OCEAN FREIGHT MARKET UPDATE

Transcription

1 DHL Global Forwarding, Freight OCEAN FREIGHT MARKET UPDATE February

2 Contents TOPIC OF THE MONTH U.S. Truck Power Shortages HIGH LEVEL DEVELOPMENT MARKET OUTLOOK Freight Rates and Volume Development ECONOMIC OUTLOOK & DEMAND DEVELOPMENT CAPACITY DEVELOPMENT CARRIERS REGULATIONS? DID YOU KNOW? Containership Deliveries, Deletions and Orders Top 15 Carriers' Operated Capacity Growth BACK-UP 2

3 Topic of the Month U.S. Truck Power Shortages U.S. Truck Power Capacity/Shortages (major factors impacting truck capacity) Driver shortage due to the recent ELD mandate. Drivers are no longer able to exceed their hours of operation limit Infrastructure and congestion Increasing cost of operations and labor Inclement weather conditions in the Central and Southeast regions caused terminal and road closures, creating a backlog for the port and rail terminal affected Limited free time at the US inland rail ramps Chassis shortage on a nationwide basis. There are more coming out and less going back in The Electronic Logging Device (ELD) Factor The ELD rule was mandated by congress and is intended to help create a safer work environment for drivers, and the public. It also makes it easier and faster to accurately track, manage, and share records of on-duty status data. An ELD synchronizes with a vehicle engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording. What is the impact? With the current congestion at the terminals, pre-pulls could be required or port detention could be implemented in areas where currently not assessed by the motor carriers. Driver free time could be reduced and the cost-per-hour increased once in detention. Layover charges or tiered rating could be implemented on drayage moves 250 miles or higher. Increased utilization of the inland rail terminals, bringing a heavier volume of local drayage What can be done to reduce impact? Ensure customs clearance is done at the port of discharge vs. railing in-bond Understand how the drivers hours and the ELD mandate could affect your shipment deliveries Ensure freight payment and the Original Bill of Lading are submitted as early as possible Divide the volume on multiple sailings and if on same vessel on different Bill Of Ladings Offer flexible loading & unloading timeslots for drivers 24/7 if possible Provide quicker loading & unloading turn around eg by having freight staged ready for pick up, or labor ready for unloading Working directly with our centrally managed drayage partner network on merchant haulage options for pick-ups and deliveries to gain better control of our inland drayage nationwide Source: DGF 3

4 High Level Market Development Supply and Demand ECONOMIC OUTLOOK 1) GDP GROWTH BY REGION 2017F 2018F 2019F 2020F 2021F CAGR ( ) EURO 2.3% 2.1% 1.8% 1.8% 1.8% 1.9% MEA 3.1% 3.3% 3.6% 3.8% 4.7% 3.6% AMER 2.2% 2.4% 2.4% 2.3% 2.2% 2.3% ASPA 5.0% 4.9% 4.7% 4.6% 4.8% 4.8% WORLD CONTAINER INDEX (WCI) 2) Q1 16 Q2 Q3 Q1 17 Q2 Q3 Q1 18 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Demand Growth % DGF World 3.2% 3.2% 3.1% 3.1% 3.1% 3.1% Supply Growth % F 2019F 2020F 2021F SUPPLY/DEMAND GROWTH RATE (ANNUALIZED), IN % 1 Source: 1)real GDP, Global Insight, Copyright IHS, Q All rights reserved; 2) Drewry Container Forecaster Forecast global supply-demand balance; 3) Shanghai Shipping Exchange, in USD/20ft container and USD/40ft container for US routes, 15 routes from Shanghai, 4) Global Insight, Drewry, 5) Bunker Index, in USD/metric ton, Bunker Index MGO (BIX MGO) is the Average Global Bunker Price for all marine gasoil (MGO) port prices published on the Bunker Index website, Bunker Index 380 CST (BIX 380) is the Average Global Bunker Price for all 380 centistoke (cst) port prices published on the Bunker Index website SHANGHAI CONTAINERIZED FREIGHT INDEX (SCFI) 3) BUNKER PRICE INDEX 5) BIX 380 BIX MGO Q1 16 Q1 16 Q2 Q3 Q1 17 Q2 Q3 Q1 17 Q2 Q2 Q3 Q3 Q1 18 Q1 18 4

