Posted at 05:03 PM in Breaking news, Caribbean Basin ports, Latin America ports, Logistics, Southeast Ports, US Maritime Highway | Permalink | Comments (0)
By: AJOT | May 06 2016 at 07:17 AM | Breakbulk & Projects
Kingston, Jamaica - To better serve the diverse needs of growers and exporters across Jamaica, Crowley is teaming up with subsidiary SeaFreight, and on-island shipping agent Lannaman & Morris, to hold an educational breakfast forum on Thursday, May 12 at 8:00 a.m. at Terra Nova All Suites Hotel in Kingston.
The event will feature a presentation from Christopher Prendergast, supervisor/agricultural specialist, United States Department of Agriculture Jamaica Preclearance Program, regarding procedures related to northbound shipments of agricultural goods to the U.S. Those interested in attending this free event are asked to RSVP to Stacia Nosworthy-Cunningham at 876-923-5541 or [email protected].
Additionally, representatives of Crowley companies Customized Brokers, which specializes in customs clearance of all U.S. imports; CrowleyFresh, which offers cold-chain storage and logistics; and SeaFreight, which offers scalable liner and logistics solutions in the Caribbean and Central America, will be on-hand to discuss the full complement of the company’s complete supply chain solutions.
“We at Crowley are uniquely positioned to add value to our customers’ supply chains by both increasing the velocity of those supply chains with our integrated services, and in doing so, reducing their total landed cost,” said Mark Kearns, director, logistics operations. “This forum in Jamaica and other discussions like it, with both current and potential customers, is all about that proven value proposition.”
Posted at 01:28 PM in Breaking news, Caribbean Basin ports, Caribbean Maritime Exchange, Current Events, Customs and BP, Export opportunities, Southeast Ports, Trade | Permalink | Comments (0)
Posted at 11:26 AM in Breaking news, Navigation hazards, Southeast Ports, Trade | Permalink | Comments (0)
RWG
By Mike Wackett 18/04/2016
According to the latest data collated by Dynaliners, there are 37 ultra-large container vessels (ULCVs) of over 18,000 teu in operation, with a staggering 72 more of these mega-ULCVs on order for delivery by 2020.
Including vessels still to be received, Dynaliners notes that Maersk Line will continue to head the ULCV league table with 31 vessels of 18,000 teu or over, followed by the newly-merged China Lines at 22 and MSC in third spot with 20.
With the exception of Asia to the US west coast, where CMA CGM is the only carrier so far to deploy 18,000 teu ships, the 100-plus mega-vessels will be restricted to operating between ports in Asia and Europe.
Already challenged by the current fleet of ULCVs, container ports will need to up their game again to cope with the ships that will be introduced into Asia-Europe loops over the next few years.
Speaking at the Global Liner Shipping Conference in London last week, APM Terminals chief executive Kim Fejfer outlined the challenges facing port operators from the new breed of mega-containership. He said the need for change in the port sector “has been more pronounced in the past two years than in the past twenty”.
“A decade ago, a large terminal with 900 metres of quay could handle three or more vessels simultaneously,” said Mr Fejfer, “but now, with vessels of 400 metres in length, the same terminal, even with reinforced quayside, larger STS [ship-to-shore] cranes and deeper depth, can only accommodate two ultra-large vessels at once to handle the same number of container moves.”
He argued that the potential 50% jump in container exchanges from handling 13,000 teu ULCVs to the largest 20,000 teu behemoths meant “considerably less flexibility for container terminals”.
“Now there is a need for more yard space, larger gates and more manning to handle the volume peaks in the terminal infrastructure. These result in additional costs to the terminal operator which the shipping lines are not ready to pay,” he said.
Elsewhere, the debate on mega-ships continues. In his latest blog, Economies of scale; a defunct shipping model?, OECD ports and shipping analyst Olaf Merk questions whether anybody – carriers, shippers or ports – is actually benefiting from the introduction of the ULCVs.
He notes that almost every ocean carrier has ordered the mega-ships to tap into the ‘economies of scale’ paradigm, but believes this has fuelled fleet overcapacity and depressed freight rates.
“There is not enough cargo, so container ships sail half-empty and lose money,” said Mr Merk. “So much for their projected cost savings.”
Accepting that shippers are ‘happy’ with low rates, Mr Merk notes that they have “traditionally spread risk by using different ships, different lines and different ports”.
“They could now find their cargo on one mega-ship, operated by one mega-alliance, calling at just a few mega-ports,” he cautions adding that this would be a “very risky cocktail” for shippers, with a delay or at worst an accident causing “mega-consequences”.
Noting also that mega-ships “can only be profitable if they are handled very quickly at ports”, Mr Merk is in agreement with the APMT executive in that container ports face “huge challenges” from the mega-ships bringing cargo peaks “that lower the return on investment”.
