Port Wings Maritime Exim Weekly 23 Dec 2020 E-paper

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, December 23, 2020 8 Pages

Will The Government’s Move To Regulate Shipping Freight Work?

Mumbai

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Port Wings News Network y proposing that service providers specify an allinclusive freight rate which removes the possibility of levying surcharges and enhances transparency, the Centre has backed a long-standing demand from exporters and importers to regulate shipping freight, particularly those collected by container carriers, reports BusinessLine.

Exporters and importers have always been at loggerheads with the carriers and freight forwarders for levying a slew of surcharges on top of the ocean freight, which they say lacks transparency and often adds up to more than the quoted sea freight rate, effectively translating into hidden rate increases.

“A consolidated freight is a very good idea but with this I’m not sure whether we will be able to get a competitive freight rate,” said a Delhi-based agri-produce exporter.

The shipping lines, he feared, would start quoting higher rates — instead of, say, charging $1,000 they would add $300 in extra charges for the land-side costs or in surcharges and levy an all-inclusive freight of

$1,300 by building the extra charges into the freight.

“With this, I don’t think there will be any kind of advantage in terms of reduction in logistics costs,” he held. “Some of the exporters don’t want to put the consolidated rate on the bill of lading (BL), the reason

being that they want to play around with the freight or for some other reasons they don’t want to disclose the actual price of the product/ goods,” the exporter said.

One way to resolve this issue, he suggested, would be File Photo by specifying in the BL that the importer would not have to pay anything extra to the shipping line at the destination or that he would have to pay certain specified charges. “But the consolidated freight will not be required,” he said.

Indian exporters and importers would be at a “competitive disadvantage” vis-àvis other nations if their individual confidential contracts — a commercial agreement between a shipping line and its customer which is governed by market forces — were Contd. on page -2

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CONCOR Land Lease to be Longer, Rentals to Halve Chennai

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Port Wings News Network o facilitate the privatisation of state-run Container Corporation (CONCOR), the government is planning to halve the lease rates payable by the company for industrial use of the railways’ surplus land to 3%, according to a news report in Financial Express.

Also, the land lease period will be extended to 35 years from 5 years now, with a view to giving additional comfort to potential buyers. The Cabinet would consider both the proposals soon, according to official sources. The move could encourage commercial use of these land parcels along rail tracks.

The expression of interest for the stake sale will likely be issued soon after Cabinet clearance to the railways’ revised land licensing policy. However, the sale process, which was planned to be completed within FY21, could spill over to next financial year due to paucity of time.

It was only in April this year that the railways notified a land licensing fee (LLF) regime for industrial use of its

FumiGATiON SeRViCeS pVT LTD.,

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land, and extended it to its very own CONCOR. Until then, CONCOR had been paying land lease rentals to the transporter on a per-container (20-feet equivalent unit container) basis, which entailed much lower outgo. The LLF being charged by the transporter now is 6% of the land value in the first year of licence; the rate will increase at the rate of 7% annually to factor in inflation.

The new regime has proven to be expensive for CONCOR – while it paid `120 crore as land rentals to the railways in FY20, `234 crore was paid in just the first two quarters of FY21.

According to official sources, the railway ministry has now come on Contd. on page -2

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Inside Maersk Joins Hands With Novo... Pg-2 Pre-Budget Consultations: FIEO... Pg-3 Nitin Gadkari Inaugurates, Lays... Pg-4 China Shipping Logjam Chokes... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7 Britain Plans To Rival Singapore... Pg-7 Equinor Energy, Mitsubishi Heavy... Pg-8

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Dec. 23rd - 29th Issue

Will The Government’s Move To...

Wednesday, December 23, 2020

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Wing 7 Feather 19

One Nation, One Port!

ith a view to developing ports in the country, the shipping ministry has circulated a draft Indian Ports Bill for public consultation which will replace the Indian Ports Act 1908.

The Centre seems to drifting towards a ‘One Nation, One Port’ idea with the draft Bill which once becomes an Act will give the Centre sweeping powers to “regulate and control” ports which are in the concurrent list of the Constitution. The proposed Bill seems to dilute the coastal states’ power over the major infrastructure sector, feel the coastal states, which have been aggressively pursuing development of ports under their jurisdiction. Central to this idea is the formation of a Maritime Port Regulator Authority comprising a chairperson and two members, all full-time, nominated by the Centre and two part-time members nominated by coastal states.

It will be tasked with advising the Centre and State governments on drafting and implementing a National Port Policy and Plan for sustainable port development, formulating short-term and perspective plans for the ports sector, regulate the functioning and practices of scheduled ports and co-ordinate the activities of planning agencies for optimal utilisation of the coastline, according to the Bill drafted by the Centre.

It will make recommendations, either suo moto or on a request, on the necessity, feasibility and viability of new and/or existing ports, suggest steps to promote investment, facilitate competition, promote efficiency in port operations and facilitate growth of the ports sector. It can review the draft of concession agreements and advise the State Maritime Boards on whether the terms are incompatible with the promotion of competition, may amount to an anti-competitive practice or may result in an abuse of dominant position. It will be empowered to register scheduled ports and renew, withdraw, suspend or cancel such registrations by maintaining a Maritime Ports Register.

The Authority will specify the model terms and conditions for different types of contracts related to operations and services of scheduled ports, including those contracted out to third parties. It can pass order to bundle any number of ports (excluding major ports) in the State into a single port and monitor the performance of scheduled ports and give directions. It can conduct periodical studies and performance audits of the scheduled ports.

The Authority can make regulations or guidelines or directions which shall be binding on the ports, its operators, service providers and State Maritime Boards.

Based on the recommendations of the Authority, the Government has the power to declare a port (called scheduled port) and define the port limits and extend or withdraw the law to/from any port. The planned law also confers powers on the Centre to alter the port limits of a scheduled port by uniting such port with any other port or any part of any other port.

The Centre will also have the powers to declare or describe the precise distance between two scheduled ports or the precise extent of such limits. The Centre will consult the Maritime Port Regulatory Authority before notifying a new port or altering the port limits of scheduled ports. While giving its recommendation, the Authority shall consider the minimum distance from existing ports, investment made in existing ports and such other factors. The Authority will seek comments from the coastal state governments in this task and its recommendations will be binding on the Centre.

The new act will also allow for deletion of scheduled ports for violating the law or for lack of feasibility. Ministry of Ports, Shipping and Waterways has circulated draft of Indian Ports Bill 2020 for public consultation which will repeal and replace the Indian Ports Act, 1908 (Act No. 15 of 1908).

The draft Indian Ports Bill, 2020, seeks to, inter alia, enable the structured growth and sustainable development of ports to attract investments in the Port sector for optimum utilisation of the Indian Coastline by effective administration and management of ports. The proposed Bill will provide measures to facilitate conservation of ports, taking into account the prevalent situation with respect to the high number of nonoperational ports. It shall further ensure greater investment in the Indian maritime and ports sector through the creation of improved, comprehensive regulatory frameworks for the creation of new ports and management of existing ports.

The up-to-date provisions of the proposed Bill would ensure safety, security, pollution control, performance standards and sustainability of Ports. The Bill ensures thatSample all up-to-date conventions and protocol to which India is a party, are also suitablyTEXT incorporated. This will promote marine safety and security in the true sense. The Bill will fill up the gaps or achieving scientific development of Ports and Port Network.

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The Bill seeks to provide increased opportunities for public and private investments in the Indian maritime and ports sector by way of removing barriers to entry, simplifying processes and establishment of agencies and bodies to plan and enable growth of the ports sector. Enhancing “Ease of Doing Business,’ it will provide greater impetus to a self-reliant domestic investment climate in the maritime sector, towards Atamanirbhar Bharat initiatives of the Government.

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Continued from page -1 made public, said Sunil Vaswani, Executive Director, Container Shipping Lines Association (India) or CSLA, an industry lobby group.

“Disclosing the all-inclusive freight on the BL could put many commodity traders, exporters and importers in a difficult situation where surcharges, which have not been clearly defined, are disclosed on the BL, if the shippers and consignees agree,” the CSLA said to back its argument for scrapping the plan.

Carriers said not all incidental charges were known at the time of release of the BL but were only applicable subject to occurrences

such as congestion, detention and repair of containers.

“For small and medium enterprises (accounting for 94 per cent of exporters and importers), putting the rate on the BL is not going to solve the problem of price transparency,” said Purnendu Shekhar, founder and CEO, Cogoport, which helps plan, book and manage shipments.

Incidental charges could be levied regardless, he said.

He suggested that additional and conditional charges be defined very clearly before the start of a shipment to avoid any “surprises” later. “The shipping and logistics industries have

in the past been very ‘innovative’ in coming out with charges without public discourse,” he said.

