42 minute read
DILIGENT DELEGATES: SHIPS’ AGENTS
Diligent delegates
Ships’ Agents
Jay Venter
Inchcape’s information network fuels port efficiency for dry bulk owners amid pandemic challenges
The availability and accuracy of port data has been vital for voyage decision-making by dry cargo shipowners to help overcome port congestion, crew logistics and other challenges due to the pandemic that have hit the flow of maritime trade, according to Inchcape Shipping Services.
The port agency specialist has been able to deliver critical data on port line-ups and berth availability to facilitate timely vessel arrivals and expedite port turnarounds by leveraging the resources of its extensive global network, says Inchcape’s Global Sector Head for Dry Bulk, Elyse Ong.
This proved particularly important with the resurgence in the dry bulk market last year as countries rebooted industrial activity after lockdowns, which resulted in a dramatic increase in vessel traffic.
“If a ship cannot berth on arrival, this can affect demurrage and the charter party. So knowledge of berth availability is paramount for the owner, as well as information on port line-ups and local weather conditions that can lead to delays,” Ong says.
DATA TRANSPARENCY ISSUE Furthermore, key documentation — such as the statement of facts and notice of readiness — also need to be provided with great accuracy.
But Ong points out that such data transparency can sometimes be difficult due to local dynamics that affect dry bulkintensive ports in some parts of the world. “So this is where our local presence, expertize and standardized way of working are an advantage,” she says.
Inchcape offices around the world are feeding constantly updated port data into its World of Ports software platform that is accessible for ship operators wherever their vessels are located.
Ong explains the flow of accurate information is essential to voyage management as it enables Inchcape, for example, to advise operators on adjusting vessel speeds so they can make docking slots, based on its oversight of line-ups at ports where it is ‘first come, first served’.
“We are monitoring the status of different ports and communicating with the customer to maximize berthing opportunities, which can translate into savings in fuel costs and port fees by optimizing port turnarounds and voyage times,” she says.
CREWING SOLUTIONS Crew changes have been a particular challenge during the pandemic given lockdown restrictions in some countries and charter clauses that dictate a maximum duration for the same crew to remain onboard a vessel, with the risk of financial penalties for shipowners.
“Everyone has been looking at crew changes as operators, as well as traders and charterers, are affected if a vessel is delayed. Our web page with Covid-19 updates had 177,000 visits last year,” Ong says.
“We have had frantic calls from ship operators asking us where they can drop off crews when time has been of the essence. This is both a financial and humanitarian issue where our network has been of great value.”
PORT OPTIMIZATION The World of Ports system also facilitates vessel compatibility checks to determine whether destination port terminals are suitable for a particular ship that is not plying a fixed route.
“Traders and charterers have been getting more creative about where they can ship cargoes during the pandemic and our port agency network has played an important role in this by providing key data to help them think out of the box,” Ong says.
For vessels traversing the same ports, Inchcape analyses key performance indicators to tackle efficiency gaps to achieve port optimization.
It can also provide end-to-end voyage
management through its agents at the origin and destination ports for seamless handover of the ship.
“Dedicated account managers disseminate working instructions across our offices so the client has consistent standards of service wherever the vessel is trading,” Ong says.
DRY BULK SERVICES Inchcape provides dry bulk services under three main umbrellas — cargo agency, protective agency and bunkers — and handles the full spectrum of cargoes from iron ore, coal and breakbulk to woodchips, ammonia nitrate and fertilizers.
Its services include canal transits, such as for the Panama and Suez canals, and inhouse marine surveys covering hold inspection, bunker quantity, forensic bunker, on/off hire, condition, trimming, project cargo and draught, subject to location.
The company has had specialist dry cargo teams based in China, Japan and South Korea for the past 15 years, along with specialists at key locations across the world as part of its expanding global port agency workforce that presently numbers around 2,700 personnel.
Handling dry bulk requires labourintensive operations at ports, including the need to clean cargo holds, and the pandemic has “added another layer of complication” due to manpower issues to carry out such work, according to Ong.
Inchcape has therefore adopted new technology to tackle such issues with the use of drones to carry out hold inspections and thereby mitigate safety risks for personnel. It has also developed a gadget to conduct remote draft surveys.
RISK MITIGATION Ong says the company’s dry cargo work is guided by “a very holistic and customized approach” that includes strict vetting of vendors as part of port agency services in line with global QHSE regulations for risk mitigation in the areas of compliance and governance.
Its procurement strategy is geared to achieving cost savings in areas such as stevedoring, towage and crane hire. “Keeping control of expenses in the PDA is important as port costs are a critical factor in finalizing a charter deal between the shipowner and trader or charterer,” she explains.
This also extends to reliable fund management in Inchcape’s role as protective agent to remit funds for shipowners.
The dry bulk market is currently in a seasonal lull with charterers remaining cautious about fixing long term freight due to pandemic concerns, but Ong expects activity to pick up again later this year with the anticipated easing of restrictions.
“Inchcape’s regional teams have had to adapt to new ways of working during the pandemic by redeploying backroom resources to support our port agents, while staying ahead of restrictions and protocols through intra-office communication, and our network remains strong,” she says.
Dry bulk at San Antonio.
Since its inception the Pak Shaheen Group has attained a vanguard position as one of Pakistan’s leading integrated multi-service business conglomerates.
