Friday, 10 March 2017

DAILY SHIPPING NEWS - WEDNESDAY MARCH 08, 2017

Free period reduced from 72 hours to 48 hours in all Airports / Air Cargo Complexes in India w.e.f. April 01, 2017.

This is no April Fool sort of news. Please open the attachment for the copy of Notice received from Ministry of Civil Aviation in this regard.

So, please discuss with your CHA’s to clear the shipment within 48 hours which is applicable from the segregation time reflected in ICEGATE.

Jupiter Sea & Air Services P. Ltd. is well equipped with adequate manpower working in 2 shifts to help all our customer’s to receive their air and sea import shipments within 2 days usually. 

In case you need our assistance for custom clearance of your Air import shipments, please do send us your enquiries and we shall help you to avoid demurrage and ensure your supply chain / production is not interrupted.


Air Freight News :

Heathrow cargo growth outpaces passengers.

·         Heathrow Airport saw a 3% rise in cargo volumes for full year 2016 to 1.54m tonnes, attributing the rise to a £674m investment in the airport and new services to Jakarta, San Jose, Santiago and Inverness.

The increase contributed to a 1.5% increase in earnings for the airport’s operations as a whole, to £2.8bn from £2.7bn in 2015, with cargo growth outstripping passengers, which were up by only 1%, albeit to a record 75.7m.

Chief executive John Holland-Kaye described 2016 as “a milestone year for Heathrow” as the government announced its support for the long-awaited third runway and launched a four-month public consultation on a National Policy Statement.

He said: “I am very proud of what our 76,000 colleagues have achieved. We helped British businesses across the country trade more with the rest of the world.”

South African airports plan for an upswing.

·         Perishables centre at Johannesburg’s OR Tambo International
Airports Company South Africa (ACSA) is taking steps to ease congestion at the country’s major cargo gateways, particularly Johannesburg’s OR Tambo International, it revealed at Air Cargo Africa.
Speaking after the show, OR Tambo International general manager Bongiwe Pityi said that the airport wanted to expand warehouse space in the short term and develop capacity through infrastructure improvements in the longer term.
She said that while air cargo tonnages are currently under pressure, new infrastructure is needed to ensure that maximum advantage can be taken of the next upswing.
Total air cargo processed through the gateway in 2016 was 350,500 tons, about 10% down on the preceding year due to a fall in global trade. In spite of this dip, Pityi said that cargo facilities are already operating at close to capacity.
“The balancing act is to have infrastructure in place for when economic conditions turn, but not so far in advance that it creates an unreasonable cost burden,” said Pityi. “No one likes a white elephant, but it would be most unfortunate if the infrastructure is not there when it’s needed most.”
Shippers want progress on air cargo digitisation.

·         
Lars Droog, head of supply chain and general affairs for Tosoh Corporation
A new position paper from TIACA’s Shippers’ Advisory Committee (SAC) has urged the air cargo industry to work together to drive adoption of new technology to improve data flow and create greater transparency.
The paper, which is supported by the Global Shippers Forum (GSF) and the European Shippers' Council (ESC), identifies several short-term goals which include investigating a logistics data backbone solution and which also champions innovative technology such as smart labels and intelligent boxes as ways to increase transparency.
“At the moment, the air cargo supply chain requires 21 documents to be sent 40 times, in 20 steps,” according to the SAC paper. "It is complicated, it is expensive, it is outdated, it is slow.
“A decentralised open platform with a shared collaborative environment would enable seamless integration and real time visibility over freight.
“We would be eliminating data re-entry and errors, instead having first-time-right data, updated by real time events and maintained to reflect one version of the truth.”
“This is a high level document which will start an important dialogue for the industry,” said SAC chairman Lars Droog, head of supply chain and general affairs for Tosoh Corporation.
“Each shipper faces different challenges and has different needs and, in the coming months, we will explore these as part of the conversation. It is only by working together that we will be able to get results and improve the industry.”

SAC was formed last year and aims to bring the voice of the shipper to existing discussions and initiatives, as well as spark debate on how to innovate, be it adopting new process, or new technology.

