DAILY SHIPPING NEWS - TUESDAY FEBRUARY 14, 2017

Air Freight News :

Dallas adds to cool chain capabilities.

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Dallas Fort Worth International (DFW) airport is adding to its cold chain storage facilities in response to the growth in pharma and perishables traffic.

The Texan hub soon will begin installing equipment at the facility, which will be operated by AirLogistix USA. 

Expected to be operational this summer, the transfer facility will give DFW the ability to control warehousing temperatures for shipments of pharmaceuticals, flowers and fresh foods. 

John Ackerman, executive vice president global strategy and development at DFW, said: “There are tremendous growth opportunities for domestic and international cargo customers to ship perishables through DFW to 180 markets. 

“Today, we handle 66% of the air cargo from Texas, and our cargo tonnage increased by more than eight percent over last year and is up 18% this year. This new facility will increase our handling capabilities and open new doors for all our cargo and logistics partners to ship high-value, temperature and time sensitive products through DFW.” 

The airport handles more than 794,600 tons of airfreight per year, with 14 dedicated freighters serving 22 major cargo hubs throughout Asia, Europe, and North America. Belly cargo capacity is also available to more than 200 global destinations on the 26 passenger airlines that serve the airport.

Qatar expands Pharma Express services.

·         Qatar Airways Cargo is adding further frequencies to its Pharma Express services that link the two European pharmaceutical hubs of Basel and Brussels with its home hub of Doha.

An additional weekly frequency, operating on Fridays, was introduced on the route out of Basel on 3 February, while two further weekly Airbus A330 freighter services linking Brussels to Doha on Wednesdays and Saturdays will inaugurate from 15 February.

From 18 February, Qatar Airways Cargo will operate a total of nine Pharma Express flights each week.

Qatar Airways’ chief officer cargo, Ulrich Ogierman, observed: “Air cargo standards for handling time-and temperature-sensitive commodities such as pharmaceuticals are becoming more stringent, especially with the stricter guidelines on temperature control requirements.

“At Qatar Airways Cargo, we understand the intricacies involved in safeguarding the integrity of temperature-sensitive commodities during shipment. Therefore, we are committed to offering our customers seamless cool chain air logistics as well as uncompromised service standards compliant with Good Distribution Practice (GDP) requirements.”

The Doha-based freight carrier’s Pharma Express flights were first launched in 2015. Now connecting the pharmaceutical hubs of Brussels, Basel, Mumbai, Ahmedabad and Hyderabad with the Qatari capital, they fly a total of more than 30,000 tonnes of pharmaceuticals each year.

All these routes are served by Qatar Airways A330 freighter aircraft, offering between 65 and 68 tonnes of capacity each way.  Qatar Airways Cargo’s QR Pharma service is its specialist product dedicated to pharmaceuticals and healthcare products. It offers both active and passive technologies to maintain the consistent temperature of a shipment throughout the supply chain.

Etihad celebrates another year of expansion, but cargo volumes remain flat.

·         Etihad Airways has reported on what it describes as “another year of sustained growth” in 2016, expansion achieved off the back of new aircraft deliveries, additional frequencies on various services and the introduction of further product offerings.

During the year, Etihad Cargo carried 592,700 tonnes of freight, a figure not dissimilar to that of 2015’s. In 2015, it flew 592,090 tonnes of freight and mail, a 4% increase on 2014.

However, Etihad’s cargo operation expanded its freighter services to several new markets, including Columbus Rickenbacker, Ohio, in the US; East Midlands and London Stansted in the UK; Copenhagen in Denmark; Brussels, Belgium; Addis Ababa and Casablanca in Ethiopia and Morocco, Africa, respectively; Colombo, Sri Lanka; Muscat, Oman; and Zhengzhou in China. These additions brought the number of freighter-only destinations on the Etihad Cargo network to 15.

Over the course of 2016, parent carrier Etihad Airways – which became part of the wider Etihad Aviation Group (EAG) when the latter was formed in May 2016 – operated more than 109,000 scheduled passenger and cargo flights to a total of 112 destinations. 

Last year, it launched Venice in Italy, Rabat in Morocco and Sabiha Gokcen in Turkey as new destinations on its network.

Also during the year, the airline took delivery of 10 aircraft: two Boeing 777-200 freighters, three Airbus A380s and five B787s. A further 12 aircraft are scheduled for delivery in 2017: one A330-200 freighter, nine Boeing 787s and two A380s.

