FMS Names Trond Prestroenning as CEO
Fr. Meyer's Sohn (FMS), a global forwarding company for sea freight, announced that Trond Prestroenning will strengthen the management team as from September 1st, 2019.He will take on the position as ‘Regional CEO Americas’ and ‘President of Fr. Meyer’s Sohn North America, LLC’, said a press release.Tomas Jonson, previous ‘CEO of North America’ for Fr. Meyer’s Sohn, will be leaving the forwarder to pursue a new challenge in a different industry.Trond Prestroenning has been in freight forwarding for 25 years.
DSME, DNV GL Pact for Joint Projects
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) and DNV GL have signed a framework agreement which will see them cooperate on joint development projects (JDPs) for future technologies in the shipbuilding and offshore plant industries.The Norway-headquartered classification society said in a release that the agreement was signed by DSME President & CEO Sung-Geun Lee and DNV GL Group President & CEO Remi Eriksen at the DNV GL headquarters in Høvik.“Through the JDPs with DNV GL…
Container Terminal Operators Forms Hong Kong Seaport Alliance
Hongkong International Terminals Limited, Modern Terminals Limited, COSCO-HIT Terminals (Hong Kong) Limited, and Asia Container Terminals Limited jointly announced the formation of the Hong Kong Seaport Alliance (The Seaport Alliance).The joint operating agreement designed to deliver more efficient service offerings to carriers that call Hong Kong, while enhancing the overall competitiveness of the Port of Hong Kong across the region.The Seaport Alliance will offer a total of…
New Rule Creates Flexibilities for NVOCC Agreements
A Final Rule published today by the U.S. Federal Maritime Commission (FMC) offering deregulatory flexibilities for non-vessel-operating common carrier (NVOCC) negotiated rate arrangements (NRAs) and NVOCC service arrangements (NSAs) will go into force on August 22, 2018.The key changes to NRAs allow them to be amended at any time; allow the inclusion of non-rate economic terms; and, allow an NVOCC to provide for shipper’s acceptance of the NRA by booking a shipment. NSAs will…
Quality of Ocean Carriers “Poor to Average”
The service provided by container shipping lines is rated as poor to average and has deteriorated in the past year, according to a survey of exporters, importers and freight forwarders conducted jointly by Drewry and the European Shippers’ Council (ESC). The ESC and Drewry contacted several hundred shippers and forwarders from all over the world in March 2017 and asked them how satisfied they were with 16 price and non-price related attributes of the services provided by ocean carriers. The survey also looked into areas most in need of improvement and how quality varies by type of carrier.
Portland Port, ICTSI to terminate Lease
ICTSI Oregon, Inc. and the Port of Portland have mutually agreed to terminate a 25-year lease agreement to operate the container facility at the Port’s Terminal 6. The agreement allows ICTSI Oregon to be relieved of its long-term lease obligations effective March 31, 2017, pending approval by the Port Commission. In exchange, the Port will receive $11.45 million in compensation to rebuild business, as well as additional container handling equipment, spare parts and tools at the terminal. “Small businesses, farmers, agricultural producers, shippers and communities throughout the Columbia River region deserve and need a fully-functioning container terminal,” said ICTSI Oregon CEO Elvis Ganda.
East-West Shippers See First Increase in Contract Rates
Ocean freight rates for cargo moving under contracts on the major East-West trade routes saw a reversal of trend in 4Q 2016, according to Drewry’s Benchmarking Club, a closed user group of 50 multinational retailers and manufacturers who closely monitor their contract freight rates. The Drewry Benchmarking Club Contract Rate Index, based on average Transpacific and Asia-Europe contract freight rate data provided confidentially by shippers, increased by 3% in the latest quarter, after having fallen for more than 6 consecutive quarters.
Carriers have Withdrawn Extremely Low Spot Market Freight Rates - Drewry
Drewry’s Global Freight Rate Index, a weighted average of spot container freight rates across all major routes except intra-Asia, swung back in July by 13% to reach $1,403 per 40ft box. The global spot rate index had dropped to an all-time low of $1,113 per 40ft container in April. Drewry is in a unique position to track these trends through its Container Freight Rate Insight online platform, via which a constant panel of over 30 forwarders and NVOCCs report rates on a continuous basis.
