Port Wings Maritime Exim Weekly Newspaper 2 Dec 2020 Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, December 2, 2020

8 Pages

Global Container Shipping Lines Rebound From Covid-19 Impact Chennai

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Port Wings News Network inally, global container shipping is showing a strong rebound, leaving behind the Covid-19 pandemic, going by the financials of the world’s two largest container shipping lines — AP Moller-Maersk and CMA-CGM, reports BusinessLine.

During the third quarter ended September 30, 2020, both the global shipping companies showed improved volumes when compared to the previous two quarters. Both of them are active in India. Any impact on the global shipping will have a cascading effect on Indian trade too, said industry experts.

During the fourth quarter, maritime activity is likely to be more sustained than during the third quarter due to the ongoing increase in volumes. This momentum is particularly marked in the US and Latin America and allows the fleet to continue operating at full capacity as during the third quarter.

The CMA-CGM group while announcing the third quarter financial results said that volumes carried during the third quarter of 2020 continued to recover and were up 16.8 per cent File Photo

compared with the second quarter of 2020. Volumes were also up one per cent compared with the third quarter of 2019.

Easing of lockdowns The increase in volumes transported was due to the pick-up in global economic activity following

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Container Shortage In Asia Pushes Up Shipping Costs Chennai

the easing of various lockdown measures; the strong momentum in terms of the consumption of goods encouraged, in some locations, by support packages; strong e-commerce growth with inventory rebuilding and the usual seasonal variation in business activity in preparation for both the September and Christmas peak consumption periods in western countries.

During the third quarter A.P. Moller-Maersk improved profitability across the business and delivered strong free cash flow, despite the negative impact on global economies from the Covid-19 pandemic.

The global demand growth for containers is expected to contract Contd. on page -2

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Port Wings News Network ontainer shipping rates from China to Southeast Asia are surging due to a shortage of transportation space in the Asian region, the result of an uneven distribution of containers to meet surging shipping demand from Asia to Europe and the U.S, according to Nikkei.

Container shipping rates, including those for Europe and the U.S., are likely to remain at high levels, as it will take some time before the shortage is resolved.

As of mid-November, the cost to ship a 20-foot container from Shanghai to Singapore was around $802, up 370% from $170 a month ago, according to data released by the Shanghai Shipping Exchange.

Container shipping rates have remained relatively stable as it is a route full of small container vessels.

Singapore is a trading hub for Europe, the Middle East and East Asia, and operators reship their cargo from China and Southeast

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Asia to the rest of the world there. As a hub, Singapore’s shipping demand is growing, as shipments for Europe and the U.S. are increasing.

According to data compiled by U.S.-based trade database provider Descartes Datamyne, marine container shipments from Asia to the U.S. in October hit record highs, up 23.3% from the same period last year. The cost to ship a 40-foot container from Shanghai to the U.S. has also remained at an all-time high of $3,913 since July.

As sales of furniture and appliances are rising, “it seems that retailers are building up their inventories to brace for a resurgence of COVID-19 cases,” said Takuma Matsuda, professor at Takushoku University in Tokyo.

A surge in shipments to the U.S. has resulted in containership congestion in the U.S. gulf region, resulting in delays in unloading.

There is not enough transportation space from Shanghai to Southeast Asia as container vessels and air containers have been unable to return to Asia.

Usually, container traffic volume tends to rise from August to October ahead of the year-end shopping season in the U.S. and level off after that. But this year traffic volume has remained at a high level in November.

Contd. on page -2 Due to Space Constraint, “Vessel Position at Terminals” will be published next Week Visit

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Inside Govt Allows Foreign Seafarers...

Concern Over Container Shortage...

Govt Moves To Regulate Shipping...

Chennai Air Customs Seize...

Pg-2 Pg-3 Pg-4 Pg-5

Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7 Senegal Joins World Logistics... Pg-7 Singapore Supports 11 Projects... Pg-8

Christmas special

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2021

The special edition will carry articles from all verticals of EXIM trade and special interviews from well-known personalities in the sector.

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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

Dec. 2nd - 8th Issue

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Global Container Shipping Lines...

Wednesday, December 2, 2020

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Ocean Economy is At Sea

oday, more than three billion people depend on the marine economy for their food and livelihoods. Meanwhile, our oceans are under increasing pressure with advances in technology, busier seas and pressing environmental challenges.

When it comes to ocean resources, rarely have we been able to balance growth with sustainability. As much as 40% of the world’s oceans are heavily affected by human activities, including pollution, acidification and depleted fisheries and coastal habitats.

Meanwhile, sea level rises triggered by climate change are placing our coastal regions at an increased risk of flooding and coastal erosion – both of which significantly impact coastal economic development.

Most worryingly, the truth is that the most acute effects and burdens of these significant sustainability challenges will not be experienced equally by us all but will instead be felt most harshly by vulnerable coastal communities in developing countries.

Much has been said about the disruption in more familiar sectors such as airlines, restaurants and sports — but the long arm of COVID-19 has also reached out to sea, affecting our “blue economy.”

If the ocean were a nation, it would rank as the 7th largest economy in the world.

Maritime shipping has seen COVID-19-associated drops in activity of up to 30% in some regions.

Lockdowns and reduced demand for seafood have seen fishing activity fall by as much as 80% in China and West Africa. Entire nations dependent on ocean and beach associated tourism have shut their borders.

Globally, COVID-19’s impact on tourism may amount to a $7.4 billion loss and could put 75 million jobs at risk. Some of the COVID-19 stimulus packages that are being designed to recover land-based industries and communities are also exploring ways to leapfrog forwards into greener modes of operation. However, little is being considered for bluer modes of operations. Similar opportunities, however, await us in our ocean and on our coasts.

For centuries, the oceans have been the mainstay of the world economy. From the earliest sailors and traders to the megaships and offshore activity of today, global prosperity and how we manage marine resources have always been inextricably linked.

Now understood as a variety of sectors and industries that constitute the ‘Blue Economy’; including development, technology and sustainability, which we estimate to be worth £3.2 trillion by 2030.

At the same time, our oceans are under more pressure than ever before. Climate change threatens our ocean ecosystems and the way of life for millions around the globe. And with the world engaging in a drive for balancing economic growth with sustainability, it is vital that we find ways to use our ocean responsibly.

The United Nations has placed the world’s oceans at the heart of its Sustainable Development Goals. Meanwhile, the 2020s have also been marked as the ‘Decade of Ocean Science for Sustainable Development’ – a reflection of the growing importance of ocean scientific disciplines including hydrography.

Marine geospatial data is now emerging, with growing international recognition, as one of the core pillars that will support decision-making and policymaking when it comes to the ocean environment. Marine geospatial data is a wide term that spans a huge resource of information at our fingertips. From the bathymetric and seabed data depicted in the navigational charts that underpin maritime trade and safety of life at sea, to the tidal and marine habitat information needed for sustainable fisheries and renewable energy, the potential applications of this resource are varied and exciting. Around the world, we see examples of this kind of collaboration in action. For example, through the Commonwealth Marine Economies programme, the UKHO works with partners, such as the National Oceanographic Centre, the Centre for Environment, Fisheries and Aquaculture Science, and commercial Sample survey contractors, to support the Blue Economic development of 17 nations.

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TEXT

There is thus an urgent need to restore and repair ocean health. The future of global food security, maintenance of a balanced marine life, and unexpected impacts of changing ocean ecosystem on existing coastal infrastructure and blue economy will be significant if left unchecked. The need of the hour is to understand the impacts of the environmental changes at sea, expedite the mechanisms for conservation and preservation and thereby ensure the longevity of the oceanbased economy.

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Continued from page -1 by 4-5 per cent in 2020 due to pandemic. Organic volume growth in Ocean is now expected to be slightly below the average market growth from previously in line with or slightly below the market.

“Our progress in earnings and in our transformation allows us to look confidently past the extraordinary 2020. However, we remain well aware of the high level of uncertainty the pandemic and associated lockdowns continue to pose in the coming quarters,” said Søren Skou, CEO of A.P. Moller Maersk, in a statement.

Charter rates improve Commenting on the rebound, Sai

Krishna, Assistant Vice-President, ICRA Limited, the global container shipping sector has witnessed significant improvement in charter rates in the current fiscal, despite the impact of Covid-19. This can be attributed to the ability of the global container shipping companies to manage supply better during the downturn, aided by the consolidation that has happened in the sector in the last few years and the top 5 companies controlling around 65 per cent market share.

In Q3 FY2021, the rates have remained healthy and the demand has also started witnessing recovery, especially in the Transpacific routes.

Nonetheless, there are limited

Indian players in this segment and they mainly operate in the coastal trade. They are also expected to benefit from the high rates in the segment, he said.

The third quarter outstanding is only regained over the last six months shortfall, now there is a vacuum for empty equipment thus the escalated freights.

“Overall, we have observed 10 per cent degrowth in imports and 5 per cent degrowth in exports. Having seen the worst, now it is time for rebound for positive growth, which is a good sign for India as well as for the global trade,” said Ennarasu Karunesan, Founder & CEO, UMK Group, an International Ports & Logistics Expert.

Container Shortage In Asia Pushes Up...

