DAILY SHIPPING NEWS - THURSDAY FEBRUARY 02, 2017

Air Freight News :

Lufthansa Cargo increases offering from Sharjah Airport to Hong-Kong.

·         Lufthansa Cargo and Sharjah Aviation Services have launched a twice weekly MD-11 freighter linking the Middle East hub with Hong-Kong.  The German carrier's main-deck connections will operate on Tuesdays and Saturdays from Sharjah during the 2016/17 winter schedule.

Handling agent Sharjah Aviation Services is one of the largest air service providers in the United Arab Emirates (UAE), operating a 24,000 sq m cargo terminal plus over 8,800 sq m of forwarders and agents’ warehouse floor.

It operates Road Feeder Services (RFS) in exclusive partnership with Wallenborn Transports Group, currently providing 25 owned rollerbed trucks which include monitored temperature controlled units.   The road feeders provide scheduled and ad-hoc services to the main Gulf Cooperation Council hubs, including: Amman, Dammam, Jeddah, Kuwait, Muscat, Riyadh, Abu Dhabi, Dubai and Ras Al Khaimah.

Ulf Weber to leave AeroLogic for top job at ASL Belgium.

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ASL Belgium, formerly TNT Airways, has poached Ulf Weber from AeroLogic, the Lufthansa and DHL Express. Weber, who is currently managing director and accountable manager at AeroLogic, will join ASL Belgium as chief executive.

Colin Grant, who had been acting chief executive of the airline following its acquisition by ASL last year, will assist Weber during the transition to his new role. Grant also holds the role of ASL Airlines Europe chief executive.

“Ulf is an accomplished international aviation professional and his excellent record makes him a perfect fit for us,” said ASL Aviation Group chief executive Hugh Flynn.

Malta's Maleth-Aero to add two more B737Fs.

·         Malta-based operator Maleth-Aero will take delivery of two Boeing 737-300 freighters in March and April this year for deployment in regular contract work within Europe.

The latest additions will follow the introduction of a B737-300QC in June 2016 and the planned arrival of two more freighters later this year.

Maleth-Aero chief executive Michael O’Brien said: “We are very pleased to be able to offer to the market these Boeing 737-300F aircraft which build nicely on the foundation of our existing cargo capabilities using both our managed Boeing 737-300QC and Antonov 26 aircraft.

“With our experienced cargo management team and excellent knowledge of the Boeing 737 Classic/NG product we feel this is the natural development for this particular part of our business. Our strategic business plan provides for the introduction of a further two units early in Q3/4 2017.”

Sea Freight News :

Chennai become deepest of India's major ports Maritime Standard Chennai Port, as part of its efforts to strengthen its position as a southern Indian container hub, is expending its facilities. In particular it has invested in a dredging programme that has increased the draft alongside the CCTPL Container Terminal to 15m. Reflecting on the importance of this project, on 14th January this year CCTPL handled the CMA CGM Bellini with a draft of 14.6m, and the promptly broke this record again on 21st January with the visit of CMA CGM Mozart with a draft of 14.8 m. Operated by PSA International of Singapore, CCTPL terminal welcomed an important new service in January this year, with the start of a direct Far East-Chennault connection provided by a consortium of seven lines, including CMA CGM, RCL, K Line, Simatech, TS Line and Cosco.

Jaitley’s Budget ‘Converts’ Kamarajar Port Ltd to Kamarajar Port Trust India Tradeways India’s finance ministry has ‘converted’ Kamarajar Port Ltd, India’s only union government port that is run as a company into Kamarajar Port Trust, in a gaffe, that, besides causing embarrassment, has significant policy connotations because it strikes at the very root of the current management structure of the 11 other such ports that are functioning as ‘trusts’. The ‘error’ has cropped up in the budget documents for 2017-18 under the ‘Notes on Demands for Grants’ that was presented to Parliament by finance minister Arun Jaitley on Wednesday. It comes at a time when the Narendra Modi-led government introduced a bill in the winter session of Parliament in December last year for converting these 11 port trusts that are managed under the Major Port Trusts Act 1963 into ‘authorities’ under a new law in a bid to give more autonomy and flexibility to these ports and help them take decisions faster.

