SHIPPING NEWS UPDATED 17TH NOVEMBER 2016

Air Freight News :

Ancra receives FAA Certification for CRJ200 SF cargo loading systems.

·         Ancra International has received Federal Aviation Administration (FAA) certification in the US for the cargo loading system for the CRJ200 SF passenger to freighter (P2F) conversion by Aeronautical Engineers Inc’s (AEI).

The system is capable of carrying eight 61.5" x 88" ULDs OR eight 62" x 88" ULDs; Ancra also offers a kit to facilitate the rapid reconfiguring of the loading system between the two cargo transport options.

Ancra currently provides all of the cargo loading systems for AEI’s P2F aircraft conversions including the Boeing 737-300SF, 737-400SF, MD-80SF, CRJ200 SF and the 737-800 conversion currently in development.

Hactl ground handling certification first in Hong Kong.

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Hong Kong Air Cargo Terminals Limited (Hactl) has become the first handler in Hong Kong to be certified under the IATA Ground Operations Manual (IGOM), signifying its full compliance with the new standardised procedures.

Through IGOM, IATA is driving the adoption of a single industry ground operations manual, to replace the vast array of separate manuals and standards currently in use throughout airlines, ground handlers and airports around the world.

IGOM’s goal is to establish global standardisation of policies and procedures, a uniform minimum level of safety and a standard set of policies and procedures for use in IATA Safety Audit for Ground Operations (ISAGO).

Applying IGOM standards is expected to drive costs down by reducing the complexity associated with multiple airline ground operations manuals, standardise training requirements and reduce the incidence of aircraft damage by applying common and robust procedures.

Leaping at Oslo: ABC the latest to launch services targeting salmon demand.

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AirBridgeCargo Airlines (ABC) is the second airline within the last few weeks to launch a freighter services from Oslo that aims to capitalise on the seafood market.

The scheduled all-cargo airline will offer two services a week between the Norwegian city and Moscow Sheremetyevo utilising a Boeing 747 freighter, which can carry more than 100 tonnes per week. The service will also cater for the country’s oil and gas industry.

“Global demand for Norwegian seafood, and especially salmon, continues to make a significant and growing contribution to the country’s economy,” the airline said.

Norway now exports 220,000 tonnes of seafood a year, 600 tonnes a day, using air cargo services to Asia and North America.

Judge rules that ATSG dispute with pilots should go to arbitration.

·         A judge has ruled that the dispute between US freighter lessor Air Transport Services Group (ATSG) and its pilots should be resolved through a grievance and arbitration process.

Judge Timothy Black of the US District Court for the Southern District of Ohio said that the dispute is a minor dispute under the US Railway Labor Act and should be resolved through the current labour agreement between the two parties.

ATSG initiated court action in the US against two unions who want the company’s subsidiary cargo airlines, ABX Air (ABX) and Air Transport International (ATI), to be defined as a single system. The complaint was filed by ABX.

The pilots are represented by the International Brotherhood of Teamsters, Airline Division and the Airline Professionals Association of the International Brotherhood of Teamsters, Local 1224 (collectively, the IBT).

The two unions contend that ATSG has operated the two carriers “as a single transportation system while maintaining a facade of two separate carriers”.

Sea Freight News :

The shipping sector is gradually embracing renewable energy: Shipping secretary Infra Circle ndia’s shipping ministry initiated a slew of measures for the maritime sector in the past two years to increase the country’s port cargo traffic to 2.5 billion tonne (BT) from 1 BT at present. Shipping secretary Rajive Kumar, who took charge on 1 December 2014 and belongs to the 1981-batch of the Indian Administrative Service from the Uttar Pradesh cadre, in an emailed interview outlines the contours of the National Democratic Alliance government’s ambitious Sagarmala programme, inland waterways scheme and the push for green energy. It’s been a constant endeavour of the ministry of shipping to promote use of renewable energy. Earlier, most lighthouses under the Directorate General of Lighthouses and Lightships (DGLL) were operating on conventional sources of energy which consumed fossil fuels and emitted high amount of carbon dioxide increasing greenhouse effect and causing air pollution.

Centre aims at import substitution for all major minerals Business Standard In line with the coal ministry's move to increase domestic coal production aiming for import substitution, the union mining ministry is also aiming for the same and results have started reflecting on the iron ore production and sales trend this fiscal year. Compared to the production of 66.85 million tonne (mt) of iron ore in the first half of the last fiscal year, India surpassed the previous year's production by 18.15 mt or 25.85 per cent in the April-September period this year. "So far, we have clocked a production of 84 mt and aim to substitute import of all critical metals which are found in India", Balvinder Kumar, secretary at the union ministry of mines said here. As per Kumar, compared to the 7.09 mt import of iron ore in the last fiscal year, India imported only 1.59 mt of the ore in the April-August period. The aim of import substitution is in sync with the steel production in the country rising by 8.5 per cent during the April-September period at 7.8 per cent.

