Port Wings Maritime Exim Weekly 3 Feb 2021 Issue

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Wednesday, February 3, 2021

8 Pages

Nitin Gadkari Welcomes Increased Outlay for National Highways New Delhi Port Wings News Network nion Minister for MSME and Road Transport & Highways, Shri Nitin Gadkari on 1 February welcomed the Voluntary Scrappage Policy

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policy will lead to new investment of around Rs.10,000 crores, and create as many as 50,000 jobs.

The Minister said the policy would cover an estimated 51 lakh light motor vehicles (LMV) that are

announced in the Union Budget and said that declaration of the details of the policy will be done within 15 days from today.

In his post-budget interaction with the media at his residence, Sh. Gadkari said that the scrappage

above 20 years of age, while another 34 lakh LMVs are above 15 years.

It would also cover 17 lakh medium and heavy motor vehicles, which are above 15 years, and currently without valid fitness certificates.

These vehicles are estimated to

cause 10-12 times more pollution than the latest vehicles. Outlining the benefits of the policy, Sh. Gadkari said it would lead to recycling of waste metal, improved safety, reduction in air pollution, reduction in oil imports due to greater fuel efficiency of current vehicles, and stimulate investment.

Sh. Gadkari also welcomed the increased outlay for the highways sector, to Rs. 1,18,000 crores, with the highest-ever capital investment of Rs.1,08,000 crores.

While welcoming the increased allocation, the Minister said that the Ministry’s increased stress on monetization of highways will help in expanding the road network in the country.

Indian Shipping Industry Seeks Govt Help To Deal With Piracy In Gulf Of Guinea Mumbai

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Port Wings News Network he Indian National Shipowners’ Association (INSA), the local shipping industry lobby group, has sought the government’s help to deal with pirate attacks in the Gulf of Guinea, reports BusinessLine.

Last week, pirates captured 15 seafarers and killed one off the Coast

of Nigeria in the Gulf of Guinea.

INSA has urged the government to intervene in the matter at the highest level and take it to the United Nations Security Council (UNSC), where it currently holds the status of a non-permanent member.

“The recent spike in piracy is a cause of major concern for Indian vessels and seafarers operating in the region,” said Anil Devli, Chief

Executive Officer, INSA. Energy security According to reports, pirates in the Gulf of Guinea kidnapped 130 seafarers in 22 separate incidents last year.

Due to its unique location and presence of large oil reserves, the Gulf of Guinea holds strategic importance for India. Cargo from the Contd. on page -2

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Budget Showcases India’s Self-belief: PM Narendra Modi New Delhi Port Wings News Network he Prime Minister, Shri Narendra Modi has said that the Budget this year has feel of reality and confidence of development and showcases India’s self-belief. He also said that it will infuse a new confidence in the world in these difficult times.

In his remarks after the Union Budget was tabled in the Lok Sabha, the Prime Minister said that the Budget carries a vision of Aatamnirbharta and inclusion of every citizen and section. Shri Modi explained that the principles behind the Budget include – expansion of new opportunities for growth; new opportunities for the youth; giving new dimension to human resource; infrastructure development and helping new sectors grow.

The Prime Minister said that the Budget will enhance ‘ease of living’ for the common man by simplifying procedure and rules. The Budget will bring positive changes for individuals, investors, industry and infrastructure sector.

The Prime Minister noted the positive early response that the Budget received within hours of its presentation. He said, the Government gave proper attentions to its responsibility towards fiscal sustainability while increasing the size of the budget. He expressed happiness that transparency factor of the budget has been appreciated by the experts.

Stressing the proactive approach of the Government, whether during Corona pandemic or campaign for Aatamnirbharta, the Prime Minister noted that the budget doesn’t have an iota of reactive approach. “We have gone beyond active and have given a pro-active budget”, said the

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Prime Minister.

Appreciating the all-round development emphasis of the Budget, Shri Modi said that it is focused on wealth and wellness, MSME and infrastructure. He also noted unprecedented focus on healthcare.

The Prime Minister expressed happiness that the Budget has taken into account the development needs of southern states, the Northeast

and Leh Laddakh. He said this is a huge step in the direction of turning our coastal states like Tamil Nadu, Kerala, West Bengal into business powerhouse. The Budget will also be greatly helpful in tapping unexplored potential of the NorthEastern states such as Assam.

Mentioning the impact of the Budget on the various segments of society, Shri Modi said its emphasis on research and innovation will help the youth. Common men and women will be benefitted by stress on health, swachchta, nutrition, clean water and equality of opportunities. Similarly, enhanced allocation in infrastructure and procedural reforms will lead to job creation and growth.

The Prime Minister said that the Budget has many provisions for agriculture sector and increasing farmer’s income. Farmers will get easy and more credit. Provisions have been made for strengthening APMC and Agriculture Infrastructure Fund. “This shows that villages and our farmers are at the heart of this Budget” said the Prime Minister.

Shri Modi noted that MSME sector allocation has been doubled to improve employment opportunities.

He said the Budget will lay a strong foundation for the new decade and congratulated the countrymen for a Budget for Aatamnirbhar Bharat.

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Inside Focus on Infrastructure To... Pg-2 Summary of the Budget 2021-22 Pg-3 Shipping Carriers Rejected Tons... Pg-4 JNPTMovesAheadWithFinalisation... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7 Pg-7 DP World Signs 20-Year...

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Feb. 3rd - 9th Issue

Indian Shipping Industry Seeks Govt...

Wednesday, February 3, 2021

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On a Safe Path Forward

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s the Biden administration settles into place, infrastructure will be high on the list of priorities. When he was Vice President, under Barack Obama, Biden had addressed the 2014 American Association of Port Authorities (AAPA) annual convention; in his keynote speech, he stressed the importance of infrastructure around the nation’s waterfronts.

Seven years later, his visions of increased funding at the Federal level for ports and waterways may now be realised. The Trump administration had grand plans for infrastructure, which did not come to fruition, though maritime funding was not negatively impacted.

The wording, from a brief published by the White House, states: “The President will continue to be a strong advocate for the Jones Act and its mandate that only US-flag vessels carry cargo between US ports, which supports American production and America’s workers. With the signing of the 2021 National Defense Authorization Act [NDAA], the Jones Act has also been affirmed as an opportunity to invest in America’s workers as we build offshore renewable energy, in line with the President’s goals to build our clean energy future here in America.”

He is referring here to wording in the NDAA which places the same requirements for US built/owned/operated vessels soon to be working in the burgeoning offshore wind sector that have long been applied to offshore oil and gas. The Offshore Marine Service Association (OMSA), which represents a wide swath of US owners serving offshore oil, and now looking towards the expected boom in offshore wind power in the coming years, had been instrumental in putting the NDAA wording in place.

The President’s ability to influence policy depends on his ability to achieve desired outcomes with Congress- the legislative branch of the US government. The Democratic party will continue to hold a majority in the other legislative chamberthe House of Representatives.

Still unclear, in the ongoing morass of recounting (some mandated by existing rules, some potentially the result of possible legal actions from the Republican side), is whether the Republicans will retain control of the US Senate.

On the vessel side, there was not much difference between the candidates, though shipping topics never really came up in a meaningful way. Biden, like Trump, will be a continued supporter of the Jones Act, which - reserves coastwise trade for vessels built, and owned in the States, crewed by US mariners.

Biden’s ties to Pennsylvania, his “rust belt” birthplace, and the importance of Philadelphia in the election, will not be unnoticed by observers of the shipbuilding scene. Biden has stressed his ties to organised labour, and had gained the support of a number of maritime unions in the election.

On the cargo side, one obvious likely improvement will be the US trades with Cuba, set back by Trump after an opening by Trump’s predecessor Barack Obama, where Biden served as Vice President, 2009- 2019 - easing decades of sanctions.

Increased movements of general cargo, both breakbulk and unitized, and vehicles would benefit both US and other carriers already serving the Caribbean islands.

The US heartland , steel-making states like Michigan and Pennsylvania (won by Biden) and , Ohio (went Republican) were frequent campaign stops for both Donald Trump and Joe Biden. Agricultural stalwarts such as Iowa, Missouri and Kansas were solid “red” states (going for Trump) but fit into the Biden mantra of supporting working Americans. Macro trade flows will see limited impact from a change in Administrations; farmers have noted Biden’s support for biofuels.

The shipping industry will be impacted in a major way, albeit over a timeframe lengthier than a US election cycle, by regulations and initiatives related to climate change. The oil business will likely be under much more pressure to ramp up its non-fossil fuel initiatives, generally, under a Biden regime.

However, macro tanker market influencers, related to fleet supply, OPEC+ actions, and by overall oil demand, not red versus blue, will drive tanker markets.

