  Tuesday, January 6, 2009 |
Shenzhen's SCT volume up 24pc to 4.1 million in 2008
SHENZHEN's Shekou Container Terminal hit its annual throughput target of 4.1 million TEU, marking 24 per cent year-on-year increase in 2008.
SCT earlier took delivery of six new electricity-driven rubber tyre gantry cranes for its new No 8 berth, marking the arrival of the last of 10 new cranes.
The No 8 berth, which commenced operation in September, has an annual capacity of 700,000 TEU with a quay length of 455 metres and a depth of 17 metres. The berth, equipped with four quay cranes, can handle the world's largest containerships.
ELAA starts 2009 with AP Moller Maersk chief Kolding as chairman
THE European Liner Affairs Association (ELAA) has marked the start of the New Year with a new chairman Eivind Kolding, partner and CEO of the container business of the AP Moller Maersk group and vice-chairman of Danske Bank.
Mr Kolding will hold this ELAA position for 2009, a role he has taken over from former Hapag Lloyd chairman Ulrich Kranich.
ELAA executive director Chris Bourne said: "On behalf of the ELAA member lines I would like to take this opportunity to thank Mr Ulrich Kranich of Hapag Lloyd AG for his work as chairman during 2008 - the year that saw the end of the liner shipping conference system on trades to and from Europe and ushered in a new era in liner shipping."
Mr Bourne added in a statement from the Brussels-based ELAA, "I am pleased to welcome Mr Kolding as chairman for 2009. During this year ELAA's work will focus on ELAA's newly established 'Volume Data Information Exchange System' as well as finalising the consortia regulation."
Global Ship Lease takes delivery of 10,960-TEUer, its 16th ship
GLOBAL Ship Lease, a containership charter owner, has announced that it has taken delivery of the 10,960-TEU CMA CGM Thalassa, adding to its fleet of 16 vessels, all on charter at fixed-rate long-term contracts with an average remaining term of 10 years and a weighted average age of just over four years.
The delivered newbuilding is on a fixed rate 17-year time charter to CMA CGM, the world's third largest container shipping company. "The purchase was funded by drawings under the company's US$800 million credit facility," said a company statement.
"With the CMA CGM Thalassa secured on a favourable 17-year fixed rate time charter, we have further increased our contracted revenue stream, which now stands at US$1.65 billion," said Global Ship Lease CEO Ian Webber. "The successful execution of our time charter strategy has ensured that all of Global Ship Lease vessels are secured on contracts with an average duration of 10 years."
Global Ship Lease, incorporated in the Marshall Islands, commenced operations in December 2007 in the business of owning and chartering containerships under long-term, fixed rate charters to world class container liner companies. Two of Global Ship's vessels are on charter to Zim, with the remainder to CMA CGM.
PSA-Sical says regulator's 34pc THC cut makes Indian CT unviable
OPERATIONS have become unviable at India's fourth biggest container terminal at the Tuticorin port in Tamil Nadu after the regulator slashed tariffs for services, said port operator PSA-Sical Terminals Ltd.
Revenue earned after the latest tariff cut would not be sufficient to cover operating expenses and royalty payments to the government-owned port, said a PSA-Sical executive on condition of anonymity.
PSA International Pte Ltd, the world's second biggest container port operator, is owned by the Singapore government's Temasek Holdings. It has a 57.5 per cent stake in PSA-Sical Terminals with local partner Sical Logistics Ltd holding 37.5 per cent, reports India's Livemint The Wall Street Journal.
The new rates, which came after PSA-Sical sought to raise tariffs by 30 per cent, will remain in force until December 31, 2011.
Said the regulator, the Tariff Authority for Major Ports: "There is no merit in the proposal of PSA-Sical Terminals for an upward revision of 30 per cent over the existing tariffs. In view of the cost position, this authority decides to reduce the tariffs by 34 per cent."
This is the third time that the regulator has cut tariffs after PSA-Sical Terminals started operating the facility.
The first two tariff reduction orders were not implemented because of a stay ordered by the Madras high court in response to petitions by the port operator.
Though the regulator has cut tariffs 34 per cent, a director of the company said the reduction would effectively be in the 41-42 per cent range. "Whatever profit we have made in the past 10 years will be wiped out by this decision," he said.
