DAILY SHIPPING NEWS - TUESDAY 28, 2017

Air Freight News :

Moscow’s Sheremetyevo saw 2016 cargo surge.

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Moscow’s Sheremetyevo Airport saw a near 30% surge in freight volumes during 2016 to around 231,000 tonnes.

Moscow Cargo is the main handler at Sheremetyevo Airport, handling more than 90% of total air cargo throughputs at the Russian hub where Russian Federation national carrier Aeroflot and freighter operator AirBridgeCargo (ABC) are the major sources of volumes.

A spokesperson for the airport said: “In 2016, there was a significant growth in transportation of transfer cargo through Sheremetyevo.   “The airport has made serious investments in the development of the cargo terminal infrastructure, making it possible to ensure safety and efficient integration of perishable and temperature-sensitive cargo”.

“Due to mutual efforts by the airline and the airport in 2016, ABC was the first company in Russia that received an IATA CEIV Pharma certificate, confirming fulfilment of the requirements of pharmaceutical companies for transporting over the entire route network, primarily, through Sheremetyevo Airport.”

Mail traffic volume through Moscow Cargo grew by 27% in 2016 to 25,000 tonnes, due to “the intensive growth of the sales volumes on the Chinese on-line market,” said the airport spokesperson.

Cathay Pacific reveals ‘solid start’ to the year.

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Cathay Pacific

Cathay Pacific and Cathay Dragon (formerly known as Dragonair) flew a total of 151,133 tonnes of cargo and mail last month, an increase of 2.3% compared to January 2016.

The combined cargo and mail load factor rose by 0.3 percentage points to reach 61.9%.

Capacity, as measured in available cargo/mail tonne-km, was up by 0.5%, while cargo and mail revenue tonne-km (RTK) traffic increased year on year by 1%.

Cathay Pacific’s general manager cargo sales & marketing, Mark Sutch, noted: “We got off to a solid start in 2017.

“Tonnage grew ahead of capacity and showed an increase over the same month last year. We saw a good rebound in demand from Hong Kong, Mainland China and various key Asian markets.”

Meanwhile, Sutch observed: “Yield was sustained through a better mix of priority and special shipments. There was also robust demand for fresh produce and seafood across the network.

UPS hits out at plans to triple Alaska's jet fuel tax.

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UPS has hit out at proposals to triple the jet fuel tax in Alaska − home to the world’s fifth busiest cargo airport − a move that the integrator says could impact the state’s role in the cargo industry.

In a letter to Alaska Transportation Committee Co-Chair Adam Wool, UPS vice president of public affairs Nick D'Andrea said that an increase in the jet fuel tax would effectively tax UPS twice as it already pays landing fees.

The proposed tax increase, which will come in over two stages, also covers gasoline and marine diesel and is part of state efforts to help reduce its budget deficit of $2.7bn.  Money raised by each sector through the fuel tax would be ring-fenced for investment in infrastructure used by that particular sector.

The Alaska Air Carriers Association said the tax would only cover domestic US and intra-Alaska flights – an exemption for flights from a foreign destination or foreign-origin flights heading onto other airports in the US would be maintained.

UPS was not the only airline to hit out at the proposals, with Delta Air Lines and Alaska Airlines also expressing their disapproval.

However, the Aircraft Owners and Pilots Association (AOPA), Alaska Air Carriers Association and Alaska Airmen Association support the measure because of the funding it would bring to regional airports.

Sea Freight News :

Infographic: New Alliances’ Asian Trade Impact Port Technology Some ports in Asia will see calls halved when new alliance service structures come into effect in April. Container trade in the region has been on the rise with Vietnam, India, Malaysia and China leading the way, shown in the Global Trade Fun Facts Intra-Asia trade infographic by Xeneta, with its second infographic (below) showing why the alliances may have a detrimental impact on Asian ports. Nine of the top ten world container ports are Asian and the regional competition and alliances’ concentration of shipping could mean that there are some ports that find themselves a “big-time loser”, according to Olaf Merk, Administrator of Ports and Shipping with the International Transport Forum (ITF), who will be sharing more alliance insight at the PTI Terminal Automation & Training C-Level Networking Conference.

Adani Enterprises plans ship-fuelling business expansion Live Mint Adani Group plans to expand its share in the ship-fuelling market by leveraging the ports it has on India’s east and west coast. The idea is to use its ports to fuel the ships passing through the country, taking away business from ports at Fujairah, Dubai and Singapore, and expanding the 1 million tonne (mt) Indian bunkering market valued at Rs4,000 crore to 3.5mt by 2020. Bunker or ship fuel accounts for the majority of a ship’s operating costs. Adani Enterprises Ltd, which already boasts a 40% share of the business in India, wants to add one location a year for the bunkering business, said Vinay Prakash Goel, chief executive officer, trading and mining. “Singapore accounts for a substantive share of the global bunker market due to its geographical location and facilities offered. For Indian bunker market to compete, we need infrastructure at the ports,” said Goel.

