global port

Global container port demand rising

Drewry’s latest five-year global container port demand forecast is 4.3% per annum, up from last year.

The maritime consultancy made the announcement in its summary of the key trends and developments in the global container port and terminal industry.

Projected port capacity expansion is 2.7% per annum, so average utilisation levels will rise, said Drewry.

Neil Davidson, senior analyst ports and terminals at Drewry, pointed out, however, that there is a strong focus on optimisation of existing facilities as opposed to building new ones and that terminal operators are focusing on cost control and efficiency to maintain project margins.

Drewry’s latest assessment of port throughput indices showed that the global index fell in September 2017 but was 10 points up on September 2016 and 12 points up on 2015.

Mr Davidson said that the growth rate in 2017 showed a sustained upward trend.

North America and Latin America showed the highest annual increases, 12.6 and 11.1 respectively, while Europe had the lowest increase at 4.4%.

The top five global terminal operators were calculated as being PSA International, Hutchinson Ports, DP World, APM Terminals and China Cosco Shipping.

According to BIMCO, the worlds largest international shipping association, container shipping has shown strong growth forecasts supported by equal demand so far this year, 

Source: Port Strategy / Port Technology

emissions

Shipping emissions to be halved by 2050

Following on from our earlier article concerning shipping emissions, over 170 countries reached agreement on Friday (13 April) to reduce CO2 emissions from shipping by “at least” 50% on 2008 levels by 2050, ending years of slow progress.

Despite opposition from nations including Brazil, Saudi Arabia and the US, the states came to a final agreement on Friday, signalling to industry that a switch away from fossil fuels is fast approaching.

Ultimately the goal is for shipping’s greenhouse gas emission to be reduced to zero by the middle of the century, with most newly built ships running without fossil fuels by the 2030s.

Kitack Lim, Secretary-General of the International Maritime Organisation (IMO), said the adoption of the initial strategy “would allow future IMO work on climate change to be rooted in a solid basis”.

The compromise plan to halve shipping emissions by 2050 leaves the door open to deeper cuts in the future, placing a strong emphasis on scaling up action to 100% by mid-century.

“Meeting this target means that in the 2030s most newly built ocean-going vessels will run on zero carbon renewable fuels. Ships, which transport over 80% of global trade, will become free from fossil fuels by then,” the European Climate Foundation said in a statement.

European Union countries, along with the Marshall Islands, the world’s second-biggest ship registry, had supported a goal of cutting emissions by 70 to 100% by 2050, compared with 2008 levels.

But opposition from some countries – including the United States, Saudi Arabia, Brazil and Panama – limited what could be achieved at the IMO session last week in London.

In Brussels, the European Commission hailed the deal as “a significant step forward” in the global effort to tackle climate change.

“The shipping sector must contribute its fair share to the goals of the Paris Agreement,” said EU Transport Commissioner Violeta Bulc and her colleague in charge of Energy and Climate Action, Miguel Arias Cañete.

While the EU had sought a higher level of ambition, the Commission said the deal was “a good starting point that will allow for further review and improvements over time”.

Shipping currently represents 2-3% of global CO2 emissions and could reach 10% by 2050 if no action is taken, the Commission reminded.

Dr Tristan Smith, an energy and shipping reader at the UCL Energy Institute, said that the 2050 target is likely to be tightened even further in the future.

“Even with the lowest level of ambition, the shipping industry will require rapid technological changes to produce zero-emission ships, moving from fossil fuels, to a combination of electricity (batteries), renewable fuels derived from hydrogen, and potentially bioenergy,” he said.

While he admitted that such changes are “massive” for a global industry with over 50,000 ships trading internationally, Smith said these reductions can be achieved “with the correct level of investment and better regulation”.

“What happens next is crucial,” said John Maggs, president of the Clean Shipping Coalition and senior policy advisor at Seas At Risk, an umbrella organisation of environmental NGOs.

“The IMO must move swiftly to introduce measures that will cut emissions deeply and quickly in the short-term. Without these the goals of the Paris agreement will remain out of reach,” he warned.

According to the text produced by the IMO working group submitted to member states, the initial strategy would not be legally binding for member states.

A final IMO plan is not expected until 2023.

Source: Edie.net / Independent 

One Manato

ONE’s very first container ship, ONE Manato has launched in Japan

The first magenta containership of the Japanese merged containership business, Ocean Network Express (ONE), has been launched at Imabari Shipbuilding in Japan.