In 2006, Dubai's DP World, which runs a terminal at Jawaharlal Nehru Port near Mumbai, took the regulator to court after it cut tariffs for its container terminal services. The regulator later allowed DP World to raise tariffs 10.3 per cent from October 1.
Shareholders in the PSA-Sical joint venture, who were given rights to operate the terminal for 30 years from July 1998, will decide the future course of action against the tariff cut. The port has the capacity to handle 450,000 TEU a year.
In September 2002, the regulator cut tariffs by 15 per cent when the terminal operator asked for an increase. But the Madras high court set aside to allow the operator to charge the existing tariff when PSA-Sical Terminals filed a writ petition against the order.
Again, in August 2006, the regulator cut tariffs 50 per cent when the operator sought a hike of 30 per cent on the INR2,300 (US$47.70) per TEU. PSA-Sical challenged the order in the Madras high court. The firm also reduced the cargo handling capacity at the Tuticorin terminal to the minimum stipulated under its agreement with the government for 18 days from July 17, 2008.
On August 22, the Madras high court again quashed the regulator's order to cut tariffs by 50 per cent. The court also asked the terminal operator to file a representation before the regulator to revise the tariffs. Based on this representation, the court asked the regulator to pass a fresh order "on merits and in accordance with law".
Said the regulator on December 30: "The high tariffs levied at some other terminals alone will not justify similar tariff elsewhere."
Maersk to suspend Red Sea service - FM-5 - with Hyundai
MAERSK Line is understood to have closed its FE-ME-Red Sea FM-5 loop, one of five Far East-Middle East end-to-end services in which it has a slot exchange with Hyundai Merchant Marine, and also plans to reduce capacity on its Med-Middle East-India ME-3 service, reports AXS-Alphaliner News.
The FM-5 connects China and SE Asia to Salalah, Jeddah and Aqaba. "At the eve of its suspension, the FM-5 weekly capacity stands at 5,200 TEU," said the Paris-based agency.
Pakistan troops close NATO supply route through Kyber Pass
PAKISTANI troops moving against Taliban guerrillas have intermittently blocked the one supply route through the Kyber Pass from Pakistan into Afghanistan.
Transport facilities have been targets of repeated attacks in recent weeks, including the destruction of more than one hundred Humvees to be sent to troops in Afghanistan, reported American Shipper.
CSCL managing director named outstanding Chinese Innovator
CHINA Shipping Container Lines managing director Huang Xiaowen was recently awarded the title of "World Economy Outstanding Chinese Innovator" on the Asia Pacific Annual Chinese-Economy Council for Investment Financing 2008.
Mr Huang won the award for China Shipping Container Lines' leading position in the world shipping market and its far-reaching brand influence.
The event offered a series of awards for pre-eminent firms and individuals. Evaluation of qualification was based on their performance, competitive strength, corporate culture, brand influence, overseas operations, international expansion, production and purchasing management, global marketing, human resources, technological innovation, overseas brand image and adaptation to local markets.
Tanzania ups box storage fee 100pc to ease congestion
THE new penalty charge of US$40 per TEU and $80 per FEU will be imposed on cargo owners if their containers stay longer than 21 days on the Dar-es-Salaam docks, the Tanzania Ports Authority (TPA) has announced, reports Dar's Citizen Daily.
TPA spokesman Peter Millanzi said port charges would be levied from January 15 alongside a container auctioning scheme for overstaying boxes with proceeds going to the Tanzania Revenue Authority.
The port previously allowed containers to stay without charge for up to a week and from the eighth day to the 30th be charged $20 per TEU and $40 per FEU. Containers in transit are given 15-day extensions after which charges are made.
Official morass, dishonesty, lack of box pick ups plagues Nigeria
NIGERIA's "outdated legislation, equipment shortages, epileptic power supply, unreliable IT infrastructure, failure to streamline security agencies and dishonesty are reasons why the 48-hour cargo clearance target remain unachieved at the nation's seaports," reports The Punch, of Lagos.
APM Terminals Apapa Ports managing director Michael Hansen was cited as saying government agencies operating in the ports hindered the 48-hour container dwell time goal. "We still have 15 agencies present in the port, which may take an interest in the release of containers and therefore make 48 hours clearance impossible," he said.
Mr Hansen also noted that the implementation of electronic release of containers by Nigeria Customs Services was a good development, but too few were online to facilitate quick clearance.
