Port Wings Maritime Exim Weekly 18 Nov 2020 Issue

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Nov. 18th - 24th Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, November 18, 2020 8 Pages

Shipping Minister Mandaviya Unveils Plaque of Ministry’s New Nomenclature New Delhi Port Wings News Network nion Minister of State (I/C) for Ports, Shipping & Waterways and Chemicals & Fertilizers Shri Mansukh Mandaviya unveiled the plaque of Ministry’s new nomenclature in New Delhi on 12 November 2020.

Ministry of Shipping is renamed as the Ministry of Ports, Shipping

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and Waterways (Pattan, Pot Parivahan aur Jalmarg Mantralaya).

Prime Minister Shri Narendra Modi announced the renaming of Ministry of Shipping while addressing,

through video-conferencing, the inaugural ceremony of Ro-Pax ferry service between Hazira and Ghogha in Gujarat on 8 November 2020.

While making this historic announcement, Shri Modi said “Now this Ministry will be known as Ministry of Ports, Shipping and Waterways. It is being expanded. In most of the developed economies, the Shipping Ministry is also responsible for Ports and Waterways. In India, the Shipping Ministry has been doing a lot of work related to Ports and Waterways.

Now with more clarity in the name, more clarity will also come in the work.”

As soon as the Prime Minister announced the name change, the Ministry swung into action to complete all the related formalities. All the formalities were completed within two working days

and the official notification of the name change was published in the Gazette of India on 10 November 2020.

During the formal unveiling of plaque ceremony today, Shri Mansukh Mandaviya stated that it is indeed a matter of pride that with Prime Minister Shri Narendra Modi’s vision, the country is moving ahead with a holistic and long-term approach of multi-modal connectivity. He added that he is indeed grateful to Prime Minister for his foresight regarding the expansion of the scope of work as far as ports, shipping and waterways are concerned.

Shri Mansukh Mandaviya stated that “With the changed name, the Ministry is going to put extra focus on the development of Waterways and coastal shipping. Around 1400 km of waterways have already been fully developed and additional 1000 km is being developed on priority for which DPR/feasibility study has been completed. We are also focussing for Contd. on page -2

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Wing 7 Feather 14

Mob : 9884085285

Kamarajar Port Handles Largest Ever Container Vessel on the East Coast of India Chennai

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Port Wings News Network amarajar Port Limited (KPL) created history on 11 November 2020 when it handled the largest transshipment vessel that has ever called on any East Coast Port.

M.V.MSC Faith having 14,336 TEUs capacity berthed at its Container Terminal with Tembe Port (Ghana), being its last Port of call.

This Container Terminal is being run in PPP mode

by Adani Ports and SEZ Ltd.

Inside

Custom Brokers Face Hardship...

Pg-3

Corona Pandemic Pushing Up Crew... Pg-4 SCI Sale Faces Delay as Management... Pg-5 Latest Customs Exchange Rates...

Pg-6

Vessel Position at Terminals and Ports... Pg-7

When transshipment of most of the container of South Indian Ports is happening at Colombo and Singapore, by receiving this vessel KPL has placed itself on global transshipment map.

As a new generation port, KPL

could achieve this feat on account of deep draft, state-of-the-art new generation terminal with latest gantry cranes and sufficient backup yard that can hold upto 17000 TEUs of containers.

The mainline container vessel M.V. MSC Faith has length of 366 meters and would discharge Contd. on page -2

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

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Nov. 18th - 24th Issue

Shipping Minister Mandaviya Unveils Plaque...

Wednesday, November 18, 2020

Wing 7 Feather 14

Tax-Terrorism to Tax-Transparency

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he Prime Minister Narendra Modi underscored his government’s tax reforms such as faceless appeals and dispute redressal mechanism to say the country is moving from tax terrorism to tax transparency.

The Prime Minister said when the difficulties of the country’s wealth creator are reduced, they get protection and their trust grows in the country’s systems. He added the result of this growing trust is that more and more partners are coming forward to join the tax system for the development of the country.

The Prime Minister remarked that along with the reduction of tax and simplicity in the process, the biggest reforms that have been done are related to the dignity of honest taxpayers, to protect them from trouble. The Prime Minister said the thought process in the government is to trust the income tax return completely at first after being filed. As a result of this, 99.75 percent of the returns filed in the country today are accepted without any objection.

He said it is a big change in the country’s tax system. Modi said the long period of slavery had made the relationship between tax payer and the tax collector that of exploited and exploiters.

The Prime Minister said governance should not cause inconvenience when collecting tax from the common people; but when that money reaches the citizens, then people should feel its benefits in their lives.

He said over the years, the government has moved ahead with this vision and today’s taxpayer is witnessing huge changes and transparency in the entire tax system. The taxpayer feels there is transparency in the system only when he does not have to wait months for a refund and gets a refund within a few weeks.

When he sees that the department has resolved the age-old dispute on its own, then he feels transparency. When he enjoys faceless appeal, then he feels tax transparency. When he sees that income tax is continuously decreasing, then he feels more tax transparency. The Prime Minister attributed zero tax on income up to Rs 5 lakh in the country as a huge benefit being given to our youth of lower middle class today. He added that the new option of income tax given in the budget this year, has simplified the lives of the taxpayer. He said to speed up the pace of development and make India more investment friendly a historic cut has been made in corporate tax.

He said the tax rate for new domestic manufacturing companies has been set at 15 percent for the country to become self-sufficient in manufacturing. He added Dividend Distribution Tax has also been scrapped to increase investment in India’s equity market.

GST has also reduced the tax net and the tax rate in most goods and services has also come down. He said ease of doing business has improved in the country as a result of reducing the burden of disputes by increasing the limit of appeal from Rs 3 lakh to Rs 50 lakhSample in ITAT and to Rs 2 crore in Supreme Court. The Prime TEXT Minister expressed satisfaction that the IT Appellate Tribunal is also upgrading its Benches across the country for Virtual Hearing and said it is very important to upgrade the entire system in the era of technology. He stressed that more and more use of technology especially in our judiciary has started giving new convenience to the citizens of the country. This change has come due to the Narendra Modi government’s approach of `Reform, Perform and Transform’.

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Continued from page -1 creation of a Port Grid, encompassing various smaller ports like fisheries port, agriculture port and mineral port etc so that port development and port-led development takes place in the country.”

Shri Sanjeev Ranjan, Secretary & Shri Sanjay Bandopadhyaya, Addl Secretary, Ministry of Ports, Shipping and Waterways, Dr. Amita Prasad, Chairman, IWAI, Shri Amitabh Kumar, DG Shipping, Shri T.K. Ramachandran, Chairman, IPA, along with chairmen of all the major ports and senior officials of the Ministry attended the ceremony through video conferencing.

Kamarajar Port Handles Largest Ever Container....

Continued from page -1 4155 TEUs of containers at KPL. With a beam width of 48 meters the vessel needs high outer reach gantry cranes for cargo operations.

The Container terminal at KPL has Gantry Cranes of 62 meters outer reach ensuring a hassle free cargo operation. KPL is geared to receive many such transshipment calls in near future.

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logistic cost.

Apart from this, trade facilitation by way of preferential commercial offerings are also being made by KPL to attract such transshipment vessels. Transshipment calls such as this are not only in the larger interest of the EXIM trade but will also result in giving fillip to coastal and inland waterways shipping in the country.

Shipping To End 2020 Better Than Expected, Says Moody’s Chennai

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Port Wings News Network he rating agency Moody’s has revised its outlook for the shipping industry from negative to stable as the sector outperformed the agency’s projections for this year.

The rating agency said the outlook for the global shipping industry had been negative since March 2020 coinciding with the impact of the COVID-19 pandemic on the global economy.

“We expect the aggregate EBITDA of the shipping companies we rate globally to grow by 3%-5% in 2021, driven by a recovery in the dry bulk segment from pandemic lows and the continuance of good market fundamentals for container shipping,” Moody’s said.

“However, this is tempered by a likely decline in EBITDA in the tanker segment next year because of tough comparisons with record charter rates in the first half of 2020.”

Moody’s expects the industry’s overall supply-demand balance to improve in 2021, which is the other main reason for the outlook change.

However, risks remain as ongoing pandemic fears and a resurgence in coronavirus infections in some major economies could hinder a recovery in demand for shipping services in 2021.

One of the major positive

outcomes from the challenges the pandemic posed on the market has been limited supply of new vessels and capacity management, which are likely to serve as a cushion to adverse market conditions, according to the rating agency.

Namely, order books for all three shipping segments remain at record low levels in relation to their total fleets.

