Global Shippers Forum and World Shipping Council clash over liner consolidation. Liner shipping lobbyist the World Shipping Council has rejected claims from the Global Shippers Forum that competition regulators need to reassess their approach to shipping line alliances in the era of ultra-large container vessels (ULCVs) and increasing merger and acquisitions activity among liner operators.
Yesterday’s position paper from the GSF, The implications of mega-ships and alliances for competition and total supply chain efficiency: an economic perspective, claims the deployment of ULCVs – while beneficial in terms of reducing shipping line costs – failed to accommodate the increased costs to shippers from larger ships and shipping alliances. Forwarders renew calls for shipping lines to abandon growing list of surcharges. Freight forwarders have renewed calls for shipping lines to axe their surcharges “Forwarders do not like shipping line surcharges, and we have been challenging their legitimacy on behalf of our members – and their customers – for many years,” said Robert Keen, BIFA Director General.
Earlier this year, the Global Shippers’ Forum launched a campaign promising to end the surcharge system by 2020, threatening to “name and shame” carriers and forwarders that use surcharges to “exhort” extra payments from customers. THE Alliance creates emergency fund in event of Hanjin scenario. The THE Alliance, understanding how critical certainty is for shippers, has proposed innovative language within its vessel-sharing agreement that has at least one fan among the Federal Maritime Commission.
WASHINGTON — Container lines within the planned the THE Alliance are developing safeguards, including an emergency fund, to help recover stranded cargo if one of the members collapses as Hanjin Shipping did this year. Federal Maritime Commissioner William Doyle said he’d like to see the 2M and Ocean alliances adopt similar practices. As shippers scrutinize carriers’ financial stability ahead of the 2016 to 2017 bidding season, the safeguards could provide those that deal with the THE Alliance some reassurances — and give alliance members a contracting edge. “I find it more than just creative. Login - DVZ. Calendar.
Self-test questions. Presentations. G6 cancels more Asia-Europe sailings. Views differ on outlook for growth in Panama traffic to US East Coast. Hapag-Lloyd On The Cusp Of EU Approval - Port Technology International. Empty container repositioning costs the shipping industry up to $20bn a year. © Dreamshot Repositioning empty containers costs the shipping industry $15-$20bn a year – up to 8% of a shipping line’s operating costs – according to Boston Consulting Group (BCG).
At this week’s Intermodal Europe event in Rotterdam, Johannes Schlingmeier, a consultant at BCG, said the huge number of empty container movements across the globe accounted for 15% of all box movements in the US, 14% in Latin America, 29% in Europe, 16% in the Middle East and 25% in China. Speaking to The Loadstar, Mr Schlingmeier’s colleague, Christian Roeloffs, said the problem arose from a mixture of structural trade imbalances and liner and network inefficiency. Notes.husk.org. tagged containers. A Maersk container ship ceased operations near the Canary Islands on Monday November 1, 2016 due to a fire that started on board, reported Fleetmon.
Image Courtesy: ACP The opening of the long-awaited Expanded Panama Canal will inflict a severe blow to the classic panamax market, i.e. the fleet of 4,000- 5,300 teu vessels, according to Alphaliner, as they are phased out of service and sent for scrap.
This sector is already most affected by the general containership oversupply as classic panamax ships have been massively displaced from service over the past eight months. Vessel cascading and service restructurings have forced these ships out of several of their core trades, with very limited alternative employment opportunities. Image Courtesy: Panama Canal Authority The Panama Canal this month regained the majority share in terms of overall container transport capacity on all-water routes between the Far East and the US East Coast, according to Alphaliner.
Image Courtesy: Maersk Line World’s biggest container carrier Maersk Line is rerouting its TP12 Asia – US East Coast service through the expanded Panama Canal and turning it into a standalone, around-the-world service.
From the Far East to the US East Coast the TP12 service will transit the new Panama Canal locks and call the ports of Newark, Norfolk and Baltimore on the US East Coast. On the return leg to Asia, the TP12 will go through the Suez Canal and call the ports of Salalah (Oman), Colombo (Sri Lanka) and Singapore. “We are changing our TP12 service to provide a better product to shippers in Korea, Northern and Eastern China. Image Courtesy: MSC Switzerland-based Mediterranean Shipping Company plans to revise its services connecting Asia and US West Coast/Canada, starting from the middle of December 2016 with departures from Asia.
The services undergoing change are New Orient, New Eagle and Maple. MSC said its New Orient and New Eagle services will be renamed Orient and Eagle, respectively. Eagle trade will offer a direct service to Vancouver and Seattle, while Orient will offer a service to Long Beach. Image Courtesy: IMO The implementation date for the 0.5% global sulphur cap is set for 2020, the International Maritime Organization (IMO) Marine Environment Protection Committee decided at its 70th session in London this week.
In 2008, the IMO unanimously adopted the global sulphur cap requiring all ships to use fuels with a maximum 0.5% sulphur content as of January 1, 2020. The 2020 implementation date was made dependent on the results of a study to determine whether sufficient low sulphur fuel would be available then. That study, commissioned by the IMO and published last August, shows that under all scenarios and sensitivity options considered, there will be sufficient clean fuel available in 2020.
Image Courtesy: Diana Shipping Despite better demand side conditions on the “road to recovery” for the dry bulk shipping industry, the supply side is worse off, according to international shipping association BIMCO. As ship owners’ interest in demolition has cooled, the supply side is worse off today than earlier estimates projected for 2016.