Successors to H. Bird & Company, U.K., the Group can trace its origins as ship agent from Karachi a little after Pakistan’s independence (1947). The successive years saw the Group sail on a successful voyage through sheer dint of hard work and dedicated efforts. In a journey that has spanned over 70 years; the Group has represented major shipping lines like APL and CMA-CGM (France) Croatia Lines, Cronos and Gelco Cti/Genstar and is currently representing Samudera Shipping Lines (Singapore).
Today it finds a nationwide presence in all major cities of Pakistan and is sole agent to world renowned companies like Kalmar (Sweden) and is also in Joint Venture partnership with Gulftainer (UAE) a worldwide port operator. Its eight Group Companies integrate to form a vehicle for economic growth, global integration, infrastructure development and promotion of industrial and commercial activity.
Due to his vital and meaningful contributions to the shipping industry and his ability to find solutions for multiple issues faced by ships agents, Abdullah Farrukh, who is leading the Pak Shaheen Group, was elected as Chairman of All Pakistan Shipping Association for the year 2021–2022. This Association, which ranks as one of the top associations in Pakistan, provides solutions to shipping fraternity and protects and promotes shipping and related trade in Karachi, Port Qasim and Gawadar, the three ports of Pakistan.
The ship agents in Pakistan who mainly represent multinational and major shipping companies play a vital role in managing the dry bulk cargo imports which form the major components of imports in Pakistan. During FY 2021, out of a total import volume of 36,469 metric tonnes, the share of total dry cargo was 24,670 tonnes which is an increase of 36.53% as compared to FY2020. The major items of dry bulk cargo imported in Pakistan are crude oil, HSD, LNG, coal and edibles like wheat, sugar, and fertilizers etc.
With the advent of CPEC in Pakistan, this corridor would act as a bridge between South Asia, Central Asia, Europe, Middle East and Africa, hence, rendering Pakistan a strong player on the global trade scene. This corridor will emerge as a major transshipment hub for dry bulk cargo and its transportation to land locked countries of Central Asia and Afghanistan.
Pak Shaheen Group has played an important role in handling bulk cargo imports. One of its Group Companies — namely Trans World Cargo Dispatch Company — is engaged in break bulk cargoes for lines and ship owners. The Company, in the past, held the distinction of handling one-third of the entire wheat imports into Pakistan which is indeed an impressive achievement.
Besides wheat, bulk imports of sugar and black matpe have also been handled by this company of Pak Shaheen Group. The Ministry of Food and Agriculture, Government of Pakistan, has also remained one of its prime customers.
www.iss-shipping.com
A SEAMLESSLY CONNECTED DRY BULK EXPERIENCE
With extensive coverage from 240 local offices across the globe.
Inchcape provides the highest level of dry bulk handling, and with years of experience, we can anticipate and negate risk while optimising port and voyage procedure. Our agents operate with the utmost consistency in safety and compliance, from pre-fixture port cost calculations to accurate daily cargo operations updates.
Hudig & Veder is a global logistic partner for smart transportation, warehousing and handling services. Its mission: moving its customer’s business forward. From minerals to plane engines, the company always finds the smartest way to get any cargo anywhere in the world, powered by more than 225 years of Dutch cleverness.
Over the past centuries, Hudig & Veder has grown to a full-service logistics service provider. By combining different business departments and disciplines within the Hudig & Veder Group it is keen on creating an ultimate logistical plan for its customers. Between the company’s departments Agencies, Bulk, Chartering and Projects an optimal collaboration is created so it can offer full service at its highest quality which leads to a sustainable, cost-effective and uncluttered logistical process — a process that is created to unburden its client. This collaboration is Hudig & Veder’s ABC-concept, a one-stop-shop for its customers.
HUDIG & VEDER AGENCIES Thanks to its full range of expertises and services, Hudig & Veder Agencies covers and connects all chains of the customer’s supply. This way it navigates (project)cargo fluently all the way to its destination, taking care of all aspects of the expedition. Including insurance, customs clearance, and product control. As an international shipping agent, carrier and as a guide, Hudig & Veder Agencies keeps full view on every tonne, every mile and every dollar along the way.
HUDIG & VEDER BULK With its years and years of experience in the bulk sector, Hudig & Veder can offer competitive and high quality handling of all dry bulk and breakbulk materials within the ARAG-range, France and Germany.
Its highly skilled and dedicated team is fully aware of all restrictions and limitations that apply to each individual terminal. Therefore, Hudig & Veder Bulk always find the best solution for handling any cargo. Whether it needs to be stored at a terminal, transshipped directly board to board or needs to find its way to an inland location, we will take good care of it.
HUDIG & VEDER CHARTERING Hudig & Veder went into business more than 225 years ago as a broker company, bringing ship and cargo together to ensure trustworthy transport by sea. Nowadays, it has expanded its activities with fast, flexible and reliable shipping solutions. Focusing on any type of bulk commodity, breakbulk and project cargo. Based on a foundation of knowledge, decades of experience and a dedicated staff, Hudig & Veder Chartering can offer complete and tailor-made logistic solutions.
HUDIG & VEDER PROJECTS Hudig & Veder Forwarding provides worldwide tailor made logistics services for project and break-bulk cargoes. With dedicated contact persons and a no nonsense policy, it ensures that logistical needs are met. It can serve globally with its international experts network. Hudig & Veder Forwarding’s core competence is coordinating the complete international transport from production location up to the final inland location at destination. Multimodal transports are performed by road, air and sea. The company covers the total logistic supply chain with a complete package of services, such as customs services at origin and destination, storage, insurance and cargo survey’s.