“We would consider changing the outlook to negative if we see signs that shipping supply growth will exceed demand growth by more than 2% or that comparable EBITDA will decline by more than 5% year over year,” Moody’s added.

The rating agency anticipates that in the container shipping segment, carriers could resume cancellations of sailings to reduce capacity to match demand. Nevertheless, the tanker and dry bulk markets will be more sensitive to changes in demand during 2021 because they are much more fragmented than the global container market where capacity is partly organised through alliances.

Moody’s changed the outlook from negative to stable for both the container shipping sector and dry bulk shipping, while the tanker sector’s outlook was downgraded from stable to negative.

The container shipping sector is expected to sail in a stable operating environment in 2021 amid balanced supply and demand coupled with

disciplined capacity management by carriers, low bunker prices and increasing freight rates.

“Even if the global economic recovery takes longer to materialise, given the rising infections in Europe and the US, carriers’ capacity management should continue to keep freight rates broadly stable,” Moody’s said.

The dry bulk’s outlook is expected to be stable amid anticipated gradual improvement of the market environment over the next 12-18 months. The recovery in key dry-bulk commodities has been more or less driven by China, where import volumes of iron ore were 11% higher in the year to date to August than in the same period in 2019. The supply-demand balance is also set to improve.

“Assuming the global economy recovers in 2021, we foresee dry bulk demand growing by 3%-5% versus supply growth ranging from 0.5% to 2%, depending on the level of scrapping activity and order delays/cancellations. Still, downside risks are certainly evident, including protracted lockdowns that would curb demand,” the agency added.

Commenting on the tanker market’s outlook, the agency said the record high charter rates driven by major demand for floating storage in Q2, 2020 is not likely to repeat itself in 2021 resulting in the likely contraction of EBITDA.

Port of Shanghai Still Number One, Handling Record 4.2m TEU in October

Contact Numbers Phone Number Name Designation 9444222056 K.Sivakumar Publisher cum Editor 9444158179 C.U.Satheesh Marketing, Circulation 9597684285/7358020375 Richard Collins Manager - Tuticorin Sample TEXT - Marketing 7305315408 Sathish Kumar Executive

The Traffic and Marine wing of KPL worked overtime with the container terminal operator (AECTPL) for achieving this feat.

As a part of Atma Nirbhar Bharat initiative, Ministry of Ports, Shipping and Waterways has made many policy interventions to attract transshipment vessels from Ports like Colombo, Singapore, Jabel Ali, etc., in order to reduce the overall

Chennai

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Port Wings News Network he Port of Shanghai has reaffirmed its position as the world’s busiest container port last month setting a new record by handling 4.2 million TEU, a yearover-year increase of 15.7 per cent according to official data released by the Chinese authorities, reports Schednet.

The new record exceeded July’s 3.9 million TEU and making Shanghai the first container port to exceed the 4 million TEU mark in a single month.

Since the outbreak of Covid-19 at the beginning of the year, the

Chinese economy has rebounded from the second quarter, and this has been felt in container volumes, which have only continued to soar, according to media reports.

The growth in Shanghai’s container volume mirrors similar overall growth in China’s cargo volumes, which in total was up nearly 16 per cent at the major ports in October. Total container volume at China’s largest seaports was up nearly 20 per cent in October.

The strong volume growth has contributed to the reports by the largest shipping lines of both a strong rebound in business as well as a dramatic tightening of availability or in some cases already being fully

booked during the peak shipping season.

Many of the world’s ports are reporting that they are no longer seeing blank sailings but are being asked to accommodate unscheduled additional arrivals as the carriers add sailings to their schedules.

In 2019, Shanghai’s total container throughput totalled 43.3 million TEU, a year-on-year increase of 4 per cent, and making the port the biggest container port in the world for the tenth year in a row.

In 2010, Shanghai port overtook the Port of Singapore to become the world’s busiest container port, and there has been no looking back since then.

Nov. 18th - 24th Issue

Custom Brokers Face Hardship in Clearance Under Faceless Assessment Chennai

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Port Wings News Network XIM Trade believed that it is undoubtedly another milestone for Customs clearance with an aim to reduce dwell time further under “Ease of Doing” program, when the Union Government introduced Faceless Assessment.

The EXIM trade rejoiced and welcomed the new procedure wherein the Import Bill of Entry earlier assessed by an officer in the Port of Filing will be assessed by an Officer working in other Customs Stations without meeting the Agents in person to explain any query related to import items/valuation/ duty exemption applicability etc., everything done away with through online.

But, when the Faceless Assessment is introduced on panIndia basis vide CBIC Circular No.40/2020-Customs, dated 04.09.2020, effective from 31 October 2020, after trial move, the trade really had to face hardship in getting Bills assessed on time as the Officers sitting remotely raised more queries on valuation, applicability of Notification benefits under FTA between India and Asian Countries and many more.

MINIMUM 5-10 DAYS DELAY Consequently, the bills are getting assessed after a minimum 5-10 days from Bill of Entry filing date. At times the duration exceeds 15 days. Further, when the officers are not satisfied with document evidence and query replies, they simply recommend for merit duty, which is against the principle of Free Trade Agreement between SAARC countries and discourage importers using import raw materials, which are freely allowed for import as per EXIM Policy 2015-20. Though the intention of Government is to make the assessment procedure simple

and time saving, but in reality, the other way happened. The importers and agents start realizing the old system “holds good” as the Faceless Assessment takes more time and increase logistics cost. After due representations from the EXIM trade, Chambers, FFFAI to Ministry

of Commerce, the CBIC issued Guidelines for Faceless Assessment vide Circular No.45/2020 dated 1210-2020. Further, the CBIC board introduced Carotar Form I, Section II and Section III to be issued by Supplier and Importer with an aim to curtail fraudulent claim of duty benefits under Free Trade Agreement giving powers to officer to verify the genuineness of origin of goods also to assess under merit duty if the documents found to be fake.

Most of logistics people welcomed the new system of Faceless Assessment as it will completely avoid personal contact of officials and reduce time and cost of operation, But in reality, there are lot of online queries raised for supporting documents, declarations, 100% open order, denying duty exemption benefits for the importer by the assessing officer forced on client to clear goods at increased cost to save time. Mr Vijay Balan, an entrepreneur in Logistics expressed his experience with new system of Faceless Assessment and Carotar declaration. “While the new system

pave way for avoiding personal contact of officers by agents, but the trade has to bear increasing logistics cost unnecessarily on account of numerous queries by officers resulting delay in clearance.

The very purpose of the introducing faceless assessment system getting defeated,” he said.

One of Custom Brokers, Mr.K.Venkattu, welcomed the Faceless Assessment and Carotar Form requirements to curtail duty evasion and fraudulent claims by some importers, physical presence avoided, time saving etc., are some of the merits of the system.

“But the implementation has some issues like no proper procedure to recall bills, so many queries raised by FAG, 100% examination in open order, various documents need to be verified, delay in BE allotment and assessment by FAG officers, FTA bills ordered for BG/ 100% merit duty are some of the difficulties faced by trade,” he said.

However, CBIC should conduct more seminars to solve the issues faced by trade. Further, the trade members feel the allotment of bills to RMS has been reduced drastically from 80-85% to 30-40% resulting in accumulation more of bills under assessment resulting in delayed clearance. The members wish is to bring back earlier 80% under RMS clearance. All are aware when a new system is introduced, there are some bottlenecks prevent smooth flow of system and it is the responsibility of the Board to get feedback and suggestions from the EXIM trade and service providers to find suitable remedy to make the it more transparent and effective for the intended purpose for which it is introduced.

(Special Article by KS Jagannathan)

IMO, UNWTO Support Resumption Of Cruise Ship Operations Chennai

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Port Wings News Network he International Maritime Organization (IMO) and the World Tourism Organization (UNWTO) have expressed their support for the safe resumption of cruise ship operations following the COVID-19 pandemic.

In a joint statement issued on 5 November, the organizations also encouraged their member states and relevant national and local authorities to designate all seafarers and marine personnel within their jurisdictions as key workers providing an essential service and to remove any barriers to crew changes.

Resumption of cruise services According to information from the cruise industry, about 30 million passengers cruised in 2019. Cruising generates $150 billion for the global economy every year and supports 1.2 million jobs.

Since the World Health Organisation (WHO) declared the global pandemic, Cruise Lines International Association (CLIA) member cruise lines announced a voluntary suspension of operations worldwide, making the sector one of the first to do so. Suspending cruise operations through July 2020 resulted in $50.24 billion in total economic loss, representing over

334,000 jobs and $14.75 billion in wages.