India, other SE Asian nations improving land, sea connectivity: Nirmala Sitharaman ET Auto India and the South East Asian nations, including Myanmar and Cambodia, are enhancing land and sea connectivity to boost trade and are working on various projects such as Kaladan Multi-Modal Transit Transport, Union Minister Nirmala Sitharaman said on Monday. She said huge potential exists in the Cambodia, Laos, Myanmar and Vietnam (CLMV) nations for Indian manufacturers. The Commerce and Industry Minister said India and CLMV countries are working on accelerating projects to improve port, road and air connectivity. India and Myanmar are cooperating to connect the Bay of Bengal ports (Visakhapatnam-Krishnapatnam) and the Sittwe port (in Myanmar), Sitharaman told reporters here. She was speaking here for the 4th India-CLMV Business Conclave, organised by industry body CII.

Vallarpadam terminal registers19% growth in cargo volumes Business Line ICTT, Vallarpadam has registered a 19 per cent growth in volume for the 10-month period between April and January over the corresponding period of FY15-16. This is the highest growth rate achieved much ahead of closing of the current financial year. Last year, the terminal had achieved 14.5 per cent growth over the previous fiscal year. The terminal clocked an average gross crane rate (GCR) of 32 moves per hour in 2017, which is in line with international standards. The truck turnaround time of 26 minutes, gate-to-gate, displays the terminal’s operational efficiency. All services, particularly those connecting the Far East, West Asia and Europe, have been doing exceptionally well. The company has initiated steps to introduce a new dedicated rail service, scheduled to start in March, which will increase the connectivity between Karnataka and Kochi terminal.

Govt mulls joining global customs pact on smoother trans-shipments Smart Investor India's merchandise imports and exports may soon face minimum interference by foreign customs authorities during trans-shipments as the government mulls signing an international agreement in this regard. The Commerce Ministry is in the process of preparing a cabinet note which proposes that India become a signatory to the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention). The Convention will allow India to join an international customs transit system that allows containerised goods to reach their destinations smoothly without the need to be inspected every time it crosses an intermediate border. It also provides customs authorities with the required security and guarantees. It is expected to significantly bring down the cost and time involved in international merchandise movements across land, sea and inland waterways, a senior Commerce Ministry official said.

Centre mulls dedicated cargo airport for Telangana, UP The Hindu The Centre is considering a proposal each from Telangana and Uttar Pradesh for setting up a ‘dedicated cargo airport.’ Telangana wants a dedicated cargo airport to be built in northern Hyderabad, while Uttar Pradesh is seeking the green signal to construct one such airport in the western part of the state, official sources said. The Centre has informed these two states that the Airports Authority of India (AAI) had appointed a consultant to study and suggest name(s) of airport(s) or site(s) in the country that can be ‘developed’ or ‘converted’ as ‘dedicated cargo airport(s)’ – which may also be termed as ‘merchant airport(s).’ The AAI, subject to the Centre’s approval, would facilitate the construction of such dedicated cargo airport(s) once the site(s) and plans are finalised, and after finding that the same would be geographically suitable for air transportation, the sources said.

As GST approaches, CBEC looks at restructuring itself Smart Investor Amid staff concerns over redundancy in the post-goods and services tax (GST) regime from the coming financial year, the Central Board of Excise and Customs (CBEC) is identifying new areas of work in international customs, risk assessment, post-clearance audits and taxpayer services, among others, to remain relevant. With limited administrative role under GST, the indirect tax department is aiming to redeploy. "There are a lot of areas where maturity of administration needs to go up. We are not able to perform in those due to lack of workforce and resources. GST is one opportunity -- it will free-up manpower to concentrate on important areas like data analysis, intellectual property, risk assessment, etc," said a senior official. There will be new Customs divisions. One on dispute resolution, capacity building and compliance is being deliberated.

LNG carrier Al Khattiya damaged after collision with oil tanker off Fujairah Seatrade Maritime The Al Khattiya LNG carrier, owned by Qatar’s Nakilat and managed by Shell’s shipping unit Stasco, has suffered damage on its starboard side after a collision with an oil tanker off Fujairah. Pictures show a hole in the side of the vessel that was caused by the accident that took place on February 23. Some additional damage to the hull of the vessel can also be seen. Two ballast tanks aboard the 121,946 dwt liquefied natural gas (LNG) carrier Al Khattiya were breached with a loss of some ballast water. The vessel’s manager Shell International Trading and Shipping Company said that the incident did not cause any injuries or pollution, while indications show no loss of LNG containment from the cargo tanks. Media reports name the oil tanker Jag Laadki, operated by India’s Great Eastern Shipping Company as the other vessel involved in the accident.