Continued from page -1 “I have never seen this much demand in mid-November,” said a representative of a leading containership operator. “We have been forced to use old containers that were supposed to be disposed

of under ordinary circumstances.”

The cost to ship a 20-foot container from China to Europe also jumped 49.5% in a month to $1,644. Container shipping rates remain at record highs in all routes, but “many cargo owners want to

ship their goods even at a premium on regular spot rates,” said a representative of a containership operator. Active container demand in the U.S. is having implications for global container shipping costs.

Govt Allows Foreign Seafarers To Sign On At Indian Ports Mumbai

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Port Wings News Network isoriented lot Depression, anxiety, stress and insecurity are at their peak among seafarers, both on-board and ashore, reports BusinessLine.

The standard operating procedure for sign on of Indian seafarers issued in April will be applicable to sign on of foreign seafarers The government has allowed the foreign crew to embark on ships at India ports following through its July decision to let foreign seafarers sign off at the country’s ports.

The decision to allow sign-on

of foreign crew at Indian ports follows representations received from organisations such as the International Maritime Organisation, International Labour Organisation, International Civil Aviation Organisation and International Chamber of Shipping to facilitate crew change at ports and airports to maintain uninterrupted supply chain and to avoid a humanitarian crisis at sea, director general of shipping, Amitabh Kumar said in a circular issued on Saturday.

The standard operating procedure (SOP)/protocol for sign-on of Indian seafarers issued in April will be applicable to sign on of foreign seafarers also, Kumar said.

The coronavirus pandemic has severely impacted the ship to shore interactions, including crew changes, which has become a grave humanitarian issue for seafarers, threatening the safety of navigation and world trade.

Currently, hundreds of thousands of seafarers are stranded onboard ships, having seen their contracts extended beyond the maximum duration of service periods accepted under international treaties - less than 12 months - and a similar number of seafarers are waiting to join ships, according to the IMO, the United Nations agency tasked with regulating shipping.

Bulk Carriers, Over 1,000 Seafarers Left Stranded As China Labels Australian Coal As Poor Quality Chennai

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Port Wings News Network hina has labelled Australian coal as poor quality as hundreds of seafarers languish on stranded bulk carriers off the Chinese coastline, unable to offload their cargoes in the ongoing political spat between Beijing and Canberra, reports Splash.

More than $500m worth of Australian coal is on ships anchored off Chinese ports, according to Bloomberg with data intelligence firm Kpler tracking about 5.7m tons of coal and approximately 1,000 seafarers on the 66 stranded vessels at anchorage in China, most of them off the northeast coast near the ports of Jingtang and Caofeidian.

Canberra and Beijing have seen relations sour significantly this year with Australia leading the charge to investigate the origins of the coronavirus. China has slapped bans on a host of Australian products in response.

In 2019, China’s global purchases of coal totalled $18.9bn, with almost

50% coming from Australia.

China said imported coal had failed to meet local environmental standards.

“In recent years Chinese customs have conducted risk monitoring assessments on the safety and quality

of imported coal, and we found that many coal imports have failed to meet environmental standards,” a government spokesperson said in Beijing yesterday.

Crew of one bulk carrier stuck at the Jingtang anchorage over the past five months issued a public letter on their plight this week.

“The crew on board is like

political hostages and slaves owned by charter and cargo owners. This is a violation of human rights.

We are humans and have rights for our freedom,” the crew of the Knightship bulk carrier wrote in an urgent plea to resolve the political impasse.

One winner from the Australian coal ban has been Russia. In the first 10 months of the year seaborne imports of Russian coal to China have leapt 40% yearon-year. However, Russia does not have the production capabilities to fill in for all of the potential missing Australian coal with brokers Braemar ACM suggesting recently this could translate to more long-haul trade from Canada and the US, as well as a likely increase in the flow of overland coal volumes into China from Mongolia.

Dec. 2nd - 8th Issue

Concern Over Container Shortage

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Chennai

Port Wings News Network mpty 40-foot-containers are currently in short supply – more than ever before.

Nico Hecker and Christian Halgmann from Hapag-Lloyd´s Container Steering department explain why now it is particularly important that everyone at Hapag-Lloyd works closely together. Even unconventional measures need to be considered.

The supply of empty containers is under enormous pressure and reflects a historic challenge our entire industry is facing.

The unprecedented speed with which the COVID-19 pandemic has impacted economic developments becomes clear in a conversation with Nico Hecker and Christian Halgmann from Container Steering.

We are sitting in front of the container utilization chart of the 40-foot container fleet and see a very clear “V”-shape in the development curve. “From the third quarter onwards, things really started to get challenging,” says Nico Hecker, Director Global Container Logistics.

While the demand in the second quarter was extremely low and we were searching for strategic and cheap storage places for containers, the demand for equipment has now increased tremendously.

Hard to believe that in early July 600,000 TEU of 40’ containers were “empty on ground” And today? “The 350,000 TEU sitting on ground are hardly covering 2 weeks

of global export volumes – ”.

A “Black Swan” has appeared “We are currently seeing a ‘black swan’ and are experiencing the strongest increase in 40’ demand following one of the strongest decreases in demand ever. Both happening within just 6 months. Almost 3 out of 4 containers in our 40-foot fleet are currently deployed in Customer Shipments and is therefore not available for the time being.

The containers must be returned to China as quickly as possible to be equipped for an expected strong fourth quarter”, explains Hecker.

“Considering this enormous and unprecedented pressure, optimizing container utilization and availability is not a task for one department but a task for the entire company,” he continues.

“We all have to exchange ideas and decide which businesses we want to push primarily.”

Do we deliberately want to transport empty containers instead of cargo to speed up availability in Asia? Will our customers accept it if we transport their cargo in other container types?

The development mainly affects the 40-foot standard high-cube container. This container is mostly booked for consumer goods. And it is now in higher demand than ever before.

“We were the first mover in 2020 by placing an order for 91,000 TEU new HL branded containers in January already for production from March to July. In addition, 80,000 TEU were leased in March, even though the expected increase did not yet become apparent

in April, as many countries outside Asia went into lockdown.

Supported by our leasing partners involved, we have delayed the pick-up of the containers to the 3rd Quarter creating a competitive advantage”, says Christian Halgmann, Director Container Procurement.

“These very containers helped us a lot in the third quarter when it came to buffering the current rush in the market,” says Nico Hecker. With the return of normality, business developed particularly positively in the third quarter. But the ships leaving China are not returning at the same time to the same extent.

“The leasing market for new and used containers in Asia, Europe and other demand Areas is basically empty,” continues Halgmann. “Currently the demand for new containers is exceeding the production capacity by far, resulting in lead times for newly built containers until end of Q1/2021.

This applies for own production as well as for leased containers. Fortunately in September we could secure some leasing volume to be delivered prior Chinese New Year 2021 to support our customers.”

RETHINKING AND STAYING FLEXIBLE: WHAT IS CRUCIAL NOW? The current situation makes it particularly clear that the shortage of empty equipment is affecting all areas of Hapag-Lloyd already today. Once the containers are empty, they must be refilled as quickly as possible.

Currently, we are doing that 25 percent faster than usual.

Every container counts! And in order to manage this optimally, colleagues from all departments have to do their part, be that Trade Management, Network, Operations and Commercial teams. Together they take unconventional paths for HapagLloyd’s customers.

For example, 40-foot reefer containers that have been switched off (so called NonOperated-Reefers) are filled with dry goods like textiles, shoes or electronics to Reefer demand locations. 20-foot containers and 45foot containers will likely be the next types offered as substitute for 40-foot containers, to take advantage of all containers that we have.

Whether High Cube or Reefer: Bringing empty containers and open space on our ships towards Asia together is one of the critical success factors. Container Logistics and Slot Control Team in all Regions are working closely together to make sure no slot remains unused. “30,000 TEU of empty containers are lifted towards Asia week-by-week, with a strong push for more” says Nico Hecker.

“When we don’t succeed in meeting evacuation demand, we are chartering extra ships to get the empty containers to their destination. This is not cheap and at this moment a limited option – as charter vessels are extremely scarce as well.” Since the beginning of this year, we moved 164,000 TEU of empty containers on 44 vessels, which were deployed for empty loader voyages.

“Every Areas globally has to tighten their belts and working on a smaller safety buffer,” says Nico Hecker. “We have to reduce empty idle times even further and shorten loading times, which means that the container is only available for exporters seven to eight days before the ship arrives. A better availability of containers is THE competitive advantage in this prevailing market environment. All teams involved are aware of it and that is what drives us.”

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Colombo Port Congestion: 50,000 TEU Logjam Drives Delays And Rate Hikes

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Chennai

Port Wings News Network backlog of 50,000 TEU at the port of Colombo is causing chaos for South Asian transhipment cargo, reports The Loadstar.

The capital of Sri Lanka has been under a Covid-lockdown for the past couple of weeks, while a labour shortage at the city’s container terminals has caused congestion since early October.

Now, the bottleneck is impacting supply chains in neighbouring India and Bangladesh.