E-AWB penetration down in January.

·         
The latest figures from IATA show that electronic air waybill (e-AWB) penetration declined in January compared with December.
The latest e-AWB statistics show that penetration slipped to 48.5% in January compared with 49.2% in December last year.
The volume of e-AWBs processed down in the month, with the industry using 639,582 e-AWBs in January compared with 687,774 in December.
The industry aims to have reached an e-AWB penetration level of 62% by the end of the year. It is not the first time e-AWB usage has declined – in March last year there was also a decline.
As part of the process to encourage further e-AWB adoption by airlines and forwarders, IATA has launched an e-AWB implementation playbook in pdf format, which presents the different steps to go through for successful implementation.
The historic challenges to e-AWB implementation remain and include such factors as e-AWBs are not possible in all airports and all trade lanes due to regulatory limitations.

E-AWB procedures are not harmonised between freight forwarders, airlines and ground handling agents in key airports where e-AWB is live.

DAILY SHIPPING NEWS - TUESDAY MARCH 07, 2017

Air Freight News :

First flight for Tunisia's Express Air Cargo.

 ·         New Tunisian freighter operator Express Air Cargo has completed its first commercial flight, operating a Boeing 737-300F between Tunis and Paris Charles de Gaulle on February 25.
The airline took delivery of the aircraft in mid-January after it went through a series of inspections and said it would be taking delivery of a second aircraft in the coming weeks.
The company eventually aims to offer daily connections between 15 countries in north and west Africa and Europe. Its eventual fleet will consist of B737-300Fs, B737-400Fs, ATR-72s and Cessna-208B.
As well as the express sector, it will also target pharma, perishables, live animals, dangerous goods and charter markets. It hoped to include integrators including UPS, DHL, TNT, FedEx, Aramex amongst its customers.
The airline was originally due to launch in January 2016 and then again in September. FL Technics is acting as the airline’s maintenance, repair and overhaul service provider.
When news of the airline first emerged in late 2015, UPS were rumoured to be investors, but in the end the deal did not go through.
ABX Air pilots agree settlement.

·         
ABX Air has reached a settlement with its pilot unions on a dispute which had grounded 75 flights for DHL and Amazon over two days late last year.
The ABX Air agreement by the Air Transport Services Group (ATSG) subsidiary allows pilots to take compensatory days off after working on their days off to cover flights due to alleged staffing shortages at the US-based freighter lessor.
A statement by the unions, the International Brotherhood of Teamsters Airline Division and the Airline Professionals Association, Teamsters Local 1224, said: “This resolution puts an end to the issue that prompted the pilots to walk off the job: pilots were regularly forced to work overtime and called out on emergency assignments on their days off, creating strain and keeping pilots away from their families.
“The pilots were not permitted to take the compensatory days off provided for in their contract. Still, pilots are concerned that the airline will not have enough pilots given the growing pilot shortage.”
ABX Air has yet to comment publicly on deal, which in early December 2016 saw a US district court judge support an ATSG application to extend a temporary restraining order stopping ABX Air pilots from going on strike into one banning work stoppages and other service interruptions.
The unions said that the agreement “eliminates a large backlog of accrued, earned days off – which had aggravated the staffing shortages – and restores the pilots’ right to use any new days they earn starting in March”.
A labour arbitrator will decide whether ABX Air can put any new restrictions on that right
China Airlines signs with WFS in Chicago.

·         
China Airlines has signed a new cargo contract at Chicago O’Hare International Airport with Worldwide Flight Services (WFS), extending its 19-year old relationship with the handler in North America.

WFS now handles for the Chinese carrier at five US locations. WFS won its first contract with China Airlines in North America in 1998 at New York JFK, where it continues to handle 47,000 tonnes a year for the airline. It also handles cargo for the carrier in Dallas/Fort Worth and Houston and manages its passenger and ramp operations in Honolulu.

Under the latest agreement, WFS will handle up to seven direct flights a week between Chicago and Taipei, with the estimated 56,000 tonnes of cargo per year, contributing to an overall total of over 130,000 tonnes of cargo in North America.