KCCI opposes proposal from NMPT to develop berth 8 as container terminal on PPP mode Times of India Kanara Chamber of Commerce and Industry (KCCI) has raised objection to a move by New Mangalore Port Trust (NMPT) for development of container terminal at berth number 8. The chamber has shot off separate letters outlining its detailed objections to the same to the Tariff Authority for Major Ports (TAMP), union minister of road and transport, highway (MoRTH) and shipping Nitin Gadkari, and DK Member of Parliament Nalin Kumar Kateel. Jeevan Saldanha, president, KCCI told reporters that berth identified for the project is the old berth 14 (new berth 8), which is a premium berth of the port with a draft of 14 metre and length of 260 metres. Handing this berth to a PPP operator for handling containers is sheer waste of national resource, he said adding container vessels calling on NMP have draft of 10.5 metres. The 3.5 metres of available depth of water goes waste as vessel of higher deadweight can utilize the same, he contended adding that this berth has highest berth occupancy compared to all other dry bulk cargo berths at NMPT.

Adani Ports Adds Three RMGCs in Mundra Marine Link dani Ports & Special Economic Zone Ltd (APSEZ), India’s largest port developer, has recently made an addition of three new Rail Mounted Gantry Cranes (RMGC), for their container rail terminal in Mundra. The RMGCs, expected to be operational by this month end, was offloaded on October 7, as part of enhancing the handling capabilities of Inland Container Depot (ICD) bound containers in Mundra port. “Mundra is the only port in India having 21st century infrastructure. Adding these new RMG cranes will be a game changer for rail container operations, as this goes in line with the Chairman’s vision of supply driven infrastructure & automation for faster evacuation of containers and quick turnaround of container trains. The new added cranes also falls in line with APSEZ’s Green Port drive as they run on electricity and will reduce the carbon footprint of the rail handling facility” said Mr. Ennarasu Karunesan, CEO APSEZ – Mundra & Tuna Ports.

GST offers opportunity to ‘go digital’ Live Mint The countdown to the roll-out of the goods and services tax, or GST, has begun. The government, enterprises, regulators and consumers are gearing up to handle the tax implications of “one-country one-market structure”. A lot has already been written about how enterprises can prepare for GST. However, in my opinion, GST is not just a financial reform, but a broader business reform. It has the potential to relook at how enterprises conduct their business in India. With GST, enterprises have an opportunity to revamp systems, go beyond the physical constraints of supply chain, and focus on what matters the most for any business—customer experience! It doesn’t just stop there. With delinking of the physical footprint from direct tax implications, enterprises can use this opportunity to move beyond physical structures, ‘go digital’ and provide digital experiences.

Container terminal grabs export market The Hindu A year after its formal inception, the Kakinada Container Terminal Private Limited (KCTPL) has started making strides by sending commodities weighing about 26,000 tonnes a month to the African countries, West Asia and the United States via Colombo. As of now rice is the major commodity being exported from the terminal, while seafood and cashew are in the pipeline. From loading containers to one vessel in January this year, the facility is now stacking the loads to three ships a month. A joint venture of the Kakinada Seaports Limited (KSPL) and the Bothra Shipping Services Private Limited, the company waited for a couple of months to commence the operations after its formal launch. Since then, the exports graph has been surging with more and more small-time rice exporters from the region booking the containers. In the last 11 months, containers have been loaded to 26 ships, including the coastal (domestic) and international ones.

GST be made export friendly: EEPC India Web India In their pre-Budget memorandum to the Union Finance Ministry, exporters in India have urged the credit refunds under the impending Goods and Services Tax (GST) be made efficient to the extent that automatic system of tax credits be brought into operation. Besides, multiple Advance Ruling (AR) centres at the Central and state levels be set up to bring about certainty for exporters. "What credit can accrue, what cannot accrue, what is exporter's liability and what is due to him can be brought about by the AR, thus helping the export sector," according to former chairman of Engineering Export Promotion Council (EEPC) India P K Shah.He said the engineering sector also demand that all products made of steel should be compensated by higher drawback rates since the protection given to large steel manufacturers against imports has resulted into higher cost of production for exporters, particularly for the small and medium enterprises.

Throughput at Port of Hamburg Up Slightly Maritime Professional At 104.9 million tons, total seaborne cargo throughput for the first three quarters of 2016, covering general and bulk cargo segments, was up 0.3 percent on the previous year. “Seaborne cargo throughput in the Port of Hamburg has stabilized and for the first three quarters of 2016 again increased. Seen separately, the third quarter with a 2.7 percent upturn to 34.7 million tons underlines the upwards trend. Both general and bulk cargo volumes developed positively for Germany’s largest universal port,” said Axel Mattern, Joint CEO of Marketing. The trend for seaport-hinterland rail transport was also maintained. “By comparison with other leading European ports, in the first three quarters of 2016 Hamburg further expanded freight volumes transported by rail. Transporting 35.5 million tons of freight and 1.8 million TEU, representing gains of 3.1 percent and 1.9 percent, rail once again achieved a substantial advance,” reported Ingo Egloff, Joint CEO of Port of Marketing.