Rapid claim settlement of marine insurance Maritime Gateway HDFC ERGO General Insurance Company, India’s third largest non-life insurance provider in the private sector, has entered into an agreement with RIVIGO, India’s leading logistics solutions provider, to provide Real-time Policy Issuance and Rapid Claims Settlement (RCS) for Marine Insurance policies for RIVIGO’s customers. Through this tie-up, the aim is to ensure the efficiency in policy issuance and delivery process as well as cut down on physical processes in claim settlements. RIVIGO’s Consignment Note preparation process will be integrated with HDFC ERGO’s policy issuance process. This will facilitate real-time issuance and delivery of the policies to RIVIGO’s customers through emails. Further, with Rapid Claims Settlement (RCS), the claim settlements will become a real-time process.

ZIM Unveils its Restructured Network Hellenic Shipping News As part of ZIM’s strategy, we are pleased to introduce the final phase of our new network, commencing April 2017. ZIM’s new service ZIM MED PACIFIC (ZMP), will serve both the Asia-PNW trade and the Asia – East-Med/Black Sea trades. The service will deploy 15X4.5k vessels, allowing for operational advantages and high schedule reliability, along with competitive transit time and topmost service levels. ZMP rotation: Port Kelang – Cai Mep – Da Chan Bay – Yantian – Xiamen – Ningbo – Shanghai – Pusan – Vancouver – Pusan – Qingdao – Shanghai – Ningbo – Da Chan Bay – Port Kelang – Ashdod – Haifa –Istanbul – Novorossiysk – Odessa – Istanbul – Haifa – Port Kelang.

DAILY SHIPPING NEWS - WEDNESDAY FEBRUARY 22, 2017

Air Freight News :

ATSG: United Star Express launch expected this year.

·         The launch of new Chinese express airline United Star Express is now expected before the end of 2017, but the carrier’s joint venture partners are already starting work on building the fleet.

The new airline, a joint venture between US aviation firm ATSG, airline Okay Airways and online retailer VIP Shop Holdings, had originally been planned for launch in 2016.

However, delays in obtaining approvals mean the launch has been delayed.  Speaking at the Stifel Transport and Logistics conference, ATSG chief commercial officer Richard Corrado said: “We are about half way through our process right now and hope to have the airline up and flying in China by the end of 2017.”

Corrado said the partners were wasting no time in securing aircraft so they were ready for launch. He added that the process ATSG was going through to secure and convert the United Star Express aircraft demonstrated how its new business model will work following the recent acquisition of conversion and MRO house, Pemco.

Lufthansa and pilots' union agree to mediator's recommendation.

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The dispute over pay between Lufthansa and its pilots looks to be coming to an end as both groups have agreed to mediator recommendations.

The two groups said they agreed to the mediator’s recommendation of an annual pay rise of 2% backdated to January 2016, another rise of 2.3% from January 2017, another rise of 2.4% in 2018 and a further 2% in 2019.

There is also an additional one-off payment amounting to a total of approximately €30m, which is expected to total around €5,000 to €6,000 per full-time employee.  The new agreement will cover Lufthansa, Lufthansa Cargo and Germanwings and will run until the end of 2019.

Lufthansa said that implementing the agreement would cost around €85m per year. The dispute resulted in strikes late last year.  The agreement will now be voted on by members of the Vereinigung Cockpit union

Atlas Air scoops Asiana Cargo B747 deal.

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Asiana Cargo has awarded Atlas Air with a contract to operate one of its Boeing 747-400 freighters on a transpacific route.

Atlas said that the contract would initially cover a single aircraft covering "key global routes across the transpacific", connecting South Korea with several destinations in the US.

Atlas Air Worldwide president and chief executive William Flynn said: "We are delighted to welcome Asiana Cargo as an important addition to our customer portfolio.

“Asiana takes pride in providing reliable, high-quality service, and we are very pleased to be chosen to manage an important part of its international network.

We look forward to providing Asiana and its customers with unmatched service and a platform for future expansion.”

Kwang Suk Kim, executive vice president, Asiana Cargo, added: “Asiana Cargo is pleased to announce its partnership with Atlas Air, the most reliable air cargo partner.

