Container Shipping Struggles with Overcapacity: McKinsey
The container shipping industry is expected to continue to struggle with overcapacity and an inability to deliver value to shareholders, warns consultancy McKinsey & Company in its latest report. As container lines search for successful paths forward, they need to first determine what their strategy and potential role in the continuing industry consolidation will be. While mergers will continue, they do not need to be feared, just managed—and the guidelines in this report provide a starting point.
Mundra Port, Port of Montreal Sign Cooperative Agreement
On a trade mission to India, the Montreal Port Authority (MPA) has signed a Cooperative Agreement with Mundra Port, Gujarat State, north of Mumbai. This agreement aims to develop cooperation in marketing and business development while sharing information on marine operations and industry best practices. Mundra Port is India’s largest commercial port. A diversified port, it handles liquid and dry bulk and more than three million TEUs in annual container traffic. It is operated by Adani Ports and Special Economic Zone Limited (APSEZ).
Several Car Shippers Face Fines for Rigging Bids
EU antitrust regulators are set to fine Nippon Yusen KK (NYK) and several other Japanese shippers as well as Norwegian Wallenius Wilhelmsen Logistics ASA (WWL) in the coming weeks for rigging bids for shipping cars, according to people with knowledge of the matter. The EU sanctions follow a near six-year investigation which started with dawn raids by the European Commission in September 2012 in coordination with Japanese and U.S. antitrust authorities. Competition regulators around…
Indian PM Narendra Modi Lays Foundation Stone For JNPT Fourth Countainer Terminal
India's biggest container traffic handler Jawaharlal Nehru Port (JNPT) has achieved yet another milestone in its ambitious journey to become a world class maritime hub when the Prime Minister Narendra Modi laid the foundation stone for the fourth container terminal, proposed to be developed at an estimated cost of Rs. 7915 Crores (USD 1.23 bln) on DBFOT basis. Modi arrived at the JNPT Helipad- accompanied by the Maharashtra Governor Ch. Vidyasagar Rao, Union Minister of Shipping, Road Transport & Highways Nitin Gadkari, the state Chief Minister Devendra Fadanvis and other dignitaries.
Evergreen Charters Twelve 11,000 TEU Newbuilds
Evergreen Marine Corp. (EMC) entered into an agreement with Shoei Kisen Kaisha to charter twelve 11,000 TEU class containerships. The charter parties were signed by EMC Chairman Anchor Chang and President of Shoei Kisen Kaisha Yukito Higaki. The plans to charter these vessels were approved early last month at the board meetings of Greencompass Marine S.A. and Evergreen Marine (Hong Kong) Ltd. respectively. The two subsidiaries of EMC will each charter six vessels. All twelve ships…
Georgia Ports Authority Orders 8 RMG Cranes
The Georgia Ports Authority (GPA) in the USA has embarked upon the Mason Mega Rail Project that will double the Port of Savannah’s on-dock rail lift capacity to 1 million containers per year. As part of the project, the GPA has ordered 8 Konecranes Boxporter RMG cranes for the expanded intermodal container handling. Delivery will occur in two parts, one in the second half of 2019 and one in the second half of 2020. Work on the GPA’s Mason Mega Rail Terminal project in Savannah is scheduled to be completed by the end of 2020.
Maersk Cuts Growth Forecast
Though the Danish conglomerate AP Møller-Maersk posted higher-than-expected earnings, it has cut its forecast for global trade growth and abandoned several medium-term profit forecasts, as per a report in FT. Maersk overcame low oil prices and freight rates in its container shipping business to post a 7 per cent fall in underlying net profit in the second quarter at $1.1bn, which was well ahead of analysts’ expectations of $820m. The world’s biggest container-shipping operator by capacity adapts to persistently low crude prices and stiff competition in the cargo market.
New BoxTech Container Database Upgraded
BoxTech, the database of technical details for containers, has introduced a number of new functions which will help shippers save time, and enable equipment owners to register container sales and flag units with exception alerts. Two of top three global carriers are already using the new features. The fast-growing database, which is provided by the Bureau International des Containers (BIC) and already includes the technical characteristics of more than 30 per cent of the global container fleet, is continually evolving to meet the needs of the shipping industry.