Sample The US saw exports increase during the Trump years, following an Obama TEXT late 2015 initiative, due to bigger picture fundamentals, rather than by explicit Presidential actions. The offshore wind energy, which has seen projects pushed back several years by Trump administration inertia, will be loudly applauding the Biden victory. Under a Biden administration- with cooperation from the Legislative branch, US shipbuilders, and long-suffering owners of oil service vessels, would welcome efforts to facilitate offshore wind projects, driving US energy consumption away from fossil fuels, in a more timely manner.

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its energy supplies and the interest of India’s mercantile marine fleet

and its seafarers goes hand in hand to ensure sustainable development of the economy” Devli said.

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“We must have a comprehensive mechanism to deal with the menace of piracy in West Africa on the lines of the strait of Hormuz and the Indian Ocean region,” he added.

INSA has also requested seafarers’ unions worldwide and various international maritime bodies to step up to the responsibility of sensitising governments worldwide to the need to combat the scourge of piracy.

Long-Term Contract Freight Rates At Historic Highs, Says Xeneta Chennai Port Wings News Network ontracted ocean freight rates are still climbing according to the latest analysis from market intelligence firm Xeneta.

Their data is showing one of the highest ever monthly rate increases and they are predicting that there are few signs of relief on the horizon, reports Xeneta.

The latest XSI Public Indices report from Xeneta, which tracks data on real-time shipping rates and analyzes more than 160,000 portto-port pairings jumped nearly six percent in January. The index is at historic highs up 4.5 percent year over year.

The XSI effectively takes the temperature of the long-term contracted market, says Xeneta saying it is capturing the latest rates from leading shippers. That temperature is currently through the roof, with congested ports, a lack of equipment, and lopsided demand putting container shipping companies in a position of unparalleled strength during negotiations. The high spot rates seen on key trading lanes over the past few months have cascaded down into contracted agreements, putting the squeeze on shippers worldwide, according to their latest analysis.

“The reasons behind this are complex, but it’s driven by strong export traffic from China that far outstrips imports, leaving containers marooned in, for example, European

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ports when they’re desperately needed back in the Far East,” comments Xeneta CEO Patrik Berglund. “Added to that you have extreme congestion at some hubs pushing up waiting times. This serves to further reduce already strained capacity, exacerbating the imbalance in supply and demand.

And then of course there’s the ongoing impact of COVID-19, with increased online sales married to disruptions in supply chains and, unfortunately, outbreaks amongst essential workers.”

The XSI round-up of regional imports and exports on key corridors shows a similar impact.

In Europe, imports notched up their highest ever monthly XSI increase, surging by 19.3 percent mostly driven by flows from Asian origins.

That drove the benchmark up 12.5 percent year-on-year. However, the supply demand imbalance is evident on the export side, with a 1.9 percent fall, down 1.6 percent compared to January 2020, Xeneta reports.

In the Far East, the picture was reversed, with exports climbing by

15.1 percent (leaving the index at an all-time high – up 17.3 percent year-on-year), while the import figure fell 4.6percent, down 11.1 percent against this time last year.

The US import benchmark showed somewhat less volatility overall, with a rise of under one percent, moving up just a half a percent year-on-year.

Some US importers seem to have been able to compensate for the vast increases on the transPacific with decreases on other import trades.

However, exports fell by their second-largest ever recorded dip, with the figure dropping 6.2 percent. This moves the index down 17.7 percent year-onyear.

“What will happen next?” says Berglund. “It’s impossible to say with any confidence, but we can no doubt expect further change.

We know that Beijing is keen to stabilize rates and protect exports.

So, if we begin to see importers abandoning exports from Asia due to extortionate rates, then expect the authorities to step in. But what measures will they, or can they, take?”

With so much uncertainty, Xeneta is advising companies to maintain flexibility in the procurement strategies while not committing entirely to long-term contracts at these all-time high rates and using market insights to look for opportunities.

Focus on Infrastructure To Facilitate Manufacturing and Exports: FIEO Chennai

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

Continued from page -1 region plays a crucial role in ensuring India’s energy security. Many ships travelling to and from India often transverse through the region.

“As one of the largest seafaring nations, Indian seafarers are present in large numbers on the ships of various Indian and international companies. In fact, it will not be an exaggeration to say that every vessel will invariably have an Indian onboard manning the critical functions of the vessel,” Devli said.

“West Asia is an oil rich region with huge reserves of fossil fuels. As a rising economy, India must secure

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Port Wings News Network ailing the Union Budget 2021-22, Mr Sharad Kumar Saraf, President, FIEO said that the budget has rightly put its focus on infrastructure to revive the economy, address the job loss and support the industries providing inputs for infrastructure. A world class infrastructure will go a long way to make our manufacturing and exports competitive besides reducing the logistics cost. The setting up of seven mega investment Textile Parks would attract investment in the sector, bringing the cutting-edge technology and creating the economy of scale so as

Mr Sharad Kumar Saraf FIEO President

to compete with our South Asian and South East Asian

competitors.

The levy of agri-cess will help in creating agri infrastructure reducing the wastage and enhancing the quality of agri products. Lack of infrastructure is also affecting the prices of the agri commodities. The various facilities for fisheries will push marine exports of the country which has yet not reach anywhere

near its potential, added Mr Sharad Kumar Saraf.

President FIEO said that privatization of the management of major ports will bring the necessary efficiency thereby reducing the cost benefitting the exim community. He hoped that the Government will bring a policy to develop a National Shipping Line to take a major share of India’s exim trade. Mr Saraf said that the Government should allocate the requisite funds for RoDTEP, MEIS and SEIS so that the uncertainty is removed and exporters’ past claims may be released quickly as the same has severely eroded their liquidity.

Feb. 3rd - 9th Issue

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Summary of the Budget 2021-22 New Delhi Port Wings News Network PART-A he Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 202122 in Parliament on 1 February 2021, which is the first budget of this new decade and also a digital one in the backdrop of unprecedented COVID-19 crisis. Laying a vision for AatmaNirbhar Bharat, she said this is an expression of 130 crore Indians who have full confidence in their capabilities and skills. She said that Budget proposals will further strengthen the Sankalp of Nation First, Doubling Farmer’s Income, Strong Infrastructure, Healthy India, Good Governance, Opportunities for youth, Education for All, Women Empowerment, and Inclusive Development among others. Additionally, also on the path to fast-implementation are the 13 promises of Budget 2015-16-which were to materialize during the AmrutMahotsav of 2022, on the 75th year of our Independence.

They too resonate with this vision of AatmaNirbharta, she added.

Physical and Financial Capital and Infrastructure AatmaNirbhar BharatProduction Linked Incentive Scheme Finance Minister said that for a USD 5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis.

Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cuttingedge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs.1.97 lakh crore in the next 5 years starting FY 2021-22.

This initiative will help bring scale and size in key sectors, create and nurture global champions and provide jobs to our youth.

Textiles Similarly, to enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme. This will create world class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over 3 years.

Infrastructure The National Infrastructure Pipeline (NIP) which the Finance Minister announced in December 2019 is the first-of-its-kind, wholeof-government exercise ever undertaken. The NIP was launched with 6835 projects; the project pipeline has now expanded to 7,400 projects. Around 217 projects worth Rs 1.10 lakh crore under some key infrastructure Ministries have been completed.

Infrastructure financing - Development Financial Institution (DFI) Dwelling on the infrastructure sector, Smt Sitharaman said that infrastructure needs long term debt financing. A professionally

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managed Development Financial Institution is necessary to act as a provider, enabler and catalyst for infrastructure financing.

Accordingly, a Bill to set up a DFI will be introduced. Government has provided a sum of Rs 20,000 crore to capitalise this institution and the ambition is to have a lending

companies in global tenders floated by Ministries and CPSEs. An amount of Rs. 1624 crore will be provided over 5 years. This initiative will enable greater training and employment opportunities for Indian seafarers besides enhancing Indian companies share in global shipping.

portfolio of at least Rs 5 lakh crore for this DFI in three years time.

Roads and Highways Infrastructure Finance Minister announced that more than 13,000 km length of roads, at a cost of Rs 3.3 lakh crore, has already been awarded under the Rs. 5.35 lakh crore Bharatmala Pariyojana project of which 3,800 kms have been constructed. By March 2022, Government would be awarding another 8,500 kms and complete an additional 11,000 kms of national highway corridors. To further augment road infrastructure, more economic corridors are also being planned. She also provided an enhanced outlay of Rs. 1,18,101 lakh crore for Ministry of Road Transport and Highways, of which Rs.1,08,230 crore is for capital, the highest ever.

