Sunday, 18 December 2016


Air Freight News :

Mixed November for European cargo airports.

Europe’s leading cargo hubs saw a mixed November for volumes, with Germany’s Frankfurt Airport hit by airline strikes while London’s freight hubs registered increases of more than four percent versus like month 2015.

Frankfurt’s November cargo volumes fell by 2.1% to 191,461 as throughputs at the German gateway were “impacted by the strike and an unfavourable timing of weekends and weekdays”.

Europe’s number one cargo airport in 2015, handling 2.1m tonnes, is now marginally ahead of last year’s rolling total, registering a 1.3% increase over the first eleven months of 2016 versus prior period 2015.

Paris Charles de Gaulle (CDG) and Amsterdam Schiphol airports, number two and three European freight hubs respectively last year, have yet to publish their November figures, but CDG registered a 3.2% year on year rise in cargo volumes for the first ten months of 2016.  If that trend continues, CDG looks set to pip Frankfurt to the post as the top European cargo hub for airfreight and mail volumes in 2016.

Schiphol, with a 1.9% cumulative rise for year to date October 2019, is on course to remain in third place.

Brussels and Budapest airports continue the European cargo growth trend.
Europe’s gateway and secondary airports continue to see increased airfreight volumes, with strong results at both Brussels and Budapest.

Cargo traffic at Brussels Airport surged 15.2% in November to 45,500 tons, with full-freighter services continuing the strong growth trend at the key European hub.

November was also a strong cargo month for Budapest’s Ferenc Liszt Airport in Hungary, whose air and trucked volumes passed the 100,000 tonnes benchmark for the first 11 months of 2016, a 21.5% rise over the same period in 2015.

Iran Air reaches 80 aircraft agreement with Boeing.
Iran Air has made further moves to re-position itself on the global stage with an agreement for 80 aircraft from Boeing.
The aircraft in the agreement have a list price of $16.6bn and include 50 Boeing 737 Max 8s, 15 B777-300ERs and 15 B777-9s.
The agreement follows on from an order for 118 new aircraft from Airbus announced earlier this year.
The two deals will allow Iran Air state to begin the process of replacing aircraft that in some cases date to before the Islamic Revolution in 1979.
While the new aircraft are passenger, Iran Air current lists two Airbus A300B4Fs operated by its cargo arm plus a mothballed B747 freighter.
ACS expands in Florida.
Air Charter Service's (ACS) Florida operation has moved to larger premises following impressive growth in its first 15 months.

The Florida operation, which started trading in September of last year, has taken on an office space allowing them to triple the workforce.

Joel Fenn, managing director of ACS in Florida, said: “Our business here in the south has really taken off, beating all of our original targets, so this new office is much needed and essential to our growth plans going forward.

"Our cargo division has had a really strong year, with a particular highlight being the AN-225 charter two weeks ago, carrying the heaviest single piece of cargo ever flown in the Americas.

Sea Freight News :
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250 cars awaiting export at Chennai port wrecked by Vardah

Times of India
As cyclone Vardah hurtled towards Chennai on Monday , some 250 Nissan cars awaiting export were at Ennore port. The gusts touching 140kmph made landfall around 2pm, tossing the cars around, damaging all of them. Some 50km away, at the factory's yard in Oragadam, another 1,100 cars awaiting dispatch to dealers across the country were damaged. The two ports -Chennai and Ennore --had raised catergory 10 signal for the storm, indicating it was the severest. "The cyclone had an impact on our exports. We have initiated necessary actions for recovery ," said a statement from Nissan. While company officials did not give the numbers, sources said that 256 cars meant for exports from the Ennore port and 1,149 cars meant for sale at dealerships across India have been impacted.

India Identifies Two Maritime Clusters.

Marine Link
Two Maritime Clusters have been identified in Gujarat and Tamil Nadu, as part of the National Perspective Plan of Sagarmala Programme. Based on the study conducted under Sagarmala Programme, these proposed Maritime Clusters will comprise of shipyards, ancillary units for shipbuilding, service providers for shipping industries, marine tourism and marine products (MPX) such as fisheries and aqua culture. The proposed Coastal Economic Zones (CEZs) are aimed at promoting development of port-proximate industrial clusters, encourage port-led development, reduction of logistics cost and time for movement of EXIM and domestic cargo and enhance the global competitiveness of Indian manufacturing sector.