Rotterdam Port Hits Record Freight in 2017
The port of Rotterdam, Europe’s largest, continued to grow in 2017 spurred by a significant gain in container throughput, which increased by 1.3% to 476 (461) million tonnes with the port returning to the growth trend seen before 2016. Particularly strong growth in container throughput of 12.3% (in tonnes) was the main driver of growth in the port of Rotterdam throughout 2017. Total cargo throughput rose by 1.3%, with the port returning to the growth trend seen before 2016. The increase in containers was offset by a fall in dry bulk of 2.6% and in wet bulk of 4.1%.
Cargo Security Goes High Tech
Cargo security goes high tech in its quest to account for cargo damage. Two different firms bring the same goals to the supply chain. The need for vessel and cargo tracking has always been necessary. But, the methods and equipment to accomplish those tasks haven’t always been available. Before the mid-1990’s, for example, without AIS transmitters, a vessel that missed its ‘LayCan’ at a particular port by just a few hours could credibly misrepresent its position at sea, absent any corroborating evidence by its prospective charterers. And, there usually wasn’t any.
Container Shippers Raided in S.Africa over Suspected Collusion
Six of the world's biggest container shipping companies were raided by South African authorities on Wednesday on suspicion of colluding to inflate rates between Asia and South Africa, the country's Competition Commission said. The development comes as global container lines struggle in the worst-ever market conditions, caused by a glut of ships and slowing global trade, which has battered earnings and forced at least one out of business. The six companies raided comprise local subsidiaries of Denmark's Maersk…
GTT Bags Order for Three LNG Carriers, One Bunkering Vessel
GTT announces it has received several orders, since the beginning of the year, for the equipment of three LNG Carriers (LNGCs) and one bunkering vessel. The three LNGCs, offering capacities ranging from 174,000 to 180,000 m3, will be built at Samsung Heavy Industries (SHI) and Hyundai Samho Heavy Industries (HSHI)’s. They will be fitted with the membrane containment system Mark III Flex. Their deliveries are expected for 2020. In addition, the latest evolution of the Mark III system…
Port of Antwerp Looking for Full-Time Representative in the UK
The port of Antwerp has decided to appoint a full-time representative in the UK, based in London, in order to keep in closer touch with the economic situation there now that Brexit is looming closer. "Antwerp Port Authority is now in search of a full-time representative to further raise Antwerp’s profile on the British market," said a press statement from the company. Attracting additional sources of trade and cargo will also form part of the new port representative’s job. With an annual freight volume of nearly 14 million tonnes (2017)…
Pasha Hawaii Concludes Horizon Spirit's Hurricane Relief Mission
Honolulu, HI-based Pasha Hawaii announced that the U.S. Jones Act vessel Horizon Spirit has returned to the U.S. West Coast after ably providing service in the Puerto Rico market to support extraordinary volumes of cargo for use in hurricane relief and rebuilding efforts. Since cargo volume can now be handled by the U.S. Jones Act vessels customarily serving the Puerto Rico market, the vessel will serve as a drydock reserve ship in Pasha Hawaii’s container business between the mainland and Hawaii. It will relieve the Horizon Reliance which will undergo regulatory dry-dock maintenance at a U.S.
Gloomy Outlook for Box Shipping?
As carriers withdraw from unprofitable routes, is there really too little competition in container shipping? A new report from UNCTAD highlights risks to competition in the container sector, specifically for smaller nations, says Drewry. The Review of Maritime Transport 2015 correctly identifies the growing control of vessel capacity among the leading container lines, and goes on to suggest that the search for economies of scale through the introduction of bigger ships explains why there are fewer carriers in individual markets.
World Wide Metric Launches New Website
World Wide Metric's new website offers a robust search feature and intensive technical data on all of our products, allowing users to search easily and effectively through 50,000 line items. This site will serve as the future platform for on-line buying and account management. World Wide Metric is a wholesale distributor of valves, fittings, tubing and flanges and carries the largest inventory of metric products in North America for the past 40 years (www.worldwidemetric.com)
Troy Container Line Promotes Key Personnel
Troy Container Line Ltd, announced May 14, 2012 the appointment of three key personnel to management positions. Svetlana Azimova has been named Assistant Vice President of Troy Container Line’s Freight Cashier Department; Jonathan Lasker has been appointed Assistant Vice President of the company’s Import Department; and Michael C. Troy II is now the Global Account Manager of Troy Container Line’s Sales Department. Svetlana Azimova has been an integral part of the Troy Container Line team for the past seven years.