The solution to this, he added, was to break the total freight into three items: Origin charges, freight charges and destination charges “along with a clear list of possible additional charges”.

“The government should regulate these pricing formats, and not the prices themselves, so that the health of the industry is maintained.

This allows the free market to exist, but also protects SMEs from industry power plays and lack of transparency,” Shekhar added.

CONCOR Land Lease to be Longer...

Continued from page -1 board in an inter-ministerial panel to lower LLF under which the firstyear rate would not be more than 3% and annual inflation rate would be a more realistic 5% or the average annual retail inflation. Earlier, the railway ministry was reluctant to reduce LLF substantially from 6%.

CONCOR has as many as 65 inland container depots and some 26 of these are situated on the railway land. Even before the latest rate revisions, the cost of using railways land was higher for the company, than what it had to fork out to farmers and other land sellers. The company has been trying to reduce the share of railway land for its container depots.

In March this year, the CONCOR stock plummeted 52-week low of Rs 263.2, down 57% from the 52-week high of Rs 617.4. Thanks to the buzz that LLF may be reduced, the stock

has recovered some ground recently.

At last Friday’s closing price of Rs 405.25, the Centre’s 30.8% stake was worth Rs 7,605 crore on the BSE; this was still 30.8% lower than Rs 11,000 crore on November 20, 2019, when the Cabinet gave its nod for the stake sale.

Railways’ LLF policy was originally applicable to land let out for commercial purposes such as opening retail outlets such as shops, bookshops, kiosks, etc, but it was extended to container business (industrial use) this year.

Railways had demanded Rs 1,276 crore annually for 13 terminals (total to be higher when accounted for rest 13 terminals), based on 6% of the value of land. CONCOR, which had estimated Rs 450 crore as LLF for FY21, was contesting the excess demand. Even 3% LLF would mean, CONCOR would fork out at least double of what it had

estimated earlier for FY21.

The earlier mode of LLF payment provided certain advantage to the company compared with other private container terminal operators. Earlier, the method of payment was based on CONCOR’s volumes (Rs 1,175/TeU).

In its annual report for FY20, CONCOR said: “The recent change in the Railways method for charging LLF at the rate of 6% of value of land, will have significant impact on the company’s financials and the same has been suitably represented to the railways. Taking into consideration the business viability and to mitigate the impact of increased LLF on railway land, the company has surrendered its fifteen terminals built on railway land.”

Post-2005, CONCOR has not picked up any land from railways as it bought land along rail tracks from farmers at cheaper rates.

More Member-States Join IMO Call To Designate Seafarers As Key Workers Chennai

Port Wings News Network orty-five IMO Member States and one Associate Member* have now designated seafarers as key workers, which is a key step in resolving the ongoing crew change crisis. In a circular letter (4204/ add.35) issued on 14 December, IMO Secretary-General Kitack Lim calls on Member States that have not yet done so to take action as a matter of urgency, according to IMO source.

Key worker designation for seafarers is essential to exempt these professionals from specific COVID-related travel restrictions, allowing them to travel between

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their country of residence and ships, and to be repatriated at the end of their contracts. This is critical to resolve the crew change crisis, which currently leaves hundreds of thousands of seafarers trapped at sea or stuck at home and unable to join ships. It could even play a key role in granting them priority access to safe vaccination.

The plight of stranded seafarers is highlighted in an IMO video featuring seafarers who describe the challenges they have faced due to the pandemic, and the impacts of the ongoing crew change crisis on their physical and mental health.

Resolutions urging Governments to designate seafarers as key workers have

been adopted by IMO, the United Nations General Assembly and the International Labour Organization (ILO). *Member States: Azerbaijan, Bahamas, Bangladesh, Barbados, Belgium, Brazil, Canada, Chile, Cyprus, Denmark, France, Gabon, Georgia, Germany, Ghana, Greece, Indonesia, Iran (Islamic Republic of), Jamaica, Japan, Kenya, Kiribati, Liberia, Marshall Islands, Moldova, Montenegro, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Panama, Philippines, Republic of Korea, Romania, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Thailand, United Arab Emirates, United Kingdom, United States, Yemen.

Maersk Joins Hands With Novo Nordisk On Global Cold Chain Logistics Chennai

Port Wings News Network .P. Moller - Maersk has announced the signing of a logistics agreement with Novo Nordisk from 2021. The three-year agreement on cold chain logistics covers transportation including ocean services and inland logistics.

“We are proud to be chosen as one of Novo Nordisk´s main logistic companies. Transporting pharmaceuticals on a global level is a demanding task with various complexities that require flexible and resilient supply

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chains as well as digital and eco-friendly solutions.

This achievement showcases the rapid transformation of A.P. Moller - Maersk as a modern end-toend logistics company with fully controlled assets,” said Vincent Clerc, Executive Vice President and CEO Ocean and Logistics.

A.P. Moller - Maersk.

One of the largest pharmaceutical companies in the world, Novo Nordisk has chosen Maersk´s ECO Delivery to reduce the carbon footprint in transportation. The initiative uses sustainable biofuel to power

selected Maersk-vessels and helps Novo Nordisk to make progress towards its ambitious sustainability goals.

“Our ambition of achieving zero environmental impact is a cornerstone of our aspiration to be a truly sustainable business. We consider A.P. Moller – Maersk to be the right global distribution partner to secure the steady, environmentally friendly delivery of our high-value shipments and we look forward to the collaboration,” said Rune Sylow, Corporate Vice President, Strategic Sourcing at Novo Nordisk.

The global agreement will enter effect as of 1st April 2021.

Dec. 23rd - 29th Issue

Pre-Budget Consultations: FIEO Recommends Slew Of Measures To Boost Export Industry New Delhi Port Wings News Network n a pre-budget consultation, the Federation of Indian Export Organization (FIEO) on 19 December 2020, in a view to boost the Indian export industry, suggested a slew of measures to the Nirmala Sitharaman led Finance Ministry which included bringing double tax deduction scheme and setting up of an export development fund.

FIEO President Sharad Kumar Saraf, on the pre-budget consultation meeting with FM, suggested introducing a “Double Tax Deduction Scheme” which can allow exporters to deduct against their taxable income.

Below is the full representation of FIEO: 1.Trade: Overseas marketing is a big challenge for exporters as it entails a very high cost. (a) We need to bring “Double Tax Deduction Scheme for Internationalization s” to allow exporters s to deduct against their taxable income, twice the qualifying expenses incurred for approved overseas activities including market preparation, market exploration, market promotion and market presence. A ceiling of USD 5,00,000 may be put under the Scheme so that the investment and tax deduction are limited. (b) The marketing support under Market Access Initiative of the Ministry of Commerce is very small. We should create an Export Development Fund with a corpus of 0.5% of country’s exports for helping the MSME. Income Tax: 2. Tax Deductions on Product Development &R&D: Section 35(2AB) of Income Tax Act may be relooked into to so as to provide tax deduction not only on R&D but also on product development as product development is key in exports and should be encouraged. The tax deduction on R&D expenditure which has come down from 200% to 100% now may be restored to its original position as R&D investment in India is extremely low ( <1 % of GDP) and most of the R&D is being done at the behest of the Government or in sectors like pharma where it is Hobson’s choice.

3. Income Tax Rate Reduction for Non-Corporates: The industry has welcomed reduction in corporate tax to 15% for new investors and 25% to existing investors. However, this has created wide spread disparity with non-corporate MSME who are subject to higher taxation of 35%. To encourage MSME units to further expand and create new opportunities, proprietorship firms/ partnership firms and LLPs both new and old may also be given the benefit of reduced income tax so as to bring them at par with corporate bodies.

4. Removal of anomaly in respect of Leave Encashment for Non-Government Employees Section 10 (10AA (i) of the Income Tax Act provides complete exemption from Income Tax to Central Government or State Government employees on any amount received as cash equivalent

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of leave salary in respect of earned leave at his credit at the time of retirement/superannuation.

However, Section 10 (10AA (ii) provides exemption to nonGovernment employees for cash equivalent of leave salary only upto a maximum of Rs.3.00 lacs.

The said limit was fixed in 1998 before 20 years. There is no basis for discrimination between nonGovernment employees and Government employees particularly as in many cases non-Government employees receive less amount as cash equivalent of leave salary as compared to Government employees.

For uniformity and simplicity, any cash equivalent of leave salary s h o u l d be fully exempted f r o m income tax without any limit as has been the case for Central Mr Sharad Kumar Saraf FIEO President Government/State Government employees.

5. Industrial Production: One of the reasons for fluctuations in India’s export performance has been the lack of consistency in industrial or manufacturing growth. We see some growth in manufacturing for a month or so and then we see a dip. Manufacturing needs to be made competitive by addressing the issue of cost of capital, land, labour, logistics cost, etc.