New Ports Bill may end supremacy of privately-run ports: Report

Economic Times
Government's bid to create a level-playing field between major and non-major ports through the Major Port Authorities Bill puts the supremacy of the privately-run ports at risk, a brokerage report has said. "The recent Cabinet approval to the Major Port Authorities Bill is a big step towards providing a more level-playing field to state-run major ports," says a report by Kotak Institutional Equities. "With the major ports already upping the ante in 2015-16, the prospects of sustained outperformance of non-major ports appears at risk," the report adds. The dozen state-run major ports have been closing in on privately-run non-major ports, which had earned an upper hand over the past few years, due to easy regulations.

Indian Railways, Steel Ministry ink unique deal, transport costs of slurry to fall

Financial Express
The steel ministry has signed a unique way-leave agreement with the railways under which slurry pipelines will be laid alongside railway tracks, a move which will bring raw material transportation costs down by 20-35% for pellet manufacturers. It will also reduce pressure on the railway infrastructure and environmental degradation. A slurry pipeline is intended for transportation of iron ore fines subsequent to its conversion to iron ore concentrate in the slurry form. The transpiration of iron ore lump and fines to iron making units and ports is now done mostly through the railways from their respective linked sources. This puts pressure on the railway infrastructure. The situation is expected to aggravate considering the fact that India is looking at ramping up its installed steel capacity to 300 MT in the next 14-15 years.

Container Corporation of India: A slow coach

Business Line
Container Corporation of India (Concor), a State-owned rail transport service provider, has been facing some tough times. The company reported near flat revenue and a 23 per cent Y-o-Y dip in profits in 2015-16; this compares to an average revenue and profit growth of over 12 and 5 per cent, respectively, in the earlier three years. In the first half of 2016-17, revenue and profit decreased 7 per cent and 23 per cent Y-o-Y as average realisation reduced due to higher competition from the road segment. Management revised volume growth guidance to 6-8 per cent for 2016-17, down from 9-10 per cent early in the year. Concor’s stock price has been on a decline in the past year. In the last month, the stock price fell about 15 per cent. It currently trades at 27 times its trailing 12-month earnings.

Container Terminal project thrown into turmoil, all seven contenders out

Hellenic Shipping News
Five months after inviting Expressions of Interest (EOI) for a Build, Operate and Transfer (BOT) concession for the Colombo Port’s East Container Terminal, the Cabinet Committee on Economic Management (CCEM) has brought fresh conditions that eliminate all seven parties vying for the project. Meanwhile, Ports and Shipping Minister Arjuna Ranatunga has submitted a separate Cabinet paper seeking a cancellation of the BOT process. He wants approval to buy cranes so that the Sri Lanka Ports Authority (SLPA) itself could run the East Container Terminal. “At the moment, everything is in a flux,” said an authoritative official source. “No final decision has been taken on how to move forward.” Five consortia and two single bidders submitted EOIs after the tender opened on June 6, 2016.

Ministry mulling on increasing cargo and freight carriers: Ashok Gajapati Raju

Indian Express
Civil Aviation Minister Ashok Gajapati Raju said the ministry is mulling on increasing the number of cargo and freight carriers. The minister said Airport Authorities of India Cargo Logistics and Allied Services Company Ltd has been drawing strategies focused on developing the segment that would take the local produce of farmer to international destinations. “There is a good demand for temperature-sensitive goods globally, our country has plenty of local produce to offer. Air-Cargo’s will play a important role here… if farmers produce quality products transport should not become a bottleneck,” Raju said. Historically in India, the ministry said, while roadways and waterways have been utilised for cargo transportation, flights have been only used for passengers. “In India, cargo is hardly there maybe two airlines and three aircrafts.

We'll get a level playing field and competition will increase: Chairman of MbPT

Business Standard
It is a big positive. Under the proposed Bill, all PPP (public-private partnership) operators will be free to fix rates on market conditions. TAMP’s role is redefined; it will fix a tariff (rate), which will be a reference for purposes of bidding for PPP projects. A number of private ports have come up and they are deciding tariffs on their own but those in the public sector were unable to. With this provision, TAMP’s role in deciding this will go away. A separate adjudicator will be appointed, who can be approached by the port and the stakeholders for settlement of disputes. This will clearly provide a level playing field to ports in the public sector with the private sector ones. Today, it is not there; ports in the public sector are unable to reduce tariff on their own. The provision will promote competition.

Garment exporters ask govt to relax norms for payments to boost exports

Indian Express
To help exporting units tide over the impact of demonetisation, the Apparel Export Promotion Council has asked the government to increase withdrawal limits and relax rules for payment of statutory dues like PF, ESI and service tax for sometime. In order to facilitate transition of the readymade garment export industry towards digital payments and less cash usage, the council has shared key recommendations with the government, the exporters body said in a statement on Sunday. The council has suggested that exporting units may be allowed a higher threshold of cash withdrawal for making payments to artisans, loaders, purchases for developing new samples and for payment towards small freight amount. Availability of adequate cash should be made available at banks in key clusters.