During this time of suspension, the cruise industry has been reviewing and enhancing its protocols to determine ways to go further in the protection of the health of passengers, crew and the general public.

The two UN agencies have recognised the efforts made by the industry, countries and international organizations to protect the safety, health and well-being of passengers and crew, as well as the health of the population of destination port states of cruise ships.

The joint statement invites governments to use the Guidance on the gradual and safe resumption of operations of cruise ships in the European Union in relation to the COVID-19 pandemic to facilitate the recovery of the sector under safe conditions, as well as three framework documents developed by the United Kingdom’s Chamber of Shipping together with CLIA. IMO and UNWTO emphasised that the resumption of cruise ship operations will also benefit the wider maritime community, since passenger ships participate in the automated mutual-assistance vessel rescue (AMVER) and are often requested by Rescue Coordination Centres to offer assistance to ships in distress at sea.

On 30 October, the US Centers for Disease Control and Prevention (CDC) also issued a Framework for Conditional Sailing Order that introduces a phased approach for the safe and responsible resumption of passenger cruises.

However, despite the abovementioned incentives calling for resumption of cruises, numerous cruise lines worldwide have extended pause of their ship operations to H1 2021.

IMO REITERATES CALL TO DESIGNATE SEAFARERS AS KEY WORKERS In the statement, the IMO has once again – now together with UNWTO — called on governments to designate all seafarers and marine personnel as key workers and remove any barriers to crew changes.

The agencies said that maritime transport is dependent on the 2 million seafarers who operate the world’s merchant ships. It is estimated that currently about 400,000 seafarers are working beyond their original contracts, with a further 400,000 waiting ashore to relieve them.

Earlier this year, the IMO provided guidance to the shipping industry and to governments that includes provisions to facilitate safe and secure crew change operations.

However, many governments around the world have so far ignored the plight of seafarers trapped on board.

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Vigilance Awareness Week Celebration Concludes at V.O.Chidambaranar Port Trust Tuticorin Port Wings News Network he valedictory function of Vigilance Awareness Week – 2020 was held at V.O.Chidambaranar Port Trust on 11 November, 2020.

Shri T.K. Ramachandran, IAS., V.O.Chidambaranar Port Trust, graced the function as chief guest.

In his address, Shri Ramachandran stated that “I particularly endorse the view that every industry has the potential to grow when it turns out to technology. Automation and obtaining real time data can play a major role in bringing in transparency and curbing corruption”.

He further highlighted the importance of implementing e - O f f i c e , e-Tender, e-Procurement, issue of online Port Entry and Exit clearance and RFID based entry permits at the Port, that would not only close loopholes, if any, but also reduce human involvement and thereby would curb manipulation of data.

He also distributed the prizes in the presence of Shri Bimal Kumar Jha,

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Deputy Chairman, V.O.Chidambaranar Port Trust, to the winners of various competitions, conducted for School & College students and employees of the port during the week-long Vigilance Awareness Week observed from 27 October to 2 November, 2020.

More than 150 school students actively took part in the competitions organised by the Port. In view of OVID-19 pandemic situation, all the competitions were organised in a virtual mode.

SPIC Nagar Higher Secondary School bagged the shield for ‘Best Performance’ by securing 11 prizes, followed by the Vikasa School for securing 10 prizes and Harbour Higher Secondary School, for securing 7 prizes.

Coastal Shipping Bill May Get Nod in December, Says Mandaviya New Delhi Port Wings News Network Bill to boost cargo movement along the country’s 7,500km coastline is likely to get the Cabinet nod in December, Union Minister Mansukh Mandaviya said.

The Coastal Shipping Bill, 2020, which proposes to do away with the requirement of trading licence for Indian flag vessels for coastal trade besides creating a competitive environment to reduce transportation costs, has been circulated for interministerial consultation.

“We are bringing the Coastal Shipping Bill. We expect the Cabinet nod in December,” Ports, Shipping and Waterways Minister Mandaviya told PTI. Mandaviya said once the legislation is enacted, it will give a big impetus to coastal cargo movement and reduce logistics costs.

“The Bill at present is under circulation for inter-ministerial deliberation,” the minister said.

He added that once approved, the coastal infrastructure will be augmented and necessary changes will be done in rules and regulations pertaining to coastal shipping.

As the shipping sector grows and

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evolves in the country, a need was felt to have a separate legislation on coastal shipping and recognise the policy priorities of the sector to meet the industry’s demands, the minister said.

The ministry has drafted the Coastal Shipping Bill, 2020, in lieu of part XIV of the Merchant Shipping Act, 1958.

The Bill also proposes integration of coastal maritime transport with inland waterways.

Mandaviya said the government will focus on creating a port grid in the country besides development of waterways and coastal shipping.

“We have a coastline of 7,500 km which can be harnessed to fuel economic growth and employment,” he said.

He said 1,400 km of waterways have been fully developed and an additional 1,000 km of waterways are being developed on a priority basis.

Last week, the minister said, “We are also focussing for creation of a port grid, encompassing various smaller ports like fisheries port, agriculture port and mineral port, so that port development and portled development take place in the country.

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Nov. 18th - 24th Issue

Corona Pandemic Pushing Up Crew Change Costs Chennai

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Port Wings News Network hip operators are being warned to expect higher crewing costs next year as pandemic measures and challenges in carrying out crew changes push prices higher, says Danica.

Henrik Jensen, managing director of Danica Crewing Specialists, has analysed recent crew costs and reports that each crew change is costing an extra $2,000 USD – doubling the price since last year – and is advising ship operators to set aside additional funds in next year’s budgets.

the purpose of crew changes are rare today as more ports are open for crew changes.

“We have examined the additional costs caused by Covid-19 restrictions and the requirements in relation to crew changes and we found that on average it now costs almost 2,000 USD per crew movement. So for one person joining and one returning home the cost is approximately $4,000, which is double on pre-pandemic prices.”

This figure is arrived at using analysis of a combination of fully allocated additional costs and estimates, based on the 1276 crew

File photo

His comments come at a time when maritime industry representatives and seafarer unions are expressing concern at the reluctance by some charterers to allow vessels to detour to enable crew changes to take place during their voyage.

Mr Jensen explained: “Airfares have risen significantly compared to 12 months ago and flights are still difficult to book in many parts of the world due to reduced timetables and last-minute changes or cancellations. Our analysis does not include vessel deviation and delay costs for redirecting vessels to ports where crew changes are allowed and lost charter revenue. However, vessel deviations caused only for

changes on bulk carriers in worldwide trade which Danica has made over the period March-September 2020.

Mr Jensen reports that these overall additional costs are a recent development. “For the first half of the year in general our costs stayed within budgets because the higher charges per crew change were balanced out by the reduced frequency of crew changes. For example, a bulk carrier with a mix of Eastern European and Filipino crew has about 40 crew changes per year and that will be 80K extra costs, although as crew changes still cannot take place in a timely manner the number of actual crew changes will be less.

“Over the summer months we were able to resume crew changes as much as possible, thanks in part to the designation of seafarers as ‘essential workers’, and a high percentage of crew have been relieved. However, crew changes have gone from being a straightforward shipping activity to becoming a seriously complicated challenge. At Danica our staff have worked long hours trying to resolve travel problems and get seafarers home or to where they need to be.

There is an ever-changing list of restrictions, medical tests, hotels, visas and transit requirements to be met in order to facilitate crew travel.

Today planning and executing a crew change can take two to three times as long as before.”

Predicting that crew scheduling will not return to normal until mid -2021 at the earliest, Mr Jensen said: “Due to Covid-19 and delays in repatriating seafarers, the entire crew planning system is destroyed and crew rotation patterns are all over the place. It will take a lot of time and effort by crew managers and ship owners, and need the assistance of the international community and governments, for the regular crew change system to be re-established.”

He advised shipping companies which are now preparing their budgets for 2021 to add in contingency funds: “This is an industry-wide problem faced by all ship operators throughout the world.

It is of course very difficult to forecast every additional cost which will be faced in 2021 but it would be prudent to assume that this global situation will remain with us for many more months to come and to therefore set aside sufficient funds to enable crew changes to take place whenever possible.”

Acute Container Shortages Roil Global Supply Chains Chennai

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Port Wings News Network ontainer surcharges are piling in as global supply chains from an extraordinary shortage of available forty-foot boxes in no small part down to the booming transpacific tradelanes to the US, according to Sam Chambers report in Splash.

