44 containers lost overboard in rough seas 🌊 + The worlds most profitable company 💰

SHIPPING NEWS

Storm Sends 44 Containers Overboard Off Coast Of South Africa

French shipping giant CMA CGM has reported that one of its containerships, the CMA CGM Benjamin Franklin, lost 44 containers at sea due to severe weather off the coast of South Africa. This 17,859 TEU vessel, built in 2005, was en route from Asia to Europe when it encountered the rough conditions on July 9. In addition to the containers lost overboard, another 30 were damaged onboard.

Thankfully, there were no injuries to the crew, no pollution, and no damage to the vessel itself, which remains seaworthy. The lost containers were carrying non-hazardous goods, so there’s no risk of dangerous cargo at sea. CMA CGM promptly informed the authorities and headed to Cape Town for a thorough inspection to ensure the ship’s safe continuation of its journey.

The bad weather in Cape Town has been relentless this week. Strong winds have damaged nearly 1,000 homes in informal settlements, displacing around 4,000 people. South African weather officials predict these conditions will last until Friday, bringing more strong winds, heavy rain, flooding, and mudslides.

The CMA CGM Benjamin Franklin isn’t the only vessel affected. On Monday, the Ultrabulk-managed Ultra Galaxy listed near South Africa. Its 18-strong crew was safely rescued after evacuating in a life raft. Today, reports indicate the vessel ran aground off Brand se Baai, 385km north of Cape Town, and efforts are underway to prevent a fuel and oil spill.

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VIDEO OF THE WEEK

The Worlds Most Profitable Company - Saudi Aramco

Saudi Aramco, the world's most profitable company, faces challenges. Despite earning $700 billion from 2016- 2022, the company is under strain due to the global shift from fossil fuels, declining OPEC influence, and Saudi Arabia’s economic crisis. Nationalized cautiously, Aramco must adapt to sustain profitability.

GLOBAL TRADE SNIPPETS

Rising shipping costs hit global trade hard. The effects of restrictions on shipping in the Red Sea and Panama Canal are being felt around the world. Global trade is under immense strain amid rising freight costs.

China, Kazakhstan central banks to cooperate on digital currency. The National Bank of Kazakhstan and the People’s Bank of China signed a memorandum of understanding to cooperate on digital currency. This was one of 31 contracts executed between the countries.

Cargo ship sinks in Malaysia after ballast tank cracks. All 10 crew members were rescued by the Malaysian Maritime Enforcement Agency.

World Bank moves Russia to high-income countries class. Russia's economic activity was impacted by a significant rise in military activities in 2023. The study also cited a revival in commerce (+6.8%), the financial sector (+8.7%), and construction (+6.6%) as drivers of growth.

Air cargo demand and rates hit new high. The global air cargo market is heading towards a “hot Q4” of rate increases after a sixth straight month of double-digit growth in June.

TRADE NEWS

Nike's Bold Move to Revive Faltering Sales

Nike's recent struggles with declining sales have led the company to recall former senior executive Tom Peddie from retirement. As part of a three-year cost-saving strategy, Nike aims to improve relationships with retailers and boost competitiveness against emerging sneaker brands. Peddie, a 30-year veteran, will serve as vice president of marketplace partners to mend these vital connections.

Despite significant restructuring efforts, Nike has seen limited success. The company's heavy investment in a direct-to-consumer (DTC) strategy backfired, straining relationships with traditional retailers and failing to captivate the Gen Z market. Competing brands like Hoka and On have gained ground, attracting casual runners during the pandemic.

Nike's recent financial performance underscores the challenges it faces. The company reported a 2% decrease in fourth-quarter revenue and forecasts a further decline in 2025 sales. A single earnings call in June resulted in a staggering $28 million loss in market capitalization.

In response, Nike is making strategic moves to recover. It has re-established partnerships with retailers like Designer Brands and Macy’s and launched a budget-friendly shoe line priced at $100 and under. While these efforts are aimed at regaining market share, CFO Matthew Friend acknowledges that the path to recovery will be challenging in the coming quarters.

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SHIPWRECK OF THE WEEK ⚓️☠️ 

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