Instead of merging few small units into large-one, one can explore the possibility of value chain production wherein some of the units make parts and components, some make the final product and some make accessories for the same product. Such manufacturing should be preferred in a close geographical area so that the supply chain is integrated with minimal logistics cost.

Other alternative could be to make or upgrade clusters so as to provide common facilities like tool rooms, testing facility, certification facility all under one roof for units producing same or similar goods so that the operational costs are minimised.

6. Provide Deemed Export Status to Indian industry under the Global bidding of Procurement Indian companies winning contracts under the Global tender may be accorded deemed exports status, since they substitute direct import which would have taken place if the contract had been won by a foreign supplier. Deemed export status would enhance the competitiveness of Indian industry vis-à-vis foreign suppliers as the former would enjoy certain taxrelated benefits Export Promotion: 7. Settlement Scheme in Line to Excise and Service Tax for Disputes Related to Customs and DGFT Issues Government may consider to introduce a Scheme in line with

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to resolve all disputes relating to Customs and DGFT. Similar scheme was rolled out for the Income Tax also.

There are large number of cases of exporters pending settlement with Customs and DGFT pertaining to classification disputes, Duty, Drawback, Export Obligation under Advance/EPCG/EOUs, etc. The waiver of interest & penalty and may be the duty liability will help the industries which are passing through rough patch due to lack of demand both domestically and globally. Introducing such a scheme for providing one-time window to eligible persons to avail amnesty or relief in accordance with the provisions will help large number of exporters to regularise their cases.

8. Services: (a) Health sector is one of the fastest growing services sector but still huge mismatch exists between the demand and supply. We require close to 3 million beds to reach the target of 3 beds per 1000 people by 2025. We require about 1.5 million doctors and 2.5 million nurses to meet the growing demand of the sector. The required capacity building is the need of the hour and so is augmenting investment into the sector. Foreign patients from Africa and Middle-East are making beeline at Indian hospitals which can be multiplied with good hospitals in the country. (b) India’s outward remittance on account of transport services is increasing year after year.

We remitted USD 57 billion, 65 billion and 67 billion in 2017, 2018 and 2019 respectively. When we are looking at increasing our international trade to USD 2 trillion in an economy of USD 5 trillion, the outgo on transport services will increase to USD 150-200 billion.

While we need to strengthen Shipping Corporation of India, new large shipping companies may also be set up in India to exploit the ready market available to them. Some fiscal support may be provided to attract private players in the field. (c) GST Refund to Foreign Tourists: Refund of GST at the airport, as envisaged under IGST Act, has not yet been operationalised.

Such an initiative will not only give fillip to tourism but will also help in exports of handicrafts, non-precious jewellery, carpets, Ayush and herbal products, beauty products etc Banking Issues: 9. ECGC Coverage to the Banks for export finance The rising NPAs have caused decline in export credit by the Banks to the exporters resulting liquidity problem in export efforts.

To provide necessary comfort to Bankers, the Government may roll out the NIRVIK Scheme which was announced in September 2019 but remain un-8. operational so far.

Miscellaneous: 10. Higher Budget Allocation to Department of Commerce: The share of exports in country’s GDP has declined in last few years.

If India’s GDP has to grow at 8% plus, Exports should grow at 15% plus. DOC should be given enough budget allocation to support exports including agri exports which has come into focus only recently.

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Port Congestion Increases Logistics Cost Exponentially, Exim Trade Fall Prey Chennai

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Port Wings News Network ften sea port congestion occurs due to various reasons like failure of equipment, labour unrest, natural calamities etc., In the recent days due to cyclone and incessant rain in Tamil Nadu, the port operations were suspended for some days, vessels not allowed to berth and those vessels already berthed were anchored, the movement of trucks with containers stopped in and out of port.

Consequently, the import containers started piling up at port blocking export container trucks to enter and offload at port terminals.

Due to this chaotic situation inside Port/ Terminals, the EXIM trade is affected on taking for delivery import cargo and loading export cargo. The port is unable to bring normalcy even after a month.

The trade is of the opinion whether this congestion is artificially created to boost the revenue of various service providers like port, terminals, shipping liners, CFS etc,. as the issue is still continuing.

One of the importers from Madurai said he was not aware that additional charges are payable to port/ terminals not due to his fault, but failure in managing situation like this by port.

Further, the liners are not ready to waive the detention and not ready to extend free days as the whole free days from detention charges expired when the containers are lying inside the port during congestion period.

Also, they calculate detention from last slab and one has to pay $75-100 per day in addition to port/terminals charges payable for over and above free days amounts to USD6-45 per day. Adding fuel to fire, the Delivery Order charges collected by liners are on the higher side collecting under different heads and getting delivery order from liner needs more documents to upload online and it is time consuming.

Further, the trade face another issue, getting truck from market for movement of containers becomes a nightmare and has to pay premium for engaging vehicles.

The Union Government’s aim is to cut the logistics cost from present 12-15% to 6-8% as maintained by other developing countries, but due to lack of planning and operational delays by service providers like Ports, Liner , CFS etc., the EXIM trade is affected badly resulting in increase in logistics cost of operation ultimately affecting end user and public.

(Special Report by K.S.Jaganathan)

Smart Pre-Paid Energy Meters Go Live at Paradip Port, First In Odisha Port Wings News Network n a first in Odisha, Paradip Port Trust brings in pre-paid smart energy meters which have gone live from 21 December 2020.

As a part of the Green Port initiatives, the Chairman, PPT Sri

PPT along with advantages like monitoring of real time energy consumption data to an hourly resolution, recharge the smart meters by payment through a mobile phone, see the payment history, etc. through a 24 X 7 Consumer Mobile App. The consumers are thus facilitated to analyse their

Rinkesh Roy inaugurated the smart meter project with the first recharge of the 3-phase smart meter installed at the BPCL outlet in the Port City, in presence of the Dy. Chairman, PPT Sri A. K. Bose, the Chief Mechanical Engr., PPT Sri Saroj K. Das and the ex-Trustee of PPT Sri Antaryami Pattnaik.

The smart meter project has been implemented at Paradip Port Trust

by M/s. Gram Power. The smart meters offer complete transparency to the electricity consumers of

consumption and accordingly help regulate the electricity consumption by them by reducing the losses. At the same time, the smart meters offer many advantages to PPT like reduction in meter reading, billing and bill distribution cost, real time meter parameter reading from a remote central location thereby helping analysis of a consumer’s electricity pattern, providing insight for reduction of losses, regulate the power supply demand better basing on the consumption pattern of the electricity consumers.

Paradip

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Dec. 23rd - 29th Issue

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Nitin Gadkari Inaugurates, Lays Foundation Stone of NH Projects Worth Rs 11,000 crore in Karnataka Chennai

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Port Wings News Network nion Minister for Road Transport and Highways Shri Nitin Gadkari inaugurated and laid foundation of 33 NH projects in Karnataka through virtual mode on 19 December 2020.

These projects include 1197 kms long roads worth Rs 10,904 crore.

The event was presided over by Chief Minister Shri B S Yeddiyurappa and was attended by former Prime Minister Shri H D Devegowda, Union Ministers Shri Prahlad Joshi, Shri Sadanand Gowda, Gen Dr V K Singh, ministers from the State and senior officers.

Speaking on the occasion, Shri Gadkari informed that over 900 km NH length has been added in Karnataka during last six years, and it now stands at 7652 kms. He said, a total of 71 works are in progress in length of 2,384 kms at a cost of Rs. 37,311 Crore. Out of these, more than 70% progress has been achieved in 26 works amounting to Rs 12,286 Crore covering a length of 1,127 Km. He said, upto 70% progress has been achieved in 45 works amounting to Rs 25,025 Crore covering a length of 1257 Km. The Minister added that for providing smooth connectivity to the ports for the benefit of trade and economy, 4-laning of the entire coastal road from Goa Border to Kerala Border connecting port city of Belekeri, Karwar and Mangalore covering a length of 278 Km have been taken up at a cost of Rs 3443 crore and the work has been substantially completed. Further, in view of the safety of road users, 3 works for improving the safety by providing protective measures on Hill slopes in Shiradi Ghat on NH75, Charmadi Ghat on NH-73 and Sampaje Ghat on NH-275 have been sanctioned amounting to Rs.115

crore.

Shri Gadkari further informed that the Union Government shall invest approximately an amount of Rs 1,16,144 crore in Karnataka State in the coming years. He said, 11 road projects of 275 kms worth Rs 5083 crore have been awarded in the State during the financial years

2019-21.

