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Port Klang defers rate hike six months till March 2019

PostTime:2018-08-14 09:32:33 View:8

Port users at Malaysia's Port Klang’s will get a six-month reprieve as the government deferred the planned 15% tariff hike from September 1 this year to March 1, 2019. The planned hike, which would have applied to the terminals operated by both Westports and MMC-owned Northport, was pushed back to give more time to port users and other industry players to adapt and stabilise businesses after the introduction of the Sales and Services Tax (SST) which was also set to be introduced on September 1, local media quoted Transport Minister Anthony Loke as saying. “This deferment is a clear indication of the government’s commitment to ease the rakyat’s burden besides taking into consideration the impact of the SST implementation on September 1 this year,” he said. A 15% hike was implemented in the first phase in 2015, while the next step up 15% increase was set to take effect on September 1, 2018. The Port Klang Authority (PKA) said the staggered increase was to allow port users sufficient time to adjust their business costs along the supply chain.

Panama and China to sign MoU on maritime cooperation

PostTime:2018-08-14 09:31:02 View:9

Panama’s Minister of Maritime Affairs Jorge Barakat held a meeting with China’s Minister of Transport Li Xiaopeng, who visited the headquarters of the Panama Maritime Authority (AMP). Li was accompanied by a delegation of the Chinese government and Chinese companies working in Panama’s maritime sector. Both ministers expressed their interest in reaching a memorandum of understanding (MoU) on maritime matters for which they started negotiations immediately. The MoU will implement projects and activities that contribute to strengthening relations between the two countries. “The mutual contribution in areas such as maritime environmental protection, certification and training of seafarers, recognition of documentation of the ships, the port state, among others, has grown with the signature of the treaty signed by Panama and China in November 2017 on maritime transport that entered into force May 17, as the agreement  promotes maritime and port development of Panama and China, strengthens the Ship Registry and supports the Chinese Maritime Authority in the maritime safety issues of Panama-flagged vessels sailing in its waters,” said Barakat. Since July 1, Panama Ship Registry receives “the Most Favoured Nation” treatment and the Panama-flagged vessels will enjoy the advantages and lower port costs applicable to other states which have similar agreements with China. The agreement includes transfer of knowledge and technical control of ships’ documentation and crews on board Panamanian vessels. “Likewise, we see cooperation between both administrations not only in maritime matters, but also in human resources and education,” said Li who expressed the intention of his government to grant scholarships to Panamanian students to study at the Maritime University of Dalian. “Chinese investments are present in the maritime sector with the construction of the container terminal Panama Colon Container Port (PCCP), on the Atlantic side, on Isla Margarita, Colón, which is 30% complete, and when the project concludes, it will increase Panamanian ports capacity by 2.5m teu” said Barakat. Barakat encouraged the Chinese minister to continue promoting Panama so that Chinese companies can bet on this country for the development of port projects that will not only benefit Panama but also China to market their exports.

More hope than gloom in reading new Asia-Europe numbers from CTS

PostTime:2018-08-14 09:23:41 View:7

THERE are signs of improvement as rates recover despite disappointing first half volumes from Asia to North Europe that are at odds with other booming markets, reports the American Journal of Transportation. That's the cheery view arising from maritime analysts as they look at new numbers from London-area Container Trade Statistics (CTS) as westbound demand declined 1.6 per cent year on year in the second quarter, following on from an upwardly revised 1.8 per cent gain in the first three months. Revised data shows that container shipments from Asia to North Europe in the first six months of 2018 were almost identical to the first half of last year at nearly 4.9 million TEU.  According to the new numbers from CTS, westbound demand declined by 1.6 per cent year-on-year in the second quarter, following on from an upwardly revised 1.8 per cent gain in the first three months.  

Long Beach traffic drops 4.4pc to 688,457 TEU, but record year seen

PostTime:2018-08-14 09:22:00 View:8

THE Port of Long Beach handled 688,457 TEU in July, a year-on-year decline of 4.4 per cent. The fall in volumes was attributed to shipping alliances' decisions to change vessel deployment and port calls last month. Port officials also voiced fears that higher tariffs could slow trade activity - thus far the busiest in the port's 107-year history - during the remainder of the year, reported AJOT. A breakdown of the results shows that imports in July decreased by 8.2 per cent to 347,736 TEU, while exports were down five per cent to 119,747 TEU. Ships departing the port carried 220,975 empty TEU overseas, up 2.6 per cent. The port is on pace for 2018 being its busiest year ever, surpassing 2017. In the first seven months of the year volumes are 11.3 per cent over the same period last year, totaling 4.6 million TEU.  