Sea Freight News :

Will Alang Cross the Bridge to Sustainable Ship Recycling? India Tradeways The world’s largest stretch of ship breaking beaches located at Alang in India’s north western state of Gujarat, is anxiously awaiting its moment of truth in its transformation into a sustainable ship recycling spot. Green groups are piling pressure to block a handful of ship recyclers in Alang, India who have upgraded their facilities to comply with an impending global rule on safe and environmentally sound recycling of ships, from gaining an entry into a list to be approved by the European Union based on its own recycling regulations, where EU-flagged vessels can be recycled. The relentless onslaught by industry watchdogs against upgraded Alang yards is scaring away large shipping companies from considering the Indian facilities for their green recycling needs, putting spokes in Alang’s bid to emerge as a sustainable recycling place and erase its reputation for unsafe and unsound breaking practices.

MANSA appeal to CBEC to withdraw service tax circular or defer it to Oct 1 Hellenic Shipping News In order to avoid claims and disputes ending into long standing legal battles, Mumbai and Nhava Sheva Ship Agents Association has appealed to the Central Board of Excise and Customs to withdraw the notification on service tax completely or defer to Oct 1. In a letter addressed to Najib Shah, chairman of CBEC, MANSA said, “The implementation of such taxation countervails the Governments earnest efforts in achieving ease of doing business lest it might lead to loss of business to Indian Enterprises. It may be noted that the meagre earnings the Ship Agent realized for attending and rendering services to the ships are far below the required level of resources for meeting the payment of the prescribed Service Tax as proposed.” The association has called for full deliberation and requested to issue sufficient advance notice to the Principals/Owners of the vessels as well as all other stakeholders

Gujarat coastal economic zones in the works DNA The three Coastal Economic Zones (CEZs) proposed in Gujarat will have facilities related to petrochemical, apparel, automobile, marble furniture, cement and maritime. A consultant will be appointed within a month to prepare a detailed master plan for CEZs in the region. Under the larger Sagarmala Programme, there are plans to have 14 CEZs at different locations across India, of which three will be in Gujarat at Kutch, Saurashtra and South Gujarat (Suryapur). "The industrial clusters proposed to be developed in these three CEZs will be related to petrochemical, automobile, cement, etc. The perspective plans were also prepared for these CEZs," reads the tender document inviting request for proposal (RFP) for preparing the master plan. Kandla and Mundra ports have been appointed as nodal agency for the project to develop CEZ and Coastal Economic Units (CEUs) in Kutch region.

India’s warehousing market after GST – Industry perceptions ET Retail While India is still in the process of finalizing the blueprint of its most important tax reform, more than 160 nations have already adopted a unified indirect tax structure. In Asia, countries such as Indonesia, Thailand, Singapore and the Philippines adopted a Goods and Services Tax (GST) during the 1980’s and 1990’s, creating an effective tax system with a comparatively lower cost of administration and collection. Due to the multiple tax rates at the state and city level, goods often spend a substantial amount of time in transit. This increases the overall cost of transport and makes the system inefficient. The removal of various federal tax barriers and creation of a common market will improve supply chain efficiency and attract more FDI. Stipulations in the proposed law are expected to result in better tax conformity, while removing the cascading effects of the current tax regime.

China-Brunei JV starts running Brunei's container terminal - Xinhua Times of India A joint venture between China's Guangxi Beibu Gulf Port Group and a government-linked Brunei investment company started running Brunei's largest container terminal on Tuesday, the official Xinhua news agency said. The move is the latest in a series of steps taken to further China's "One Belt, One Road" scheme to promote infrastructure projects along historical land and sea trading routes as a way to bolster the country's slowing growth. Muara Port Company Sdn Bhd, a joint venture between Guangxi Beibu and Brunei's Darussalam Assets, will manage operate, maintain and develop the Muara Container Terminal in Brunei, on the north coast of Borneo. "Brunei is an important country along the 21st century Maritime Silk Road. We hope that bilateral cooperation in every field can be further deepened," Chinese Ambassador Yang Jian was reported as saying at the opening ceremony.

Perishables centre officially launched at India's Kempegowda airport Air Cargo News Air India SATS Airport Services has officially launched AISATS COOLPORT, India’s first integrated on-airport perishable cargo handling centre, at Kempegowda International Airport, Bengaluru. The 11,000 sq m facility is designed to meet handling requirements for perishable cargo such as pharmaceuticals, fruit, vegetables, flowers, meat and seafood. It is able to handle up to 40,000 tons of cargo per annum and offers end-to-end cold chain benefits including refrigerated trucking services, cool trolleys and thermal blankets, as well as temperature controlled container handling. The trial operating period of AISATS COOLPORT, which extended from October 2016 to January 2017, saw a 27% growth in perishable tonnages in comparison to the same period last year.