5 Market Outlook February 2018 Major Trades Rates from Asia to North America are raising ahead of contract season. EXPORT REGION IMPORT REGION CAPACITY RATE EURO AMNO = + AMLA = = ASPA = - MENAT = = SSA = = EXPORT REGION IMPORT REGION CAPACITY RATE AMLA AMNO = = ASPA = = EURO = = MENAT = = SSA = = AMNO AMLA = + ASPA = = ASPA ASPA AMNO = + EURO - = AMLA + - MENAT = + EURO = + SSA = = MENAT = + KEY Strong Increase ++ Moderate Increase + No Change = Moderate Janline - Strong Janline - - OCEANIA - = Source: DGF 5

6 Market Outlook February 2018 Ocean Freight Rates Major Trades Market outlook on smaller trades available in the back-up O C E A N F R E I G H T R A T E S O U T L O O K ASPA EURO EURO ASPA & MEA ASPA AMLA ASPA AMNO EURO AMNO ASPA MENAT ASPA ASPA AMNO EURO The overall space situation is getting tight before the CNY. An extensive blank sailing program is in place by all alliances and will start from wk7 onwards Part of the carriers are trying to keep rates stable; even pushing upwards from certain areas. Others are out with reductions. Translated to overall volume, it means ongoing slow decay, though. Rates to ECSA came down due to 5 extra loaders in Jan 2018 and also PIL entry into this trade. But rates are expected to increase from Feb 2018, for CNY rush. No blank sailing announcement so far to ECSA. But for WCSA/MX, there are numerous blank sailing for CNY and shared with internal stake holders. Full ship situation till CNY. Most carriers are facing stronger rollovers into USEC. All the Alliances have also announced their blank sailings from week 8 to 10. Ocean rates are stable but US haulage rates are on the up rise due to ELD and shortage. Pre CNY rush is now ongoing. Carriers has successfully pull through some mitigated GRI into MENAT lanes. Expected this to continue, with more upcoming blank sailings in February. Space ex China to India and Pakistan is expected to be extremely tight as almost 80% of the services in the market will be blanked from week 7 to week 9 (12 Feb-28 Feb). Various blank sailings have also been planned on the pure IA trade, for those same weeks.the congestion at Chittagong will continue because of high container yard utilisation. Delays are to be expected. USEC capacity will decrease significantly week 5 & 7 where as USWC capacity will increase drastically week 7 & 9 Rates remain stable Source: DGF 6

7 Economic Outlook & Demand Development Wrapping up 2017 and Looking at 2018 EURO AMNO ASPA EMERGING MARKETS DEMAND DEVELOPMENT European growth projection has been raised to 2.3% in 2017 and 2.0% in 2018, mainly driven by a stronger Germany. Continuously improving labor markets, decent global demand, improving financial stability and currently elevated business and consumer confidence support the growth. US economy has proven resilient despite two devastating hurricanes in the third quarter. Euro has gained 10% against US dollar since January 2017, while Canadian dollar remained at relatively stable level. Therefore, the regional forecast rose to 2.3% in In relative terms, the Asia-Pacific region continues to lead global growth. The region is projected to expand 5.0% in 2017 and 4.9% in 2018, considerably stronger than the world s GDP growth rate average of 3.2%. AMLA: Regional GDP forecast improved for 2017 to 1.5%, as Argentina and Brazil came out of recession. Latin America's GDP growth will continue on a soft accele-ration path, reaching 2.2% in Brazilian economy is expec-ted to expand modestly in the near term, while Mexican outlook is clouded by tight fiscal and monetary policies and prolonged renegotiation of NAFTA. MEA: Economic outlook slightly brightened for Growth in 2018 is expected to be above 3%. On the downside, Qatar s political rift with the GC3+1 (Saudi Arabia, the UAE, Bahrain, and Egypt) as well as IS and conflicts in Syria, Yemen, and Libya pose risk to the regional outlook European exports forecast for 2017 improved to 4.5% - Eurozone Manufacturing PMI was above 60 points in November 2017 and at its best reading apart from April 2000 s series-record high. USA: On the heels of improved global demand and the depreciation of the U.S. dollar, exports are forecasted to grow 2.9% in 2017 and 3.6% in Manufacturing PMI has leveled out in November 2017, but remains strong heading into the end of the year ASPA: 2017 and 2018 export forecasts for major Asian economies have brightened. Chinese manufacturing PMIs signaled expansion in November. Japanese Manufacturing PMI continued expansion in November 2017, however, continuously strong growth of incoming orders put pressure on supply chains AMLA: Brazil manufacturing PMI signaled a solid improvement in November Mexican PMI signaled contraction in October 2017 as a result of the earthquakes and volatile exchange rate, but expanded again in November. MEA: Export outlook was revised down for 2017 and 2018 to 3.4% and 3.6% respectively. UAE PMI signaled strong expansion in November. Source: DPDHL Group Macroeconomic Outlook, Global Executive Summary, IHS, Purchasing Manager Index Manufacturing, 7

