|Saturday, May 25, 2013
Maersk to hike Asia-Caribbean via Suez rates nearly a US$1,000/TEU
DENMARK's Maersk Line, the world's largest container carrier, will increase rates from the Far East to Caribbean starting June 15.
Rates will rise US$980 per TEU and $1,400 per FEU and 40-foot high-cube from Hong Kong, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia and Taiwan to Dominican Republic, Haiti, Jamaica, Venezuela, Trinidad and Tobago, Panama, Colombia and Puerto Rico.
The increase will be EUR750 (US$969) per TEU and $1,395 per FEU and 40-foot high-cube from China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia and Taiwan to Cuba.
Maersk will also increase rates in its trade from the Far East to Central America, effective June 15. From China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia and Taiwan to Chile, Ecuador, Mexico, Peru, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Bolivia and Colombia, the hike will be $750 per TEU and $1,500 per FEU.
Additionally, Maersk will boost rates on its route from the Far East to New Zealand, beginning July 1. From South Korea, China, Taiwan, Hong Kong, Singapore, Indonesia, Malaysia, Philippines, Thailand and Vietnam to New Zealand, the increase will be $200 per TEU and $400 per 40-foot high-cube.
In June, Maersk will simplify local surcharges to Australia and modify rates for dry equipment in Mexico and Central America.
The container line will also revise its services between the Far East and South America's east coast, as part of a joint restructuring with five other carriers, effective from July.
Maersk profit warning feared as analysts doubt rate hikes will stick
AFTER a street-beating profitable first quarter, analysts say that AP Moller-Maersk will likely to cut its full-year outlook because of a 41 per cent fall in freight rates since April, Reuters reports.
According to the Shanghai Shipping Exchange, Asia-Europe rates have fallen from US$1,140 per TEU to $668 in less than two months.
Maersk Line has insisted that will more than double that rate from on its main Asia-Europe route, but analysts doubt customers will pay.
"If they do not succeed we are expecting a downgrade of the full-year outlook in connection with the second-quarter earnings report," said Denmark's Alm [asset and liability management] Brand Markets equity analyst Jesper Christensen said.
Maersk Line, whose vessels make up 15 per cent of world container shipping capacity, is to report second-quarter earnings in August.
The company was not immediately available to comment on whether it would lower its guidance.
"If current rates stay on this level for the rest of this year, there is no doubt they will have trouble reaching the full-year guidance," said Nykredit Markets equity analyst Ricky Rasmussen.
Rotterdam: European Commission's port meddling will only add bureaucracy
THE Port of Rotterdam Authority and Deltalinqs, as association of port industries, object to plans of the European Commission to appoint an independent supervisor for ports in every member state to stop competition abuse.
But the initiative will only lead to unnecessary procedures and delays, said the port and its Deltalinqs partners in a joint statement.
"This supervisor would have to start checking ports in terms of such aspects as setting port tariffs and market access. The proposal forms part of the new port package, which the European Commission published on Thursday," the port statement.
The EC feels the proposal will promote competition, transparency, liberalisation and clarity regarding the financing of ports and the provision of service in ports.
Nantong Cosco-Kawasaki shipyard delivers 13,386-TEU COSCO France
COSCO has received delivery of its 13,386-TEU post neopanamax vessel, the COSCO France, the second, after the delivery of the COSCO Belgium in March, of eight identical ships from Nantong Cosco KHI Ship Engineering Company (NACKS), Cosco's joint venture with Kawasaki Heavy Industries.
The Cosco France is a 20-row wide twin-isle ship costing US$167 million, that was first scheduled for an earlier delivery, but deferred because of the global economic downturn.
The other ships will be delivered over the next 18 months, with the final ship due in September 2014. Each of the vessels will be named after a European country.
In a few days, the COSCO France will join the CKYH alliance's Far East to Northern Europe service NE3, where it replaces the COSCO Beijing, a 9,469 TEUer soon to join Hong Kong's OOCL on its Far East-Middle East Gulf service as part of a vessel swap with Cosco.
California ocean terminals to have ship electric plug-ins by January
SHORE power is to be available to ships at all international terminals of California ports by the end of 2013 with Long Beach and Los Angeles offering "cold ironing" at 13 terminals in total.