Multi-modal transport hubs to ease traffic congestion: Gadkari Times of India Terming the Budget as 'revolutionary', Road Transport, Highways and Shipping Minister Nitin Gadkari today said development of multi-modal transport hubs would help ease traffic congestion and bring down pollution. Gadkari also expressed hope that tax exemption on Masala Bonds will help mobilise more investments. He also lauded the top priority accorded in the budget to the growth of agriculture and rural sectors, and to weeding out of corruption and black money. Finance Minister Arun Jaitley allocated a record Rs 3.95 lakh crore for infrastructure development and termed the sector as top priority of the government, saying the magnitude of investment in the space is bound to spur growth. The Budget 2017-18 has made a provision of Rs 2,41,381 Crores for the transport sector as a whole. This includes rail, roads and shipping.

We have the funds, the target is to change mindset: Nitin Gadkari Live Mint - Interview It is the vision of the government, but the recommendations were from my ministries. This concept of multi-modal hubs is present globally and I personally feel it is the way forward. We have launched pilots for multi-modal in Varanasi and Nagpur, and once they are completely operational, the government will eventually scale up the idea. This integrated travel approach will help in reducing traffic congestion, causing great relief to people and freight and also bring down logistics costs. It’s a nice budget. For the shipping ministry the allocation has gone up from Rs1,531 crore in BE (budget estimate) 2016-17 to Rs1,773 crore and Rs600 crore have been allocated for the Sagarmala programme. Apart from this, the cabinet has also been moved to transfer 5% from the central road fund to inland waterways so that Rs2,000 crore is available for inland waterways development.

Jaitley gives big push to multi-modal logistics Business Line The Finance Minister has stressed on the need to have an effective multi-modal logistics and transport sector, which will make the economy more competitive. “A specific programme for development of multi-modal logistics parks, together with multi-modal transport facilities, will be drawn up and implemented,” Arun Jaitley said. “For the transportation sector as a whole, including rail, roads, shipping, the Finance Ministry has proposed ₹2,41,387 crore in 2017-18. This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities,” he added. Railways, on its part, will implement end-to-end integrated transport solutions for select commodities through partnership with logistics players, who would provide both front and back-end connectivity. Rolling stocks and practices will be customised to transport perishable goods, especially agricultural products, Jaitley added.

Fillip to port-led development The Hindu Focus on the logistics sector and emphasis laid on encouraging multi-modal logistics parks will give a fillip to the port-led development all along the 7,500-km coastline, top representatives from various industries say. Reacting to Union Finance Minister Arun Jaitley’s Budget speech on Wednesday, those in the logistics sector said that the thrust given to rural economy and port-led development by developing the Visakhapatnam-Chennai Industrial Corridor and East Coast Economic Corridor, and setting up of economic zones in the coastal areas would enhance the demand for cargo-handling. “We are very happy with the priorities attached in the Budget. We already have plans for two multi-modal logistic parks in the Visakhapatnam area and another is in the pipeline. Manufacturing regaining buoyancy will definitely encourage cargo containerisation,” Visakhapatnam Port Trust Deputy Chairman P.L. Haranadh told.

Union Budget: Encouraging to see govt committed to GST in 2017 Live Mint The Union budget was expected to make minimal changes in the customs and excise duties and service tax to send a clear signal on the government’s seriousness to implement the goods and services tax (GST) regime in 2017. Even the murmurs about a service tax rate increase to align with the GST rate structure were speculative in my personal view. So as the finance minister’s budget speech unfolded, it was great to hear that he has preferred to avoid making changes in the current excise and service tax regime since GST is around the corner. Even the temptation to raise service tax incrementally was given a pass, which is indeed welcome. Customs and excise duty standard rates have also been maintained. This now signals an intent to implement the tectonic and transformative GST in 2017. Any lingering doubts around GST are now laid to rest and it’s time for all stakeholders to take note and prepare for this journey in right earnest.