8 Capacity Development C A P A C I T Y D E V E L O P M E N T The global containership fleet is expected to grow by 5.6% this year, after taking into account projected vessel deliveries, deferrals and scrapping, to reach Mteu by the end of The pace of the container fleet growth is accelerating from 1.8%, recorded in 2016, and 3.7% in Total new containership capacity due to be delivered in 2018 is expected to reach 1.5 Mteu. More than 50% of this is expected to be made up of ULCS from 14,000 teu to 21,000 teu mostly scheduled for delivery in the first half of the year, with over 1.2Mteu due before the end of June. Several carriers have however taken action by deferring delivers from 2018 to the next year. Megamax Containership deliveries in Jan 2018 : MARSEILLE MAERSK and MANCHESTER MAERSK EEE-Mk II -class ships (20,568 teu) are delivered to Maersk early Jan 18. Both vessels have joined the Maersk-MSC Far East Europe AE-7/Condor loop. OOCL INDONESIA (21,413 teu) is delivered on 18 Jan 18 to OOCL and joins OCEAN Alliance Asia-Europe NEU1 loop COSCO SHIPPING ARIES (19,273 teu) is delivered to Cosco Shipping and joins the OCEAN Alliance Asia-Europe NEU2 loop When the OCEAN Alliance and THE Alliance announced their new 2018 service networks no new Far East Europe or Far East North America loops were announced. Instead, the expected in crease in capacity will be achieved through the injection of ULCS new buildings. On top of 5 extra loaders in January (CMA, COSCO, Evergreen, 2 Hamburg Sued/Maersk), PIL has launched its own Far East ECSA string in Jan 18, adding over 5% to the Far East ECSA trade capacity. Spot freight rates have already fallen since the end of Dec. These moves come ahead of a major revamp of the trade, resulting from the withdrawal of Hamburg Sued from the Multicarrier Loop 2 vessel sharing agreement that was demanded by Chinese regulators as part of the conditions for its acquisition by Maersk. Shanghai, the world s biggest port, was the first-ever port to break the 40 mteu barrier in Dec 17, representing a year-on-year growth of 8.3%. Second ranked port of Singapore is expected to reach a total of 33.7 mteu in The idle containership fleet of vessels with > 500 TEU has fallen to 99 ships as at 8 Jan 18, down significantly compared to the same time last year when 351 ships were unemployed. Source: Alphaliner, carriers 8

9 Carriers Drewry s Altman Z-Score as of December 2017 Company Period Period Ended Net Sales Assets Liabilities Book Value of Equity Retained Earnings Z-Score Total Current Total Current OOIL (parent of OOCL) 6 months 30. Jun 17 million US$ 2' '693 2'783 4'592 5'101 1'437 4' AP Moller-Maersk 9 months 30. Sep 17 million US$ 22' '260 25'305 30'954 29'306 14'909 26' CMA CGM 9 months 30. Sep 17 million US$ 15'633 1'291 19'712 6'140 5'612 14'099 5'801 4' Wan Hai 9 months 30. Sep 17 million NT$ 44'970 2'480 75'688 30'509 34'074 41'614 20'588 11' NYK group 6 months 30. Sep 17 billion Yen 1' ' ' K Line group 6 months 30. Sep 17 billion Yen ' China Cosco (parent of Cosco Container Lines) (1) 9 months 30. Sep 17 million RMB 67'599 4' '443 45'728 42'981 89'462 42'854 32' Evergreen Marine Corp 9 months 30. Sep 17 million NT$ 113'068 5' '384 62'178 59' '359 45'053 11' MOL group 6 months 30. Sep 17 billion Yen ' ' Hapag-Lloyd Holding 9 months 30. Sep 17 million euro 7' '817 2'840 5'780 10'037 3'323 3' Pacific International Lines 6 months 30. Jun 17 million US$ 1' '698 1'290 1'804 3'894 1'907 1' Yang Ming 9 months 30. Sep 17 million NT$ 99' '096 24'696 17' '426 44'536-1' Hyundai Merchant Marine 9 months 30. Sep 17 billion Won 3' '442 1' ' ' Zim 9 months 30. Sep 17 million US$ 2' ' ' ' None of the carriers manage to reach the > 2.99 safe zone, and only OOIL reaches the caution zone, all the remaining carriers are in the distress zone. Unit The Z-score is a statistical analysis to predict a company s probability of failure in the next 2 years, using data from the company s financial statement. A Z-score 2.99 = company is safe. A Z-score between 1.8 and 2.99 = exercise caution ( grey zone ). A Z-score 1.8 = higher risk of the company going bankrupt ( distress zone ). All indications based on these financial figures only. EBIT 9

