Port Wings Maritime Exim Weekly Newspaper 29 April 2020 E-paper

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741

Wednesday, April 29, 2020

8 Pages

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Port Wings News Network he Shipping Ministry has allowed firms running cargo terminals at stateowned major ports on the publicprivate-partnership (PPP) mode to defer their April, May and June months' revenue share, royalty and equipment hire charges without any interest, says a BusinessLine report citing a govt order, This is part of a relief package signed off by the Shipping Minister Mansukh Mandaviya to ease the burden on PPP operators, port users and other stake holders hit by the outbreak of the coronavirus.

The revenue share, royalty and equipment hire charges deferred will have to be paid by the PPP operator after interest free period of three months (reckoned month to month the charges due in April 2020 shall be paid in month of August 2020).

Alternatively, the deferred

amount can be paid through six monthly equated instalments at interest rate equal to RBI's 91-days treasury bill (primary) yield rate (as on the due date of initially deferred amount) after expiry of interest free period, according to an order issued by the Ministry late on Tuesday.

The 12 ports have been permitted to waive lease rentals, licence fees and similar charges payable by the PPP operator for three months (April, May and June) to the extent of the reduction in the volume of cargo handled at their facilities compared to the monthly average cargo volume of last calendar year – Jan 1, 2019 to Dec 31 2019.

Wing 6 Feather 37

Mob : 9884085285

Sanjeev Ranjan New Secretary for Ministry of Shipping

Shipping Ministry Unveils Relief Package for Coronavirus-hit Cargo Terminal Operators at Major Ports Mumbai

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Authorized Economic Operator

For example, if the average monthly volume is 10,000 twentyfoot equivalent units (TEUs) based on the cargo handled by the operator from Jan to Dec 2019, and if the cargo volume for the month of April 2020 is 6,000 TEUs (a drop of 40 per cent compared to last year's average monthly volume), the ports shall waive off 40 per cent of the lease rentals, licence fees and similar charges for the month of April 2020.

If such waived amount has already been received by the port, the same will be adjusted in future payments by the operator.

The minimum guaranteed throughput (MGT) obligations (wherever prescribed in the concessionaire agreements) shall be computed, for the respective year, without considering the lockdown period and cargo volume handled during the said period.

The ministry has directed the ports not to levy penalty or charges for shortfall in performance standards Contd. on page -2

New Delhi Port Wings News Network fter the approval of appointments committee of the cabinet chaired by Prime Minister Narendra Modi, Sanjeev Ranjan IAS has been appointed as the new secretary in the ministry of shipping as part of a major top-level bureaucratic reshuffle effected by the Union government on Sunday amid the coronavirus pandemic.

The current secretary to the ministry of shipping, Gopal Krishna IAS will be retiring from his post on April 30, 2020.

Sanjeev Ranjan is a 1985 batch Indian Administrative Service (IAS) officer of Tripura cadre, currently serving as secretary for the ministry of road transport and highways.

Senior IAS officers Tarun Bajaj and Arvind Kumar Sharma were also moved out of the Prime Minister's Office (PMO).

While Tarun Bajaj, Additional Secretary in the Prime Minister's Office, was appointed the new Department of Economic Affairs Secretary, Arvind Kumar Sharma,

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Additional Secretary in the Prime Minister's Office will be the Secretary in the Ministry of Micro, Small and Medium Enterprises upon superannuation of incumbent Arun Kumar Panda on April 30.

Union Health Secretary Preeti Sudan, who was due to superannuate on April 30, was given a three-month extension.

The decision assumes significance as the Health Ministry is at the Contd. on page -2

Inside Cannabis From US in Sleeping...

Dakshin Bharat Gateway Terminal...

Port Congestion Adds to Exporters’...

DP World Partners With Akshaya...

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Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7

Triway group expresses

Heartfelt gratitude and appreciation to Wheels of Economy Logistics is the lifeline of the country and many at times your service to our nation gets unnoticed. Our State Government in accordance with Government of India enforced the lockdown due to the COVID-19 Pandemic on 24 March 2020.

While most of us followed our government directive to stay at home and rightly so, some essential services like logistics industry comprising of CFS, CFS’s admin staff, container crane operator, yard in charge, system management staff, security personal, gate in charges, top management of CFS, most importantly drivers from within city and neighbouring towns have put their life at risk and selflessly worked towards movement of import and export containers.

Special mention to the container terminal staff and operators for enabling smooth operations during such tough times. The port terminal is operational only because of all your efforts.

WASH YOUR HANDS

USE SOAP

AVOID CROWDS

We at Triway Group salute you all from the bottom of our heart for the incomparable, unparalleled service even during this pandemic situation and for being the backbone of our economy.

2M

THANK YOU

2M

Corporate Office: #14, Jaffer Street, 2nd Floor, (Behind Customs House), Chennai - 600 001.

Tel: 044-3026 4026 (50 Lines), Fax: 3026 4046, E-mail: chennai@triway.in Branches: Chennai, Bangalore, Mumbai,Tuticorin,Tirupur

www.triway.in

WEAR MASK

AVOID HANDSHAKE

PHYSICAL DISTANCING

STAY Home, Stay Safe.

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8. Date of Publication - Wednesday, Posted on Tuesday / Wednesday

Apr. 29th - May 5th Issue

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Shipping Ministry Unveils Relief...

Wednesday, April 29, 2020

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Wing 6 Feather 37

The Great Lockdown

he global economy is expected to suffer its worst year since the Great Depression of the 1930s, according to the International Monetary Fund forecast. Beaten down by the coronavirus outbreak, the world economy will shrink by 3.0 per cent during 2020 — far worse than its 0.1 per cent dip in the Great Recession year of 2009 — before rebounding in 2021 with 5.8 per cent growth.

In its latest outlook, the IMF expects economic contractions this year of 5.9 per cent in the United States, with a rebound to 4.7 per cent growth in 2021 under the Fund's best-case scenario. Euro zone economies will contract by 7.5 per cent in 2020.China, where the pandemic originated, is expected to eke out 1.2 per cent growth this year. The world's second-biggest economy, which had gone into lockdown, has begun to open up well before other countries. While acknowledging that prospects for a rebound next year are clouded by uncertainty the bleak assessment represents a breathtaking downgrade by the IMF. In its previous forecast in January, before COVID-19 emerged as a grave threat to public health and economic growth worldwide, the international lending organization had forecast moderate global growth of 3.3 per cent this year. But far-reaching measures to contain the pandemic — lockdowns, business shutdowns, social distancing and travel restrictions — have suddenly brought economic activity to a near-standstill across much of the world. 'It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,' the IMF said in its report.

'The Great Lockdown, as one might call it, is projected to shrink global growth dramatically.' The global economy is expected to suffer its worst year since the Great Depression of the 1930s, the International Monetary Fund said.

The coronavirus outbreak has thrown at least 16.8 million Americans out of work in just three weeks as the coronavirus outbreak continues to tear through the country, bringing the economy to a near standstill worldwide trade will plummet 11 per cent this year, the IMF predicts, and then grow 8.4 per cent in 2021.

'This recovery in 2021 is only partial as the level of economic activity is projected to remain below the level we had projected for 2021, before the virus hit,' IMF chief economist Gita Gopinath said in a statement. The IMF's twice-yearly World Economic Outlook was prepared for this week's spring meetings of the 189-nation IMF and its sister lending organisation, the World Bank.

Under the Fund's best-case scenario, the world is likely to lose a cumulative $9 trillion in output over two years - greater than the combined GDP of Germany and Japan, she added. Those meetings, along with a gathering of finance ministers and central bankers of the world's 20 biggest economies, are being held virtually for the first time in light of the coronavirus outbreak. The IMF's managing director, Kristalina Georgieva, warned that the world was facing 'the worst economic fallout since the Great Depression.'

She said that emerging markets and low-income nations across Africa, Latin America and much of Asia were at especially high risk. The IMF's forecasts assume that outbreaks of the novel coronavirus will peak in most countries during the second quarter and fade in the second half of the year, with business closures and other containment measures gradually unwound.

A longer pandemic that lasts through the third quarter could cause a further 3 per cent contraction in 2020 and a slower recovery in 2021, due to the 'scarring' effects of bankruptcies and prolonged unemployment.

A second outbreak in 2021 that forces more shutdowns could cause a reduction of 5 to 8 percentage points in the global gross domestic product baseline forecast for next year, keeping the world in recession for a second straight year.

The IMF approved $500 million to cancel six months of debt payments for 25 impoverished countries so they can help confront the pandemic.

Just three months ago, the IMF had forecast that more than 160 countries would register income growth on a per-capita basis. Now, it expects negative per-capita income growth this year in 170 countries.