Govt to launch TIES to fund export infrastructure Business Standard A new scheme will be launched in 2017-18 to create infrastructure for exports, a move aimed at reducing transaction costs for traders. "A new and restructured central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18," Finance Minister Arun Jaitley said in his Budget speech. Indian exporters face huge challenges in terms of infrastructure, particularly in states. Inadequate infrastructure pushes their transactions costs, impacting competitiveness of Indian goods in the global markets. Exporters body Federation of Indian Export Organisations (FIEO) said the scheme will help create modern infrastructure like last mile connectivity to ports, testing labs and certification centres. "This is a welcome move. The scheme will help in modernising infrastructure in states for exporters," FIEO DG Ajay Sahai said.

Goods imported via Indian ports to become dearer Kathmandu Post Foreign goods imported to Nepal via Indian sea ports are going to become expensive, as the Indian government has imposed 4.5 percent service tax on ocean freight cost, drawing criticisms from Nepali traders. Although the Indian government had introduced the tax for its importers, the provision has affected Nepali traders as well, as Nepal fully relies on Indian clearing agents to handle third-country goods that land at Indian ports. These agents have already started transferring the additional cost to Nepali importers, making third-country goods imported via Indian ports expensive. “It is illegal to impose such a tax on transit cargoes, but the Indian government simply does not care,” said Rajan Sharma, former president of the Nepal Freight Forwarders Association.

Kakinada anchorage port to get face lift Maritime Gateway The age old anchorage port here being given a face lift with development of roads at a cost of Rs 10 crore and construction of a passenger Jetty in full swing. The deep water port which is under private management is now equipped with another berth the seventh in series. While the anchorage port has handled 15 lakh metric tonnes of cargo, the deep water port handled 89 lakh metric tonnes ushering a new era in sea trade. East Godavari District Collector H.Arun Kumar said that land for the container corporation was allotted for handling container cargo at the deep water port. He said that Rajahmundry Airport was also being developed by extending the existing run way from 1750 meters to 3165 meters enabling it to operate big aircraft such as Boeing -739 and A-320.

Indian import tax raises costs, confusion JOC A new tax on logistics services for Indian imports is creating costs and confusion that threaten the steady declines in freight rates from North America and China to India, which now average around $900 per 40-foot-equivalent unit and $500 per 20-foot-equivalent unit. The Ministry of Finance on Jan. 22 introduced a service tax of 4.5 percent on “prepaid” freight and other charges for all cargo discharged at Indian ports, meaning that import deliveries booked on a “cost and freight,” or C&F, basis are subject to the new tax. “The service tax is payable by vessels arriving at any port in India to discharge import cargo, even where agreements for provision of transportation of goods into India have been entered into outside India, between foreigners,” a maritime legal expert told

Grim outlook for panamax container ships Hellenic Shipping News The beleaguered classic panamax containership sector remains under pressure despite a massive scrapping spree that has seen 130 panamax units of 4,000- 5,100 teu removed from the fleet since 2009, including 44 units scrapped in the last four months alone. The panamax fleet currently counts 563 ships, against 643 units two years ago. Two 4,250 teu panamax ships, the INDIA RICKMERS (built Feb 2009) and HAMMONIA GRENADA (built Jan 2010), became the youngest-ever containerships to be scrapped late last year, but the pace of scrapping is barely catching up with the rate at which panamaxes are being displaced by larger ships on trans-Panama routes. Since the opening of the new Panama Canal locks in June last year, 133 panamax ships have been removed from this route.

Major Ports to Go Green, to Save Rs. 75 Crore Annually Business Standard The Ministry of Shipping, as a part of its Green Port Initiative has been emphasizing on use of renewable sources of energy to power Major Ports across the nation. The Ministry aims to set up 91.50 MW of solar energy capacity at the twelve Major Ports and 45 MW of wind energy capacity by the two Major Ports of Kandla and V. O. Chidambaranar. Major Ports have started the process of setting-up renewable energy projects by investing Rs.704.52 crores (Solar Rs. 412.02 Cr and WindRs. 292.50 Cr) in these projects. When completed, these renewable energy projects will help in the reduction of carbon dioxide emission by 136,500 MT annually. These projects will also help to reduce cost of power purchased by utilization of renewable energy for power generation, resulting in estimated saving of Rs 75 crores annually, when fully commissioned.