10 Carriers C A R R I E R S NYK, MOL and K Line have announced in a joint statement on 18 Jan 18 that their new joint venture, Ocean Network Express (ONE), has received all necessary merger approvals from local competition authorities, after clearing the last regulatory hurdle, with the South Africa Competition Tribunal granting their conditional approval. South Africa was the last country to approve the merger as all other jurisdictions had already approved the move as of the end of June The merger was first announced on 31 October 16 and the new company is expected to start its operations on 1 Apr 18, as initially planned. Maersk and IBM have announced their intentions to form a Blockchain-based JV. The aim of the new company will be to offer a jointly developed global trade digitization platform built on open standards and ambitiously designed for use by the entire global shipping industry, addressing the need for more transparency and simplicity in the movement of goods across borders and trading zones. Parties that have piloted the platform include DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, the Customs Administration of the Netherlands and U.S. Customs and Border Protection. They also have received interest from General Motors, Procter & Gamble and Agility. The success of the platform will depend on whether Maersk and IBM can convince the entire supply chain ecosystem, including shippers, freight forwarders, ocean carriers, ports an customs authorities, to sign up. If they do not, the entire project will fall down. Source: Alphaliner, Ti, carriers 10

11 Regulations R E G U L A T I O N S GST Amendments on Export shipment out of India The Government of India Notification no. 2/2018 Central Tax (Rate) dated 25 January 2018, has exempted GST on freight charges for all shipments originating from India, but same will be applicable on all origin charges e.g. custom clearance, transportation etc. 1. To exempt the service by way of transportation of goods from India to a place outside India by air 2. To exempt the service by way of transportation of goods from India to a place outside India by sea Post this notification, received 25 January 2018, GST is exempted only on Freight Charges for all Airfreight and Oceanfreight for shipments originating from India. This exemption is valid through 30 September 2018 Source: DHL 11

12 Total Capacity, in mteu Did You Know? Containership Deliveries, Deletions and Orders by Year, in mteu (F) VESSEL ORDERING New ship containership orders increased by 140% in 2017, reaching TEU, vs. only mteu in This still remains significantly lower than the 2,2 mteu contracted in 2015 before the IMO NOx Tier III requirements, making ships more expensive to build, came into effect. ORDERBOOK-TO-FLEET RATIO At 1,2 mteu for FY 2017 (+26% vs s 0.9 mteu), the total capacity of ships delivered during 2017 clearly exceeded the vessel ordering. Last year s order volume saw the orderbook-to-fleet ratio fall from 15.7% at the end of 2016 to its current value of 12.6%. The capacity delivered in 2017 is much smaller than than the record total of 1,735,000 TEU observed in DELETIONS Total deletions from the world container fleet reached TEU in 2017, down 35.8% compared to 2016 s record of TEU. COMING IN 2018 Marginal order increase is expected vs Carriers including HMM and Yang Ming will likely place orders, while several non-operating owners remain keen to take on new-building projects at the current attractive price level. Vessel deliveries are expected to increase to 1.5 mteu Deletions, mainly from scrapping, are expected to fall to TEU. This would push container fleet growth to 5.6% in 2018, compared to a 3.7% growth recorded in Source: Alphaliner 12