On a hopeful note, the IMF noted that economic policymakers in many countries have engineered what it calls a 'swift and sizable' response to the economic crisis.

The United States, for instance, has enacted three separate rescue measures, including a $2.2 trillion aid package — the largest in history — that is meant to sustain households and businesses until the outbreak recedes and economic life begins to return to normal.

That package includes direct payments to individuals, business loans, grants to companies that agree not to lay off workers and expanded unemployment benefits. And Sample Congress is moving TEXT toward approving a possible fourth economic aid measure.

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The IMF is also calling upon countries to work cooperatively to fight the pandemic.'Countries urgently need to work together to slow the spread of the virus and to develop a vaccine and therapies to counter the disease,' the lending agency said.

In India’s case, there are many challenges for a country like India, where a large part of the population has lost jobs in the wake of Covid-19 lockdown.

In order to effectively restart the economy when the situation improves, Prime Minister Narendra Modi has to focus on saving the livelihood of the people.

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Continued from page -1 such as gross berth output, transit storage dwell time, turnaround time for delivery, store, receipt operations and non-transhipment requirements for the lockdown period plus 30 days recovery period.

The port will provide additional storage area to PPP operators (if requisite additional area is available within the port), on temporary basis, without any charges, rentals, fee till June 30, on an 'as is where is' basis.

Citing a February 19 Finance Ministry order permitting the

outbreak of coronavirus to be treated as a ‘natural calamity’ that would entitle invocation of 'force majeure', the Shipping Ministry has allowed ports to extend the period for completion of projects under implementation in PPP mode or otherwise.

The state-owned ports can permit waiver of all penal consequences for PPP projects under operation on a case-to-case basis along with deferment of performance obligations as per relevant provisions of the concession agreements.

The period of force majeure starts from the date of order issued by the Finance Ministry and will end when the competent authority so orders.

Due to the impact of COVID-19 and lockdown measures, there is a drop in cargo volume at several PPP berths/terminals in major ports, making it difficult for the operators to fulfil their obligations to port authorities and banks/lenders.

“Therefore, it is required that some relief measures are taken to support and rebuild the logistic chain,” the Ministry said.

Sanjeev Ranjan New Secretary for....

Continued from page -1 forefront of checking the spread of COVID-19 in the country.

The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, has approved the three-month extension in Sudan's service, beyond the date of her superannuation, i.e. April 30, a Personnel Ministry order said.

She will continue to function as the Secretary, Department of Health and Family Welfare during the period, it said.

As many as 23 senior IAS officers have been appointed as secretaries in different central government departments as part of the bureaucratic rejig.

Rural Development Secretary Rajesh Bhushan has been appointed as the Officer on Special Duty (OSD) in the Health and Family Welfare Department in the rank of secretary.

He is likely to take over as the secretary of the department after the

expiry of Sudan's extended tenure of three months.

Nagendra Nath Sinha will be the new Secretary of Rural Development Department in place of Bhushan.

He is at present Secretary, the Department of Border Management in the Home Ministry.

Information and Broadcasting Secretary Ravi Mittal has been moved out as Secretary, Department of Sports, the order said.

Amit Khare, the Secretary of the Department of Higher Education, has been given additional charge as the Secretary, Ministry of Information & Broadcasting. Khare has earlier served in the I&B Ministry.

In a surprising change, Consumer Affairs Secretary Pawan Kumar Agarwal has been appointed as Special Secretary (Logistics) in the Department of Commerce.

Leena Nandan, the Special Secretary in the Ministry of Road Transport and Highways will be the

Consumer Affairs Secretary in place of Agarwal.

Food and Public Distribution Secretary Ravi Kant has been moved out as the Secretary, Department of Ex-Servicemen Welfare.

Senior bureaucrat Sudhanshu Panday will be the Food and Public Distribution Secretary in place of Kant. Panday is currently Additional Secretary, Department of Commerce.

Aramane Giridhar, the Additional Secretary in the Cabinet Secretariat will be the Secretary in the Ministry of Road Transport and Highways in place of Ranjan. CBSE chairperson Anita Karwal has been appointed as the Secretary, Department of Education and Literacy. She is a 1988-batch IAS officer of Gujarat cadre. Her colleague from the same cadre, Rameshwar Prasad Gupta has been appointed as the Secretary in the Ministry of Environment, Forest and Climate Change. Gupta is currently Special Secretary, NITI Aayog.

COVID 19 Disaster Relief Grocery Distribution by Chennai Customs Chennai

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Port Wings News Network hir Rajan Chaudhary Commissioner of Customs Chennai International Airport along with officers and staff distributed disaster relief grocery items (Rice, Dak, Oil, salt, sugar, tea, soap, sanitary napkin, puli, masks) to 185 needy families in slum area Pandian Street, Meenambakkam (Cantonment ward No. 5).

Prior permission for the distribution had been taken from

Cantonment

Board.

All

social

distancing norms were followed.

G r o c e r y items were also distributed to 33 personnel engaged in housekeeping, canteen, and transportation work in the Custom office of Airport and Air Cargo office Complex, Menambakkam.

Cannabis From US in Sleeping Bags Seized by Chennai Customs in Foreign Postal Parcel Chennai

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Port Wings News Network ince the stoppage of all International flights from 22 March 2020 due to COVID-19, special alert has been maintained at Foreign Postal Office and Courier Terminal at Chennai to check smuggling. The Postal Intelligence of Air Customs detained one parcel suspected to contain narcotics substance, which arrived from USA at Foreign Post Office. The consignor had declared the parcel to contain “sleeping bags and hand vacuum”.

On examination, the parcel was found to contain two red colour sleeping bags and one carton box of hand vacuum cleaner. On opening the sleeping bags, two plastic bags containing greenish dried flower pods were found concealed in each bag. In the carton box there was no vacuum cleaner but four plastic bags containing greenish dried flower pods were found concealed inside.

On opening the 8 bags, a strong weedy smell similar to Cannabis of high quality was noticed. Total 1.7 kg Cannabis of foreign origin valued at Rs. 9 lakhs was recovered and seized under the NDPS Act, 1985.In view of suspension of court functioning during the lockdown period and as per the instructions laid down by the City Civil Court, a petition for submission of case property and samples for analytical examination has been sent by email to the designated court.

The parcel was consigned to a person based in Annavaram, East Godavari District of Andhra Pradesh. As a follow up action searches were got carried out at the address of the consignee by jurisdictional Customs formation in Andhra Pradesh and further action is being taken to nab the persons involved.

The parcel was consigned from Vancouver city in Washington State of USA. The use of Cannabis for recreational purpose is legal in eleven states of USA including Washington.

Cannabis is a psychotropic substance commonly known as weed, herb, grass, ganja, containing psychoactive chemical delta-9tetrahydrocannabinol(THC).

On smoking THC stimulates the brain and it responds to pleasure and unleashes dopamine which gives a euphoric relaxed feeling. Further investigations is in progress.

Apr. 29th - May 5th Issue

More Cruise Liners to Sail to India to Drop off Stranded Crew Mumbai

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Port Wings News Network ore cruise liners are expected to call at Indian ports in the next few days to disembark crew after Marella Discovery evacuated 145 Indian seafarers at Mumbai port with the help of a standard operating procedure (SOP) framed by the government for such a task following the outbreak of coronavirus, according to a BusinessLine report.

Some 23,000 Indians employed on cruise ships were stranded across the globe after the coronavirus outbreak forced their owners to suspend services. Their repatriation to India has sparked much hue and cry, more so due to the suspension of international flights into the country, closing a key mode for their homecoming.

Cruise line owners had offered to evacuate the Indian crew on chartered flights as was done in the case of Indonesian and Philippines crew, but a government wary of easing the international travel restrictions to combat the pandemic refused to budge.

Cruise lines are thus forced to travel thousands of nautical miles just to bring back the stranded Indian crew to their country.

Like the Marella Discovery, a cruise liner owned by the United Kingdom-based travel company TUI Group, with a capacity to accommodate some 2,000 passengers.

The liner left Thailand’s Laem Chabang port in mid-march and arrived in Mumbai on April 16 after a short halt in Kochi two days earlier for bunkering, carrying 145 seafarers hailing from Goa, Mumbai, Delhi, Kolkata, Chennai, Cochin, Hyderabad, Pune and a few other places.

But, since a government approval for a crew change at Indian ports and the SOP were not in place, the seafarers waited anxiously on

the cruise ship, which also was desperate to get back to Europe.

The SOP was finally issued late evening on April 21 and the next day, J M Baxi & Co, the Mumbai based ship agency that was hired by the liner owner to facilitate the crew sign off, swung into action and made all the arrangements for the

disembarkation with the support of Mumbai Port Trust Chairman Sanjay Bhatia, Traffic Manager Gautam Dey and other related authorities.