The Minister informed that CRF works worth Rs 8,330 crore have been sanctioned till now for the State. Annual Accrual during this year is Rs 435 crore, while total release during this year is Rs 217 Crore. Shri Gadkari declared release of this year’s remaining Rs 218 Crore under CRF. Shri Gadkari called upon the State to take up production of Ethanol in a big way, as it is one of the largest producer of sugarcane in the country.

He said, the country is already over-producing sugar and rice, and sufficient stock are available with the government. The surplus may be converted to Ethanol, which can be used as an alternative fuel for vehicles. He said, this will not only improve farmers’ income, but will also be an indigenous source of fuels for the country.

Former Prime Minister Shri H D Devegowda praised the steps taken by the government in developing the Road network in the State.

He said, New technology has entirely changed the developmental

scenario. He said, what we see today, is unbelievable.

Chief Minister Shri Yediyurappa assured to take forward all the suggestions given by the Union Minister. He said, his government is committed to development of the State, and uplifting of the life style of its people. He said, he is working in co-operation with the Centre to achieve his government’s targets.

Union Minister Shri Sadanand Gowda enumerated the list of development works taken up by the Centre in Karnataka during last 6 years. He praised Shri Gadkari for planning the coastal road network from Goa to Thiruvanantpuram.

Union Minister Shri Prahlad Joshi also appreciated the development efforts in NH sector, and said, road connectivity is now a basic necessity like food, clothing and shelter.

Shri Mallikarjun Kharge, MP and former leader of Congress party in LS, too praised the co-operative nature of Shri Nitin Gadkari, calling him pro-development. He requested the Union Minister to release CRF amounts to all projects in the State equally.

MoS-RTH Gen Dr V K Singh said, the projects being inaugurated today will provide better connectivity between major cities in Karnataka region. Inter state connectivity will be faster and hassle free. These will have transformational impact on agriculture, fisheries and health sectors. He said, theses project aim to improve economic corridors, costal and remote areas with rapid growth and safe movement of passengers and cargo. Further, the development of NH 66 will give a boost to economic relation of the State and link to provide connectivity to ports.

‘We’re trying to attract big container ships’ Cochin

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Port Wings News Network he resurgence of Willingdon Island, once a thriving business hub of all portrelated activities, has been on top of the agenda for the Cochin Port Trust ever since the migration of container terminal operations to the Vallarpadam Island in 2011, reports BusinessLine.

But the establishment of the liquefied natural gas (LNG) Terminal in the nearby Puthuvypeen Island in Kerala seems to have sharpened this focus, particularly with the completion of the KochiMangaluru pipeline of GAIL. The port will also be focusing on Willingdon Island to equip it for cruise tourism and setting up of captive berths (operated by companies for their in-house needs) as well as leasing out some berths based on the landlord development model with specific customers in mind, said M Beena, Chairperson, Cochin Port Trust.

The port management is pinning its hopes on Puthuvypeen to create around it a new area of development for LNG-based ancillary units by leasing out land to industries to

boost revenues, she added.

At the same time, the port trust is in the process of redesigning Willingdon Island by transforming it into a global vista for rest, rejuvenation and recreation by en-cashing Kerala’s tourism potential. A proposal to prepare a master plan to transform the island into a sustainable global tourism destination is on the table, Beena told BusinessLine.

With the GAIL pipeline, the port would see a rise in the volume of gas consumed by industries in the region. This would facilitate the terminal to double its capacity, which, in turn, would bring more earnings to the port as well as the State, she added.

The port plans to lease 1.20 hectares in the SEZ for 30 years to investors for setting up, near the LNG terminal, a cryogenic warehouse which can use the cold energy released from the terminal during the re-gasification process.

The cryogenic warehouse can be used for storage — both for domestic consumption and export — of fruits and vegetables, meat and marine products, pharmaceutical goods and so on.

The port trust is looking to set up logistics parks, port-based industrial parks and warehouses on 100 acres at the south end of Willingdon Island along NH 966 B. The facility can act as a hub for freight movement, enabling aggregation and distribution of goods.

With major container lines resorting to cooperation for covering global trade routes through the sharing of ships of varied sizes and draft requirements, the draft available at the International Container Transhipment Terminal (ICTT) at the port might not cater to all the ships of a particular service, which was a limitation, Beena pointed out.

“There is a good ecosystem in Colombo and they are more business-friendly. We have to address several issues before moving forward for trans-shipment of containers in a big way,” she said.

The port recently attracted big vessels of container shipping lines MSC and Maersk Line on an ad hoc basis and has been trying to make it a regular service. Discussions are also in progress with other lines to call at Cochin, Beena added. “We are trying to attract big container ships to Cochin on regular services,” she said.

November Exports Shows Negative Growth Due To Supply Side Disruptions: FIEO New Delhi Port Wings News Network esponding to November 2020 export figures, FIEO President, Mr Sharad Kumar Saraf said that the monthly exports have shown a single-digit negative growth of 8.74 percent with USD 23.52 billion due to supply side disruptions including restricted container movement and declining petroleum exports due to its crashing prices. Besides, farmers agitation in some of the hinterland states have also affected exports during the month. Exports have been seeing signs of revival as order booking position has continuously improved and more new orders are in the offing. Mr Sharad Kumar Saraf reiterated that the forecast of the arrival of the Covid-19 Pandemic vaccine along with gradual lifting of lockdown across the country and the globe has also helped in boosting the business sentiments for the sector as a whole, which can be expected to be seen from the positive figures of the upcoming months. Going by this trend, we expect to end the financial 2020-21 with an overall merchandise exports of about USD 290 billion added FIEO President.

Exporters have continuously been receiving a lot of enquiries and orders further adding to the positive sentiments with signals of further resilience in the global supply chain.

However, the litmus test for the traditional sectors of our exports would be the Christmas and New year sale. If that goes well, the inventory will be liquidated, adding to further demand, observed Mr Saraf.

FIEO chief said that the exports of other cereals along with oil meals, iron-ore, rice, ceramic products and glassware, handicrafts excluding hand-made carpet, cereal preparations and miscellaneous processed item, carpet, jute mfg. including

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floor covering, spices, drugs and pharmaceuticals, tobacco, cotton yarn/ fabrics/made-ups, handloom products etc., fruits and vegetables, tea, gems and jewellery, mica, coal and other ores, minerals including process, meat, dairy and poultry products and electronic goods showed either a very high or impressive growth or were in positive territory showing signs of further revival.

Mr Saraf also said that reduction in exports of major products including petroleum products, leather & leather manufacturers, cashew, plastic & linoleum, marine products, oil seeds, man-made yarn/fabrics/made-ups etc., engineering goods, organic and inorganic chemicals, coffee and RMG of all textiles which are major constituents in India’s export basket and related to labour-intensive sector of exports have also been of key concern during the month.

However, reduction in imports during November 2020 by 13.32 percent to USD 33.39 billion compared to the same period during the previous fiscal led to a trade deficit of just USD 9.87 billion with a substantial decline of 22.57 percent during the month.

FIEO President urged the government to address some of the key issues including adequate availability of containers, softening of freight charges, the release of the required MEIS benefits, resolving risky exporters issues, immediate introduction of RoDTEP across all sectors, introduction of NIRVIK Scheme, long pending demand for the creation of a fund for marketing of Brand India products and various other infrastructure bottlenecks with regard to customs and port clearances, which will further help in reviving the exports during the left out 4 months of the fiscal showing impressive performance for the sector as a whole.

Soon, Ports Sector To Have CCI-Like Body To Settle Disputes Mumbai Port Wings News Network he ports sector will have an exclusive Competition Commission-like set-up to adjudicate on disputes and complaints, according to the Indian Ports Bill drafted by the Ministry of Ports, Shipping and Waterways, according to a BusinessLine report.

Disputes will be decided by a Bench comprising the Member (Legal) of the Maritime Port Regulatory Authority — a central regulatory agency — and one or more members nominated by its Chairperson or the Chairperson himself. If the members of the Bench differ on any point or points, those will be referred to a full-time member of the Authority other than a member of the Bench, for a decision.

The Bench will exercise jurisdiction, powers and authority similar to a civil court. It will adjudicate complaints raised by an aggrieved person or reference made by the Central or State Government or State Maritime Board, concerning alleged anti-competitive practices or abuse of a dominant position at scheduled ports.

Adjudication on port charges It will also adjudicate complaints related to port charges levied by scheduled ports, and whether those charges are in violation of the Act or amount to or evidence an anticompetitive practice or an abuse of a dominant position.

Complaints involving a shipping

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line and a terminal operator, between two port service providers or between two terminal operators in the same port or in a nearby port, which is causing or likely to cause an appreciable adverse effect on competition within the relevant market in India will be adjudicated by the Bench. It will also address disputes of anti-competitive practices or an abuse of a dominant position at scheduled ports and pass an order prior to or upon merger.

