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A strengthening demand scenario on the Asia-European trades appears to have caught carriers and forwarders by surprise, and tightening space has increased the chances of shipments moving under long-term contracts being rolled. “My inbox started to blow up towards the end of last week, with customers having problems with their allocations,” one European forwarder told?The Loadstar. “The problem is that contract rates are well below spot rates and when that happens during busy period, carriers will always prioritise the highest-paying cargo – what is unusual about he current situation is that I just don’t know where it is coming from.” During yesterday’s first-quarter earnings call with analysts, Maersk CEO Vincent Clerc suggested that European importers had now entered a period of restocking. Maersk saw a 9% growth in volumes into Europe during the period. He said: “In Europe, with 9% growth, we believe there is something of a restocking, because there was cautiousness last year in Europe that maybe the macro environment would not be so good, and people had run their stock down. Consumption keeps on holding better than maybe what some of our customers had feared, and now you have a little bit of a restocking going on as we’re moving into the year.” Spot rates on Drewry’s World Container Index’s (WCI) Shanghai-Rotterdam leg saw 2% week-on-week growth, to $3,103 per 40ft, and up 3% on Shanghai-Genoa, to $3,7176 per 40ft. In reality, many shippers may already be paying more to avoid rollovers. Asked by?The Loadstar?about this week’s market, one UK-based forwarder said: “One word: mental. “Spot rates are shooting up rapidly – and this could be just the beginning as demand is stronger than expected and capacity is absorbed by Red Sea diversions. “We expect Q2 to remain elevated with the peak season volumes kicking in, and possibly not cooling until Q3, when new deliveries hit the market,” he explained. This week also saw the introduction of new FAK rates on the Asia-North Europe trades, with a 1 May implementation of MSC’s new rate of $4,500 per 40ft high-cube to North European ports. Meanwhile, Maersk Line is also targeting big rate increase in the trade in the coming days, with its peak season surcharge (PSS) set to triple from the current $500 per 40ft to $1,500 from 11 May. One large European importer noted that the PSS was in addition to the trade disruption surcharge already levied by Maersk, which is meant to cover the costs of the diversion around the Cape of Good Hope, and questioned whether surcharges were justifiable, given how quickly they had jumped in such a short space of time, as well as voicing familiar frustration over the lack of communication from carriers.
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The Port of Rotterdam is facing the challenge of transforming from a fossil petrochemical cluster that focuses on refining to a new energy and chemistry port. As Europe’s largest port, this challenge is a tremendous one, as the port area was responsible for 22.5 megatonnes of CO? emissions in 2022. The Port has committed to reducing its emissions by as much as 55% by 2030 and to being carbon-neutral by 2050. Innovations such as carbon capture and storage and low-carbon hydrogen as well as saving energy will be key to achieving this. The main focus of the energy transition is to reduce greenhouse gases. However, other challenges related to exceeding our planetary and social boundaries, such as biodiversity loss and the threat to the health of our living environment, require more and different action. These societal problems are connected to energy transition and affect a wider system: they relate not only to the extraction, production and consumption of energy, but also to the extraction, production and consumption of (raw) materials. Six developments have put pressure on the availability or usage of these raw material flows and show both the urgency and the interconnectedness of this transition: increased demand limited supply of materials limited recycling capacity decarbonisation goals geopolitical dependency and sensitivity limited availability of land and labour.? Moreover, the EU aims to recycle at least 25% and process 40% of its annual consumption. However, these goals are not only rather limited but also voluntary and have not yet been translated into action. The challenge and opportunity for the Port of Rotterdam is to position itself at these different scales – from the local level to the north-west European and global levels – in relation to the (raw) material transition. The aim of this research is to provide input for a raw material transition strategy for the Port Authority, as well as to analyse these challenges and provide strategies that capture the resulting opportunities. The research will also offer an action perspective for the Port of Rotterdam to guide it in the successful implementation of this new raw materials strategy. Hence, our main question is: How can the Port of Rotterdam robustly position itself in the (raw) material transition?
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