The Chabahar-Gwadar Conundrum Kashmir Reader The geo-political situation in South Asia is changing swiftly. This can be credited to the fact that the emerging powers in the region are redefining their presence. Friends are becoming foes and vice versa. The proximity of the South Asian region to the oil rich West Asia has changed politics of the region. Pacts are being signed; alliances are being made between countries of the region, befitting their economic and political interests. For instance, Pakistan’s quest to boost its ailing economy by signing China-Pakistan Economic Corridor (CPEC) with People’s Republic of China is seen as a landmark of economic cooperation between the two nations. Pakistan as part of a CPEC agreement handed over construction of Gwadar Port to China. Gwadar is a deep sea port located in the Baluchistan Province, the Southwestern part of Pakistan.

EU Regulators to Rule on Maersk, Hamburg Sud Deal Next Month G Captain EU antitrust regulators will decide by March 27 whether to clear world No. 1 shipping company Maersk Line’s bid for German rival Hamburg Sud, its first major deal for more than a decade. The deal, one of several in a sector seeking consolidation to offset low freight rates and oversupply, was filed to the European Commission on Feb. 20, according to the EU executive’s website on Tuesday. The EU competition enforcer can extend its review by about two weeks if Maersk offers concessions to address regulatory concerns, or it can open a five-month investigation. Copenhagen-based Maersk may have to pull out from some shipping alliances to gain EU approval, following in the footsteps of rivals, which offered such concessions to regulators in recent deals. Maersk, with a fleet of more than 600 ships, would boost its presence in global trade and in Latin America following the takeover of Hamburg Sud.

Norwegian firms keen on investing in Sri Lanka ports: envoy Economy Next Norwegian companies are interested in investing in Sri Lanka’s shipping and ports sector, the country’s envoy Thorbjorn Gaustadsaether has said. Norway is s small country and lacks the money to make big investments like in China and India, he was quoted as saying in a statement by the ports and shipping ministry. But Norway is world renowned for its maritime industry expertise and experience, Norwegian ambassador Gaustadsaether said. Norwegian companies in the power generation, ‘green technology’ and container shipping and terminal operations sectors are looking at the island as a possible investment destination, he said. Norway has skills in developing natural gas power plants, he added. Sri Lanka is well placed geographically on main trade route between Dubai and Singapore, a location that is attractive for investors, Gaustadsaether said.

K” Line (India) Shipping Pvt. Ltd. Becomes Member of INSA Hellenic Shipping News “K” Line (India) Shipping Private Ltd (KLISP), affiliated company of Kawasaki Kisen Kaisha Ltd., joined Indian National Ship owner’s Association(INSA) at the end of January 2017. KLISP was established in 2014 and actively participates in Indian Coastal Trade as well as International Trade business as an Indian Shipping company. In the same year, KLISP successfully entered into a long-term CVC contract with an Indian Charterer. From December 2016, KLISP acquired ownership of an Indian flag vessel, “GANGA K” (58,000DWT Bulk Carrier) for this contract, and by acquisition of this Indian flag vessel, KLISP was officially entitled to join INSA. By becoming an INSA member, we anticipate this will enable us to become more actively engaged in the Indian Shipping industry as well as become even more deeply rooted in activities of the local market.

DAILY SHIPPING NEWS - MONDAY FEBRUARY 20, 2017

New Custom Exchange Rates applicable w.e.f. Friday 17-02-2017:

                                                                                                                SCHEDULE-I                            

Sl.No.	Foreign Currency	Rate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)		(b)
		(For Imported Goods)	(For Export Goods)
1.	Australian Dollar	52.60	50.80
2.	Bahrain Dinar	184.05	171.75
3.	Canadian Dollar	52.10	50.50
4.	Danish Kroner	9.75	9.40
5.	EURO	72.45	69.95
6.	Hong Kong Dollar	8.75	8.50
7.	Kuwait Dinar	226.90	212.30
8.	New Zealand Dollar	49.35	47.50
9.	Norwegian Kroner	8.20	7.90
10.	Pound Sterling	85.00	82.05
11.	Singapore Dollar	47.95	46.50
12.	South African Rand	5.35	5.00
13.	Saudi Arabian Riyal	18.45	17.30
14.	Swedish Kroner	7.65	7.40
15.	Swiss Franc	67.85	65.70
16.	UAE Dirham	18.85	17.65
17.	US Dollar	67.85	66.15
18.	Chinese Yuan	9.95	9.60
19.	Qatari Riyal	18.95	17.90

                                                                          SCHEDULE-II 

Sl.No.	Foreign Currency	Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
(1)	(2)	(3)
		(a)		(b)
		(For Imported Goods)	(For Export Goods)
1.	Japanese Yen	59.85	57.90
2.	Kenya Shilling	66.90	62.55

          

Air Freight News :

Trump outlines priorities for US aviation.