“The Bench shall determine matters in accordance with the provisions contained in the Competition Act and in adjudication of these matters shall have the same powers vested in the Competition Commission of India under the Competition Act,” according to the draft Bill.

Relief & compensation The Bench can pass an order to provide relief including refund, restitution or compensation for any loss or damage or injury caused to the aggrieved person or complainant and pass an order or impose any such penalty which the Competition Commission of India has the power to pass or impose under the Competition Act, 2002, it says.

Every order passed by the Bench shall be final and shall not be called in question in any suit, application, execution or other proceedings and no injunction shall be granted by any court or other authority in respect of any action taken or intended to be taken in pursuance of any power conferred by or under the Act.

Dec. 23rd - 29th Issue

5

China Shipping Logjam Chokes Christmas In US And Europe Chennai

Port Wings News Network evere bottlenecks in trade between China and the rest of the world are frustrating retailers and shoppers in Europe and the U.S. during the year’s biggest shopping season, says a Nikkei Asia report.

During Germany’s first COVID-19lockdown in March, Oliver Hellmold, CEO of Notebooksbilliger, one of Europe’s largest online electronics retailers, started ordering twice as many gadgets from China as usual for this year’s pre-Christmas sales, anticipating a pandemic-related shift toward people working from home.

But by October Hellmold had begun struggling to maintain inventory. The shortages

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year-on-year. For comparison, reliability peaked at 83.5% in June 2019.

Sanne Manders, COO at Flexport, a logistics company headquartered in San Francisco, observes two problems that are leading to dwindling U.S. stocks. “One is that you get a lot of backlog of freight that still needs to be cleared away,” he said. “Second is low inventory levels because people basically empty all the warehouses by buying.”

DISCREPANCY PUSHED UP COSTS According to Drewry, Asia-Europe container shipping traffic in November was down to 84% of January’s levels, despite exports from China to the EU growing 8.6% year-on-year in November. The discrepancy pushed up costs for East-West sea shipping

Europe-China trains, confirms that demand for the “new Silk Road” trains keeps rising owing to capacity shortages on sea.

According to him, the boom started in the second quarter of the year, when large quantities of personal protective equipment were transported from China to Europe.

“We take it that the current levels will be kept until at least the Chinese New Year holiday in mid-February, when the Chinese factories will be closing,” Magnor said.

Nils Seebach, a German e-commerce expert and founder of digital consultancy Etribes, believes both European retailers and Chinese manufacturers have much to blame for the spoiled pre-Christmas bonanza.

UNDERESTIMATION OF THE GROWTH OF ONLINE RETAIL According to him, the main mistake was the underestimation of the growth of online retail, which has shot up to 30% of total retail in Germany, compared to a pre-pandemic 15%.

have been especially dramatic for monitors, PCs and notebooks: Hellmold says that since August demand from schools and the public sector has been up by about 40% year-on-year as learning and services shift online.

NO BIG IMPROVEMENT UNTIL AT LEAST MARCH “We have lately on a daily basis been turning down orders of several hundred units for notebooks, PCs and monitors by schools and local governments,” Hellmold told Nikkei Asia.

Private customers wanting to buy for Christmas, he says, will have to “settle for alternative electronics models that are still available.” He foresees no big improvement until at least March.

Indeed, Sony’s PlayStation 5 and Microsoft’s Xbox Series X are virtually sold out across Germany. Retailers of China-made bicycles, toys, sporting goods and fashion have flagged the same problem.

Stock levels in the U.S. are historically low, too. ShipMatrix, a Pennsylvania-based shipment technology provider, expects 3 billion packages to be shipped during the Thanksgiving-to-Christmas holiday season in the U.S. — up 34% from 2019.

The problem is not simply an increase in demand. Instead, the upsurge has coincided with severe disruption to global logistics chains, with containers in short supply and airfreight struggling to keep up.

Philip Damas, head of supply chain advisers at U.K.-based maritime consultancy Drewry, said, “It’s the first time ever we are seeing such a complete nightmare, with retailers underestimating peak season demand and ports like Rotterdam being highly congested due to the pandemic reducing numbers of truckers and port workers.”

Data by Sea-Intelligence, a global supply chain analysis company, shows that global ocean carrier reliability — defined as how likely carriers are to meet their estimated sailing schedule transit times — is at an alltime low.

In October 2020, carrier reliability was just 52.4%, a reduction of 26.7 percentage points

and airfreight to 174% and 172.1% of the levels in January.

The Shanghai Containerized Freight Index (SCFI) on Dec. 11 reached its highest level since its launch in October 2009, with average spot rates between Shanghai and Los Angeles standing at an all-time record level of $3,871 per forty foot equivalent unit (FEU), a standard measure based on shipping containers. Current spot rates between Asia and North Europe are approaching the $2,500/FEU level, up 19.6% since early September, according to shipping data provider Alphaliner.

Lothar Thoma, managing director air & sea at Gebrueder Weiss, an Austria-based logistics company that has 19 branches in China, explained that the mess started in February, when China closed its ports during the COVID-19 lockdowns, thoroughly upsetting global circulation of shipping containers.

After the conditions in China’s industrial and logistics sectors normalized in the second quarter of the year and Chinese exports rebounded, COVID-19 lockdowns in Europe and the U.S. then took their toll on the European and American ports’ logistics, causing the time a container spends on land to double — in Germany’s case from one week to two.

“Exacerbating this, shipowners saw that prices grew faster on the China-U.S. routes than the China-Europe routes, so they withdrew capacity from the latter to make more money on the former, which makes even more sense when considering that the ChinaU.S. route is about 10 days shorter,” Thoma said.

“Meanwhile, air cargo capacity has been down, too, due to the pandemic-related discontinuation of many passenger flights, which in normal times carry about 70% of overall air cargo capacity. And China-Europe rail cargo is running into bottlenecks at the border between Belarus and Poland, where containers have to be loaded from one train to another, owing to Russian track gauge meeting Continental track gauge there,” he added.

Mattias Magnor, chief operating officer for road and rail of Germany-based Hellmann Worldwide Logistics, which serves the

“They had based their calculations on the assumption of mild graduated growth of the online share, so many of the Chinese goods ordered for Christmas went to the wrong channel: brick-and-mortar retail,” Seebach said. “It is now not possible to simply get those goods quickly into online retail, as they would have to be packaged individually.”

“Our advice for Chinese manufacturers is to facilitate an escape into air cargo by hiking sales prices, which consumers will largely be willing to accept, given demand outstripping supply. And for the online retailers, the marching order certainly is to greatly increase warehouse capacity along the autobahns,” he added.

In the U.S., Satish Jindel, president of ShipMatrix, a Pennsylvania-based shipment technology provider, said it is up to retailers — not consumers or carriers — to get business out of the mess.

“They could help with the situation by giving offers earlier in the season and alerting the consumers that if you order after the 15th, you’re gonna either not get it on time or you’re gonna have to pay for express shipping,” Jindel said.

Asia-North Europe Rates Pass $10,000 – Wait Till It’s Our Turn, Say Forwarders Chennai Port Wings News Network ecord high spot rates from Asia to North Europe and predictions of huge hikes for annual contract rates could lead to a rush of cancelled orders for next year, reports The Loadstar.

Retailers in Europe are already nervous about new partial lockdowns stymieing their sales, and the enormous sea freight rates and surcharges they are being billed is significantly adding to their concerns.

“We are certainly starting to see customers cancelling, as the rates are beyond ridiculous,” one source told The Loadstar today.

It appears carriers are now regularly quoting $10,000 per 40ft HC for January shipments from China to the UK, and another source reported to The Loadstar today he “had heard of $13,500 being quoted”.

He added: “I can’t wait for the day certain lines are chasing our business again, and then I will have great pleasure telling them to phone back in 10 years.”

And The Loadstar continues to receive complaints about the myriad extra charges by carriers on the tradelane, including a ramping-up of cancellation fees.

One UK forwarder source said his carrier was looking at charging a $1,000 per teu booking cancellation fee, two weeks out from 1 January, despite the uncertainty of equipment availability.

“That’s $2,000 per feu for doing nothing but reallocating boxes that they don’t have,” said the irate source.

There are also concerns in the forwarding community that customers will either refuse, or be unable, to pay all the extra charges being racked up by the supply chain disruptions.

Some 6,000 teu carried to the Belgian port of Zeebrugge several weeks ago, due to Ocean Alliance carriers skipping the heavily congested port of Felixstowe, are finally arriving at the

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London Thamesport Isle of Grain general cargo and container facility this week on two feeder vessels.

Communication by the carrier on the relay operation was described by one UK forwarder dealing with customs clearances as “disgraceful”, and another told The Loadstar he feared his boxes could be stuck at Thamesport until after Christmas.