Taiwan's Yang Ming widens loss to US$129.1 million as sales rise 1.1pc

PostTime:2018-08-14 09:21:06 View:5

TAIWAN's Yang Ming widened its year-on-year second quarter net loss to TWD3.8 billion (US$129.1 million) against last year's quarterly loss of TWD445 million. This year's quarterly revenues were TWD33.6 billion, up of 1.1 per cent. For the first half of 2018, Yang Ming's net loss was TWD5.8 billion against a net loss of TWD1.34 billion for the corresponding period in 2017 with revenues rising to TWD 64.6 billion, up 1.8 per cent. Container throughput was up 11.8 per cent in the second quarter to 1.3 million TEU while first half volume was up 10.3 per cent to 2.5 million TEU. Yang Ming said that unexpected fuel price increases drove up operating costs, with the average fuel price for the first half of the year increasing 25 per cent from the corresponding 2017 period. "Second-half performance is expected to improve due to stronger peak season demand and less new tonnage being introduced to the market. With these circumstances, ocean freight rates may rise as a result," Yang Ming said. Looking ahead, Yang Ming has approved the construction of ten 2,800-TEUers, which will be deployed on the intra-Asia market. In addition, there are five 14,000-TEU chartered vessels scheduled for delivery beginning in the fourth quarter of this year, as well as 10 12,000-TEU chartered vessels that will be delivered in 2020 and 2021.  Yang Ming said its equity, strengthened by the injection of $343.5 million in capital and a $255 million secured convertible bond issued on May 25, together with its increased government-related ownership to 45 per cent, will bolster its access to financing channels in Taiwan.

CSSC Marine Service planning expansion after rapid first year growth CSSC Marine Service planning expansion after rapid first year growth

PostTime:2018-08-13 10:34:01 View:14

China State Shipbuilding Corporation (CSSC) has welcomed the rapid growth of its exclusive marine equipment service platform, CSSC Marine Service (CMS), during its first twelve months of trading. Increasing demand for services offered by CMS has necessitated plans for service expansion, the details of which CMS will be communicating during the upcoming SMM exhibition in Hamburg between September 4 to September 7, 2018. CMS delivers life-time service for all CSSC-manufactured engines and products in addition to providing warranty handling for engine manufacturers HHM and CMD.  Since the company’s establishment in 2017, CMS has been steadily developing its capabilities and rapidly expanding to meet customer demand in parts supply, field services, dry docking, warranty support, maintenance agreements and remote monitoring services. A 24-hour hotline service commenced at the beginning of 2018 which is serviced by local service experts with back up support from CMS’ OEM licensors. Services offered enable CMS to fully support the current portfolio of engines available and to give ship owners confidence in ordering CSSC built equipment. The launch of CMS business by CSSC in June 2017 coincided with the inauguration of a new logistics centre located within the Yangshan free trade zone in Shanghai. Opened as a first step to enable quicker responses to customer needs, the logistics centre acts as the hub for CMS’s global distribution network with the aim to be capable and efficient in the delivery of key engine components on a global scale. The logistics centre comprises a 9,000sqm warehouse and distribution facility and is able to accommodate over 20,000 types of original small parts including fuel injection equipment, piston rings, pipes, flaps and valves, and large parts such as cylinder liners, covers and piston crowns. Built as a state-of-the-art facility, the centre hosts quality assurance monitoring and a hi-tech warehouse management system with a light identification process that enable the fast picking, packing and delivery of parts. In response to increasing demand for services offered by CMS, planning of future expansion is underway for currently represented service centres in Hamburg, Athens, Singapore, Houston and Dubai. In total six strategic service hubs and 28 service stations will be established worldwide by 2020. CSSC Marine Service president Andrew Stump said: “Since the company’s launch in 2017, CMS has rapidly gained traction in the market. We are quickly gaining customer trust and the result is the signing of an increasing number of maintenance and inspection agreements. Therefore, we are putting the key infrastructure in place in order to secure the continued expansion of our services in the marine sector.”