Wave goodbye to $50 bln - Drewry
Container industry revenues are contracting faster than carriers can cut costs. First-half results so far suggest sales are down by around 18%, increasing the pressure to reduce costs. The container shipping industry is currently enduring a severe revenue contraction that is placing carriers under enormous pressure to squeeze more savings wherever they can and is driving the latest round of M&A activity. The first-half 2016 financial results that have been published so far from a handful of major carriers paint a very depressing picture for the industry.
Hapag-Lloyd Wins 2016 Ocean Performance Award
The GT Nexus Shipper Council, a community group of supply chain executives representing large global enterprises, has recognized Hapag-Lloyd, one of the world's leading container liner shipping companies, as the winner of the 2016 Ocean Performance Award. The award was granted at Bridges 2016, the leading cloud supply chain industry event held July 10-13 in New York as part of Inforum. Hapag-Lloyd operates a fleet of 175 modern container ships and a total capacity of 955,000 twenty-foot equivalent units (TEU). The company has approximately 9,400 employees at 361 sites in 118 countries.
Westwood Shipping Withdraws from Port of Portland
Westwood Shipping’s final call to Oregon’s Port of Portland will be May 21, signaling the exit of the last remaining container shipper making regular calls to the port’s Terminal 6. The shipping company stated in a letter to customers that economics of a single call per month do not justify continued service at the port. The Puyallup, Wash.-based Westwood Shipping called Terminal 6 with container service since July 2010, but suspended regular calls in April 2015 following the exit of Hanjin and Hapag-Lloyd in March 2015. Westwood then returned with monthly export calls in July 2015, taking about 150 containers of hay, grass seed, dried fruits, other mixed agricultural goods and paperboard for export to Japan.
MAIB: Multiple Errors in Hoegh Osaka Grounding
A number of reporting and operational errors caused the list and grounding of Höegh Osaka on January 3, 2015 according to an investigation by the Marine Accident Investigation Branch, UK. The report into MAIB’s investigation of the listing, flooding and grounding of pure car and truck carrier Hoegh Osaka on the Bramble Bank, The Solent on 3 January 2015 is now published. In his statement to the media, Steve Clinch, The Chief Inspector of Marine Accidents stated, "The MAIB’s investigation found that Hoegh Osaka’s stability did not meet the minimum international requirements for ships proceeding to sea. The cargo loading plan had not been…
Overcapacity Catches Box Ship Industry in Undertow
All signs point to a continuation of struggling theme for containerized-ocean-freight industry into 2016 and beyond, warns a study by AlixPartners. The containerized-ocean-freight industry suffered in 2015. Its continuing financial woes accelerated because nearly all key financial indicators declined from 2014. At the heart of the industry’s problems, a persistent global supply-and-demand imbalance is to blame. All signs point to a continuation of that theme into 2016 and beyond.
Bulk shippers hit by perfect storm as global economic doldrums take toll
Off the coast of a nearly deserted island below the southern tip of Hong Kong, at least 10 massive ships that normally carry hundreds of thousands of tons of coal or iron ore lie idle near one of the world's busiest sea routes. These empty vessels paint a grim picture for the dry bulk shipping business that veterans of the industry say is grappling with an unprecedented crisis of too many ships and not enough cargoes. The hollow boats underscore the global economic doldrums that policymakers are struggling to overcome. "This is the worst we have seen in recent times.