Getting empty 40 foot containers in China to take advantage of the lucrative rates on headhaul trades has become a top priority for the carriers. Carrying cargo at low rates on backhaul trades is obviously becoming less interesting as the inland transport and the stuffing and stripping of the boxes takes extra time,’’Alphaliner explained in its latest weekly report. The Speciality Soya and Grains Alliance (SSGA) has reported that German carrier Hapag-Lloyd decided to suspend US agricultural exports for the foreseeable future. `The export suspension is being driven by the need for ocean carriers sot get their containers back to Asian manufacturing centres as quickly as possible to handle burgeoning, higher value imports to the US,’ the alliance warned, adding ``Some carriers are apparently willing to send empty containers immediately back to China for faster turnaround.’

Hapag-Lloyd conceded in a note to clients the limited supply of feu

is` an enormous unseen challenge.’

A spokesperson for Container xChange, a platform that sources available boxes for shippers, told Splash We can see the container availability, especially in Shanghai and Los Angeles, drastically decreasing to values of 0.04 and0.22 for 40HCs, the popular for consumer goods.’

On the platform’s Container Availability index above 0.5 indicates a surplus and below 0.5 indicates a deficit of containers.

0.04 is the lowest point recorded this year.

Analysts at Sea-intelligence noted in their most recent weekly report; “The skewed geographical development of the demand recovery means a rapidly escalating equipment imbalance issue, which becomes especially acute for North America and Asia.” The deficit of containers in Asia is `rapidly worsening’, according to SeaIntelligence.

“As the freight rates at the same time are reaching record levels on the Asia export trades, the carriers are clearly prioritizing to get empty containers shifted back to Asia as fast as possible - even to the degree where they are willing to forego viable export cargo, as that would serve to slowdown the repatriation empty containers,’ SeaIntelligence pointed out, explaining what happens when changes in both

demand and supply outpace the ability to move empty containers around the world. `It is - relatively speaking - easy to adjust capacity when demand changes, but it is not possible to rapidly shift empty container across the world.’ Sea-Intelligence observed.

This also means that the bottleneck issues currently seen in mnfy locations will take time to resolve with rival analyst Alphaliner predicting the issue would remain until Chinese New Year in February.

Limited access to available containers are also driving up rates for new boxes. Chinese manufactures, which dominated the container market, are now now charging about $2,500 for a new container, up from $ 1,600 a year ago. Likewise, leasing rates have skyrocketed by around 50% in the space of just six months.

Freight rates across most container tradelanes have leapt in recent months, some to record levels. The transpacific has led the way and shows no sign of slowing down. Steve Ferreira, the CEO of New York-based consultancy Ocean Audit, noted via Linkedin over the weekend retailers such as Walmart, Home Depot, Lowes and Target are shipping 300% of their normal peak volume now. This is a new Consumer industrial revolution, he added.

Cochin Port Trust Invites Eoi To Develop North Coal Berth Kochi

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Port Wings News Network ailing in line with the Centre’s policy based on landlord development model, the Cochin Port Trust has invited expressions of interest from investors for the development of a port-based project in its North Coal Berth, reports BusinessLine.

The EoI has been invited to assess the market sentiment for the development of any port-based project – either on land lease model or on PPP basis. The interested parties with experience in port, shipping or logistics business are free to offer any innovative business suggestions or solutions provided the proposed venture contributes to increasing business through the port, Cyril George, Deputy Chairman of the Port, said.

“The EOI has been floated to determine the interest in the market for any port related project. Based on the user’s response, the project will be suitably structured,” he told BusinessLine.

However, he added that no specific project has been identified in this regard. The land and waterfront are allotted only for portrelated projects that help in adding to cargo and vessel traffic.

Cargo traffic Projects such as warehouse/tank farms/ bulk cargo storage silos or any other business/facilities that bring cargo and vessel traffic will be entertained. Besides NCB, the

parties are open to consider any other berths depending on their assessment of a business potential.

A plot of about 2.50 hectare out of the 3.89 ha adjacent to NCB has been identified for the project, he added.

A land width of 6.50 metre along the northern side and eastern side of the plot is earmarked for an oil pipeline corridor. The ship carrying cargo to the proposed terminal can be berthed at NCB berth and can accommodate vessels up to 9.14 metre draft, he said.

The plot has rail connectivity which is lying idle for the past many years, which can be revived if required by the investor. Offering excellent connectivity by means of road and rail, the port is connected to all industrial locations of the country, he said.

Tapping the tourism potential With the shifting of container terminal operations to Vallarpadam, he said the Port has also chalked out ambitious plans to transform the Willingdon Island into a Global Vista for Rest, Rejuvenation and Recreation by en-cashing Kerala’s tourism potential. There is a proposal to design a master plan for transforming the island into a sustainable global tourism destination with a focus on balancing, cultural, ecological and economic growth of the region.

“This is still at the inception stage and the details are being worked out,” he added.

JSW To Gain Control of 3 Bulk Cargo Terminals

by Buying Chettinad Builders For Rs 960 Crore Mumbai

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Port Wings News Network ajjan Jindal-led JSW Infrastructure Ltd will sign a deal soon to buy Chennaibased Chettinad Builders Pvt Ltd for about Rs 960 crore, which will give it control over three bulk cargo handling terminals — two with Kamarajar Port and one with New Mangalore Port Trust. The deal is likely to be funded by IndusInd Bank. The acquisition was first reported by BusinessLine on August 15.

The cargo terminals being acquired include a 10 million tonne (mt) common user coal handling terminal at Kamarajar Port, a 2 mt multi-cargo terminal also at Kamarajar Port and a 10 mt common user coal terminal at New Mangalore Port Trust.

Approvals in place The board of Kamarajar Port and the board of trustees of New Mangalore Port Trust have separately approved the proposals filed by Chettinad Builders seeking their no-objection certificates to sell the stakes in the special purpose vehicles operating the terminals to JSW. The Shipping Ministry has granted the mandatory security clearance for the stake sale, multiple government sources told BusinessLine. The board of JSW Infrastructure approved the acquisition last month. JSW did not comment.

The deal will take the group a step closer to its target of building port capacity to handle 200 mt of cargo by 2022.

Ports run by JSW Infrastructure at Jaigarh and Dharamtar in

Maharashtra; Paradip in Odisha, and in Goa currently have a capacity of over 100 mt and handled a combined 70 mt of cargo in FY20, of which some 90 per cent was the group’s captive cargo.

By 2025, JSW Infra plans to have a 50:50 mix of captive and thirdparty cargo.

The three facilities being acquired have good cargo handling potential given their location and the presence of power stations and steel mills close by. The two terminals at Kamarajar Port — a corporate entity — are also outside the ambit of the rate regulator for major ports. The New Mangalore terminal operates under a liberal rate structure.

However, port industry executives say the three terminals have “no juice” in them due to the high percentage of annual revenue they are contractually mandated to share with the government-owned ports.

Revenue-share The Chettinad International Coal Terminal shares 52.524 per cent of its annual revenue with Kamarajar Port, while the Chettinad International Bulk Terminal shares 36 per cent.

The Chettinad Mangalore Coal Terminal won the contract by agreeing to share 31 per cent annually with the New Mangalore Port Trust.

The deal, though, will help JSW Group to cut its dependence on Krishnapatnam Port, which was acquired by Adani Ports in October, for moving cargo. The group started using the Krishnapatnam facility a few years ago after environment concerns forced regulators to trim the cargo volumes handled at its terminal in Mormugao Port Trust.

Nov. 18th - 24th Issue

APM Terminals Pipavav Goes Live With RFID Container Tracking Service at the Port Pipavav

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Port Wings News Network ntegrated Container Tracking (ICT) system commenced at APM Terminals Pipavav at an event on 9 November 2020.

NICDC Logistics Data Services (NLDS) has completed vital infrastructure at APM Terminals Pipavav to commence the near real time visibility of the container movement across the supply chain.

This is under the Logistics Data Bank [LDB] Project developed by NICDC Logistics Data Services (NLDS) which will help in tracking the container from port to Container Freight Stations (CFSs), Inland Container Depots (ICDs) and end users. This would help in enhancing the visibility and efficiency of the container movement thereby improving the competitiveness of the Exim trade.

LDB was developed to address the critical issue of tracking movement of containers across various ports and provide insights to trade. It integrates the information available with various agencies across the supply chain to provide detailed real time information within a single window. With this expansion 100% of India’s container volume will be covered under LDB project. Currently around 28 million EXIM containers pan India have received services.