Sea Freight News :

Chabahar Port in Iran expected to open in a month: Afghan Consul Business Standard The strategic port of Chabahar in Iran which is being developed to build a transport-and-trade corridor through Afghanistan giving India an access to global markets is expected to be opened in a month's time, said Afghanistan Consul General Mohammad Aman Amin. "The port is likely to open in a month's time and it will provide impetus to the trade between India and Afghanistan," said Amin in Nagpur on Monday. The construction of this port assumes significance as it will allow bypassing the route through Pakistan for accessing markets in Europe and Central Asia and also save on time and cost of doing business. India had in May 2016 signed the historic deal with Iran and Afghanistan. Amin also hoped that Mumbai to Kabul flight services will be started very soon on the lines of Delhi to Afghanistan route.

Dedicated Freight Corridor to be operational by 2020 Tribune perations of goods trains on Dedicated Freight Corridor (DFC) will start by December 2020, claimed Adesh Sharma, Managing Director of Dedicated Freight Corridor Corporation of India Ltd (DFCCIL). Expected to be a game-changer in the freight transportation sector after it becomes fully operational by the next three years, the Rs 81,459-crore DFC project will also be free from all level crossings, a major safety hazard in rail network. Contracts worth Rs 18,000 crore were awarded during 2016 for the DFC project, Sharma said, adding that while 100% contracts in the 1504-km-long Western DFC have been awarded, for the 1840-km-long Eastern DFC, it is 87%. Ensuring unhindered movement of freight trains, Sharma said, “A total of 1,003 level crossings are planned to be eliminated which will help seamless movement of both rail and road traffic.”

CCI rejects complaint of unfair business practices at JNP Money Control The Competition Commission has rejected complaints that Gateway Terminals India Ltd indulged in unfair business practices with respect to services of container freight stations at Jawaharlal Nehru Port, Mumbai. It was alleged that Gateway Terminals India Pvt Ltd (GTIPL) diverted traffic from its terminal in Mumbai to Pipavav port in Gujarat to increase profits and compelled shipping lines to either use its services or select container freight stations (CFSs) at JNP. The Competition Commission of India (CCI) considered 'market for provision of container terminal services in Jawaharlal Nehru Port, Mumbai,' as the relevant one. Observing that market share of GTIPL has been declining since last three years and that there are other CFSs operating at JNP, CCI noted the company is not in a dominant position in the relevant market.

Goa to cut cargo trafffic, promote shipping with new jetties DNA As many as nine new jetties are likely to come up in the coastal state of Goa to decongest it's road. The move is likely to drastically bring down cargo traffic from the road to promote coastal shipping of cargo. An initial survey by Public Works Department (PWD) of Goa has short-listed nine locations for have new jetties, namely, Raibander, Old Goa or Divar, Banastarim, Borim, Shiroda, Durbhat, Cortalim or Rassaim, Aldona and Bicholim. Now, a detailed project report will be prepared on these nine jetties, a consultant for the same will be appointed soon. "The traffic on the roads has increased manifolds. Due to high density of traffic and narrow roads, accidents on roads are also increasing. This will take off the cargo traffic from the road and will promote coastal shipping of cargo," read a report by Indian Ports Association on development of jetties in Goa.

Government is working for sustainable trade relationship between India and China, says Shaktikanta Das Financial Express Talking about sustainable trade relationship and balance of trade between India and China, Economic Affairs Secretary Shaktikanta Das on Monday said that the government is working towards increasing exports to China to balance a wide trade deficit and formulate a sustainable trade relationship. “We have trade deficit with China, and we would like to increase our exports to China,” said Shaktikanta Das at meeting with the Chinese media delegation in New Delhi here today. “Our commerce and trade dept is working with China to increase our exports there. So that there is parity in trade with China,” he added while saying that for sustainable trade relationship, balance of trade is required between India and China. He further said that the total trade between India and China in 2016 was USD 71 billion, and India had a very wide trade deficit of USD 46 billion.

Cargo ship with Chinese sailors on board detained in India China.org A cargo ship from Jiangsu province with 23 Chinese crew members on board has been detained at India's Haldia port for more than a month. The ship set off from Nantong, east China in July last year, unloaded at Haldia port in December, and has been detained since then. The freighter "Union Demeter" is owned by Nanjing Tranvast Holdings Limited and all crew members are from Nanjing Yuanteng shipping company. Captain Dai Xiaosong contacted Jiangsu News Radio and asked for help. Dai said other boats owned by Tranvast didn't pay refuelling expenses, thus the "Union Demeter" was detained by order of a court in Bombay. In the same month when "Union Demeter" unloaded, the ship owner declared bankruptcy. Sailors said they haven't been paid for five months and the total unpaid wages reached 1.5 million yuan, or 218,000 US dollars.