His terminal handles 47,000 TEU per month if there is no congestion, but capacity falls to 20,000 TEU when importers fail to pick up boxes. "If we can reduce the dwell time from today's 28 days to 14 days, then we will double yard capacity. This will enable us to handle many more containers and it will reduce the need for taking containers to ICDs [inland container depots]," he said.
Nigeria Customs Service spokesman for Lagos Dera Nnadi said negative attitudes and a refusal by importers to declare actual contents of consignments was the big cause of the slowdown.
"Delays occur mostly after physical examination - maybe you are found to have under declared what you brought in - then definitely delays will occur, because you will not be allowed to go. You will be made to pay for the extra duty," he was cited as saying.
Mr Nnadi said customs tried fast-tracking procedures, including giving shippers the opportunity of taking the deliveries in their premises, but most left cargo at the port un-cleared.
Lucky Amiwero, president of National Council of Managing Directors of Licensed Customs Agents and Institute of Transport Administration of Nigeria, blamed the congestion at the ports especially Lagos on old laws that operate in a new system.
This invariably put freight forwarders in contravention of the import guidelines and resulted in frequent seizures and disputes with the authorities, he said.
For example, Mr Amiwero said the import guidelines that the country was implementing under the destination inspection, allows for discrepancy and penalty where necessary, while the law of customs and excise allows for seizures of goods of defaulters.
Mr Amiwero said government agents at the ports now seized and auctioned containers belonging to alleged defaulters as stipulated by the old law instead of penalising them by asking them to pay for the excess imported items where necessary under the new law.
Bulgarian Port of Varna box volume up 57pc in 2008
BULGARIA'S Port of Varna had reported a 57 per cent year-on-year increase in container shipping in 2008, according to port executive director Danail Papazov, with the number of port-processed boxes rising to 152,000 totalling 7.65 million tonnes of cargo.
Port revenues stood at LEV35.6 million (US$8.4 million) and produced a profit of LEV2.5 million. Investments totalling LEV11.8 million in 2008, and mainly went towards new equipment, reconstruction and infrastructure upgrades.
Mr Papazov said there was a slowdown in cargo to and from plants in nearby Devnya, as well as in China imports, but exports in grain had increased, reported the Ukraine's Sanna News agency.
He added that the pay for the staff increased 26 per cent. No lay-offs are planned in the expected slowdown because there is a crisis programme in place, providing for spending and investment cuts.
Mr Papazov said that investments planned for 2009 total LEV12 million, which will focus on new towing vessels and equipment for working inside holds.
Portland container volume falls 5.7pc in first 11 months
PORTLAND, Oregon, container volume fell 5.7 per cent in the first 11 months year-on-year to 227,252 TEU and 11.6 per cent down in November from the same month in 2007.
Export containers trumped imports in 2008, but cargo declined overall. Outbound container traffic through November fell 7.8 per cent to 127,896 TEU while box imports fell 2.7 per cent to 99,356 TEU.
Grain volume increased 3.8 per cent to 4.12 million tons and mineral bulk tonnage increased 1.4 per cent to 5.13 million tons, reported Newark's Journal of Commerce. Breakbulk throughput to November fell 5.8 per cent to 977,233 tons while and automotive shipments fell 7.4 per cent to 381,590 tons.
Ex-Cathay chief's Seabury consultancy sees 2009 as good as 2008
THIS year should be no worse than last with the economy picking up in 2010, according to David Turnbull, former CEO of Cathay Pacific Airways, and today's chairman of Seabury Asia, a Hong Kong consultancy covering aviation companies
"We do not foresee that 2009 is going to be much better or worse than 2008 - it will be more or less the same," said Mr Turnbull in an interview with aircargoworld of Washington, DC. "However, come 2010-2012, things will pick up again."
But aircraft "orders need to be cancelled or delayed, and/or retirements and temporary parking need to go up, and/or conversions need to be down significantly from earlier years, and/or an increased overcapacity situation will occur putting downward pressure on yields and load factors."
Mr Turnbull also said this differs from other downturns because "we are not forecasting a particular year with a huge upturn, something that other recession periods typically show. We also do not foresee a return to the traditional seven per cent annual air cargo growth in the coming years, as we have been used to from 2002-2007.
As such, we may be a little more pessimistic than some others," he said.