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Donald Trump. Photo credit: Gage Skidmore

New US president Donald Trump has met with the chief executives of a large number of big US carriers, as well as senior executives of airport authorities and representatives of aviation trade bodies.

The meeting took place at The White House, during which he outlined some of his thoughts on the challenges facing the country’s aviation industry.   In particular he pointed to the need to invest in airport infrastructure and air traffic systems across the country.

“Our airports used to be the best. Now they’re at the bottom of the rung,” he warned.  Trump also took aim at the new air traffic control system, known as NextGen, being developed in the US, which he described as being “totally out of whack. It’s way over budget, it’s way beyond schedule, and when it’s completed, it’s not going to be a good system,” he said.

Trump also said he would be looking at easing regulatory and tax burdens on the industry.

The president also suggested that the funding for infrastructure spending would not come from raising taxes or fees.

One participant suggested that an increase in the passenger-facility charge, which currently stands at $4.50, could be used to fund airport improvements.  “The problem is, I don't like raising fees or taxes − I'll be honest,” Trump said. “I mean, we're spending all this money overseas, we're giving away trillions of dollars to all these countries.  All of the countries that trade with us are ripping us off.  The last thing we have to do is raise the fee.  I understand what you're saying, but $4.50 - it's a lot when you look at all of the passengers.”

The meeting was attended by a broad section of the industry, including Bill Flynn, president and chief executive, Atlas Air Worldwide Holdings; Dave Bronczek, president and chief operating officer, FedEx Corporation; and Myron Gray, president, US operations, UPS.

It was also suggested by one participant that the US Federal Aviation Administration (FAA) needed to be reformed as a not-for-profit corporation with seats on the board given to a range of interested parties.  While the president did not respond directly to this suggestion, he was keen for pilot representation at the top level of the FAA.

In an introduction earlier in the event, Trump was giving little away on his feelings about foreign airlines' access to the US market. “I know you're under pressure from a lot of foreign elements and foreign carriers, I've been hearing that a little bit.  At the same time, we want to make life good for them also.  They come with big investments − in many cases, those investments are made by their governments.  But they are still big investments.”

This comes as the row over Middle Eastern airlines access to the US market looks to be re-emerging. At the start of this month (February), a number of US legacy passenger airlines resurrected their complaints to the US Government that they are suffering as a result of Middle Eastern carriers being unfairly subsidised by their state authorities. Others, including Atlas and FedEx, have asked for the current status quo to be maintained.

It's all looking rose-y for air cargo.

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Benjamin Franklin said that there are two things that are certain in life, death and taxes. If, however, Franklin had been a freight transport journalist he could have added a third to that list, that mid-February would see an outpouring of press releases about the transport of roses for Valentine's today.

So far there have been releases from express firm UPS, Heathrow Airport, Emirates SkyCargo, IAG Cargo, LATAM and American Airlines and there is still time for more.

The releases do actually contain some interesting facts, for instance, UPS reckons it will deliver a whopping 89m flowers, enough to fill 64 Boeing 767s, for this year's Valentine's day.

According to the National Retail Federation, U.S. consumers are projected to spend $2bn on flowers and more than $18bn on Valentine’s Day gifts, it adds.

Many of the tropical flowers and roses originate in Latin America, primarily Colombia and Ecuador. More than 90% of the imported flowers will travel through Miami International Airport (MIA), where UPS is the largest air cargo carrier.

HACTL handles valuable equine shipment.

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Hong Kong Air Cargo Terminals Ltd (Hactl) has handled 60 horses competing in this month’s Longines Masters show jumping event in Hong Kong.

All the horses were processed through the handler’s Livestock Handling Centre at Hong Kong International Airport (HKIA).

European Horse Services (EHS) is responsible for the shipment of the horses from Liege to Hong Kong, and will be likewise for their return journey after the event.

The equine cargo is flying on board an Etihad Airways aircraft.

It is the fifth year that the Longines Masters has come to Hong Kong for one of its constituent events, and Hactl has handled horses flying into Hong Kong each year since 2013.

This year’s Longines Masters in Hong Kong is the culmination of an intercontinental series of show jumping events that began in Los Angeles in September and moved to Paris in December; it is taking place at Hong Kong’s AsiaWorld-Expo complex between 10 and 12 February.

LUG to handle Etihad Cargo in Frankfurt and Munich.

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LUG aircargo handling, a freight handler operating at Germany’s Frankfurt and Munich airports, has begun processing Abu Dhabi-based Etihad Cargo’s freight at Munich Airport.

