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Wednesday, April 14, 2021

8 Pages

The Silent Rise Of India’s Private Ports Mumbai

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Port Wings News Network n August 2020, Karan Adani, chief executive officer of Adani Ports and Special Economic Zone (APSEZ) and scion to the Adani group, informed stock analysts on an earnings call that his flagship port—Mundra, in the gulf of Kutch—had become the busiest port in the country.

After nipping at the heels of its closest competitor for container traffic, JNPT (Jawaharlal Nehru Port Trust) at Navi Mumbai, for the last few years, Mundra finally pulled ahead in the first quarter of FY21, staging a faster recovery from the covid slump than the central government controlled JNPT could.

Changes afoot According to a news report in Mint Online, Adani’s Mundra port is the starkest example of a silent shift in cargo traffic growth from government-run to private ports.

This rebalancing comes at a crucial moment: India has announced a slew of production-linked incentive (PLI) schemes which are expected to give a boost to exports as well as the import of intermediate goods.

The big-ticket goal of doubling India’s gross domestic product (GDP) is also not possible without a significant ramp up in exports.

Thus, if things go according to plan, private ports are uniquely placed to reap a windfall. And one entity stands to benefit more than anyone else: the Adani Group.

India’s port ecosystem is broadly divided into 12 major ports (controlled by the central government via the ministry of ports, shipping and waterways),

a handful that are run as publicprivate partnerships, and countless minor ports, owned

privately or by state governments, which dot the country’s 7,500km long coastline. It is in these smaller, nimbler minor ports that much of the action lies. And the Adani Group has managed—in the span of just a few years— to corner nearly half of India’s minor ports capacity.

The 12 major ports together handle about 55% of India’s cargo every year. However, incremental traffic growth at private ports is happening twice as fast as at these traditional strongholds. Abhishek Nigam, associate director at India Ratings and Research, estimates that over the last five years, volume growth at major ports has been at 0.6 times of real GDP while private ports have grown at 1.3-1.4 times of GDP. He has forecast an 8% y-on-y growth rate in cargo volumes in FY22, led chiefly by private ports.

“Private ports are cannibalising traffic away from major ports,” Nigam told Mint.

“Private operators offer more mechanisation, faster turnaround times and better rail and road connectivity to the hinterland, so customers can evacuate cargo quickly. Major ports take as long as 23 hours sometimes to process imports and up to 77 hours for exports. Private port operators are able to turn around both at under 10 hours.”

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Wing 7 Feather 35

Chennai

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Port Wings News Network ccording to the statistics released by China Ports and Harbors Association, export container volume increased 8.7% while the domestic volume increased 18% File Photo in late March. Among which, the port of NingboZhoushan and Shenzhen posted a growth rate of over 30%.

Cargo throughput at major coastal hub ports increased 8.6% year-on-year while the international trade cargo throughput increased 3.8%.

Crude oil shipments at major coastal ports slightly increased 4.3% year-on-year. The port of Yantai posted a growth rate of over 60% and the port of Tianjin reported a growth rate of over 30%. Port inventory increased

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Port Wings News Network xporters from Europe and the Med will see a sharp drop in container shipping capacity this week due to knock-on effects of the Suez Canal closure, then followed by a spike in capacity.

Exporters from North Europe to

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23.1% year-on-year.

Metal ore shipments at major Chinese ports declined 8.6% while the port inventory increased 6.4%.

Cargo throughput and container volume at the three major Yangtze river ports, Nanjing, Wuhan and

Chongqing, increased 58.1% and 47.6% year-on-year respectively.

In March, major Chinese coastal hub ports’ cargo throughput increased 10.9% comparing with the same period of last year. Container volume at eight major ports increased 14.5%.

N Europe – Asia Exporters Face Near 80% Container Capacity Drop

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Asia are facing a drop in capacity of near 80% this week, analysts Sea Intelligence warned. However, this will then be followed by much higher than usual capacity in the following two weeks.

“But an imminent sharp drop in export capacity will most certainly leave a significant amount of European export cargo stranded in Europe for a week or two until it can be moved,” said Alan Murphy, CEO of SeaIntel.

The impact on the Med – Asia trade will be slightly lower, but still very significant, with exporters Contd. on page -2

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Apr. 14th - 20th, 2021 Issue

N Europe – Asia Exporters Face Near...

Wednesday, April 14, 2021

Wing 7 Feather 35

Light At End of the Pipeline!

