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.

DAILY SHIPPING NEWS - WEDNESDAY FEBRUARY 01, 2017

FLASH NEWS :

On account of Union Budget 2017-18, due to be presented on February 01, 2017, filing of Bill of Entry’s would not be available from 5 PM onwards on 01-Feb-2017, till completion of updation of all changes in ICES 1.5.   This may take 3 to 4 days which please note.

So, please take all necessary steps to clear the goods from Custom latest by today evening to avoid delays.

Air Freight News :

Van de Weg leaves Volga-Dnepr.

·         Robert van de Weg has resigned as senior vice president of sales & marketing for Volga-Dnepr Group after only three months in the role.  The Russian freighter operator said that van de Weg "will continue to co-operate with the Group on a strategic level".

Van de Weg's surprise career change comes after he was appointed to the senior post in October 2016.  At that time, van de Weg assumed commercial responsibility for both the Group’s scheduled cargo operations and charter businesses, namely AirBridgeCargo Airlines (ABC), Volga-Dnepr Airlines and Atran Airlines.

The three airlines operate a combined fleet of 16 Boeing 747, 12 An-124-100, five IL-76TD-90VD and three 737-400 freighters.

Van de Weg joined ABC in May 2014 as senior vice president of marketing & sales as the airline registered year-on-year growth in Europe, Russia, North America and Asia Pacific.

This is the second senior departure from the Volga-Dnepr group in less that six months. In August 2016, Denis Ilin, executive president of AirBridgeCargo Airlines, resigned after three years in accordance with mutual agreements.

AA Cargo's Jim Butler promoted as Art Torno retires.

·         American Airlines has announced that Art Torno will retire from his role of senior vice president - international and cargo, to be replaced by Jim Butler.  Torno joined American in 1979 as a flight attendant and has held numerous leadership positions, including vice president - New York, vice president - Caribbean and Latin American operations and vice president - Miami.

From 2012 to 2015, Torno served as senior vice president - Mexico, the Caribbean and Latin America, overseeing the airline's operations in more than 80 cities in the region.

In 2015, Torno was promoted to his current role. In this role, he leads American's international operations, which include more than 400 daily flights to more than 110 destinations, as well as the airline's cargo business.

With Torno's retirement, president - American Airlines Cargo, Jim Butler, will assume the role of senior vice president - international and cargo and will report to Kerry Philipovitch, senior vice president - customer experience.

Butler has been with American for 21 years and over this time has “helped strengthen cargo's contribution to the airline and successfully led cargo's integration process, becoming the first operation at American to fully merge”, the airline said.

IATA's ten cargo resolutions as e-AWB penetration misses 2016 target.

·         Global electronic air waybill (e-AWB) penetration reached 48.9% in December 2016, again falling short of the full year target of 56%

IATA has issued ten New Year resolutions for the global air cargo industry.  Top of the list is “embrace e-commerce growth” which accelerated 23.7% in 2016: “Online sales are on the increase, demand is high as well as the need for quick delivery, which creates a significant opportunity for air cargo,” said Glyn Hughes, IATA’s global head of cargo. 

Second is “remove paper”, of which Hughes said: “Today one air cargo shipment can still require up to 30 pieces of paper. The industry needs to accelerate the implementation of end-to-end paperless transportation processes through implementation of programs such e-freight and e-AWB.”

Global electronic air waybill (e-AWB) penetration reached 48.9% in December 2016 with a 682,664 digital documents on feasible trade lanes, again falling short of the full year target of 56%.

However, according to the latest e-cargo briefing by IATA, an e-AWB penetration rate of 62% can be achieved by end of 2017, using a forecasting model based on the historical achievement.

The remaining eight resolution topics are: enhance the movement of trade, standardized processes for transport of time and temperature sensitive goods, collaborate to combat illegal trafficking, eliminate rogue lithium batteries shippers, one digital language, implement piece level tracking, stay positive, and never forget.

Sea Freight News :

Economic Survey 2017: Highways construction, cargo, power-generation record growth Financial Express Despite facing challenging infrastructure deficit in the country aided by resource crunch, debt-laden firms and stressed assets, highways construction and cargo exports registered impressive growth in the first half of FY2017, the Economic Survey said today. Railway earnings saw a dip by about four per cent in the first half of the current fiscal while cargo at major ports saw about 5 per cent growth with cargo export growing by 10 per cent. “On logistics, India is handicapped relative to competitors in a number of ways,” the Survey mentioned indicating that the costs and time involved in getting goods from factory to destination is greater here compared to other nations despite advantages of cheaper labour. It mentions that logistics cost in India is a high USD 7 per km for road transport as compared to USD 2.5 in China, USD 3 in Sri Lanka and USD 3.9 in Bangladesh.