WFS senior vice president, sales and business development for WFS in North America, Ray Jetha, said that China Airlines is one of the handler’s biggest customers in the US. “Over nearly two decades of working together we have gained a strong understanding of the airline’s service requirements.

"We have demonstrated our ability to deliver the quality and reliability expected and sincerely appreciate the airline’s continued confidence in WFS.”

WFS strengthened its presence in North America a year ago with the acquisition of Consolidated Aviation Services, and now operates 54 stations there with 8,000 employees serving 63 airlines

Sea  Cargo  News :

Maersk Line today stopped booking export containers from Europe to Asia and the Middle East, according to market sources, while capacity is said to be extremely tight for other lines.

Air freight could feel the benefit, if the capacity crunch continues, according to one forwarder.

Maersk’s block on bookings runs until 27 March, but the situation will be reviewed on the 13th.

The only cargo exemption is when a prior space commitment has been given, according to a memo seen by The Loadstar.

A spokesman for Maersk said: “We can confirm that exceptionally high demand on North Europe to Asia trade has led to challenges with space availability and, consequently, to potential issues with the acceptance of bookings to our customers.

“We are currently reviewing all possible options to minimise this issue and thus reduce the impact to our customers’ business. We will stay in close touch with them to propose best options for securing the smoothest possible flows of their cargo.”

One Dubai logistics expert told The Loadstar the capacity problem was not restricted to Maersk.

“All carriers are congested beyond belief. It’s just like 2013, when there were no bookings for three months. I imagine a lot of carriers are repositioning vessels for the alliances. They are not running to their schedules.”

Ocean carriers blanked an estimated one-third of all westbound voyages in the first week of the Chinese new year holiday at the end of January, and this increased to almost 50% of sailings for the second week.

As a consequence, the respective eastbound voyages were also blanked – thought to be the main reason for the backhaul capacity crunch.

However, it appears likely that the tight booking situation on 2M alliance vessels has worsened with the perception that Maersk and MSC’s competitors will face some disruption from the reshuffle for the new alliances on 1 April.

Indeed, with just a few weeks remaining until the launch of THE Alliance, its UK hub port(s) has still not been officially announced. UK export customers of Hapag-Lloyd, Yang Ming and the Japanese trio of K Line, MOL and NYK are thought to be struggling to organise supply chains.

A beneficiary of the situation, should the block on containership bookings continue, would be air freight.

“They will have to switch to air freight, if the alternative is factory closures,” said one European forwarder.

“It has got to have an impact. They will need to air freight a certain amount. It will matter to European importers, less so to exporters.”

While one airline confirmed it had heard about the situation and was booked up for three months, charter broker Chapman Freeborn said it had seen no evidence of any additional demand and that forwarders had not reported problems with sea freight.

One European air freight forwarder said: “My understanding is that the main issues have been experienced by waste exporters. They typically demand low freight rates, although they have volume, but are usually first to be hit when things are tight and higher margin business is available. They would never consider air freighting this as there is such little value in the ‘product.”

Although Maersk has been the subject of export shipper concerns, it is understood that its 2M partner, MSC, has also introduced some “booking restrictions”. And another Felixstowe-based carrier told The Loadstar today “export space is tight at the moment”.

Meanwhile, as previously reported by The Loadstar, Asia-Europe eastbound rates have soared in the past month – Maersk Line’s FAK (freight all kinds) backhaul rates for March are higher than their headhaul equivalent.


Furthermore, freight rates for high-volume export commodities, such as wastepaper and cardboard for recycling in China, have been hiked even higher, with Maersk charging $2,125 per 40ft from Felixstowe, compared with $1,600 for other commodities.