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PEC+ shocked the market in early March by keeping production cuts in place. Definitely not what the tanker industry wanted to hear. In typical fashion, it was spun as good news for shipping: Spot-rate pressure would be even worse in the near term, but the pain would end quicker as oil inventories drew down faster.

Shipments to India were the second-most important driver of U.S. crude exports in 2020. These volumes were up 26% year-on-year to 287,000 b/d, representing just under a tenth of the total.

This year, India has emerged as the No. 1 destination for U.S. crude exports, according to Kpler data. India imported an average of 421,000 b/d of U.S. crude in Q1 2021, well above volumes to South Korea — 313,000 b/d — and China, which is down to 295,000 b/d.

The Kpler data reveals that India has made a dramatic change in its crude sourcing, at least temporarily replacing Saudi volumes with U.S. cargoes.

That change is particularly positive for VLCC demand due to the much longer voyage length from the U.S. Over the two-year period covering 2019 and 2020, India imported 3.3 times more crude oil from Saudi Arabia than from the U.S. But over February and March 2021, India has imported slightly more crude from America than from Saudi Arabia. Erik Broekhuizen, manager of marine research at Poten & Partners, highlighted the India factor in a research note last month.

He pointed out that India’s population could surpass China’s as soon as next year, and “even a small change in preferences away from the Middle East towards long-haul suppliers such as the U.S., Brazil or Guyana can have a disproportionate impact on tanker markets because of the ton-mile effect.”

In Q1 2021, Atlantic Basin crude sources represented over 50% of Indian crude imports measured in ton-miles, said Broekhuizen, whereas the Middle East represented just 16%.

OPEC+ surprised the market yet again in early April — this time by finally agreeing to increase production. This is what tanker owners had been hoping and expecting to hear four weeks earlier.

According to Clarkson Platou Securities analysts Frode Mørkedal, the OPEC+ agreement “positions tankers for an earlier recovery than expected” and is “a significant positive for the tanker sector.”

Jefferies analyst Randy Giveans believes that “with oil inventories now in line with the five-year average and demand on the rise … crude tanker rates will improve.” Deutsche Bank analyst Amit Mehrotra predicted “larger and more frequent [production] increases to come.”

OPEC+ production strategy is just one piece of a very complicated puzzle.

Another piece is non-OPEC exports. Particularly long-haul U.S. crude exports to India, as revealed by new data from Kpler provided to American Shipper.

Between OPEC+ and Saudi Arabia individually, production will increase by 600,000 barrels per day (b/d) in May, 700,000 b/d in June and 841,000 b/d in July.

The combined 2.14 million b/d increase will come in the wake of 8 million b/d in cuts. Of that, around 7 million b/d has been cut by OPEC+ since last year and 1 million b/d by Saudi Arabia since the beginning of this year.

The big question is: How much of the May-July increase will actually flow into tankers? The bump-up in production coincides with a time of year when the Middle East consumes more domestically for air conditioning.

Shipments of U.S. crude to Asia are particularly important to VLCCs due to voyage length. It is more than twice as far to China or South Korea from the U.S. Gulf as it is from the Middle East. It is more than eight times as far from the U.S. Gulf to India as it is from the Middle East.

The first quarter of 2021 has been historically bad for the tanker sector.

During the past month, some day rates for VLCCs have been assessed in negative numbers, implying that some ship owners may have paid more for a voyage’s fuel than they received to transport the cargo. VLCC owners are still Sample bleeding money.

Current rates are about half of all-in cash breakeven, which TEXT costs as well as operating expenses. includes financing According to Alphatanker, “Although there may be some upside to tanker rates over the coming months … the anticipated sustainable, strong recovery in hire rates in Q4 2021 may be clipped or delayed, as there will remain a significant oil inventory overhang to be cleared. This overhang would have been significantly smaller had [OPEC+] decided not to hike production.

“Furthermore, the specter of increasing tanker demand in Q2 2021 may see less tankers scrapped than would otherwise have been the case.”

Continued from page -1 expected to see a 60% drop in capacity in the coming week with an equally sharp spike up in capacity following.

On both the North Europe – Asia and Med – Asia trades there was a forecast of reducing waves of impact in the months ahead.

“The most important element

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trade the impact of reduced capacity will be less immediate for exporters coming in the form of blank sailings further out as vessels fail to arrive on time from Europe.