ZIM announces port calls on new Asia-USEC services with 2M

PostTime:2018-08-13 10:33:12 View:18

ZIM announced details of its new improved Asia-US East Coast (USEC) network following its recent tie-up with the 2M alliance. ZIM Transpacific trade evp Nissim Yochai said: ”The new alignment will enable ZIM customers to enjoy the best of both worlds: ZIM’s highly reputed personalized service, along with the best-in-market infrastructure and product.” As previously announced, the new network includes five services under the ZIM+2M cooperation, as detailed below: §  ZIM Container Service Pacific (ZCP) - Excellent service from North & Central China, South Korea to US Gulf, Caribbean and South Atlantic, with Fast Transit Time from North Asia to South Atlantic, New calls in Xingang, Wilmington, Jacksonville and Pusan Westbound, and Connectivity to Halifax/ Caribbean/ US Gulf via Kingston §  ZIM Big Apple (ZBA) - Best connection from South and Central China and South Korea to North Atlantic, Fast Transit Time to New York; Unique call in Baltimore; Import cargo to India Sub Continent and South East Asia §  ZIM Seven Stars (Z7S) - Fast Transit Time from South China, Vietnam and South East Asia to US East Coast; New direct calls Miami, Charleston and Singapore §  ZIM Sunny Atlantic Express (ZSA) - Express service from Taiwan, China and South Korea to South Atlantic; Fast Transit Time from Asia to Savannah; New direct calls in Xiamen and Miami §  ZIM New Frontier (ZNF) - Express service from Thailand, South East Asia and India Sub-Continent to US East Coast; Fast Transit Time from South East Asia and India Sub Continent to New York; New direct call in Laem Chabang; New direct call in Singapore; Fast Transit Time from Thailand to US East Coast The new schedules will kick off with the first sailing of the 8,648 teu Columbine Maersk on the ZIM Seven Stars service from Chiwan on September 12. This vessel is currently already running services to USEC for Maersk. The partners had previously announced 2M would be operating four of the five loops with ZIM taking up the last one.  

Hapag-Lloyd Testing Scrubbers, LNG as Fuel ahead of 2020

PostTime:2018-08-13 10:31:54 View:15

German container shipping company Hapag-Lloyd revealed in its half-year results that it is preparing two pilot projects as a way of getting ready for the IMO’s 2020 sulphur cap. Namely, the company is testing exhaust gas cleaning technology (scrubbers) on two large containerships and exploring the benefits of LNG as fuel. The announcement emerges as the German liner comes to grips with available options to become compliant with the incoming regulations that are likely to result in numerous headaches and additional costs for liners. As the two projects are still under development, Hapag-Lloyd added that it will not invest heavily in new ship systems until 2019. Among the most popular options for becoming compliant with the new environmental regulations on the table are scrubbers, LNG as marine fuel, and low sulphur fuel, which will be much more expensive than heavy fuel oil once the regulation comes into force. The company said earlier that the majority of liner companies will have to pick low sulphur fuels as a way of conforming with the 2020 sulphur cap. This is in part due to the restricted supply of scrubbers and shipbuilders’ capacity to install them. What is more, many liner companies were hesitant to invest in the technology as it is likely that new regulations would come into force banning discharge of washwater from open-loop scrubbers in certain areas, making the issue even more complicated for shipowners. On the other hand, LNG retrofits have been the preferred option for newbuilds, but the technology is still in its infancy when it comes to application to large containerships. In addition, LNG retrofits require considerable investments, even if there are no space constraints on board the vessel. Hence, owners need to tread their own path to compliance and find the best solutions that fit their fleets. Nevertheless, one thing is clear, there will be no delays when it comes to the compliance deadline. Due to rising bunker costs and slower than expected recovery of freight rates Hapag-Lloyd booked a net loss of EUR 100.9 million (USD 115.6 million) for the first half of the year.