ABOUT HUDIG & VEDER Hudig & Veder went into business more than 225 years ago as a broker company, bringing ship and cargo together to ensure trustworthy transport by sea. Nowadays, it has expanded its activities with fast, flexible and reliable shipping solutions. Focusing on any type of bulk commodity, breakbulk and project cargo. In 2020, Hudig & Veder joined forces with Hartel Shipping. Due the this merger, the Hudig & Veder/Hartel fleet now consists of modern general cargo vessels ranging in DWCC from 2,400–3,300 tonnes.
These vessels are mainly active in the part cargo business and sail around the European continent from the Black Sea to the Baltic Sea. Besides its own ships, the company also has its own dry bulk storage in the port of Rotterdam and is active in bulk logistics from storage to transhipment, and barging to road or sea transport.
Hudig & Veder is furthermore active as a broker for many well-known companies, is active as a forwarder and provides agencies in Dutch ports.
With a history of over 70 years which began on 28 December 1950, MAG is one of the oldest enterprises in the transport and logistics sector operating in the Polish market.
1950, DECEMBER 28 A newly established state-owned ship’ agency company called Morska Agencja in Gdynia as a result of reorganization of a number of state-owned and private companies in Poland. 1951, JANUARY 1 Morska Agencja in Gdynia starts its activity.
1954–1963 MAG takes over the entire service of ships of domestic shipowners — Polish Ocean Lines and Polish Maritime Shipping, as well as units remaining in the chartered PolishChinese Ship Association – Chipolbrok.
1970 MAG represents 64 foreign regular shipping lines and 48 foreign insurance clubs.
1991 Implementations of the first successful privatizations of a state-owned company in Poland. Morska Agencja in Gdynia becomes an employee-owned company and changes its name to Morska Agencja Gdynia.
1994 Inception of an office in London, handling the acquisition and recruitment of Polish crews on ships of foreign shipowners.
EARLY 2000S Morska Agencja Gdynia besides traditional ship agency services, freight and brokerage services constantly expands the range of its activities by further transport and logistics, customs, warehousing and rail and road forwarding services.
2005 The Management Board decides to purchase land in the Port of Darlowo, where the MAG Terminal is built.
In the following years, MAG is constantly developing new branches of
activity and building a network of offices in Poland in Gdansk, Gdynia, Szczecin, Swinoujscie, Darlowo and in Leba, Ustka, Elblag, Wladysławowo, Kolobrzeg.
WIDE RANGE OF ACTIVITIES AT A GLANCE Ship agency and freight — MAG provides comprehensive ship agency and freight services, technical and commercial brokerage and advice on fleet operations, maritime transport and cargo carriage.
Beyond traditional ship agency services detailed below, MAG is also engaged in other different logistics port services such as: supervising port operations, transship ment, storing and reporting on cargo handled at the port. MAG already owns and leases warehouses (25,000m²) of storage space. MAG provides port services in the area of dry bulk loads, liquid loads, ro-ro, oversize freights (project cargo ), offers heavy loads service (handling of heavy loads with the use of specialized handling equipment) and the packing of goods for export including wild range of complex services for Wind & Offshore industry. Sea towing: handling global full-sea tows for oil rigs, ship hulls, steel structures, tanks, cranes and other heavy and bulky objects. River navigation: in Poland and Europe, apart from logistic services, MAG also offers the organization of inland transport on the Vistula and the Odra river and arrangements of reloading in river ports. Logistics maritime services: sea freight forwarding, container forwarding, packaged fright services container forwarding, intraport transport, storage of goods and their expedition/transport to and from the customer, forwarding services document at ion. MAG provides tailor-made logistics services to meet market needs, a requirement of the changing economic environment. Railway freight forwarding: rail transport of bulk, conventional and oversized cargo in Europe and Asia. Road transport: transport of bulk cargo with self-unloading vehicles (tipper, moving floor, silo), domestic and international tarpaulin transport, project cargo road transport (transport of large loads, such as structural elements, wind turbines or ship hull blocks), containers in Poland and Europe. Its own transport fleet travels hundreds of thousands of kilometres annually. Customs agency: custom clearance services.
Crewing.
Consultancy on maritime, rail and land transport.
2020
MAG celebrates its 70th anniversary. Being an experienced and mature over 70-yearold, it is now a 31-year-old dynamically operating employee-owned company that has retained its leading position in the agency market, servicing the largest number of ships in all Polish seaports.
TASKS OF A SHIP AGENT/SHIP AGENCY The basic tasks of a ship agent have not changed, do not differ much and are basically universal around the world. MAG goes beyond the typical universal tasks of a ship agency and expand its activities to include a very wide range of logistics of the port operations, as noted above.
MAG BASIC SHIPS AGENCY SCOPE OF ACTIVITIES. It is worth noting that the wide range of duties presented below is not exhaustive, and is subject to constant change. The work of a ship agent is ever-changing, requiring flexibility and the ability to adapt to the times. This work does not take breaks and takes place continuously 7 days a week, 24 hours a day. 1. Ship handling organization in port with stevedoring companies/ port terminals. 2. Agent co-operation with various parties operating in the port-maritime trade: v towing companies, v pilot companies, v shippers, v freight forwarders, v supplier of the cargo. 3. Co-operation with Maritime
Administration: v Maritime Offices, Harbour Master v Offices – Harbour / Port Captains, v Customs Office – part of the tax v administration, v border services – coasts gourds, v sanitary and other services. 4. Co-operation with The Port, i.e.