Rohan Masakorala, chief executive of Shippers’ Academy Colombo, said the port of Colombo’s workforce had been reduced by around 30%, resulting in a big hit to crane productivity and inter-terminal trucking. “The backlog is huge and could take six-to-eight weeks to clear up,” he told The Loadstar.

“Colombo International Container Terminal (CICT) mainly focuses on transhipment, while the other two terminals handle feeder vessels, so there is a vital need for inter-terminal transfers.

“The lack of drivers meant containers started accumulating in the storage areas of the port, which began impacting feeder vessels – waiting for more than a week, sometimes – and then even mainline vessels were delayed by one or two days.”

Given that Colombo handles around 600,000 teu a month, Mr Masakorala said regional feedering and connectivity was being massively disrupted, with carriers forced to drop off boxes in India, Singapore and Dubai.

He added: “Colombo isn’t the only port impacted by Covid, of course, but as a

transhipment hub, the impact is much higher and the whole region is affected. Even now, there are 23 ships waiting for a berth, whereas normally the port receives 12-16 vessels a day, so that’s quite a number out of their window.”

Inevitably, freight rates have doubled out of Colombo, with shippers needing to book up to eight weeks in advance to get a slot, he explained.

“Some shippers have had cargo rolled for four weeks in Colombo and two weeks in Singapore,”

Mr Masakorala said. “Freight forwarders were severely affected, as some emergency shipments had to be airlifted or go to a third port to connect, increasing costs and transit times.”

Now there are concerns the port’s reputation could be tarnished, he added, given that rival ports in India, Bangladesh and Pakistan were fully operational. Sri Lanka has big ambitions to become a global maritime and logistics hub, on par with Dubai and Singapore, but Mr Masakorala said less-than-containerload (LCL) clearance and consolidations had been “severely affected”.

Colombo handled 7.2m teu in 2019, but Mr Masakorala reckons throughput will be down 10-20% this year.

IMO To Pursue Industry-Funded $5-B R&D Proposal To Decarbonise Shipping

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Mumbai

Port Wings News Network overnments across the globe have agreed to give further consideration to the concept of an International Maritime Organisation (IMO)-supervised, industry financed, $5-billion fund, to be governed by an autonomous board, to accelerate the introduction of zero-emission technologies for maritime transport, reports BusinessLine.

The proposal — backed by eight of the global shipping industry’s top associations — seeks to impose a mandatory levy of $2 per tonne of fuel consumed by ships to fund R&D projects by raising an estimated $500 million annually and $5 billion over 10 years.

Questions linger The fund would be administered by an autonomous organisation, to be called the International Maritime Research and Development Board (IMRB). The eight groups are seeking to make the IMRB running by 2023. The first-ever discussion on the proposal at the IMO, the United Nations’ agency tasked with regulating shipping, was held during its Marine Environment Protection Committee (MEPC) meeting last week. Governments, while broadly welcoming the proposal, also raised a number of legitimate issues for the IMO to address.

“India has not opposed the proposal but raised concerns on several areas which need detailed deliberations,” a government official said.

Questions on the governance of the R&D Fund and IMO oversight and the need to take account of the economic impact on states of the proposed mandatory levy and to address the interests of Least Developed Countries (LDCs) and Small Island Developing States

(SIDS) were raised.

Every advancement in technological certainty increases investment certainty, reducing the future cost of the transition to zero-carbon fuels and technologies, and accelerating the pace at which that transition can occur, says the International Chamber of Shipping, the global trade body for shipowners and operators, and one of the eight groups to moot the R&D Fund.

“With the $5 billion in core funding over a 10-year period, generated from industry contributions, the IMRB will create the technological and investment certainty to spur innovators, engineers, energy companies, shipyards, financial institutions, and engine manufacturers to accelerate the R&D effort required to decarbonise shipping,” the ICS said in a statement.

Greenhouse gases The IMO’s greenhouse gas (GHG) strategy, adopted in 2018, sets ambitious targets to halve GHG emissions from ships by 2050, compared to 2008, and reduce carbon intensity of international shipping by 40 per cent by 2030.

The IMO’s MEPC meeting also approved draft new mandatory regulations to cut the carbon intensity of existing ships.

The draft amendments proposed would require ships to combine a technical and an operational approach to reduce their carbon intensity, the IMO said after the meeting.

“The IMO 2050 climate targets can only be achieved with the immediate acceleration of zero-carbon fuels and technologies. The IMRB is a crucial vehicle for driving the progress needed to build a zero-carbon shipping industry, and the necessary funding can only be provided within the global regulatory framework of IMO,” the ICS added.

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Dec. 2nd - 8th Issue

New Technology May Weaken Seafarers’ Professional Judgment Mumbai

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Port Wings News Network he conditions for exercising professional discretion have deteriorated due to increased pressure on procedures at sea.

Seafarers believe the trend could endanger maritime safety. according to a report in Norwegian SciTech News.

A good sailor has traditionally been a person who makes decisions that ensure that their ship, cargo and crew are safe. Good seamanship has not been synonymous with following procedures and doing everything by the book. Maybe just the opposite.

Opposing a set of rules that are perceived as irrelevant or written on land can almost be seen as part of the identity and professional pride of seafarers.

Today, the profession is undergoing radical change, and so is the seafarers’ own understanding of their role. New seamen and seawomen are trained to follow procedures, reducing the opportunities for them to exercise their discretion. Seafarers perceive this development as a threat to safety.

Technology and procedures take over “A lot of the practical work on board ship is embodied knowledge that needs to be learned through working with experienced seafarers.

The formalized procedures seem to value this knowledge transfer less,” says Torgeir Kolstø Haavik from NTNU Social Research.

He and a research team at NTNU and Safetec, a provider of risk management services, have interviewed fourteen seafarers aged 22 to 62, and have documented their

understanding of how the profession has changed.

The work was carried out as part of the “Professional competence, standardization and safety in aviation and the maritime industry” project.

“Technological and administrative changes in the work environment affect how we understand good seamanship and maritime safety. The bridge has seen a lot of new technology, including navigation and positioning,” says Haavik.

New technology has changed the work tasks in the engine room as well, with increased automation and data collection for use in onland analyses. Most situations have technological solutions, such as keeping the boat in a stable position during loading and unloading at offshore installations.

“It’s almost like you’re not allowed to think for yourself anymore, because procedures take care of everything.”

All these innovations alter the professional competence related to safety. When navigators monitor the automatic systems instead of doing the navigating themselves, the classic nautical skills aren’t all needed or sufficient to do the job.

Out of practice using professional judgment “The job and the tasks are changing. That’s a fact,” says Haavik. “And being able to follow procedures and monitor the technology is usually good enough.”

But, he points out, operations at sea can involve other vessels, technical problems and demanding weather conditions that cause unforeseen situations that there aren’t any procedures for.

One of the sailors interviewed by the researchers puts it this way: “It’s almost like you’re not allowed to think for yourself anymore, because procedures take care of everything.” What the informant describes is a work situation that provides few opportunities for him to use the professional judgment he has acquired through experience. That judgment comes from training, and so sailors are not necessarily prepared if something arises that isn’t covered by the procedures.

The study findings indicate that the scope of administrative paperwork can be at the expense of critical safety tasks.

And this phenomenon doesn’t only exist at sea.

“The room to manoeuvre, where you can exercise your professional judgment, is shrinking in a lot of professions,” says Haavik.

Concepts without content The Norwegian Maritime Code states that “The master shall ensure that the navigation and management of the ship accords with good seamanship.” But what exactly is “good seamanship”? New and experienced sailors have different views on this.

“It isn’t necessarily problematic in and of itself that a concept loses its content. But as long as both international and national regulations require “good seamanship,” and the Accident Investigation Board can conclude that “poor seamanship” has been exhibited, it would be interesting to know what the term means to the professionals. If the content is changing, it’s important for this to be captured and discussed,” Haavik says.

Seafarers Recruitment and Manning Agents To Undergo Annual Performance Grading Mumbai

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Port Wings News Network he Directorate General of Shipping (DG Shipping) will conduct an annual comprehensive inspection programme of the approved Recruitment and Placement of Seafarers Licence (RPSL) holders to improve the quality of maritime education, training and recruitment to maintain India’s stature as a top supplier of crew to global shipping, says a BusinessLine report.

The inspection programme for recruitment and manning agents is designed to grade their performance through an external agency, similar to the one introduced for maritime training institutes in 2015.

The inspection programme will be carried out by one of the eight ship classification societies authorised by the DG Shipping — the Indian Register of Shipping, Lloyd’s Register Group Ltd, Bureau Veritas, American Bureau of Shipping, Nippon Kaiji Kyokai, Korean Register of Shipping. RINA Services S P A and DNV GL A S. There are some 412 DG Shipping

approved RPSL agents and their CIP has to be completed by May. On a review of the existing monitoring process, the DG Shipping felt that the system of inspection of RPSL agencies needed qualitative improvement, the DG Shipping has said.

“Accordingly, the Directorate General of Shipping has developed the comprehensive inspection program for RPSL, which shall be conducted once in a year to grade the performance of RPSL instead of the existing initial, annual, renewal inspections of RPSL,” the country’s maritime administration said in a November 20 notice.

The DG Shipping’s move has come under attack from some recruitment and manning agents.