Gautam Adani says debt level not a concern, eyes new sectors

Live Mint
Adani Enterprises Ltd is aiming to start production at its $16 billion integrated mining project in Australia by end of 2020, after facing a four-year delay because of stiff resistance from environmental groups. In an interview, group chairman Gautam Adani brushed aside concerns about the group’s indebtedness and said it was looking at investment opportunities in sectors such as defence, coal conversions and water. He added that the group continues to explore opportunities in the mining sector as it looks at an integrated “pit-to-plug” strategy encompassing mines, rail and the port sector. “Infra is a capital intensive business. At group level, our long-term debt to Ebitda (earnings before interest, taxes, depreciation and amortization) is at a comfortable level of 3.25:1. Overall, for infra business, we are robustly placed,” said Adani, 54.

Major ship management centre

Khaleeja Times
Cyprus is today a fully-fledged maritime centre, combining both a sovereign flag and a resident shipping industry, which is renowned for its high-quality services and standards of safety. Cyprus is considered as one of the leading third-party ship management centres in the world. A significant number of ship management companies have been established in the country and manage a sizeable proportion of the local merchant fleet as well as a large number of vessels under foreign flags. Cyprus, with its long maritime tradition, enjoys a leading role in the international shipping scene, by holding third place within the European Union (EU) merchant fleets and the 11th worldwide, while having a leading role as well as a major ship management centre.

500th Neopanamax Transits Panama Canal

World Maritime News
Less than six months after the inauguration of the Expanded Panama Canal, the waterway welcomed its 500th transit of a Neopanamax ship on December 14, 2016. The YM Unity, an 8,204 TEU containership owned by Greek-based shipping company Navios Maritime Partners, performed the 500th transit. Built by South Korean shipbuilder Hyundai Heavy Industries in 2006, the YM Unity measures 335.7 meters in length and 42.8 meters in beam. The ship is traveling from Asia and will stop at Colon Container Terminal in Panama before heading to US ports, the Panama Canal Authority (ACP) said. The vessel began traversing through the Cocoli Locks in the Pacific and then headed north towards the Agua Clara Locks.

More Indians taking cruise holidays this year-end

Cruising may be a fledgling industry in India, but Indians are beginning to enjoy the view from the upper deck. With stakeholders betting big on the Indian market, there is a sudden surge in Indian passengers boarding the luxury liners. Industry sources reveal that 40% of the passengers who have booked a cruise from Mumbai are Indians. This is indeed encouraging for an industry that remained in calm waters till recently. According to Mumbai Port officials, 59 luxury liners will make a beeline to the port this season. Of these, 44 will be having 'Port of Call 'and the rest 15 'Turnaround Operation'. Port of call is an en route stoppage for a ship on its journey as compared to 'Turnaround Operation' wherein the itinerary of the ship starts and ends at the port. Last year, Mumbai hosted 37 ships and 40 in the previous year.

Friday, 16 December 2016


New Custom Exchange Rates w.e.f. 16-12-2016.

Please note the new custom exchange rates applicable with effect from today i.e. 16-12-2016 as advised by Ministry of Finance.

Foreign Currency
Rate of exchange of one unit of foreign currency equivalent to Indian rupees


(For Imported Goods)
  (For Export Goods)
Australian Dollar
Bahrain Dinar
Canadian Dollar               
Danish Kroner
Hong Kong Dollar
Kuwait Dinar
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Singapore Dollar
South African Rand
Saudi Arabian Riyal
Swedish Kroner
Swiss Franc
UAE Dirham
US Dollar

Chinese Yuan


Foreign Currency
Rate of exchange of 100 units of foreign currency equivalent to Indian rupees


(For Imported Goods)
  (For Export Goods)
Japanese Yen
Kenya Shilling

Air Freight News :