Railway Infrastructure Indian Railways have prepared a National Rail Plan for India – 2030.

The Plan is to create a ‘future ready’ Railway system by 2030. Bringing down the logistic costs for our industry is at the core of our strategy to enable ‘Make in India’. It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022.

For Passenger convenience and safety the following measures are proposed: Introduction of aesthetically designed Vista Dome LHB coach on tourist routes to give a better travel experience to passengers.

The safety measures undertaken in the past few years have borne results. To further strengthen this effort, high density network and highly utilized network routes of Indian railways will be provided with an indigenously developed automatic train protection system that eliminates train collision due to human error.

Budget also provided a record sum of Rs. 1,10,055 crore, for Railways of which Rs. 1,07,100 crore is for capital expenditure.

Ports, Shipping, Waterways Major Ports will be moving from managing their operational services on their own to a model where a private partner will manage it for them. For the purpose the budget proposes to offer more than Rs. 2,000 crore by Major Ports on Public Private Partnership mode in FY21-22.

A scheme to promote flagging of merchant ships in India will be launched by providing subsidy support to Indian shipping

Fisheries Finance Minister proposed substantial investments in the development of modern fishing harbours and fish landing centres. To start with, 5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat – will be developed as hubs of economic activity.

PART-B In Part B of the Budget Speech, the Union Minister Smt. Nirmala Sitharaman seeks to further simplify the Tax Administration, Litigation Management and ease the compliance of Direct Tax Administration.

The indirect proposal focuses on custom duty rationalization as well as rationalization of procedures and easing of compliance.

INDIRECT TAX PROPOSALS On the issue of Indirect Tax proposals, the Minister said that record GST collections have been made in the last few months. She said several measures have been taken to further simplify the GST. The capacity of GSTN system has been announced. Deep analytics and artificial intelligence have been deployed to identity tax evaders and fake billers, launching special drives against them. The Finance Minister assured the House that every possible measure shall be taken to smoothen the GST further and remove anomalies such as the inverted duty structure.

With respect to the custom duty policy, the Finance Minister said that it has the twin objectives of promoting domestic manufacturing and helping India get on to global value change and export better. She said that the thrust now has to be on easy access to raw materials and exports of value added products.

In this regard, she proposed to review 400 old exemptions in the custom duty structure this year.

She announced that extensive consultation will be conducted and from 1st October, 2021, a revised custom duty structure free of distortions will be put in place. She also proposed that any new custom duty exemptions henceforth will have validity upto to the 31st March following 2 years of the date of its issue.

The Finance Minister announced withdrawal of a few exemptions on parts of chargers and sub-parts of mobile phones further some parts of mobiles will move from “NIL” rate to a moderate 2.5 per cent. She also announced reducing custom duty

uniformly to 7.5 per cent on semis, flat, and long products of non-alloy and stainless steel. She also announced exempting duty on steel scrap for a period upto 31st March 2022.

Stressing on the need to rationalize duty on raw material inputs to manmade textile, the Finance Minister announced bringing nylon chain on par with polyester and other man-made fibers. Announcing uniform deduction of the BCD rates on Caprolactam, nylon chips and nylon fiber and yarn to 5 per cent, the Minister said this will help the textile industry, MSMEs and exports too. She also announced calibration of customs duty rate on chemical to encourage domestic value addition and to remove inversions.

The Minister also announced rationalization of custom duty on gold and silver.

The Finance Minister said that a phased manufacturing plan for solar cells and solar panels will be notified to build up domestic capacity. She announced raising duty on solar inverter from 5 per cent to 20 percent and on solar lanterns from 5 per cent to 15 per cent.

The Finance Minister in her Budget speech said that there is immense potential in manufacturing heavy capital equipment domestically and the rate structure will be comprehensively reviewed in due course.

However, she announced revision in duty rates on certain items immediately including

tunnel boring machine and certain auto parts.

The Budget proposes certain changes to benefit MSMEs which include increasing duty on steel screws, plastic builder wares and prawn feed. It also provide for rationalizing exemption on import of duty free items as an incentives to exporters of garments leather and handicraft items. It also provides withdrawing exemption on imports of certain kind of leather and raising custom duty on finished synthetic gem stones.

To benefit farmers, the Finance Minister announced raising custom duty on cotton, raw silk and silk yarn. She also announced withdrawing end-use based concessions on denatured ethyl alcohol. The Minister also proposed an Agriculture Infrastructure and Development Cess on a small number of items. She said “while applying the cess, we have taken care not to put additional burden on consumers on most items.

Regarding rationalization of procedures and easing of compliance, the Finance Minister proposed certain changes in the provisions relating to ADD and CVD levies. She also said that to complete customs investigation, definite time-lines are being prescribed. The Minister said that the Turant Custom Initiative rolled out in 2020 has helped in putting a check of misuse of FTAs.

Tirupur Exporter’s Association Welcomes Union Budget Chennai

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Port Wings News Network hri. Raja. M. Shanmugham, President, Tirupur Exporter’s Association (TEA), said that he welcomed the Union Budget 202122 and noted that it is a pragmatic Budget presented to address all sectors issues at a time when our economy is getting revived back to normalcy.

Shri. Raja. M. Shanmugham welcomed the Fund allocation to Roads and Highways Infrastructure facilities and specifically to Tamil Nadu State at an investment of Rs.1.03 Lakh Crores. Chennai – Salem Corridor: 277 Km Expressway will be awarded and construction would start in 202122.

While welcoming the launching of much talked Mega Investment Textiles Parks Scheme and establishing 7 Textiles Parks in the country over a period of 3 years with Plug and Play facilities, Shri. Raja.

M. Shanmugham said as expected, this will enable to create global champions in exports and was hopeful that Tirupur exporters will opt to setup the units in these Parks.

Shri. Raja. M. Shanmugham was thankful for allocation of Rs.700 Crores for Amended Technology Upgradation Scheme (ATUFs) against Rs.545 Crores in last Budget, which will help to clear the pending Capital Subsidy. He appreciated the allocation of Rs.30 Crores for Export Promotion Studies against Rs.5 Crores in last Budget, a requirement to the industry to know

the export potential available for specified products in the unexplored markets. He was also happy to note that allocation of Rs.100 Crores for Integrated Scheme for Skill Development, a need of the hour to the Textiles Industry.

On rationalization of duties on Raw Material to Man-Made Textiles, he welcomed the reduction of Basic Customs Duty on Nylon chips, Nylon Fibre and yarn, Caprolactam to 5% and this will help for the promotion of Textiles Industry and exports.

He lauded the allocation of Rs.50,000 Crores over five years for National Research Foundation to strengthen Eco system of the country and was hopeful that Tirupur would also get benefitted out of this allocation.

He was thankful for allowing a new tax exemption for the notified Affordable Rental Housing Projects, which was requested by the Association in the Pre-Budget Memorandum to support for the migrant workers.

He welcomed the proposal to allow Women workers in all categories in the night shifts with adequate protection and reduction compliance burden on employers with single registration and licensing, and online returns.

While welcoming the proposal to reduce the time limit for reopening of assessment for income tax proceedings from the present 6 years to 3 years, he said this will be helpful to the taxpayers to concentrate in their mainstream business.

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Feb. 3rd - 9th Issue

Shipping Carriers Rejected Tons of U.S. Agricultural Exports, Opting To Send Empty Containers To China

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Chennai

Port Wings News Network hipping carriers rejected U.S. agricultural export containers worth hundreds of millions of dollars during October and November, instead sending empty containers to China to be filled with more profitable Chinese exports, according to a CNBC investigation report.

The Federal Maritime Commission has received petitions from U.S. agricultural exporters warning that the delays in trade not only threaten profits but the reputation of the industry.

The commission, in turn, launched an investigation and is reviewing the trade data out of key ports in California, New York and New Jersey to see whether the carriers’ refusal to load U.S. export cargo was a violation of the Shipping Act. The act makes it unlawful for carriers to “unreasonably refuse to deal or negotiate,” “boycott or take any other concerted action resulting in an unreasonable refusal to deal,” or “engage in conduct that unreasonably restricts the use of intermodal services.”

The export container refusals came as U.S. agriculture exports were entering their peak season. While the exports run continuously for 12 months, the months of November through March are critical because they follow the harvest of the crops.

Based on the orders completed during this window, agriculture producers have more clarity in planning for the upcoming harvest.

During the winter months, farmers and producers meet with banks to secure funds for the next cycle.

There’s also the threat of the Brazilian harvest, which comes in February. The biggest lesson learned by the agriculture sector during the U.S. trade war with China is that no contracts are sacred – they can always be deferred to another season or canceled altogether.