13 0,31 0,37 0,46 0,35 0,35 0,34 0,22 0,58 0,24 0,99 0,69 0,57 0,59 0,50 0,58 0,52 0,56 0,37 0,38 1,06 1,62 2,13 1,80 1,48 1,55 2,84 2,51 3,27 3,15 4,15 Did You Know? (2/2) Top 15 Carriers Operated Capacity Growth, Jan 2018 vs. Jan 2017, in mteu and % +26,9% 2017 The total vessel capacity operated by the top 15 container carriers grew by 12.6%, from mteu in 2017 to mteu 2018 in 2018, their combined share of the global capacity increasing from 78.6% to 85.1%. This includes the capacities operated by the companies acquired over the course of the year. +10,9% +17,8% +11,1% Over the same period, the total liner capacity only increased by 3.9% from mteu to mteu. However, not all of the carriers recorded gains, as two carriers posted reductions in their operated capacity. The biggest loser was Hyundai Merchant Marine (HMM), whose capacity fell by 23.9% from 456k TEU in 2017 to 347k TEU at the beginning of The reduction was mainly due to the withdrawal of numerous HMM ships from the Asia Europe and Asia East Coast of North America routes. In contrast, the main gainer last year was the Maersk Group, whose operated capacity grew by 26.8% to reach 1.80 mteu on 1 January 2018, up from 1.62 mteu twelve months earlier. The recent takeover of the German carrier Hamburg Süd contributed a large part of the capacity increase. Without the purchase however, Maersk would still have grown organically by some 10%. +4,7% +7,1% +19,0% +3,5% +16,0% +7,7% +2,7% +19,4% -23,9% -2,9% +9,1% Maersk Hamburg Süd MSC CMA- CGM APL COSCO Hapag- Lloyd UASC Evergreen OOCL Yang Ming MOL NYK Line PIL ZIM HMM K Line Wan Hai Source: Alphaliner 13

14 B A C K - UP 14

15 Topic of the Month Top 12 Carriers by Operated Capacity (in Mil. TEU), December After triggering regulatory approval processes in 23 jurisdictions, Maersk finally aquired Hamburg Süd. Over the next five months, Maerk will terminate some of Hamburg Süd s overlapping services on certain trades APM- Maersk, Hamburg Süd MSC Source: Alphaliner, incl. pending mergers COSCO, OOCL CMA CGM, Mercosul Hapag-Lloyd ONE (NYK, MOL, K Line) Evergreen Yang Ming PIL Zim HMM Wan Hai 15

16 Market Outlook February 2018 Ocean Freight Rates Additional Trades (1/2) Ocean Freight Rates Outlook EURO AMLA EURO SSA AMNO MENAT AMNO SSA AMNO AMLA AMLA Exports Rates are stable. Utilization is good up to full. To East and West Africa the market is flat. To South Africa utilization of vessels is satisfactory for the carriers at around %. Rates should remain stable for the rest of Q1. Some slight rate increases are expected as of Q2. The situation in Durban has improved, but is not back to normal yet. Carriers are still giving the opportunity to route cargo via Cape Town or Coega for on-carriages into the South African hinterland to relieve Durban and prevent delays of cargo. Rates with some strategic carriers to M. East destinations will have a slight increase ($50/contr) Space is still tight from USGC Ports and delays caused by inclement weather conditions are causing random space issues from USEC. No Space issues or service changes on USA to South & West Africa services Rates are stable with no increase/decrease expected until new year or in the first quarter of 2018 Gulf to ECSA/WCSA full. Rate increasing moderately. USEC to WCSA full GRI s announced end Jan All other lanes static for next 30 days. Increased freight rates from SAEC stabilized Space constraints lessoned, but forecasts are still needed 2-4 weeks out Equipment deficits affecting conditions in Colombia Numerous surcharges and fees being imposed Source: DGF 16

17 Market Outlook January 2018 Ocean Freight Rates Additional Trades (2/2) Freight Rates Outlook EURO MED - AMNO EUR MED AMLA EURO MED ASPA EURO MED MENAT EURO MED SSA ASPA-SPAC nothing to be highlighted nothing to be highlighted stable nothing to be highlighted stable nothing to be highlighted nothing to be highlighted Peak season in view of the pre-cny rush is expected to continue until late February. Also, moderately strong bookings are anticipated even with the blank sailings announcements put forth by most of the shipping lines in the market. Therefore, there have been minimal adjustments made to the freight rate at this point in time. Source: DGF 17

18 Market Outlook Volume Outlook in Main Trade Lanes, 2017 Estimate & Growth Forecast 2017/20 in % 2018e, in mteu 2018e-2021e CAGR, in % N O R T H A M E R I C A I n c l. M E X I C O 3.5 mteu +1.2% F A R E A S T N O R T H A M E R I C A 7.6 mteu +0.7% I n c l. M E X I C O 1.7 mteu +0.9% 11.9 mteu +1.6% 15.8 mteu +0.9% 3.5 mteu +1.3% 2.0 mteu +0.7% L A T I N A M E R I C A 1.7 mteu +1.3% 0.2 mteu +3.0% E U R O P E I n c l. M E D 7.0 mteu +0.9% I N T R A A S I A excl. Oceania 7.0 mteu +0.9% 4.5 mteu +2.8% L A T I N A M E R I C A 35.1 mteu +3.1% G L O B A L C O N T A I N E R T R A D E e m T E U % C A G R 2017e- 2020e Mid-term growth is mainly driven by Asian tradelanes. Source: Seabury 18