Maritime Port Administration: v Chief Dispatcher, v port terminals. 5. Co-operation with ship-handling companies during a stay in port:
v appraisers, assessment and control v companies, v ship service providers, v services to vessels at dry docking, v repairs and suppliers of spare parts, v certification companies v cargo documentation (bill of lading, v statement of facts, etc.). 6. Crew service /crew changes: v liability from ship-check-in documents, v reporting dossier, v billing documentation, v insurance records, v crew and passenger list: visas, v transport, other airports, medical v service (visits to doctors, v hospital stay).
MAG represents foreign shipping lines, shipowners and insurance clubs (P&I) in Poland and is a member of The Baltic International Maritime Council ( BIMCO) and The Ship Agent and Brokers Association at Gdynia. For years MAG has been a correspondent of protection and indemnity clubs. MAG works as an emergency agent for benefit of foreign insurance associations, supporting them during settlement of claims in sea transport. Gdynia Maritime Agency has a number of certificates confirming the highest quality of services and many awards and recognition of its contractors.
The dry bulk ship agency sector is a very important part of MAG activity, both in terms of the number of vessels handled and volume of tonnage. Quantity served in 2021 in all Polish seaports amounted almost 1,200 vessels and MAG remains a leading shipping agent on the Polish market. The size of bulk carriers handled varies widely, from coasters to Panamax and baby Capesize. Almost 30% relates to a wide range of bulk goods i.e. agri products, aggregates, fertilizers, logs, woodchips, grain, cement, limestone, biomass, coke, coal, chemical products, wheat pellets, iron ore pellets and others. MAG is performing better than ever despite the pandemic. Data from the market and customers indicates that turnover in this area will grow.
“We do our best to ensure the highest possible quality of services to meet client needs and to build long-term business relationships. This enables our company to be the leading ship agency among companies from the maritime services industry in Poland over the years,” emphasize representatives of the Management Board: Michal Smigielski, President and Krzysztof Laskowski, Vice- President.
“In last year’s article (see p. 39 of DCi’s February 2021 issue) we talked about challenges and opportunities that Covid-19 brought with it,” writes agent Tove Saanilehto, from Inkoo Shipping Oy Ab’s Parainen office.
“During the past year, we have had about the same amount of agency appointments as year 2020.
“To our Parainen office we hired a new co-worker in April 2021 after an approximately 40-year long career came to an end and the pension called. Now we are two women in our Parainen office, and we are continuing to develop and work to a high standard.
“During the past year we have concentrated on doing our clearances as distance work and it has proven that it is usually possible, but some situations still need to be done physically. For example, cash to Master, package/post deliveries need us to visit the vessel. When you do the clearance on distance it also means that you can provide service for existing and new customers in ports all over Finland. Nothing is difficult for us, you just must adapt and find solutions that work for you and the customer. As in all branches, Inkoo Shipping has had to work hard and tackle the amount of work that had to be done and we have succeeded due to our strong work ethics. By doing the clearance on distance we also think about how we can help our environment by driving less. If the assignment requires us to visit a vessel, we try to gather everything so that we only drive to the vessel once.
“We have been given new assignments from new customers which has been a lot of fun, rewarding and challenging. If it were all easy, we wouldn’t be doing it. When you build up an assignment with a customer and at the end everything goes as planned you have a very happy customer that will come back again.
“Our goal is to aim forward and to come up with new solutions and new ways to work so that it benefits us, our customers and our environment.”
Port of Parainen in 2021, photo by Tove Saanilehto.
MARDOM, 50 years in the Dominican Republic’s dry bulk segment
With a solid trajectory of 50 years, Maritima Dominicana MARDOM, has become prominent in the integrated logistics services in the Dominican Republic.
Specifically, in the dry bulk segment that includes coal, corn, soy, wheat, fertilizers, aggregates, clinker, salt, petcoke and sugar among others, currently with a 93% share on the dry bulk market covering the ports of Manzanillo, Puerto Plata, La Romana, San Pedro de Macoris, Rio Haina and Barahona.
Founded more than a century ago, Biehl stands poised to lead the way among ship agencies. Biehl maintains its position by retaining highly qualified personnel and utilizing the latest technology available to assist each principal to the highest levels.
With 16 offices located in the US Gulf and US East Coast, Biehl sails into its fourth generation of continuous family ownership, proving the company’s ability to adapt and innovate to meet the everchanging needs of the shipping landscape.
TRADITION, PERFORMANCE, EXPERIENCE Biehl is one of the largest agencies in the US with expertise in handling dry bulk commodities from petcoke and coal to grains and fertilizer. Its customers rely on value-added services to not only handle their vessels but also provide them with relevant market data and just-in-time information which is critical to business operations. When requested, Biehl can evaluate project viability, verify design economics, and review contractual language to identify potential issues.
LOCAL OFFICES, LOCAL KNOWLEDGE Serving the needs of its customers throughout the US Gulf and US East Coast, Biehl agents and offices are prepared to address specific customer needs. 16 local offices eliminate the need to travel great distances. The company’s offices are plugged into the local community, from the port authorities to terminal operators — it acts as its customers’ eyes and ears.