Maersk, IBM launch TradeLens blockchain platform with 94 signed up

PostTime:2018-08-13 10:31:45 View:20

Rapidly following through on its January announcement planning to set up a blockchain platform, AP Moller–Maersk and IBM have launched TradeLens, jointly developed by the two companies to apply blockchain to the world’s global supply chain. The open standard platform for trading and supply chains already has 94 organisations signed up including key port players such as Port of Rotterdam, PSA Singapore, International Container Terminal Services Inc (ICTSI) and Hong Kong’s Modern Terminals, the partners said in a press release. Others among the more than 20 global port and terminal operators in TradeLens ecosystem include Patrick Terminals, Port of Halifax, Port of Bilbao, PortConnect, PortBase, as well as Holt Logistics at the Port of Philadelphia, which join the global APM Terminals’ network in piloting the solution, making up for some 234 marine gateways worldwide that have or will be actively participating on TradeLens. Liner participation seems somewhat muted for now with just Pacific International Lines (PIL) joining Maersk Line and its Hamburg Süd unit signed up. PIL, PSA International and IBM had previously been involved in a Proof of Concept transporting a container from Chongqing to Singapore via the Southern Transport Corridor. Other key parties onboard include customs authorities in the Netherlands, Saudi Arabia, Singapore, Australia and Peru along with customs brokers Ransa and Güler & Dinamik. Meanwhile from the cargo side, participation is coming from beneficial cargo owners (BCOs) including Torre Blanca / Camposol and Umit Bisiklet as well as freight forwarders, transportation and logistics companies including Agility, CEVA Logistics, DAMCO, Kotahi, PLH Trucking Company, Ancotrans and WorldWide Alliance. Interestingly, CMA CGM recently bought an almost 25% stake in CEVA Logistics. TradeLens uses IBM Blockchain technology as the foundation for digital supply chains, empowering multiple trading partners to collaborate by establishing a single shared view of a transaction without compromising details, privacy or confidentiality. Shippers, shipping lines, freight forwarders, port and terminal operators, inland transportation and customs authorities can interact more efficiently through real-time access to shipping data ad shipping documents, including IoT and sensor data ranging from temperature control to container weight. Using blockchain smart contracts, TradeLens enables digital collaboration across the multiple parties involved in international trade. The trade document module, released under a beta program and called ClearWay, enables importers/exporters, customs brokers, trusted third parties such as Customs, other government agencies, and NGOs to collaborate in cross-organizational business processes and information exchanges, all backed by a secure, non-repudiable audit trail. During the 12-month trial, Maersk and IBM worked with dozens of ecosystem partners to identify opportunities to prevent delays caused by documentation errors, information delays, and other impediments. One example demonstrated how TradeLens can reduce the transit time of a shipment of packaging materials to a production line in the United States by 40%, avoiding thousands of dollars in cost. Through better visibility and more efficient means of communicating, some supply chain participants estimate they could reduce the steps taken to answer basic operational questions such as “where is my container” from 10 steps and five people to, with TradeLens, one step and one person. More than 154m shipping events have been captured on the platform, including data such as arrival times of vessels and container “gate-in”, and documents such as customs releases, commercial invoices and bills of lading. This data is growing at a rate of close to 1m events per day. Traditionally, some of this data can be shared through the EDI systems commonly used in the supply chain industry but these systems are inflexible, complex, and cannot share data in real-time. Too often, companies must still share documents via email attachment, fax and courier. TradeLens can track critical data about every shipment in a supply chain, and offers an immutable record among all parties involved. “TradeLens uses blockchain technology to create an industry standard for the secure digitization and transmission of supply chain documents around the world,” commented Peter Levesque, ceo of Modern Terminals. “This initiative will generate tremendous savings for our industry over time while enhancing global supply chain security. Modern Terminals is pleased to participate as a Network Member in testing this exciting shipping industry innovation.” CEVA Logistics cio Christophe Cachat  said: “As a global logistics provider, CEVA sees a unique opportunity in TradeLens, joining forces with IBM, Maersk and other actors from our industry to promote global standards around an open and neutral solution, delivering on the promise of blockchain. It is an important step in our relentless journey to deliver increased value to all our customers and making business flow.” “We believe blockchain can play an important role in digitizing global shipping, an area of the global economy that moves four trillion dollars of goods every year. However, success with the technology rests on a single factor –bringing the entire ecosystem together around a common approach that benefits all participants equally,” said Bridget van Kralingen, svp, IBM Global Industries, Solutions and Blockchain. “Our work with Maersk and other enterprises in the shipping ecosystem has shown that blockchain can be used to form a strong, connected network in which all members gain by sharing important data and that together we can transform a vital part of how global trade is conducted.” Joint collaboration model to maximize industry adoption Since announcing the jointly developed solution to digitize global trade in January 2018, and based on feedback from various members of the global supply chain ecosystem who expressed interest to adopt the technology, IBM and Maersk have modified the go-to-market model and will now deliver their solution through an extension of their pre-existing collaboration agreement instead of a joint venture. “Our joint collaboration model allows us to better address key feedback from ecosystem participants while ensuring TradeLens interoperability and data protection among Maersk, IBM and all ecosystem participants,” said Mike White, TradeLens leader for Maersk. “We strongly believe this will maximize industry adoption.” Standards discussions are actively underway with openshipping.org and work to align the TradeLens APIs with UN/CEFACT standards is in progress. The TradeLens APIs are open and available for developer access and feedback from participants in the platform. The TradeLens solution is already currently available through the Early Adopter Program and is expected to be fully commercially available by the end of this year.  