It will also begin handling Etihad Cargo’s freight at Frankfurt Airport from next month (March). 

Etihad flies passenger aircraft twice a day to both German airports, but it also operates full-freighter Airbus 330-200F and Boeing 777-200F aircraft to Frankfurt twice a week.

The agreement with Etihad, LUG’s first Middle Eastern carrier customer, covers the complete range of cargo handling services, including full-freighter, belly cargo and road feeder services, for Etihad as well as for its airline partners such as airberlin.

Patrik Tschirch, LUG aircargo handling’s managing director and chief executive, commented: “Key success factors for our co-operation will be a strong customer focus as well as our innovative and consistently efficient operational processes.

“We expect a freight throughput of some 50,000 tonnes per year. This gives the company a strong push,” he added.

LUG aircargo handling is a member of the Dettmer Group. It handled over 300,000 tons of cargo in 2016.

It operates from 33,000 sq m covered warehousing space with direct ramp access for all types of cargo, including dangerous goods, at Frankfurt Airport, and from some 3,300 sq m at Munich Airport.

Sea Freight News :

Data is the Future, Says CEO of Shipping Giant Bahri India Tradeways The National Shipping Company of Saudi Arabia, or Bahri, the world’s second largest owner/operator of very large crude carriers or oil super tankers, is betting big on data to innovate and realize deep data science driven insights to help support smarter decision making, bring cost and operating efficiencies and create sustainable share-holder value. Bahri Data, one of the six business units within Bahri and started in early 2015, is expanding it’s data team by hiring more data scientists, considered “very rare for a shipping company”, says Ibrahim Al-Omar, the chief executive officer of Bahri. “What we are doing on the data side is we are hiring ex Yahoo team. We are also hiring from the Indian market and they will be based in our office in Mumbai. Bahri data will be more about how can I monetise my data and get value out of our data,” Ibrahim said.

Tax Department To Start Consultation On Changes In Customs Act NDTV The tax department has asked officials to start an outreach programme with stakeholders and make systemic changes to implement proposed modifications in the Customs Act aimed at de-cluttering ports and enhancing revenue. The Finance Bill 2017 proposes to modify the Customs Act for filing of bill of entry the same day on which the vessel, aircraft or vehicle carrying the goods arrives at a customs station. Changes have also been proposed relating to the payment of duty and interest. In a communication to chief commissioners of Customs and Central Excise, CBEC Member and Special Secretary Ananya Ray said the proposals are of far reaching impact and would take the force of law upon the enactment of the Finance Bill. Tax experts said the earlier practice of importers to file bill of entry as per their convenience was causing administrative issues at customs stations.

India scraps service tax on ocean freight Kathmandu Post Following Nepal government’s request, the Indian government has removed 4.5 service tax imposed on ocean freight. Although the tax was meant for India’s importers, the provision also affected Nepali traders as Nepal relies on Indian clearing agents for the management of goods imported from third countries that land at Indian ports. “We have received information that the Indian government has decided not to levy the tax in the case of Nepal,” said Eknarayan Aryal, Consul General in Kolkata, adding the decision comes into effect immediately. Article 11 of the World Trade Organisation’s Trade Facilitation Agreement states: “Traffic in transit shall not be conditioned upon the collection of any fees or charges imposed in respect of transit, except the charges of transportation or those commensurate with administrative expenses entailed by transit or with the cost of services rendered.”

Thar Dry Port handles first car train Maritime Gateway Hasti Petrochemical & Shipping Limited, Unit The Thar Dry Port Sanand handled the first full car train from APL VASCOR on its newly commissioned Private Freight Terminal on 30th December, 2016. In all 180 cars were unloaded from the railway’s NMG rake within the permitted time and the same were stacked inside the ICD at a predetermined location from where the cars were also successfully loaded into trailers for local dispatch. “We are now entering into a long term contract for a period of four years with APL VASCOR for handling of car trains at our PFT and also providing space for stacking and dispatch of the cars from ICD Sanand” highlighted a release. Allotment of PPQ station code for ICD Sanand.ICD Sanand has recently granted station code no “C”(PPQS) 1(53) for Plant Quarantine Station vide notification no 8-217-/2004-PPI(PT) Dated 12th January, 2017.

First cargo ship from India arrives in B'desh PTI The first container ship from India has arrived in Bangladesh's Panagon river port here under the Coastal Shipping Agreement signed in 2015, allowing direct cargo vessel movement between the two countries. The ship, 'Shonartori Nou Kalyan-1' reached the Pangaon Inland Container Terminal at Keraniganj yesterday with 65 containers on board, bdnews24.com reported. At an event to mark the arrival of the ship, Bangladesh Commerce Minister Tofail Ahmed said that cargo ships will now reach and depart from Pangaon to India every 15 days. With this, the Coastal Shipping Agreement signed in 2015, comes into effect, paving way for direct cargo vessel movement between the two neighbouring countries. The link between the Pangaon terminal and India will save time and money, said Minister Khan. "The shipping ministry is in the process to procure 36 more ships to boost the use of this network," he said.