The 14,000 TEU ship is named ONE Manato and will now undergo final touches before it gets delivered in December 2018, data from VesselsValue shows.

It is the first tailor-made boxship for the company, featuring the magenta livery and ONE logo on its hull, as the current fleet is comprised of a combination of container vessels that have been serving the Japanese trio respectively.

ONE, a joint venture between Japanese carriers K Line, MOL and NYK, worth USD 3 billion, launched its container shipping business on April 1.

The JV has been described as the world’s sixth-largest container shipping line with 230 vessels in its fleet totalling 1.44 million TEUs.

The network includes a total of 85 services, calling at over 200 ports in 100 countries.

Source: World Maritime News

emissions

Can shipping slash emissions?

Next week, countries are supposed to finalise a deal on limiting greenhouse gas (GHG) emissions from international shipping.

The International Maritime Organisation (IMO) environment meeting in London is expected to set a concrete target for shipping emissions in the coming decades. After the Paris Agreement and a deal on emissions from International Aviation, shipping is the last sector to contribute to global climate action.

A climate shipping deal has been long in the making. The IMO first adopted a resolution on GHG emissions in 1997.  However talks have stalled. There are several issues to overcome. There is concern that the impacts of any deal will fall disproportionately on flag states with many ships registered. Just six flag states – Panama, China, Liberia, the Marshall Islands, Singapore and Malta – account for over half of global shipping CO2 emissions.

However, there is concern that there is not yet enough data on ship emissions to consider setting a global target, or that shipping does not have the technical means to decarbonise.

the IMO adopted two technical measures on energy efficiency in 2011 and will require ships to report on their fuel consumption from 2019, no overall cap or reduction on shipping emissions has been set.

EU member states, including the UK, have supported a “70-100%” reduction on 2008 emissions by 2050, and a 90% reductions in the carbon intensity of shipping.

Japan has proposed that emissions be cut to 50% below 2008 levels by 2060, along with a 40% improvement in ships’ fuel efficiency by 2030. Japan also includes the idea of “amendments” to the goal, pending an IMO review of its achievability at a later date.

The International Chamber of Shipping (ICS) and other trade groups have proposed simply capping shipping emissions at 2008 levels, along with a 50% efficiency improvement by 2050. A group of low-ambition countries, including Argentina, Brazil, China and Turkey, argue against any absolute emissions cap, saying it could result in carbon leakage to other transport modes such as rail and air.

The shipping industry emitted 932 million tonnes of CO2 in 2015, according to a recent report from the International Council on Clean Transportation (ICCT). This corresponded to around 2.6% of global energy-related CO2 emissions, up from around 2.2% in 2012.

The IMO’s most recent study on international shipping emissions estimated they could grow between 50% and 250% by 2050, under current measures. As other sectors are set to decarbonise, this means shipping could grow to represent an ever larger portion of global emissions if not cap is set.

According to Green Peace, Ships carry over 80% of world trade, using vessels that operate on marine fuels which are cheaper but dirtier than road transport diesel fuels.

If the shipping sector were a country, it would rank sixth in the list of carbon emitters, just above Germany. The sector’s emissions have been growing three times faster than global emissions and if left unchecked emissions could grow by 50-250% by 2050.

Source: Carbon Brief / Green Peace 

karachi collision

An investigation has been launched into the collision of 2 container ships at Karachi port

The Karachi Port Trust (KPT) has ordered investigations into the collision between two container ships that took place at the Karachi port this week.

The incident occurred on Monday at a private terminal – South Asia Pakistan Terminals – affiliated to Karachi Port when a cargo ship during berthing slightly hit an anchored cargo ship.

The collision was captured on film by a dock worker, and video showed a Hapag-Lloyd ship, the Tolten, clipping a stationary ship while pulling into port in the Pakistan capital.

The Tolten was reportedly carrying  8,000-containers when it collided with the anchored cargo ship carrying 6,350 containers.

The footage showed containers bobbing around the harbour, while another sank. Over 20 containers fell into the sea after the collision causing loss of millions of rupees.

After the incident, transportation of containers was suspended for a few hours, before being restored at night.

A special operation to pull out the fallen containers from the sea was underway with the help of Pakistan Navy. Sources said that the operation would take at least two to three days to be completed.

According to a statement from Port Technology,  Hapag-Lloyd said they regretted the incident and would investigate how it happened.

“We have ascertained on-site that no-one was injured as a result of the incident, and that there has been absolutely no environmental pollution,” the statement said.