DAILY SHIPPING NEWS - FRIDAY MARCH 03, 2017

Custom Exchange Rates with effect from Friday March 03, 2017 :

Sl.No.
Foreign Currency
Rate  of   exchange  of   one    unit   of foreign    currency     equivalent    to Indian rupees
(1)
(2)
(3)


(a)
(b)


(For Imported
Goods)
(For Export
Goods)
1.
Australian Dollar

52.10

50.30
2.
Bahrain Dinar

183.50

171.25
3.
Canadian Dollar

50.90

49.25
4.
Danish Kroner

9.65

9.30
5.
EURO

71.55

69.10
6.
Hong Kong  Dollar

8.70

8.50
7.
Kuwait Dinar

226.05

211.65
8.
New Zealand Dollar

48.55

46.85
9.
Norwegian Kroner

8.05

7.80
10.
Pound Sterling

83.40

80.65
11.
Singapore Dollar

48.10

46.65
12.
South African Rand

5.30

4.95
13.
Saudi Arabian Riyal

18.40

17.25
14.
Swedish Kroner

7.50

7.25
15.
Swiss Franc

67.35

65.00
16.
UAE Dirham

18.80

17.60
17.
US Dollar

67.65

66.00
18.
Chinese Yuan

9.85

9.55
19.
Qatari Riyal

18.90

17.85


SCHEDULE-II


Foreign
Currency
Rate of  exchange of  100 units of  foreign currency equivalent to Indian rupees
(1)
(2)
(3)


(a)
(b)


(For Imported
Goods)
(For Export
Goods)
1.
Japanese Yen
59.65
57.65
2.
Kenya Shilling
67.25
62.90

Air Freight News :

IAG Cargo to embrace technology with new customer portal and WMS.

·        
IAG Cargo will look to further embrace technology to create efficiencies and improve its product offering in the year ahead in order to offset the current market conditions.
Speaking shortly after the carrier revealed its 2016 full-year results, IAG Cargo chief executive Drew Crawley and head of commercial David Shepherd revealed that the carrier planned to launch a new website and booking portal over the coming 12 months and also to invest in a new warehouse management system as it looks to create efficiencies and develop its customer offering.
“Our website is being re-launched in the next month or so and we are also developing application programming interfaces (API) so that those companies that want to interact with us directly through our website by linking that into their technology can do so,” said Crawley.
Shepherd added: “With the new website we have tried to look for a level of simplicity that makes it straight forward and easy for a customer to look for our availability, see what price they can book at and then easily make that booking without engaging in a more manual way.
“For the smaller customer that hasn’t invested in the IT infrastructure, they need to provide e-AWBs, for example, they are going to be able to do that automatically through this website as well.”
Another area of investment on the technology front is in a new warehouse management system, which comes ahead of the opening of an expanded premium product warehouse in 2018 that will double the size of its existing facility.
Asia Pacific airlines off to a good start.

·        
Figures from the Association of Asia Pacific Airlines (AAPA) show that Asia Pacific-based airlines made a good start to the year, with continued growth in air cargo demand.
International air cargo demand during the month measured in freight tonne kilometres (FTK) grew by 4.7%.
Offered freight capacity expanded by 3.8%, resulting in a 0.5 percentage point rise in the average international freight load factor to 59.4% for the month.
Commenting on the results, Andrew Herdman, AAPA director general said: "The year started on an encouraging note for Asian carriers, with both international air passenger and cargo markets growing strongly, boosted by the timing of the Lunar New Year holidays."
"The overall picture for the year ahead looks broadly positive, against a backdrop of renewed optimism on global growth prospects and improving consumer and business confidence across sectors.
Air cargo under no immediate threat from start-ups but should still be watchful.

·        
The air cargo industry should not ignore the threat of start-ups but in the short term there is no major threat of disruption.
During a conference session at the Air Cargo Africa event, panellists outlined their thoughts on whether the air cargo industry could be at threat from start-ups, in the same way that Uber had shaken up the taxi industry.
The panel identified four different types of start-ups that are relevant to the air cargo industry: price comparison websites, virtual forwarders, load optimisation/cargo consolidation solutions and document flow improvement services.
While it was felt that these start-up companies should be watched, the panel also felt that at the moment they lacked the industry oversight to truly shake up air cargo and instead were looking to solve niche problems.
Fraport senior vice president, cargo, Dirk Schusdziara

Fraport Senior Vice President, Cargo, Dirk Schusdziara, said :  “We think they have a lot of good ideas but they lack execution and they lack the global reach at the moment.  So they might have a lot of money, but quite a lot of the time they are focused on a niche area and not the A-Z picture and they don’t have the ability to execute”.