“A failed idea is being implemented by the DG Shipping,” said Sanjay Prashar, managing director at VR Maritime Services Pvt Ltd, a ship management and crewing company.

“Just more rules” RPSL agencies will now undergo a comprehensive inspection programme that has some 70 criteria to grade as A,

B, C and D. “We want jobs and DG Shipping is busy making more rules.

Has RPSL failed?” he asked.

Since 2015, some 225 CIP has been undertaken for maritime training institutes with 125 been given A1 grading.

“Where is the placement record by maritime training institutes. If the CIP is good, where are jobs for freshers who pass out of the training institutes approved by the D G Shipping,” Prashar, a member on the National Shipping Board, asked.

Acting on complaints that seafarers were forced to pay money to RPSL agents and shipping companies for getting employment on board merchant ships, the DG Shipping has issued a circular in February this year seeking to end such unlawful practices.

It asked Indian ship owning companies and RPSL agents to display a notice at a prominent place on their premises warning that “Section 97 of the Merchant Shipping Act, 1958 prohibits demand of any remuneration directly or indirectly from the seafarers for providing employment”.

Govt Moves To Regulate Shipping Freight Rates Mumbai

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Port Wings News Network he Central government has decided to regulate freight charges levied by shipping firms for export, import and local transportation in a move that is bound to run into opposition from the carriers, according to a BusinessLine report.

The plan to regulate freight charges is one of the new provisions in the draft Merchant Shipping Bill, 2020 prepared by the Ministry of Ports, Shipping and Waterways that seeks to repeal and replace the Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838.

“Every service provider or agent, in respect of any Indian ship or other ship operating in coastal waters, in relation to import, export or domestic transportation, shall specify the allinclusive freight in the bill of lading or any other transport document, in such mode and manner as may be notified,” according to the draft Bill circulated for public consultation.

Bill of lading “No service provider or agent shall levy any freight charges other than the all-inclusive freight specified in the bill of lading or other transport document. The Central government may prescribe the terms and conditions for issuance of the Bill of Lading or any other transport document,” it said.

A government official said that shipping lines are not disclosing their freight to the customers; they quote a certain rate initially and later collect a different rate while invoicing.

This section will say that whatever you are charging you have

to indicate in the document and then take. This will be largely for container shipping, he stated.

“To stop malpractices, regulation is required,” he said.

The move to regulate shipping lines comes at a time when the government has decided to deregulate rates at the 12 state-owned major ports through the Major Port Authorities Bill, which is awaiting approval from the Rajya Sabha.

FIEO’s plea In October, the Federation of Indian Export Organisations (FIEO) had urged the government to regulate the shipping industry to “protect the EXIM sector from sudden and abrupt changes in freight rates”.

The demand came after container carriers raised freight rates by as much as 40 per cent, depending on destinations, since July.

India’s trade which was dominated by imports witnessed a sudden surge in exports and a drastic reduction in imports from late June.

The recent reduction in India’s imports from China had a major impact on the availability of containers for exports. This created a major imbalance in the equipment (containers) situation. “As a result, the shipping lines which until July 2020 used to ship out empty containers from India, had to start repositioning empty containers into the country and move them inland to demand locations at a huge cost. This distortion in demand and supply, with its resultant impact on costs and rates, has not happened just in the case of India but for the rest of the world too,” Sunil Vaswani, Executive Director, Container Shipping Lines Association (India), told BusinessLine in October.

Shipping and Logistics Firms Expect Huge Gains From RCEP Chennai

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Port Wings News Network he Regional Comprehensive Economic Partnership (RECP) agreement will be a strong growth driver for the shipping industry, logistics firms and major ports, industry experts said, reports China Daily.

Participating countries of the RCEP are the 10 member states of the Association of Southeast Asian Nations, China, Japan, South Korea, Australia and New Zealand. They account for around 30 percent of the global population, global gross domestic product and global trade.

Zhang Jun, a transportation analyst from Guosheng Securities, said that more than 90 percent of the China’s imports and exports are handled by the shipping sector, and the significant increase in trade between China and other RCEP members will stimulate Chinese shipbuilding, shipping industries, as well as major Chinese ports whose main business is international cargo.

Shen Xiaofeng, an analyst who specializes in the transportation sector at Huatai Securities, expects the maritime transportation sector to directly benefit from the rising cargo volume under the RCEP agreement.

“We expect the RCEP to represent a new growth wave for ports and the shipping sector as a whole,” said Shen.

According to Shen, coastal ports in China saw a compound annual growth rate of 20 percent between 2001 and 2007, and the rate slowed down to about 7 percent between 2010 and 2016 after the 2008 global

financial crisis.

The RCEP will make the Asian supply chain more interconnected and enable efficient product sales, said Eric Lin, managing director and head of research at UBS Securities Co Ltd. Chen Zhuo, a senior analyst with China Merchants Securities, said the RCEP has bucked the anti-globalization trend of the past few years and is the latest effort in restoring global free trade.

Wang Jingtian, an analyst specializing in transportation with China Galaxy Securities, said the 15 RCEP countries have a combined population of 2.27 billion, GDP of $26 trillion and exports of nearly $5.2 trillion. Equivalent to about one-third of the global economy, the massive economic scale of the RCEP will help China as it embarks on a dual-circulation development pattern, he said.

Since the RCEP covers various industries like cargo, services and investment, it will greatly enhance the overall free trade efforts within the region, said Wang.

The RCEP not only bodes well for the shipping sector, but also gives a boost to a freer flow of people traveling across the region, said Chen from China Merchants Securities. “The RCEP will have a spillover effect for Chinese manufacturers in the ASEAN. It will bring about more passengers for airlines (Spring Airlines for example) with a strong network and business to destinations in East Asia, Southeast Asia, Australia and New Zealand,” he said.

Dec. 2nd - 8th Issue

Ministry of Ports, Shipping and waterways issues Draft Merchant Shipping Bill, 2020 for Public Consultation New Delhi Port Wings News Network inistry of Ports, Shipping and Waterways has issued a draft of the Merchant Shipping Bill, 2020 for public consultation. It aims to repeal and replace the Merchant Shipping Act, 1958 (Act No. 44 of 1958) and the Coasting Vessels Act, 1838 (Act No. 19 of 1838).

The Merchant Shipping Bill, 2020 has been drafted with the primary aim of promoting the growth of the Indian shipping industry by incorporating the best practices adopted by other advanced countries like the U.S., Japan, U.K., Singapore and Australia. All up-to-date IMO Conventions / protocols, to which India is a party, have been adopted in it. Adequate provisions are incorporated to ensure the safety and security of vessels, safety of life at sea, prevent marine pollution, provide for maritime liabilities and compensations, and ensure comprehensive adoption of India’s obligations under International Conventions.

The envisioned advantages of the Merchant Shipping Bill, 2020 are following: • Promoting ease of doing business- The Bill does away with requirement of general trading license for Indian vessels • Embracing digital technology- It enables electronic means of registration, and grants statutory recognition to electronic agreements, records, and log books, in addition to electronic licenses, certificates and payments.

• Increasing tonnage and Vessel as a Tradable Asset-The Bill seeks to increase India’s tonnage by widening the eligibility criteria for ownership of vessels and providing for the registration of bareboat charter cum demise, thereby increasing opportunities for international trade.

• India as a Bankable Shipping Jurisdiction & avoidance of situations leading to wreck -The proposed Bill seeks to introduce for the first-time statutory framework for regulating maritime emergency response against maritime incidents. The provisions seek to provide for time effective implementation of response mechanisms in order to ensure that the same is prevented from becoming a wreck or other catastrophic event.

• Welfare of Indian seafarers on abandoned vessels and safety of abandoned vessels: Provisions for repatriation of abandoned seafarers have been enhanced, in line with the MLC regulations.

• Strengthening adjudication and predictability of claims: In order to strengthen the investigation

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and adjudication of claims arising out of collision of vessels, assessors may be tasked by the High Courts to present their findings on the degrees of fault of each vessel.

• India as an Active Enforcement Jurisdiction- The Bill incorporates powers of the Director-General to take action against vessels that are unsafe, and pose a threat to safety of life at sea and environment, and includes a procedure for appeal from detention orders. The Bill also incorporates provisions that encourage active enforcement of pollution prevention standards and the Central Government has been granted the power to mandate compulsory insurance or such other financial security, for pollution damage.

The Bill seeks to provide increased opportunities for investment and provide greater impetus to a self-reliant domestic investment climate in the maritime industry.

The provisions regulating the maritime education, training, certification and the recruitment and placement of seafarers and ease of registration of ships under the Indian flag will give an impetus to the quality and quantity of Indian seafarers. Consequently, it will boost employment opportunities for Indian seafarers in the national and international market. The benefits will be extended to ancillary sectors connected with the shipping industry in consonance with ‘Atmanirbhar Bharat’ initiatives of the government.

The draft of the Merchant Shipping Bill, 2020 is issued for seeking the feedback and suggestions from the public. This can be accessed on the link: http://shipmin.gov.in/ sites/default/files/Draft_MS_Bill_2020.pdf and suggestions can be sent to msbill2020@ gmail.com by 24.12.2020.