“There is yet to be a definitive explanation for this incident.”

To watch the video please go here

*Source: The News/ ABC /

canton fair

We are attending the Canton Fair

Supreme Freight Services LTD are excited to announce that we will be attending this years Canton Fair. (Also known as the China Import and Export Fair).

Canton Fair is a comprehensive international trading event with the longest history, the largest scale, the most complete exhibit variety, the largest buyer attendance, the broadest distribution of buyers’ source country, the greatest business turnover and the best credibility in China. It is renowned as “China’s No.1 Fair”.

It was established in 1957 and is held every spring and autumn.  It boasts an exhibition area of 1.18 million m² per session, with 150,000 exhibit varieties in 16 industries, and the number of exhibitors from home and abroad stands at nearly 25,000.

In each session, about 200,000 buyers attend the Fair from more than 210 countries and regions all over the world.

The Canton Fair Schedule is as follows:

Phase 1 (April 15-19, October 15-19):
Electronics, lighting equipment, vehicles & spare parts, machinery, hardware & tools, construction materials, chemical products, energy resources, and international pavilion

Phase 2 (April 23-27, October 23-27):
Consumer goods, gifts, and home decorations

Phase 3 (May 1-5, October 31-November 4):
Textiles and garments, shoes, office supplies, cases and bags, recreation products, food , health products and medical devices.

The fair is held at:

382 Yuejiang Zhong Road, Guangzhou, China

Clients can meet with our team face to face discuss their shipping requirements.  We can also offer help and advice and information for travel, accommodation & a local complimentary taxi service. We look forward to meeting as many of our existing clients as possible as well as any potential new clients. Please come and find us at the fair, and contact us if you need any help or information beforehand.

For more information please visit the Canton Fair website:

http://www.cantonfair.org.cn/en/index.aspx

maersk

Fire on the Maersk Honam contained

On Tuesday 6 March 2018 at 15:20 GMT, the Maersk liner vessel Maersk Honam reported a serious fire in a cargo hold. 

Enroute from Singapore towards Suez, the vessel was positioned around 900 nautical miles southeast of Salalah, Oman.

After being unsuccessful in their firefighting efforts, the crew sent out a distress signal and a total of 23 crew members were safely evacuated to the nearby vessel ALS Ceres, which arrived at the scene around 18:30 GMT.

Regrettably, four crew members were missing.

Søren Toft, Chief Operating Officer and Member of the Executive Board, A.P. Moller – Maersk said:

“We’ve received the news of Maersk Honam and the four missing crew members with the deepest regret and are now doing our outmost to continue the ongoing search and rescue operations. This by rerouting our own vessels, with assistance of vessels in the area – most notably ALS Ceres that thankfully acted promptly upon our distress call – and the local authorities,”

The container vessels MSC Lauren, Edith Mærsk and Gerd Mærsk, all enroute in the Arabian Sea, diverted their routes and were expected to arrive in the early morning of Wednesday 7 March local time.

Maersk Line informed the relatives of all crew members and acknowledged that this is a very difficult time for them.

“The evacuated crew is obviously distressed, with two crew members currently receiving medical first aid onboard the ALS Ceres. We will offer crisis counselling for the seafarers signing-off and returning to their families and our thoughts and deepest empathy go out to the families of the crew members that are still unaccounted for. We will offer them all the support we can in this very difficult situation,” says Søren Toft.

The fire was brought under control over the weekend according to the Indian Coast Guard (ICG) some five days after the fatal blaze broke out.

“A thick plume of toxic fumes have now been replaced by white smoke which is a sign of cooling down of metal fire onboard the mega containership,” ICG western region deputy commandant Avinandan Mitra, was quoted as saying.

While the fire is reported to have been brought under control fully extinguishing container fires can be a lengthy process due to the extremely high temperatures generated inside the boxes, with a danger that fire may erupt again.

The ICG has classified the blaze as a “chemical fire”. This raises questions of dangerous cargoes being carried on containerships.

Three out of the four missing crewmen have been confirmed to have perished in the fire and the search for the final unaccounted for member has now been called off.  One other had already been confirmed dead.

Chief Operating Officer, Søren Toft this morning said that ‘Given the time passed and the severe fire damages of the vessel we must conclude by now that we have lost all four colleagues who have been missing since the fire onboard Maersk Honam which began on 6 March. All four families of our deceased colleagues have been informed”.

“Our most heartfelt condolences go out to families of our deceased colleagues. We share their sorrow and do our outmost to support them in this devastating time,” says Chief Operating Officer, Søren Toft.