Charleston Harbor to Be Deepened
The South Carolina Ports Authority, Lowcountry Open Land Trust, Coastal Conservation League and the Southern Environmental Law Center announced a milestone agreement for the Post-45 Harbor Deepening Project that includes a port contribution to land conservation efforts along the Cooper River Corridor. SC Ports Authority (SCPA) is partnering with Lowcountry Open Land Trust (LOLT), Coastal Conservation League (CCL) and the Southern Environmental Law Center (SELC) to form a new collaboration that invests in the conservation of the Cooper River Corridor and ensures the timely progress forward of harbor deepening. Pending final approval by the Joint Bond Review Committee later this month…
Charleston Harbor to be Deepened
Today the US Army Corps of Engineers released the Draft Integrated Feasibility Report and Environmental Impact Statement for the Post-45 Harbor Deepening project, recommending that the Charleston Harbor be deepened to 52 feet. "The Port of Charleston's ability to handle post-Panamax vessels 24 hours a day without tidal restriction is critical to the future competitiveness of our state port system," said Jim Newsome, SCPA president and CEO. "Completion of our harbor deepening project to 52 feet ensures that SCPA will continue to grow above the market average and remain a top ten port…
More Slow Boats to China Following P3 Flop: Analysis
With Maersk, MSC and CMA CGM now in damage limitation mode following their failure to get P3 agreed in China, what else can they do to cut costs? Following China’s rejection of P3 last month, Maersk, MSC and CMA CGM are under pressure to find alternative ways to cut costs. In Drewry’s view, one of these must be by reducing fuel consumption through increased slow steaming, as bunker costs account for well over half of all vessel running costs. It is not the only way, as clarified in ‘Life without P3’.
Containership Alliance P3 Abandoned: Implications Analysed
So, Maersk, MSC and CMA CGM will not be allowed to form what would have been the largest mega-alliance in the shipping industry. But what are the implications, and what is likely to happen next? Drewry Martime Research consider these questions in their latest Container Insight Weekly. China’s regulators have blocked the P3 mega-alliance between Maersk, MSC and CMA CGM on the grounds that it infringes the country’s competition laws between Asia and Europe, particularly with respect to the lines’ combined market share of 46.7%.
Profitability Rests in Carriers’ Hands
As expected the industry just about scraped over the break-even line in 2012, albeit only because of the results of a handful of leading lights. There is every chance that lines will make decent money in 2013, but only if they refrain from old habits and stick to pricing and capacity discipline. Drewy’s latest Container Forecaster report gives our headline industry operating profit estimate for 2012 of $280 million. Clearly, this is a very poor return for moving nearly 170 million teu of loaded containers…
Reliability at Ship and Box Level Down Slightly in Q3
Container service reliability across all trades fell marginally in the third quarter with the percentage of on-time ship arrivals dropping to 73.5%, down from the record high of 75.7% set in the second quarter, according to Drewry’s quarterly report Carrier Performance Insight. Drewry expects that the arrival timeliness of containerships and containers will decline again in the fourth quarter, due to the impact of hurricane Sandy and several disruptions from vessel winter programmes and blank sailings. Despite the small on-time percentage drop, the average deviation between the advertised day of arrival and the actual day of arrival for all vessel calls was unchanged quarter-on-quarter at the record low of 0.6 days.
Horizon Lines Nets Quality, Service Awards
Horizon Lines receives top honors in 'Quest for Quality' award, ranked first by customers for outstanding service. Horizon Lines, Inc., one of the nation's leading domestic ocean shipping companies, has been honored for the fourth consecutive year with Logistics Management magazine's annual Quest for Quality award, winning top honors among Ocean Carriers. The annual survey is widely regarded in the transportation and logistics industry as one of the most important measures of customer satisfaction and performance excellence. The company ranked first among the 13 domestic and international ocean carriers that qualified for this year's Quest for Quality award.
Drewry and CargoSmart Deliver New Container Key Performance Indicators
London – Drewry Maritime Research and CargoSmart Limited have entered into a cooperation agreement which will introduce a wider range of container Key Performance Indicators (KPIs) to help importers and exporters benchmark their carriers’ service levels. Drewry will incorporate the additional KPIs into a new quarterly report, the details of which will be announced later this month. “The new container KPIs will add value, as they will measure performance at the box-level, which is more important for shippers than at the ship-level,” said Philip Damas, director at Drewry. Drewry has chosen CargoSmart for its comprehensive, high quality data, which is necessary for KPIs to be effective for decision making.
Container Forecaster: Industry Conditions "Very Challenging"
According to Container Forecaster, the container industry is in dire need of a correction on the supply side and even the realization of a decent peak season demand surge this summer will not provide enough momentum to lift severely eroded freight rates in the key east-west trades. Container operators will find it a very challenging environment this year in which to make money, but there is a major difference between this year and the recession ravaged 2009. We are forecasting an 8.1% growth in global container traffic for 2011 and so, other than rising fuel costs, responsibility for the inability to run their business models profitably can only be laid at the feet of the carriers themselves.