Page 5 - Al-Rashed Newsletter August 2022

SHIPPING NEWS

RCL sees volumes dip in Q2 due to China ‘zero-Covid’ policy

Thai-listed RCL reported a first half profit of THB15.58bn ($433.78m) a
jump of 154% compared to the same period in 2021. “Key improvement
aspects of the first half of this year were freight rates which improved by
79%, and a volume growth of 4%,” RCL said. However, in Q2 China’s “zero-
Covid” policy hit volumes for the intra-Asian and regional feeder line with
strict lockdowns in major Chinese cities hitting exports and resulting an 8%
decline in volumes for RCL. “Nevertheless, RCL managed to maintain the
freight rate at the level only one percent below the Q1 period through its
resiliency,” the company said. RCL reported a profit of THB7.36bn, 131% up
the same quarter in 2021, however 11% lower than Q1 2022. Looking ahead
RCL said the container sector would continue to be challenged by disruptions
and uncertainties.

https://www.seatrade-maritime.com/containers/rcl-sees-volumes-dip-q2-due-china-zero-covid-policy

Port worker strike starts at Felixstowe

Talks to try and avert the strike failed and Union has rejected an offer of a 7%
increase plus a £500 on off payment. “We recognize these are difficult times but,
in a slowing economy, we believe that the company’s offer, worth over 8% on
average in the current year and closer to 10% for lower paid workers, is fair,” the
Port of Felixstowe said in a statement. At the end of July port worker members
of Unite voted overwhelmingly in favor of strike action over pay. The Union
called out the port operator, which is owned by Hutchison Ports, over putting
profits and dividends ahead of worker’s pay. It said that Felixstowe’s accounts
for 2020 show the company made pre-tax profits of £61m while also paying a
dividend of £99m.
Felixstowe is the UK’s largest container gateway handling some 48% of the
country’s box volumes. A major port of call on the Asia – Europe trade it
receives calls from some of the world’s largest container vessels such as the
24,000 teu Ever A lot pictured above at berth in Felixstowe at the weekend.
The strike has been estimated to impact some $800m worth in goods and trade
that would have moved through the port during the eight-day strike. Container
lines are diverting services to other ports both in UK and Europe. Maersk Line is
omitting three calls at Felixstowe this week with cargo bound for the port
diverted to other ports, some cases to be feedered from European terminals
once the strike is over.
https://www.seatrade-maritime.com/ports/port-worker-strike-starts-felixstowe