Productivity week at VOC Port The Hindu ‘Productivity Week’ celebrations of V.O. Chidambaranar Port here commenced on Monday. Speaking on the occasion, S. Natarajan, Deputy Chairman, V.O. Chidambararanar Port Trust, and chief guest, emphasised the need for improving productivity to handle the increased throughput, according to a statement issued by the port trust. Mr. Natarajan said the port was all set to handle 85 million tonnes of cargo by 2025. In order to achieve the traffic forecast, the port was in the process of creating necessary infrastructure. Inviting suggestions from employees and stakeholders for increasing the productivity of the port, he said a committee would be constituted to scrutinise their suggestions for implementation. As part of the celebrations, essay, slogan writing and elocution competitions on productivity aspects would be conducted for the staff.

Shipping department inks deal with India for certification The Daily Star Bangladesh and India yesterday signed an agreement for certification in maritime, industrial survey and inspection in Bangladesh. Syed Ariful Islam, director general of the Department of Shipping and Vijay Arora, joint managing director of the Indian Registrar of Shipping (IRS), signed the deal on behalf of their respective sides in Dhaka. The IRS can now certify the raw materials for shipbuilding and oceangoing vessels. Currently, companies from France, Germany and Italy certify Bangladesh's oceangoing vessels on shipbuilding, safety and inspection. “For signing the agreement, our businesses through the coastal line will be more cost-effective, time saving and safe, as the IRS will have a local representative and can certify swiftly,” said Sakhawat Hossain, managing director of Western Marine Group, which owns Zenith Test and Inspection Services, IRS's Bangladesh partner.

India Can Save $33.3bln If Trade Moves near to Ports Maritime Professional India can save up to USD 28 billion in infrastructure spend and another USD 3.3 billion in transportation cost if 50 per cent of overall trade moves closer to ports by 2020, PTI said quoting an EY report. The EY report said that India ranked as low as 126 out of 189 countries on total cost of trade while China and Germany are ranked at 98 and 18 respectively. The non-major ports on the eastern and western coasts can play a pivotal role in port centric industrial development thereby achieving cost competitiveness through optimsation of network and logistics. Backed with credentials, the report highlights the potential role of non-major ports on the east-coast of the country in leading the sustainable growth path for the country’s maritime trade. While major ports are facing increased congestion owing to constraints in their ability to expand any further, non-major ports in India have a bigger scope for development, according to the report.

GCC countries focus on future strategies Break Bulk Well before oil prices tumbled to their recent historic lows, oil economies in the Gulf Cooperation Council, or GCC, region had already turned to economic diversification programs to develop non-oil sectors. Retail, logistics, tourism and infrastructure all featured heavily in plans to lessen the degree of dependence on hydrocarbon revenues. Of those, concentration on logistics was a shrewd move: the Middle East Gulf nations’ geographical location puts them neatly at the meeting point of the Middle East, Europe and Africa, connecting more than half of the world’s population. As the natural next step, efforts are afoot to develop the region as a major transshipment hub for all kinds of goods, including project cargo. There is a pressing need for such expertise with Dubai’s hosting of the World Expo 2020 and Qatar’s organization of the FIFA World Cup in 2022.

Maersk and MSC add new Asia - Europe and transpac services Seatrade Maritime The 2M alliance of Maersk Line and MSC is launching new Asia – Europe and transpacific services to provide space for volumes from Hyundai Merchant Marine and Hamburg Sud. The new AE7 connects Shanghai, Ningbo and Tanjung Pelepas in Asia with North European ports, with calls in North Africa and the Middle East on the backhaul. On the transpacific the TP18 service connects Chinese and South Korean ports with the US East Coast via the Panama Canal claiming to offer the fastest connection from Hong Kong to Miami. Maersk said the new services would allow the line and MSC to accommodate incoming volumes from HMM, which has a cooperation agreement with 2M, and Hamburg Sud via slot purchase agreements. Neither HMM nor Hamburg Sud will operate vessels on the services.

DAILY SHIPPING NEWS - MONDAY FEBRUARY 13, 2017

Air Freight News :

Airlander 10 expected to fly again later this year.

Hybrid Air Vehicles (HAV) has confirmed that it expects its Airlander 10 airship – the world’s largest aircraft – to fly again in the near future.

The Airlander 10, of which HAV is the designer, assembler and owner, suffered a crash landing in August last year during a test flight from Cardington Airfield in Bedfordshire, in the UK. Following repairs to the aircraft – its cockpit was badly damaged when it crashed – it is hoped that test flights can soon resume.