Local councils launch legal challenge to Heathrow's third runway plan.
Heathrow Airport's plans for a third runway face a challenge in the courts after a coalition of local councils served legal papers on the UK government for "unlawfully supporting the expansion" of the UK's number one passenger and cargo hub.
Hillingdon, Richmond, Wandsworth and Windsor and Maidenhead councils, together with environmental lobby Greenpeace and a resident of Hillingdon made their legal submission to the High Court in London.
The coalition is seeking a judicial review of the Conservative government’s decision to support the expansion of the airport – something that the previous Conservative Prime Minister, David Cameron, promised would never happen.
Harrison Grant Solicitors, acting for the coalition, filed the formal request for a judicial review. If successful, it is hoped the case will be heard in the High Court early next year.
Call for logistics to play a key role in new Sydney airport.
An Australian logistics group has called on the country’s government to ensure freight is a central component in the development of a second Sydney airport.
Earlier today, the Australian government signed-off plans to develop Western Sydney Airport, which will open in the mid-2020s and will feature a single 3,700 m runway. Over time a second runway could also be added.
The Australian Logistics Council (ALC) welcomed the news but said freight should play a central role in its development.
IAG Cargo hopes new Paris-New York service will appeal to forwarders.
·         IAG Cargo is hoping that its new service between Paris and New York will appeal to French freight forwarders looking for a more "local hub".
The service flies four times a week between Paris Orly and Newark New Jersey airports using a B767-200 aircraft.
While a passenger flight has been flying the route for awhile, the option to sell cargo on the service is a new addition.
IAG anticipates that fashion and textiles, perishables and spare machinery parts will make up a significant proportion of the commodity mix.
Freighter’s  Wall Chart – 2017.
Kindly open the attachment to have a look at the fleet of aircrafts owned by Freighter operators worldwide. As usual Fedex is the world’s largest air craft owner with various types of flying machines in their kitty.  
Sea Freight News :
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Will the government gain from the shift to authorities’ style of port management from trustee set-up?

India TradeWays
The transformation of 11 of the 12 ports owned by the union government into authorities from the current trustee set-up, a plan that was cleared by the cabinet on Wednesday, is a structural improvement that helps faster decision-making and allows these ports to perform with greater efficiency by virtue of having full autonomy, but is still not the ideal or best way to alter their management model. If the shipping ministry had its way, it would have converted these 11 port trusts into corporate entities just like Kamarajar Port Ltd, the only union government port that is run as a company. The strident port workers’ union played spoilsport on corporatization of ports, forcing the ministry to opt for the authorities’ route to overhaul their institutional structure. The unions’ even succeeded in wresting a commitment from the ministry to have a seat on the port authorities boards.

Shipping Industry

Business Standard
In order to support the Indian shipping industry, the Government of India has exempted Customs and Excise Duty leviable on bunker fuels used in Indian flag vessels for transportation of mix of EXIM, domestic and empty containers between two or more ports in India. Government has brought in a uniform abatement of service tax for transportation of goods by rail, road and sea vessels. Indian shipping industry has been provided cargo support through Right of First Refusal (RoFR). Government has taken policy decision to allow shipping enterprises based in India to acquire ships abroad and also flag them in the country of their convenience. As a step towards promoting Ease of Doing Business" methodology for computation of period of stay of seafarers in India has been redefined. Further, acquisition of all types of ships has been brought under the Open General Licence.

India Overhauls Governance of Largest Ports

Maritime Executive
On Wednesday, Indian Prime Minister Narendra Modi's cabinet approved an overhaul of the nation's 50-year-old Major Port Trusts Act, simplifying the oversight of 12 large ports and giving their port authorities greater autonomy. The new Major Port Authorities Bill "will empower the major ports to perform with greater efficiency on account of full autonomy in decision making and by modernising the institutional structure of major ports," the cabinet said in a statement. India's largest port authorities will now have the ability to lease land for up to 40 years for port uses and up to 20 years for non-port uses, without central government approval. In addition, they will be able to borrow money, hire consultants, sign contracts and hire new administrators, all on their own. Under existing law, there were nearly two dozen actions like these that required national-level approvals.

India's exports record USD 20 billion, imports up by 10 per cent

New Indian Express
Expanding for the third straight month, exports in India rose 2.29 per cent to USD 20 billion in November on account of healthy growth in shipments of petroleum products and engineering goods. Exports of engineering products rose by 14.10 per cent, petroleum by 5.73 cent and chemicals by 8.3 per cent compared to the same month last year, according to official data released today. Imports too increased by 10.44 per cent to USD 33 billion, leaving a trade deficit of USD 13 billion in November. The country's merchandise exports during April-November period of the current fiscal too recorded a growth of 0.10 per cent to USD 174.92 billion. Imports, however, contracted by 8.44 per cent to USD 241.1 billion, leaving a trade deficit of USD 66.17 billion.

Rickmers inks ship management contract with Samudera Indonesia

Seatrade Maritime
Rickmers Ship Management has won a new client in the shape of Samudera Indonesia for a pair of bulk carriers. The contract for the two bulk carriers from the Indonesian shipowner is for technical management including crewing. The contract with Samudera Indonesia along with a recent a 16 vessel contract from Westfal-Larsen sees the Rickmers Group move into the management of bulkers. “Our shipmanagement approach is based on a particularly high level of transparency ensured by extensive technical, financial and operational reporting, and supported by our focus on energy efficiency and performance monitoring,” said Ignace Van Meenen, ceo of Rickmers Group. “This approach provides our customers with immediate benefits and has been independently confirmed by our positive rating by RightShip of 4.7 out of 5 possible points.”