“On Asia-North Europe, the ripples will gradually get larger until they reach a crescendo in week 21 with a 24% drop in capacity,” Murphy said.

CMA CGM Launches First Low-Carbon Shipping Offer By Choosing Biomethane Mumbai

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Port Wings News Network head of the UN Global Compact and as part of the first high-level preparatory talks for the COP26 summit, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, a world leader in shipping and logistics, has put forward solutions that are immediately available and that contribute to achieving the Group’s objective of being carbonneutral by 2050.

BIOMETHANE, A NONFOSSIL ENERGY AND A STEP CLOSER TO CARBONNEUTRAL SHIPPING The CMA CGM Group has reached another milestone in its efforts to be carbon-neutral by 2050, by supporting the production of 12,000 tonnes of biomethane (equivalent to a year’s fuel consumption of two 1,400-TEU ships). Biomethane is a renewable green gas produced in part by the methanation of European-sourced organic and plant waste. This energy source represents a fine example of how the circular economy can work while benefiting the agricultural sector. CMA CGM intends to push ahead with the development of this energy source by investing in biomethane production facilities and studying the viability of liquefaction processes so that biomethane can be rolled out as a shipping fuel.

By supporting biomethane production, CMA CGM is accelerating its commitment to

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is for European exporters to note just how large a drop they will face imminently in export capacity, and plan in accordance with the reality that a sizeable part of the cargo has to wait 1-2 weeks before it is physically possible to get loaded on a vessel going to Asia,” Murphy said.

On the fronthaul Asia – Europe

leading the energy transition in the shipping sector. The Group cut its overall CO2 emissions by 4% in 2020, following a 6% reduction in 2019. Since 2008, the Group has lowered its CO2 emissions per container-kilometer by 49%.

BIOMETHANE POWERING THE EQUIVALENT OF A SHIPPING LINE 12,000 tonnes of guarantee-oforigin (GO) biomethane is enough to fuel the equivalent of two 1,400TEU LNG-powered ships operating on the Northern European Balt3 line between St Petersburg and Rotterdam for a whole year.

Guarantee-of-Origin Biomethane, coupled with CMA CGM’s dual-fuel gas-power technology, can reduce well-to-wake (entire value chain) greenhouse gas emissions (including CO2) by at least 67%. On a tank-to-wake basis (at ship level), the reduction in greenhouse gas emissions reaches 88% (including CO2).

AN UNMATCHED LOWCARBON OFFERING MADE AVAILABLE BY CMA CGM GROUP FOR ITS CUSTOMERS As of May 2021, the Group’s customers will be able to select biomethane via the Act with CMA CGM+ range of services, paving the way for a substantial reduction in the environmental impact of the shipping of their goods.

ACT with CMA CGM+ provides a full range of services designed to enable its customers to analyze, reduce and offset their environmental footprint. CMA CGM will continue

to embrace the latest technological advances to meet the needs of its customers.

CMA CGM, A RESOLUTE AND TANGIBLE COMMITMENT TO THE ENERGY TRANSITION The CMA CGM Group harnesses the most effective technologies available to accelerate the energy transition in the shipping and logistics industry. As it stands, LNG is the optimum solution already available for reducing the carbon footprint of shipping and preserving air quality. It can reduce sulfur dioxide emissions by 99%, particulate matter emissions by 91% and nitrogen oxide emissions by 92%, going well beyond existing standards. By 2022, 32 of the Group’s vessels will be LNGpowered.

The CMA CGM Group is heavily investing in research and development alongside its industrial partners to identify the energy sources of the future with the aim of achieving a positive impact on our customers’ carbon footprint and helping to protect the environment.

On this occasion, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, declared: “We have crossed a new step with the launch of the first low-carbon shipping offer based on biomethane.

We know that there is still a long way to go to meet the commitments of the Paris Agreement. Achieving these goals do not rely on a single solution but on a set of initiatives and new technologies complimentary to each other.”

Arun Sharma Receives Varuna Award Chennai

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Port Wings News Network ndian Register of Shipping (IRClass), an international ship classification society, is delighted to announce that its Executive Chairman, Mr. Arun Sharma, has received India’s most prestigious maritime award, Varuna award, at the 58th edition of National Maritime Day. The nomination for the award was done unanimously by various maritime industry bodies, according to Indian Register of Shipping (IRClass).