Sudden new ocean freight tax in India confuses and annoys forwarders The Load Star Forwarders are expressing concern and confusion, on the eve of the new budget, over the recently implemented 4.5% ocean freight tax imposed on Indian importers. The tax came into effect on 22 January, with no notice, and is applied to all shipments imported into India which are ‘pre-paid’. If shipments are booked on the basis of cost and freight (C&F) or cost, insurance and freight (CIF), the ocean freight is paid by the exporter. But the confusion – as ever – lies with who must pay the new import tax, with forwarders complaining that they are being treated like banks. One lawyer from Chennai advised: “Where a foreign consignor has engaged a foreign shipping line to transport goods to an Indian port, the person in charge of the vessel, or his agent in India, is liable to pay [the] tax. “It may be noted that this is a peculiar situation: where the person liable to pay service tax is neither the service provider nor the service receiver, but the agent of the shipping line.”

Indore-Tihi rail line set to be operational from Feb Times of India The new rail line between Indore and Tihi is likely to be made operational for goods train soon. Officials with Ratlam Division of the Western Railway said, "The first container train is likely to start on this line from February." They said this new line will pave way for operations of goods and container trains that will provide direct connectivity to industries in Pithampur. It is expected to reduce the distance between Mumbai and Indore by 200 km. This is another reason why Pithampur's industries are eagerly awaiting this new line. The direct delivery of containers would save on travel time. Due to the lack of connectivity at present, goods are being transported to Ratlam by road and then to other destinations via train. Poor connectivity from Pithampur has always been an obstacle for freight exporters of this area.

Transport infra plays pivotal role in economic growth DD News India is the bright spot and fastest growing economy in the world. And to sustain that, one of the most important sectors Government needs to focus on is Transport infrastructure. And PM Modi led government has been doing exactly that over the last two and a half years. Expectations from Budget 2017 from Road transport and Shipping infrastructure sectors are high. Transport infrastructure plays a pivotal role in the growth of the economy. The presence of quality infrastructure paves way for vibrant infrastructure growth. During the budget 2016-17 Govt has allotted Rs.221,246 crores for the country's infrastructure. Rs 97,000 cr was allocated especially for the Pradhan Mantri Gram Sadak Yojana. Rs 1600Cr was proposed to boost Shipping sector and inland waterways.

DRI cracks down on red sanders smuggling, suspected mastermind arrested DNA Pointing to Maharashtra being a major hub for smuggling of endangered red sanders, the Directorate of Revenue Intelligence (DRI) has seized over 12 tons of the red sandalwood worth around Rs 4.87 crore. The raids conducted by the department last week in JNPT, a godown at Kopar Khairane in Navi Mumbai and the air cargo, also saw 101.5 kg of sandalwood worth Rs 8.12 lakh being seized. The DRI has also arrested the alleged mastermind Mohammad Omar. DRI officials said the red sanders were concealed in 26 jumbo bags of iron and bauxite meant for export in Nhava Sheva. Later, a godown located in Kopar Khairane and the air cargo were also raided. While 3,250 kg and 8,720 kg of endangered red sanders was recovered from the godown and port, the raids at the air cargo station saw 204 kg red sanders and 101.5 kg of sandalwood being seized.

US withdrawing from TPP would boost Indian leather exports Kaumudi The United States formally withdrawing from the Trans-Pacific Partnership would benefit the domestic leather industry, a top official of industry body Council for Leather Exports said, here, today. "Already the leather exports to US market has been increasing with an year-on-year increase of about 8 per cent as of 2014-15. With the new President Donald Trump withdrawing US from TPP it will benefit our industry in future", Council for Leather Exports,Vice-Chairman,P R Aqeel Ahmed told reporters. Soon after becoming the new President of United States, Donald Trump last week formally withdrew his country out of the Trans-Pacific Partnership by signing an executive action from the negotiating process of the 12-nation trade deal, one of the major international trade initiatives of his predecessor Barack Obama.

