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.
IMO on Distress and Safety at Sea
Seafarers depend on a robust distress and safety system when life is in danger at sea. This week’s meeting of the Sub-Committee on Navigation, Communications and Search and Rescue (19-23 February) will be focusing on core areas of International Maritime Organization (IMO)’s work relating to safety at sea. The meeting will review progress in its ongoing work to modernize the Global Maritime Distress and Safety system (GMDSS). The GMDSS was adopted in 1988 to ensure full integration…
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).
Rotterdam Port in Container Shipping Partnership with Barge Terminal Tilburg
Barge Terminal Tilburg, Combined Cargo Terminals, Moerdijk Container Terminals and Danser Group have joined forces, agreeing to combine cargo along the route between Tilburg, Moerdijk and the port of Rotterdam. This allows them to cut back on the number of vessels required – resulting in less congestion during handling in the port of Rotterdam. The collaboration between these private parties and Rotterdam’s deep sea terminals in the ‘West-Brabant Corridor’ is the first concrete…
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…
Maersk Profit Miss, Outlook Puts Shipping in Spotlight
Maersk management hints at hitting top of 2018 EBITDA range. A.P. Moller-Maersk's move to focus on transport and jettison oil was tested on Friday as the world's largest container shipping firm missed profit forecasts and gave what analysts saw as a conservative outlook. Shipping, which has been hit by years of overcapacity and slow economic growth, saw early signs of a turnaround in early 2017, but freight rates fell in the second half. "I'm still very optimistic on the fundamentals of the global container shipping industry…
Linescape’s Ocean Container Search Engine
Linescape announced the launch of its free, independent search engine for finding and comparing routes and schedules for shipping ocean containers (www.linescape.com). Linescape brings to users an overview of the routes and schedules of the world's carriers, of all sizes, thus giving shippers and forwarders the freedom and ease to find the carrier with the lowest cost or the best schedule for any particular shipment. Linescape's search engine leverages Web 2.0 technology to simplify sorting through 6 million voyages to 3,000 ports on over 100 shipping lines, and with more added each week. In today's economic climate, optimized logistics and supply chain functionality is critical for success.
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.
Germany and Greece: Worst Vessels Dumpers
As in 2016, Germany and Greece top the list of country dumpers in 2017, according to new data released today by the NGO Shipbreaking Platform. German owners, including banks and ship funds, beached 50 vessels out of a total of 53 sold for demolition. Greek owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2017: 51 ships in total. Since the Platform’s first compilation of data in 2009, Greek shipping companies have unceasingly topped the list of owners that opt for dirty and dangerous shipbreaking.
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.
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…
Maersk Line, RUSAL Partner Long-term
Container shipper Maersk Line has signed an agreement of intent with global aluminum producer RUSAL to cooperate within cargo transportation for the long term. Under the agreement, RUSAL and Maersk Line will cooperate with regards to transport of RUSAL’s products, particularly aluminum and alloys. The estimated cargo volume of the agreement may reach 10,000 containers (TEU) per year. The agreement is valid for three years and includes options for further extension. “The signing of this agreement is a confirmation of the mutual intentions to build a long-term strategic partnership between RUSAL and Maersk Line. The aim of the agreement is the joint search for the most optimal logistic solutions aimed at optimizing costs for both parties,” said Vladislav Soloviev, RUSAL CEO.
Containers Lost in Rough Seas
The search is on for 12 containers swept overboard from motor vessel Manoa in heavy weather and seas late Friday evening. An environmental contractor has been hired by the shipper to recover discharged debris and containers, which are empty with the exception of miscellaneous packing material, according to the U.S. Coast guard (USCG). The environmental contractor is in the process of removing the container and miscellaneous packing contents from one of the containers that came ashore at Baker Beach. The Coast Guard has issued a safety alert urging mariners to exercise caution and is working with National Oceanic and Atmospheric Administration (NOAA)…
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…
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%.
CargoSmart Launches Big Schedules Search Engine
CargoSmart Limited, a global shipment management software solutions provider that leverages big data for greater visibility and benchmarking, has announced Big Schedules, a new sailing schedule search platform that helps shippers and logistics service providers manage and visualize their ocean routes. Big Schedules actively sources ocean carriers’ published sailing schedules and live vessel location data in order to provide personalized search results for faster and greater insights to improve their shipment planning. The new, free sailing schedule search engine is available on the website.
Horizon Lines’ Crew Commended by Congress
Stressing that "ordinary people can do extraordinary good if given a chance," U. S. Representative Virginia Foxx, R-N.C., on the floor of the U. S. Congress recently commended the bravery of the crew of the Horizon Falcon containership operated by Horizon Lines, Inc. Rep. Falcon, a 722-foot containership. Rep. The Horizon Falcon was the first vessel to arrive on the scene after the log ship's crew alerted the Coast Guard. Horizon Lines is a member of AMVER, a voluntary program sponsored by US Coast Guard for mutual vessel assistance and rescue. "When the Horizon Falcon arrived, it found survivors in the water surrounded by an oil slick and debris from the sunken ship. With the U.S.
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…
Container Fleets & Demand Growing in Step -BIMCO
For 2018, the world containership fleet is expected to grow in step with global demand, according to BIMCO’s latest container shipping market outlook. Having experienced falling freight rates from August to year-end in 2017, most liner companies were successful in pushing rates higher in early January 2018. Most of them managed to hold onto most of the gains they achieved, considering October and November were challenging in terms of very low demand growth. The weak demand came from the Far East to Europe trade, and on the Intra-Asian transport.
Pilot Lost off Columbia River Bar
The Coast Guard is searching for a Columbia River bar pilot who fell from a container ship near Astoria, Ore., Monday evening. The pilot fell overboard, while climbing down the ladder from the 558-foot merchant vessel Dry Beam to a Columbia River pilot vessel. The Coast Guard launched two 47-foot motor lifeboats from Coast Guard Station Cape Disappointment, Wash., and an HH-60 Jayhawk helicopter from Air Station Astoria, shortly after receiving the report Monday night. The 47-foot motor lifeboats searched for an hour before returning to the station due to severe weather conditions. The Jayhawk searched for the man until 12:30 a.m., before they too had to return due to heavy rain and fog that limited visibility to less than 100 feet.
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)…
Geest North Sea Line to Introduce New Ships
Geest North Sea Line will introduce two 804TEU vessels into service in the course of 2004. Intermodal Transport & Logistics 2002 (ITL2002) in Rotterdam. been used in the North Sea shipping trades before. intermodal transport. and the UK East Coast. capability, usually on deck. tank container traffic required us to look afresh at ship design. associated. shipbuilders. between - in an optimal way.
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.