“The biggest challenge was to get the Covid-19 tests done on the 145 seafarers,” said Commander Nevil Malao (Retd), Indian Navy and Vice President, J M Baxi & Co. When the cruise liner berthed at the offshore container terminal of Mumbai Port at 10:00 hours on April 23, technicians from a governmentapproved private lab were waiting at the pier to carry out the tests.

Only two persons boarded the ship - the pilot who helped the cruise line to berth and the Port Health Officer (PHO) who went for a full inspection fully covered from top to bottom.

“All the interactions with the cruise ship’s crew and Captain were over e-mail and across the gangway, maintaining social distance,” Malao said.

In just eight hours, the entire 145 seafarers were disembarked, and the cruise liner sailed out at 18:00 hours.

All the 145 sailors were found

to be Covid negative when the test results came in 24 hours, which typically takes 48 hours.

Following the test results, all the crew were taken in sanitised buses to six designated hotels for a short quarantine.

Of this, 30 crew residing in various parts of Mumbai were shifted to their homes, in the early morning on Sunday and they will undergo a 14day home quarantine as stipulated by the Maharashtra government.

J M Baxi is now seeking permission from Mumbai Police to shift 60 seafarers to Goa in sanitised buses. Goa is a green zone, the 60 crew will be quarantined in a hotel in Goa for 14 days before they are allowed to go home, Malao said.

“The entire cost of the crew signoff process was borne by the cruise liner owner TUI Group,” Malao said. “If a government-approved SOP was not in place, I don’t think they would want to come here and do everything at their own cost,” he said.

Seven Seas Voyager, a cruise liner owned by Norwegian Cruise Line Holdings Ltd, with 130 Indian crew on board, is currently at Abu Dhabi waiting for a green signal to sail to India to sign off the staff.

Ovation of the Seas, one of the largest luxury cruise ships in the world, owned by Royal Caribbean International, is likely to call at Cochin, Goa and Mumbai ports to disembark about 1,000 seafarers.

A cruise ship owned by Fred.

Olsen Cruise Lines with 80 Indian crew is also expected in India to sign off the crew.

“Many cruise liners are keen to come here for disembarking their Indian crew. In no way are they looking to circumvent the regulations and procedures framed by the authorities,” Malao added.

PSA SICAL Invokes Force Majeure at V O Chidambaranar Port Trust Mumbai

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Port Wings News Network SA SICAL Terminals Ltd, the entity that runs a container terminal at Central government-owned V O Chidambaranar Port Trust (VOCPT) in Tamil Nadu’s Thoothukudi district, has invoked force majeure in its licence agreement after the volumes slumped by as much as 75 per cent since April 1 due to the combined effects of the coronavirus and lockdown restrictions, says a BusinessLine report.

A force majeure clause absolves firms from meeting their contractual commitments for reasons beyond their control.

While notifying VOCPT on its decision to invoke force majeure, PSA SICAL has sought exemption from making any payment to VOCPT either on account of shortfall in the volume of containers handled or on account of any other obligation, including achieving the minimum guaranteed throughput,

electricity charges etc and/or any other head of account until the situation entirely normalises, a Shipping Ministry official briefed on the development said.

PSA SICAL further said that its volumes have slumped by about 75 per cent when compared to March 2020, the Ministry official said.

PSA SICAL could not be reached

immediately for comment.

It becomes the second privatelyrun cargo terminal on the publicprivate-partnership (PPP) mode in a state-owned major port to invoke

force majeure after Dakshin Bharat Gateway Terminal Private Limited (DBGT), also operating in VOCPT. BusinessLine reported on 23 April that DBGT had invoked force majeure.

PSA SICAL is one of India’s oldest private container terminals, starting operations in 1998. It is 51 per cent owned by PSA International Pte Ltd, the world’s biggest container terminal operator and a unit of Temasek Holdings Pte Ltd, the sovereign wealth fund of Singapore.

The balance 49 per cent stake in the terminal is held by Sical Logistics Ltd, a unit of the Café Coffee Day Group.

PSA-Sical is contractually mandated to handle a minimum guaranteed throughput (MGT) of 300,000 twenty foot equivalent units (TEUs) in a year, translating into 25,000 TEUs a month.

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Dakshin Bharat Gateway Terminal Invokes Force Majeure Mumbai

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Port Wings News Network akshin Bharat Gateway Terminal Private Limited (DBGT), the entity that runs a container terminal at Central government-owned V O Chidambaranar Port Trust (VOCPT) located in Tamil Nadu’s Thoothukudi district, has invoked the force majeure clause in the concession agreement, seeking waiver of revenue share until volumes return to pre-coronavirus level, according to BusinessLine report.

A force majeure clause absolves firms from meeting their contractual commitments for reasons beyond their control.

This is the first instance of a cargo terminal run by a private firm in public-private-partnership

(PPP) mode in a state-owned major port invoking force majeure due to steep volume drop and cash flow issues, arising from the coronavirus pandemic and the lockdown restrictions, to claim waiver of revenue share.

DBGT is contractually-mandated to share 55.19 per cent of its annual gross revenues with VOCPT every year on the 30-year contract.

DBGT, one of the two container terminals operating at VOCPT, is a unit of India Ports and Logistics Pvt Ltd. India Ports and Logistics is 51 per cent owned by Star Ports Ltd, a unit of Mumbai-listed Starlog Enterprises Ltd (earlier known as ABG Infralogistics Ltd), with Bollore Africa Logistics — Africa’s biggest transport and logistics operator — holding the balance stake.

DBGT has a capacity to load 600,000 twenty-foot equivalent units (TEUs) a year.

In FY20, DBGT handled 634,112 TEUs from 386,376 TEUs in FY19, clocking a growth of about 40 per cent over the previous year and accounting for about 79 per cent of the overall VOCPT container volumes.

From April 1, DBGT’s volumes have declined by half and the operator expects the situation to continue for some time.

“On April 21, DBGT invoked

force majeure written in the concession agreement and notified VOCPT about its decision,” a Shipping Ministry official briefed on the development said.

“DBGT is seeking a waiver on payment of revenue share to VOCPT until its volumes return to pre-coronavirus levels, which is about 52,000 TEUs a month, for three consecutive months,” the official said.

DBGT declined to comment.

Relief package A few hours after DGBT notified VOCPT of its decision to invoke force majeure on Tuesday, the Shipping Ministry unveiled a relief package for PPP operators.

The package included deferment of April, May and June months’ revenue share, royalty and

equipment hire charges payable by PPP operators to the governmentowned major ports and to waive their lease rentals/licence fees for three months till June.

“Deferment of revenue share/ royalty will not help; we want a waiver,” said the chief executive of another container terminal operating in one of the major ports.

The PPP operators are also piqued by the non-transmission of a recent cut in lending rates announced by the Reserve Bank of India to borrowers.

“PPP operators have requested that banks should reduce the rates; the benefit given by RBI is not for banks but is for the borrowers. Why is this benefit not being given by the lenders to the PPP operators at a time when our cash flows have declined very badly?” he asked, adding that the three-month moratorium on payment of loan instalments was “useless”.

“Basically, on the one hand, we have to pay revenue share/royalty to the port authority and, on the other, we have to pay higher interest cost to the banks. How do we survive?

We will default. Once we default, under the concession agreement, there is a termination on account of financial default. When RBI says you reduce the rates, the banks do not reduce the rates and the lender forces us to default only to take over the assets,” he added.

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Apr. 29th - May 5th Issue

Inland Logistics Players' Volume May Fall 10-15% in Current Financial Year Mumbai

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Port Wings News Network ven as the government has announced some relief in the lockdown, inland logistics companies' volume is likely to fall 10-15 per cent in the financial year 2020-21 as the consumption demand could take a longer time for recovery, according to ET citing India Ratings' report.

According to the agency, operational recovery for logistics players will be gradual and prolonged over 2020-21, as against a sharp V-shaped recovery.

While the volume of inland logistics players is expected to be down by 10-15 per cent year-on-year in 2020-21, the first quarter of the year is likely to see a 40-60 per fall as the lockdown has been extended till May 3.

"The volume decline will be asymmetric across the value chain, with standalone truck operators showing the highest stress, followed by inland logistics players, ports and warehouses," the agency said It added that even if the government announces some relief in the lockdown, India's exportimport trade may remain subdued in the current financial year, "as consumption demand could take even longer to recover, while exports volumes remain muted amid a weak global growth outlook".

Also, the impact on profitability and cash flows is uncertain due to lack of clarity over realisations, cost

reduction initiatives taken by players, and government support, it said.