Mr. Jakob Friis Sørensen, Managing Director, APM Terminals Pipavav said, “We are delighted to announce the commencement of the Integrated Container Tracking system at our port. It’s an honour to become a part of this nationwide project of NICDC that will

streamline container movement across logistics value chain and identify inefficiencies and bottlenecks to develop strategies to ensure the development of the sector.”

“The visibility of containers throughout the entire supply chain provides multiple benefits to trade, including transparency, integration, lesser paperwork and improved planning for arrival, unloading and final delivery,” Mr. Sørensen said.

A separate Special Purpose Vehicle (SPV) has been formed by the Govt. of India between NICDC and NEC Corporation, Japan namely “NICDC Logistics Data Services Limited” (NLDSL) to execute LDB across entire logistics value chain.

LDB is now functional at 17 ports, 26 port terminals, 142 CFSs-ICDs and 58 toll plazas, 21 empty Yards, 43 Port Gates/parking plazas & 4 ICPs across India.

APM TERMINALS PIPAVAV ANNOUNCES SECOND QUARTER AND HALF YEARLY RESULTS APM Terminals Pipavav (Gujarat Pipavav Port Ltd) reported 23% decline in net profit at Rs. 520 million for the second quarter ended September 30, 2020.

The Company had reported

consolidated net profit of Rs. 671 million for the corresponding quarter of last year. Revenues for the second quarter stood at Rs. 1,827 million as against Rs. 1,992 million, lower by 8%. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) fell to Rs. 1,029 million as compared to Rs. 1,267 million in Q2FY20.

EBITDA margin stood at 56% in Q2FY21 as against 64% in Q2FY20; while net profit margin was at 28% during July-September quarter as compared to 34% in Q2FY20.

For the first half-year ended Sep 30, 2020, the revenues stood at Rs. 3,416 million, lower by 9% compared to first half of FY20.

EBIDTA and Net profit declined by 13% and 20% respectively to Rs. 1,984 million and Rs. 984 million.

The quarter gone by has marked positive signs for the port as the Board of the Company approved investment of Rs. 700 crore for the expansion plan. The stated investment will be utilized for upgrading the port’s existing facility to handle bigger ships and eventually expand the container capacity to 1.6 million TEUs. The port recently commenced Integrated Container Tracking system under the Logistics Data Bank project (LDB) of the National Industrial Corridor Development Corporation (NICDC).

The technology will enhance the visibility and efficiency of the Container logistics movement thereby improving the competitiveness of the Exim trade.

SCI Sale Faces Delay as Management Goes For Corporate Recast Mumbai

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Port Wings News Network rivatisation-bound Shipping Corporation of India Ltd (SCI) has sought bids for a consultant to undertake de-merger/ disposal of its non-core assets (real estate) ahead of its stake-sale and to carry out corporate restructuring for better operational performance of the Navratna company, according to a news report in BusinessLine.

SCI’s surprise move will delay the strategic disinvestment of the company, approved by the Union Cabinet in November last year. It is also seen by shipping industry officials as an indication that the government may break up SCI for sale in parts, and those left unsold will continue as a state-run firm.

SCI’s diverse portfolio of assets is seen as a potential deal-breaker because it is rare to find global shipping firms with such varied ship-types that would be interested in the company as a whole.

SCI runs a fleet of 59 ships, including crude oil tankers, very large crude carriers, petroleum product carriers, liquefied petroleum gas carriers, bulk carriers, container ships and off-shore support vessels.

Breaking up SCI based on asset class would be a better bet to sell the core assets of ships, given that

the government has decided to exclude non-core assets (real estate) located at Mumbai and Kolkata from the sale process, an industry official said.

Corporate restructuring The corporate restructuring being planned involves de-merging of a whole or part of a division of SCI as identified by the management. The de-merged part may be merged with an existing subsidiary or hived off as a new subsidiary created for the purpose, according to a November 6 notice issued by SCI seeking Expression of Interest for the consultancy, a copy of which was reviewed by BusinessLine.

SCI has three operating divisions: liner and passenger services, bulk carrier and tanker division and technical and offshore services.

The company has a subsidiary, Inland & Coastal Shipping Ltd, and four joint venture companies that own the LNG carriers in which SCI has a stake.

The SCI management, according to the EoI notice: “may also consider a corporate restructuring exercise involving redistribution of specified verticals (or parts) between divisions and/or demerger of specified vertical(s) which may be merged

with existing subsidiaries/hived off as new subsidiaries for better synergy and to improve/enhance the company’s operational efficiency”.

Easing the disinvestment process The consultant will be tasked with suggesting a roadmap on the scheme of de-merger/hive off/disposal/ transfer/alienation of non-core assets, both freehold and leasehold, from core assets. This could include corporate restructuring for a smooth transition, ensuring compliance with required procedure and applicable laws and removing all legal and procedural bottlenecks to “maximise value for the company and shareholders”.

The consultant will have to formulate the scheme of arrangement including all possible structures, tax advisory, design and develop a smooth transition without causing any adverse impact in customer services, market share, assisting and advising on all other activities relating to demerger including human resource related matters, re-casting of accounts etc, the EoI notice stated.

The government has decided to sell its 63.75 per cent stake in SCI to a private strategic buyer.

The Department of Investment and Public Asset Management (DIPAM) is yet to issue an expression of interest for the sale.

5

CONCOR To Levy Surcharge at Tughlakabad ICD As Steep Hike in Land License Fee Bites Chennai

Port Wings News Network he Container Corporation of India Ltd (CONCOR) will levy a land usage surcharge of ₹5,000 per twentyfoot equivalent unit (TEU) on loaded import containers at its flagship inland container depot (ICD) in Tughlakabad near Delhi, as the state-run rail hauler looks to recover the high land license fee (LLF) collected by the Indian Railways from April this year, says a BusinessLine report.

The new land usage surcharge will come into force from December 6, according to a public notice issued by CONCOR. Around 25 of CONCOR’s 64 terminals, including the facility at Tughlakabad, are running on land leased from Indian Railways at concessional market rates. Till March 31, the LLF for the lease was paid by CONCOR at the rate of ₹1,175 per TEU. From April 1, the Railway Ministry has decided to collect the land licence fee at the rate of 6 per cent per acre of the market value of land where the terminal is located. The license fee would rise by 7 per cent annually on previous year’s value.

The revised calculation has the potential to make the Tughlakabad ICD — India’s biggest dry port spread over 195 acres — unviable. In FY20, the ICD handled close to 4,00,000 TEUs, paying an LLF of about ₹40 crore at the rate of ₹1,175 per TEU. During the April-June quarter, the Railway Ministry has demanded ₹776.89 crore as LLF for the Okhla and Tughlakabad terminals of CONCOR for FY21.

In the July-September quarter, the Ministry demanded ₹1,275.93 crore, including GST, as annual land license fee on 13 terminals of CONCOR for FY21, based on the

T

revised method of calculating the fee.

“As per the company’s assessment, the above demand is not as per the Railways’ extant policy. The matter is being suitably represented to the Ministry of Railways. However, an amount of ₹233.31 crore has been estimated and provided by the company by the applying extant policy of the Railways as LLF for all terminals built on Railway land for the period ended September 30,” CONCOR said.

With the new calculation, the land license fee for Tughlakabad ICD is estimated to soar to about ₹400 crore, putting a question mark over its survival.

“The Tughlakabad ICD has come under intense stress because of the higher LLF collected by the Railways,” said an official. “We are bleeding, there is no other way but to recover the higher outgo from the customers,” he added.

To reduce the higher overall outgo, CONCOR has also surrendered its New Mulund ICD in Mumbai which had an operating expense of about ₹48 crore against an income of ₹28 crore a year.

The New Mulund ICD adds to the list of 15 terminals built on Railways land that were surrendered

by CONCOR to the Ministry since April this year.

CONCOR has also handed over the empty container parks at its Tughlakabad terminal — New Mineral Siding Okhla, Power Cabin and the New Power Cabin near Tughlakabad Railway Station — to the Indian Railways.

The new land license fee calculation has put a spoke in the process of privatising CONCOR, which was approved by the Union Cabinet in November last year.

The Railway Ministry is drafting a new LLF policy for facilities built on Indian Railways land to bring clarity to the privatisation process.

Landmark Day at Cochin Shipyard Chennai

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Port Wings News Network t was a landmark day at Cochin Shipyard Ltd (CSL) as it launched five vessels at one go from its Building Dock at Kochi and also laid the keel for two vessels.