MILLIONS OF DOLLARS IN REJECTED TRADE Carriers rejected an estimated 177,938 containers known as TEUs (20-foot equivalent units) in October and November, according to analysis of data compiled from the Census Bureau and the ports of Los Angeles, Long Beach, California, and New York and New Jersey.

In mid-October, carriers notified agricultural exporters that they would prioritize empty export containers over agricultural exports.

They also said they would increase prices on U.S. agricultural exports if the commodities were transported.

According to port trade data, the total export container deficit for the ports of Long Beach and Los Angeles was 136,392 TEUs. An estimated 41,546 TEUs were denied out of the Port of New York and New Jersey. The total value lost export trade from those ports is $632 million.

To calculate the value in the potential lost trade as a result of the rejection of agricultural exports, CNBC used the Port of Los Angeles containerized agricultural export price for soybeans/oilseeds/grains, which can be found on the U.S. Census, USA Trade Online site.

The value of this export is $3,552 a TEU. That tally was calculated by taking the difference between the actual empty exports in 2020 vs. the 2019 share of export empties.

“These estimated TEUs are the empty exports that should have been filled in 2020,” said John Martin, manager of the economic and transportation consulting firm Martin

Associates, who verified CNBC’s findings.

“This formula shows you the increased ratio of empty export containers to total exports.

This data suggests particularly the Los Angeles, Long Beach argument that empty export containers were being moved as quickly possible, leaving U.S. export cargo on the docks.”

When reviewing the import and export data from January 2020 to November, CNBC found the pattern of this growing U.S. export container deficit started as early as June for Los Angeles, July for Long Beach, and August for New York and New Jersey.

From July through November, a total of 297,997 TEUs were denied out of the ports of Los Angeles, Long Beach, and New York and New Jersey a container deficit value of $1.1 billion.

“Compared to the same months in the previous time periods, there is a clear increase in the ratio of empty export containers to total exports,” said Martin. “This underscores our continued dependency on China.”

Three in 4 containers from the U.S. to Asia are “going back empty,” according to Redwood Logistics CEO Mark Yeager, who supported the findings of CNBC’s analysis.

“The reason for this is the Chinese are being so aggressive about trying to get empty containers back … that it’s hard to get a container for U.S. exporters.”

The ports weigh in CNBC shared its data with the ports of Los Angeles, Long Beach, and New York and New Jersey.

“American farmers and agricultural exporters should not have to search for containers to get their goods to market,” said Gene Seroka, executive director of the Port of Los Angeles. “We need a cohesive U.S. export policy that addresses a range of issues, including container accessibility for our agricultural markets throughout the country.”

The Federal Maritime Commission’s Carl Bentzel, along with fellow commissioner Daniel Maffei, sent a letter in December to the World Shipping Council saying the refusal of U.S. exports by major ocean carriers could be a violation of the U.S. Shipping Act. “This data and the impact on our economy is potentially very troubling, but unfortunately not altogether surprising,” Bentzel told CNBC. “These numbers track pretty consistently with the complaints that we have been receiving consistently at the FMC for the last four or five months. My fellow commissioners and I have been forwarding these complaints to our enforcement office, and to the ongoing Commission Fact Finding-29, and they are currently evaluating and assessing the claims for potential enforcement.”

The Fact Finding 29 is an investigation, authorized in March, intended to identify actions in the international ocean transportation supply chain and operations that would create disruptions to the flow of international trade.

The investigation expanded in November to include the container return and container availability for U.S. export cargo, as well as the charges in storage and late fees carriers are charging exporters.

But carriers like Germany’s Hapag-Lloyd told CNBC they are indeed moving agriculture exports.

Uffe Ostergaard, president of HapagLloyd’s American operations, said the company has seen agriculture shippers cancel or not show up with about 40% of bookings placed.

“This is in line with historical averages, but you would expect that those cancellations would decrease if there were real space or equipment restrictions,” he said. “On the topic of Agri exports from the U.S., Hapag Lloyd has continued to serve the shippers without interruption as has the broader container carrier industry. … We work closely with the shippers who generally understand the current challenges very well and try to adjust their supply chains accordingly.”

A representative for Evergreen Line said it has been working with Federal Maritime Commission officials on their investigation.

“As stated previously, there are numerous factors that have contributed to congestion at the ports mentioned and we continue to work with FMC officials as they investigate concerns,” said Michael Vooss, of Vooss Hanemann Associates, on behalf of the carrier.

“Although global conditions during this past year may have periodically challenged movement within the supply chain, our priority has remained in servicing customers across our trade lanes for both inbound and outbound cargo, allowing the flow of commerce to move as swiftly and reliably as possible.”

Maersk corporate communications declined to comment, citing the company’s quiet period for earnings. Request for comments

by CMA CGM S.A., Cosco Shipping and ZIM Integrated Shipping Services were not returned.

While agricultural export volume for 2020 was larger than 2019 because of the U.S. Phase One trade agreement with China, the purchases were short of targets. According to the Peterson Institute for International Economics, China imported $100 billion of the U.S. goods agreed to in the deal — roughly 58% of the targeted $173.1 billion.

An export is not official until it is transported and processed in the country of destination.

The increase in agricultural exports, though, pales in comparison to the increased ration of empty export containers.

“The number of hands that touch ag exports or any U.S. exports for that matter is in the millions,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition. “From the farm, processing, storage, to transportation, the amount of jobs that are in this production and supply chain is tremendous.”

America’s farms contributed $136.1 billion in 2019 to the GDP, about 0.6%, according to the U.S. Department of Agriculture.

Agriculture, food, and related industries

contributed $1.109 trillion to the U.S. gross domestic product in 2019, a 5.2 percent share.

“Just when you think America’s ag industry can start running full throttle, this export transportation discrimination starts,” said Friedmann.

‘THIS GOES BEYOND TRADE’ American farmers say they are now tangled in a new battle — having to contend with the growing web of export rejection or delays eating into their profits.

Bob Sinner, president of SB&B Foods, a major American soybean exporter, provided CNBC with some of the details carriers told him regarding rejection or delay of his exports.

As of early January, Sinner, who is also chairman of the Specialty Soya and Grains Alliance, said that 30% to 40% of his company’s total exports have either been delayed or canceled.

“Not only does customer service deny the booking, but then they try to ‘pass the buck’ to their sales rep stating that they are honoring our account allocation plan which is not true,” said Sinner. “Then, their sales rep says the customer service information is not accurate and that he is looking into it, but we have yet to have anything from our sales rep getting this straightened out. Then the same customer service guy comes back with a statement trying to put the blame on us by stating that our booking cancellation has been accepted.

These carriers are getting good at not taking any blame and attempting to put all of the blame on the shipper.”

He added: “This goes beyond trade. This is also about food security. Our soybeans are food grade. We ship between 690-700 bags in a single container. Each bag makes approximately 275 pieces of tofu. That’s a lot of mouths we feed.”

The denial of trade recently forced Sinner to send through air freight 6 metric ton bags to his customers in north Asia to meet their needs.

The denial and delay of agricultural exports can also be tracked by truck.

Containers are piling up in the yard of Knight Port Logistics, which transports cotton, scrap paper, scrap plastic and scrap metal, according to the company’s director of exports, Kyle Layne.

“Cotton exports are being rolled over for weeks and you can’t find export bookings for scrap metal and scrap plastic exports,” said Layne. “These containers are on chassis which is adding to the chassis shortage.”

Record Chinese import volumes in Los Angeles and Long Beach, coupled with the slowdown out of Los Angeles in moving containers off vessels, have added to the empty export problem. “We have had to sit on containers for months,” said Layne. “Right now, we have over 600 total containers in our possession and about half of them are currently sitting in our yard just a few miles from port.”

At most, in a normal trade environment, there are 100 to 150 containers, he said.

“The loaded containers are mostly U.S. exports that we are trying to still turn in to the port,” he added.

Layne said the problem facing the return of these U.S. exports is the lack of appointments at the terminal, which coordinates with the carriers in loading the exports.

“The ratio of our import/export business is typically 70/30. Now it’s 90/10,” he said.

“Exports are down around 30% for us for the end of 2020. We have seen a 15% decrease in exports volume. It is easier for us to get an empty container into the Los Angeles terminal than a U.S. export.”

Feb. 3rd - 9th Issue

JNPT Moves Ahead With Finalisation of Draft Development Proposal for JNPT SEZ Port Wings News Network awaharlal Nehru Port Trust (JNPT), India’s premier container port, is engaged in developing multiproduct Special Economic Zone (SEZ), an initiative under the ‘Sagarmala’ program of the Ministry of Shipping and is built on JNPT owned free hold land of 277 hectares at Navi Mumbai.