K Line faces criminal cartel charges by Australian authority Seatrade Maritime The Australian Competition and Consumer Commission (ACCC) has pressed criminal charges against Japan’s Kawasaki Kisen Kaisha (K Line) in relation to alleged cartel conduct over the shipping of cars, trucks and buses to Australia. The alleged period of cartel operations by K Line was between July 2009 and September 2012, according to ACCC. The matter was before Australia’s Downing Centre Local Court for a first mention on 15 November 2016. “This is the second matter in which criminal charges have been laid against a corporation under the criminal cartel provisions of the Competition and Consumer Act 2010,” ACCC said. Nippon Yusen Kaisha (NYK), another Japanese shipowner, pleaded guilty to similar charges brought by ACCC in July this year. NYK faces a maximum fine of which ever is greater of AUD10m ($7.6m), three times the benefit obtained, or if this cannot be determined 10% of its annual turnover in Australia.

Korea Line to buy Hanjin Shipping assets in surprise court decision Sea News In a surprise decision, a South Korean court has awarded shipping operator Korea Line Corp. to acquire the assets of bankrupt Hanjin Shipping after outbidding Hyundai Merchant Marine Co. (HMM) by offering better terms, including retaining workers. The midsize bulk-shipping operator has been granted the first right to purchase the assets of Hanjin's Asia-US route, as well as its stake in a California terminal. The judge at the Seoul Central District Court, which is handling Hanjin's insolvency proceedings, said it chose Korea Line over Hyundai Merchant Marine Co., which had been expected to win. Hyundai Merchant was backed by senior government officials and its main creditors, which said they would promote the company as the country's largest ocean going carrier, The Wall Street Journal reported. "Korea Line proposed better terms, including higher prices," the judge said. "It also offered to take over more Hanjin employees."

Ship carrying no cargo entitled to loading capacity reduction of fairway dues Hellenic Shipping News According to Section 11 of the Fairway Dues Act, the amount of fairway dues will be reduced if a ship is not fully loaded according to the particular loading capacity utilisation rate, which is calculated by comparing the combined total of cargo imported into and exported out of Finland. According to the legislature, reducing fairway dues as a result of reduced loading capacity is based on established practice and is therefore necessary to include in the act. However, the established practice is not explained anywhere and Section 11 has therefore been subject to considerable interpretation. For example, there was some dispute over whether transit cargo (ie, cargo on a ship from outside Finland which is not unloaded in Finland) should be ignored or taken into consideration only once when calculating the loading capacity utilisation rate. This was clarified in 2014 when Section 11 stipulated that transit cargo is added to both imported and exported cargo.

Lloyd’s Register launches new decommissioning service Hellenic Shipping News In-depth technical knowledge, cost estimation and determining decommissioning risk liabilities make it easier for companies to plan and execute with confidence against a challenging low oil-price market. “Operators are faced with a huge challenge and conflict between maximising economic recovery, a low oil price and decommissioning on the horizon,” says Alasdair Buchanan, Energy Director at Lloyd’s Register. “We understand decommissioning requires an investment with little to no return for operators, accompanied by an element of ambiguity globally about the requirements set by regulators and uncertainty on long term liability. The onus is on operators to execute decommissioning in the most cost effective manner, especially in jurisdictions such as the UKCS where tax relief is available on decommissioning activities.”

Dry Bulk Shipping – The overweight on Dry Bulk is paying off handsomely in Dry Bulk Market Sea News We have earlier advocated that “ the normalisation process will lead to great opportunities even with incremental gains in the underlying markets as discount to Net Asset Values narrow. With the market bottoming out, we place our bets on the dry bulk names with high operating leverage and considerable exposure to the spot market. We expect the uptrend in freight rates to mirror in asset prices, which in turn, will have an amplified effect on stock prices. For existing players and asset markets, valuations have very little downside in our view. Bankruptcy risk which was being priced across stocks has significantly eased as key players raised equity and continue to restructure debt and balance sheets. We expect freight markets to recover gradually in the remaining months of the year as Chinese stimulus flows through the industrial economy, providing opportunities to add exposure to dry bulk on correction as we believe the worst is behind us.”

Shippers raise concerns over consolidation in global container shipping Seatrade Maritime The European Shippers’ Council (ESG) and the Global Shippers’ Forum (GSF) have joined forces to raise concerns over the impacts of new container shipping ‘alliances’ and their increasing use of 18,000 teu mega-ships. Shippers are fearing that the contraction or consolidation of the shipping market into a very small number of tightly knit alliances, and the use of much larger ships, will reduce their choice of carrier and the quality of the services delivered. The shippers argued that carriers operating within such arrangements cannot compete amongst themselves with regard to the agreed capacity, sailing frequency, transit times, ports of call and service level. The ESG has joined GSF to promote the findings of a new research and analysis, titled ‘The Implications of Mega-Ships and Alliances for Competition and Total Supply Chain Efficiency: An Economic Perspective’, commissioned by GSF.