A thorough search on board the Maersk Honam continues. However, the active search and rescue mission at sea will be brought to a halt. The search and rescue operation began immediately after Maersk Honam had sent out a distress signal on 6 March due to a serious fire aboard. Several container vessels diverted their route to assist in the search and rescue operation”.

22 crew managed to escape the burning ship, although two are reported to be in a critical condition.

The nationalities of the 27 crew members are: India (13), the Phillipines (9), Romania (1), South Africa (1), Thailand (2) and the United Kingdom (1).

The vessel was carrying 7860 containers. Maersk Line have vowed to investigate the matter thoroughly in cooperation with all relevant authorities.

Maersk Honam was built in 2017, has a nominal capacity of 15262 TEU (twenty-foot equivalent unit), and sails under Singapore flag.

Source: Seatrade Maritime News / Maerskline.com

Heathrow Cargo

Air Cargo figures start the year strong according to IATA

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 8.0% in January 2018 compared to the year-earlier period. This was up from the 5.8% annual growth recorded in December 2017. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.2% year-on-year in January 2018.

The continued positive momentum in freight growth into 2018 reflects the fact that demand drivers for air cargo remain supportive. Global demand for manufacturing exports is buoyant and meeting this strong demand is leading to longer supply chain delivery times. Demand for air cargo may strengthen as a result, with companies seeking faster delivery times to make up for longer production times.

“With 8% growth in January, it’s been a solid start to 2018 for air cargo. That follows an exceptional year in which demand grew by 9%. We expect demand for air cargo to taper to a more normal 4.5% growth rate for 2018. But there are potential headwinds. If President Trump follows through on his promise to impose sanctions on aluminium and steel imports, there is a very real risk of a trade war. Nobody wins when protectionist measures escalate,” said Alexandre de Juniac, IATA’s Director General and CEO.

All regions reported an increase in demand in January 2018.

Asia-Pacific airlines saw demand in freight volumes grow 7.7% in January 2018 and capacity increase by 2.2%, compared to the same period in 2017. The increase largely reflects the ongoing strong demand experienced by the region’s major exporters, China and Japan which has been driven in part by a pick-up in economic activity in Europe. However, the upward-trend in seasonally-adjusted volumes has paused.

North American airlines’ freight volumes expanded 7.5% in January 2018 year-on-year, as capacity increased 4.2%. The strength of the US economy and the US dollar have improved the inbound freight market in recent years. However, this may be offset by the weakening in the dollar although the recently-agreed US tax reform bill may help to support freight volumes in the period ahead. Seasonally-adjusted volumes are broadly trending sideways.

European airlines posted a 10.5% increase in freight volumes in January 2018. Capacity increased 5.3%. The strong European performance corresponds with a very healthy demand for new export orders among the region’s manufacturers. Seasonally-adjusted volumes jumped 3% in month-on-month terms in January – the largest increase since March 2017.

Middle Eastern carriers’ freight volumes increased 4.4% year-on-year in January 2018, the slowest growth of all regions. Capacity increased 6.3%. Seasonally adjusted freight volumes continued to trend upwards during the first month of the year, however, the region’s carriers remain affected by the ongoing challenging political environment in the Middle East.

Latin American airlines experienced a growth in demand of 8.0% in January. Capacity increased 5.4%. The pick-up in demand comes alongside signs of economic recovery in the region’s largest economy, Brazil. Seasonally-adjusted international freight volumes are now back to the levels seen at the end of 2014.

African carriers’ saw freight demand increase by 12.9% in January 2018 compared to the same month last year. The increase was helped by very strong growth on the trade lanes to and from Asia. Freight demand jumped by 59% between Africa and Asia in 2017 following an increase in the number of direct flights between the continents, driven by ongoing foreign investment flows into Africa.

Source: IATA

Beast from the East

•••WEATHER AND PORT INFORMATION•••

At present Felixstowe is closed due to high winds and not expected to re-open until Sunday at the earliest. London Gateway is greatly reduced in its capacity and is opening as and when it can depending on the weather.  The port of Southampton is closed due to snow.

The inclement weather will hopefully start to improve over the next few days however it could take longer for all services to return to normal and backlogs cleared.

Managing Director Chris Green would like to thank all the staff that battled to get to the office today in Southampton.

Despite Hampshire enduring the worst snow storms for decades, most roads inaccessible and public transport critically disrupted, our fantastic staff, many leaving home before 6am on foot, have ensured our office is fully operational to offer uninterrupted service to our clients.

