{"id":7480,"date":"2020-04-06T15:39:57","date_gmt":"2020-04-06T12:39:57","guid":{"rendered":"https:\/\/www.al-sindbad.net\/worst-case-scenario-could-bring-about-usd-23-bn-loss-for-carriers\/7480\/"},"modified":"2020-04-06T15:39:57","modified_gmt":"2020-04-06T12:39:57","slug":"worst-case-scenario-could-bring-about-usd-23-bn-loss-for-carriers","status":"publish","type":"post","link":"https:\/\/www.al-sindbad.net\/worst-case-scenario-could-bring-about-usd-23-bn-loss-for-carriers\/7480\/","title":{"rendered":"Worst Case Scenario Could Bring About USD 23 Bn Loss for Carriers"},"content":{"rendered":"<p><strong>Blanking of sailings triggered by the demand drop from the coronavirus pandemic could result in a USD 23 billion collective loss for container carriers in the worst-case scenario, Copenhagen-based consultancy Sea-Intelligence predicts.<\/strong><\/p>\n<p>This scenario is based on the freight rates decline experienced by carriers in 2009 and is being made on the back of a new wave of blank sailings from last week pushing the total to 212.<\/p>\n<p><\/p>\n<p>Multiple services have been affected by cancellations ranging through to the end of June. However, the majority of blank sailings are clustered within the coming 5-6 weeks.<\/p>\n<p><\/p>\n<p>The largest capacity withdrawal is seen in the Asia-Europe trade which is entering a 4-week period with 29-34% of the capacity having been removed from the market.<\/p>\n<p><\/p>\n<p>As Sea Intelligence explains, the aim is to prevent a catastrophic drop in freight rate levels, while trying to cut costs at the same time.<\/p>\n<p><\/p>\n<p><em>\u201cIn the most benign scenario, the carriers experience a 10% volume decline in 2020 due to the pandemic but manage to prevent any material decline in freight rates. In this case, their profits will decline by USD 6 Billion compared to 2019 and cause all main carriers combined to lose USD 0.8 billion in 2020,\u201d <\/em>Alan Murphy, CEO of Sea-Intelligence said.<\/p>\n<p><\/p>\n<p>The economic impact of the push to adapt to the demand drop is yet to be seen as things develop.<\/p>\n<p><\/p>\n<p><em>\u201cHence the development in freight rates will be important in the coming weeks, as that will determine the degree to which we will see even more aggressive capacity reductions,\u201d <\/em>Murphy adds.<\/p>\n<p>world maritime news<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Blanking of sailings triggered by the demand drop from the coronavirus pandemic could result in a USD 23 billion collective loss for container carriers in the worst-case scenario, Copenhagen-based consultancy Sea-Intelligence predicts. This scenario is based on the freight rates decline experienced by carriers in 2009 and is being made on the back of a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":7481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[4312,264,2050,2316,4311,1365,1448],"class_list":["post-7480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritime-news","tag-bring","tag-carriers","tag-case","tag-loss","tag-scenario","tag-usd","tag-worst"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/7480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=7480"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/7480\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/7481"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=7480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=7480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=7480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}