“We have been trying to explain to our customer that it is very difficult to get transport from Kent to the Midlands at short notice – not that container haulage isn’t difficult anyway at the moment,” he said. “I don’t blame them for being angry with us and we have sent a very strong protest to the line, but they don’t even bother to reply.”

In another instance, eight containers of toys that needed to get to UK stores preChristmas, and were due to be unloaded at Southampton, were instead unloaded at Dunkirk after the vessel skipped its UK call. The carrier has advised the forwarder that the transit time for them to be feedered to Southampton would be eight days.

“It took the British three days to evacuate 500,000 soldiers [from Dunkirk] in World War II and, 75 years later, it’s taking a shipping line more than double that to transport eight boxes,” the forwarder told The Loadstar.

The European Shippers’ Council and forwarding association CLECAT have urged the European Commission to follow the lead of the US Federal Maritime Commission and step up its scrutiny of carrier practices.

Meanwhile, the Hutchison Ports-owned port of Felixstowe’s weekly operational update continues to state that it is increasing its labour force by recruiting 104 additional equipment drivers, plus a number of engineers.

6

Vessel Position at Terminals - (23.12.2020 To 30.12.2020)

Dec. 23rd - 29th Issue

7

CITPL - Chennai

CCTL - Chennai Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

X-PRESS ANNAPURNA

TUT/LEH/JED/HAM/ANR/CMB/RTM/ PIR/COK/DAM/VTZ/LGP/KRI

23/12

24/12

TCXNEW

MOL GATEWAY

103

ONE

CCG

NEYYAR

SOH/CMB/COK/JEA/JEB/CME

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

24/12

25/12

FME

TABEA

892E

FTD

CCG

MESSINI

SOH/CMB/COK/JEA/JEB/CME

Port Kelang(North port) – Singapore,Shangha

26/12

27/12

MD1

CAPE MAYOR

18700E

WAN

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

25/12

26/12

ADHOC

COSCO BOSTON

162

CCO

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

29/12

30/12

CI3

ATHENS BRIDGE

114

ONE

Port Kelang(North port) – Singapore,Shangha

ETA

ETD

Service

Vessel Name

24/12

25/12

IEX

24/12

25/12

25/2

26/12

24/12

25/12

SIF

Voy

Agent/Line

SPIRIT OF MUMBAI

CMB

Kattupalli ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

23/12

24/12

ACS

HYUNDAI OAKLAND

100W

HMM

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

25/12

26/12

TCX

MOL GATEWAY

103

ONE

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

26/12

27/12

CCG

NEYYAR

17

SIM

Cochin , Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam Nhava Shiva,Mundra, Khor Al Fakkan, Port Klang,Singapore, Shanghai,

28/12

29/12

ACS

HYUNDAI DUBAI

002W

HMM

28/12

29/12

SHTL

MEXICO

052W

MSK

30/12

31/12

CCG

MESSINI

108E

EMC

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

NSICT - Mumbai ETA

ETD

Service

Vessel Name

23/12

24/12

MESAWA

25/12

26/12

26/12

Voy

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

24/12

25/12

KAK>CMB

RHL ASTRUM

SH047R

SAMSARA

Halida,Colombo

26/12

27/12

KAK>IXZ

TCI LAKSHMI

BOTHRA

27/12

28/12

KAK>CMB

RHL AURORA

SAMSARA

Halida,Colombo

VCTPL, Vizag ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

23/12

24/12

CHX

KOTA LATIF

052W

MSK

Ennore, Krishnapatnam, Visakhapatnam, Tanjung Pelepas, Xingang, Qingdao Colombo,Damietta Piraes Rotterdam, London

Agent/Line

Calling Ports

SEASPAN LEBU

CCA

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

23/12

24/12

IEX

XPRESS ANNAPURNA

2046E

HLL

MIDAS

EM ASTORIA

CCA

Nhava Sheva, Mundra, Port Qasim, Singapore

23/12

24/12

VKS

SSL SABARIMALAI

75

SSL

27/12

MWE

SPHENE

MSK

24/12

25/12

CVK

MSC ISHYKA

XA047A

MSC

27/12

28/12

MECL

MAERSK DENVER

MSK

Colombo,Damietta Piraes Rotterdam, London

25/12

26/12

ECX

SSL KUTCH

203

SSL

Haldia, Paradip

28/12

29/12

AS1

CMA CGM FIDELIO

CCA

26/12

27/12

IEX

YM FOUNTAIN

153E

YML

Colombo,Damietta Piraes Rotterdam, London

CCG

MESSINI

109W

EGI

ME2

MSK

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

28/12

30/12

MAERSK GIRONDE

27/12

29/12

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

28/12

MDM

CAPE MAYOR

18700E

WHL

Colombo

30/12

MESAWA

OEL JUMEIRAH

MSK

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

27/12

29/12

29/12

30/12

ADHOC

RHL AURORA

SH051R

MSC

30/12

31/12

IEX

BEA SCHULTE

CCA

Colombo,Damietta Piraes Rotterdam, London

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

30/12

31/12

BLUENILE

TIM S

MSK

30/12

31/12

CHX

VENETIA

051W

MSK

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

APM Terminal - Mumbai ETA

ETD

Service

Vessel Name

26/12

27/12

CIX

22/12

23/12

22/12

23/12

28/12

29/12

Agent/Line

Calling Ports

ITAL LUNARE

EGI

Jebel Ali, Mundra,Hazira,Nhava Sheva

CIX3

OOCL HAMBURG

OCL

Jebel Ali, Mundra,Hazira,Nhava Sheva

NMG

NAGOYA TOWER

TWF

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

HMM

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

PS3

HYUNDAI BUSAN

Voy

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin 23/12

14/12

CTS

MV.VLADIVOSTOK

164S

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

25/12

26/12

TUX

MV.OEL SHARVAN

20018

TWF

COLOMBO, TUTICORIN, COLOMBO

26/12

27/12

BOX

MV.X PRSS COTOPAXI

20009S

BTL

COLOMBO, TUTICORIN, COLOMBO

Bharat Mumbai Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

23/12

24/12

C16

BALTIC SOUTH

SAM

24/12

25/12

FLC

MSC LUCY

MSC

JEA, DMM, AUH, TAO, UQR, HMD

27/12

28/12

CWX

BARBARA

SEC

26/12

27/12

ME3

MAERSK KALMAR

MSK

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

25/12

26/12

CIX

HYUNDAI PARAMOUNT

CIX

Jebel Ali, Mundra, Hazira, Nhava Sheva

25/12

26/12

EPIC2

MADRID EXPRESS

HLI

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

25/12

26/12

FM3

MAERSK BOGOR

MSK

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

24/12

25/12

MINA

XIN SHANGHAI

COS

Jebel Ali, Mundra,Hazira,Nhava Sheva

26/12

27/12

SWAX

ALS FLORA

CMA

DAR, MUN, MBA, JEA, JEC

24/12

25/12

UIG

SAFEEN ORYX

BTL

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

27/12

28/12

AACI

COSCO TAICANG

COS

23/12

24/12

CWI

AKINADA BRIDGE

GLD

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

CMB, HPH, SHA, NGB, LCH, OAK, LGB

30/12

31/12

C16

WAN HAI 517

WAH

28/12

29/12

TIP

GEORGE WASHINGTON BRIDGE

ONE

Jebel Ali, Mundra,Hazira,Nhava Sheva

CIX3

OOCL SAN FRANCISCO

OCL

Jebel Ali, Mundra,Hazira,Nhava Sheva

28/12

29/12

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

Visit

www.portwings.in for Latest News

Dec. 23rd - 29th Issue

Britain Plans To Rival Singapore With Ship Registry Revamp Chennai

Port Wings News Network ritain is drawing up plans to turn London into a rival of Singapore as a hub for shipping companies to register vessels after the Brexit transition period, according to sources, reports Financial Times.

Industry bodies and unions have been canvassed over the reform of the shipping industry’s so-called tonnage tax after Jan 1 next year, when Britain is no longer subject to the European Union’s state aid regime on subsidies.

According to calculations provided to the government, revamping Britain’s shipping tax and regulation regime could be worth £3.7 billion (S$6.6 billion) to the economy over three years and create 2,500 high-quality jobs directly, as well as 25,000 in related firms.

Plans due to be submitted to ministers at the Department for Transport last week included expanding the scope of the British scheme by counting oil rigs as “ships” for tax purposes – which is not allowed under EU rules controlling the subsidy of maritime transport – in order to attract more business.

A £30 million governmentfunded scheme to train cadets directly on behalf of shipping companies has also been mooted.

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A spokesman for the Department for Transport said: “We do not comment on leaks.”

Since the Brexit vote, the tonnage of ships registered under the British flag has declined by a third, according to a report prepared for the government, because of uncertainty about leaving the bloc.