Posted at 11:45 AM in Guest Opinion, Latin America ports, Southeast Ports, Trade | Permalink | Comments (0)
Idled global container capacity has reached a record high of 1.57m teu, according to the latest data from Alphaliner.
And one-third of the laid-up tonnage consists of unemployed containerships of 7,500-19,000 teu.
The 352 laid-up ships, as of 11 March, account for 7.8% of the global container vessel fleet – a number expected to grow with 1.25m teu of capacity scheduled for delivery this year.
After deductions for vessel scrapping, Alphaliner calculates that the newbuildings will add a full-year fleet growth of 4.3%. This compares with estimated demand growth of just 1.8%.
Continued weakness on the Asia-Europe, Asia-Latin America and Asia-West Africa trades has left container lines with a number of redundant ships.
Alphaliner noted that some 30 ships of 9,000-14,000 teu had become surplus following the axing of a series of Asia-North Europe loops by the four east-west alliance groups, with the latest network rationalisation announced by the CKYHE alliance this morning.
Owners have two lay-up options – hot or cold. In the case of the former, the vessel will wait at anchor but remain fully crewed and able to be redeployed almost immediately. Vessels in cold lay-up retain a skeleton crew and only run essential systems. These could take up to three months to reactivate, and still involves significant costs.
As a result, ocean carriers look first to see if they can cascade surplus ships onto other trades whilst also off-hiring any chartered smaller tonnage deployed on smaller routes as early as possible.
“Carriers are starting to shift their surplus ships out of these (weak) sectors, creating havoc on other trades,” said Alphaliner.
Meanwhile, continuing low bunker fuel costs have encouraged carriers to divert some ships around the Cape of Good Hope, instead of through the Suez and Panama canals, thus saving on canal transit tolls and absorbing around 100,000 teu of vessel capacity across 12 liner services, estimated Alphaliner.
Unsurprisingly, the overcapacity crisis has put further pressure on charter rates and obliged containership owners to instruct brokers to be flexible with terms and conditions, including offering free positioning.
And according to London-headquartered shipbroker Braemar ACM, few ocean carriers are prepared to put any firm periods on charters in sectors where there is an abundant choice of ships. It said that “flexi-period” terms, with only the daily hire fixed was now normal with most liner companies.
The charter market is experiencing “further misery”, said Alphaliner, and would “remain in the doldrums” as long as the supply-demand gap remained.
Meanwhile, recent fixtures reveal how far charter rates for larger vessels have plummeted.
Hapag-Lloyd was recorded fixing an 8,000 teu ship recently for two months trading between Asia and the west coast of South America at just $8,000 per day with flexible options.
While the overcapacity crisis in the larger sizes is continuing to drag down daily hire rates to new lows, the dearth of newbuilds in recent years of the feeder sizes has kept the sector relatively healthy, providing a silver lining for hard-pressed containership owners.
Hamburg Sud recently fixed a 1,100 teu ship for 16-18 months to deploy on its US west coast to South Pacific service at $9,600 per day.
Posted at 11:12 AM in Breaking news, Logistics, Southeast Ports, Trade | Permalink | Comments (0)
Container shipping shake-up as CMA CGM, China Cosco, OOCL and Evergreen plan new alliance
Newly-merged Chinese ocean carriers Cosco and CSCL, together with Evergreen, OOCL and CMA CGM are set to form a new east-west mega-alliance.
According to Alphaliner, the new grouping would challenge the market dominance of the Maersk and MSC 2M vessel-sharing agreement.
The plans, apparently discussed at high-level meetings last month, would “radically alter the currently liner shipping landscape”. Of the four east-west alliances, only the 2M (Maersk and MSC) would remain unchanged.
OOCL is a member of the G6; Evergreen and Cosco are part of the CKYHE; and CMA CGM and CSCL are members of the O3.
The 2M alliance operates over 2.1m teu of capacity on across the three main east-west trades, followed closely by the CKYHE offering of just over 2m teu, the G6’s 1.8m teu and the O3’s 1.5m teu.
CMA CGM has already stated its intention to pull APL out of the G6 alliance once it completes its acquisition from NOL in the second half of this year, and Alphaliner suggests that the financial distress of the two South Korean carriers, Hyundai and Hanjin Shipping in the CKYHE alliance, could be the catalyst for a new game of musical chairs in liner shipping alliances.
It said: “The potential insolvency of two Korean carriers and any potential restructuring arising from an (enforced) merger could undermine the service networks of the CKYHE and G6.”
The plan for the new grouping also appears to be a move by the stronger players to distance themselves from the rest and, at the same time, prevent the 2M partners from becoming totally dominant on some routes.