The “heavy landing” was attributed by HAV to a “technical issue”, and there were no injuries. A spokesperson for HAV confirmed to Air Cargo News today that “things are going well”, and “we aim to fly as soon as we can”.

The Airlander 10 airship employs technology that “combines the best of the characteristics of fixed wing aircraft and helicopters with lighter-than-air technology to create a new breed of hyper-efficient aircraft”, HAV claims.

It is designed to stay airborne for up to five days at a time when manned, and for more than two weeks if unmanned. Amongst its proposed roles is operating as a cargo carrier.

The Airlander 10 makes little noise, creates little pollution, and is therefore very environmentally friendly, HAV notes. Air landers can take off from and land in comparatively small, unprepared sites in desert, ice, water, or open field environments.

Potential customers and investors are said by HAV to be coming from the US, Canada, China, Brazil, Jordan, Kuwait, Qatar the UAE and throughout Europe.

Miami completes first sea-air shipment.

·         Miami International Airport (MIA) has completed its first-ever ocean-to-air perishables transhipment -  10 tons of peas from Guatemala

The peas arrived aboard the Crowley Maritime Corp. vessel Tucana J at Port Everglades on January 30, were trucked to MIA, and then departed to Amsterdam via a Centurion Cargo flight on February 2.

The service comes after the US Department of Agriculture last year approved a permit for the sea-air service and US Customs and Border Protection (CBP) agreed to expedite processing of the ocean shipments before their air departures.

Miami-based Customized Brokers, a subsidiary of Crowley Maritime Corp, partnered with MIA to win approval for the programme, which was first revealed in October.

The logistics firm can now coordinate ocean shipments of perishable products from Latin America to Port Everglades and then transport them to MIA, where they will depart by air to freighters serving Europe, Asia and the Middle East.

The ocean-to-air pilot program will save both time and money for cargo shippers, who will receive expedited air transport for perishable products without paying CBP duties.

US carriers seek Tillerson meeting in Gulf states subsidy row.

·         US Secretary of State, Rex Tillerson

US passenger airline bosses have asked to meet the new US Secretary of State, Rex Tillerson, to discuss allegations that Middle East Gulf states are unfairly subsidising state-owned carriers.

This latest move in a long simmering row has seen the chief executives of American Airlines, United and Delta Air Lines post an invitation to meet Tillerson on the website of US airlines-backed Partnership for Open & Fair Skies (POFS).

“We are writing to bring to your attention an issue of utmost importance to the future of our industry: the massive subsidisation of three state-owned Gulf carriers – Qatar Airways, Etihad Airways and Emirates – and the significant harm this subsidised competition is causing to US airlines and US jobs,” the letter stated.

The letter from the US airlines continued: “The Gulf carriers have received over $50bn in documented subsidies from their government owners since 2004."

All three Middle East carriers hotly contest the allegations, which they say are untrue, and also have the support of a rival US faction, under the US Airlines for Open Skies umbrella, whose members include Atlas Air Worldwide, FedEx Express, JetBlue Airways and Hawaiian Airlines.

American Airlines, United and Delta, frustrated at what they perceive as a lack of action by the administration of former US president Barack Obama, believe that the “America first” position of the new president, Donald Trump, will provide a tailwind to their campaign.

News agency Reuters quoted Etihad Aviation Group chief executive James Hogan, which flies to six cities in the US, as saying earlier this week in Abu Dhabi that  the Gulf carriers will have to wait and see if Trump reopens the Open Skies debate.

"We are not flying into any further points in the US. We are very comfortable with our American network. In regards to how that's addressed moving forward, we have to wait and see.”

Hogan was speaking after Etihad and German flag carrier Lufthansa announced details of a partnership based initially on in-flight catering and aircraft maintenance, but with the potential to widen into other services.

Sea Freight News :

Will Demonetization Scuttle Growth Rate at 12 Major Ports This Year? India Tradeways India’s 12 state-owned ports together loaded 7.14% more cargo or 535.351 million tonnes (mt) between April 2016 and January 2017, led mainly by a 169% growth in iron ore loadings. These dozen ports located at Kandla, Mumbai, Jawaharlal Nehru, Mormugao, New Mangalore, Cochin, V O Chidambaranar, Chennai, Visakhapatnam, Paradip, Ennore and Kolkata, handled a combined 499.686 mt of cargo during April 2015 and January 2016. The 12 ports handled a combined 606.374 mt of cargo in the year ended March 2016 from 581.344 mt in the year to March 2015, posting a growth of 4.31%. It is not clear whether the 12 ports will handle cargo volumes recorded in 2015-16 or even surpass it during the remaining 49 days of the current fiscal, with at least one port official saying that the effect of scrapping of highly value currency notes in November 2016 was just beginning to bite.