The agency further noted that the disruption caused by the COVID-19 outbreak will certainly necessitate meaningful revisions to India Rating's base case assumptions for 2020-21.

For 2021-22, Ind-Ra expects almost the entire value chain to recover above the pre-COVID-19 levels, except standalone freight operators, who will continue to struggle amid low volumes and high debt.

"Despite logistics being categorised as essential services, we expect volumes to decline, given the first-mile (cargo evacuation from port) and the last-mile (supply-chain between inland container depots to company warehouses) challenges.

Severe shortage of labour and drivers along with health safety environment (HSE) checks at ports for foreign vessels may lead to congestion at ports/depots, which may impact their efficiencies," it said.

While the arrivals of vessels were normal in March 2020, the agency expects port volumes to reduce materially between May and June 2020 as global trade volumes shrink.

"China and the US have a market share of 18-22 per cent together in India's total trade volumes, thereby putting India's overall port volumes at risk. We expect almost the entire value chain to recover to the preCOVID levels in FY22. However,

standalone freight operators may continue to struggle amid possible higher delinquencies resulting from high debt levels and poor capacity utilisations," the agency said.

The agency pointed out that between 2016-17 and 2018-19, the logistics space in India experienced a large amount of consolidation and the share of integrated logistics players increased substantially, which has led to a rise in leverage levels across the sector.

It further said invocation of force majeure clause may increase contingent liability risk.

"In an economic downturn, logistics players not only face a lower demand for their services but also are exposed to the risk of a fall in market tariffs/rentals. Even in cases where revenues are backed by medium- to long-term contracts, unprecedented events such as a global pandemic, often allows the counterparty to invoke force majeure provisions.

"The likelihood of such an event and its impact varies significantly across issuers depending on the credit profile of their counterparty, performance of the industry and the nature of services provided by them," Ind-Ra added.

As the overall level of economic activity remains subdued, the rating agency expects continued muted freight rates over the next 6-9 months.

Additionally, the overall demand for freight transportation services is expected to contract in 2020-21.

Major Container Shipping Lines Start Skipping India New Delhi Port Wings News Network number of major global container shipping lines have started skipping up country’s container gateways, following the disruption caused at the major ports by the lockdown imposed by the Centre to check the spread of COVID-19.

But this has not affected the number of commercial ships moving in the shipping lanes of the Indian ocean, which continue at the earlier levels of 11,000 to 12,000 ships at any given time, according to a report in The Indian Express.

Major global container shipping lines, which include Maersk Line, Hapag-Lloyd, CMA-CGM and China Ocean Shipping Company (COSCO), are reported to have begun completely skipping the country’s top container gateways, including the state owned Jawaharlal Nehru Port Trust and Chennai port, and the Adani-operated Mundra port, industry players confirmed to The Indian Express.

“Due to the significant reduction in demand, we will be having blank sailings(sailings canceled by the carrier)from West Asia/ Indian subcontinent to Europe and Mediterranean... and vice-versa,” said MaerskLine, the world’s biggest container liner, in a customer advisory dated April3. Issues in clearing import containers from the ports and adjoining container freight

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stations, alongside the problems arising on account of the complete lack of export shipments from India, have ended up disrupting carrier schedules.

However, this has not affected the movement of commercial shipping in the major shipping lanes of the Indian Ocean, which are monitored round-the-clock by the Indian

Navy’s IMAC. As per official sources, the number of ships in these lanes remain the same as earlier at 11,00012,000 ships at any time. There are a total of 13 major ports in India which handled a traffic of 7,04,822 MT in FY20. Immediately after the imposition of the 21-day lockdown, the Directorate General of Shipping imposed a14-day quarantine on shipping vessels arriving from any port in China or any COVID-19affected nation.

While vessels arriving after14 days of departure from a country where the virus had spread were not required to comply with the

additional precautionary measures, those recording stoppages at any port of affected nations for refueling were not to be considered for the calculation of this14-day transit.

As a result of these restrictions and complexities in the stipulated docking norms, "significant pile-ups "were reported at India’s major ports (state-owned) and key container transhipment hubs, an official involved in the exercise said.

This was accentuated by the staff shortage at ports due to rotational rostering since the lockdown.

Ports that were not able to comply with the specified requirements were simply told not to allow berthing for vessels that arrived within 14 days from the infected countries, which further added to the pile-up.

Compounding the problem further,some70 percent of truckers serving JNPT in Mumbai, India’s busiest container hub, have abandoned work and gone back to their villages following the outbreak and the subsequent clampdown.

Most of the private ports and terminals operating in the country have invoked the force majeure clause as most of them are involved in end-to-end contracts and operations were badly disrupted for a variety of reasons.

Port Congestion Adds to Exporters’ Woes NewDelhi Port Wings News Network mport containers have piled up at ports as manufacturing of non-essential goods is yet pick up under the lockdown, prompting some ports to shut export gates, according to a ET report.

India’s exports shrank almost 35% in March, the biggest contraction in almost a decade, reflecting the global slowdown made worse by the Covid-19 pandemic.

Exporters looking to restart operations are confronted with multiple issues including additional costs due to stringent norms, cash flows and getting labour back to work.

Shipping lines are skipping Indian ports due to lack of yard space is the concern that Indian exporters and importers have begun facing as trade opens up. JNPT is preparing a contingency plan to clear congestion.

While there was a marginal increase of 50 more special economic zones (SEZ) becoming operational on Monday, with another 50 starting work from home, the numbers vary among states, exporters said higher compliance cost associated with bringing and maintaining labour are hindrances in restarting factories.

“We will watch the situation for one week,” said one official.

Exporters have already flagged these issues with the government as they sought a lump sum amount,

I

especially for the small units to be able to meet new compliance costs.

“Owners need to give a guarantee that the labour is not coming from any containment zone. There is also a fear in the employers that even if there is one positive case, they would be held liable,” said Ravi Sehgal, chairman EEPC. “Ports have their own problems.

Many inbound containers are lying at ports whose delivery is not happening and that is another crisis for exports,” said Ajay Sahai, director general, Federation of Indian Export Organisations.

JNPT, which handles around 8,000 containers of which 2,000 are reefer containers, is preparing a contingency approach in case of congestion.

“We have a contingency approach and don’t need to send the consignments to other ports,” said Sanjay Sethi, chairman, JNPT, adding that the port is prepared for the worst case scenario when no evacuation of consignments happens for two months.

While temperature-sensitive cargo such as food and pharmaceuticals are fast moving, exporters have complained that exports are getting adversely impacted since raw materials are lying at ports JNPT expects around 67 vessels to come by April 30 and there is no skip in that, sources said. Almost 9092% of the imports that happened this time last year, are happening at the port in the last 4-5 days.

Indian Register of Shipping Celebrates Commissioning of Coastal Research Vessel Sagar Anveshika Chennai

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Port Wings News Network ith the commissioning of coastal research vessel Sagar Anveshika earlier this year, the Indian Register of Shipping (IRClass) celebrated yet another collaborative success with the Indian shipbuilding ecosystem.

Built under IRClass, Sagar Anveshika is a DP1-capable vessel fitted with state-of-the-art equipment that allows her owner, National Institute of Ocean Te c h n o l o g y (NIOT/ Ministry of Earth Sciences,Govt of India) to carry out environmental indexing and bathymetric surveys in both coastal and offshore waters.

Sagar Anveshika is the second of two coastal research vessels built for NIOT, by M/s. Titagarh Wagons Ltd, with the first being Sagar Tara which was delivered in August 2019.

The two vessels are set to augment NIOT’s research capabilities.

Apart from classification, IRClass provided assistance to the owners in seamless integration of research equipment including the laboratories and deck machinery, to ensure that both the vessels satisfy the Scientific Mission Requirements, while complying

with applicable rules, conventions, regulations and the flag state.

“We thank IRClass for its contribution which led to successful completion of the project without delays and cost overruns” said Dr M A Atmanand, Director NIOT. “We look forward to future collaborations with IRClass on mutually-beneficial projects of significance not only to our respective organisations but to the maritime ecosystem at large”,

said Dr D Rajasekhar, Project Director Vessel management cell, NIOT. Mr Vijay Arora, Joint Managing Director, IRClass, said: “The successful commissioning of Sagar Anveshika bears eloquent testimony to the hard work of the owners, ship builders, ship designers, and all those who were involved with the project. IRClass is proud to be part of the Indian maritime ecosystem that continues to deliver high quality ships that meet the requirements of discerning owners worldwide.”