Dubai Launches Programme To Promote Trade With India Silcon India In a bid to promote bilateral trade relations with India, Dubai's Department of Economic Development has launched a programme that allows commercial disputes to be resolved quickly at minimal costs. Dubai Exports, the economic development department's promotion agency, launched the initiative 'Buyer Protection Programme', designed by the Commercial Compliance and Consumer Protection (CCCP), as a pilot project through its Overseas Trade Office in India. The programme allows commercial disputes to be resolved quickly and at minimal costs. Traders in India can now approach the Dubai Exports representative office in their country to submit complaints following which CCCP will start working towards an amicable settlement, a statement released by the UAE's official news agency Wam said.

Amazon begins Freight Forwarding Operations with Shipments from China to US Supply Chain Digest It has been almost a year since Bloomberg and others reported that Amazon was taking steps to build out an end-to-end global logistics service capability that would compete with major 3PLs, forwarders and carriers, perhaps not only to move its own freight but those of others. Amazon moves included getting licenses in both US and China to act as a wholesaler for ocean container shipping. At the time, wondered if it wasn't the most audacious logistics strategy in history. It now appears those reports were indeed accurate. Amazon has begun handling shipment of goods by ocean to its US fulfillment centers from Chinese merchants selling on its site, taking on a role it previously left to global freight-forwarders, as do most other shippers. Amazon's Fledging Freight Forwarding Service has Moved 150 Containers from China to the US Since October, as Global Logistics Strategy Unfolding.

X-Press Feeders Abandons Trans Atlantic Brand Name World Maritime News Singapore’s carrier X-Press Feeders will start operating under its own brand name the three services acquired last year from Swedish shipping company Rederi TransAtlantic AB (RABT), a subsidiary of Viking Supply Ships, Dynamar BV informed. The services including TransBothnia, TransFeeder North and TransFeeder South have been since the acquisition offered under the TransAtlantic container brand. A total of five ships with a capacity ranging from 700 TEU to 1,000 TEU are deployed in the services, which are centered on German ports of Hamburg and Bremenhaven and cover Denmark, Sweden and Finland. In November 2015, TransAtlantic AB reached an agreement to divest its container operation to X-Press Feeders and, in a separate transaction, to divest ship management operations to Sweden-based ship operator AtoB@C.

BIMCO: Supply-Side Crucial for Boxship Market Recovery World Maritime News The demand for container shipping grew steadily in 2016 improving the fundamental balance in the market in the second half of the year, driven by decisive actions by shipowners selling excessive tonnage for demolition, according to BIMCO. An early assessment of the overall market demand growth rate for 2016 is 2.5%. 2016 saw increased demand on all trades. The demand for containership capacity, on the other hand, as evidenced by the very low charter rate levels, showed a total mismatch between demand for and supply of ships for charter. Overall, the peak season in 2016 was longer than normal: from August, right through to November which caused some downward pressure at first, as tonnage was employed in anticipation of a regular season.

Persian Gulf shippers gain Asia link via Hamad service JOC Hamad Port’s receiving of its first ship from Shanghai as part of a regular service on Jan. 26 marks a new way for shippers to feed the Persian Gulf region through recently opened trans-shipment hub. An inbound stop at Colombo enables access to Qatar for shipments from south and east India and elsewhere, while connections to international services and trans-shipment ports from Qatar are made via India’s Mundra port on the outbound leg. The MSC Elma arrived at Hamad after sailing from Shanghai Jan. 5, according to Qatar Ports Management Company. The Elma is deployed on Mediterranean Shipping Co.’s New Falcon service, which utilizes eight ships with capacities of 8,000 twenty-foot-equivalent units. The New Falcon service also calls at Ningbo, Chiwan, Singapore, Mundra, Jebel Ali, Hammad, Jubail Dammam, and Umm Qasr.

Chennai port terminals handle record single day volume of throughput Business Line The two private container terminals - CCTPL and CITPL - at Chennai port together handled record container throughput in a single day with a total handling of 10,063 twenty foot equivalent units on January 28. The previous handling record in a single day was 9,541 TEUs handled on December 30, 2016. Despite severe tariff competition and congestion, Chennai port is regaining its glory and is marching towards a positive growth, said Chennai Port Trust chairman P Raveendran in a press release.

Tanker companies liable to pay for clean-up: Experts The Hindu The two companies whose cargo ships collided on Sunday, causing a massive oil spill — now confirmed as more than 20 tonnes by the Indian Coast Guard — will have to pay for the clean-up, compensation and remediation, legal and environmental experts say. The oil spill has already spread from Ennore to beyond Elliots Beach, along the Chennai coast. “The ship owners will have to compensate for the damage caused to the environment and the clean-up activity. Under Sec. 15 of the NGT Act, 2010, compensation can be granted to those affected,” a senior legal expert on environment told The Hindu. Those who are affected by the oil spill can also move the High Court for compensation under the Admiralty Jurisdiction. This will be heard as a civil suit, the expert said.