Major ports facing stiff competition The Hindu With the powers-that-be encouraging private investments in a big way, the non-major ports are eating into the throughput handled by the major ports. A study conducted by Ernst & Young (EY) in collaboration with Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) has confirmed that going by the trend, the non-major ports will account for a majority share of cargo being handled by the port sector in a few years. The State government also has plans to develop non-major ports at Bhavanapadu in Srikakulam and other places across the State. The National Maritime Development Programme-2020 envisages a huge investment of Rs. 25,000 crore in major ports in capacity augmentation and modernisation projects.

Coastal trade can help India save $28 billion in infrastructure spend: EY Financial Express India can save up to USD 28 billion in infrastructure spend and another USD 3.3 billion in transportation cost if 50% of overall trade moves closer to ports by 2020, an EY report said today. With initiatives like Sagarmala, “it is estimated that India can save up to USD 28 billion in infrastructure investment and another USD 3.3 billion in transportation cost if 50% of overall trade moves closer to ports by 2020,” as per the research report by EY. The report said non-major ports on the east-coast of the country could play a major role in leading the sustainable growth path for the maritime trade. It said global trade increased at a CAGR of 6.9 per cent in value terms during 1990 – 2015, and sea borne trade constitutes 80 per cent of the global trade by volume.

Concor kicks off trial train services to Visakhapatnam MMLP Nyooz Stating that the Container Corporation of India (Concor) is looking at the east coast with great interest for firming up its business, its chairman and managing director V Kalyanarama said the company was start trial runs for train services for its multi-modal logistics park (MMLP) in Vizag from Friday.Participating in the East Coast Maritime Business Summit in the city on Friday, Kalyanarama said the MMLP was being set up over an area of 100 acres with an investment of nearly Rs 450 crore. He said, "Concor has constructed a huge MMLP with 100 acres. The container freight stations are already functioning and we are adding train services. By developing MMLP on 100 acres, we will provide good processing facility and warehousing facility which will be required post GST implementation as warehouses are required for value addition.

CCI clears Maersk firm of anti-competition charges Business Line The Competition Commission of India (CCI) has decided that joint ventures or subsidiaries of Maersk-owned APM Terminals have not contravened provisions of competition law relating to abuse of dominant behaviour, as they are not in a dominant position. The group’s companies include Gateway Terminals India Private Limited (GTIPL), APM Terminals Pipavav/ Gujarat Pipavav Port, APM Terminals Inland Services (Main), APM Terminals Inland Services (Annex) and APM Terminals Management B.V. At the JN Port in Navi Mumbai, GTIPL’s cargo traffic has been declining since 2014-15 when it stood at 45.16 per cent; 45.06 per cent in 2014-15 and 41.42 per cent in 2015-16. Moreover, newer terminals have either begun functioning or are expected to start operations, said CCI.

CMA CGM Boosts India Middle East – East Africa Links World Maritime News French container shipping major CMA CGM has decided to upgrade two weekly services connecting India Middle East Gulf to East Africa, starting from February 20, 2017. The services in question are Swahili Express and Noura Express which have a combined fleet of nine vessels of up to 3,500 TEU, with twelve ports of call. Commencing on February 24 with M/V Chief arriving at the Port of Nhava Sheva, the Swahili service will be operated with four ships. The company will add Mombasa direct call, complementing the existing Dar Es Salaam call. Port coverage at origin will be upgraded with two port calls in India, while Longoni and Zanzibar ports are discontinued, according to CMA CGM. The Swahili service will include the following ports: Nhava Sheva, Mundra, Jebel Ali, Khor Fakkan, Mombasa, Dar Es Salaam, Nhava Sheva.

Cement transport via waterway sets sail Greater Kashmir To promote cargo movement through water in a big way, the government has set in motion transportation of cement on National Waterway 1 on the Ganga. "In keeping with the objective of the government to make cargo movement on National Waterway 1 (Ganga) a regular feature, an Inland Waterways Authority of India (IWAI) vessel MV Zakir Hussain on February 5, 2017 (Sunday), set sail from Haldia to Patna carrying 350 tonnes of cement consignment of Dalmia Bharat Cement," IWAI said in a statement today. Other cement majors like Shree Ultra, UltraTech, Jaypee, Ramco and ACC have also shown interest in transporting their cargo through NW-1, which is being developed under the Jal Marg Vikas Project with technical and financial assistance of the World Bank at an estimated cost of Rs 5,369 crore.