Apr. 29th - May 5th Issue

As Govt Wields Stick, EXIM Logistics Players Fall in Line

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Mumbai

Port Wings News Network he Director General of Shipping made it more ‘binding’ on carriers not to levy container detention charges on exportimport shipments till 3 May, according to a BusinessLine report.

A government move asking shipping lines, container freight stations, state-owned ports and private terminal operators therein to forego a plethora of charges to help exporters and importers sail out of the hard times brought on by the outbreak of coronavirus is starting to yield results, despite reservations from many quarters.

During the first bout of lockdown from March 24 to April 14, only a few among the shipping lines, terminal operators, CFSs, and major port trusts heeded a Shipping Ministry advisory not to collect penal charges arising from reasons attributed to the lockdown. A large section ignored the Ministry advisory.

A raft of complaints from the EXIM trade community against those who didn’t “listen” to the advisory forced the Ministry to talk tough when it unveiled a relief package on Tuesday for port users and troubled publicprivate partnership (PPP) cargo terminal operators at major ports.

The Ministry had initially planned to circulate the relief measures involving exemptions and remission of various charges till 3 May from 14 April earlier, as a normal departmental order (DO) to the major ports.

But, on sensing that this ‘route’ may not serve the purpose, judging even by the concerns raised by some of the port chairmen against the move, the Ministry formulated the package on 21 April and “directed” the major ports to “issue relevant applicable orders for both remission and force majeure in their respective ports and forward the copy of port’s order to the Ministry of Shipping within seven working days”.

The Ministry further directed that the “ports shall ensure strict implementation of this order by port users including PPP concessionaires, CFS, ICD, shipping lines, etc”.

“If required, ports shall invoke relevant provisions of agreements and take appropriate action”, the Ministry wrote in the package.

DGS order On 22 April, the Director General of Shipping (DGS) issued an order asking shipping lines not to levy container detention charges on export-import shipments during the extended lockdown period till May 3.

In an earlier order on March 29, the DGS had “advised” lines not to collect container detention charges from March 22 till April 14.

A similar order was issued by the DGS on March 31, “advising” shipping lines not to levy various charges on non-containerised cargo (bulk, break bulk and liquid) from March 22 to April 14.

On Wednesday, the DGS issued an order extending this period till May 3, sans the “advisory” and made it more “binding” on the carriers.

“It is now decided, that for the second lockdown period, the shipping companies or carriers (and their agents) shall not charge….on cargo owners/consignees of non-containerised cargo…”.

The efforts are paying off. On Thursday, DP World said in a trade notice that it “will not be levying storage charges on all containers from March 22 to May 3” at its container terminal in Cochin Port Trust.

Shipping lines, though, are yet to come out with a matching circular waiving of various charges during the extended lockdown period.

“Shipping lines are not keen on following the directions given by the Ministry and DGS. There are over 100,000 importers, but they want some 50 CFSs and 10 shipping lines only to bear all the burden. How is it possible? The Ministry and DGS have no jurisdiction over the charges levied by lines and CFSs in what is a free-market,” said a shipping industry executive.

To be sure, the Ministry and DGS directions are not applicable to private ports, making these orders skewed towards state-owned ports, which handles some 52 per cent of India’s external trade.

Ex-DG Shipping Malini Shankar to Head National Shipping Board New Delhi Port Wings News Network he government has approved reconstitution of the National Shipping Board to be headed by former Director General of Shipping Malini Shankar, according to a PTI report in Business Standard quoting an official said.

The National Shipping Board (NSB) is the highest advisory body on matters related to Indian shipping including the development

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there of and on such other matters arising out of the Merchant Shipping Act. The shipping ministry has approved reconstitution of the 16-member NSB, which will be headed by former Director General of Shipping Malini Shankar, as per a

communication from the ministry to the DG Shipping.

The members of the Board include DG Shipping Amitabh Kumar, Joint Secretary Shipping Satinder Pal Singh, one representative each of the Indian Navy and Indian Coast Guard, not below the rank of Directors, National Union of Seafarers of India representative Abdulgani Serang, Maritime Union of India representative Amar Singh Thakur and National Ship Owners' Association representative Anil Devli.

Indian Coastal Conference Shipping Association member Aditya Suklikar, International Maritime Federation representative Capt Sanjya Prashar, Coastal Container Transporters Association representative Rahul Modi, Federation of Indian Exporters' Organisation representative Ajay Shah and Association of Multimodal Transporters of India representative Shantanu Bhadkamkar are also the members of the Board.

Besides, Capt Piyush Sinha, Balasubramaniam and Ishwar Achanta have been inducted as members of NSB.

5

CFS Operators Against Waiver of Penal Charges for Container Storage

A

Chennai

Port Wings News Network controversy has erupted on waiver of all penal charges for container detention, demurrage and storage payable on import or export by custodians ― ports, Container Freight Station (CFS), Inland Container Depot (ICDs) and shipping lines to give relief to EXIM trade due to Covid-19 pandemic, according to a BusinessLine report.

Generally, a period of three days is allowed as free period, after which charges are applicable at various custodians.

And, if the lockdown is removed on May 3, the controversy, if not sorted out quickly, could snowball into a major showdown between the EXIM and CFS operators (31 in Chennai and 34 in Mumbai).

In Chennai, inventory at CFS and all three ports and four terminals put together should be around 75,000 containers. Another 15,000 could be added in the next couple of weeks.

There will be a staggering 85,000 to 90,000 containers to be moved out of ports, terminals, and CFSs. The ‘showdown’ could affect the movement of boxes to importers and could lead to chaotic situations, said an official of a Custom House Agency.

The whole issue started on March 29 when the Director General of Shipping ordered all custodians to waive penal charges during the lockdown period from March 22 to May 3.

However, oeprators of CFS ― an extension of ports to handle/store containers ― in Mumbai and Chennai opposed this stating that they are not bound by the directions of DG Shipping or Tariff Authority for Major Ports but regulated only by the Handling of Cargo in Customs Areas Regulations (HCCAR), 2009.

Taking a similar stand, the Chennai Chapter of the National Association of Container Freight Stations (NACFS) said that demurrage and other charges payable by the importer will act as an incentive to importers,

thereby making them clear the container from the CFS at the earliest. It urged withdrawal of government directives to the CFSs on the waiver of charges. The CFSs have moved over 50,000 containers to various CFS outlets from the ports/terminals with just 10 per cent cleared by importers.

However, the Central Board of Indirect Taxes and Customs (CBIC) on April 23 directed its Commissionerates to ensure strict compliance with the DG Shipping order by the Container Freight Stations. This follows complaints that Container Freight Stations are insisting on full payment of ground rent and other charges for delay in clearance of containers that could not be cleared due to lockdown.

The Chennai Port Trust urged NACFS members to comply with the government advisories.

Even the Minister of Maharashtra for Textiles, Fisheries and Ports has written to the Minister of Shipping, Government of India that the advisories of the Ministry are disregarded by a private CFS in Mumbai and there should be strict instruction to the CFS to waive the storage during lockdown period including refund wherever collected.

A V Vijayakumar, Chairman, Federation of Freight Forwarders Association, collecting a penal charge (not handling tariff). which they are ineligible as per the directive of the Ministries of Finance and Shipping. is grossly incorrect. There is not a single industry which is not suffering and any custodian or carrier exploiting the situation needs to be made answerable for violating Centre's directive, he added.

S Natarajan, President, Chennai Customs House Agents Association, said some of the CFSs have agreed to waive the charges.

However, those who are not provided are violating the directions of CBIC. Shipping lines / NVOCC did not adhere to the orders stating that they have not heard from their head offices, he added.