This highest maritime honour, instituted by the National Maritime Day Celebrations (“Central Committee”), recognises and honours individuals for their sustained and outstanding contribution to Indian maritime sector, as well as exhibiting strong leadership skills and decision-making that has inspired positive changes to the industry.

A marine engineer with a strong technical and commercial background, Mr. Arun Sharma is currently leading the Indian Register

of Shipping (IRClass). He has held several top management positions with key shipping companies in his career spanning several decades. He was also the Chairman of Strategy Committee of IACS and head of Small Group on Quality Policy (SGQP).

Starting his career with The Shipping Corporation of India, he held senior management roles with Varun Shipping Company, Great Eastern Shipping and India Steamships. He has served on the board of Indian National Shipowners’ Association and on the Asia Committees of leading classification societies.

During his tenure as International Association of Classification Societies (IACS) chairman, Mr. Sharma led the organisation’s rapid response to assist the industry during the pandemic. The first wave of mitigative measures, which included maintaining the validity of certificates and allowing the sharing of IACS members’

exclusive surveyors, were quickly implemented to allow ships to continue operations and hence, facilitating trade.

Mr. Sharma, Executive Chairman of IRClass said: “I am deeply honoured to be recognised by the Committee.

This success can only be achieved with the unwavering commitment and dedication of our team as well as supportive industry organizations.

I am grateful to have the opportunity to contribute in international maritime arena as the Chairman of IACS from 1st Jul 2019 to 30th June 2020 and as the present Vice Chairman.”

“Going forward, we will remain steadfast in our commitment to maritime safety and quality in India and globally. IRClass will continue to grow its footprints across the world with plans to open more offices in the Middle East and Africa. It sees significant growth opportunities there and IRClass sets its sights on building long-term commitment in the region.” Mr. Sharma concluded.

Apr. 14th - 20th, 2021 Issue

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PHDCCI Recommends Reduction in Import Duty on Selected Items in Textile Industry To Make It More Competitive Chennai

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Port Wings News Network he hardships faced by textile industry players during the COVID lockdown influenced a lot of them to diversify in the manufacturing of PPE kits and N95 masks to generate business worth Rs 7000 crores in India which is a testimony of the zeal and tenacity of the textile industry, stated Shri Jogiranjan Panigrahi, Joint Secretary, Textile Infrastructure & Investment, Government of India.

He was speaking at a virtual event on the topic ‘Investment Avenues in India’s Textile and Apparel Industry’ organized by the Industry Affairs Committee of PHD Chamber of Commerce and Industry (PHDCCI).

Speaking at the event, Shri Panigrahi explained that the Indian textile manufacturers have already become the second-largest exporters of PPE kits during the COVID period. He explained that almost 80- 90 percent of the machines used in the textile industry are imported. The imports over the last few years of these machines are valued at Rs 28000 crores. Shri Panigrahi stated that the ministry of Textile has already identified 60-65 machines that can be manufactured domestically and would save crores of rupees to the Indian textile manufacturers.

PRODUCTION LINKED INCENTIVE (PLI) SCHEME According to Shri Panigrahi, initiatives from the central government like the production linked incentive (PLI) scheme and the MITRA program where 7 mega textile parks would be set up over the next three years would result in a huge boost to the domestic textile manufacturers. Also the removal of the anti-dumping duty on the man-made fiber has also resulted in making this segment more competitive, he said.

Shri Upender Kumar Gupta, Deputy Advisor, Niti Aayog explained that India is the secondlargest textile manufacturer after China globally; however, it faces a lot of challenges. He explained that though China’s share in the global textile market amounts to around 34 percent, India’s contribution is just around 3-4 percent.

He revealed that our country is facing competition from countries like Pakistan, Bangladesh and Vietnam due to several factors. He informed that Bangladesh has witnessed a 14 percent CAGR in its textile sector due to the duty-free export grants from the European Union, while India faces a 9.5 percent duty handicap. Also the size of the Indian textile manufacturing unit is very small and is almost one third the average size of a textile manufacturing unit in Bangladesh, so we cannot take the advantage of economies of scale.

According to Shri Gupta, the central government has also taken several structural reforms in the last few years, due to which the textile sector in the country would witness exponential growth in the near future. He added that due to the liberal FDI policy in the country, there has also been a huge foreign inflow to the tune of $323 billion in the year 2019-2020.