It has been a priority of Prime Minister Shri Narendra Modi’s government to replace all archaic colonial laws with modern and contemporary International laws with active participation of people to enhance transparency in the governance. For the same, Ministry of Ports, Shipping and Waterways recently issued two draft Bills for public consultation, namely ‘Aids to Navigation Bill 2020’ and ‘Coastal Shipping Bill 2020’ and now this historical ‘Draft Merchant Shipping Bill 2020’is being issued, within a short span of time of four months. Moreover, Major Port Authorities Bill 2020 is also under consideration of Rajya Sabha, which has been already passed by Lok Sabha in the last Parliament session. All these Bills are going to generate sweeping waves in the maritime scenario moving India towards a fully developed maritime economy.

Chennai Air Customs Seize Gold Worth Rs. 1.57 Crores, Arrests Three

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Chennai

Port Wings News Network n intervening night of Saturday and Sunday morning based on intelligence that gold was likely to be smuggled from Dubai three passengers, Mohamed Issak,26, of Trichy , Sadiq Ali, 53, and Mohamed Nagoor Hanifa, 36, both of Chennai who had arrived by flight FZ 8517 were intercepted at exit.

On examination of their checked in baggage12,11 and 13 mini LCD monitors were found respectively inside their bags. On opening the monitors 36 gold sheets weighing 1.36 Kg valued at Rs. 68.08 lakhs were recovered from monitors and were seized under Customs Act. Mohamed Nagoor Hanifa was arrested.

Four passengers who had arrived from Dubai by Air India flight IX 1644 Hoosainur Rahman, 22,Mohamed Gani,45, from Ilayangudi, Sivaganga and Abdul karim ,52, and Khader Humayun 25 of Chennai were intercepted at exit.

On examination of their check in bags 28 gold sheets concealed inside mini LCD monitors/screens and 10 gold foils concealed in 5 laptops and 2 gold foils concealed in 2 of their trolley bags were recovered. Total 28 gold sheets and 12 gold foils weighing 1.62 kg valued at Rs 81.25 lakhs were recovered and seized.

Mohamed Gani and Hoosainur Rahman were arrested.

In another case one, Sahubar Aasik, 24, of Ramanathapuram who had arrived from Dubai by flight Indigo 6E-66 was intercepted at exit. On his personal search 3 plastic pouches of gold paste weighing 190 grams was were recovered from his trousers.

On extraction yielded 165 grams of gold valued at Rs 8.26 lakhs was recovered and seized.

Total 3.15 kg valued at Rs 1.57 Crores was recovered and seized under Customs Act, 1962 from 8 passengers. Three arrested. Further investigation is under process, according to a press release issued by the Commissioner of Customs Chennai International Airport.

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Aatmanirbhar Bharat is About Opening India’s Doors Wider: Shri Piyush Goyal New Delhi Port Wings News Network nion Commerce and Industry, Railways, and Consumer Affairs and Food & Public Distribution Minister Shri Piyush Goyal on 28 November 2020 said that Aatmanirbhar Bharat is about opening India’s doors wider so that India engages with the world from a position of strength, on equal, fair & reciprocal terms.

Delivering the keynote address at SwarajyaMag’s programme, ‘The Vision & Philosophy of AatmaNirbhar Bharat’, he said that when we talk of Aatmanirbhar Bharat, the effort is India should focus its energies to create what we can within the country, learn from experiences across the world, bring best of technologies to India, attract capital, skills & high-quality education & healthcare. Technology will play an important role in achieving Aatmanirbharta, and the government will support start-ups & industry in expanding technology ecosystem, he added.

Shri Goyal said that the dream of Aatmanirbhar Bharat can become a reality only if we follow Prime Minister Shri Narendra Modi’s clarion call of Vocal for Local. Stating that Aatmanirbhar Bharat is possible only with janbhaagidaari (people’s participation), he said that AatmaNirbhar Bharat will be a reality but needs the active participation of each citizen. Inviting all to be a part of this journey of a self-reliant India, an economic powerhouse, the Minister said “If we move with determination, enthusiasm & speed, I have no doubt we will be certainly successful in our goal of an Aatmanirbhar Bharat. When you talk of dharma, any of our old legacies & cultural heritage, it always reflects a little bit of focus on: - Aatmanirbhar Individual - Aatmanirbhar Society - Aatmanirbhar Nation. The onus of Aatmanirbhar Bharat is on all of us collectively.”

Shri Goyal said that we must look to leverage Free Trade Agreements (FTAs) with countries with whom we have a transparent trading mechanism, working with transparent business systems, whom you can engage with from a position of strength for certain products. He said that India should focus its energy on doing FTAs with developed countries who are looking for market access in the large Indian markets, but who can also provide us with high technology products while opening the doors in their countries for products where India has strength. The Minister said that one of the primary reasons we could not join RCEP was that some of the countries in RCEP were not democratic, transparent trading systems. “One does have to be cautious when dealing with a partner who does not give a level playing field or reciprocal access”, he said.

Shri Goyal said that Prime Minister intends to prepare India to become a global player in resilient supply chains. He said that India should emerge as a

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trusted partner, when like-minded countries are looking to expand trade or looking for alternate sources for the manufacture of their goods & provision of services.

Shri Goyal said that in manufacturing & production, we are looking at high quality & high productivity levels. Stating that Quality & Productivity will be hallmarks of India’s future manufacturing industry, he said that next month each sector will dedicate a day to focus on them, and promote them. He called upon preparing India, inculcating in every Indian the nationalist spirit of supporting India & Indian production, as well as making India a well-respected manufacturer of goods & provider of services. He said that Production linked incentive programme, which has been expanded to 10 more sectors, will help over 3 crore people in getting wellpaying jobs, both formal & informal. It will help entrepreneurs get incentives in the support ecosystem, he added. “We are identifying more & more sectors which may need de-regulation, hand-holding & some other form of support & incentive.

We are working in close partnership with Industry to define & determine areas where India has competitive advantage & has the capability to make for the world. We are working to make India a proud & selfreliant nation serving people of India & the world. We have received strong directions from PM to work on making it easier to do business in India. Preparing a framework for the enforcement of contracts is a very critical aspect of our work. We are focused on efforts to make it easier to do business.

We are working on Genuine Single Window System.”, the Minister said.

Talking about the farmers, he said that we are now preparing the country & our farmers to become stronger & get the ability to market their product anywhere in the country. “Our farmers have made us self-sufficient in food grains. We are now looking at strengthening the hands of farmers”, he added.

About Indian Railways, Shri Goyal said that it is now looking at the next level of development. “We are looking for more & more Indian suppliers for everything that Railway needs. Today, Railway only procures under 2% of the current procurement from outside the country & we plan to replace that 2% also with Indian products. We will be completely electrified

by December 2023. We plan to invest in 20 GW of renewable energy to become netzero carbon emitter by 2030.”

APEDA Holds Virtual Buyer Seller Meet With Germany New Delhi Port Wings News Network gricultural and Processed Food Products Export Development Authority (APEDA),under Ministry of Commerce and Industry, facilitates export of its scheduled agricultural and processed products through several export promotional activities.

During the Covid19 pandemic period, APEDA continued its endeavour to promote export of agricultural products through the virtual medium. Several virtual buyer seller meets were organised with the importing countries in association with the Indian Missions abroad.

In this series, a virtual networking meet with German importers was organised on 25 November 2020 to promote export of fresh fruits and vegetables from the country.

The event was organised by APEDA in collaboration with Embassy of India, Berlin and German Agribusiness Alliance. More than 70 participants participated in the event.

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On the occasion Ms. Paramita Tripathi, Deputy Head of Mission, Embassy of India, Berlin, Dr. M Angamuthu, Chairman APEDA and Ms. Julia Harnal, Chairperson, German Agribusiness Alliance addressed the participants.

Chairman APEDA in his address gave emphasis on the potential of Indian GI and Organic products as well as processed products. Ms. Paramita Tripathi, Deputy Head of Mission, Embassy of India, Berlin laid emphasis on larger presence of Indian horticulture for their unique taste & qualities.

The event comprised of presentations by the Indian side on the strength of Indian agricultural products in exports specifically grapes and fresh fruits and vegetables. From the German side, there were presentations on the requirements and expectations of the German market.

The event provided a platform to showcase India’s strength in export of fresh fruits and vegetables to further strengthen the confidence of the German buyers in Indian agri products and facilitate exports.

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Dec. 2nd - 8th Issue

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Shipping Bodies Urge Jeff Bezos To Take A Stand For Stranded Seafarers

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Chennai

Port Wings News Network he leaders of the major shipping bodies are calling on the Amazon CEO Jeff Bezos to take a stand for the seafarers stranded at sea due to COVID-19 related travel restrictions.

It is estimated that around 400,000 seafarers have been stuck on ships way beyond their contracts, unable to disembark or reach out to their families, with 400,000 more unable to sign onto ships.

BIMCO, INTERCARGO, International Chamber of Shipping (ICS), and INTERTANKO sent a joint open letter to Bezos asking him to use his influence and profile as the world’s leading retail entrepreneur, whose business relies upon global shipping, to exert pressure on the incoming Biden administration in the US and other world leaders to recognise seafarers as key workers.