The work of developing the Draft

map, proposed zone plan and report.

Thus, now JNPT steps forward in the process for finalisation of the Draft Development Proposal for JNPT SEZ. The maritime industry has seen rapid growth in the last few years due to increased planned outlay of the government, improved infrastructure facilities and greater access to global markets. The multi-product port based JNPT SEZ aims to boost exports by

Development Proposal for JNPT SEZ area is underway and as per the laid down procedure of regulatory authority (Urban Development department of GoM), the draft development proposal for JNPT SEZ was put up for objections and suggestions from the public during the period of December 3, 2020 to January 1, 2021.

On 15 January, a five-member committee headed by Shri Unmesh Sharad Wagh, IRS, Deputy Chairman, JNPT heard out the suggestion received from M/S NSBPPL with regards to the draft DCPR, other than that, no objections or suggestions were received on the existing land use

enabling port-led industrialization under Sagarmala and is currently operational with 20 MSME and one Free Trade Warehousing Zone (FTWZ) co-developer who have been allotted plots till date. Five units have started their construction activities and amongst them two units have recently started their operations in SEZ successfully.

Three units in JNPT SEZ namely, M/s OWS LLP, M/s OWS Ltd and M/s Krish Food Industry (India) have completed their first phase of operational activity and are declared operational units by Development Commissioner, SEEPZ, SEZ in June 2020. Apart from these three

Mumbai

J

companies, four more companies have started their construction activities in the port. JNPT is ensuring world-class infrastructure and facilities to units in the SEZ. Once fully occupied and operational, JNPT-SEZ is expected to generate Rs 4,000 Crores of investments and create 57,000 direct jobs and generate total employment with multiplier effect to the tune of 150,000, generating substantial employment opportunity. JNPort also enjoys the Special Planning Authority (SPA) status for the SEZ project. The port based SEZ at JNPT, will serve as a lucrative investment destination for the domestic and global port-based industries and will set a new benchmark for port led industrialization. Also, the companies setting their base can leverage the business benefits that the SEZ offers due to the proximity to the Port. With systematic planning, integration, and development of SEZ, along with efficient and inter-linked transport network will help in playing a vital role to reap great benefits that will help the country and in making port based industrialization a success.

With the introduction of JNPTSEZ, the premier container port aims to slash cost, help in moving goods to and from ports quickly, efficiently, and cost-effectively to increase the competitiveness of the Indian goods globally. With the introduction of the port-based SEZ, the hinterlands of JNPT are being industrialized and this is prompting an economic transformation. This will further promote manufacturing and will directly contribute in making JNPT, the ‘Port of Choice for the Exim Trade’.

Japanese Ocean Carrier ONE Q3 Revenue up 29% Mumbai

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Port Wings News Network apanese ocean carrier ONE recorded a net profit of $944m for its third quarter, OctoberDecember, and expects to see profits of $2.5bn for the full year.

That would represent an astonishing 172% upgrade on its November guidance, thanks to huge hikes in freight rates hitting the carrier’s bottom line.

Moreover, it would appear that

ONE is being conservative with its $900m net profit Q4 forecast for January to March, given the impact of even higher rates well into this quarter.

Q3 revenue for the merged container business of K Line, MOL and NYK surged by 29%, compared with Q3 19, at $3.76bn for an ebitda of $1.3bn and an ebit of $1.04bn.

ONE does not release data on its total liftings, but on the main AsiaUS and Asia-Europe headhaul routes it did reveal it carried 730,000 teu and 402,000 teu respectively during the period, achieving over 100% utilisation on both trades, due to its deployment of extra loaders.

Based on its own freight index, set at 100 in 2018, ONE’s average rate per teu in the quarter stood at 125 percentage points for AsiaEurope westbound, and 140 AsiaUS eastbound, compared with just 98 and 104 for the same quarter of 2019.

ONE attributed the “significant” increase in profits to the “sharp recovery in cargo demand and increases in the short-term freight market”, adding: “During Q3, global container volumes surged due to inventory restocking, with a strong demand for consumer goods and medical products.”

The carrier also said that it had benefited from a reduction in bunker price from $417 to $314 per tonne.

“The resurgence of Covid-19 has led to labour shortages and operational restrictions in many locations, which has resulted in port

congestion and longer port stays, due to lower productivity and heavy rail and truck traffic,” said ONE. It had chartered additional ships and deployed extra sailings in order to recover schedule integrity and to “rescue rolled cargo”.

ONE also said it had “ordered a large number of containers” to phase into its network to mitigate the impact of equipment shortages, in addition to deploying sweeper vessels to reposition boxes back to Asia.

In December, ONE signed a letter of intent with compatriot shipowner Shoei Kisen Kaisha for a 15-year charter of six newbuild scrubber-fitted 24,000 teu ULCVs for delivery in 2023 and 2024.

Currently ONE is the sixthranked container line by capacity, with a fleet of 224 ships and an operating capacity of 1.6m teu.

ONE’s 30% equity holder, MOL, said the carrier had “achieved a significant increase in profit” from “historic rate levels” which it expected to continue.

“Despite some anxiety over a decline after China’s lunar new year holidays, it is anticipated that overall cargo movement will remain firm.”

ONE moved into the black in its second year of operation, posting a profit of $105m for 2018-2019, after recording a deficit of $586m in the first year after the merger.

5

Tirupur Exporters Association’s Plea to Union Minister Irani Chennai

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Port Wings News Network irupur Exporters’’ Association (TEA) on 30 January requested Union Textile Minister Smriti Irani to facilitate the immediate announcement of remission of duties and taxes on exported products (RoDTEP), among others.

Raja M Shanmugham, President, TEA, said the Minister should also intervene in the issue related to additional sops as a percentage for a short term to mitigate the ongoing crisis and maintain tranquility in the textile industry.

“When the exporters have come out of the COVID-19 pandemic impact and taking efforts to revive the exports, the rise in the price of cotton yarn coupled with its intermittent supply in the past two months has triggered a reverse trend and the future of the affected small exporting units is at stake, Shanmugham said in a letter to the Minister.

Shanmugham stated: “We wish to note that COVID-19 pandemic has triggered the worst global recession and the resulting economic crisis has led to a sharp decline in Tirupur exports in the month of March 2020 and also first quarter of current financial year 2020-21. With the announcement of financial measures and industry measures, Tirupur knitwear garment sector revived back and the exports have reached normal exports trend as like in the corresponding period of previous year and we are hopeful that knitwear exports from Tirupur will clock Rs. 24,000 crores in the current financial year against Rs. 27,280 Crores recorded in the previous year, 2019-20, with a negative growth of 12%.”

“Tirupur knitwear exports sector

is vulnerable to several internal and external economic challenges that affect its overall performance. We wish to note that the conducive manufacturing eco system has now got affected and as a result of this impact, the exporting units are literally struggling to sustain in the business now. We apprehend that

the crisis will lead to Snowball effect affecting all stakeholders of the knitwear garment sector. What we need at this juncture to come out of the ongoing crisis is immediate requirement of a positive measure from the government end which has to be largely helpful to maintain a business tranquility in the entire value chain of the Textile Industry. We request the Hon’ble Minister to kindly help for immediate announcement of Remission of Duties and Taxes on Exported Products (RoDTEP) rates including additional sops as a percentage for a short term mainly to mitigate the ongoing crisis and maintain the tranquility in textile industry, which will be helpful to enhance the competitiveness of knitwear garment exporting units and fulfill Aatmanirbhar Bharat,” Shanmugham said in the letter.

Lack of Availability of RoDTEP Rate May Affect Future Exports: FIEO Chennai

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Port Wings News Network ailing the just released Economic Survey, Mr Sharad Kumar Saraf, President, FIEO said that the country is set to end with a current account surplus of +2% of the GDP after 2003-04.

However, the better than expected recovery both globally and internally provides a huge opportunity for India to push its exports in pharma, medical equipment, PPE kits, technical textiles, networking products, food & processing products, cereals, steel, plastics, chemicals and iron & steel.

The opportunities in the labourintensive sectors are also gaining traction. However, a study should be conducted to understand why many of these products having high Revealed Comparative Advantage (RCA) are not figuring in our main exports (either in share or value), as pointed out by the Survey.

Mr Saraf said that while initiatives like RoDTEP are aimed at providing continued support to the industry, this requires immediate announcement of the rates as in absence of the rates, exporters are not able to do their export

costing with a view to finalise new contracts. Any further delay will have serious implications for future exports as exporters are in “wait & watch mood” before finalising new contracts particularly in sectors having thin margins.

