Scope 3: the emissions elephant in the room for supply chains
A battle has been raging this year over the grand challenge of Scope 3, or ...
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While Red Sea and war risk talk abound among both experts and amateurs in container shipping – let me try to keep it very simple for you*.
(*Hoping the wave of abuse towards the carriers and their opportunism coming my way in the past 48 hours, suddenly stops.)
Rewind to 9 November, when the CEO of Hapag-Lloyd, Rolf Habben Jansen, possibly the most lucid and forthcoming with regard to the dire situation in which the box lines found themselves at the time, ...
Comment on this article
Hans-Henrik Nielsen
January 04, 2024 at 10:03 amFor “what would be considered a reasonable return of investment” = roundtrip voy freight contribution, please see my post on a “fun exercise” just prior xmas, 2023. That was obviously basis a Suez Transit, and before the COGH journey became required.
Whereas my little exercise is by no means 100 % correct (it will never be), allow its a pretty good ball park figure done over a glass of scotch. So unless you have approx USD 4000/feu in freight revenue for the roundtrip, why do it ? Better to put the investors money to work somewhere else… That is how i would look at it from a shareholder perspective.
Anthing above $4K/feu and it gets into “nice territory”, but by no means undue profiteering … for that we need to look at profit margins of say Apple ? Bear in mind that now there are extra cost for laid up vessels to cover
so, $6K/feu roundtrip Asia/Eur … sounds about a fair deal to me. Best way of evening this up : Enforce proper freight rates on EB shippers. Stop looking at main hauls/back hauls. The cost is the same (for the whole vessel).
Alessandro Pasetti
January 04, 2024 at 10:48 amHi, HH! I read your great back-of-envelope analysis, wasn’t sure about the c/p input but that was quite some insight in how things are playing out, I think –– thanks a lot for your comment!
Alessandro Pasetti
January 04, 2024 at 10:49 amRe “undue profiteering”, you may have a different view then looking at the one piece I wrote on the topic y’day, rather than this one…