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6

Vessel Position at Terminals - (29.04.2020 To 06.05.2020)

Apr. 29th - May 5th Issue

7

CITPL - Chennai

CCTL - Chennai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

29/04

30/04

SIF

SPIRIT OF MUMBAI

18

MSC1

Colombo

01/05

02/05

FME

BLANDINE

891E

FTD

Port Klang, Singapore, Manila, Pusan, Shanghai, Hong Kong

4-5

5-5

IEX

MOL GUARDIAN

2011

ONE

Colombo, Damietta, Piraes Rotterdam, London

04/05

05/05

TCXNEW

VERMONT TRADER

007E

RCF

Chennai WestPort Klang, North Port Klang, Singapore, Laem Chabang

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

30/04

30/04

TUX

MV.OEL SHRAVAN

20028

TW

COLOMBO, TUTICORIN, COLOMBO

1-5

1-5

COLOMBO FEEDER

MV.MAERSK AVON

2031

BTL

COLOMBO, TUTICORIN, COLOMBO

1-5

2-5

BOX

MV.SSL BHARAT

1

TW

COLOMBO, TUTICORIN, COLOMBO

2-5

3-5

FAR SHIPPING

MV.VLADIVOSTOK 1

123S

CTS

COLOMBO, TUTICORIN, COLOMBO

Kattupalli ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

30/04

1-5

CCG

NEYYAR

9

SIM

Cochin , Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam

03/05

4-5

TCX

VERMONT TRADER

007W

RCF

Chennai WestPort Klang –North Port Klang–Singapore –Laem Chabang

APM Terminal - Mumbai ETA

ETD

Service

Vessel Name

29/04

30/04

ME3

30/04

1-5

2-5

Voy

Agent/Line

Calling Ports

MAERSK KITHIRA

MSK

Port Qasim, Nhava Sheva, Pipavav, Colombo, T.Pelepas, Tanjung, Singapore, Hong Kong, Ningbo, Pusan, Kwangyang, Qingdao, Dalian, Xingang

PS3

ONE CONTRIBUTION

ONE

Pipavav, Port Klang, Singapore, Shangai, Ningbo, Xiamen

3-5

FM3

MAERSK TANJONG

MSK

Pipavav, Hazira, JNPT, Jebel Ali, Salalah, Port Said, Mersin, Ambarli Port, Izmlt Korfezi, Novorosslysk

1-5

2-5

ASX

NORTHERN GENERAL

SMM

Jebel Ali, Mundra, Hazira, Nhava Sheva

3-5

4-5

TIP

MOL GRANDEUR

ONE

Jebel Ali, Mundra, Hazira, Nhava Sheva

05/05

06/05

CIX

WAN HAI 503

WHI

Jebel Ali, Mundra, Hazira, Nhava Sheva

05/05

6-5

ME3

MAERSK KLAIPEDA

MSK

Port Qasim, Nhava Sheva, Pipavav, Colombo, T.Pelepas, Tanjung, Singapore, Hong Kong, Ningbo, Pusan, Kwangyang, Qingdao, Dalian, Xingang

NSICT - Mumbai ETA

ETD

Service

Vessel Name

29/04

30/04

IIX

30/04

1-5

30/04

Voy

Agent/Line

Calling Ports

NEGAR

RIS

Colombo, Damietta Piraes Rotterdam, London

INDUS

MSC VALENCIA

MSC

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

1-5

MESAWA

SEASPAN LEBU

CCA

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

1-5

2-5

AIM

MONTPELLIER

HLI

3-5

4-5

GIX

SCIO SKY

PRD

Port Elizabeth, Durban, Port Louis, Jebel Ali, Mundra, JNPT, Colombo

3-5

04/-5

MECL

MAERSK DENVER

MSK

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

3-5

4-5

IEX

CAPE MORETON

SBG

Colombo, Damietta Piraes Rotterdam, London

5-5

6-5

MESAWA

HAMMONIA AMERICA

MSK

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

Bharat Mumbai Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

01/05

01/05

SWAX

BERMUDA

L0020

CMA

DAR, JEC, JEA, MUN, MBA

02/05

03/05

EPIC2

COSCO BELGIUM

L0092

COS

TNG, JED, MUN, LEH, LGP, HAM, ANR, RTM

03/05

04/05

CIX

HYUNDAI LONG BEACH

L0091

HMM

PUS, NGB, SHK, KAN, SHA, DCB, SIN, PKG, KHI, MUN

As the data is received by us, sometimes even at the eleventh hour by telephonic messages from the concerned Steamer Agents, there is every likelihood of last minute changes in the data published for which and also for the printing errors occuring the Management of Port Wings is not responsible or liable.

NCT, Krishnapatnam ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

5-5

6-5

ACS

Hyundai Premium

066W

Hyundai, RCL & XCL

Krishnapatnam, West Port Klang, Singapore, Cailan, Busan, Ulsan, Shanghai, Ningbo, Yantian

4-5

5-5

CHX

Northern Promotion

019E

Maersk & Safmarine

Ennore, Krishnapatnam, Visakhapatnam, Tanjung Pelepas, Xingang, Qingdao

3-5

4-5

IEX

Al Rawdah

2013E

Hapag ,ONE,COSCO,OOCL

Colombo, Damietta Piraes Rotterdam, London

2-5

3-5

MAERSK SHUTTLE

Mexico

2014

Maersk & Safmarine,XCL

Colombo, Salalah

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

28/04

20/04

KAK>IXZ

TCI LAKSHMI

906

BOTHRA

30/04

1-5

KAK>CMB

KAPITAN AFANASYEV

1025

FAR SHIPPING

Calling Ports

Halida, Colombo

DP World Partners With Akshaya Patra To Provide COVID-19 Relief Support

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Mumbai

Port Wings News Network eaffirming its commitment to the society and the country, global logistics company DP World has partnered with non-profit organisation Akshaya Patra Foundation to support underprivileged section of the society impacted by the outbreak of the COVID-19 pandemic.

DP World in partnership with Akshaya Patra, is providing free cooked meals to daily wage labourers, homeless people and low-income group families across India. The nationwide lockdown necessary for containing the spread of COVID-19 has adversely affected the underprivileged section of the society. The company is committed to support the local communities during these challenging times. DP World is also providing dry rations to those who depend on daily wages or have lost their livelihoods during this time. Food supplies are being provided to the local communities around DP World’s port terminals in Cochin (Kerala), Nhava Sheva (Maharashtra), Mundra (Gujarat) and Chennai (Tamil Nadu).

Rizwan Soomar, CEO and MD, DP World Subcontinent said “In these unprecedented times, numerous people from economically weaker section of the society do not have access to food and other necessities. Through our partner Akshaya Patra we are offering free cooked meals to thousands of families across the country. We are also distributing dry ration kits to the workers who are living in and around our facilities. It is our commitment to provide support to the communities around us.

We have already initiated several programs in association with our NGO partners.

We are committed to help the country in the fight against Coronavirus. As a leading logistics company, we are ensuring the continuous flow of essential goods across the country. All port terminals and inland freight

terminals of DP World at Cochin, Nhava Sheva, Mundra, Chennai, Ahmedabad, NCR and Hyderabad are operating 24x7. These are supported by our Rail operations, CFSs, Warehouses, Express, 3PL and Cold Chain businesses, and have collectively ensured that the lockdown has minimal impact on trade and economy.”

Sundeep Talwar from The Akshaya Patra Foundation said, “Through our network of kitchens we are providing cooked meals across various states. We aim to provide 1 Crore cooked meals and 5 lakhs packed grocery kits to families impacted by the outbreak of Coronavirus pandemic in India.

Corporate partners like DP World are helping us achieve that goal. We thank DP World for their support and look forward to collaborate closely during these challenging times to ensure food relief reaches to the people in need.”

DP World has undertaken various sustainability initiatives targeted towards education, healthcare and disaster relief. DP World has contributed heavily to increase accessibility of healthcare in remote locations through ‘Sehat Ki Sawari’, a mobile medical unit across 30 villages. Additionally, the organization is deeply invested in disaster relief efforts in Kerala through the ‘Rebuild Kerala’ project that is addressing rehabilitation of flood affected community members.

Akshaya Patra is a Bengaluru based nonprofit organisation that operates in partnership with the Central Government and various State Governments to offer cooked meals to school children. They provide 18 lakh meals every day to government school children across the country through the mid-day meal programme. The Akshaya Patra Foundation has begun its COVID-19 relief services by providing healthy, cooked meals and dry ration kits to thousands of people.

Apr. 29th - May 5th Issue

Finnlines Zero Emission Green 5th Generation Vessels Supervision Contract Awarded to SeaQuest Chennai

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Port Wings News Network eaQuest Marine Project Management has been entrusted with the prestigious construction supervision job for three Green 5th Generation zero emission NB Ro-Ro vessels for Finnlines at China Merchants Group’s Nanjing Jinling Shipyard.

Finnlines Plc, a Finnish shipping company and part of the Grimaldi Group, had placed the order of the three Hybrid Ro-Ro Ultra-Large Green vessels at Jinling Shipyard back in 2018.

The vessels, whose basic design was developed by Danish ship designer Knud E. Hansen, are based on the same hull as the Grimaldi Green 5th Generation (GG5G) vessels under construction at the same yard (238m length, 34m beam), but customized to the needs of Finnlines allowing for heavy cargo and operation in cold climates with the highest Finnish/Swedish ice class 1A Super. They aim to be flexible enough for all types of RoRo cargoes, with a capacity of 5,800 lane meters and more than 5,000 square meters of vehicle decks.

The vessels will be built with the latest technological and environmental solutions in mind.

The new Ro-Ros will implement green features such as lithium

batteries to provide electricity, guaranteeing zero emissions whilst in port and an innovative air lubrication system to reduce hull resistance using a thin layer of bubbles below the keel to ensure the lowest CO2 emissions.