HMM aims to boost profitability and eyes 5pc global market share by 2021

Sea News
South Korea's Hyundai Merchant Marine (HMM) is aiming for a five per cent share of the global container shipping market by 2021, the line has revealed after finally concluding a strategic collaboration with members of the 2M alliance. An HMM official said the shipping line is looking to boost its profitability levels and hopefully attain full membership in the 2M alliance after the three-year agreement, which covers a combination of slot exchanges and slot purchases among the trio, and Maersk and MSC taking over some charters and operations of vessels currently chartered to HMM, according to Lloyd's Loading List. HMM aims to focus on the Asia to US trade route, while acquiring more terminals, the official said, so as to hit a 5 per cent operating margin and garner a 5 per cent share of the global shipping market by 2021. But it will not engage in overly active fleet expansion.

Korea Line plans two Asia-USWC services in April

Sea News
Korean Line Corp., a new container shipping line, is set to commence two transpacific services in April 2017 that will link Chinese and Korean ports to the US west coast, according to Alphaliner. The move comes after the carrier successfully bid US$31.4 million for the Asia-US business of bankrupt Hanjin Shipping, reported Seatrade Maritime News. Deploying five 4,200 TEU vessels, the first loop will call: Ningbo, Shanghai, Long Beach, Busan, Kwangyang, and returning to Ningbo. The port rotation of the second service that will be operated with six 6,500 TEU box ships is: Xiamen, Shekou, Yantian, Busan, Long Beach, Busan, and returning to Xiamen. However, both services are subjected to further amendment. "Apart from the transpacific strings, Korea Line is also expected to launch several intra-Asia services next year will focus on the Korea to West India and Southeast Asia markets," Alphaliner was cited as saying.

More Bunker Companies Undergo Consolidation Efforts as the Industry Prepares for a Tough 2017

World Fuel Services Corporation (WFS) is the latest player reported to be undergoing consolidation efforts across its global bunker operations as the industry prepares for what it expects to be a tough 2017. While WFS has told Ship & Bunker it currently has no comment on the developments, a number of sources familiar with the matter have told Ship & Bunker that several members of staff from its offices in Singapore, London, and Rotterdam have parted ways with the bunker company. Local market sources in Australia, meanwhile, have told Ship & Bunker that WFS' office in Perth has closed completely, with inquiries for Australia and New Zealand now being handled by their Singapore office. Other players have been more vocal about the need to restructure their operations, perhaps the most notable of which is Bomin, who says the bunker industry has entered a "new era."

Chabahar’s Imperatives To Emerge As Flagship Of Iran-India Strategic Partnership – Analysis

Eurasia Review
The Chabahar Port in Eastern Iran and Gwadar in Western Pakistan, both on the North Arabian Sea littoral have emerged as the latest chess-pieces in the maritime Great Power Game unfolding between India and China in the Indian Ocean. Gwadar at the terminal end of the much-vaunted China -Pakistan Economic Corridor provides China with a much-needed strategic outpost in the Indian Ocean facilitating China to overcome its ‘Malacca Dilemma’ in terms of its energy security needs and as a naval base for China’s intended sizeable naval presence in the Indian Ocean. Gwadar’s economic utility is China-centric with limited collateral economic gains for Pakistan through which passes the major portion of the China-Pakistan Economic Corridor. The strategic significance for China of Gwadar far outweighs the economic significance simply because the hinterland of Gwadar does not generate much economic activity, even potentially.

G E Shipping Adds Second-hand Supramax

World Maritime News
Mumbai-based Great Eastern Shipping (G E Shipping) has taken delivery of Jag Radha, a secondhand Supramax dry bulk carrier bought in October 2016. The 58,100 dwt Jag Radha, previously known as Star Manx, was purchased from the Isle of Man-based shipping company LT Ugland Shipping, VesselsValue’s data shows. The dry bulk carrier, which was built by China’s Tsuneishi Zhoushan, was bought for USD 10.7 million, according to VesselsValue. The 32,354 gross ton vessel features a length of 190 meters and a width of 32.3 meters. Including Jag Radha, the company’s current fleet stands at 38 vessels, comprising 24 tankers and 14 dry bulk carriers, with an average age of 8.9 years and an aggregate tonnage of 2.94 million dwt. Additionally, G E Shipping has one newbuilding Kamsarmax on order and expects the delivery of two secondhand Aframaxes.