Thursday 1 December 2016

DAILY SHIPPING NEWS - THURSDAY DECEMBER 01, 2016

Air Freight News :

Lufthansa pilots to go on strike again as talks break down.

·         Lufthansa pilots will go on strike again this week as talks between unions and management broke down.
The Vereinigung Cockpit (VC) union has announced that on Tuesday (November 29) there will be strikes on short-haul flights from 00:01am until 23:59pm and on Wednesday (November 30) there will be action affecting all long- and short-haul passenger flights leaving Germany.
The airline has applied for an injunction to try and stop the strikes.
IAG Cargo's better than expected peak fuelled by e-commerce.

·         IAG Cargo has reported a “better than expected” peak season with traffic from the Asia Pacific region leading the charge.
Speaking to Air Cargo News, IAG commercial director David Shepherd said that the improvements in demand were being fuelled by e-commerce growth.  “Peak season is probably going a little bit better than we expected to be. We have been very happy with the volumes out of most markets, but Asia Pacific has been particularly strong all the way round to the Indian continent.
“It generally gets strong around this time of year but we are very full. We are even seeing very high demand from Asia into Latin America as well, and that's heathy given the network structure we run.”
He added: “I guess the thing that is happening is year-on-year cross boarder e-commerce is growing at a fairly phenomenal rate.  It is one of the few sectors of our industry that is really driving quite hard so I expect it to be about that.”
Dnata expands into Canada with Toronto deal.

·         Dnata has purchased a 50% stake in GTA Aviation's cargo and ground handling operation at Toronto Pearson International Airport.
This investment marks dnata’s first step into the Canadian market and is a significant development in the company’s expansion into the Americas, less than a year after announcing investments in the US and Brazil.
GTA, which was launched in 2014 by Mario D’Urso, has 130 employees, serves more than 1,400 flights annually and handles over 58,000 tonnes of cargo each year at its 83,000 sq ft warehouse facility at Toronto Pearson.
Key customers include Lufthansa, Austrian Airlines, Brussels Airlines, Cargojet, China Southern Airlines, Emirates, Ethiopian Airlines, Fly Jamaica, Korean Air, SWISS and WestJet.
The company’s cargo and ground handling operations will be rebranded to “GTA dnata” and current chief executive Gary Ogden, along with all other employees, will remain with the company.

Sea Freight News :
Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: 1px

Trade costs of India remain high: UN body

The Hindu
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said international and intra-regional trade costs of India remained higher compared with the trade costs of best-performing economies in Asia and the Pacific, although a declining trend has been observed since 2009. However, it said in addition to India’s robust economic growth and large domestic market, the Government’s “Make in India” initiative and easing of FDI regulations for about 15 sectors including aviation, defence and pharmaceuticals may contribute to the FDI attractiveness of India. On the other hand, overseas investment from India contracted considerably by 36 per cent, which may reflect FDI diversion as Indian investors start to invest more at home than overseas, ESCAP said in its recently released Asia-Pacific Trade and Investment Report 2016.

Ship demolition activity hurt by India’s and Pakistan’s latest woes

Hellenic Shipping News
Ship owners are being forced to look to alternative locations when it comes to scrapping their older vessels, as the Indian sub-continent’s ship-recycling sector is faced with various challenges. For starters, India counts the cost of the crackdown on black market money and Pakistan remains officially closed after the worst accident recorded. As such, according to GMS’ latest weekly report, “the selective Bangladeshi market has been left as the only open and (not entirely) viable recycling destination at present”. According to the world’s leading ship buyer, “as we hurtle towards the end of the year, the number of available candidates shows no signs of slowing, particularly Panamax-sized container vessels that seem to get progressively younger with each deal. As such, the world witnessed the sale of a 7 year old ship this week, as the 2009 built (in China) India Rickmers was reportedly out on subs to cash buyers’ basis an ‘as is’ Jebel Ali delivery.

No privatisation of parties for development of rivers: Minister

The Hindu
The Minister of State in the Ministry of Shipping, Mansukh L. Mandaviya informed Congress Rajya Sabha MP Shantaram Naik in a letter early this week that there is no proposal for negotiations with private companies for development of rivers at present. In the letter, Mr. Madaviya says expenditure to develop waterways in Goa will be made from the Government Budgetary Support (GBS), Goa-based major port of Mormugao Port trust (MPT), and the Government of Goa. For development of national waterways in the State, a Memorandum of Understanding (MoU) has been signed by Inland Waterways Authority of India (IWAI) with MPT. The Ministry of Shipping has declared 106 new waterways as National Waterways (NWs) under National Waterways Act, 2016, in addition to five existing NWs notified earlier.