President FIEO felt that the Production Linked Incentive (PLI) Scheme will be a game changer and put India’s focus on technology exports - electronics, electrical machinery and automobiles, which accounts for over 35% of global imports. The domestic capabilities in these sectors will also help to save over USD 100 Bn in imports annually on a recurring basis.

While the judicious intervention in the forex market has prevented one sided appreciation of Rupee, the Survey also admits that Rupee appreciated by 2.9% in terms of Real Effective Exchange Rate. He urged the Government to allow Rupee to reach its real value so as to provide further competitiveness to exports.

6

Vessel Position at Terminals - (03.02.2021 To 10.02.2021)

Feb. 3rd - 9th Issue

7

CITPL - Chennai

CCTL - Chennai Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

TOKYO BAY

Colombo,Damietta Piraes Rotterdam, London

05/02

06/02

TCXNEW

XIN QIN HUANG DAO

064E

CCO

Port Kelang(North port) – Singapore,Shangha

CCG

MOGRAL

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

03/02

04/02

CI3

ATHENS BRIDGE

115

ONE

Port Kelang(North port) – Singapore,Shangha

07/02

ECH

SSL KUTCH

CGP/HAL/PRT/KAK

06/02

07/02

FME

TABEA

893E

FTD

Port Kelang(North port) – Singapore,Shangha

05/02

ADHOC

WESTERMOOR

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

ETA

ETD

Service

Vessel Name

06/02

07/02

IEX

04/02

05/02

06/02 04/02

Voy

Agent/Line

NSICT - Mumbai Voy

Agent/Line

Calling Ports

Kattupalli ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

3-2

4-2

TCX

XIN QIN HUANG DAO

64

CCO

Port Kelang(North port) – Singapore,Shangha

3-2

4-2

ACS

HYUNDAI ANTWERP

003W

HMM

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

4-2

5-2

IVK

ASIATIC KING

002E

GOL

4-2

5-2

C15

KMTC NHAVA SHEVA

2101

SSA

ETA

ETD

Service

Vessel Name

3-2

4-2

BMM

HAZEL

PRD

3-2

4-2

BLUENILE

UNI FORTUNA

MSK

4-2

5-2

IEX

BEA SCHULTE

SBG

Colombo,Damietta Piraes Rotterdam, London Nhava Sheva, Mundra, Port Qasim, Singapore

4-2

5-2

ACS

HYUNDAI PARAMOUNT

055W

HMM

7-2

8-2

C15

NORTHERN GUARD

47

GOL

7-2

8-2

C13

ATHENS BRIDGE

115

ONE

8-2

9-2

SHTL

MEXICO

104E

MSK

10/02

11-2

CCG

MOGRAL

0034E

SIM

5-2

6-2

MIDAS

AS PATRICIA

MSK

6-2

7-2

MWE

LISA

MSK

07/02

08/02

MECL

MAERSK DETROIT

MSK

Colombo,Damietta Piraes Rotterdam, London

07/02

8-2

IIX

SHAHR E KORD

IRI

Nhava Sheva, Mundra, Port Qasim, Singapore

08/02

09/02

AS1

APL COLUMBUS

CCA

9-2

10-2

AIM

NEW JERSEY TRADER

HLI

9-2

10-2

ME2

MAERSK GIRONDE

09/02

10/02

MESAWA

CMA CGM JAMAICA

10/02

11/02

BLUENILE

RIO CENTAURUS

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

Tuticorin,cochin,Pipava, Kandla,Jebel ali

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

Kakinada Container Terminal

MSK

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

CCA

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

MSK

APM Terminal - Mumbai

ETA

ETD

Service

Vessel Name

6-2

7-2

KAK>CMB

RHL ASTRUM

Voy

Agent/Line

Calling Ports

SAMSARA

Halida,Colombo

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin 3-2

4-2

CTS

MV.KAPTIAN MASLOV

103S

FAR SHIPPING

COLOMBO-TUTICORINCOLOMBO

4-2

5-2

TUX

MV.OEL SHARVAN

21106

TWF

COLOMBO-TUTICORINCOLOMBO

Agent/Line

Calling Ports

5-2

6-2

BOX

MV.XPRESS COTOPAXI 21009S

BTL

COLOMBO-TUTICORINCOLOMBO

ALEXANDER BAY

MAE

Jebel Ali, Mundra,Hazira,Nhava Sheva

6-2

7-2

CTS

MV.KAPTIAN MASLOV

104S

FAR SHIPPING

COLOMBO-TUTICORINCOLOMBO

TIP

MOL GRANDEUR

ONE

Jebel Ali, Mundra,Hazira,Nhava Sheva

07/02

08/02

TUX

MV.OEL SHARVAN

21104

TWF

5-2

CIX

ITAL LUNARE

EGI

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

COLOMBO-TUTICORINCOLOMBO

4-2

5-2

CIX

GREEN HARMONY

HLI

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

6-2

7-2

ME3

MAERSK KITHIRA

MAE

Pipavav,Hazira,JNPT,Jebel Ali,Salalah,Port Said,Mersin,Ambarli Port,Izmlt Korfezi,Novorosslysk Port Qasim, Nhava Sheva, Pipavav, Colombo, T.Pelepas,Tanjung, Singapore, Hong Kong, Ningbo, Pusan, Kwangyang, Qingdao, Dalian, Xingang

ETA

ETD

Service

Vessel Name

8-2

9-2

CIX3

3-2

4-2

4-2

Voy

10-2

11-2

PS3

YM UBIQUITY

YML

7-2

8-2

CWX

HARRIER HUNTER

TSL

10-2

11-2

CWI

AEGIALI

KMD

4-2

5-2

ASX

NAGOYA TOWER

TWF

Jebel Ali, Mundra,Hazira,Nhava Sheva

5-2

6-2

FM3

MAERSK BOGOR

MSK

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

VCTPL, Vizag ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

3-2

4-2

CHX

KOTA LATIF

103W

MSK

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

4-2

5-2

MDM

TRF KAYA

1705E

BTL

Colombo

4-2

5-4

IEX

TOKYO BAY

2051W

HLL

Colombo, Damietta Piraes Rotterdam, London

7-2

8-2

CCG

MOGAL

34

SMI

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

9-2

10-2

FME

TABEA

893E

ISS

Port Kelang(North port),Singapore, Shanghai

10-2

11-2

CHX

GH LEVANT

104W

MSK

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

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.

SAFEEN, AMLS Launch Fully-Integrated Marine Logistics Provider OFCO – Offshore International

S

Chennai

Port Wings News Network AFEEN, Abu Dhabi Ports’ maritime arm, has recently signed a historic agreement with Allianz Marine & Logistics Services (AMLS), to launch a new international provider of integrated maritime logistic services.

Operating under the title of Offshore Support and Logistics Services Company (OFCO – Offshore International), headquartered in Abu Dhabi, the new joint venture will be one of the largest, most capable, and cost-efficient providers of onshore and offshore integrated logistics solutions and subsea services in the GCC region and beyond.

Setting itself apart from the competition, OFCO combines SAFEEN’s strategic position and experience as a port marine operator, with AMLS’ diversified fleet and expertise in offshore logistics and supply chain management, making it the leading fully-integrated supplier of marine logistics solutions and services in the GCC. Thanks to the potent synergy of worldclass fleet assets, management systems, and supply base operations, OFCO is uniquelypositioned as a ‘one-stop-shop,’ offering clients a spectrum of service solutions including integrated logistics for oil and gas/ engineering procurement and construction (O&G/ EPC) companies, inspection repair and maintenance (IRM), and subsea services, supported by Abu Dhabi Ports’ land-based operations.

OFCO’s broad range of services will be aimed towards large offshore infrastructure projects, which include ongoing operations within the regional oil and gas sector, as well as future projects set to be launched in the coming years.

Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “The launch of OFCO represents a significant leap forward for SAFEEN, which is one of the main pillars of our maritime business.”

Captain Mohamed Juma Al Shamisi stated: “By adding OFCO to our extensive portfolio of trade, logistics, and port services, we are in a position to offer our regional and global customers a very comprehensive and compelling end-to-end value offer, in one place and at the same time. Working closely with trusted partners, we are responding to market needs and expanding Abu Dhabi’s role as the regional and global hub for offshore services.”

Captain Maktoum Al Houqani, Head of Maritime Cluster, Abu Dhabi Ports, said: “When we considered the growth of the global offshore support vessel market, as well as the offshore projects market, we saw a tremendous opportunity and potential for a new integrated marine logistics provider.

With access to a growing diversified fleet of modern vessels, our partnership with AMLS will allow us to take our expertise and capabilities to new horizons, and unleash our full potential as a preferred global maritime services provider.”