PROACTIVE, TAILORED SERVICE Biehl employees are trained to anticipate and proactively address challenges. In most cases, agents resolve operational issues so swiftly, its customers are never aware of them. For example, draft bills of lading are prepared well in advance of the vessel’s arrival, so that, upon completion of loading, only the cargo figures need to be included. Biehl further demonstrates its commitment to advance preparation by providing customers with timely port information, weather updates and most significantly, by offering customers the benefit of years of experience with a particular port, ensuring seamless vessel operation.
Biehl can tailor any service or request specifically to the customer’s requests. Detailed work instructions (which the customer can revise at any time) are developed and discussed to clearly outline customer expectations. Once completed, these instructions are shared between offices to ensure continuity of service. These work instructions are also regularly reviewed to evaluate customer satisfaction.
AGENCY PLATFORM Biehl well understands that it must continually adapt to the ever-changing marketplace. In response, Biehl worked closely with bluVerve to incorporate software which fits both our needs and that of our customers. The core goal was to develop a reliable, simple, and flexible system that helped our team to be more effective and efficient in day-to-day tasks.
Juggling multiple tasks at the same time, agents need to ensure the job is going smoothly, efficiently and on time, as well as keeping the charterer and/or owner of the vessel up to date, all the while making sure to follow internal processes. bluVerve provides a system to standardize documentation and invoicing (DAs), keep track of all jobs in all ports of operation, and ensure timely and efficient management of jobs and communication with the customer. At the core, the system has an intuitive whiteboard and filtering features providing the status of each vessel in each port, as well as the financial and operational information.
PORT COST MANAGEMENT Vessel operators often state that proper port cost management is key. Using the port cost system, port, terminal, and vendor tariffs are input into the system and automatically calculated. Tariff terms are transparently shown to the customer including the PDA assumptions such as days in port. Changes during a port call are easily updated and communicated with the customer. Final vendor invoices are compared with the PDA values and any discrepancy validated with an explanation provided with the FDA. This data is also very useful to create cost comparisons with previous DAs from similar vessels and can be integrated with third party voyage management and voyage reporting systems
ADMINISTRATION, IT SECURITY Many people have concerns regarding IT security and data theft. Biehl has instituted Microsoft Authenticator to verify employee access to internal systems. In addition, bluVerve is a web-based software utilizing the latest security settings. Within bluVerve, users are assigned roles controlling access groups, view or edit credentials and department access. Most importantly everything is logged, and user activity can be monitored throughout the system.
The Port of Brownsville is just one of many where Biehl offers its services.
Maritime agency, GERLEINCO S.A.S., has been providing effective and responsible logistics services in Colombia since 1916.
The company delivers reliable and dynamic integrated services, supported by a committed professional team and an infrastructure of innovative technological developments. It has a presence in the major ports and commercial cities throughout the country, furthermore, it has built strategic alliances and strong relationships in all segments of the supply chain. GERLEINCO is a solid family owned maritime agency with a defined long term strategic plan.
HISTORY “One of the highest achievements in GERLEINCO’s 105th anniversary,” says Carlos A. Ulloa, GERLEINCO’s President, “is to have a team that represents its greatest strength, supported by the development and constant updating of our IT as a strategic tool to leverage our activity.”
Ulloa adds that GERLEINCO’s goals and accomplishments have been possible thanks to the groundwork of a responsible and efficient human team, “inspired by the highly ethical and professional values of our organizational culture, which has transcended over time.”
In this celebration of its first 105th years of history, the company is aware of the many opportunities that lie ahead of it to be improved on. “With this drive, we will continue to build lasting relationships based on the respect of our commitments, and on generating added value for our customers, suppliers and human talent,” explains Ulloa.
BULK CARGO SERVICES With extensive knowledge of the procedures in each Colombian port, GERLEINCO guarantees that ships make their port-calls and operate in the most efficient way, coordinating services on time and without incurring in additional costs or delays. GERLEINCO’s services include: handling of all relevant documentation and timely announcements towards the port and authorities; supervision of loading and unloading of cargo; fulfillment of required customs actions; husbandry; crew assistance and immigration handling; medical and dental care; ship chandler; water and fuel supplies; draught survey, bunker survey, onhire/offhire survey; and provision of groceries.
All GERLEINCO’s services are coordinated with high quality and trustworthy suppliers.
TOWARDS THE FUTURE In a globalized world, new challenges will arise and GERLEINCO realizes that it must renew its commitment to continue working with dedication and effort, thus contributing to the promotion of foreign trade and to the economic and social development of Colombia.
The vision the company has for the next century is focused on the incessant search of excellence in its services, through technological innovation and the reinforcement of the GERLEINCO family.
A.R. Savage & Son joins Multiport Ship Agencies Network
A.R. Savage & Son proudly announced in January 2022 that it has joined Multiport, the world’s largest global ship agency network, as the representative of the American East Coast, Gulf Coast, and US. Virgin Islands. Membership carries with it Multiport's guarantee of compliance with strict standards of Professionalism, Quality and Integrity, and will provide an additional avenue to add value to its customers locally, nationally and globally.
Multiport’s Country Exclusivity policy means only one agency per country may become a member; the United States has two, one per coast. Members are scrutinized on a yearly basis by an independent organization that evaluates both business performance and financial stability, ensuring that only the highestquality ship agency represents each country.