“K” Line Launches Asia Chennai Express Service (ACE)

Hellenic Shipping News
Kawasaki Kisen Kausha Ltd. (“K” Line) is pleased to announce its enhanced containership service of Asia Chennai Express Services (ACE). This service will have new port coverage of Korea and China to have various choice of direct service to and from Chennai, India. Competitive transit time linking South East Asia such as Singapore/Port Kelang and Chennai will stay unchanged. On top of these, “K” Line will deploy a vessel by itself on this service, which enables to offer more stable and higher quality service to customers. “K” Line will keep responding to broad needs of customers and markets including a booming transportation demand to and from India. Detail of the service is as follows:
Vessel Deployment: Five (5) x 4200 TEU type vessel Port Rotation: Pusan – Qingdao – Shanghai – Shekou – Singapore – Port Kelang – Chennai – Port Kelang – Singapore – Manila – Pusan.

Cruise vessels call at New Mangalore Port

Business Line
Two cruise vessels called at New Mangalore Port on Wednesday. A press release issued by New Mangalore Port Trust (NMPT) said here that mv Norwegina Star with 2,064 passengers and 1,048 crew members and mv Nautica with 590 passengers and 398 crew members called at the port on Wednesday. For the first time the port handled two big vessels simultaneously. Both the vessels came from Goa and left for Kochi in the evening, it said. Most of the passengers -- who came from the US, the UK, Canada and Brazil -- opted for ground tour. The port handled 23 cruise vessels with 19,160 passengers during 2015-16.

FFFAI signs MoU with Kale facilitating eVGM filing for its members

India Infoline
Kale Logistics Solutions and Federation of Freight Forwarders' Associations in India (FFFAI) have signed a MoU, whereby Kale’s eVGM platform will be made available to its members for eVGM filing. This will help FFFAI members to stay compliant with electronic-VGM as per the SOLAS (Safety of Life at Sea) convention. The International Maritime Organization (IMO) has amended the SOLAS Convention to require, as a condition for loading a packed container onto a ship for export, that the container has a verified weight. The shipper or its authorized representative is responsible for the verification of the packed container’s weight. As per the IMO, the new regulation is meant to safeguard the interest of the vessel, crew and cargo by getting exact weight of the Cargo filled container, so that the shipping line can plan the vessel capacity.

Sagarmala for Sustainable Growth of Coastal Community

Marine Link
The Ministry of Shipping, India has sanctioned Rs. 30 Crore ($4.37 mln) for capacity building and providing safety training of 20,000 workers engaged in ship recycling activities at Alang-Sosiya recycling yard in Gujarat. In addition, Rs. 13.77 Crore has also been sanctioned for skill training in 27 coastal districts in convergence with Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY). In addition to this, to support the development of fishermen community, the Ministry is funding select fishing harbor projects under Sagarmala in convergence with Department of Animal Husbandry Dairying & Fisheries (DADF). In this regard, Rs. 13 Crore has been sanctioned for the modernization of the existing fishing harbor at Sassoon Dock, in Mumbai. In-principle approval has also been obtained for upgrading the 9 fishing harbors across Maharashtra, Karnataka, Kerala, Tamil Nadu and Gujarat costing over Rs. 50 Crore.

NRL commences Wax export to Bangladesh

Web India
After Nepal, Kenya and Mexico, Assam's Numaligarh Refinery Ltd Wax is now on its way to Bangladesh. Achieving yet another milestone in Wax export, the first consignment containing 20 Metric Tonnes of Fully Refinery Paraffin Wax(FRPW) was flagged off to Bangladesh from the premises of Numaligarh Refinery Marketing Terminal yesterday. The consignment was flagged off by Director Finance NRL SK Barua, in presence of Senior GM (Projects) NRL MR Baruah, GM (Finance) NRL SD Maheshwari, GM (Operations) NRL BJ Phukan and other NRL employees. Also present on the occasion was Md Abdul Jalil, the importer from Bangladesh, a NRL release said here today. There is a good demand of wax in Bangladesh in the candle making, cosmetics and tyre making industry. High quality of NRL wax has evinced interest from several other countries like Mozambique and USA, making NRL Wax a brand to be reckoned with worldwide.

Chief Secy inaugurates tug “MT Andaman”

Echo of India
Mr. Anindo Majumdar, Chief Secretary, Andaman & Nicobar Administration and Chairman, Port Management Board today inaugurated a newly acquired tug MT Andaman at a simple function held at Phoenix Bay Jetty Stage-3. This tug has been built at M/S TEBMA Shipyard Ltd. This is a highly manoeuvrable tug fitted with Steerable Rudder Propulsion (SRP) for efficiently performing harbouring and towing operations. The tug is capable of delivering 35 tons of Bollard Pull and achieves a speed of 12 knots. The vessel is classed with Indian Registrar of Shipping (IRS) and is installed with FIFI as told by Lt. Cdr. Mohan Kumar B, Assistant Harbour Master, Port Management Board. He further briefed that the vessel is sea-going and shall be able to cater the tug needs of vessels plying in the A & N Islands.