The vessels launched are two 8000 DWT Mini General Cargo Ships for JSW Shipping & Logistics Pvt Ltd and three Floating Border Outpost Vessels (FBOP) for the Indian Border Security Force. Keel laying was carried out for two more 8000 DWT Mini General Cargo Ships for JSW Shipping & Logistics Pvt Ltd. CSL achieved this milestone amidst the COVID -19 pandemic by working with available resources with necessary precautions.

The five vessels were launched by Smt Rameetha K, Scientist ‘G’, NPOL (DRDO) wife of Shri Madhu S Nair, CMD, CSL, while Shri Pranab K Jha, VP JSW Shipping and Shri Madhu S Nair, CMD, CSL, did the honours of keel laying for the two (02) new vessels in the presence of Shri Sureshbabu NV, Director(Operations), Shri Bejoy Bhasker, Director(Technical), Shri Jose VJ, Director(Finance) and other officials.

The Mini General Cargo Ships launched on 12 November 2020 are part of a series of four similar ships being built for the JSW group. These vessels are built and classed under the standards of Indian Register of Shipping. These ships will be used for transportation of dry bulk cargo such as coal, iron ore, dolomite, and limestone. The vessels, with a length of 122 Mtr and height of 7.20 Mtr and speed of 10 knots, will have a

compliment of 16 crew. These ships are expected to ply on the Coastal route between Jaigarh Port and Dolvi Steel Plant in river Amba near Dharamtar Port. This programme, once implemented, would trigger one of the largest inland water transport cargo movements in India, which is in line with the Government of India’s vision for the development of the National Waterways.

The three FBOP’s, with a length of 46 Mtr, launched today are part of a series of nine vessels being built for the Water Wing of the Border Security Force. These vessels are designed in-house by CSL & classed

by Indian Register of Shipping. Each FBOP is designed with stowage arrangements for four fast patrol boats, which can be launched and hoisted using its own davit system.

The vessels will act as a floating base for the flotilla of fast patrol boats and will supply Petrol, Fresh Water and provisions to the smaller boats and are to be deployed on India’s Eastern & Western borders.

CSL is expanding geographically and has commenced Ship Repair Units at Mumbai, Kolkata & Port Blair in addition to its Kochi facilities. CSL is also setting up fully owned subsidiary shipyards at Kolkata (named HCSL) and at Malpe, Karnataka (named TEBMA Shipyards Limited) to cater to the construction of small & medium vessels as well as inland water vessels.

CSL is also augmenting its infrastructure in Kochi and is currently investing around ₹2,800 Crore in the construction of a new 310 M long dry dock at CSL and a ship lift based Ship Repair Yard at Willingdon Island, Kochi.

6

Vessel Position at Terminals - (18.11.2020 To 25.11.2020)

Nov. 18th - 24th Issue

7

CITPL - Chennai

CCTL - Chennai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

20/11

21/11

PIC-2

SSL KRISHNA

SHR

18/11

19/11

CCG

NEYYAR

SMI

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

20/11

21/11

CCG

MESSINI

SMI

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

20/11

21/11

SIF

SPIRIT OF MUMBAI

MSC1

Colombo

20/11

21/11

COST

TCI LAKSHMI

TSL

Port klang

18/11

19/11

ECH

SSL KOCHI

SMI

CGP, HAL, PRT, KAK

Kattupalli

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

18/11

19/11

FME

ZANTE

RCF

082E

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

21/11

22/11

MD1

SIMA SAHBA

WAN

E083

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

20/11

21/11

MD1

TONGVA

WAN

03696E

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

23/11

24/11

TCXNEW

GLEN CANYON BRIDGE

ONE

115E

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

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

23/11

24/11

KAK>CMB

RHL ASTRUM

SH045R

SAMSARA

Halida, Colombo

20/11

21/11

KAK>CMB

TCI LAKSHMI

921-922

BOTHRA

Halida, Colombo

18/11

19/11

KAK>CMB

RHL AURORA

SH046R

SAMSARA

Halida, Colombo

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

18/11

19/11

ECS

SSL CHENNAI

166N

HMM

Tuticorin, cochin, Pipava, Kandla, Jebel ali

18/11

19/11

ACS

HYUNDAI PREVILEGE

075W

HMM

Nhava Shiva, Mundra, Khor Al Fakkan, Port Klang, Singapore, Shanghai

18/11

19/11

ECS

MCP SALZBURG

48W

SCI

Tuticorin, cochin, Pipava, Kandla, Jebel ali

20/11

21/11

CCG

NEYYAR

16

SIM

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

22/11

23/11

ADHOC

ASIATIC MOON

36W

GOL

Nhava Shiva, Mundra, Khor Al Fakkan, Port Klang, Singapore, Shanghai

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

23/11

24/11

SHTL

GRACE BRIDGE

047W

ADHOC

Nhava Shiva, Mundra, Khor Al Fakkan, Port Klang, Singapore, Shanghai

24/11

25/11

Maersk Shuttle

Mexico

043W

Maersk & Safmarine,XCL

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

24/11

25/11

TCX

GLEN CANYON BRIDGE

115

SHTL

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

18/11

19/11

IEX

X-Press Annapurna

2037W

Hapag ,ONE,COSCO

Colombo, Damietta Piraes Rotterdam, London

25/11

26/11

CCG

MESSINI

107

TCX

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

25/11

26/11

ACS

HYUNDAI COLOMBO

113W

CCG

Nhava Shiva, Mundra, Khor Al Fakkan, Port Klang, Singapore, Shanghai

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin 17/11

18/11

CTS

MV.VLADIVOSTOK

WHL

COLOMBO, TUTICORIN, COLOMBO

21/11

22/11

IEX

TOKYO BAY

2051W

HLL

Colombo,Damietta Piraes Rotterdam, London

22/11

23/11

CCG

MESSINI

108W

EGI

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

25/11

26/11

FME

ZANTE

082E

RCL

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

LYME BAY

CCA

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

BLUENILE

RIO CENTAURUS

MSK

19/11

INDUS

NORTHERN JAVELIN

MSC

19/11

20/11

IIX

KASHAN

RIS

20/11

21/11

MIDAS

ALDI WAVE

CCA

20/11

21/11

GIX

TELEMANN

PRD

21/11

22/11

MWE

MAERSK BENTONVILL

MSK

Colombo, Damietta Piraes Rotterdam, London

21/11

22/11

IEX

BEA SCHULTE

SBG

Colombo, Damietta Piraes Rotterdam, London

Nhava Sheva, Mundra, Port Qasim, Singapore

APM Terminal - Mumbai

20/11

21/11

FM3

MAERSK SHAMS

Voy

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

03696E

Calling Ports

Vessel Name

MSK

TONGVA

Agent/Line

Service

045W

MDM

NSICT - Mumbai

ETD

VENETIA

22/11

BTL

ETA

CHX

21/11

20003S

18/11

19/11

MSC

MV.X PRSS COTOPAXI

19/11

18/11

XA045

BOX

18/11

Calling Ports

MSC ISHYKA

21/11

MESAWA

Agent/Line

CV

20/11

19/11

Voy

21/11

20174S

18/11

Vessel Name

20/11

MV.OEL SHARVAN

Voy

Service

COLOMBO, TUTICORIN, COLOMBO

TUX

Vessel Name

ETD

COLOMBO, TUTICORIN, COLOMBO

19/11

Service

ETA

FAR SHIPPING

18/11

ETD

VCTPL, Vizag

1595

TRANSWORLD FEEDER

ETA

NCT, Krishnapatnam

Agent/Line

Calling Ports

MSK

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

HMM

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

20/11

21/11

PS30

HYUNDAI BANGKOK

19/11

20/11

MINA

CMA CGM RACINE

CCA

Jebel Ali, Mundra, Hazira, Nhava Sheva

19/11

20/11

UIG

AS ROBERTA

BTL

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

21/11

22/11

ME3

SANTA CRUZ

MSK

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

25/11

26/11

CWI

E R FRANCE

AMP

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

22/11

23/11

CWX

TOMMI RITCHER

SEC

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.

Korean Shipbuilders Sweep 70% Of Global Orders In October

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Chennai

Port Wings News Network orea was ranked first in global shipbuilding order intake in October, retaining the top spot for four consecutive months, says a Business Korea report.