The letter among other things says the strength of Amazon’s (and others’) supply chain is central to the success of red-letter retail days like Black Friday.

“If ships do not sail, events on the scale of Black Friday or Cyber Monday would be impossible. Yet unforgivably, more than 400,000 of our seagoing colleagues and seafarers, who underpin the movement of goods around the world, are currently stranded on board their vessels, because governments will not recognise their crucial role and prioritise them for immigration and travel purposes. (…)

“As one of the world’s most prominent entrepreneurs, you have unparalleled influence, which we hope you will use to join us in pushing public recognition of seafarers as key workers, and champion the cause at the highest levels of government, including in the United States with the incoming Biden administration. You have the power to make a real difference for 400,000 dedicated professionals whose self-sacrifice is keeping the world’s marketplace running. “ According to a recent survey carried out

by Lloyd’s Register, twenty-seven percent

of survey respondents indicated poor management of workload and fatigue in their teams and not being able to get a good quality of sleep.

Furthermore, they also report not socialising on board, not being able to exercise as much as they would like to and not having access to good quality food.

The latest Mission to Seafarers’ Happiness Index, released in October 2020, showed that the ongoing crew change crisis has chipped away at seafarers’ hopes for action to resolve the impact of extended employment contracts.

Although the index went up to 6.35, from 6.18 for the second quarter of 2020, the scores dropped as the third quarter progressed.

“2020 has been one of the most challenging years for the world in recent times. But we have seen companies like Amazon increasing their profits thanks to a great extent to the actions of seafarers who have kept trade flowing. We now need leaders like Jeff Bezos to raise their voices in support of the many seafarers who despite being in effect trapped by the crew change crisis have continued to perform their duties,” Esben Poulsson, Chairman of the International Chamber of Shipping, said.

There has been some hope that with the roll-out of the COVID-19 vaccine the crew change crisis might finally start to wind down.

However, the industry bodies fear that there was a risk that sailors could be forgotten again if there was not a specific programme put in place to vaccinate seafarers as a priority.

“Without immediate action from industry and governments around the world, 2021 will be a year of slow and complicated recovery.

For an industry which supports the vast majority of global trade and lies at the heart of viable economic recovery, this represents an unacceptable future. It is of the utmost importance that seafarers are more widely recognised as key workers and prioritised for vaccinations. This is urgently needed to end the nightmare many hundreds of thousands of seafarers have endured over the last year, allowing them to just do their jobs.”

IMO Legal Committee Meet Focuses On Seafarers’ Issue

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Chennai

Port Wings News Network he IMO Legal Committee has begun its 107th session, meeting in virtual session (27 and 30 November and 1 December).

Important items on its agenda include matters relating to the work of the Legal Committee and the COVID-19 pandemic and related agenda items on fair treatment of seafarers and the abandonment of seafarers.

Opening the session, IMO Secretary-General Kitack Lim stressed the need to prioritise the well-being of more than 1.6 million seafarers working on board seagoing ships every day to deliver goods around the world.

“As I have repeatedly emphasized, seafarers are the silent heroes and collateral victims of the COVID-19 pandemic, as travel restrictions have left hundreds of thousands of them stranded on ships, or unable to join ships.

IMO, together with other United Nations system organizations, has taken countless actions to address the serious issues that have arisen during this crew change crisis, and we will continue to seek solutions to put an end to the crisis.,” Mr Lim said.

The Committee will consider a proposal for a new output, to address the fair treatment of seafarers detained on suspicion of committing maritime crimes, recognizing the global nature

of shipping, crossing many jurisdictions, and seafarers’ rights to a fair trial.

A second proposal for new work raises the need to develop a set of guidelines for port State authorities on how to deal with seafarer abandonment cases. Such guidelines could provide a solid basis for the introduction of a unified procedure to follow in order to speed up the process of repatriation of seafarers and to improve port operations.

Another important topic for the Committee concerns unlawful practices associated with the fraudulent registration and fraudulent registries of ships, following agreement at the last session of a series of measures to prevent those unlawful practices The Committee will also consider action being taken to facilitate the entry into force and harmonized interpretation of the 2010 HNS Convention, a key treaty, which, when in force, will address liability and compensation for accidents involving hazardous and noxious substances.

Also up for consideration is the development of a unified Interpretation on the test for breaking the owner’s right to limit liability under the IMO conventions.

The Legal Committee was opened by IMO Secretary-General Kitack Lim and is being chaired by Mr. Volker Schöfisch (Germany).

Cochin Shipyard To Build Electric Vessels For Norway

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Port Wings News Network he Cochin Shipyard has signed contracts for construction and supply of the two autonomous electric ferries for the Norwegian company with an option to build two more identical vessels in July this year, says a CSL statement.

This project is an ambitious one in Norway partially funded by the Norwegian government aimed at emission-free transport of goods across the Oslo fjords.

After the commissioning of autonomous equipment and field trials in Norway, the vessel would operate as a fully autonomous ferry of ASKO that can transport 16 fully loaded standard EU trailers in one-go across the fjords.

The Cochin Shipyard Limited (CSL), the largest shipbuilding and maintenance facility in the country, is building two autonomous electric vessels with zero carbon emission for a Norwegian company.

The production of the vessels began with a plate-cutting ceremony organised virtually at

the CSL here on Wednesday, a CSL statement said. The two vessels are being built for ASKO Maritime AS, Norway.

CSL said it signed contracts for construction and supply of the two autonomous electric ferries for the Norwegian company with an option to build two more identical vessels on July 15 this year.

This project is an ambitious one in Norway partially funded by the Norwegian government aimed at emission-free transport of goods across the Oslo fjords.

Once in operation, the vessels would create a new benchmark for the merchant shipping world in the field of autonomous vessels with zero carbon emission, it said. It further said the 67-metre-long vessels would initially be delivered as a full-electric transport ferry powered by 1846 kWh capacity battery.

After the commissioning of autonomous equipment and field trials in Norway, the vessel would operate as a fully autonomous ferry of ASKO that can transport 16 fully loaded standard EU trailers in one-go across the fjords.

Corona Pandemic No Setback To Bangladesh’s Soaring Ship Industry

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Chennai

Port Wings News Network ork is booming at Bangladesh’s largest shipyard — quite literally.

It’s difficult to hear anything over the cacophony of banging hammers and crackling sparks, proof the industry has withstood the economic shockwaves wrought by the coronavirus pandemic, reports AFP. In this nation of 168 million people, much of the low-lying land is accessed via boat.

Rivers are Bangladesh’s lifeblood, and strong economic growth in recent years has fueled more investments in new and bigger ships.

Every corner of the Char Kaliganj yard is filled with vessels under repair, and the air is thick with the acrid smell of oil and chemicals.

“The dockyards were closed in… the coronavirus lockdown. But now business is booming,” worker Abul Kashem, 66, told AFP, saying he has never seen the yard south of Dhaka busier.

The 15,000 workers sometimes toil seven days a week to meet the demand, said Masud Hossain Palash, who heads the Bangladesh

Dockyard and Shipyard Owners Association.

“Well into the 1980s, these dockyards would only make… one-storey or one-and-ahalf storey wooden ferries,” Kashem recalled.

Now their work includes oil tankers and bulk carriers.

The shipyard sector has soared on the back of the strong economy, together with the textile industry which has made Bangladesh the world’s second-largest garment exporter.

Gross domestic product grew by 8.2 percent last year and the hit from the coronavirus pandemic is expected to be less severe than in other developing economies.

Bangladesh’s GDP per capita is also expected to surpass that of its giant neighbour India this year, according to the International Monetary Fund.

But there is a dark side, with campaigners warning of the continued use of child workers and poor labour law enforcement.

Children in the shipyards are paid just a fraction of the wages that adults receive and also face the risk of injury and death, activists said.

Vaccine Priority To Seafarers Called For

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Chennai

Port Wings News Network uring this extraordinary global health crisis, the Union of Greek Shipowners (UGS) said seafarers remain faithful to their duty to supply the citizens of the world with essential goods, energy, food, medicines and medical equipment.

“They do so with professionalism, facing tremendous difficulties and personal sacrifices. It is therefore, absolutely necessary that their indispensable role and pressing needs are recognized, even with delay, and catered for by the international community,” said the Greek owners body.

UGS president, Theodore Veniamis said: “We are deeply indebted to all the key workers, the heroes of this uneven battle, the doctors, the nurses, the scientists and others, but also to our seafarers who work tirelessly day and night during the pandemic.

We are all witnessing with great admiration

the significant efforts and progress that have been made to end this nightmare, and we are looking more hopefully into the future after the news that vaccines for Covid -19 are now near.

“Taking the opportunity of this good news, I would like to once more voice the concern of the shipping industry about its people, the seafarers, and the dire need for governments around the world to view them as essential workers. “Ιt is, thus, of utmost importance that competent authorities give priority to seafarers in Covid -19 vaccination, together with other key workers, such as medical personnel.

This will ensure a Covid -19 - free environment for seafarers, who work under especially restrictive conditions, as well as the facilitation of crew changes and repatriations, which at the moment are seriously disrupted, and the protection of the uninterrupted international trade” concluded the UGS president.