The “CCEO” (CMA CGM, Cosco, Evergreen and OOCL) would potentially be larger in capacity terms than the 2M, and Alphaliner said the move could leave UASC (O3); Hapag-Lloyd, NYK and MOL (G6); and K Line andYang Ming (CKYHE) without the necessary partners to enable them to offer a full range of services.
These carriers would then seem to have little option but to form a new alliance in order to compete.
“Various partnership scenarios are being contemplated and, given the prevailing uncertainties, the carriers are keeping all options open at this stage, “said Alphaliner.
However, with the ink barely dry on a previous round of alliance changes, ports and service providers are set to again face another period of uncertainty. And shippers face a similar set of unknowns regarding potential network changes and whether contracts with carriers would be honoured if capacity becomes tighter.
Meanwhile, it is understood that relationships have become strained between some alliance partners over the past six months, as financial results have deteriorated on many trades and pressure from shareholders to improve results has intensified.
One source told The Loadstar recently that the decision-making process in one particular alliance on the blanking of voyages last year had become “extremely heated”.
Posted at 10:45 AM in Breaking news, Caribbean Basin ports, Current Events, Southeast Ports, Trade | Permalink | Comments (0)
NOVEMBER 25, 2015 — Indonesia yesterday became the 46th state to ratify IMO's Ballast Water Management Convention. Once Indonesia's gross tonnage data are verified, the convention will be set to enter into force worldwide from November 24, 2016.
The International Chamber of Shipping (ICS) says that the fixing of a definite implementation dategives shipowners some of the certainty needed to make important decisions about whether to refit the new mandatory treatment equipment or otherwise to start sending ships for early recycling.
However, IMO has to finalize the much needed revision of its type approval guidelines for Ballast Water Treatment Systems (BWTS).
The International Chamber of Shipping says that this revision is needed "as soon as possible, in order to ensure that shipowners can have absolute confidence that the expensive equipment they will soon have to install will be effective in treating ballast water conditions normally encountered during worldwide operations and be regarded as fully compliant during Port State Control inspections."
In other words, the IMO Type Approval process currently in place doesn't give absolute confidence that an IMO approved system will actually work. That, of course, is why the IMO approvals of BWTS have never been taken at their face value by the U.S., which has its own, tougher, approval system in place.
The International Chamber of Shipping has never been very happy about that and says that entry into force of the new IMO regime "does not resolve the extreme difficulties that still exist in the United States.
There is still great uncertainty with respect to the more stringent United States approval regime for treatment equipment, which started to be enforced in January 2014 (the U.S. not being a Party to the IMO Convention).
"The U.S. regulations require all ships that discharge ballast water in U.S. waters to use a treatment system approved by the Coast Guard. However, because no systems have yet been approved, ships already required to comply with the U.S. regulations have either been granted extensions to the dates for fitting the required treatment systems or else permitted to install a USCG accepted Alternate Management System (AMS), in practice a system type-approved in accordance with the current IMO Guidelines.
"However, an AMS will only be accepted for operation for five years, after which time a fully USCG approved system must be installed. But the USCG does not guarantee that an AMS will be subsequently granted full approval.
Hence shipowners that may have installed an AMS in good faith, at a cost of between $1 million -5 million per ship, might then have to replace the system completely after only five years.
This is a particular concern for operators that have installed ultra-violet (UV) systems. "There are over 50 treatment systems approved under the current IMO regime, but worryingly fewer than 20 manufacturers have so far indicated their intent to submit their systems for U.S. approval.
The conflicting IMO and U.S. requirements, when combined with the complete lack of systems fully approved by the USCG, could produce an impossible situation in which some ships might not be able to operate in U.S. waters when the IMO Convention enters in force."
Posted at 01:53 PM in Breaking news, Caribbean Basin ports, Port of Miami River, Science, Southeast Ports | Permalink | Comments (0)
Posted at 02:00 PM in Breaking news, Latin America ports, Logistics, Southeast Ports, Trade, Travel | Permalink | Comments (0)
By Alex Lennane in Miami
11.05.2015 •
The air cargo community, led by airports, are taking matters into their own hands to encourage greater use of the mode by pharma shippers.
Yesterday, Miami airport became the second globally, and the first in the Americas, to achieve CEIV pharma certification. In a noisy press event at Air and Sea Cargo Americas in Miami, the airport noted huge growth in its pharma business and its plans to become a leading global pharma hub.
The state of Florida sponsored the certification, hoping to catch a share of the $300bn pharma market. The airport last year saw $3.3bn-worth of pharma pass through the airport – 80% growth since 2010.
The pharmaceuticals business in Latin America is growing, with new markets developing, in particular in Colombia.
“Cargo was flat globally in 2014, and we grew,” said Emilio Gonzalez, CEO of Miami-Dade Aviation Department. “I think we’ll do just fine this year but we have to move beyond flowers and fish. We have indentified the pharma business, and we are turning into the perfect transhipment centre.”