19 Global Capacity Development all Trades Highest scrapping level ever [TTEU] Average age % Idling remains high [TTEU] 1, % ,359 1,324 Returning capacity well absorbed by demand 602 (May 2018) Net capacity growth remains low Net capacity growth 2017E 7.7% -1.8% 2.7% -3.3% Apr 17 YTD Scheduled Post-ponements capacity growth Scrapping Net capacity growth Very few deliveries expected post Orders placed by year [TEU m] Vessel deliveries by year [TEU m] ,300 TEU % Source: Alphaliner (May 2018), carrier views Apr17 YTD E 19

20 Carrier Mergers, Acquisitions and Alliances China Shipping Cosco OOCL TBC Evergreen M E R G E R S A N D A Q U I S I T I O N S APL CMA CGM Hapag Lloyd United Arab Shipping Hyundai Merchant Marine Hamburg Süd Maersk Line MSC K Line MOL NYK CHINA COSCO SHIPPING EVER GREEN CMA CGM HAPAG-LLOYD/UASC HYUNDAI MERCHANT MARINE MAERSK LINE MSC OCEAN NETWORK EXPRESS (ONE) Yang Ming YANG MING Hanjin Shipping Bankrupt A L L I A N C E S F O R M E R A L L I A N C E S P R E S E N T A L L I A N C E S 2M MAERSK LINE MSC OCEAN 3 CMA CGM CHINA SHIPPING UNITED ARAB SHIPPING COMPANY 2M MAERSK LINE MSC HMM (strategic cooperation) OCEAN ALLIANCE OOCL CMA CGM CHINA COSCO SHIPPING EVERGREEN G6 HAPAG-LLOYD MOL NYK APL HYUNDAI MERCHANT MARINE OOCL CKYHE COSCO EVERGREEN HANJIN SHPPING K-LINE YANG MING THE ALLIANCE HAPAG-LLOYD/UASC ONE YANG MING Source: Carriers 20

21 Acronyms and Explanations 2M - Carrier Alliance: Maersk / MSC AMLA - Latin America AMNO - North America AR - Argentina ASPA - AsiaPacific BR - Brazil CAGR - Compound Annual Growth Rate CENAC - Central Amercia and Caribbean CKYHE - Carrier Alliance: Cosco, K-Line, YangMing, Hanjin and Evergreen CNC - CNC Line (Cheng Lie Navigation Co. Ltd.) DG - Dangerous Goods DWT - Dead Weight Tonnage EB - Eastbound ECSA - East Coast South America EURO - Europe FMC - US Federal Marine Commission G6 - Carrier Alliance: APL, Hapag Lloyd, Hyundai, MOL, NYK and OOCL GRI - General Rate Increase HJS - Hanjin Shipping HMM - Hyundai HSUD - Hamburg Süd HWS - Heavy Weight Surcharge IA - Intra Asia IPBC - India Pakistan Bangladesh Colombo IPI - Inland Point Intermodal ISC - Indian Sub Continent MENAT - Middle East and North Africa mn - Millions MoM - Month-on-Month NOO - Non-operating (vessel) owners Ocean 3 - Carrier Alliance: CMA, UASC, China Shipping OCRS - Operational Cost Recovery surcharge OWS - Overweight Surcharge PH - Philippines PNW - Pacific North West Ppt. - Percentage points PSW - Pacific South West RR(I) - Rate Restoration SAEC - South America East Coast SAWC - South America West Coast SOLAS - Safety of Life at Sea SPRC - South People s Republic of China South China SSA - Sub-Saharan Africa SSL - Steam Ship Line T - Thousands TEU - Twenty foot equivalent unit (20 container) TP - Trans Pacific TSA - Trans Pacific Stabilization Agreement ULCS - Ultra Large Container Ship USGC - US Gulf Coast US FMC - US Federal Maritime Commission USEC - US East Coast USWC - US West Coast VGM - Verified Gross Mass VLCS - Very Large Container Ship VSA - Vessel Sharing Agreement WB - Westbound WCSA - West Coast South America YML - Yang Ming Line YoY - Year-on-Year YTD - Year-to-Date 21