Maritime Shipping Market Brightened: NYK Line
Japan’s Nippon Yusen Kabushiki Kaisha (NYK Line) said that conditions in the maritime shipping market were positive overall during the nine-month period of the fiscal year ending March 31, 2018. In the container shipping market, an upswing in spot freight rates stalled somewhat as the total supply of tonnage remained at similarly high levels as the previous year. Nevertheless, shipping traffic was brisk on the back of robust demand for container shipments. In the dry bulk shipping market…
Search for El Faro Crew Continues, Hopes Fading
Responders continue the hunt for possible survivors from the missing cargo ship El Faro, which is believed to have sunk during Hurricane Joaquin. As of Tuesday night, crews have searched some 172,257 square nautical miles while scanning in the vicinity of the ship's last known position 35 nautical miles northeast of Crooked Islands, Bahamas, the Coast Guard reported. A decision on how much longer the search will continue could be announced on Wednesday afternoon, the Coast Guard said.
Europe Set for Decline in Container Volume
The latest edition of Hackett's Global Port Tracker North Europe Trade Outlook predicts cargo volumes on the route may fall this year, with a decline of as much as 4% of total moves at ports in Northern Europe. It predicts declines in container volumes at European ports in the first half of 2016, with North Range ports projected to post a 5.2% year-on-year decrease. Meanwhile, the Institute of Shipping Economics and Logistics (ISL) noted that for January to November 2015, the year-on-year growth in major world ports was negative.
Debris Appears to Belong to Cargo Ship Missing in Bahamas
Search and rescue teams on Sunday located debris which appeared to belong to the cargo ship El Faro that went missing in the eye of Hurricane Joaquin with 33 mostly American crew members aboard, the U.S. Coast Guard and the ship's owner said. Life jackets, containers and an oil sheen were spotted by U.S. Coast Guard aircrews flying over the Bahamas on the third day of their search for the container ship. There had been no sighting of the El Faro or any life boats, Tote Maritime Puerto Rico president, Tim Nolan, said in a statement.
Maersk Line's Remote Control Management
One of Maersk Line's innovations turns the reefer container into a digitally connected device! "At Maersk Line, we’re always looking for ways to improve cargo care on behalf of our customers. As the world’s biggest container shipping company, we play an important role in cold chains all over the world, and our care means your cargo has a safe passage from field to fridge," says a statement from Maersk Line. "Innovation is a key element for us in our quest to ensure that your goods arrive in the exact condition intended.
CSCL to Change Name to Cosco Shipping Development
China Shipping Container Lines (CSCL) has proposed to change its name to Cosco Shipping Development Co (CSDC), in line with the company’s future business strategy and as a group member of China Cosco Shipping Corporation (Coscocs). "China Shipping Container Lines Co., Ltd. Board of Directors hereby announces that, in view of the Major asset restructuring program the company has been related to the motion of the Company and in February 1, 2016 the first meeting of 2016 Extraordinary General Meeting…
TEU Jump Boosts Rotterdam Port
Cargo volume at Rotterdam port, Europe's largest, rose 1.3 percent to 467 million tonnes in 2017, boosted by strong growth in the container shipping business. Container volume rose 12.3 percent, offsetting drops of 2.6 percent and 4.1 percent in bulk dry goods and wet goods respectively, the port said in a statement. "The new terminal at Maasvlakte 2, but also the existing terminals and the logistics chains surrounding them all contributed", against a backdrop of growing global trade, CEO Allard Castelein told reporters in Rotterdam.
Cambiaso&Risso takes over Carlo Sciaccaluga srl
Ship Agency Cambiaso&Risso has taken over Carlo Sciaccaluga srl, the historic ship agency established in 1903 as a forwarding agent in Genoa port and now boasting a solid reputation in the food industry, vegetable oils and chemical sector (particularly Biodiesel), and many customers at an international level. This is another important takeover for Cambiaso&Risso Agency, which contributes to strengthening its international leadership in the maritime service sector. The agreement…
COA Appoints STX Panocean's Kwon to BoD
The Container Owners Association – the international organization representing container shipping lines and container leasing companies worldwide – has appointed Mr O I Kwon, Senior Vice President – Container Business Management Division, STX Panocean Co Ltd, to its Board of Directors. Mr Kwon joins six other Directors, who represent some of the world’s largest container owners, on the Board of the Container Owners Association. “It is a great honour – both for me personally, and for my company STX Panocean - to join the COA Board,” Mr Kwon says.