Dec. 2nd - 8th Issue

Senegal Joins World Logistics Passport as Hub For Africa Chennai

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Port Wings News Network enegal is to boost its position as a trade hub for Africa by joining the World Logistics Passport, a major initiative by Dubai to link nations around the world and increase South-South trade.

The framework agreement was signed by His Excellency Amadou Hott, Minister of Economy, Planning and Cooperation, the Government of Senegal, and Sultan Ahmed Bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation. Thanks to the leadership of His Excellency President Macky Sall, Senegal is the second country to formally join the scheme, after Colombia.

The World Logistics Passport has been created to overcome trade impediments, such as logistics inefficiency, that currently limit the growth of trade between developing markets. South-South trade is already worth an estimated US$ 4.28 trillion annually, more than half of total developing countries exports in 2018, according to the WTO. But many countries in Asia, Latin America and Africa have much smaller market shares in key export products in each other’s markets compared to their shares in developed countries, indicating

the potential for substantial further growth.

Senegal exports nearly half its goods to other countries in Africa.

Membership of the World Logistics Passport will enable the country to access lesser tapped markets in Asia

and Latin America. Senegal will also be able to grow its economy as a re-export hub. For example, trading between Latin America and Asia via Senegal and Dubai, instead of traditional routes through Europe, will reduce costs and increase efficiency.

His Excellency Amadou Hott, Minister of Economy, Planning and Cooperation, the Government of Senegal, said: “On behalf of H.E President Macky Sall and the Government of Senegal, I would like to express my sincere thanks to His Excellency Sultan Ahmed bin Sulayem for making this agreement a reality. The agreement we are going to sign today is a significant milestone

in our long-lasting relationship. By joining the World Logistic Passport (WLP), Senegal will strengthen and boost its position as a trade hub for Africa. We hope that this new membership of the World Logistics Passport will enable our country to access lesser tapped markets in the world and grow its economy as a reexport hub.”

Traders and freight forwarders joining the World Logistics Passport benefit from a points loyalty scheme to increase their trading volumes through member hubs, including Senegal. The benefits include cost and time savings and faster customs clearances. Member countries also share expertise to smooth trade flows around the world.

Sultan Ahmed Bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation said: “DP World believes in the potential of Senegal for further economic growth. We have invested substantially helping to build Senegal’s infrastructure, and we are commited to help Dakar develop into a major logistics hub and gateway for Africa and the world.

Joining the World Logistics Passport will help Senegal achieve the ambitions of its people, leveraging the expertise we have developed making Dubai the centre of global trade.”

Investors Commit Billions At Lagos Free Zone In Nigeria New Delhi Port Wings News Network

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agos Free Zone (LFZ) (www.

LagosFreeZone.com), the first privately owned special economic zone in Nigeria with an integrated deep sea port, is home to several reputable global brands.

Located 65kms east of Lagos, in the immediate vicinity of upcoming Lekki Deep Sea Port, the Lagos Free Zone aims to enhance the ease of doing business in Nigeria.

Developed by the Singapore

based Tolaram Group, the LFZ, reflects their more than four decades of commitment to doing business in Nigeria, says Tejaswi Avasarala, General Manager, Strategic Marketing, Lagos Free Zone, who was speaking ahead of the 6th annual West Africa Property Investment (WAPI) Virtual Summit.

Regarded as the only premier regional real estate investment and development conference that provides access to more than 600 local and international decision makers, this year’s WAPI Virtual edition (www.WAPISummit.com) will provide attendees with unique content, networking opportunities

and a platform to showcase projects and services to an international audience.

With currently more than 15 operational entities, the 830-hectare (ha) LFZ site will eventually host more than 100 businesses and provide more than 50,000 residents with a place to live, work and play, and will offer real estate investors and developers with appealing prospects.

“We are convinced that Nigeria bears immense growth opportunity and will continue to be a formidable growth engine amongst the emerging market economies.

While there are some challenges that are typical of emerging markets, the government has taken steps in the right direction that have resulted in tangible improvement in the ease of doing business in the country over the past 5 years,” said Tejaswi.

In addition to the industrial manufacturing and port-based logistics cluster at LFZ, there are opportunities in the area of commercial developments such as multi-tiered housing, office spaces, business and leisure hotels as well as healthcare and educational projects which are extremely exciting and deliver on the LFZ’s objective of enhancing the ease of doing business in Nigeria.

This effort, as Tejaswi added,

begins by providing business and developers with access to unencroached, secured and developed land in the immediate vicinity of the deepest sea port in Nigeria, which is expected to start commercial operations by the end of 2022.

While the new deep sea port solves a lot of historical challenges of the country’s existing shallow and congested ports, investors at Lagos Free Zone would also enjoy access to reliable plug-and-play infrastructure such as access to power, gas, trunk infrastructure, ready-built facilities such as warehouses and standard design factories.

A perspective, which WAPI host Kfir Rusin shares. “The development of the Lagos Free Zone is an exciting development for the Nigerian economy and the industry as whole, as it will unlock new development opportunities for real estate investors and developers across the value chain. In what has been an extraordinary year, West Africa’s real estate leaders have demonstrated their resilience and their willingness to adapt and innovate to ensure returns in challenging conditions.

We believe that the future is bright and mega projects such as the LFZ, which is attracting world class tenants such as Kellogg (USA), Colgate (USA), Indofoods (Indonesia), Arla Foods (Denmark), BASF (Germany) and others is evidence that there are significant opportunities in the market, and we look forward to this week’s discussions.”

7

NEWS - BITS Fully Integrated Wärtsilä Hybrid Solution Selected For New Misje Rederi Bulk Carriers

The technology group Wärtsilä’s extensive experience in marine hybrid propulsion solutions will enable a greatly decreased emissions footprint for three newbuild eco-friendly 5,000 dwt bulk carriers, the company said in its release. The 90 metres long ships are being built at the Colombo Dockyard in Sri Lanka for Misje Eco Bulk, a unit of the Norway based Misje Rederi group. The fully integrated Wärtsilä Hybrid Solution will enable the vessels to sail in and out of port, and to perform cargo operations, completely emissions-free. The order with Wärtsilä was signed in October 2020 and includes an option for an additional three vessels.

The development of the efficient and sustainable propulsion solution was carried out from an early stage of the project in close cooperation between Wärtsilä and Misje Eco Bulk. This co-creation approach has enabled a tailored solution that fully meets the owner’s requirements regarding reduced operating costs, operational flexibility, and environmental sustainability. The vessels are designed to be converted to full zero emissions operation as the technology develops.

The Wärtsilä scope of supply includes a Wärtsilä 20 main engine, the Wärtsilä NOx Reducer (NOR), the power transmission system, the controllable pitch propeller (CPP), The Wärtsilä ProTouch bridge control system, the electrical and automation systems, the hybrid battery solutions, energy management system (EMS), transformers, motors and shaft line. The EMS functions as the ‘brain’ in the Wärtsilä Hybrid solution optimising the energy flows between the different power sources, storage and consumers to achieve the highest efficiency possible.

BW Lilac To Deliver Its First LNG Cargo To Klaipėda LNG Terminal

It is planned that the gas carrier BW Lilac will arrive at the liquefied natural gas (LNG) terminal operated by KN (AB Klaipėdos Nafta) on December 2nd and deliver LNG from the US port of Louisiana. This is the first visit of the gas carrier BW Lilac to Klaipeda port, KN says in a press release.

Standard 174 thousand cub. m, 294 m long and 46 m wide gas carrier BW Lilac was built in 2018 and is operating under the flag of Malta. She brings about 155 thousand cub. m of LNG to Klaipeda loaded at the Cameron LNG liquefaction plant in the Port of Louisiana, US. This liquefaction plant resumed its operations, which were temporarily suspended due to a hurricane.

This will be the 7th LNG cargo from the US in 2020 at Klaipeda LNG terminal and the 4th new year of natural gas (2021), which began on October 1 of this year.

Totally 9 LNG cargoes from the US have been delivered since the LNG terminal in Klaipėda started its operations in 2014.

Mindaugas Navikas, KN Chief Sales Officer, notes that the US has been exporting natural gas since 2016 and in 2019-2020 significantly increased exports to Europe. This was mainly due to an increase in liquefaction capacity and new emerging projects in the US that boosted demand and supply to Europe.

The World’s First LPG-Fuelled Vessel Has Set Sail

The world’s first LPG-fuelled vessel has set sail. Powered with Wärtsilä’s customised and reliable Fuel Supply System, the vessel represents a major breakthrough in the search for new ways to reduce marine emissions, the company said in its release.

BW LPG, the world’s largest owner and operator of very large liquified petroleum gas (LPG) carriers, is approaching a major milestone in the retrofit of a number of its very large gas carrier (VLGC) to run on LPG instead of Heavy Fuel Oil (HFO).

About 20 months ago, BW LPG signed a contract with Wärtsilä to install LPG Fuel Supply Systems (LFSS) on four of its vessels. As part of the contract, Wärtsilä was also asked to manage the integration of the new system into the vessels. This meant making necessary ship design modifications, integrating the LFSS control system with the ships’ integrated automation system (IAS), and acting as a coordinator between the yard, the engine manufacturer, and the owner.