The proposals argue that this could partly be addressed with a “hearts and minds” campaign to persuade shipping firms to register their vessels under the British flag.

Among the plans being discussed is enabling floating production storage and offloading vessels and drilling rigs to be included in the British tonnage tax regime in order to give Britain a competitive advantage over current EU regulations.

Mr David Blumenthal, a tax partner with Clyde & Co who handles tonnage tax issues, said Britain’s departure from the EU was an opportunity. “The idea is that if we’re not constrained by EU state aid, we could have more ability to do things that would make the UK more attractive to shipping companies,” he said.

In the EU, tonnage tax regimes are signed off by the bloc’s state aid authorities. The rules offer shipping companies a route to avoid corporation tax in exchange

for registering and managing their vessels in an EU country.

Another suggestion is that companies that choose to flag their vessels in Britain could face a “lighter touch” test for how much of their shipping is managed in Britain – a crucial requirement under EU tonnage tax regimes. The proposal seen by the Financial Times repeatedly references Singapore as a benchmark for Britain’s post-Brexit aspirations.

The British tonnage tax scheme also includes a requirement for companies to train cadets, which the new proposals suggested could be taken on by the government – a form of subsidy.

Research for the government has shown this training requirement makes the British tonnage tax up to 14 times more expensive than in Singapore and between eight and 10 times the cost in permissive EU jurisdictions such as Malta and Cyprus. The shipping and wider maritime industry employs more than 200,000 people and contributes over £46 billion a year to the British economy, according to the UK Chamber of Shipping.

The chamber confirmed it was working with the government to explore options to enhance Britain as an international shipping hub.

‘Container Mafia’ Driving Up Shipping Costs In China Chennai

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Port Wings News Network hina became the first country in the world to open up factories on a large scale, setting its enormous industrial engine on the run, with the hopes of reaching pre-pandemic level production. Things seemed to be on track until container shortages came into the scene.

Now, China’s world-beating economic rebound from the coronavirus pandemic is being blunted by a global shortage of shipping containers, sending cargo costs to record highs and hampering manufacturing. The reason: imbalance in trade and, a mafia.

Mafia-like structures: Remember the 1900s, and Hollywood movies highlighting the mafia. The Italian mob controlled a sizable part of American ports.

Nothing went in or out of the ports

without the permission of mob bosses.

Fast-tracking to 2020, China is seeing a mafia that is rather corporate structuring, doing everything the legitimate way, or so. And a crisis is an opportunity for anyone seeking to capitalize on someone else’s woes.

Sensing a profit-making opportunity, some private Chinese firms have been stockpiling containers which are made available to the highest bidder.

A Yiwu-based vendor of household goods, toys, and stationery told Reuters, “Now there is a mafia. You pay extra to get access to containers from private yards, not shipping yards.”

And not just China. This is happening across ports in and out of other South Asian countries.

“Each container can cost 3,000 RMB, which is almost $500, and the

freight is already three times higher than normal. Everyone’s making money, but we aren’t making money,” said the vendor.

There are small scale manufacturers who lament that they can’t buy their way onto vessels, no matter what they agree to pay up.

“Sometimes, carriers won’t book shipping space even when you’re paying them double,” said a freight forwarder at Ningbobased Southwest Logistics Group to Reuters.

Countermeasures: There has been an increasing call by shipping associations in South Korea, Malaysia, and other South Asian countries, requesting government aid to control freight rates.

Reuters says that the container crunch will persist until coronavirus vaccines roll out, and global travel springs back to normalcy.

CMA CGM Ramps up its Asia/Europe Capacity Chennai

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Port Wings News Network

he CMA CGM Group has announced enhancements to its Asia-Europe network to cover the current increased demand, after a six-month period of a significant slowdown for container shipping demand due to the Covid-19 crisis. according to a report in Container News.

The French carrier says it has boosted the capacity assigned to lines between Asia and Europe by 6% for the fourth quarter of 2020 compared to the same period of the previous year. Moreover, CMA CGM will take more action in the first quarter of 2021, expanding its capacity by 10% compared to the current quarter.

Among the measures to strengthen the capacity in the region, CMA CGM has assigned three new 23,000TEU LNG-powered vessels to the AsiaEurope trade, while six more will be deployed in the future, according to the company’s announcement.

Container News has contacted

CMA CGM to clarify if this is extra capacity or whether current vessels deployed on the Asia to Europe trades would be redeployed.

However, CMA CGM had not responded at the time of publication.

An update will be issued should the carrier respond at a later time.

Additionally, two extra loaders operating on routes between Asia and Europe, providing over 9,000TEU in total capacity, with special departures from China to France and the Netherlands will be provided in late December 2020.

Moreover, the Marseille-based company has reported no blank sailing departures on the French Asia Line (FAL) 1 and FAL 3 lines since the recovery began in Asia in mid-May. Furthermore, the Port of Le Havre will be an additional import call on the FAL 1 service between Asia and Europe to provide greater capacity for the French market, according to CMA CGM. The 20,954TEU CMA CGM Antoine de Saint Exupéry will call at Le Havre on Sunday, 13 December,

adding another weekly import call in France to CMA CGM’s FAL 1, which connects Asia to Europe in an 84-day rotation.

This direct connection can ship a container from Shanghai to France in barely 27 days, said CMA CGM and went on to add, “In parallel, the FAL 3 service will make a weekly export call in Le Havre bound for ports in the Red Sea, the Persian Gulf and Asia. Under these new arrangements, the CMA CGM Group’s vessels will make four weekly calls in France — two at Le Havre, one at Dunkirk and one at Marseille/Fos-sur-Mer.” In addition, the French shipping group has taken several measures to speed up the return of empty containers to Asia and to cut delays at the ports it serves in Asia and Europe.

During the second half of 2020, CMA CGM has increased the size of its container fleet by 8.7%, services have been rerouted to clear the build-up of empty containers, and CMA CGM is offering its customers alternative solutions that use other types of containers to meet their needs.

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NEWS - BITS GTLK picks Shipyard OKA to build three RSD59 design dry cargo vessels

Following the results of an open bidding process (submitted in electronic form) for the construction of three dry cargo ships of the mixed “river-sea” class of Project RSD59, State Transport Leasing Company (GTLK) announced Navashino, Novgorod region based OJSC Okskaya Sudoverf (OKA Shipyard, part of UCL Holding) the winner and awarded OKA Shipyard the shipbuilding contract. The initial (maximum) contract price is RUB 3 billion. According to the tender documentation, the newbuilds completion and delivery is scheduled for December 31, 2022.

The RSD59 series vessels are being built to Volgo-Don Max class and have the maximum possible dimensions to transit the Volga-Don Canal.

The RSD59 series vessels were designed for transportation of break bulk, bulk, container, timber, grain and oversize cargo, dangerous goods (Classes 1.4S, 2, 3, 4, 5, 6.1, 8, 9 IMDG Code and BC Code’s Appendix B in the Caspian Sea, in the Mediterranean, Black, Baltic, White, North Seas, including sailings around Europe and to the Irish Sea in winter season.

Vostochnaya Verf Shipyard launches first crab boat Okhotsk

An official launching ceremony for the first Far Eastern crab fishing vessel “Okhotsk” was held on 18 December at Vostochnaya Verf Shipyard, the Governor and Primorsky Krai Gov’t press office said.

The boat’s namesake is Okhotsk, the first city in the Far East of Russia, and the vessel will be the first crab fishing boat to be built at the Far Eastern shipbuilding enterprises.

Sergei Kalitin, the Minister of Industry and Trade of the Primorsky Territory who attended the ceremony highlighted that the construction of the crab fishing boat is carried out within the framework of federal investment quotas and instructions of President Vladimir Putin on diversification of the military-industrial complex for the production of civilian products.

BHP selects DNV GL as Verification Body and Classification Society for Trion FPU

DNV GL will verify that the new infrastructure built for the BHP Trion project is compliant with local and global safety, as well as other requirements, the company said in its release. The Verification Body and Classification contract specifies DNV GL, the leading independent expert in risk management and quality assurance, to participate in design review activities and site surveillance during construction, commissioning, and installation of the floating production unit (FPU).

DNV GL announced it has been awarded a multidisciplinary contract

by BHP Billiton Petróleo Operaciones de México, S. De R.L. De C.V. (BHP) to provide classification, verification, and independent analysis of the Trion FPU. Located approximately 19 miles (35 kilometers) south of the U.S./Mexico border and approximately 112 miles (200 kilometers) from the Mexican coastline, the FPU will be installed in a water depth of approximately 8,200 feet (2,500 meters). BHP holds a 60% interest in the development and PEMEX a 40% interest.