Feb. 3rd - 9th Issue

DP World Signs 20-Year Concession Agreement With Angola Chennai

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Port Wings News Network P World, a leading global provider of smart logistics solutions, has signed a 20year concession agreement with the Government of Angola to operate the Multipurpose Terminal (MPT) at the Port of Luanda.

The agreement was signed in Luanda today by António Bengue, Chairman of Porto de Luanda and Sultan Ahmed bin Sulayem, Group

Chairman and CEO of DP World.

The signing of the agreement follows an international tender process in which DP World was selected by an evaluation committee set up by the Angolan Ministry of Transport as the preferred bidder to enter into discussions with the Government for the concession.

The MPT will be the first seaport terminal located on the western coast of Southern Africa to be operated

and managed by DP World, and will further extend the company’s footprint in Africa.

Under the agreement, DP World will invest US$190 million over the 20-year period of the concession, with plans to rehabilitate the existing infrastructure and acquire new equipment to bring operations in line with global standards and improve the efficiency of the MPT, as part of the broader aim of increasing the terminal’s annual throughput to approximately 700,000 TEUs per year. This will be supported by a modern port management system, as well as further training and development of Angolan staff employed at the terminal.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said: “We are delighted to sign the concession agreement and forge a partnership with the Government of Angola.

Our entry into Angola and planned investment in the terminal, as outlined in the agreement, reflects our belief in the potential for further economic growth in the country.”

Sultan Ahmed bin Sulayem stated: “We look forward to playing our role in supporting the

government to achieve its growth objectives through this key sector by leveraging our expertise, not just as a port operator, but also as a global provider of end-to-end logistics solutions.”

Ricardo de Abreu, Minister of Transport of the Government of Angola, said: “We understand that the performance of the Transport Sector in our country must count on key players such as DP World, to help us both modernise our infrastructure, as well as make it more competitive.”

Ricardo de Abreu stated: “As Government, maintaining the jobs of workers assigned to the Terminal, the implementation of a training and capacity building plan in different areas by the concessionaire, and the inclusion of middle and senior Angolan staff in its decision making structure, are some of the other gains from this relationship that we greatly appreciate.”

The largest port in the country, the Port of Luanda is located in a natural bay in the country’s capital Luanda. Its regional location, which makes it a mandatory stop on the sea routes along the west of the African continent, gives it the opportunity to benefit from trade flows into the surrounding region. The terminal will be developed into the largest such facility in Angola. The MPT at the port handles both containers and general cargo, and has a pier of 610 meters, a depth of 12.5 meters and a yard of 23 hectares.

Global Firms Join Hands To Sign Declaration On Seafarer Welfare Chennai

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Port Wings News Network

oinciding with the start of the 2021 World Economic Forum, more than 300 companies from a broad range of industries across the globe are coming together to add their voice to the other organizations seeking to call attention to the humanitarian issues and challenges seafarers are facing caused by the restrictions implemented to control the COVID-19 pandemic.

Saying that the current issues are not an acceptable way to treat seafarers, the global companies and organizations are committing to take action to resolve the crew change crisis while calling on peers and other stakeholders, in particular relevant government bodies, to join the efforts.

“We, the signatories to The Neptune Declaration on Seafarer Wellbeing and Crew Change, recognize that we have a shared responsibility to ensure that the current crew change crisis is resolved as soon as possible and to use the learnings from the crisis as an opportunity to build a more resilient maritime supply chain,” says the declaration. The companies in the effort include A.P. Møller Mærsk, BP, BW, Cargill, COSCO, DOW, Euronav, MISC Group, NYK, Rio Tinto, Shell, Trafigura, Unilever, and Vale.

The companies recognize the significant efforts by international organizations, unions, companies, and governments to resolve the crew

change crisis, but they write that are concerned that the situation will get worse as governments bring in more travel bans in response to the new strains of the Covid-19 virus. They highlight national authorities around the world that continue to see crew changes and international travel as a Covid-19 risk along with the failure to consistently implement the health protocols by ship operators and governments. The disruption of international air travel has also reduced the number of flights between traditional crew change hubs and major seafaring nations.

“We believe that the most effective way of addressing the crew change challenge and building a more resilient maritime logistics chain, is by working together across the value chain with industry stakeholders, organizations, and with governments to implement solutions that work in practice,” the declaration says.

They expanded on some of the previous calls saying that based on existing best practices, the standard health protocols should be established. This would provide a universal framework to guide safe crew changes. In addition, they are also calling on the aviation industry to work with the maritime sector to ensure that airlift capacity is maintained between major crew change hubs and seafaring nations.

Finally, they are calling for increased collaboration between ship operators and charterers. The declaration states that ship owners and charterers should share relevant

information and collaborate to ensure that necessary crew changes can be carried out. The owner should provide the charterer with as much notice as possible on intended crew changes, while the charterer should make all reasonable efforts to accommodate crew changes including when the vessel has to make a reasonable deviation.

“Keeping people safe while keeping food, material for the manufacture and administering of vaccines, and other essential goods moving efficiently is key for global supply chain continuity, trade, and our everyday lives,” said Margi Van Gogh, Head of Supply Chain and Transport, Shaping the Future of Mobility, World Economic Forum speaking as a signer of the declaration. “Unified, prompt action from governments and other key stakeholders is needed to protect the lives and livelihoods of the 1.4 million seafaring men and women who serve us all across the seas, and who continue to face extreme risk to their safety and earnings.”

The Neptune Declaration has been developed by a task force of stakeholders from across the maritime value chain including A. M. Nomikos, Cargill, Dorian LPG, GasLog, Global Maritime Forum, International Chamber of Shipping, International Maritime Employers’ Council, International Transport Workers’ Federation, ONE, Philippine Transmarine Carriers, Sustainable Shipping Initiative, Synergy Group, V. Group, and World Economic Forum.

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NEWS - BITS Damen Services to fit VEEM Gyrostabiliser to Naviera Integral FCS 5009

Damen Shipyards Group has placed an order with VEEM – the Western Australia-based market leader in marine stabilisation products – for a VG1000SD Gyrostabiliser, the company said in its release.

Damen Services will supply the gyrostabiliser to one of Naviera Integral’s latest Fast Crew Suppliers (FCS) 5009, as well as providing the required engineering and supervision of the installation. The vessel, which is one of fifteen DAMEN FCS 5009 vessels in Naviera Integral’s fleet, operates in the Gulf of Mexico. The company’s client sees the advantages in the increased safety and cost-efficiency offered by marine access solutions. The incorporation of the 20-tonne VEEM unit will reduce roll motions significantly, enabling the vessel to operate with optimal speed and efficiency, even in rough seas.

Marcel van Hemert, account manager at DAMEN said, “Installing the stabilisers to the FCS 5009 will considerably increase comfort for those on board. Additionally, the vessel will be able to operate in harsher weather conditions, maximising uptime. We are very confident that integration of gyrostabilisers to marine access solutions has a promising future. This paves the way for marine access farther from shore to become a more relevant and practical solution, making offshore transfers both safer and more cost-efficient.”

Russian Fishery Company Put Into Operation Digital Fleet Operations Center

Russian Fishery Company says it has put into operation a digital Fleet Operations Center (FOC). FOC provides planning, organization and control of fishing and production processes, including using a video surveillance system. FOC is based on an integrated information system that consolidates data from internal management, modeling and forecasting information systems, and from external sources.

In the Fleet Operations Center, in one interactive interface, access to operational, analytical and forecast indicators of fishing and production, as well as to the indicators of the company as a whole, is provided.

The ability to receive and analyze data in a “single window” allows you to quickly respond to changes in production and financial metrics, simulate scenarios with high accuracy and ensure the achievement of key performance indicators of the Company.

FOC managers have the opportunity to monitor meteorological realtime data in the fishing areas and the fleet location, receive video from CCTV cameras on vessels, which provides a high level of production process control, including control of compliance with safety regulations.

Jumbo Shipping Completes Shipment Of A 1435t Shiploader From Vietnam To Canada

Jumbo Shipping raised the bar with the recent shipment of a 1435t shiploader, measuring 135 x 25 x 43 metres, from Vietnam to Canada for the machine’s manufacturer Tenova, the company said in its release.

After almost two years of engineering, the Jumbo Shipping team saw their hard work come to life when the Jumbo Kinetic was captured on film lifting and shipping this gigantic 1435t shiploader from Phu My Port, Vietnam to Vancouver, Canada. Heavy Lifting Having conducted a final loading simulation, the time had come for the engineers to put MV Jumbo Kinetic, a K-class vessel with 3,000t dual lifting capacity, to the real test by loading this super-heavy shiploader onboard.