“We’re honoured to represent the United States for Multiport, and appreciate the recognition of our high standards,” said Arthur Savage, President of A.R. Savage & Son. “When shippers need an agent on the US East Coast, they know who to call!”
Multiport agents represent 10% of the worldwide agency business by port calls. The network handles more than 1.5 billion cargoes worldwide, representing more than three thousand principals.
The announcement comes as Tampabased A.R. Savage & Son enters its 77th year as a full-service ship charterer and agent.
ABOUT A.R. SAVAGE & SON
As the oldest ship agency, ocean freight forwarding, and maritime advisory services company on Florida’s west coast, A.R. Savage & Son provides superior services, quality, and value to ships that call on Port Tampa Bay, Port Manatee, the Port of St. Petersburg and Port Canaveral. Based in Tampa, the family-owned-and-operated business has provided professional services to the domestic and international maritime trade community for four generations. Its experienced team provides ship agency, cargo, advisory, and consular services to ship owners and charterers, as well as the cargo interests themselves.
ABOUT MULTIPORT Since 1978, Multiport has existed to offer the best in agency service and management systems, without losing sight of its traditional strengths, local expertise, strong personal relationships, flexibility of approach and the peace of mind which owners and operators have from knowing that their interests are being fully cared for, in every way, everywhere and anytime. Being a Member of Multiport is a calling card, a guaranteed stamp of professionalism. Multiport is a global group representing only independent business partners who can demonstrate their integrity, quality and professionalism. Multiport is a not-for-profit organization, that exists to raise the standards in the shipping agency world and to promote cooperation between Members providing a worldwide network of top quality agents.
SHIPPING & TRANSPORT Agents you can trust – a tool for growth in a volatile market
The GAC Group looks back on the past year’s highs and lows for the dry bulk freight sector and outlines how reliable ship agents can help ship owners and operators seize new opportunities.
MIX OF HIGHS AND LOWS 2021 was an eventful year for the dry bulk freight sector. According to Simpson Spence Young’s 2022 Outlook Report, vessel earnings across all main bulker sizes last year buoyed to 13-year highs as global economies recovered from the pandemicreduced slump, leading to strong demand growth. In many places the outlook is bullish, like in Sohar where dry bulk shipments heading for the Omani port are expected to see significant growth as the new local sugar refinery and flour mill silos start operating in 2022.
Unprecedented port congestion and delays caused by Covid-related protocols elevated freight demand and prices. Severe weather events in Asia and North America exacerbated the situation. The ‘containerization effect’ has led to loading of conventional containerized cargoes onto bulk carriers to avoid bottlenecks, further pushing up rates.
Then there was the impact of the energy crisis and power shortages in China and India, the world’s top thermal coal consumers, triggering greater demand for coal imports.
But beneath the highs chiming good news for the bottom lines of ship owners and operators, there was turmoil caused by events and trends that made for a volatile market subject to sudden changes and wild fluctuations. Hong Kong bucked the trend set by India and China as its imports of coal reduced rapidly from February 2021 in response to inflated prices. Indonesia’s sudden imposition and subsequent lifting of a ban on coal exports in January 2022 temporarily disrupted the movement of bulk carriers. Nonetheless, analysts are expecting another profitable year for shippers.
OVERCOMING OBSTACLES, SEIZING OPPORTUNITIES Throughout more than 60 years of its history, the GAC Group has seen many crises and weathered many storms. In doing so it has garnered a wealth of experience and expertise and invested in resources that it draws to support its customers faced with a volatile market.
There was a clear example of this in Fujairah, UAE, where GAC devised and executed a detailed plan to ensure the seamless discharge of a complex heavy lift shipment containing a 528 metric tonne gas turbine, a 394 metric tonne stator, a 270 metric tonne transformer and a 100 metre rotor for a prominent heavy lift operator.
Beyond meeting the needs of its existing customers, GAC also expanded its client base, seeking and seizing new opportunities. It was nominated by traders and charterers in Hong Kong, Greece and Singapore as the vessel agent for loading and discharging of cargoes from Oman, and a new dry bulk business was secured in Bahrain for the loading of finished aluminium products such as ingots and billets.
In Dubai, GAC won ten new businesses, recorded a 75% growth in port calls and saw an increase of 121% in cargo volume, compared to 2020. In Sri Lanka, it diversified its portfolio by partnering with a renowned bagging operator to offer bagging services for free-falling bulk cargo at the Colombo, Galle, Hambantota and Trincomalee.
As the preferred ship agent, GAC has handled dry bulk port calls for a range of clients including international and local commodity traders, national and international utility companies, owners and operators across sectors that include coal,
WORKING WITH THE RIGHT AGENT GAC operations around the world are optimistic about the outlook for dry bulk and expect tight vessel supply and strong demand to persist as enduring market features.
The right agent is key in enabling a business to capitalize on opportunities for growth. Ship owners and operators benefit from the operational experience, global resources, service excellence and valueadded portfolio when they work with a tried and tested reliable ship agent who provides solutions to meet their needs and help them thrive during the pandemic.
PARTNER YOU CAN TRUST To maximize profit margins, some ship owners and operators seek to reduce operating expenses including repairs and maintenance, crew costs, insurance and ship agency. That may generate short-term savings, but in the long-term it can be a costly tactic. Working with a reliable ship agent means services you can rely on that comply with health, safety and environmental rules to avoid potential legal and financial penalties.