Cold ironing enables a ship's auxiliary engines to be switched off, reducing pollution from ships at berth by up to 95 per cent, according to Port of Long Beach, which along with LA is involved in anti-air pollution programmes supported by the California Air Resources Board (CARB).
Half of all visits by container, refrigerated cargo and cruise vessels will be powered by electricity by January 2014, said an ARB mandate, according to a report from London's Lloyd's List. Currently, nearly half of the two ports' terminals offer shore power at least some berths.
PierPass, a truck access scheme in force at LA and Long Beach terminals, supports the shore-power initiative which it hopes will offer "significant air quality benefits" to port workers and nearby communities, said the programme president Bruce Wargo.
CEVA quarterly profit plunges 53pc to US$84.8 million, sales off 6pc
GLOBAL non-asset based supply management company, CEVA Group, says its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first quarter of 2013 plunged 53 per cent from EUR66 million (US$84.8 million) in the first quarter of 2012 to EUR31 million at the end of the first three-months of 2013.
But adjusted EBITDA for the first quarter of 2012 would have been EUR57 million if the impact from divested businesses is excluded, said the Dutch company statement accompanying the results.
Quarterly revenue decreased by 6.3 per cent to EUR1.6 billion in 2013, compared with EUR1.7 billion in the same period last year. Freight management revenue in the first quarter dropped 6.8 per cent year on year, driven by softness in air freight volume, but partly offset by ocean revenue gains.
Contract logistics revenue fell 5.9 per cent year on year, driven in part by the sale of CEVA's Pallecon Container business in the first quarter of 2013 for about EUR135 million; the impact of several contracts that were terminated as part of the cost reduction programme launched in the fourth quarter of 2012; and lower volumes in key markets, notably Europe, CEVA said.
"The weak economic conditions impacting the global logistics industry continued to weigh on customer sentiment during the first quarter, impacting both revenue and adjusted EBITDA," said Marvin Schlanger, CEO of CEVA. "This is disappointing; however, we have now taken significant and decisive action to strengthen the company's balance sheet through major capital restructuring."
CEVA's recapitalisation of its balance sheet and new capital raised eliminated about EUR1.3 billion of consolidated net debt. The transaction also reduced CEVA's annual cash interest costs by more than EUR130 million, about 50 per cent, and provided access to more than EUR230 million of new capital infusion for investment in the company's business plan.
"We continue to focus our efforts on implementing the previously announced cost-reduction programme," Mr Schlanger continued. "We remain confident that, aided by the strength of our new capital structure, we can drive revenues across the business to position CEVA for profitable growth in the future. Business development successes in the quarter met our target and will benefit future quarters."
EU anti-piracy funding in East Africa come to nearly US$50 million
ANTI-PIRACY funding of EUR37 million (US$47.7 million) is to be allocated by the European Union to fight piracy in eastern and southern African countries through its Regional Maritime Security programme.
Financial support focuses on the development of legal and judicial systems in these countries so the arrest and transfer of pirates can be dealt with effectively. It will also allocate training for authorities to prevent the transfer of funds profited from piracy, or for it, and strengthen existing financial oversight systems.
By sharing expertise and implementing training it hopes to improve surveillance and patrol of the coastline alongside material logistics support for security.
Through anti-piracy awareness campaigns in areas such as Somali it hopes to prevent uptake by providing vocational training for vulnerable groups of young men likely to turn to such a career.
Said EU development commissioner Andris Piebalgs: "Strengthening security in the maritime routes is crucial for us because it will help [boost] trade and growth in the region, which would enormously improve people's lives."
Cargotec's Kalmar heightens six quay cranes at MSC Antwerp terminal
KALMAR, part of Cargotec, has used a specialist crane team to complete the heightening of six quay cranes at the MSC terminal in Antwerp to enable it to handle the 18,000-TEUers that will arrive soon.
The project increased hoisting of all the quay cranes from 38 to 42 metres, completing modifications within 12 months with work completed on the final crane in March.
The project included the extension of the personnel lift and staircase, renewal of wiring and software. Needed maintenance was also done to minimise downtime. Quayside operation disturbance was also minimised by moving the crane to an off-dock construction site.