Korea’s order receipts totaled 720,000 CGTs in October, or 69 percent of the world’s 1.04 million CGT order placements, said Clarkson Research, a shipbuilding and shipping market analysis company on Nov. 10. China claimed second place with 250,000 CGTs, followed by Finland with 30,000 CGTs. In terms of order intake from January to October 2020, China came in first with 5.22 million CGTs, ahead of Korea’s 3.77 million CGTs. Japan placed third with 1.05 million CGTs. As of the end of October 2020, the world’s order backlog was 67.34 million CGTs, down 1 percent from the end of September. The figure is the lowest since 65.93 million CGTs in December 2003. By nation, China took first place with 24.31 million CGTs, followed by Korea with 19.02 million CGTs and Japan with 8.59 million CGTs. In the January-October period of 2020, global ship order placements amounted to 11.56 million CGTs, down 48 percent from

22.4 million CGTs in 2019. They were 28.8 million CGTs in 2018.

During the same period, VLCC orders slid by 31 percent from 2019 to 770,000 CGTs, while orders for Suezmax oil tankers fell by 5 percent to 690,000 CGTs, and those for Aframax oil tankers shrank by 33 percent to 740,000 CGTs. Orders for 140,000 square meters or bigger LNG carriers stood at 2.14 million CGTs, down 29 percent from 3.01 million CGTs in 2019. Those for containerships hit 670,000 CGTs in 2020, down 58 percent from 1.59 million CGTs in 2019. Orders for Cape-sized bulk carriers also dropped 79 percent from 2019 to 400,000 CGTs in 2020.

The Clarkson Newbuilding Price Index, which shows the ship price trends, stayed at 126 points, down one point from September.

By ship type, the price of a 174,000-cubicmeter LNG carrier was US$186 million, unchanged since October 2019, while that of a Suezmax tanker stood at US$56 million, the same as September.

The price of a VLCC fell by US$1 million from September to US$85 million, while that of Aframax oil tankers sank by US$1 million to US$46 million. That of a container ship (13,000 to 14,000 TEU) also saw its prices fall from US$108 million to US$105.5 million.

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www.portwings.in for Latest News

Nov. 18th - 24th Issue

Bunkering of a New-Generation LNG-Powered Container Ships Begins in Rotterdam Chennai

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Port Wings News Network he CMA CGM Group has embarked on a major program to build a new class of liquefied natural gas-powered vessels, as part of its drive to take

the shipping industry’s energy transition to the next level. The CMA CGM JACQUES SAADE, the world’s largest containership powered by LNG and the CMA CGM Group’s flagship, is beginning its first LNG bunkering operation in Rotterdam on 12 November 2020.

The Port of Rotterdam will play a key role in refueling the Group’s LNG-powered fleet, which operates regular services between Asia and Europe.

A fleet of 26 LNG-powered containerships by 2022 In November 2017, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, made the visionary decision to order nine 23,000 TEUs (Twenty-foot Equivalent Units) with an LNG power supply, a first in the history of the shipping industry for vessels of this size. This pioneering fleet is the product of seven years of research and development efforts. It will

operate on the Group’s iconic French Asia Line (FAL 1) connecting Asia with Europe. The line provides a weekly service comprising 13 calls over 84 days. These 9 vessels will be registered on the International French Register (RIF).

Following this record order for nine 23,000 TEU containerships, including the CMA CGM JACQUES SAADE and the recently delivered CMA CGM CHAMPS ELYSEES, the CMA CGM Group now operates seven LNG-powered containerships and will have a fleet of 26 containerships of various sizes by 2022 (see appendix for list and details).

LNG, a visionary decision to preserve air quality and to adopt an energy source with a bright future LNG is currently the state-of-theart industry solution for preserving air quality. It delivers a reduction of 99% in sulfur dioxide and fine particle emissions and of 85% in nitrogen oxide emissions, surpassing the requirements of current regulations. LNG also provides an initial response to the challenge of tackling climate change. An LNGpowered vessel also emits up to 20% less CO2 than fuel-powered systems. This technology is one of the initial ways in which the CMA CGM Group plans to meet its target of being carbon-neutral by 2050. This decision demonstrated the CMA CGM Group’s resolve to

champion the energy transition in the shipping sector.

World first: start of the largest LNG bunkering operation ever CMA CGM is carrying out in Rotterdam the largest bunkering operation ever undertaken for a containership. The CMA CGM JACQUES SAADE, which has an 18,600 cubic meter tank, will be refueled with LNG while port handling operations remain underway. Once bunkering is complete, she will continue on her maiden voyage, which began after she joined the fleet on September 22.

CMA CGM is establishing a world-class new LNG hub for the shipping industry in Rotterdam CMA CGM is seeking to establish a genuine center of excellence in LNG for the shipping industry.

Rotterdam port is now becoming a world-class hub for LNG, which will take the shipping industry’s energy transition to the next level.

The Port of Marseille Fos is also set to become a gas bunkering hub for the CMA CGM Group’s vessels.

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “The energy transition is well and truly underway at CMA CGM. As of today, our flagship is powered using Liquefied Natural Gas. By 2022, our LNG-powered fleet will be 26 strong. Through this initiative we are directly addressing the environmental challenges we are faced with. As well as being reliable, LNG is the best available technology for significantly improving air quality and contributing towards tackling global warming.”

All India Association of Industries Welcomes Atmanirbhar Bharat Package 3.0 Mumbai

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Port Wings News Network ll India Association of Industries (AIAI) on 13 November 2020 welcomed the 12 policy measures announced by the Union Finance Minister under the ‘Atmanirbhar Bharat 3.0 package’ on 12 Nov 2020. These measures rightly provide thrust on unemployed workforce, MSMEs, housing and real estate sectors, which were hit the hardest by the COVID crisis.

Speaking about the stimulus package announced, Mr. Vijay Kalantri, President, All India Association of Industries (AIAI) said, “This is a most timely policy move as it will stimulate increase in investment, production and thus job creation. I hope from the coming quarters the economic growth will return to the positive territory,” After contracting a whopping 23.9% in the first quarter of 202021, the Indian economy is predicted to contract at a much slower rate of 8.6% in the September quarter, according to the Economic Activity Index of the RBI. As a sign of recovering economic activity, the GST collection in the month of October surpassed Rs. 1 lakh crore mark for the first time

in the current financial year. Also, the unemployment rate has fallen drastically from as high as 23.5% in April 2020 to 7% in October 2020, according to data from the CMIE. The government’s incentives for employment creation under the Aatmanirbhar Bharat Rozgar Yojana will encourage MSMEs to hire more workers with monthly wages less than Rs. 15,000. Other measures such as provision of additional 20% credit to borrowers in 26 stressed sectors, waiver of Earnest Money Deposit (EMD) for government contractors and launch of debt platform for infrastructure financing are excellent moves to stimulate economic growth.

In the coming months, the government can also consider the following measures to address some of the challenges faced by the industry. The government has provided income tax relief to home buyers and real estate developers by enhancing the differential between circle rate and agreement value to 20% from the existing 10%. The move will reduce the tax burden on new home buyers and

thereby increase sale of residential properties. In future, all state governments should revise the circle rates in their areas to reflect the downward movement in real estate prices in the aftermath of the COVID crisis.

Currently, there are no rules under the Insolvency and Bankruptcy Code for winding up of loss making proprietorship or partnership firms, as it exists for the corporate sector.

The government should frame rules or mechanism for winding up of these firms, as it will benefit thousands of sick proprietorship or partnership firms.

Lastly, there is a need to ensure payment of dues of MSMEs by large firms that have gone into insolvency or that are likely to go into insolvency proceedings under the IBC code. Currently, under the waterfall mechanism of the IBC code, MSME suppliers are treated as sundry creditors and repayment of their dues happens after meeting the dues of financial creditors. In this circumstance, the government should evolve a mechanism where the dues of MSME suppliers owed by large companies that are facing or likely to face insolvency proceedings is paid under the insolvency and bankruptcy code.

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NEWS - BITS DP World Caucedo Increases Operating Capacity With Expansion Of Main Berth

DP World, the global logistics solutions provider, inaugurated the expansion of the main berth at the DP World Caucedo port terminal. The project is part of the company´s plan for growth in the Dominican Republic, with the objective of directly contributing to the transformation of the country into the principal logistics hub of the Americas.

The inauguration ceremony was held at DP World Caucedo and was led by the President of the Dominican Republic, Mr. Luis Abinader, and the Group Chairman and CEO of DP World, Sultan Ahmed Bin Sulayem. The event was also attended by other representatives of the Dominican Government including Victor “Ito” Bisonó, Minister of Industry and Commerce, José Ignacio Paliza, Administrative Minister of the Presidency, Carlos L. Díaz Morfa, Minister of Defense, Eduardo Sanz Lovatón, General Director of Customs, and Jean Luis Rodríguez, Director of the Dominican Port Authority, as well as local executives of DP World.

