ton for Chinese-owned and -operated ships, and $18 per ton for non-Chinese operators of Chinese-built ships for each vessel calling at a U.S. port. The charges escalate over time. There are exemptions for empty vessels calling U.S. ports to load agricultural and other bulk exports.Freightos found trans-Atlantic rates essentially unchanged at $2,284 per FEU last week.“Not much freight impact is expected from the recent US-EU trade deal,” Levine noted, adding that auto tariff reductions have yet to take effect, and alcohol exports will not be exempted.

APM TERMINALS SEALS $1BN PORTS DEAL IN INDIA
Maersk’s port operating arm, APM Terminals, has signed a memorandum of understanding with India’s Andhra Pradesh Maritime Board to invest 9,000 crore (around $1.1bn) in the development of three key ports in the state. The agreement, inked in the presence of chief minister N Chandrababu Naidu, covers the upgrading of the Ramayapatnam, Machilipatnam and Mulapeta ports, along with supporting infrastructure. APM Terminals will bring in modern cargo handling systems, develop new terminals, and take charge of operations under the deal. Earlier this year, Maersk signed a separate memorandum with Cochin Shipyard to explore opportunities in ship repair and shipbuilding, with the first Maersk vessel expected to undergo repairs there in 2025. The move aligns with India’s push to climb into the world’s top 10 maritime nations by 2030 and top five by 2047.India has attracted other global carriers, with MSC, the world’s largest boxship operator, also eyeing multiple opportunities in the country, from container terminals and shipbuilding to maintenance, container manufacturing and vessel partnerships, as well as policy reforms aimed at boosting competitiveness.

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