Box shipping overcapacity crisis Saved by Red Sea diversions
AD Ports Group has signed a Memorandum of Understanding (MoU) with the Pakistan Board of Investment (BOI) to explore developing an industrial zone near Karachi Port and Port Qasim to facilitate trade and economic activity.
The Group also announced the separate signings of three other agreements bringing to bear the full economic weight of its five- business cluster structure of ports, economic cities and free zones, maritime and shipping, logistics, and digital services.
Karachi, Pakistan’s main port with overland connections into Central Redevelopment of the Port of Asia, will further develop the Middle Corridor” into a modern and cost-efficient maritime sea . route, reports London’s Port Technology International.
The new signings commit AD Ports Group to working with Pakistani partners to explore the possibility of establishing an industrial zone for industrial and commercial businesses near Karachi and Qasim Ports and to providing integrated end-to-end logistics solutions over air, ocean, and in- land transport, including warehousing and distribution, to dramatically improve Pakistan’s inland trade corridors into Central Asia.
The three agreements signed on February 27 include one between AD Ports Group’s Maqta Technologies and Pakistan’s PSW to explore strengthening Pakistan Single Window systems through collaboration with Pakistan Customs Services to modernise select borders and analyse cross-border systems
The second is a strategic partnership agreement between AD Ports Group and Bahria Foundation, a Pakistani diversified conglomerate engaged in industrial, commercial, and development activities, will enhance the productivity of dredging, marine services, and vessel pooling at Karachi Port.
The third agreement is also a strategic partnership agreement between the Group’s Noatum Logistics and KGTL, the Group’s joint venture with Kaheel Terminals, to explore providing comprehensive and integrated end-to-end logistics solutions over air, ocean and inland transport, as well as warehousing and distribution solutions including cold storage, to develop a corridor into greater Pakistan and Central Asia.
Asyad Shipping raises $333m in Oman IPO
Oman’s Asyad Shipping, a subsidiary of state-controlled logistics giant Asyad Group, has raised $333m through an initial public offering on the Muscat Stock Exchange.
The IPO involved more than 1bn shares, of which 75% were allocated to institutional investors.
The anchor investors, Mars Development and Investment, an Omani state-owned entity, and Falcon Investments, a subsidiary of the Qatar Investment Authority, bid for 10% and 20% of the offer share, respectively.
Based on the final offer price, the company’s market capitalisation on listing will be about $1.7bn.
Shares are expected to start trading on or about March 12. Established in 2003, Asyad boasts a fleet of around 90 ships, including tankers, dry bulk vessels, and LNG carriers. Last July the Middle Eastern owner ordered four VLCCs worth around $520m at Hanwha Ocean in South Korea with deliveries set for 2026 and the first quarter of 2027.
CMA CGM warns of tariff turbulence as 2024 revenue increases 18pc
FRENCH shipping giant and the world’s third-largest containership operator, CMA CGM, posted group revenues of US$55.5 billion for 2024, up 18 per cent on the previous year.
However, the liner flagged potential impact of US’s higher tariffs, a factor that could prompt the ‘reorganization of global supply chains’, reports UK’s Lloyd’s List.
CMA CGM carried 23.6 million TEU last year, up 7.8 per cent on 2023, while revenues from the group’s container shipping segment grew 16.2 per cent to $36.5 billion.
CMA CGM has become the latest carrier to reveal a significant earnings lift for 2024 off the back of Red Sea re routings, as the French carrier warned of the negative trade impact of higher tariffs for the year ahead.
“After a year of normalisation for the transport and logistics industry in 2023 following the Covid pandemic, 2024 saw increased demand for maritime container ship- ping,” said CMA CGM.
“While buoyed by stronger- than-expected growth in world trade and inventory rebuilding, global capacity faced a negative shock from geopolitical tensions.”
In terms of the group’s most recent performance, the fourth quarter, container volumes im- proved 7.8 per cent to 5.9 million TEU from 5.5 million TEU for the corresponding quarter of the previous year, as revenues from the container shipping side of the business climbed nearly 44 per cent to $9.5 billion.
Revenues per FEU in the fourth quarter came in at $3,204, up 33.5 per cent on 4Q23, but down 10.8 per cent on the previous three-month period (3Q24) reflecting the wider trend in weakening freight rates.
CMA CGM said it expected global trade to grow in line with stable global economic growth of around 3 per cent.
“Nevertheless, the prospect of
higher tariff’s announced in the US could have an impact on trade and lead to a reorganisation of global supply chains in the medium term,” it said.
