11-09-2022, 08:32 PM
(10-09-2022, 01:27 PM)bryan2003 Wrote: [ -> ](09-09-2022, 09:04 PM)Yoyo Wrote: [ -> ]Yang Ming 'under pressure' from shippers demanding contract rate cuts - 8 Sept 2022
https://theloadstar.com/yang-ming-under-...rate-cuts/
Yang Ming chief operating officer Chang Chao-feng has admitted that, as spot rates fall, the carrier is under pressure from shippers demanding to renegotiate contract rates.
The line is believed to be the first to confirm receiving demands from shippers for lower contract fees and, yesterday, Mr Chang said the situation had become more challenging than in mid-year.
Xeneta questions ‘myths’ of heavily declining container volumes and bunker price unrest - 9 Sept 2022
https://www.hellenicshippingnews.com/xen...ce-unrest/
In its latest ‘Ocean Freight Pulse’ survey of its user base, made up of globally leading shippers, Xeneta found that over 50% of respondents expected volumes to stay the same or increase, while 38% expected a drop of just 5%.
(1) On the issue of BAF, the survey found the huge majority of shippers accepting the rise, with only 22% renegotiating – 17% successfully and 5% without success. (2) Customers were also quizzed over whether they’d renegotiated their prices while their long-term contracts were still valid. 52% had, 41% hadn’t, and the remaining 7% tried to, but unsuccessfully
PS: I had previously queried Samudera IR on this renegotiation issue and they have reverted that the contracts are signed and renewed annually or every two years, and there is no negotiation while it is in effect. The pressure can be very really, and I certainly hope that Samudera business partners are of respectable qualities.
Personally feel why Mr. Bani has very high confidence on their customer will honour to the signed contract is because he has been in this sector for a long time. Based on my 10 years experience in logistic and port sector, i strongly believe Mr. Bani insight is correct due to the fact below.
Carrier / liner - Long distance route (From Europe / USA to Asia)
Feeder - Short distance route (Within Asia)
1) Samudera Shipping is feeder service compared to those carrier / liner (Maerks, Hapag Lloyd, Yang Ming, Evergreen etc). There are not many feeder shipping company in Asia has similar number of fleet as Samudera. Even though the demand for carrier service might slight drop, the demand for feeder is still high as the TEU of a carrier can ship is few times of what feeder can ship. Normally company like Samudera will ship container from countries like Vietnam, Indonesia, Philippines, India etc to Singapore or Malaysia, thereafter the carrier will consolidate everything on their vessel and ship to Europe / USA.
2) Indonesia is net export of crude palm oil and coal and these commodities are highly in demand. Hence, this will support the freight cost contract for Samudera.
3) No doubt Samudera has competitors like Temas Line (listed at Indonesia), Harbour Link & Shin Yang shipping (listed at Bursa Malaysia), MTT (non listed Malaysia company), but these players have smaller fleet compared to Samudera and they have lesser route compared to Samudera.
4) In short, we can describe Samudera's business model as our daily necessity regardless how bad the economic as we can see from the past record, even 2018-2019, there are trade war between US and China, Samudera is still maintain profitable. This is mainly because those carrier's vessel unable to go direct to countries like Indonesia, Vietnam, Philippines etc because the port crane has limitation for the carrier's vessel as the vessel height is high where the port crane height is not as high as the vessel high. Hence, the major ports like PSA Singapore, PTP and Port Klang Malaysia, Shanghai port need feeder service to "dispatch" the containers from Europe and USA.
The CEO, Mr. Bani continues buy PT Samudera in August as well as November.
https://www.idx.co.id/StaticData/NewsAnd...1dff9f.pdf
https://www.idx.co.id/StaticData/NewsAnd...7184b4.pdf