BHP launches online freight platform to sink shipping costs CNBC BHP Billiton has launched an online system under which shippers compete to offer the best price to haul cargoes of commodities such as iron ore and copper to the mining giant's customers. BHP this week allocated its first cargo using the auction-style platform, which it hopes will save money as it bypasses brokers who traditionally help negotiate vessel-hire rates between cargo owners and shippers. The company plans to gradually ramp up the platform, which it said was the first of its kind for a major charterer, although it follows in the wake of similar freight portals from companies including Ocean Freight Exchange. Such platforms could potentially overhaul the way miners contract freight services, reducing their costs at a time when commodity markets appear to be picking up following years of low prices.

DAILY SHIPPING NEWS - TUESDAY JANUARY 31, 2017

FLASH NEWS :

On account of Union Budget 2017-18, due to be presented on February 01, 2017, filing of Bill of Entry’s would not be available from 5 PM onwards on 01-Feb-2017, till completion of updation of all changes in ICES 1.5.   This may take 3 to 4 days which please note.

So, please take all necessary steps to clear the goods from Custom latest by today evening to avoid delays.

Air Freight News :

Hactl scoops Vietjet deal for new Hong Kong service.

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VietJet has appointed Hong Kong Air Cargo Terminals (Hactl) to provide cargo terminal services for new flights being launched between Ho Chi Minh City and Hong Kong.

The daily services will be operated using Airbus A320 aircraft and come on the back of growing demand between Hong Kong and Vietnam.

Hactl said that in the first nine months of 2016, Vietnam was Hong Kong’s fifth largest export market, and major export commodities included telecom equipment, meat products and electronic components.

Imports from Vietnam grew 9% in the same period; major import items included electronic components, telecom equipment and footwear.

VietJet launched services in 2011 and today offers 37 domestic and 23 international routes with its fleet of 42 A320 and A321 aircrafts.

Year end cargo boost for airports in Asia Pacific and the Middle East.

Air cargo hubs in Asia-Pacific and the Middle East delivered strong results in November 2016, growing at 9.5% and 9.9% respectively, and recovering from a "stagnant market that persisted from the end of 2015 to early 2016".

In its latest monthly regional report, airport association ACI said that the November growth in Asia-Pacific was largely driven by "increased demand for the year-end rush", plus new cargo flows likely generated from e-commerce.

The top three freight hubs in the region all delivered robust increase: Hong Kong at 7.1%, Shanghai Pudong at 11.6% and Seoul Incheon at 9.5%.

Ethiopian to add seven new destinations by June.

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Rapidly expanding Ethiopian Airlines is set to add even more cargo capacity to African trade lanes with the launch of services to seven new destinations in the first five months of the year.

The Addis Ababa hub based airline announced this morning that between January and June it will launch new services to Victoria Falls (Zimbabwe), Antananarivo (Madagascar), Conakry (Guinea), Oslo (Norway), Chengdu (China), Jakarta (Indonesia) and Singapore.

The airline, which will open a new cargo hub in April,  aims to offer services to 120 international destinations by 2025. With these new additions it will offer flights to 98 cities with its fleet of Boeing 777, Airbus A350, B787 and Bombardier Q-400 aircraft.

Sea Freight News :

Inland Waterways Authority of India starts work on converting 106 rivers into national waterways Economic Times Inland Waterways Authority of India (IWAI) has begun the preparatory works on converting 106 rivers into National Waterways (NWs) by making them navigable. 106 rivers across the country were declared national waterways by the government in April 2016. These rivers would be used to move freight cargo. In phase I, 8 waterways are being considered for development. Some of the states that the eight NWs would cover, include Bihar (NW-37, Gandak & NW-58 , Kosi), Uttar Pradesh (NW-40 Ghaghra), Goa (NW-68, Mandovi, NW-111, Zuari and NW-27, Cumberjua Canal), West Bengal (NW-97, Sunderban), and Assam (NW-16, Barak). "While the Detailed Project Report (DPR) for these waterways are ready, the tender process for fairway development of two NWs namely river Barak in Assam and Ghaghra in Uttar Pradesh respectively have been initiated.