Mr Turnbull approves of state bailouts. "The actions of national and regional governments to thaw frozen credit markets, re-ignite investor confidence and stimulate consumer demand are essential to minimising the impact of the current downturn. It is important that these efforts be asserted across all affected regions - virtually all regions of the world - as failure to do so will create headwinds for the other economies," he said.
Asked if there were any "shift in the airline/air cargo centre of gravity to the Gulf region", Mr Turnbull said: "It is undeniable that Emirates and the hub in Dubai have seen very strong growth in past years. The success of these initiatives, however, still has to be proven in the cargo industry."
When talk turned to the impact of environmentalism, aka, "sustainability", Mr Turnbull said: "It is likely that the US buying into sustainability as a valid business model element will create a bow wave that requires Asian and developing nation trading partners to move toward adoption of sustainability. In a world where the price of hydrocarbon fuels may be entering upward pressure, sustainability has a more visible economic justification," he said.
"We are pretty sure that there will be a CO2 surcharge added to total charges, as the additional carbon tax cost is not insignificant and would really hurt profitability of the airlines if none of it is passed through to customers. Timing is unclear, however," he said.
"We already see a shift away from airfreight to ocean shipping as the vehicle for global trade with what we estimate to be nearly three percentage points having occurred between 2002 and 2007. On land, freight railroads in the US, in particular, have been gaining share," he said.
"Oil prices of US$70 a barrel are a point at which the impact of fuel costs on modal choice is neutral. The global recession undoubtedly cyclically accelerates those share shift trends, as there is simply less urgency to move most goods and the willingness and ability to pay more for faster shipments is also diminished relative to more robust economic times.
"Longer-term, we believe it likely that potentially inexorable fuel price increases will continue to drive share shift toward more fuel - efficient modes of freight transportation than air freight," Mr Turnbull said.
Hanjin Group forges Air Silk Road deal with Uzbekistan authorities
HANJIN Group, Korea's global logistics company providing air, sea and land transport, is leading the project to create a central Asian logistics hub in Uzbekistan.
Under the deal, Hanjin Group will work with the Uzbekistan government to lay the foundation for turning Navoi Airport into a logistics hub from 2009 to 2013, said a company statement.
The first step will be building airport infrastructures such as cargo terminal facilities, equipment and ground transport network connections. This will be followed by airport development phases designed to increase air cargo capacity, expand air cargo network and attract global logistic companies.
For the following five years, 2014 - 2018, the project will then focus on nurturing airport's growth into a hub, inducing more air cargo flow through Navoi.
"The Navoi development project is now beginning, but I am confident that Navoi, as the centre of the new Air Silk Road, will become a new growth engine for both Uzbekistan and Hanjin Group," said Hanjin group chairman Yang Ho Cho.
"Hanjin Group will spare no effort in supporting the growth of Navoi into central Asia's best hub, promoting the growth of the airport and its surrounding industries as Hanjin participates in the airport's management," he added.
Before signing, Mr Cho visited Uzbekistan's Deputy Prime Minister Rustam Azimov to discuss the significance of the agreement and future cooperation between Korea and Uzbekistan in aviation.
Lynden Air Freight appoints new president and vice president
LYNDEN International's David Richardson is to succeed Dennis Patrick as president of the company as of November 2009, with Steve Tofts taking the post of international vice president.
Mr Richardson company service began in 1980 as assistant controller from which he rose to executive vice president and chief financial officer. Alongside his 30 years worth of industry experience, eight of which were with the Airborne Freight Corporation and held posts of general director and sat on the board of several Russian companies affiliated with Lynden.
His expertise over the last decade lies in the development of international projects, specifically in Moscow and the Russian Far East.
"I'm looking forward to the opportunities and challenges of continuing to build service success for our customers," he said. "Former president Dennis Patrick, who guided the company so well for 25 years, built a strong foundation for growth."
Steve Tofts' appointment follows his time at Lynden in 2005 as director of international services after serving with Lupprian's Global Logistics. "The creation of a new international division at Lynden signals our strategic intent to continue to focus on providing our clients with global solutions to their overall supply chain needs," said Mr Tofts.
Lynden International is part of the Lynden group, which has combined asset and non-asset based capabilities include worldwide air and ocean forwarding, third party logistics, trade show shipping, truckload and less-than-truckload transport, scheduled and charter barges, intermodal bulk chemical hauls, scheduled and chartered Hercules L-382 cargo aircraft, and multi-modal logistics.
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