Said MSC Home Terminal technical manager Hugo Borre: "It is vital, that our operations continue at maximum efficiency. The ability to handle the larger vessels that are coming is a critical factor."
Said Kalmar vice president Gert Jan Doornewaard: "With the ever-increasing capacity of containerships, quay cranes need the additional hoisting height and often of boom reach too."
US Coast Guard issue hurricane season alert for New York and New Jersey
WITH the approach of the hurricane season, the Captain of the Port (COTP) New York has called on the maritime communities in New York and New Jersey to ensure they are prepared to handle inclement weather conditions on the US east coast.
The alert from the United States Coast Guard (USCG) has stressed the need to conduct training to ensure employees are aware of the potential risks and responsibilities associated with hurricanes, said the GAC Hot Port News.
The USCG pointed out that the Standard Severe Weather Practices for the COTP New York Zone apply year-round, whether resulting from a hurricane, tropical storm, northeaster, or any other adverse weather resulting in high winds.
The COTP may, at his discretion, impose additional restrictions not specifically listed and may enact these practices based on actual or predicted conditions.
When 15 knot winds with 20 knot gusts from the north or northwest while on an ebb tide, all barges in the Bay Ridge anchorage must have tugs alongside. When the sustained winds are at 25 knots regardless of the wind or current direction, all barges or "dead ships" not attached to a permanent mooring shall have tugs alongside. In addition, all ships and tugs in an anchorage shall have their engines on-line and all ships engaged in bunkering or lightering operations may have no more than one barge along side.
During gale conditions when winds sustained are at 34 knots, all ships at anchor in Bay Ridge, Gravesend, Perth Amboy, or Anchorage 19 shall have a pilot aboard with all lightering and bunkering operations suspended and all barges removed from anchored vessels.
In addition the Captain of the Port may impose a complete harbour closure affecting all commercial operations. Light tugs assisting other vessels/barges and emergency vessels will normally be the only vessels allowed to operate during these conditions.
Asia Pacific management structure of Ecu Line undergoes restructuring
ANTWERP's Ecu Line has announced several changes in its Far East management structure as part of the long-term development strategy for the region with the appointment in February of Uday Shetty as the new COO for the Asia Pacific region.
Asia Pacific regional CEO Mike Dye is departing after four years in which he completed the establishment of a pan-China network of offices and the NVOCC's expansion into Indonesia with offices in Jakarta, Surabaya and Semarang.
Mr Dye is being replaced by Uday Shetty as Ecu Line's new chief operations officer for the Asia Pacific region.
Mr Shetty, who has been working in several positions in different countries for the Ecu Line Group such as Mumbai, Antwerp and Singapore, will take over as regional CEO. Based in Singapore, he is a member of the executive committee and will report group CEOs Marc Stoffelen and S Suryanarayanan.
Bati completes tricky heavy lift shipment from Japan/India to Turkey
ISTANBUL's Bati Project Logistics (BPL) has transported 152 pieces totalling 6,930 cubic metres of cold boxes, tanks and air separation plant components from Yokohama and Mundra to Eregli.
Cold boxes up to 30 metres long and eight metres wide and eight metres in height the largest being 152 tonnes, the company said.
In this job, BPL overcame several difficulties. Loading, discharging and positioning of the parts and assembling hydraulic trailers were sensitive tasks, said the company.
Along with separation plants, the consignments were loaded onto barges by a chartered floating crane for transport alongside the ship, then loaded onto the vessel.
The pieces were transferred from Yokohama to Mundra Port by a heavy lift vessel where additional cargo of tanks were loaded, after which the vessel sailed to Eregli, said the company release.
Bati Project Logistics is part of Bati Group, a member to the Cargo Equipment Experts (CEE) network through Bati Shipping & Trading. It started in business in 1992.
Asians name Le Havre's inter-port network best in Europe for a third year
HAROPA, which represents the ports of Le Havre, Rouen and Paris has been re-elected for the third year in a row as the best European seaport for 2013.
Asian readers of Cargonews Asia took part in the poll and they included importers-exporters, logisticians, freight forwarders and shipping lines present in China, Singapore, Hong Kong, Taiwan, Thailand, South Korea and Malaysia. They selected HAROPA among eight major European ports including Hamburg, Rotterdam and Antwerp.