The supervision site office at Jinling yard will open at beginning of June 2020 and function until the delivery of the last vessel which is expected by the end April 2022.

Announcing the contract, SeaQuest Managing Director and Chief Executive, Jan Andersson, said: “We are extremely pleased to be selected to look after the construction of these challenging and advanced vessels, which will be the most innovative and efficient ro-ro vessels in the world.

Finnlines has invested heavily in technology and sustainability of the fleet operations and the company is a forerunner in green shipping."

He added: “We shall prove

once more that our experience in supervision and familiarity with Far Eastern builders can serve a newbuilding project like no one else. This is the second time Finnlines have bestowed their trust in SeaQuest for a project in China, we are privileged and look forward to collaborating with them again in future”.

The site team, composed of a SeaQuest Site Manager and specialist supervisors for machinery & outfitting, hull & structure, electrical & automation, coating and a secretary / document controller, will also include Finnlines inspectors along with support of the Finnlines newbuilding department, and operate in accordance with SeaQuest’s ISO 9001:2015 certified QA system.

Particular attention will be paid to the special requirements of these large vessels which include ice-class, winterization, green & energy saving solutions and operational flexibility.

The site team will operate under the mentorship and guidance of Jan Andersson who is a Far East resident. As the Project Manager for the newbuild project he will provide guidance, support and direction for any major or strategic issue which may impact on key events, ships’ delivery or cost.

AIAI Fears Extension of Lockdown Leading to Job Loss and Business Loss Mumbai Port Wings News Network ith 90% of the trade, employment and business in Metro cities of Mumbai and Pune shut down , extension of lockdown is set to arrest hopes of many, says Mr Vijay Kalantri, President All India Association of Industries.

25 lakh jobs mostly in retail , small and micro units mostly daily wage earners will be left with no means of gainful employment if lockdown continues. What is the use of EPF withdrawal to such jobbers who might not have had an EPF account at first place and are daily wagers? Stressed Mr Kalantri. What the workers need is cash in hand to buy their daily bread?

The lockdown now continuing almost above a month these workers have been out of rations staying in dingy homes with no access to movement ?

Moreover how are businesses going to pay salaries to these workers in absence of transportation and majorly when cumulative losses are set to explode at Rs 1lakh Crore and above. Mainly in case of MSME and midcap in addition to revenue

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loss for exchequer.

AIAI calls for phased termination of lockdown critical for survival of jobs and business!

Employers can arrange for sanitized personal transport till the start of public transport to aide reporting of atleast 50% of the jobbers a day and kickstart the business operations. There could also be effective testing over period of fortnight and thus enhance measure taken to stop spread of infections.

This would also mean as a satellite operation for the workers who would be capsuled between home and work with applicable requirement in place.

Social distancing can be made mandatory and run through the entire operations . As the situation demands both resumption of work with applicable precautions on par at work place as at home against infections . Moreover, they would be in a large space with only 50% workers this will help more in social distancing.

There could be sanitization of offices as well , thus assuring the safety of the staff and at the same time breed herd immunity.

Government should consider phased opening of the lockdown and ease the pressure on the economy or else MSME and Mid cap may not see the light of the day.

We have already retreated 20 years behind in history in terms of growth and capacity utilization with no recourse to operations with total shutdown such as this .

Containment zones can be possibly put on red alert with tight security measures for lockdown.

Over a month long lockdown has still not able to lock upon the arrival of new cases . There is a daily reporting of cases thus in a way indicating the failure of implementation of this lockdown.

Being at home infact with no fruitive activity in hand has led to the public roam freely inspite of being prohibited is the fact of the day .

Controlled commuting to work and occupation in hand with the above precautions will infact prove to be a gamechanger in controlling the COVID19 menace.

Infact this will assist the local healthcare officials to tap on miscreants as there will be a filtering of people from the streets to work places, added Mr. Kalantri.

Metal Shark announces new 55-foot pilot boat now under construction Chennai

Port Wings News Network etal Shark says its is building a welded aluminum 55’ x 17’ pilot boat for the Pascagoula Bar Pilots Association in Mississippi.

Designed in-house, the new 55 Defiant Pilot being built for Pascagoula Pilots represents the latest evolution in Metal Shark’s pilot boat lineup. The distinctive vessel incorporates the“faceted hull” design initially developed by Metal Shark for the US Navy 40 PB program, and features an enhanced version of Metal Shark’s signature

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“pillarless glass” in a two-tiered, reverse-raked arrangement.

Metal Shark initially implemented automotive-style frameless glass into its pilothouse designs to eliminate the dangerous blind spots common on legacy pilothouse designs fitted with smaller, framed windows. As a further evolution of this concept, the new 55 Defiant’s pilothouse features a second tier of glass, drastically improving downwards-angle visibility during man overboard retrieval, or while operating alongside another vessel.

Meanwhile, large overhead spotter windows provide unimpeded

upwards visibility during pilot transfer maneuvers. The net result is near-elimination of blind spots from within the pilothouse.

While its Defiant-class monohull pilothouse vessels are popular among a wide range of operators, Metal Shark has developed a wholly unique arrangement optimized specifically for pilots. Flat, nonskid decks run from bow to stern and allow pilots to move quickly and safely around the vessel.

Safety rails and grab handles are carefully placed, and pilot boarding platforms are configured to suit the requirements of each client.

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NEWS - BITS Container Terminal Saint-Petersburg Takes Delivery of Three New Konecranes RTGs Container terminal Saint-Petersburg says it took the delivery of three new Konecranes RTGs for container handling.

It is the first batch of five new rubber-tired gantry cranes to be delivered this year under the programme for development of the terminal’s production infrastructure.

The fleet of the terminal’s container yard equipment will thus be expanded to 24 RTGs in 2020. The equipment will be used for moving and stacking containers at the terminal’s rear yards. The cranes of 50 tonnes in capacity are able to make stacks of 5+1 containers high and 7+1 containers wide.

The cranes’ fully electromechanical drive system ensures high reliability and performance of the equipment as well as reduction of expenses for maintenance and spare parts. The RTGs are fitted with DGPS Autosteering for keeping straight driving path and additional safety systems involving laser sensors as well as an operator cabin complying with the current ergonomics standards.

The new cranes will be put into operation upon installation of additional equipment (radio antennas and terminals) and upon their registration by the Federal Service for Environmental, Technological and Nuclear Supervision.

Container terminal Saint-Petersburg CJSC (CTSP) is a modern facility specializing in handling of all types of container cargo, including refrigerated containers, oversize and hazardous cargoes. In 2019, container throughput at CTSP reached 758,610 TEUs.

Huntington Ingalls Industries Delivers Guided Missile Destroyer to U.S. Navy

Huntington Ingalls Industries (NYSE:HII) says that its Ingalls Shipbuilding division the Arleigh Burke-class guided missile destroyer Delbert D. Black (DDG 119) to the U.S. Navy April 24.

Documents signed on Friday mark the official transfer of custody of the ship from HII to the Navy. Delbert D. Black is scheduled to sail away from the shipyard in August 2020.

“We are proud to deliver our 32nd state-of-the-art destroyer to the Navy,” Ingalls Shipbuilding President Brian Cuccias said. “Our workforce plays a critical role in protecting those who serve our nation. We continue to fulfill our mission as shipbuilders by building highly capable warships that meet and exceed the needs of our military partners.”

DDG 119 is the first ship named in honor of Navy veteran Delbert D. Black, who served as a gunner’s mate and was aboard the battleship USS Maryland (BB 46) during the attack on Pearl Harbor, Hawaii.

The shipyard currently has four more DDGs under construction including Frank E. Petersen Jr. (DDG 121), Lenah H. Sutcliffe Higbee (DDG 123), Jack H. Lucas (DDG 125) and Ted Stevens (DDG 128).

Med Marine hosts keel-laying ceremony for Svitzer’s TundRA 3000 design icebreaking tugs Med Marine says it has held an official keel-laying ceremony at Ereğli Shipyard for two icebreaking tugboats with hull numbers ER84 & ER85 on April 16th, 2020. Med Marine and Svitzer signed a newbuilding contract for two icebreaking tugboats last September.

Kim Caspersen, New Building Site Manager by Svitzer, expressed his thoughts and said: “Svitzer are very pleased to achieve this Milestone during these difficult times and appreciate Med Marine efforts to continue block production for timely delivery of the 2 tugs for the Scandinavia fleet to serve our Northern European costumers. We are very satisfied with the progress and co-operation until now and looking forward to have the vessels delivered at the highest possible standard and live up to our crew and operational expectations.”