My staff are vitally important to our successful company and they have demonstrated today how resourceful they all are and I want to express my sincere gratitude for their endeavours this morning.

We will keep you fully updated and will be working tirelessly to make sure that we are working to full capacity at all of our ports.

Thank you for using Supreme Freight and if you have any concerns or questions please contact us directly.

Many thanks Chris and all at Supreme Freight

Lufthansa cargo

Lufthansa cargo will fine customers for not using an e-air waybill

To boost electronic air waybill (eAWB) adoption the carrier has decided to introduce a 12 euro per paper air waybill fee for tradelines on which they are available. 

E-AWB penetration edged up 0.6 percentage points to 53.2% in January 2018, according to the latest statistics from IATA.

January’s figure compares with 52.6% in December 2017. IATA’s target e-AWB penetration figure is 68.0% by December 2018.

A spokesperson for Lufthansa Cargo said: “With the introduction of the digital air waybill, Lufthansa Cargo has already set the course for the digitalisation of the logistics industry.

“As of April 2, 2018, the airline will introduce a fee to pass on the costs incurred in processing paper-based bills of lading. The Paper AWB Fee is charged for each consignment for which no e-AWB exists. In an introductory phase until 1 October 2018, only a reduced amount will be charged.”

The spokesperson added: “E-AWBs are already well received by many Lufthansa Cargo customers and partners – they simplify document handling, reduce the error rate in data transmission and make processes more effective.

This development is to be further promoted.

“Since 2013, Lufthansa Cargo has been offering the possibility to digitise central airfreight documents and thus switch to e-AWBs, a decision that allows companies to save up to 50% of their document processing time and thus significantly reduces costs.

“In order to ensure smooth implementation, the freight carrier supports the switch to the digital consignment note.”

A spokesperson for the carrier told The Loadstar this programme would initially run until 1 October, at which point the fee could rise.

“With the introduction of the digital air waybill, Lufthansa Cargo has already set the course for the digitalisation of the logistics industry,” said the spokesperson.

Responding to the news, head of Evofenedex, the Dutch Shippers’ Council, Rogier Spoel told The Loadstar it was the right idea – but the wrong approach.

“We’re in favour of a greater push for eAWBs, but this only works if you stimulate parties to use them, not punish those that use paper,” said Mr Spoel.

“This could be achieved with lower rates or other incentives: offer shippers free track and trace on the eAWB, and that will push forwarders to adopt eAWB.”

Mr Spoel was not alone in his stance, with several forwarders echoing his comments, with supply chain business development director at MIQ Logistics, Matt Fullard noting that “many” airlines and airports are yet to participate in eAWB roll-out. And he questioned Lufthansa’s justification in imposing fees as a result.

“Arbitrary charges are never welcomed by MIQ Logistics, or the forwarding community who will always try to protect their customers,” added Mr Fullard.

“The danger for Lufthansa is that those affected by the imposition of this fee will simply select alternative carriers.”

Unsworth Global’s Mario Gomez said there are still many forwarders and shippers that are are unaware of eAWB and its advantages.

“There is still a lot of progress to be made in raising awareness of the eAWB initiative and the airline’s do have a big role in achieving that, but is levying a charge really the best way to achieve this?” asked Mr Gomez

“We believe that eAWB and paperless transactions is the right move for the industry, but instead of a charge for those that still use paper AWB, a reward system could be devised for the forwarders and shippers that implement the eAWB.”

Air freight director at Norman Global Gary Dean acknowledged that he shares Lufthansa’s frustration with the slow pace of eAWB adoption, but we did not support the imposition of this fee.

“Particularly when the primary benefit is on the carrier’s side rather than the forwarder, who has to invest in costly software changes in order to participate,” said Mr Dean.

“Additional charges are always received negatively, rather than levying a surcharge for not adopting eAWB, we would prefer to see a discount, or other reward, for adopting eAWB.”

The carrier did not respond to questions on whether subsidiary carriers Brussels and Swiss World Cargo would also be implementing the fee. However, the spokesperson did say eAWBs were “already well received” by many of its customers and partners as they “simplify” handling and reduce errors.

“It’s a decision that allows companies to save up to 50% of document processing time, and thus significantly reduces costs,” continued the spokesperson. “In order to ensure smooth implementation, the freight carrier supports the switch to the digital consignment.”

Source: The Loadstar /Air Cargo News