“Time will tell if they are able to learn to do this or whether they cannot. Currently I would say they cannot because at the moment it is all virtual, but we are still physically moving goods.  Whenever you are doing something with a virtual freight forwarder, it might work for the first ten times but if cargo gets stuck in Customs or wherever, the question is to whom are you talking and who is then moving the goods and fixing the issue?

“That is where the hurdle is for these guys and at the moment I don’t see one of these start-ups coming up that they have the answer for that.”

“So is there a way these platforms can connect the entire supply chain and not just silos at an airport or a port? These are things that could possibly transform the market much more than the start-ups.”

Sea  Cargo  News :

Port Trusts Win Large Rate Hikes from TAMP

India Tradeways
Ten of the 11 ports owned by the union government and run as trusts have recently won large rate hikes from the rate regulator, some in excess of 100%, two years after the shipping ministry changed the way rate revision applications of these ports are to be screened by the port regulator TAMP. If the rate hikes are implemented in full by the port trusts, it will have a huge impact on 57% of India’s EXIM trade moved by the sea rote every year and will negate the governments’ efforts to reduce logistic costs to make Indian products/goods competitive in the global stage. The regulator’s approval for the rates hikes is an indication of things to come when these “port trusts” are converted into “port authorities” under a new law that was introduced in Parliament in December 2016. A rate regulator does not figure in the new law.


India takes lead to run freight train from Dhaka to Istanbul

Indian Express
Taking a leaf from China’s run to Europe, India is going to showcase its might in freight movement by running a trans-continental container train full of goods from Dhaka to Istanbul, covering a 6,000-km journey across five countries — Bangladesh, India, Pakistan, Iran and Turkey. Codenamed the ITI-DKD-Y corridor, the container train’s route is scheduled as Dhaka-Kolkata-Delhi-Islamabad-Tehran-Istanbul. Eventually, Yangon will also be connected to Dhaka. The missing Tamu-Kalay link in Myanmar is still to be built. Indian Railways has called South Asian railway heads involved in the project to work out the nitty-gritty at a high-level meeting on March 15-16. Pakistan railway chief Javed Anwar is also being invited. There is one issue with Pakistan that needs to be fixed.

Nepal-bound containers stranded at Kolkata port

Kathmandu Post
Nearly 1,000 Nepal-bound cargo containers have been stranded at India’s Kolkata port after one of the railway tracks at the port that links Birgunj’s Sirsiya Dry Port was damaged some two weeks ago. Also, 300 containers laden with export goods have been stuck at Sirsiya Dry Port, according to Pradip Kedia, president of Birgunj Chamber of Commerce and Industry. Container Corporation of India Limited (CONCOR), an Indian government undertaking that handles Nepal’s railway freight, has requested to shift the containers from Sirsiya Dry Port, which is likely to result in additional costs for Nepali traders. Traders have to pay at least IRs4,400 per container in service charge to shift the containers. Kedia also complained about poor service at the Kolkata port. “It takes at least 16 hours to load 90 containers on a railway rack,” he said.


Railways starts RO-RO service to carry trucks, unclog Delhi roads

Financial Express
Railways today launched Roll-on Roll-off (RO-RO) service from Gurugram to carry loaded trucks on wagons to decongest roads in the national capital region. About 30 loaded trucks were transported on the flat wagons from Garhi Harsuru station in Gurugram for Muradnagar in Uttar Pradesh. “The RO-RO is a boon for Delhi as it would have a direct impact on its air ambient quality and the capital would breathe clean air,” Railway Minister Suresh Prabhu said after launching the service here. RO-RO service aims to reduce carbon emission and congestion on the roads of the national capital region (NCR) as about 66,000 diesel-guzzling trucks pass through Delhi and its adjoining areas in a day. According to railways, there are about 20,000 trucks which are not meant for the NCR, but enter the region to travel further.