Lift On Based on the size of the unit and the length of its boom, loading this shiploader at Phu My Port, Vietnam was a formidable task, but the dual lift went without a hitch. With stage one of the lifting operation complete, the next step was to temporarily suspend the unit above the deck so that the boom could be retracted to change the centre of gravity position. This enabled the vessel’s team to re-rig and then perform a single lift to shift the shiploader to its final stowage position where it could be secured for the sea voyage to Vancouver.

CUSTOMS EXCHANGE RATES Notification No.05/2020 (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 22nd Jan. 2021

RATE (INR) Import Export 58.00 199.80 58.90 11.45 12.10 90.15 9.60 249.10 53.95 8.80 101.60 20.70 20.10 56.10 5.05 8.90 83.80 10.15 20.50 73.85 71.85 6.85

55.60 187.50 56.80 11.10 11.65 86.95 9.25 233.35 51.60 8.45 98.10 19.40 18.85 54.15 4.75 8.60 80.45 9.50 19.25 72.10 69.20 6.45

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

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RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2021-2023 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

PSA International Makes 2 International Commitments To Support The Global Fight Against COVID-19 Chennai

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Port Wings News Network o support the global fight against COVID-19 in its many aspects, PSA International (PSA) has signed the Neptune Declaration for Seafarer Wellbeing and Crew Change, joining forces with over 300 signatories across the supply chain to ensure that the current crew change crisis is resolved as soon as possible.

PSA has also teamed up with the World Economic Forum (WEF) and 17 other like-minded partners to support UNICEF in distributing COVID-19 vaccines under the global COVAX programme.

One of the effects of the COVID-19 pandemic has been an unprecedented crew change crisis, impacting hundreds of thousands of seafarers. Fatigue after long periods at sea has significant consequences on the physical and mental wellbeing of seafarers. As the frontliners of the maritime industry carrying 90% of global trade, seafarers play an important role in the safety and integrity of maritime supply chains.

The Neptune Declaration defines four main actions to facilitate crew changes and keep global supply chains functioning: • Recognize seafarers as key workers and give them priority access to COVID-19 vaccines • Establish and implement gold

standard health protocols based on existing best practice • Increase collaboration between ship operators and charterers to facilitate crew changes • Ensure air connectivity between key maritime hubs for seafarers Even as the first COVID-19 vaccines begin to be rolled out, the Neptune Declaration highlights that seafarers should be recognised as key workers and be given priority access to them. Beyond calling for the priority vaccinations of seafarers, PSA has also made a commitment to enable the safe, sustainable and globally inclusive distribution of COVID-19 vaccines through signing the WEF Supply Chain & Transport Industry Charter in support of UNICEF and COVAX Vaccine Distribution.

In order to comprehensively administer COVID-19 vaccines to populations in all countries and end the pandemic safely, the various vaccines will have to be transported and distributed in a coordinated, multi-modal, affordable, sustainable and reliable manner, via air, sea and land.

Sea freight plays an important role in ensuring the movement of related medical supplies and equipment necessary to carry out mass vaccinations. Some of the newer vaccines in development can also be safely handled by

refrigerated containers (reefers) via sea freight, as they potentially have longer shelf life and require less stringent temperature controls of 2° to 8° Celsius in transit. With active power source onboard vessels and live remote temperature monitoring, thereby ensuring product integrity, visibility and rapid responses to exception management, sea freight will offer a competitive advantage in distributing the much-needed vaccines globally, including to remote regions around the world.

Targeting affordable and equitable vaccine distribution to 20% of the world’s population within 2021, UNICEF plans to distribute around 2 billion doses within the year. As a signatory to the WEF and UNICEF Charter, PSA will offer access to our global infrastructure, logistics knowledge and expertise, as well as on-the-ground assistance in supply chain operations.

Mr Tan Chong Meng, Group CEO of PSA International, said, “In our interconnected and interdependent world, multistakeholder collaboration and action are key. PSA stands alongside our industry partners and stakeholders as we commit to ensuring the wellbeing of the seafarers in our spheres of influence, and to do our part to enable the globally inclusive, safe and sustainable distribution of COVID-19 vaccines.”

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Feb. 3rd - 9th Issue

Report shows seafarers `losing faith’ after a year of COVID-19 crisis Chennai

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Port Wings News Network he latest benchmark Seafarers’ Happiness Index from Mission to Seafarers sounds a dark note as the COVID-19 pandemic and the crew change crisis drag on.

Overall index scores last quarter were up slightly, but individual written responses reveal “a real sense of resignation and antipathy” due to heavy workloads, extended contracts, stress and uncertainty.

According to Mission to Seafarers, many respondents say that they do not feel appreciated or understood by the home office, and they are “losing faith” in the systems designed to protect their wellbeing. The onboard culture on many ships has become cynical, with expectations that things will get worse. Many are afraid to speak out for fear of losing their jobs, while others report that they are quitting the industry altogether out of frustration.

One year into the pandemic, some respondents expressed weariness with the industry’s balance between rhetoric and action on crew change.

“Words are cheap, we need flights home,” one seafarer wrote.

“No one seems happy at all at the moment, and how could they? I am stuck on my ship, it is the hardest time I have ever known, even after 30 years of seagoing,” one respondent wrote. “We do not know when we’ll be relieved, and even if and when we do, then we will be at home perhaps stuck with no work.”

The survey also drew negative

responses about travel and quarantine measures in the COVID era. Seafarers have been particularly affected by travel restrictions, and many nations have set up special testing and pretravel quarantine requirements for their movement. Some seafarers have reported that these measures have resulted in substandard, frustrating and “degrading” treatment in the process.

In addition, hours of rest violations have always been common, but they now appear to be on the rise. Many seafarers reported long hours and altered paperwork to cover it up. “It is normal for us, and everyone knows what goes on. Port State Control never really checks, and never follows up on what we write, so the system keeps on,” one respondent wrote.

Many seafarers also reported that a rush to train up in advance of the IMO 2021 cyber regulations has not been “matched by investment elsewhere,” and that the training is undermined by poor shipboard system security and equipment.

The upside is that some vessel operators have been trying to improve quality of life on board, even when it isn’t possible to carry out a crew change. Better satellite internet access, better food, and better budgets for crew welfare have drawn praise from seafarers who benefit from them. “Small gestures mean a lot, especially in difficult circumstances.

The companies which find the budget for new equipment, or who are able to improve the facilities onboard, gain a huge amount of respect from crew,” Mission to Seafarers wrote.

DP World, UNICEF Announce Global Partnership to Support COVID-19 Vaccination

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Chennai

Port Wings News Network P World and UNICEF have announced a wide-ranging partnership to support the global distribution of COVID-19 vaccines and related immunisation supplies in low- and lower-middle-income countries.

The new partnership - with a multimillion dollar value - is the largest to date to support UNICEF’s lead role in procuring and supplying 2 billion doses of COVID-19 vaccines and auxiliary vaccination supplies on behalf of the COVAX Facility. DP World and UNICEF will also collaborate on other global programs in support of education, health, women’s empowerment and water and sanitation.

DP World, a leader in global end-toend supply chain logistics, will provide UNICEF with logistics solutions and supply-chain expertise. By using DP World’s warehouse facilities in Dubai, UNICEF will have optimized access to many countries. In addition, DP World has committed to leveraging its global logistics infrastructure and services on a pro-bono basis in support of COVID-19 vaccine logistics needs, including transport, port and storage requirements in countries where DP World is present. Dubai is currently used by UNICEF as a strategic hub for prepositioning auxiliary materials needed for the COVID-19 vaccine campaigns, such as syringes and safety boxes.

The partnership was signed by Henrietta Fore, UNICEF Executive Director, and Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World. It arose from UNICEF’s collaboration with the World Economic Forum’s Supply Chain and Transport

Community, of which DP World is a member and explores how the community collectively could support an equitable access to the COVID-19 vaccines globally.

“Distributing COVID-19 vaccines is humanity’s biggest logistics challenge since the end of the Second World War,” said Sultan Ahmed bin Sulayem. “We offer our infrastructure and expertise to support this effort because everyone should have access to vaccines, especially the most vulnerable in our society. Unless the vaccine is available to

all, the pandemic will not end for anyone.”

“The pandemic has turned children’s world upside down, disrupting their education, health and protection,” said UNICEF Executive Director Henrietta Fore. “Vaccines will be a big step towards putting children’s lives back on track. This new partnership will support our collective efforts to ensure equitable, affordable and sustainable access to COVID-19 vaccines”.

Under this partnership, DP World and UNICEF will also collaborate to address logistical bottlenecks hindering children and their families’ access to essential supplies through advocacy and sharing of knowledge and expertise.

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.