The group also noted that the delivery of new vessels and on- going Red Sea developments “will be decisive factors in shaping the market”.
“In this environment, the group remains prudent and is paying close attention to the changing economic and geopolitical situation, while remaining confident in its ability to weather the cycle thanks to its business diversification and financial strength.”
CMA CGM spends $2.5bn on a dozen newbuilds at China's Jiangnan
France’s CMA CGM has signed up for a fresh series of containership new buildings in China.
The Marseille-headquartered liner giant is being widely tipped as the owner behind a dozen LNG dual-fuel 18,000 teu vessels contracted at CSSC Jiangnan Shipyard.
The order comes hot on the heels of the United States Trade Representative (USTR) agency’s proposal to charge Chinese-built vessels as much as $1.5m per visit to US ports
The deal is worth between $2.5bn and $2.6bn and will see the ships delivered in 2028 and 2029.
It is CMA CGM’s second or- der for large containerships this year, following a $2.6bn contract for another twelve 18,000 teu LNG dual-fuel newbuilds at Korean shipyard HD Hyundai Heavy Industries..
The Rodolphe Saadé-led company, which is trailing closely be- hind Maersk in the largest liner
rankings, built the world’s first 23,000 teu LNG-powered ships and Jiangnan and has more lined up for delivery from the yard in 2025 and 2026.
Services exports swell to $4.4bn
ISLAMABAD: Export of services grew 6.16 per cent to $4.748 billion in the first seven months of the current fiscal year from $4.472bn a year ago, driven by the telecommunication sector. Services exports have seen positive growth since February 2024, mainly due to a surge in information technology and other businesses. However, there was a 6.5pc decline in August 2024.
In rupee terms, the exports improved by 3.27pc to Rs 1.321 trillion in the first seven months of FY25 against Rs 1.279tr in FY24, according to statistics issued by the Pakistan Bureau of Statistics on Tuesday.
In January, services exports rose 1.51pc to $691.62 million against $681.31m a year ago.
According to the data com- piled by the State Bank of Paki- stan, the exports of telecommunications, computer, and information services reached $2.177bn in the first seven months of FY25 against $1.721bn over the corresponding months of last year, a growth of 26.49pc.
The export of other business services rose 3.20pc to $967m in 7MFY25 as against $937m over the corresponding months of last year. However, the export of transport services dipped by 6.94pc to $509m in 7MFY25 against $547m a year ago.
Similarly, the export of travel services also recorded a negative growth of 3.61pc to $427m during the period under review, as op- posed to $443m a year ago.
HK billionaire Li Ka-shing to sell Panama Canal ports to US firm
CK Hutchison, the Hong Kong-based company owned by tycoon Li Ka-shing’s family, has agreed to sell most of its stake in two key ports on the Panama Canal to a group led by US investment firm BlackRock.
The sale comes after weeks of complaining by President Donald Trump that the canal is under Chinese control and that the US should take control of the major shipping route.
Through a subsidiary, CK Hutchison Holding operates ports at the Atlantic Ocean and Pacific Ocean entrances to the canal.
The company said that it would sell its interests as part of a deal worth US$22.8 billion, according to BBC News
CK Hutchison is not owned by the Chinese government and has operated the ports since 1997.
The deal includes a total of 43ports in 23 countries around the world, including the two canal terminals. It will require approval by the Panamanian government
The waterway was built in the early 1900s. The US maintained control over the canal zone until 1977, when treaties gradually ceded the land back to Panama. Mr Trump has made several arguments for retaking control of the canal and the surrounding area.
Pak exports increase by 8.17% to $22.022 bln during Jul-Feb
The exports from the country increased by 8.17 percent during the first eight months of the current fiscal year as compared to the corresponding months of last year.
Exports during July-February (2024-25) were recorded at $22.022 billion against $20.359 billion during July-February (2023-24), ac- cording to Pakistan Bureau of Statistics (PBS) data.
On the other hand, imports into the country went up by 7.40 per- cent by growing from $35.199 million last year to $37.802 million during the first eight months of the current year.
Based on the figures, the trade deficit during the months under review was recorded at $15.780 billion against the deficit of $14.480 billion last year, showing an in- crease of 6.33 percent.
Meanwhile, on year-on-year basis, the exports in February 2025 decreased by 5.57 percent to $2.439 billion from $2.583 billion in February 2024.
On the other hand, the imports went up by 10.03 percent by going up from $4.306 to $4.738 percent, according to PBS data.