In dry bulk shipping, ship agency success is determined by the agent’s ability to get a vessel into port, loaded, discharged, serviced and on its way in the quickest, safest and most economically efficient manner possible. It is a major operation which relies on a trusted and experienced agent with local presence, trained staff, financial stability, international resources and a robust safety and compliance culture.
GAC has been handling dry bulk commodities and vessels since the 1950s. It applies the highest standards of quality, safety, compliance and sustainability in all its operations. Leveraging the Group’s global network and in-depth market knowledge, GAC offers shippers a customized, reliable, and compliant service – delivering both cost efficiencies and operational requirements.
As a leading global provider of shipping services, GAC has broad experience in handling a wide range of tasks, including husbandry, liaison with cargo suppliers, receivers and surveyors, ship spares delivery, bunker fuel supplies and more. Such duties vary considerably from one commodity to another, so it is essential that the ship agent has in-depth specialist knowledge of each sector to avoid costly and even dangerous mistakes.
To further aid in the efficient planning of dry bulk operations, GAC monitors port conditions for potential problems such as disruption to loading or discharging, restrictions, new requirements, and port authority updates.
Through rain or shine, booms and busts, GAC remains committed to supporting its customers and driving their business success.
Attention: ship owners and ship operators Need the latest port information? Go direct!
As we all know, in shipping, time is money. The ship owner/operator makes decisions each day that can have a significant impact on the profitability of their voyage. The cost of the vessel’s port call represents one of the most significant factors in profitability.
Port information is now available from many sources, other than the ship agent. These other sources provide the ship owner/operator historical port information, not what is happening NOW in the port.
Consider the variables of a port call that can represent a significant change in the overall cost: tide, draught, weather, construction in or around the port, labour, government regulations.
Only the local ship agent provides real time port information taking into account wind, rain, or other unforeseen weather conditions that significantly affect drafts and other restrictions. Unforeseen changes in draught may require additional tugs and/or pilots amounting to a significant cost increase of port call. The ship agent is also aware of port projects that include dredging or construction work that may affect vessel navigation to/from the port.
Once the vessel is arrived, your local ship agent will manage the vessel call as only he can provide the status of available labour (longshoreman), wharfage situation, current equipment (cranes, lines for petroleum products) that affect the vessel’s time spent in loading or discharging. If the vessel is running late, your local agent provides his principal with the availability and cost of overtime services both from the port-based providers as well as government authorities.
Fluctuating fuel surcharges on tug, pilotage and transportation services, assessed more often than not, can amount to as much as 40-–5% of their tariff. Wouldn’t you want these costs included in your Proforma DA?
Most ship agency companies are active participants in their local and national maritime associations. They attend events to connect with their port-based providers and government officials that include terminal and port operators, Coast Guard and Customs. The ship agent’s involvement with their port community means that they are informed as to upcoming port projects and government rulemaking. This was never more evident than during Covid, when ports around the world established their own protocols and procedures that the local agent navigated on behalf of their principals to facilitate crew changes, Covid tests and vaccinations to keep commerce moving.
Several national and international associations have recognized the vital role of the ship agent in facilitating trade and the need to ‘raise the bar’ for ship agency providers. In the USA, the Association of Ship Brokers and Agents (ASBA) worked with their ship agency company members to establish minimum standards for members in 2005. All ASBA ship agency company members must annually submit a Procedural Review performed by an outside Certified Public Accountant that focusses on their handling of the funds advanced by their principal, proof of insurance (general liability, workmen’s compensation to include USL&H, automobile and errors & omissions) and that their boarding agents are trained and professional. The ASBA Certified Ship Agency Member Companies can rely on their association to assist in problemsolving and enjoy a support group through their Agency Affairs Committee. Following ASBA’s lead, the Federation of National Associations of Ship Brokers & Agents (FONASBA) released the FONASBA Quality Standard in 2008 that is now issued in over 43 countries and awarded to more than 600 companies.
Your local ship agents are your partners — providing accurate advance port call information then demonstrate their value to the owner/operator before, during and after the port call.
References Simpson Spence Young’s 2022 Outlook Report: https://www.ssyonline.com/media/2016/ssy-2022outlook-final.pdf
Ship owners and agents have everything to gain from accurate and transparent port costs, says Harbor Lab CEO and founder, Antonis Malaxianakis.
The past six months have been a bumpy ride for bulker operators. The Baltic Dry Index peaked at 5,650 in October, dropping to a more normal 2,217 by the end of the year, and then to 1,296 in early 2022. The multi-year highs saw freight rates for capesizes exceed US$80,000 per day.
When freight rates are high, cost savings are less of a priority to principals. But when rates are low, principals will look to make savings wherever possible.
Costs accrued in port represent some of the biggest outgoings for the principal — the party who appointed the agent and pays the agent’s fees, such as the ship owner or charterer. Fuel accounts for around 50% of voyage costs, with little respite seen since January 2020 when the IMO low sulphur regulation entered into force. Port expenses, agency fees, taxes and husbandry services combined represent a further 30%, and are the second biggest outgoing.
With such significant overheads it’s important to have complete visibility on costs to protect the bottom line.
Accurate port tariff data can, however, be difficult for principals to obtain, translate and then calculate.
My company, Harbor Lab, was set up to address this situation and do away with opaque pricing and fees. It gives both agents and their principals access to validated port tariff information and brings transparency to the disbursement process.