Shri Sandeep Aggarwal, Chairman, Industry Affairs Committee, PHDCCI added that India was one of the largest exporters of textile products till the year 1850, however during the British regime, India was forced to import finished textile products from the British mills. The initiatives taken by the central government in the last few years will ensure that India regains its past glory.

He added that the production linked incentive (PLI) scheme

would be a game-changer and would provide a huge boost to the Indian textile sector.

Shri Sharad Jaipuria, Former President, PHDCCI and, Chairman and Managing Director, Ginni International Limited explained

that the domestic textile industry which is currently at the size of $137 billion can reach the figure of $300 billion by the year 2025.

He explains that though China dominates the world textile market, its share is falling due to an increase in its labor cost and decrease in its domestic consumption. Shri Jaipuria explained that India has a huge opportunity to dominate the sector due to its lower cost of labor and its trade relations with other countries.

He adds that India needs to identify states like Maharashtra and Gujarat which have good ports and increase its investments there. This will reduce the cost of logistics and make Indian textile more cost-effective. Shri Jaipuria also explained that the government should take steps to expedite regulatory clearances like setting up single-window clearances so that production time is not lost in unnecessary paperwork.

Shri Vishwanath, Co-Chairman, Industry Affairs Committee, PHDCCI stated that the central government should ensure that Silk and Silk blends should also

Cargo Handling At 12 Major Ports In Country Falls 4.59% To 673 MT In FY21 New Delhi Port Wings News Network it by disruptions caused

by COVID-19, India’s 12 major ports witnessed a 4.59% fall in cargo handling to 672.60 million tonnes (MT) in the just-concluded financial year, according to ports’ apex body Indian Ports Association (IPA), a report in leading daily BusinessLine said.

These ports had handled 705 MT, 699 MT and 679 MT cargo in 2019-20, 2018-19 and 2017-18, respectively. Recently, Minister of State for Ports, Shipping and Waterways Mansukh Mandaviya said the cargo traffic at 12 major ports declined considerably March onwards due to the adverse impact of the COVID-19 pandemic.

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“Percentage variation from previous year” in “traffic handled at major ports during April to March 2021 vis-a-vis April to March 2020” declined 4.59%, the IPA said in its latest report.

In the wake of the pandemic, sharp declines were witnessed in the handling of containers, coal and POL (petroleum, oil and lubricant), among other commodities.

All ports, barring Paradip and Mormugao (which recorded 1.65% and 37.06% increase in cargo handling to 114.54 MT and 21.95 MT, respectively), saw negative growth.

Cargo handling at Kamarajar Port (Ennore) dipped 18.46% during April-March 2021 to 25.88 MT, while ports like Mumbai and V.O. Chidambaranar saw their

cargo volumes dropping by over 10% during the said period. Cochin, New Mangalore and Chennai ports suffered a sharp decline of about 7%.

JNPT saw a decline of 5.32% in cargo volumes, while Deendayal Port Trust and Kolkata ports logged an over-4% drop in cargo volume.

Cargo handling at Visakhapatnam slipped 3.96%.

India has 12 major ports under the control of the central government — Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V.O. Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia). These ports handle about 61% of the country’s total cargo traffic.

be included to be a part of various government schemes like PLI and MITRA. This would ensure revenue generation and additional job creation in the textile industry.

IMPORT DUTY FOR SELECTED ITEMS FOR THE TEXTILE INDUSTRY SHOULD BE BROUGHT DOWN He added that the import duty for selected items for the textile industry should be brought down to the minimum to make it more competitive. Pointing out several loopholes, he stated the government has imposed a duty restriction of 15 percent on silk yarn for countries like China, while the same for Vietnam is zero percent. He added that many Chinese companies are taking advantage of these regulations and are routing their silk yarn through Vietnam to India where it is repacked. The Indian government should take note of this loophole he said.

Shri Mukesh Aggarwal, CoChairman Haryana Committee stated that there are several roadblocks

faced by the industry which the government needs to address.

Firstly, the industry is paying almost Rs 7.5 per for each unit of electricity consumed, the same needs to be brought down to around Rs3.5 or Rs 4 per unit to make manufacturing more competitive.

Secondly, while several industry players are ready to invest in solar power, the government needs to support them so that they can sell it to the local electricity boards as well.

Shri Aggarwal also explained that the government needs to ensure that gas charges for the textile industry are kept fixed for a certain time period. He also informed that the textile industry spends on an average Rs 3-4 crore every year on generators. Shri Aggarwal explained that the industry can save money if the government ensures an uninterrupted power supply to the textile industry.