India to levy service tax on freight for imports on delivered basis Economic Times Overseas exporters chartering foreign vessels to supply goods to India will have to pay a service tax on freight from Sunday, a government notification said. It will be the same as the 4.5 percent service tax that India currently levies on free-on-board (FOB) cargoes, where the ship is chartered by a local buyer. Prior to the change, imports in foreign ships hired by the overseas seller - known as on a cost and freight (CFR) basis - have been exempt from this charge. The difference in tax rates has affected the business of Indian shipping lines such as Shipping Corp of India, Great Eastern Shipping Co Ltd and Mercator Ltd. "This will provide a level playing field to Indian shipping companies ... there will be no major impact on importers as most of the service tax is refunded as credit under a (government) scheme," said L.K. Gupta, chief executive at Essar Oil.

How dreams of logistics startups turned to dust Economic Times Ankit Singh, ex co-founder of Truckmandi, a startup connecting logistics providers with customers for inter-city trucking services now works with Ola. Aravind Sanka of TheKarrier has moved on to start a two-wheeler ride hailing App Rapido. They are part of a bunch of entrepreneurs who had big dreams to revolutionise the Indian logistics sector but have retired hurt. The buzz which consumed techies, industry heirs and college friends to unite over a logistics startup in India is fading. 2016 marked a dry spell for startups, especially those related to offering tech solutions in logistics. Atleast six startups, namely, TheKarrier, Truckmandi, Trucksumo, Loadkhoj, Zaicus and Sastabhada, all dealing with truck aggregating for intra as well as inter-city transport have pulled the plug on their operations.

India’s poor export showing is of its own making; here’s a solution to embrace Financial Express Though there are concerns that new US president Donald Trump will further slow the march of globalisation—the World Trade Organization had, in any case, warned of slower trade growth last year—India’s poor exports showing seems more of its own making. Perhaps why, while India’s share of global trade fell from 1.68% in 2014 to 1.62% in 2015, China saw its exports’ share rise from 12.42% to 13.96%. Even Bangladesh’s share rose from 0.18% to 0.22% and Vietnam’s from 0.8 to 1.15% during this period. Although rising wages and lower productivity are traditionally seen as the culprit, a new report by CII-Maersk says India is losing out due to high indirect costs, which accrue from delays and unreliable transportation—these costs could be as high as 38-47% of the total transportation and logistics cost. Moreover, it points that India’s logistic costs are 14.4% of GDP, as compared with China’s 8%.

RBI, Customs dept move to plug gaps in exim trade Business Line The Customs Department and the RBI are sharing data to plug gaps in the export-import trade that leads to situations where remittances are made from importers’ accounts even if goods are not been shipped from the selling country. Banks usually ask for export and import documents — which include bill of lading and customs clearance — before they release funds. While India was generating a unique number for exports, it was not generating a unique number based on the shipping bill for imports. Following the Bank of Baroda scam in 2015, when foreign exchange was remitted from importers’ accounts despite there being no import of cargo, the RBI brought in advisory to generate a unique number for each import as well. This was done about a year and half ago. “After there were problems, we started generating a unique number for imports as well.

Payra Port Development Will Enhance India-Bangladesh Ties Eurasia Views In its efforts to further strengthen India-Bangladesh friendship, New Delhi is eager to develop the neighbouring country’s proposed Payra sea\port. Recent reports suggest that the Sheikh Hasina government in Bangladesh is also likely to award some segments of the Payra Port Project in south-western Patuakhali district to India. India Ports Global, a joint venture between state-run Mumbai-based Jawaharlal Nehru Port Trust and Gujarat-based Kandla Port Trust for overseas ports, is the frontrunner for the contract. It has agreed to design, fund and build Bangladesh’s first deep-sea port at Payra on its own. The initiative by India, if it materialises, will take bilateral ties between the two neighbours to a new high.

India denies talks are on to take over development of Sri Lanka's Trincomalee port New Indian Express Indian official sources on Friday denied Sri Lankan Regional Development Minister Field Marshal Sarath Fonseka’s contention that Sri Lanka and India are in talks for developing the Trincomalee harbor in the Eastern coast of the island nation.Fonseka had made the claim on the sidelines of a conference in New Delhi earlier this week, touching off adverse comments in Sri Lanka on the dangers of trying to balance China and India and making Sri Lanka an arena of big power politics. Opposition propaganda here is that the present Sri Lankan government is eager to give Trincomalee harbor to India to balance the grant of 80 per cent stake in Hambantota harbor to a Chinese state-owned company for 99 years. In fact, India had earlier rejected an invitation to build the Hambantota port for the same reason.