Rs 5L cr worth of orders for roads, ports: Gadkari Nagalad Post The government’s road and highway building programme has enough cash to build the crucial infrastructure, Road Transport and Shipping Minister Nitin Gadkari has said. “We have signed contracts worth Rs 5 lakh crore for infrastructure, roads, ports. It is a remarkable contribution from our investors. We do not have any problem, we are receiving public, private investment... we are receiving good response for the Public-Private Partnership, Build-Operate-Transfer and hybrid annuity (models),” Gadkari told Assocham TV in an interview. As per the 2017-18 Budget, presented by Finance Minister Arun Jaitley earlier this month, the AAA-rated National Highways Authority of India (NHAI) has been permitted to raise Rs 70,000 crore through infrastructure bonds, he said.

Multi-modal logistic park ready: Concor chief The Hindu The maritime business is moving towards multi-modal logistics parks (MMLP) and setting up of such parks close to ports and in the hinterland will bring down the logistics cost and also promote containerisation, said Container Corporation of India (Concor) chairman V. Kalyanarama. According to Mr. Kalyanarama, the Visakhapatnam MMLP built on 100 acres is ready for operation, with warehouses and other facilities including a railway line. “We have spent to the tune of Rs. 450 crore on building the MMLP. Further, we are taking up such parks at Kakinada and Krishnapatnam ports also. We have acquired the land and we will begin the work soon,” he said. He said containerisation was happening in the country but not at the expected pace. According to him Andhra Pradesh has the potential to play a key role on the east coast, as containerisation is moving east.

Charting The Consolidation Of Container Shipping Hellenic Shipping News Last year saw a huge amount of change in the under pressure container shipping sector. In particular, the ongoing consolidation of the sector in one form or another grabbed the headlines. To put this into context, it’s interesting to see how the level of consolidation relates to other parts of shipping, how it has developed over time and how it might progress looking forward. It’s quite clear that the shipping industry is a fairly fragmented business. On the basis of start 2017 Clarksons Research data, 88,892 ships in the world fleet were spread across 24,267 owners. That works out at less than 4 vessels per owner. Although 145 owners with more than 50 ships accounted for almost 12,000 of the vessels (and 29% of the GT), it’s still not that consolidated.

India Disposes of Alang Hazardous Waste from Shipbreaking World Maritime News All hazardous waste generated at Alang shiprecycling facilities is being disposed of “in a safe and environmentally sound manner” in Gujarat Pollution Control Board authorized Treatment, Storage and Disposal Facility (TSDF) site, India’s Ministry of Shipping informed. Operated by Gujarat Maritime Board, the landfills are constructed as per the Guidelines of Central Pollution Control Board and provided with liner system in bottom which prevents leachate to percolate to the sub-soil. “Monitoring of environmental parameters is done by Gujarat Pollution Control Board regularly. Regular health checkup for the workers is also conducted by GMB. Environmental Impact Assessment is carried out whenever creation of new yards or expansion and upgradation of existing yards is taken up,” the government said.

Work begins to refloat cargo ships that ran aground in Sharjah during storm The National Work has begun to refloat several cargo ships that ran aground in a storm last week in which at least three sailors died. Five vessels were washed up on the coasts of Sharjah and Umm Al Quwain. On Sunday, one cargo ship was being floated at Al Hamriya beach after running aground off Sharjah in bad weather. Another vessel sank in the storm, claiming the lives of at least three Indian sailors, whose bodies were recovered from the sea. Two crewmen were rescued by coastguards and five were helped from the sinking ship. Two others in the 12-man crew remain unaccounted for. Municipality teams and representatives of the company managing one of the other ships are now working on manoeuvring the ship towards the sea to allow tugs to pull it into deeper water to float it.

DAILY SHIPPING NEWS - FRIDAY FEBRUARY 10, 2017

Air Freight News :

Pharma firms continue drive to seafreight.

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Pharma shippers are likely to continue to try to move away from a reliance on airfreight but will also look to outsource more of their supply chain operations.  Speaking at the Temperature Controlled Logistics event in London, pharmaceutical company Teva’s senior director, logistics Europe, Val Petursson, said that he viewed using airfreight, rather than less expensive sea freight, as a mistake in most cases.

Petursson said that airfreight was usually used in pharmaceutical supply chains because of internal issues such as low demand forecasting accuracy, problems with manufacturing or poor contracts with manufacturers.  “This is where we can do much, much better. If we want to benchmark ourselves against other industries like high-tech and automotive.  We are paying millions and millions and millions just because we are too slow or lazy or misaligned,” he said.  However, he added that in certain cases there was a need to use airfreight.