APL regains new momentum within CMA CGM Group, and strengthens Singapore’s role on the global maritime scene

Hellenic Shipping News
PL improved its performance in the first three months under the ownership of CMA CGM Group in a challenging market. APL’s 3Q 2016 volume rose almost 9.9% to 1.3 million TEUs (vs. 3Q 2015). This organic growth was driven by more than 20 co-operations on new and enhanced services with CMA CGM. For example: In the Latin America trade, APL now offers its customers direct access to the Caribbean through slot swaps on the Asian Caribbean Express (ACE) service[/li] [li]In the Trans-Pacific where it has a leading position, APL has taken over the management of the USL business, a subsidiary within the CMA CGM Group, and as a result increased its book of business by more than 10%[/li] [li]In Asia-Europe, APL re-entered the direct India–Northern Europe trade through the India Pakistan Europe (IPE) service[/li] [li]In the Trans-Atlantic trade, APL now has access to the West Mediterranean to/from US East Coast market through the West-Med Service (WMS)[/li] APL has expanded its global network to better serve its customers, and increased its book of business.

NYK Procures 4,700 Additional New Refrigerated Containers

Marine Insight
NYK has placed an order for 4,700 additional brand-new 40-foot refrigerated (reefer) containers, and the delivery of the new containers commenced in November. NYK procured 5,500 of the same type of containers last year, and the average age of company’s fleet of over 40,000 reefer containers has now fallen to four years. The new order includes 600 Controlled Atmosphere (CA) containers. The advanced technology of these CA units ensures the freshness of perishable agricultural products, such as fruits and vegetables during long ocean transits. The CA technology regulates not only the temperature within the reefer unit but also the oxygen and carbon dioxide levels. These 600 CA units will be used mainly for the transportation of fruits from Latin America to Japan and other countries in the Asian region, and then for the export of Japanese vegetables, which are garnering more attention these days.

Hefty price tag could deter Hamburg Sud potential buyers: Alphaliner

Seatrade Maritime
A hefty price tag of close to $5bn could put off potential buyers for German container line Hamburg Sud according to analyst Alphaliner. The Oetker family, which owns 100% of Hamburg Sud, is reportedly close to reaching a decision as to whether to sell the container line, having previously been unable to agree. Alphaliner said the asking price for Hamburg Sud was believed to be close to $5bn and this “remains the largest stumbling block on the way to any deal”. The line’s ships and container assets are listed with a book value of $2.19bn athe end of 2015. With very little debt a potential buyer would be looking at a cash offer. Maersk Line has been flagged up as the most likely buyer and this fits with ceo Soren Skou’s previous comments on being involved in consolidation. However, Alphaliner also flagged up French line CMA CGM as a potential suitor.

Drewry: Carriers Playing Poker With Ports

Marine Insight
Container shipping lines are in danger of putting future port investment at risk in their demands for terminal handling cost reductions, according to the recently launched Ports and Terminals Insight report published by global shipping consultancy Drewry. Terminal operators face a “perfect storm” of rising costs due to bigger ships, greater business risks from larger liner alliances, softening global demand growth and pressure on terminal handling prices from cash-strapped carriers. The financial results of listed port and terminal operators reveal a weakness in organic earnings amid escalating debt levels. Stricter cost rationalisation and financial risk reduction will be necessary to retain investment interest. Companies with growth plans are commanding a significant market premium amid diminishing profitability. The market valuation of listed operators remains weak, underlining the cautious assessment of growth in the sector.


CMA CGM in the mix for Hamburg Süd

Splash
Alphaliner, the French container analysts, have added CMA CGM into the mix as possible buyers of Germany’s Hamburg Süd. The family running the German containerline is understood to be discussing a sale in the wake of the dramatic consolidation seen in the sector in the past 18 months which has left the container operator dangerously exposed. Hamburg Süd is the world’s seventh largest containerline, but crucially it does not belong to any present or future box alliance. “While Maersk is widely regarded as the front runner to take over Hamburg Süd, as it has the strongest balance sheet to finance such an acquisition, the carrier could face a strong challenge from CMA CGM, which appears keen to maintain growth momentum after completing the acquisition of APL in June this year,” Alphaliner stated in its most recent report.

Where will the glut take the shipping industry?

Logistics Info
The oversupply of vessels in the world container shipping market has heralded severe effects on this industry, forcing big players like Hanjin into bankruptcy. Some analysts in the industry say that Hanjin is just the tip of the iceberg and a lot is in offing for the ship owners and the Trade alike. It may be noted that much of today’s dismay was triggered from the 2008 financial crisis that that had the most devastating effect on the global economies with the US and the European countries among the worst affected. As a result of this, the consumer spending in these economies declined drastically. Incidentally, these economies also happen to be the biggest importers of the world’s produce and have been the key profit-making markets for exporters from Asian and Latin American countries. The shipping industry, which was riding on the pre-2008 global trade boom, went on ordering bigger-sized ships to leverage on the economies of scale.

No comments:

Post a Comment