Stronger demand side growth is the only reason for the improved market conditions in the dry bulk shipping sector. Japan’s Big Three End First Half FY 2016 in Losses. Image Courtesy: Hamburg Hafen On the back of the deteriorating conditions in the shipping market, Japan’s Big Three shipping companies, Kawasaki Kisen Kaisha (K Line), Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui O.S.K. Lines (MOL), reported losses for the first half of fiscal year 2016 ended September 30. Of the three majors, K Line reported the largest operating loss during the period, which stood at JPY 26.4 billion, against an operating income of JPY 18.7 billion, as market conditions “were more adverse than previously forecast.” The shipping line’s net loss stood at JPY 50.4 billion, compared to a net income of JPY 11.6 billion seen in the six-month period in 2015, while its operating revenues decreased to JPY 491.1 billion in the first half of the fiscal year from JPY 668.3 billion reported in the same period a year earlier.
Ocean Alliance Overcomes US Regulatory Hurdle - Port Technology International. The US Federal Maritime Commission approved on October 20, 2016 the merger of CMA CGM, Cosco Group, Orient Overseas Container Line and Evergreen Marine, to form the Ocean Alliance, reported the Wall Street Journal. Initially concerned over the possible impact on fair pricing, the commission’s verdict was delayed as it debated the pros and cons of the proposed alliance, before finally agreeing to approve on Friday. Mment: One Belt, One Road the future for trade between east and west. China’s accession to the Transports Internationaux Routiers (TIR) convention in July has been hailed as a game-changer for international trading partners in Central Asia and Europe. By signing the convention, the Beijing government aims to facilitate Chinese exports and support its ‘One Belt, One Road’ initiative. Both these aims are positive for transport companies serving this vast region, but for the impact to be fully realised, further progress is needed.
There is little disagreement that China joining the TIR system will produce benefits. Transit times for cargoes should be faster and stakeholders across the region will be playing by the same rules. End of the 'Hanjin Effect' - Port Technology International. Container Documentary - Documentary Films. Vegetation as Seen by Suomi NPP. Images crafted from a year's worth of data collected by the Suomi NPP satellite provide a vivid depiction of worldwide vegetation.
Suomi NPP, short for National Polar-orbiting Partnership, is a partnership between NASA and the National Oceanic and Atmospheric Administration. The images show the difference between green and arid areas of Earth as seen in data from the Visible-Infrared Imager/Radiometer Suite, or VIIRS, instrument aboard Suomi NPP. VIIRS detects changes in the reflection of light, producing images that measure vegetation changes over time.
The Suomi NPP vegetation data will be incorporated into many Normalized Difference Vegetation Index, or NDVI-based products and services, including environmental monitoring, numerical weather prediction models and the U.S. Drought Monitor operated by the National Drought Mitigation Center. This vegetation index measures and monitors plant growth, vegetation cover and biomass production from satellite information. Petrobras LNG Terminals Up for Grabs. Image Courtesy: Chemtech. G6 Alliance Voids More Sailings. Why Ocean Freight Prices Are at Historic Lows. “Should you find yourself in a chronically-leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” – Warren Buffett Global shipping rates are astonishingly low right now; it’s possibly never been cheaper to ship goods around the world, ever.
The China Containerized Freight Index has been going lower and lower. Source: Shanghai Shipping Exchange. Login - DVZ. “Too many cooks” in THE Alliance kitchen, suggests Drewry. Insight: Shipping Alliances Must Act with Caution. The prediction of a three-mega-alliance industry structure has come true, as six of eight carriers left behind from the pending break-up of former alliances have moved fast to join forces, according to the latest Container Insight Report from Drewry Shipping Consultants.
Login - DVZ. Login - DVZ. Will Existing Carriers Form New Alliance? Productivity is declining at the world's biggest ports, 'but mega-boxships are not to blame' Despite carrier pleas that port services need to improve in order to efficiently handle ultra-large container vessels (ULCVs), it seems productivity is falling. According to new analysis presented by Andy Lane, partner at CTI Consultancy, at this week’s TOC Container Supply Chain conference in Singapore, berth productivity at some 20 of the largest ports in Asia and Europe is in decline.
Using data gleaned from the Journal of Commerce’s berth productivity survey, and comparing performance in the first half of 2014 with the first half of 2015, Mr Lane said terminal productivity, relative to average vessel call size, was dropping. Mr Lane focused on 20 major ports: five Asia gateways, five Asian hubs, five Europe gateways and five European hubs.
The data includes 45,722 calls across the 20 ports and more than 51 million container moves. Hapag-Lloyd to merge with UASC after secret talks. Container port competition in Europe. Port competition emerged as a complex and multi-faceted concept due to changes in the market environment of ports and the resulting intensification of rivalry between operators in the same port, between neighbouring ports, be-tween multi-port gateway regions and between entire port ranges. Schiffsregister — Startseite. "Erstregister" und "Zweitregister" Human rights, environmental advocates criticize Nicaragua Canal plan. TOP 100 - Existing fleet on October 2014. Container Freight Rate Insight – Home of freight rate pricing. Daily Briefing 05/03/2014. Ocean Carrier Reliability Improves Slightly, SeaIntel Says. I Know Why Your Students Don't Speak English… And What to Do About It.
How to Load a Giant Container Ship. Neue Möglichkeiten zur sicheren und effizienten LNG-Bunkerung. South America Trade & Logistics. Bills of Lading Seminar - MaritimeEventTV. Murmann to Lead Schenker Air and Ocean Freight. Container Ship Scrapping Heads for Record.