Now, after the successful completion of full-scale testing and installation of the systems, the first BW vessel has successfully completed sea and gas trials and is on a historic transpacific voyage from China to Enterprise Port in Houston, Texas, on full LPG propulsion.

Serge Schwalenstocker, Project Manager, BW LPG, says the decision to make the switch from running vessels on Heavy Fuel Oil to LPG made sense from the economic, operational, and especially environmental perspective.

CUSTOMS EXCHANGE RATES Notification No.108/2020 (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 20th Nov. 2020

RATE (INR) Import Export 55.40 203.55 57.80 11.50 12.00 89.65 9.75 251.05 52.70 8.35 100.05 20.80 20.45 56.30 4.95 8.80 83.20 9.90 20.90 75.20 73.00 6.90

53.10 191.10 55.80 11.15 11.60 86.45 9.40 235.40 50.40 8.10 96.65 19.45 19.20 54.40 4.65 8.50 79.95 9.35 19.60 73.50 70.35 6.45

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

8

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

Maqta Gateway, TruKKer to Collaborate on Digital Truck Booking Services through “MARGO” Chennai

Port Wings News Network aqta Gateway, the digital arm of Abu Dhabi Ports, and TruKKer, the region’s first and largest digital truck booking marketplace, based in Abu Dhabi Global Market (ADGM), have signed an agreement to digitally transform truck logistics through Maqta Gateway’s digital logistics solution platform, MARGO. The Memorandum of Understanding (MoU) enables Maqta Gateway to fully integrate MARGO with TruKKer’s expansive fleet of onboarded truck drivers and trucks situated across the Middle East.

Dr Noura Al Dhaheri, Head of Digital Cluster, Abu Dhabi Ports and CEO of Maqta Gateway, said: “Abu Dhabi Ports’ partnership with the region’s leaders in logistics transport and trade innovation further accelerates our drive to transform Abu Dhabi’s broader trade and logistics landscape in line with our Government’s strategic vision.

“Our collaboration with TruKKer streamlines the complex needs of trade across the entire supply chain by leveraging MARGO and TruKKer’s best-in-class logistics solutions to better meet the demand of those who seek to trade goods and services with the UAE. “By facilitating increased trade through leading-edge integrated digital transformation, Maqta

M

Gateway is aligning its capabilities with the requirements and expectations of today’s customer allowing user journeys become better, faster, smoother, more secure, more predictable, and less expensive.”

Digitising Abu Dhabi’s land

freight process will improve operational efficiencies for all customers who trade with the emirate by enabling last-mile delivery to anywhere in the emirate or the wider region.

At the same time, Maqta Gateway will be able to provide a higher quality of service by ensuring all onboarded trucks and drivers are fully licensed and approved on a case-by-case basis in line with the highest international standards.

Gaurav Biswas, Founder and CEO, TruKKer, said: “By working closely with Abu Dhabi Ports’ Maqta Gateway, our freight customers and stakeholders will be able to readily access a wider variety of cargo movement solutions including line haul in a seamless manner and with competitive prices.”

“Over the last four years, TruKKer has fostered a reputation

on providing high-quality services, such as cross-border cargo transportation. Our collaborations will offer integrated services for efficient trade to all end markets for their distribution needs in the region.

TruKKer’s advanced data sciences and technology are creating an efficient freight ecosystem.”

Launched in 2019, MARGO is a digital marketplace for innovative logistics services including cargo clearance and delivery solutions, enabling consumers importing personal goods from anywhere around the world through Khalifa Port or Abu Dhabi International Airport to clear and have their goods delivered directly to their homes anywhere in the UAE. Last April, Maqta Gateway has expanded its digital logistics solution, MARGO, with the addition of a new service facilitating the booking of warehouses and storage spaces in Abu Dhabi.

The new offering presents customers with the unique opportunity to book standard warehouses or specialised temperature controlled-storage facilities to safely store their perishable goods including food Items and medical supplies for short and medium periods of time, through simplified paper-free booking processing and remotely-managed reservations. This new service leverages the simplicity, convenience and cost effectiveness of the existing MARGO platform.

Dec. 2nd - 8th Issue

Singapore Supports 11 Projects To Drive Maritime Innovation Chennai

T

Port Wings News Network he Maritime and Port Authority of Singapore (MPA) has awarded a total of S$1.625 million to eleven joint industry projects in the areas of maritime digitalisation and additive manufacturing for ship and marine parts.

“As the world’s busiest transhipment hub, Singapore must embrace technologies to ensure operations remain efficient,” Chee Hong Tat, Senior Minister of State for Transport and Foreign Affairs, said at the Smart Port Challenge 2020 Finals.

“We believe that solutions that work in our busy waters are likely to work in other parts of the world.

Hence, we proactively partner the industry and provide an environment that is needed to grow an innovative maritime ecosystem.”

As informed, five of these projects will address operational resilience and productivity needs.

Scheduled to be completed by the third quarter of 2021, these projects will help transform the way operations are carried out in a postCOVID new normal. They will also strengthen the resilience in the way these operations are carried out.

Another six projects will look at using additive manufacturing for Singapore to become a hub for just-in-time provision of marine parts. The consortiums behind these projects aim to deepen additive

manufacturing capabilities in Singapore and trial the use of at least 26 3D-printed parts onboard Singapore-registered vessels to test the viability of these parts.

These projects are expected to be completed by the first quarter of 2022 and bring about greater efficiency and cost savings for the industry, according to the MPA. MPA had launched joint calls for proposals in these two areas with the Singapore Shipping Association (SSA) and National Additive Manufacturing Innovation Cluster (NAMIC) earlier this year and received 40 proposals from the maritime industry.

The selected projects have been co-funded by MPA’s Maritime Innovation and Technology (MINT) Fund, which aims to support maritime companies to digitalise and trial technologies that can help to develop Singapore as a centre of excellence for maritime R&D and technology solutions.

“The varied JIP projects by SSA members’ reflect the increasing focus on digitalisation and sustainability to meet long-term business competitiveness,” Michael Phoon, SSA Executive Director, noted.

“This accelerated approach deepens the industry engagement, harnessing the collective resources and innovative capabilities to develop Singapore into a global AM hub for the maritime industry.”

Not A Very Merry Xmas For Importers As Ships Cut And Run From UK Ports

V

26

YEARS

Akil Enterprises (Exim Logistics Agency)

• Clearing & Forwarding Services • Sea, Air Freight Services • Break Bulk Cargo Handling • Container Movements • Supply Chain Managements • Warehousing Arrangements No.72/149, Linghi Chetty Street, 1st Floor, Mannady, Chennai - 600 001. India Ph: 0091-44-42166381 / 25260381 Email: aeclear@gmail.com

26

YEARS

Chennai

Port Wings News Network essel diversions eased congestion at the UK’s container port hubs this week, but much of the cargo discharged at Rotterdam, Antwerp and Zeebrugge will struggle to reach vital Christmas markets, according to The Loadstar.

Ocean carriers have skipped a number of UK calls in the past few weeks and been obliged to “cut and run” due to slow working on ships that did get alongside.

“I don’t know what’s worse,” said a forwarder at Felixstowe, “having our boxes stranded in Antwerp or having randomly split shipments that customers reject.

“It’s a total mess and I fully understand the angry reaction from importers.

Ser “It is so difficult for us to explain to a vice ent Truly Dthat iffer only four of ten containers customer came off a ship and we cannot confirm when the balance of the shipment will arrive in the UK,” he added.

Some containers have taken twice as long as they should have to arrive in northern Europe after being ‘rolled’ on a quay in China and/or transhipped at a wayport.

One business owner and Loadstar reader said last week the situation was “beyond a joke”, adding she was not optimistic of receiving her consignment of Christmas hampers in time for the festive season.

“Gated in at Qingdao on 14 September, discharged Antwerp on 14 November, already missed one feeder and no guarantee of space on the next feeder arriving Teesport on 29 November,” she said.

“The food to fill the hampers is bought and I thought these would make it – merry Christmas, customers!”

The Loadstar understands that the Ocean Alliance will bypass Felixstowe with at least one weekly loop in December, discharging

around 10,000 UK-destined containers in Rotterdam and Zeebrugge that will face a long wait for relay back to the UK, as there is also an acute shortage of open feeder tonnage on the charter market.

The port of Felixstowe’s operational update this week warns that the “current high volumes will last at least into December and possibly through to the new year”.

And rival container port hubs London Gateway and Southampton do not have capacity to take vessels diverted from Felixstowe after also succumbing to quay and landside congestion in recent weeks. On

Friday, Hapag-Lloyd advised customers it was continuing to experience port congestion at London Gateway.

“We would like to inform you that based on the latest developments we do not see much improvement in the situation at London Gateway until the end of December,” said an advisory from the carrier, adding that “actions and efforts are under way to manage the situation as best as possible”.

The DP World-owned London Gateway facility, which said last week it was hoping to return to “business as usual” following the impact of the import volume spike, declined to comment. However, a source told The Loadstar it was “a localised issue regarding two vessels” and “totally unrelated to the wider context of operational effectiveness”.

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.