Indian Railways to set up $5 billion development fund Economic Times Indian Railways has circulated a draft cabinet note for setting up a dedicated $5 billion Railways of India Development Fund (RIDF). The fund will to be anchored by the World Bank and will serve as an institutional mechanism for the national transporter to arrange fund from the market for its investments. According to a top railway official, the fund will be managed independently by a non-government entity. "It will support commercially viable investment in railway sector in India over the period of next seven years," the official said, requesting anonymity. Railways expects to construct high traction projects such as various freight corridors, warehouses, last mile connectivity for ports and electrification of various routes using this fund. "Market sounding exercise has been carried out and has received positive response from both domestic and international investors," the official added.

OOIL denies Cosco bid for container line OOCL Seatrade Maritime Orient Overseas International Ltd (OOIL) has denied knowledge of any potential bid for its container shipping business Orient Overseas Container Line (OOCL). Responding to reports in the Wall Street Journal and the Chinese media that Cosco Shipping was readying a bid in excess of $4bn for OOCL, the parent company said in a statement to the Hong Kong Stock Exchange: “The company wishes to clarify that the company and OOCL is not aware of, nor is it involved in any bid relating to the company or OOCL.” Meanwhile Reuters quoted a Cosco Shipping spokeswoman as saying the rumours were "incorrect". OOIL’s share price has surged more than 30% since the start of the year on market talk that it is up for sale. Along with Cosco reported to be readying a firm bid CMA CGM and Evergreen have also been linked as interested parties in the Hong Kong-based line.

April launch of new alliances could create uncertainty in the market Sea News As carriers consolidate their vessel calls into fewer port pairs, there will be winners and losers. For BCOs, there will be fewer choices of routes, and there will be no guarantee that the shipments they book with certain carriers will travel on those vessels because of the numerous slot-sharing arrangements that will be in place when the new alliances begin operating on April 1. Rate volatility is possible as the alliances compete for business, according to IHS Media. Marine terminal operators, however, could feel the biggest residual impact of the alliance reshuffling. The alliances, and the bigger ships they will deploy, will require taller cranes, more yard space, expanded gate capacity, and probably longer hours of operations. Terminal operators and operating ports will have to pick up the bill for these additional costs.

Seaport alliance marks highest container volumes since 2007 The News Tribune The Northwest Seaport Alliance finished strong in 2016 for shipping through the ports of Tacoma and Seattle. Last year’s container traffic through both ports was the highest since 2007, according to a news release from the Northwest Seaport Alliance. The seaport alliance formed a little more than a year ago as a partnership between the Port of Tacoma and the Port of Seattle. The alliance manages cargo business for both ports. The data compare traffic through both ports, both before and after they formed the alliance. In 2016, the alliance managed more than 3.6 million TEUs, or 20-foot-equivalent container units, an increase of more than 2 percent from 2015 container volumes. Full containers of imported goods were also up 6 percent to almost 1.4 million TEUs, and full exports increased 13 percent to 984,274 TEUs, the news release said.

Kalmar to supply new generation empty container handlers to DP World Jebel Ali Port Port News Kalmar, part of Cargotec, has been awarded an order to supply DP World's flagship terminal, Jebel Ali Port in Dubai, with the new generation empty container handlers. The order for 13 units has been booked into Cargotec's 2016 fourth quarter order intake. The deliveries will begin in the second quarter of 2017 and they are scheduled to be completed by the end of 2017, the company said in its press release. Kalmar's new range of empty container handlers was launched in November 2016. The DCG80-45ES8 machines sold have the capacity of eight tonnes and they can stack eight containers high. Every empty container handler in this range comes fitted with the latest EGO cabin as well as with Kalmar SmartFleet remote monitoring and reporting system that improves operational transparency and reduces downtime.

Suezmax Crude Carrier Arrested in Singapore World Maritime News Ambassador, a Suezmax crude oil tanker, has been arrested in Singapore waters, according to Supreme Court of Singapore’s data. The 153,000 dwt ship, owned by Cyprus-based shipping company Transland Bulk Carriers, was detained for undisclosed reasons in the morning of January 19, 2017. Focal Investigation & Security Agency has been appointed for security and investigation purposes related to the arrest of Ambassador, which flies the flag of Saint Kitts and Nevis. Built by South Korean shipbuilder Hyundai Heavy Industries in 1997, Ambassador features a length of 269 meters and a width of 49 meters. Market value of the vessel currently stands at USD 8.6 million, VesselsValue’s data shows. As of January 20, 2017, the tanker’s AIS data shows it is anchored in Singapore Area.