Expert says bunker prices may continue mixed trends next week Hellenic Shipping News World fuel indexes continued irregular fluctuations this week while market focused on two main drivers: OPEC’s supply-cut deal and rebound in U.S. drilling activity. The IEA increased its 2016 estimates for world oil demand growth for a third month, and boosted its outlook for 2017, anticipating an increase of 1.4 million barrels a day this year. It also predicts that world oil inventories will fall by 600,000 barrels a day during the first half of the year if OPEC sticks to its agreement. While stockpiles in industrialized nations have declined for five months in a row, they still remain significantly above average levels. OPEC cut its crude oil production by 890,000 bpd from December to average 32.14 million bpd in January. Production in January decreased the most in Saudi Arabia, Iraq and the UAE, while production in Nigeria, Libya and Iran increased.

HMM’s Direct Weekly ACS Service Flagged Off From Krishnapatnam Port Maritime Professional A direct weekly service of HMM’s (Hyundai Merchant Marine) ACS Service was flagged off, amid lot of fanfare, from Krishnapatnam Port Container Terminal on the February 17, 2017. Inauguration of the maiden vessel call by “M.V. HYUNDAI PRESTIGE”, as part of ACS’s Service, has written a new chapter in the EXIM trade from East Coast of India. The KPCT team conducted a formal inaugural ceremony commemorating the maiden call with Mr. Y.D Park (MD, Hyundai Merchant Marine India) & Mr. Anil Yendluri (CEO, Krishnapatnam Port) launching the service from KPCT. Mr. Jithendra Nimmagadda (COO, KPCT) welcomed the vessel by presenting a memento to the vessel Captain Musteata Loan. Sales, Operations and Customer service teams of Hyundai Merchant Marine and their agents Choice Group along with KPCT team were part of this memorable inaugural event.

London P&I Club loses Cosco's business following merger with China Shipping Sea News Other clubs are also likely to be caught out by the development, as the owner hitherto split its huge fleet among a number of providers, reported UK's Lloyd's List. In practice, each unit within the group can place its P&I as it sees fit. Many of its mainland-based subsidiaries are thought to use China P&I, for instance. China Cosco Shipping Group (CCSG) chief executive Xu Lirong presides over a shipping empire with assets valued at US$90 billion. In total, CCSG comprises 1,114 vessels with a capacity of 85.3 million dwt, making it the world's number one ship owner. Its containership fleet capacity is 1.58 million TEU, ranking it fourth in the world, and that figure tops two million TEU, if its order book is included. London Club chief executive Ian Gooch told Lloyd's List: "As a result of the consolidation, it looks as if they are making alternative arrangements.

Singapore Bunker Trader Opportunity with Major Oil Business Ship&Bunker A major international business in the oil & gas market and a leading physical supplier of bunker fuel in Singapore and other ports are looking to hire a Bunker Trader to join their Singapore team. In this position you will be responsible for the sale of bunker fuel in Singapore. This will be mainly selling ex-wharf to trading houses as well as end users. As our Client is an established business you will be handling some existing accounts and you will also be expected to use your network and business development skills to bring in new customers. The ideal person for this position will have around 2 to 6 years experience as a Bunker Trader in the Singapore market. Our client can offer an attractive salary as well as significant annual performance bonus. They can provide a stable and secure work environment as well as excellent career development potential for the right person.

Infographic: Will 2M Defeat Largest Alliance? Port Technology The 2M Alliance, led by Maersk Line and Mediterranean Shipping Company (MSC), offers shared vessels over 44 regular routes between Europe, Asia and the US east and west coasts. But will it take this year's top TEU spot when the Ocean Alliance, the largest in history, launches in April 2017? PTI's audience thinks so. PTI reported its initial poll results with an Ocean Alliance infographic on February 3, 2017, and found that 48.4% of participants believed the 2M Alliance would be crowned the strongest by the end of the year with THE Alliance coming second with 27.4% of the vote. This was despite the Ocean Alliance being led by CMA-CGM and made up of China Cosco Shipping, Evergreen Line, and Orient Overseas Container Line, offering 40 services on the east-west trades with 498 port calls. And, almost two weeks later (February 16, 2017), 2M has kept its place with 44.7% believing it will still be the TEU leader by the end of 2017.