Our analysts obtain verified, real-time data directly from the ports and unravel the matrices that determine port fees for individual vessels. From there, they create complex algorithms that drive our online Disbursement Accounting (DA) Tool.
Port tariffs are one of several variable expenses required for accurate voyage calculations. Harbor Lab provides the most accurate data available and does not rely on making checks against historical data that may not be wholly accurate.
Others include bunker costs, agents’ fees, canal transit fees, and towage and pilotage costs, the prices of which are all included in the DA Tool.
Now more than ever, more and more companies are turning to our software as a transparent and fast way of working instead of relying on traditional, paper-based disbursement processes which are paperheavy, error-prone and time-consuming.
The accurate data that drives our software has enabled our clients to realize considerable savings. Last year we were able to secure savings of more than US$1,000 per port call for those clients who switched to Harbor Lab from more traditional disbursement accounting companies.
Importantly, principals use the tool to cross reference the actual fees with charges put on their account. This opens up opportunities to re-negotiate terms with third parties and puts the principals back in control of their outgoings.
The beneficiaries of this transparent way of working are not limited to principals as ship agents have much to gain from the level playing field created by the DA Tool.
Agents and vendors at ports across the globe can register their details in the platform free of charge, exposing them to shipowners, managers and charterers looking for husbandry services. Principals can see their fees and expertise, and reach out to their chosen agent or agents through the system to make enquiries and request quotations. Appointments based on these quotations can also be submitted through the system.
In this way, larger or more established companies are considered equally alongside newer companies or solo agents, creating a level playing field that exposes agents to new potential clients.
Good relationships with trusted agents appointed to handle disbursements, whilst a vessel is in port, are invaluable to principals and essential for smooth port calls. A charterer will always need a representative in the port, and although a software system cannot replace these relationships it can enhance them.
Traditional administrative processes will continue to be challenged as technology makes further inroads into our industry. The next frontier is the integration of data sets to enhance efficiency, profitability and predict future trends. All players should be ready for commercial shipping decisions to be entirely data-driven within the next decade.
It’s one reason why Harbor Lab recently announced a partnership with maritime software company Veson Nautical, with mutual customers now able to access Harbor Lab’s data via the Veson IMOS (integrated maritime operations system) Platform.
To date more than 4,000 port calls have been processed using Harbor Lab’s online tool, across the 300 vessels whose DA processes have been brought in house with their costs now managed through the system. The platform has already attracted 1,200 agents and vendors since it went live in March 2020.
Our tools are designed to save principals, vendors and port agents time, money and reduce their back-office paperwork as all correspondence and quotes are held in the system. Accessing the tool is easy either by desktop or smartphone and all quotation requests from operators can be viewed in historical order on a personal dashboard.
Disbursements may seem like a drop in the ocean, but the finer details matter when protecting a company’s bottom line.
And while dry bulk freight rates may have hit multi-year peaks in 2021, industry commentators are not predicting a repeat performance this year. Limited growth opportunities for key bulk cargoes such as iron ore and coal, alongside leveling tonnage supply and demand, have been amongst the reasons cited for a more sedate 2022.
It’s a good time for bulker operators and owners to reconsider their outgoings, review their processes and prepare for a transparent, data-driven future.
Harbor CEO and founder, Antonis Malaxianakis.
North Sea Port is building a new 800m-long quay at Quarleshaven in East Vlissingen. This will enable the firm Bulk Terminal Zeeland to expand its operations. Shipyard Reimerswaal’s quay will also be extended as a result.
The new quay at Bulk Terminal Zeeland in the Sloe area will replace the old quay that is being demolished. A consortium made up of Werkendam hydraulic engineers Hakkers and De Klerk will start construction of the new quay in late March 2022. The new 800-metre quay will be completed by the end of 2024. As a result, the quay on the south side of Quarleshaven will be a total of 1,200 metres long. North Sea Port is investing a full €40 million in new port infrastructure here.
The transshipment company Bulk Terminal Zeeland will see its quay extended from 250 metres to 440 metres. This will provide more space for the transhipment of dry bulk such as wood pellets, gypsum, raw materials for the steel industry, organic agricultural products and boulders for reinforcing offshore wind turbines.
The construction of the new quay will also free up an additional ten hectares of land for allocation to Bulk Terminal Zeeland. And there is still enough space between the terminal and Shipyard Reimerswaal for a new company to use.
A QUAY FOR DIFFERENT VESSEL TYPES AND BUSINESSES Various types of seagoing vessels will be able to moor at the new quay, for example project cargo vessels, heavy-lift vessels, bulk carriers, fruit carriers and tankers with a draught of up to 12.5m, as well as inland vessels. There is potential to increase the water depth by two metres at a later date. The quay will be reinforced and made suitable for loads of up to five tonnes per square metre.
“Part of the quay will be made accessible for potential customers who want to establish operations at Quarleskade,” says Daan Schalck, CEO of North Sea Port. “This represents an efficient use of our port infrastructure.” The new quay will also connect to Shipyard Reimerswaal’s terminal, which will acquire an additional 40m of quayside once it is complete; the ship maintenance and repair company will have a total of 425m of quayside.
Hein van Laar, commercial director of Hakkers BV notes: “Following on from previous successful projects in Vlissingen, Hakkers and De Klerk are very proud to deliver this new project for North Sea Port. It demonstrates our strengths as a construction and hydraulic engineering partnership with all the necessary disciplines in-house.”