India Inc positive on expanding trade, investment biz opportunities with Indian Ocean Rim Association: Ficci survey

Zee Biz
Indian industry is positive on expanding its trade and investment business opportunities with Indian Ocean Rim Association (IORA), says a latest survey by industry body Ficci. Federation of Indian Chambers of Commerce and Industry (Ficci) conducted a survey titled' 'Industry Perception Survey: Doing Business With Indian Ocean Neighbours' to take a stock of the current sentiment within the Indian industry on the economic potential of India’s engagement with the Indian Ocean region. The survey received responses from respondents across India through regional stakeholder consultations from three metropolitan coastal cities- Kolkata, Mumbai and Chennai. The companies from sectors like fisheries and aquaculture, renewable ocean energy, seaports and shipping, offshore hydrocarbons and seabed minerals, manufacturing, construction, gas and water supply, among others participated in the survey.

India considers reinstating 25% wheat import tax

Hellenic Shipping News
India could impose a 25 per cent import tax on wheat by the middle of March, two government sources said on Wednesday, reinstating the tariff after a gap of nearly three months in response to recent large purchases from overseas. India, the world’s second-biggest wheat producer, lowered the import tax on the grain to 10 per cent from 25 per cent in September 2016 and scrapped the duty on December 8 last year. The decision encouraged imports from private traders who have sealed deals to buy more than five million tonnes of wheat since mid-2016 to meet a supply shortfall left by two years of drought. Higher imports and expectations of a bumper crop has now prompted the government to consider reinstating the 25 per cent tax, two sources directly involved in the decision-making process said.

India’s export recovery not yet broad based: Report

Economic Times
Even as global economy looks to be on a rather bumpy ride, Indian exports, which are mainly dependent on the US, China and Europe have still not recovered, according to a research report by Nomura. “India’s merchandise export growth turned decisively positive last September after nearly two years of contraction. Yet, there is a wide variance for these exports by destination,” the report said. India’s exports to the US, Eurozone and Japan however jumped by 1.2% according to the report. “Exports to G3 (US, Eurozone and Japan) rose by 1.2% y-o-y in January after rising by 1.9% in 2016. In contrast, exports to all other regions combined are still contracting, falling by 8.1% y-o-y in January after a 3.6% decline in 2016,” Nomura report said.

Battles and Building Blocks in Liner Market

Maritime Professional
Clarksons Research has released 2016 liner market review. After another year of extremely difficult market conditions, many would forgive liner sector players for an air of resignation. However, despite a challenging freight market, charter rates remaining firmly in the doldrums and a major corporate casualty, looking back 2016 may well be seen as the year in which the container shipping sector really started to tackle its problems head on. The container shipping sector has spent much of the post-financial crisis era under severe pressure and, as many expected, 2016 proved no real exception. Box freight rates in general remained weak, and the SCFI Composite Index averaged 18% lower in 2016 than in 2015. However, by late in the year it did appear that spot freight rates might be bottoming out on some trade lanes.


JNPT participates in DPD workshop conducted by BRIEF in Delhi

Maritime Gateway
JNPT participated in a workshop on “Direct Port Delivery at Indian Ports – Challenges & Opportunities”, organized by Bureau of Research on Industry & Economic Fundamentals(BRIEF) in New Delhi on 27th Feb. The workshop was attended by Joint Secretary-Shipping, Join Secretary-Customs, Chief Commissioner-Jawahar Customs, Deputy Chairman-JNPT and various other stakeholders of DPD like CFS Association of India and Shipping lines. JNPT participated in the technical session in the workshop, where Shri Neeraj Bansal, Dy.Chairman, JNPT gave presentation on “Initiatives and roadmap towards Direct Port Delivery at JNPT”. Shri Bansal highlighted that DPD is a major initiative of Govt. of India under “Make in India” & “Ease of Doing Business” and very important initiative for reduction of dwell time and transaction cost.