Keppel pulls plug on Azerbaijan yard

PostTime:2018-08-13 10:30:20 View:5

Keppel Corp has effectively pulled out of Central Asia after dropping the Baku Shipyard, its last remaining facility in a region that was once touted as being full of oil and gas potential. The group said in a stock market announcement that its management and operating contracts with the joint venture yard in Azerbaijan had been terminated, although Keppel Offshore & Marine (KOM) retains an 8.5% stake in the joint venture. KOM in 2013 established together with State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) the shipbuilding and shiprepair facility in Baku, Azerbaijan. KOM had been managing and operating the facility but amid the slump in the global oil and gas industry, the Singapore-based multinational looks like it has pulled the plug on this segment. The termination of the agreements effective June 30, 2018 were made “following the successful development, start-up and initial operational phases of Baku Shipyard, and in view of the updated operational requirements based on current business conditions,” Keppel said in its announcement, adding that management of the yard has been handed over to SOCAR. Earlier this year, KOM wound up Caspian Shipyard Company, its other joint venture yard in Azerbaijan which it established in 1997, after letting the joint venture agreement lapse. Meanwhile in 2014, KOM had reportedly bailed on Kazakhstan after selling its stake in Keppel Kazakhstan. This yard had seen few orders apart from a barge building contract in 2006 and one jack up rig in six years later in 2012. Meanwhile a strike had plagued management in 2013, soon after the contract to build the only jackup.

Hong Kong economic growth slows to 3.5pc from 4.7pc: HK Government

PostTime:2018-08-13 10:28:03 View:4

HONG KONG's economic growth slowed with GDP growing 3.5 per cent in the second quarter compared with 4.7 per cent in the first, reported Bloomberg.  Despite this the Hong Kong Government continued to maintain its full-year forecast of between three and four per cent growth in 2018. Container throughput shrank throughout the first half of 2018 compared to 2017, amid fierce competition from mainland China ports. The Port of Hong Kong's lost its place as the fifth busiest to Busan this year. "We do not see Hong Kong regaining its top five spot and expect Busan to extend the lead over Hong Kong as the year progresses," said Rahul Kapoor, a Singapore-based transportation and logistics analyst with Bloomberg Intelligence. As a key trading hub for the flow of goods, services and capital between the world's two biggest economies, Hong Kong is vulnerable to second-round effects as China and the US impose tariffs on each other's products. While official forecasts show limited impact because the territory isn't subject to US tariffs on China due to the United States-Hong Kong Policy Act, the worry is that volumes will decline as production and shipping get moved elsewhere in Asia to avoid getting hit by the new duties.

CMA CGM to increase its Asia-Red Sea rate US$200/TEU from August 19

PostTime:2018-08-13 10:27:13 View:9

FRENCH shipping giant CMA CGM has announced new freight all kinds (FAK) rate increases of US$200 per TEU from Asia to Red Sea ports on rates set at $1,000 per TEU and $1,800 per FEU. Calling the increase a "rate restoration" CMA CGM said the new pricing would take effect from August 19 from all Asian ports to Red Sea ports and apply to dry, OOG, breakbulk and reefer cargo.