The expansion adds 450 meters of berth. Three Super Post Panamax and 5 RTG cranes have already been installed, the most sophisticated and robust equipment on the market. Next month a further Super Post Panamax crane and 5 additional RTG cranes will be added. The expansion more than doubles the port capacity from 1.2 million TEUs per year to 2.5 million TEUs per year.

Global Ports launches regular container train service from VSC terminal to Yanino Logistics Park

Global Ports announces launching of a regular container train service from the terminal of Vostochnaya Stevedoring Company (VSC) in the Primoriye Region to Yanino Logistics Park (“Yanino”) in the Leningrad Region as part of the development of the Group’s railway transportation service offering.

The trains depart from Nakhodka-Vostochnaya station leaving for Zanevsky Post station on a weekly basis. The travel time by rail is 11 days.

The new service is designed for the swift delivery of industrial and consumer goods that arrive from the Asia-Pacific region at VSC by regular sea lines to the northwest of Russia. As part of the cargo handling services at Yanino, clients are offered customs clearance (wh ere required), storage facilities, and further loading into containers or onto road vehicles. Future planned services will include cargo marking at the customs warehouse.

The first train from the Far East of Russia to the Leningrad Region on this service shipped 145 TEU of goods from South Korea.

Brian Bitsch, Chief Commercial Officer of Global Ports noted: “The new service will enable our importer clients to reduce delivery times, on average, by 4 times compared to the alternative route via the Suez Canal, and manage their logistics costs, given that rail transportation avoids currency fluctuations.”

World Distribution Services doubles Savannah footprint World Distribution Services (WDS), a Cleveland-based logistics and transportation company, is expanding its operations to more than half a million square feet in the Savannah market, with a new 280,000 square-foot distribution center in Pooler. Company officials held a grand opening Friday at the new warehouse, expected to provide up to 50 jobs, the Georgia Ports Authority (GPA) said in a press release.

“We are happy to welcome World Distribution Services’ expansion of jobs and cargo capacity,” said Cliff Pyron, chief commercial officer at the Georgia Ports Authority. “With record container volumes crossing the docks at the Port of Savannah, such private investment is vital to the smooth flow of cargo beyond our gates to inland markets.”

The new distribution center more than doubles the WDS presence in Savannah, adding to an existing 250,000 square-foot operation. Duncan Wright, president of WDS, said the additional space will support business growth and allow the company to take on new clients. “Our existing facility has been at capacity for more than two years,” said Wright. “Based on the increased freight traffic moving through Savannah, we wanted to help support the growth the GPA is driving. This facility positions WDS for future success in the market.”

Pyron said the expanding market of third-party logistics providers in Savannah serves as a magnet for new business. “Private investment in logistics extends and expands the reach of the GPA to new customers,” Pyron said. “Not only do 3PLs bring customers with them when they locate here, but available warehouse and cross-dock capacity is an important factor for companies establishing new supply routes.”

CUSTOMS EXCHANGE RATES Notification No.106/2020 (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 13th Nov. 2020

RATE (INR) Import Export 54.50 203.40 57.55 11.35 11.90 88.80 9.75 250.70 51.15 8.10 97.95 21.05 20.45 55.65 4.85 8.60 83.20 9.80 20.90 75.15 72.60 6.75

52.20 190.95 55.55 11.00 11.50 85.65 9.40 235.10 48.85 7.85 94.60 19.75 19.20 53.80 4.55 8.30 79.85 9.25 19.60 73.45 69.90 6.35

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

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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

New DNV GL Class Rules for Floating Offshore Wind Expands Industry Horizon

Swire Shipping Deploys Newbuild Vessel MV Lae Chief on North Asia Express Service

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Chennai

Port Wings News Network wire Shipping has deployed its first 2,750TEU newbuild, MV Lae Chief, on its newly upgraded North Asia Express (NAX) service. Launching the new fixed-day fortnightly service with her maiden voyage, the vessel made her first port call in Shanghai on 5 November 2020.

She made subsequent port calls in Ningbo, Nansha and Hong Kong SAR, and is currently en route to make port calls in Lae, Port Moresby and Townsville before returning to Shanghai.

The new 2,750TEU vessel is fitted with three 45mt cranes capable of dual lifts, ensuring that they are well-equipped to carry all cargo types, including breakbulk, out of gauge and reefers. With strengthened tank tops to 20t/ m², MV Lae Chief is capable of carrying breakbulk such as steel and forest products, as well as vehicles up to 70t.

New, modern vessels deployed to support growth in the region At 2,750TEU nominal capacity, MV Lae Chief and her sister vessels will be Swire Shipping’s largest container vessels calling in Papua New Guinea. Swire Shipping will deploy three newbuild vessels on the upgraded NAX service, offering its customers andthe communities it serves a reliable fixed-day product that will support continued growth in the region.

Mr Jeremy Sutton, General Manager of Swire Shipping, said, “This is a proud moment for Swire Shipping, not only because we have launched the fixed-day fortnightly service from North Asia to Papua New Guinea and Australia, but also because we have done this by deploying these owned, modern and eco-

friendly vessels.”

Mr Jeremy Sutton stated: “By deploying these new ships on our upgraded service, customers will enjoy a more frequent product, delivered on fixed-days and with the ability for future growth.”

Providing shipping solutions sustainably The eco-friendly and high-quality newbuilds, which are owned, crewed and technically managed by Swire Shipping, will offer customers an exceptionally reliable and sustainable solution to their shipping and cargo needs.

Commenting on the launch of the new vessel, Mr Sutton said, “We are delighted to have named this vessel Lae Chief, which highlights our dedication to the region. Swire Shipping has operated in the Pacific region for more than 80 years and our aim is to enrich lives by connecting customers with communities in the Pacific. We recognise that our key markets rely heavily on shipping services and we strive to provide these shipping solutions in a sustainable way, while saving our customers’ time.”

“We have invested significantly in Project Cerulean and the Moana Taka Partnership to benefit the local communities, and we are confident that the fixed-day fortnightly service and the deployment of new, modern vessels to the Pacific will also enable our customers and communities to thrive in the long term,” added Mr Sutton.

MV Lae Chief is the first out of three 2,750TEU newbuilds that will be deployed on Swire Shipping’s NAX service. Its sister vessels, MV Noumea Chief and MV Suva Chief, are expected to be deployed into service in 2021.

FumiGATiON SeRViCeS pVT LTD.,

Nov. 18th - 24th Issue

New Delhi Port Wings News Network s the first successful pilots transition into the first commercial projects, floating offshore wind is opening up new vistas to offshore wind generation.

To help expand the segment, DNV GL, the world’s leading classification society, has released the first integrated rule set for floating offshore wind structures (DNVGLRU-OU-0512).

The rules provide both new entrants and experienced stakeholders a set of welltested rules and standardized processes for these new structures.

Knut Ørbeck-Nilssen, CEO of DNV GL – Maritime, said, “Floating offshore wind is poised to be one of the key technologies that can help build the renewable energy power base that underpins global decarbonization.”

Knut Ørbeck-Nilssen stated: “By bringing many new players into the sector, floating offshore wind can create a massive space of opportunity for yards, vessel operators, and offshore companies. Unleashing this industry will require businesses from many different sectors and new types of standards to enhance cross sector cooperation. Our new rules build from this foundation – bringing together offshore, energy, maritime and digital expertise to form a truly integrated rule set.”

The newly developed DNV GL class rules for floating wind turbine installations, DNVGL-RU-OU-0512, apply standardised well-proven maritime processes and apply them to floating wind. Owners, designers and

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manufacturers benefit from being able to shift into this exciting new segment, while having a familiar framework so that new processes can be seamlessly integrated into their existing production structures.

The rules are flexible enough to cover all potential hull shapes, including barge, semi-submersible, vertical floating columns (Spar) and tension-leg platform. The basic classification scope covers the floating structure, including mooring systems, with an additional voluntary class notation covering the power generation system, including the tower. The rules are also designed to scale – considering not just the individual units but the entire field with data-based services and condition-based monitoring (CBM) and through linking with fatigue methodology sensor data.

Geir Fuglerud, Director of Offshore Classification at DNV GL – Maritime, said, “Scaling up floating offshore wind will depend on empowering interested businesses with the confidence to take on a new challenge.”

The DNVGL-RU-OU-0512 classification rules have been developed to complement DNV GL Group’s existing verification and certification services and standards for the floating wind energy market. DNV GL has an unmatched track record in enabling offshore wind projects, with an involvement in virtually all of the world’s offshore wind projects. In addition, 80% of the world’s offshore wind projects and 50% of all floating wind pilots use DNV GL as a certification body.

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