Ereğli Shipyard’s shipyard manager, Kemal Bektaş also shared some opinions about projects and stated “This prestigious collaboration between Svitzer and Med Marine is very exciting in terms of experiencing operational needs of different locations. Our high capacity shipyard is capable of building vessels in versatile sizes and features. We are working meticulously on ER84 & ER85 and they will be well-suited for Svitzer’s Scandinavian fleet.”

CUSTOMS EXCHANGE RATES Notification No.39/2020 (N.T.) ALL RATES PER UNIT

FOREIGN CURRENCY Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc Turkish Lira UAE Dirham US Dollar Japanese Yen (100) Korean Won (100)

with effect from 17th April 2020

RATE (INR) Import Export 49.30 206.20 55.30 11.00 11.40 85.00 10.10 254.65 46.95 7.40 97.40 21.75 21.10 54.60 4.25 7.75 80.85 11.45 21.60 77.65 72.40 6.45

47.10 200.90 53.45 10.70 11.00 81.95 9.75 238.80 44.75 7.15 94.05 20.45 19.80 52.80 3.95 7.50 77.80 10.75 20.25 75.95 69.80 6.05

We are not responsible for any mistake. ALL RATES ARE PROVISIONAL. The rates in these column are only meant for guidance.

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

8

DP World Reports Stable Volumes In 1Q2020 – Outlook Challenging

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Chennai

Port Wings News Network P World PLC handled 17.2 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in the first quarter of 2020, with gross container volumes decreasing by 1.7% year-on-year on a reported basis and up 0.3% on a like-for-like basis. Reported volumes declined in Asia Pacific and India Region due to the expiry of concession in Surabaya (Indonesia) and disposal in Tianjin (China).

Jebel Ali (UAE) handled 3.4 million TEU in 1Q2020, down 3.4% year-on-year, due to loss of lower-margin cargo. Like-for-like growth in Asia, Middle East and Africa was offset by weakness in India, Europe and Australia.

At a consolidated level, our terminals handled 10.3 million TEU during the first quarter of 2020, increasing 12.9% on a reported basis and up 0.9% year-on-year on a like-for-like basis. Reported consolidated volume in the Americas and Australia region was boosted by the consolidation of Australia, Caucedo (Dominican Republic), acquisition of container terminals in Chile and commencement of operations in Posorja (Ecuador).

Commenting on the results, Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem said, "While DP World has delivered a resilient performance in 1Q2020 with like-for-like throughput broadly flat year-on-year, the real impact of covid-19 will be seen from 2Q2020 onwards. Global trade and container volumes are forecast to decline in 2020 and the wide range of estimates by industry specialists (Drewry -3%, Sea-

Intel -10%) further emphasizes the short-term uncertainty faced by our sector. Similarly, the timing of any recovery is uncertain with trade expected to pick-up as and when global economic activity normalizes."

Sultan Ahmed Bin Sulayem stated: "Given the more challenging environment, our near-term focus is on integrating our recent acquisitions to drive synergies, containing costs to protect profitability, managing growth capex to preserve cashflow and maintaining our investment grade rating. On a more positive note, DP World's investment in digital technology and automation has allowed us to minimize the disruption faced at our ports

and we remain operational. Importantly, we continue to work with our customers and various governments to ensure supply chains remain open for the movement of essential and critical cargo across the world."

"Overall, the outlook is a cause for concern, but we remain positive on the long-term fundamentals of the industry. Furthermore, our strategy of providing integrated supply chain solutions to beneficial cargo owners leaves us well placed to benefit early from any sustained recovery in the global economy," added Sultan Ahmed Bin Sulayem.

Apr. 29th - May 5th Issue

Hapag-Lloyd Publishes 2019 Sustainability Report

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Hapag-Lloyd got started with its planning early on and made the necessary conversions to its fleet. Since the beginning of the year, approximately 95 percent of Hapag-Lloyd’s vessels have been operating using lowsulphur fuel oils, which emit over 70 percent less sulphur oxides than the heavy fuel oil previously in use.

In the current year, Hapag-Lloyd will take more steps on the path towards the decarbonisation of ocean-going shipping. The IMO has set ambitious milestones for 2030 and 2050, with the aim of reducing CO2 emissions by 40 and 50 percent, respectively, compared to 2008. To help achieve these goals, HapagLloyd will be the first shipping company in the world to start converting a large container ship to operate using a more climate-friendly liquid natural gas (LNG) propulsion system. The conversion work on the "Sajir" is expected to commence in the fourth quarter of 2020. In addition, Hapag-Lloyd will continue to work on alternative fuel solutions. For example, an initial test using a biofuel based on used cooking oil was launched at the beginning of the year.

Sustainability is a common task For Hapag-Lloyd, sustainability means not only the implementation of measures, but also and especially dialogue and exchange.

"Our sustainability measures also take into account the well-being of future generations.

This makes it all the more important to bring all relevant parties – our employees, customers and shareholders, too – along on this journey.

Sustainability is a common task, and it can only be achieved together with strong partners," says Jörg Erdmann, Senior Director Sustainability Management.

"Sustainability is a marathon rather than a 100-metre sprint. Given this fact, the issue will remain on our strategic agenda for the long term and be given high priority – also and especially in 2020, which has been an unusual year for all of us," CEO Rolf Habben Jansen adds.

Chennai

Port Wings News Network ignificant reductions in CO2 emissions per container transported, a successful conversion of the vessel fleet to operate using low-sulphur fuel oil, and considerable improvements in quality – these are the key advances that Hapag-Lloyd made in the 2019 financial year in terms of its sustainability strategy. Today, the company is presenting its third sustainability report.

Rolf Habben Jansen, CEO, Hapag-Lloyd, said, "Sustainability is more than just climate protection, as it also comprises ecological, economic, social and qualitative concerns in equal measure. In 2019, we succeeded in making a lot of progress in all four dimensions.

For example, we furthered reduced our specific CO2 emissions, strengthened our social commitment and made huge investments in the quality of our service," Rolf Habben Jansen stated: "This year, as well – despite the adverse effects of the COVID-19 crisis – we will continue to focus on additional improvements, including technological and digital innovations as well as further reductions in the emissions of our fleet."

Improvements in all sustainability dimensions One important sustainability objective of Hapag-Lloyd is reducing emissions.

Compared to the reference year 2008, we have succeeded in reducing our specific CO2 emissions – meaning CO2 emissions per TEU/kilometre – by 50 percent. There have also been improvements when it comes to air quality. The new specifications on the maximum sulphur content of marine fuels issued by the International Maritime Organization (IMO) have been in force since 1 January 2020. Preparing for the so-called IMO 2020 regulations was accordingly one of the main focuses of the 2019 reporting year.

Thank You Torchbearers of Economy Logistics is the lifeline of the country and many at times your service to our nation gets unnoticed.

Our State Government in accordance with Government of India enforced the lockdown due to the COVID-19 Pandemic on 24 March 2020.

While most of us followed our government directive to stay at home and rightly so, some essential services like logistics industry comprising of CFS, CFS’s admin staff, container crane operator, yard in charge, system management staff, security personal, gate in charges, top management of CFS, doctors, fumigation agents, staff, facilitators, Customs officers, and most importantly drivers of container-laden vehicles, have put their life at risk and selflessly worked towards movement of import and export containers.

We at Fumigation Services salute you all from the bottom of our heart for the incomparable, unparalleled service even during this pandemic situation and for being the backbone of our economy.

THANK YOU

FUMIGATION SERVICES PVT LTD.,

36

No.1, Buddu Street, 3rd Floor, Chennai - 600 001

www.fumigationservice.com For Booking For PQ Arrangements For New Enquires

: 4242 7777, 2521 3409, 2522 1241 : 2521 7488, 2224 2175 : 2522 0626, 2522 5061, 2524 0672

booking@fumi.in pqfumigation@fumi.in fumi@fumi.in

Branches: Bangalore, Cochin, Coimbatore, Delhi, Guntur, Hosur, Hyderabad, Kakinada, Krishnapatnam, Mangalore, Mumbai, Mundra/Gandhidham, Tuticorin, Vizag

WASH YOUR HANDS OFTEN

AVOID CLOSE CONTACT

SANITIZE CONSTANTLY

WEAR A FACE MASK

AVOID CROWDED COVER COUGHS places AND SNEEZES

Port Wings - Maritime Exim Weekly Newspaper : Published by K.Sivakumar on behalf of Universal Media Associates, Old No.72, New No.149, 1st Floor, Srinivasa Complex, Linghi Street, Mannady, Chennai - 600 001. And Printed by V.Meganathan at Web Kingdom, No.115, Jani John Khan Road, Royapettah, Chennai – 600014. Editor: K.Sivakumar.