Cross-border e-commerce set to outpace domestic online orders.

·         Cross-border e-commerce is predicted to grow at twice the rate of domestic online retail, with an estimated 25% compound annual growth rate (CAGR) until 2020 worth $900bn, according to a new survey.

Ken Allen, chief executive of research sponsor DHL Express, said: “Going global and going premium is an opportunity for retailers in all markets.”

The report – The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity – looks in detail at the markets and products that offer the highest growth potential, the preferences of customers making international online purchases and the success factors for online retailers that wish to expand overseas.

It focuses on the opportunity for premium products and service offerings, with higher basket values accounting for a significantly higher proportion of cross-border orders, suggesting that retailers can grow 60% faster with a premium service offering.

The report reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from $300bn to $900bn) – twice the pace of domestic e-commerce growth.

Amazon's new air hub a "base for future growth".

·         Amazon’s planned centralised air cargo hub at Cincinnati/Northern Kentucky Airport will be a base for future growth.

Speaking shortly after the e-commerce giant announced its fourth quarter results, Amazon senior vice president and chief financial officer Brian Olsavsky explained why the company was investing in the new hub.

“What it does for us is it gives us a base for future growth,” Olsavsky said. “It's all about supplementing our existing capacity − both our partners and ourselves − and essentially building capacity that can handle our top line growth and also the growth in Amazon Fulfilled Network units which as I just mentioned is even higher than our paid unit growth.

“It’s the same as some of the investments you saw in airplanes last year, our partnerships with companies that do air cargo.

Sea Freight News :

Govt to develop economic corridors, logistics parks Times o India With an aim to boost "logistics efficiency", the Centre is looking at developing economic corridors and also planning to come up with logistic parks on national highways, Parliament was informed today. "Ministry of Road Transport and Highways got a study conducted on logistics efficiency enhancement. The report has made several recommendations including, inter alia, development of economic corridors, feeder routes and removal of choke points, along with development of logistics parks on national highways," Minister of State for Highways Mansukh Lal Mandavia told the Rajya Sabha in a written reply today. He said the recommendations have been accepted and the work of developing logistics parks at identified locations in partnership with state governments has been entrusted to National Highways Authority of India (NHAI).

Thrust on reducing logistics cost through waterways under Sagarmala The Hindu Inland Waterways Authority of India (IWAI) chairman Amitabh Verma on Thursday said that inland waterways were being promoted in a big way under the Sagarmala project to drastically cut the logistics cost. He said that initially five waterways were identified, but work could not be taken up because of problems arising from the classification of river waters as a State subject. Increase in population as well as pressure on rail and road networks created a necessity for waterways, which were declared a national priority by Parliament. He said that the Centre had already declared 106 water bodies as national waterways. The IWAI employed world-class consultants to conduct studies on rivers, feasibility, commercial terms, designing for barges suitable for low draft, river terminals, dredging, and hydrography.

APM Terminals Pipavav Implements e-SMTP for Paper-Free Customs Clearance Process India Tradeways APM Terminals Management B V-owned Gujarat Pipavav Port Ltd, which runs the harbour at Pipavav in Gujarat, has implemented e-SMTP (electronic Sub-Manifest Transshipment Permit) in a bid to ease customs process and cut cargo dwell time at the port. Containers at Pipavav Port are being released for train loading according to the e-SMTP messages received from ICEGATE (Indian Customs Electronic Commerce/Electronic Data interchange (EC/EDI) Gateway) through PCS (port community system). By implementing e-SMTP, containers can be planned for loading within couple of hours of vessel’s inward entry filed by customs in ICEGATE. Implementation of the new system will help in a quick turnaround of cargoes, thereby resulting in 12 to 48 hours of savings every week.

Terminals at major ports to attract cruise tourism India Today To promote cruise tourism in India, the government has developed terminals at four major ports -- Mumbai, Mormugao, New Mangalore and Cochin -- and also allowed foreign vessels to call without licence from Director General of Shipping, Parliament was informed today. Also, a new cruise terminal is under development at Chennai Port and scheduled to be completed by February 2017. "To attract cruise lines/ships as a part of cruise tourism in India, the government has developed cruise terminals at four major ports namely Mumbai Port, Mormugao Port, New Mangalore Port and Cochin Port," Minister of Shipping Nitin Gadkari informed Lok Sabha in a written reply. Gadkari said foreign flag vessels carrying passengers have been allowed to call at Indian ports till February 5, 2024 without obtaining licences from Director General of Shipping.