The contracted verification scope DNV GL will carry out includes full project compliance to the Mexican offshore regulations, NOMs (Official Mexican) standards and BHP’s safety case requirements. The scope of work also includes several independent analyses from DNV GL to be conducted during the front-end engineering design and detailed design phase of the project.

CUSTOMS EXCHANGE RATES Notification No.113/2020 (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 18th Dec. 2020

RATE (INR) Import Export 57.05 201.70 58.90 11.45 12.30 91.50 9.65 249.60 53.85 8.65 101.25 20.85 20.25 56.40 5.15 9.00 84.90 9.75 20.70 74.45 72.55 6.95

54.70 188.95 56.80 11.10 11.85 88.25 9.30 233.70 51.50 8.35 97.85 19.60 19.00 54.50 4.80 8.65 81.45 9.15 19.40 72.75 69.85 6.55

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

Drone Survey of ONE Apus Container Collapse Chennai

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Port Wings News Network he cargo claims consultancy WK Webster released the first images of its initial damage survey of the container ship ONE Apus. The company’s inspectors were in Kobe, Japan for the arrival of the vessel and they also conducted a remote drone survey as it transited Osaka Bay towards Kobe Port.

The images are being used by Webster and its clients to understand the scope of the incident while excerpts have been posted on the company’s website for the public to view. The images were taken by two drones using ultra-high definition camera technology as part of the company’s new drone survey product. The images very clearly show the scale and detail of the devastation on board and are being analyzed in conjunction with experts appointed by Webster.

The process of removing containers from the ONE Apus began on December 11 after permission was granted by the Japanese Coast Guard. The ship’s owners, Chidori Ship Holding, and managers, NYK Shipmanagement, which had operated the vessel as part of the ONE Express Network estimated that it would take “over a month” to remove the dislodged containers using a schedule formulated by stowage planners.

“Once unloaded, each will be assessed, and when the discharge of cargo is complete, there will be a full assessment of damage to the

vessel and subsequent repairs,” they said in a prepared statement.

Webster’s team of surveyors in Japan, however, reports that the process started slowly. Only five containers were removed from the vessel last week and work did not proceed over the weekend. Webster also termed the owner’s assessment of the timeline for the process as “optimistic.”

From its team’s initial visual assessment and the analysis of the video and still images, Webster reports that it can be seen that there are 22 bays on deck of which 16 have collapsed to both port and starboard, leaving only six intact or partially intact. “With 20 rows of containers per bay and with stack heights of between six and eight containers, we anticipate that approximately 2,250 containers have been lost or damaged,” they reported. They also noted that the vast majority appear to be 40 foot units and therefore equivalent to approximately 4,500 TEU. “The vessel owners/operators are not currently prepared to release the vessel’s stowage/bay plans,” they said in their update making it more challenging for customers to determine the status of their shipments. Webster said it was seeking further information regarding the fate of individual containers on a case-by-case basis, but noted that “It is likely that some of the upper stowed containers were either empty or holding lighter weight goods.”

While the images clearly show the extent of the toppled stacks,

thousands of containers remain on deck and will have to be examined individually to determine the full extent of any internal damage. The vessel had a capacity of 14,000 TEUs with the managers saying that a total of 1,816 containers were lost over the side when the vessel encountered heavy weather on November 30 in the Pacific at a position about 1,600 nautical miles northwest of Hawaii.

Webster and its experts are continuing to analyze the evidence with the company preliminarily saying the total loss could exceed $200 million, and it could be greater than the value of the vessel which was built in 2019.

Among the issues Webster will be considering in determining the cause of the incident are the weather conditions encountered and what was done by the vessel to mitigate the impact of the weather. They will also be looking at the lashing and securing equipment used and its adequacy, the stowage condition of the vessel on departure from Yantian, China, and the voyage planning, as well as other issues.

The owners and managers of the ONE Apus have also said that a thorough investigation is being conducted into the incident and, of course, Japan as the vessel’s flag state, and other maritime authorities are also investigating. Due to the size and complexity of the loss, it will likely take some time before a report will be available and what steps will be taken to reduce future risks.

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Dec. 23rd - 29th Issue

Asian Container Shortage Threatens European Indica Rice Supply In Early 2021 Chennai

D

Port Wings News Network elays to rice shipments caused by container freight issues are increasingly expected to tighten Indica rice supply in Europe, regional sources say, reports Platts.

While container freight problems have been a global issue throughout 2020, container shortages have been especially acute since November.

These shortages have caused both delays to the execution of rice orders and a spike in freight rates.

According to one Singapore based trader, freight from Myanmar to Europe has increased from around $800-$1,000 per 20-foot equivalent unit as recently as October to $4,000-$4,500/TEU currently, with exporters competing for availability.

A European participant said freight rates from Myanmar to Europe had tripled in recent weeks.

However, this issue goes beyond Myanmar and is affecting all Asian rice origins involved in the lucrative Asia to Europe trade route. As Europe relies almost exclusively on container shipments to supply its Indica rice import requirements, this is quickly turning into a major headache for suppliers. As one major Italian mill noted: “We need some shipments” from Asia, with a European broker complaining that “big shipping lines [are] playing with the world economy.”

The potential Indica rice shortage has been compounded by reduced Italian Indica production this year – which accounts for 50% of total EU output — as farmers switched to Japonica varieties, especially round grain types. According to Ente Nazionale Risi, Italian Long B (Indica) planted area decreased by 19% year on year to 42,700 hectares in 2020, with production further affected by hailstorms and flooding during the harvest.

While other non-European origins would be expected to fill the gap left by Italy, this is proving incredibly difficult and Italian mills have been forced to pay unusually high prices to buy Indica paddy from farmers. Other farmers are holding on to stocks in anticipation of higher prices in the first quarter of 2021, as some buyers appear willing to swallow increasing costs to ensure supply. According to another broker, European buyers who typically purchase Asian Indica are returning to Italy to cover their immediate requirements.

The Italian market was quiet the week ending Dec. 11 because of public holidays and S&P Global Platts assessment of Indica 5% broken white rice was unchanged at Eur590/mt ex-works. However, participants widely expect that the paddy markets held the week ending Dec. 18 and further European demand will likely lead to price increases ahead of the Christmas and New Year holidays.

Equinor Energy, Mitsubishi Heavy Industries Sign MoU for Low Carbon Technology Collaboration

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Chennai

Port Wings News Network quinor Energy AS (Equinor) and Mitsubishi Heavy Industries, Ltd. (MHI) are pleased to announce the signing of a Memorandum of Understanding (MoU) for a low carbon technology collaboration. The non-exclusive cooperation agreement will see both companies develop and use technology to reduce the carbon footprint of oil & gas operations. In particular, the companies will look at further developing the hydrogen and carbon capture, utilization and storage (CCS/ CCUS) value chains.

Makoto Kanda, Senior Vice President of MHI said: “The clear urgency to decarbonize all areas of our economies and the ongoing transformation of the energy sector require not only shorter innovation cycles but also a holistic view of the energy value chain. Closer cooperation between technology providers and energy companies - as reflected in this MoU - will contribute to a better response to the challenges ahead, while ensuring the efficient and reliable production and use of energy.”

Country manager for Equinor Japan, Karsten Stoltenberg said: “As an energy company developing oil, gas and renewable energy, it is important for us to collaborate with companies that have a clear vision for shaping the future of energy. Japan has set ambitious climate change commitments and is the home of large companies driving hydrogen and low carbon technology developments. Signing an MOU with a major technology provider like MHI will enable us to continue working on reducing the CO2 footprint from our oil and gas operations as well as developing new value chains at even greater speed” To date, MHI group provides a number of technologies along the hydrogen and CCUS value chains, including CO2

capture, compression, regasification, and pressurization equipment. MHI has also further developed its advanced class gas turbines to be capable of utilizing hydrogen, currently at 30%, and ultimately 100%. Furthermore, the company’s solid oxide fuel cell (SOFC) units can generate both electricity and heat. Thanks to its competence in shipbuilding, MHI group also provides solutions for long-distance CO2 transport as the company draws on its expertise of building liquefied petroleum gas (LPG) carriers and liquefied natural gas (LNG) carriers which have the same architectural model as the LCO2 ships needed in the CCUS value chain.

Equinor will develop business opportunities to de-carbonize existing value chains related to the oil and gas business, such as CCUS and hydrogen, and create synergies between renewable and oil & gas value chains.

Equinor has strengthen its ambitions and aims to become climate neutral within 2050.

The ambition concerns production emissions and energy use. The current portfolio will be developed to expand the renewable energy components which will be fundamental to achieving the goals of the Paris Agreement.

The MoU was signed by Sophie Hildebrand, Senior Vice President for Research & Technology, Equinor and Makoto Kanda, Senior Vice President of Mitsubishi Heavy Industries, Ltd.

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.