Steven Polmans, cargo head at Brussels Airport, the first to be certified, urged more airports to become CEIV certified.
“We didn’t do it for competitive advantage. We want to grow the whole pie,” he said, speaking on the sidelines of the event.
“We see that shippers are getting more involved in the logistics supply chain, including which airline or airport to choose. We want pharma shippers to see that we have a high-quality service for pharmaceuticals to the benefit of the whole air cargo industry.”
Global Distribution Practice certification varies around the world and is mostly intended for warehousing and storage, while CEIV, which is IATA-validated, is a standardised programme, focused specifically on air cargo logistics.
“GDP is only legislation for basic requirements. It doesn’t audit the pharmaceutical chain. CEIV has everything GDP requires, but so much more.”
While the necessary training and infrastructure can be costly – making it uneconomic for airports with naturally small pharma flows – those with existing flows and training programmes would find it better value. Re-tests are required every three years.
More CEIV companies are expected to be announced in coming months.
“It started slowly but more large companies are coming on board, and it’s picking up speed. Pharma shippers are pleased with it and it will grow the whole air cargo pie,” added Mr Polmans.
He said cargo volumes at Brussels had shot up since it became certified. “Shippers were tired of air cargo – there was too much mishandling.”
One pharma shipper had found that 63% of its shipments had seen a temperature variation over the summer months.”That’s just gambling,” said Mr Polmans.
IATA’s regional vice president Americas said that pharma shipment damages amounted to $12bn last year.
“This is unacceptable for a $300bn market. CEIV improves the quality and reduces the losses from mishandled goods.”
Mr Polmans added: “We are a very fragmented industry and that’s part of the reason we are not making sufficient progress. I want to be an airport, and a person, that’s acting for the benefit of air cargo. I don’t want to be commenting from the stadium – I want to be the coach, and have some influence over the game.”
Posted at 10:29 AM in Air Cargo News, Breaking news, Customs and BP, Export opportunities, Logistics, Perishables, Science, Southeast Ports, Trade | Permalink | Comments (0)
11/02/2015 09:00 am (JACKSONVILLE, Fla.; Nov. 2, 2015) – Crowley Maritime Corporation’s liner services and logistics groups completed a purchase sale agreement today to acquire Miami-based SeaFreight Line, SeaFreight Agencies, and SeaPack, liner and logistics companies that serve the Caribbean and parts of Central and South America. “This acquisition represents a great opportunity for Crowley to grow its footprint and capabilities in the Caribbean Basin,” said Steve Collar, Crowley senior vice president and general manager, international liner services. “SeaFreight offers about a 50-50 mix of markets that Crowley is currently in, as well as markets in which Crowley doesn’t currently participate. Bringing the company into the Crowley fold will allow us to better utilize assets in our current markets and to grow into new markets.” “Like Crowley, SeaFreight is a privately-held company with a high-integrity, high-performance culture,” Collar continued. “We look forward to working together with SeaFreight’s customers and employees in a deliberate and thoughtful manner to set our path for future growth and success. SeaFreight’s strong business model fits perfectly with Crowley’s strategic growth plans.” SeaFreight President Roland Malins-Smith said, “Many of us recognize that our industry is undergoing fundamental change which emphasizes the importance of scale and the wisdom of consolidation. In executing our agreement with Crowley, SeaFreight has chosen to work with a like-minded group which shares our commitment to service excellence, integrity and focus on the wider Caribbean. We believe that this move is in the best interest of our customers and our employees.” The newly combined services will provide its customers comprehensive ocean freight and logistics services throughout the Caribbean Basin. Nineteen islands in the eastern and western Caribbean, Central America, and the South America countries of Guyana and Suriname will benefit from continuing focus on service and an extensive network of connectivity allowing customers to dependably get their products to the markets they serve. Jacksonville-based Crowley Holdings Inc., a holding company of the 123-year-old Crowley Maritime Corporation, is a privately-held family- and employee-owned company. The company provides marine solutions, energy and logistics services in domestic and international markets through several business lines including: Puerto Rico, Caribbean and Central America Liner Services; Logistics Services, Petroleum Services, Marine Services and Technical Services. Also offered within these business segments are: offshore services, such as contract towing and transportation; ship assist and tanker escort; marine project design, engineering and management; salvage and emergency response through its 50 percent ownership of Ardent; domestic and international vessel management and crewing; vessel construction and naval architecture through its Jensen Maritime subsidiary; government services, and petroleum and chemical transportation, distribution and sales. Additional information about Crowley, its subsidiaries and business units may be found on the Internet at http://www.crowley.com.
Posted at 10:04 AM in Caribbean Basin ports, Caribbean Maritime Exchange, Follow up, Latin America ports, Logistics, Southeast Ports, Trade | Permalink | Comments (0)