The award was presented in a ceremony early this month in Beijing by John Cheetham, Asia Pacific Regional commercial manager of IAG Cargo, to Christophe Cheyroux, Greater China Representative for HAROPA.
Herve Martel, chairman of the management board of the Grand Port Maritime du Havre and HAROPA vice-chairman said: "This confirmation of the service quality offered by all actors of the logistics chain is great pride for my teams and all customers and players of HAROPA, as they have their efforts rewarded on the international shipping scene."
FedEx Express wins Reader's Digest Asia's Trusted Brands Gold Award
FEDEX Express, a subsidiary of FedEx Corp, has been presented with the Trusted Brands Gold Award in the Airfreight/Courier Service category by Reader's Digest Asia, winning the award for nine years continuously since it was established in 2004.
The company was also a Gold Award winner in the category in three markets across the region, including Hong Kong, Singapore and Taiwan.
"Winning the Trusted Brands Gold Award is testament to our commitment to service excellence and customer satisfaction. FedEx has always been a badge of trust and reliability for our customers here in Asia and around the world," said FedEx Express Asia Pacific president David Cunningham.
Inaugurated in 1999, the Reader's Digest Asia's Trusted Brands Survey is one of the region's most comprehensive, reputable consumer-based brand preference surveys. In the survey, 8,000 consumers were interviewed across seven markets in Asia including Hong Kong, India, Malaysia, Philippines, Singapore, Taiwan and Thailand, covering 43 categories in each market.
Emirates Sky Cargo wins double accolade at prestigious award ceremony
THE freight division of Emirates, Emirates Sky Cargo, has won the Cargo Airline of the Year 2013 award and was also named Best Middle East Cargo Airline for the 25th consecutive year at the Cargo News' awards evening held recently in London.
Emirates Sky Cargo received the accolades at the 30th Cargo Airline of the Year awards, an event which recognises excellence in the cargo, freight and logistics business and is known as the 'Oscars' of the industry.
United to fly 40 SkyWest Airlines aircraft in United Express livery
UNITED Airlines has signed a capacity purchase agreement with SkyWest Airlines, a wholly owned subsidiary of SkyWest Inc, to operate 40 Embraer 175s under the United Express brand.
SkyWest will purchase the forty 76-seaters with deliveries in 2014 and 2015. These aircraft are in addition to 30 Embraer 175s that United previously announced it will purchase and which will be operated by United Express.
The Embraer 175 is the first 76-seat regional jet aircraft in the United Express fleet. As the new aircraft are introduced into the United Express fleet, the company will remove some less efficient regional aircraft from the fleet. The E175s consume less fuel per seat and will have less CO2 emissions per seat than the aircraft they replace, the airline said.
World transport ministers award Osaka airports for innovative financing
THE Kansai International Airport Company Ltd (NKIAC) is the 2013 winner of the OECD's International Transport Forum's (ITF) Transport Achievement Award.
The award was presented to NKIAC president Keiichi Ando during the recent Leipzig meeting of transport ministers from the 54 member countries.
The ITF is an intergovernmental organisation that acts as a global transport policy think tank and organises an annual summit of transport ministers. ITF is part of the Organisation for Economic Cooperation of Development, a group of developed economies.
NKIAC was honoured for its highly innovative model of funding key transport infrastructure.
Established by the Japanese government in 2012, NKIAC integrated the operation of Osaka's two major air hubs, Kansai International Airport (KIX) and Osaka International Airport (ITM).
"Under this new structure, funding for a dedicated low-cost carrier terminal and strategic price incentives for off-peak take-offs and landings have helped the emergence of a new low-cost carrier market in Japan. It has also spurred the development of a new air freight logistics hub at KIX, boosting use of both airports," said the ITF release.
"The pooling of resource and cash flow have enabled innovative cross-funding, allowing government subsidies for KIX to be progressively reduced to zero. With economic viability achieved, NKIAC is preparing the sale of concessions for the operation of both airports. This will be a first for major infrastructure in Japan and is expected to set an example for other projects," the release said.