India can save $30 bn by moving part of trade closer to ports by 2020: EY Business Standard India can save up to $ 28 billion in infrastructure investment and another $ 3.3 billion in transportation cost if 50 percent of overall trade moves closer to ports by 2020, according to a report prepared by the professional advisory services firm EY (formerly Ernst and Young). India ranked as low as 126 out of 189 countries on total cost of trade while China and Germany are ranked at 98 and 18 respectively, the report said. The EY report "Knowledge Paper on Port Sector", which was released by Andhra Pradesh Chamber of Commerce, maintained that the non-major ports on the eastern and western coasts can play a pivotal role in port centric industrial development thereby achieving cost competitiveness through optimsation of network and logistics.

JNPT gains clients for struggling import plan JOC The number of imports shipped via a program to speed their movement through India’s largest port jumped 19 percent year-over-year from April to January, but the port is still far behind its target of moving 40 percent of imports via the direct port delivery scheme. With only about 4 percent of imports moving through the program thus far in the fiscal year, it will be difficult for Jawaharlal Nehru Port Trust to meet the Ministry of Shipping’s target of 40 percent, a target that is set to nearly double to 70 percent next fiscal year, which begins in April. The program is seen as critical to lowering logistics costs by cutting container dwell times and increasing port productivity. Officials also suggested lines provide round-the-clock services to facilitate speedy clearance of DPD cargo, and JNPT customs authorities previously told container terminals to keep gates open 24/7.

Inland waterway cargo traffic in AP to start in Dec Times of India With focus on decongesting cargo traffic on roads and railways, the Inland Waterways Authority of India (IWAI) is in the final stages of setting up a special purpose vehicle (SPV) with the AP government for development of National Waterway-4 from Kakinada to Puducherry across a length of 1,080 kms. IWAI has set a target of December 2017 for the first cargo movement to take place on a stretch between Muktayala and Amaravati. As part of the first phase, IWAI has zeroed in on the stretch from Kakinada to Muktyala via Vijayawada and has divided it into two parts including one from Muktyala to Amaravati and the second from Vijayawada to Kakinada. He said, "For the development of waterways in AP, the AP government has agreed to set up an SPV with 49% share of AP and 51% of IWAI on behalf of the central government.

Lots need to be done to increase India’s exports, says Union Minister Anant Geete Financial Express Admitting that Indian businesses are facing multiple challenges in overseas markets due to the globally competitive environment, Union Minister Anant Geete today said a lot needs to be done to boost the country’s shipments. “We need to do a lot in the direction of increasing exports. In this era of globalisation, competition has reached a global level. Our businesses are facing multiple challenges to sustain in the global competitive environment,” Union Heavy Industries and Public Enterprises Minister Anant Geete said. “Unfortunately, since 2014 the export growth overall has not been very conducive although it has picked up over the last five months. Therefore, I urge all members of this exporting community (CAPEXIL) to find ways and means of boosting India’s exports,” J K Dadoo, Additional Secretary & Financial Advisor in the Ministry of Commerce said.

BIFA: Shipping lines to charge Service Tax to Shippers for exports to India Hellenic Shipping News The Indian Government Ministry of Finance has recently notified further amendments to its Service Tax Rules 1994 – referring to amendments initially announced with notification No. 30/2012 – Service Tax. These amendments are referred to as the ‘Service Tax (Amendment) Rules, 2017’ and came into force on 22 January 2017 – only 10 days after publication and with too little time for the trade to react and deal with any changes. The Service Tax under this rule is an indirect tax levied on services as specified by the Finance Act. The current amount of the Service Tax is 4,5%. Import freight charges have been subject to Service Tax for all collect shipments since June 2016, with freight prepaid shipments being exempted. With the current ‘Service Tax (Amendment) Rules 2017’, the exemption for freight prepaid shipments is withdrawn making them also subject to Service Tax.

CONCOR announces scheduled train services between Vadodara & Pipavav Port The Container Corporation of India has announced scheduled train services between its Vadodara terminal and the Port of Pipavav. The first service will depart from RCT-BRC on March 8, 2017. This will be followed by another service on March 22. The third train will run from RCT-BRC on April 5, 2017. As many of the vessels call at Pipavav Port on Saturdays/Sundays, the schedule is planned to cater exactly to the trade’s needs, emphasised a release. This new initiative is to cater to the huge demand from the ex-im trade for rail movement of containers between Vadodara and Pipavav, the release said, adding that the frequency can be increased to one train a week and more depending on the response. This is a time- and cost-effective initiative from CONCOR for the ex-im fraternity, the release stressed.