The event ended with a vote of thanks by Shri Vikram Aggarwal, Co-Chairman, Industry Affairs Committee, PHDCCI.

Accommodative RBI Stance On Interest Rates To Help Sustain Recovery: ASSOCHAM New Delhi Port Wings News Network hile balancing the growth-inflation tradeoff to mitigate the impact of the COVID-19 pandemic, the RBI Monetary Policy Committee’s decision to continue with the accommodative policy stance ‘as long as necessary’ is reassuring to the industry and trade. This decision would also get immense support from a slew of other critical measures announced by the central bank, said ASSOCHAM Secretary General, Mr Deepak Sood.

“As for inflation, we share the RBI’s assessment that the recent softening of the crude oil prices can assuage the input cost pressure.

What stands out in RBI’s credit policy review is that despite a recent surge in coronavirus cases, the outlook for the double-digit growth for FY ‘22 remains intact as the economy is fast learning to live with the health challenge. The largescale roll-out of the vaccination programme is also supporting the economy,” said Mr Sood.

He said a well-coordinated approach being followed by the RBI and the Finance Ministry to deal with the unfolding situation is yielding dividends. This is reflected in the economy holding ground despite the increase in pandemic cases. The optimism stems from a

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nation better prepared to deal with the challenge in terms of health infrastructure.

The ASSOCHAM Secretary General particularly noted the steps enumerated by RBI Governor Mr Shaktikanta Das to ensure domestic financial stability in the wake of volatility in the global financial markets, as was seen in the rising bond yields. The steps announced by RBI through G-SAP operations are quite innovative to bring stability in the yield curve.

The extension of forbearances with regards to NBFCs and permitting entities other than banks like payment platforms to use facilities like RTGS and NEFT would broaden the financial inclusion, which the Financial Inclusion Index would also measure.

Relaxation in the parking of ECB proceeds would provide flexibility to corporates raising resources from the global markets.

Mr Sood said RBI Governor’s assertion that the liquidity would not be tightened should come as an assurance to the financial market participants who recently saw some volatility in the face of rising US bond yields.

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Apr. 14th - 20th, 2021 Issue

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US Ports, Shippers Face Major Fallout From Suez Canal Chaos Chennai Port Wings News Network he mega-container ship Ever Given is finally free. The Suez Canal is unblocked.

Problem solved? Not even close.

The problems for container lines and shippers have just begun. In the U.S. market, East Coast cargo flows will bear the brunt of the fallout, although consequences will be felt nationwide.

Most of the boxes transiting the Suez Canal move from Asia to Europe. But the waterway also handles very significant volumes from Southeast Asia and India to the East Coast.

Asian containers head to the East Coast along one of three competing ocean routes: via the Panama Canal, the Suez Canal or to the West Coast (with cross-country transport by truck or rail). The Panama Canal Authority (ACP) tracks the market share of each route.

The ACP data reveals why the Ever Given accident is so important to U.S. import markets. It shows that almost one in three containers from Asia transits the Suez Canal en route to the East Coast.’

EAST COAST IN CROSSHAIRS In the near term, the Ever Given accident will cause a drop in East Coast imports due to delays from ships tied up in anchorage in the Red Sea or detouring around the Cape of Good Hope. This initial lull will be followed by a surge at the ports as delayed ships arrive.

Simon Sundboell, founder of Copenhagen-based maritime intelligence company eeSea.com, foresees major disruptions ahead.

“The carriers have just lost two weeks of capacity,” he said in an interview with American Shipper immediately following the Ever Given refloating. To get back on track, he predicted that liners will have to skip ports and cancel sailings.

If there’s a silver lining, he said, it’s that looming Suez fallout will not have a direct effect in already beleaguered Los Angeles/Long Beach, where San Pedro Bay is still full of container ships stuck at anchorage.

According to Sundboell, “It’s not like the East Coast ports have had an easy time but they haven’t been hit [by COVID-induced volume surges] as badly as Los Angeles/ Long Beach. And what is happening with the Suez — the impact will be on Asia-Europe and Asia-East Coast. At least it doesn’t impact the West Coast as much.”

SHIPS DELAYED FOR MAJOR SERVICES To gauge East Coast exposure, American Shipper cross-referenced Asia-Suez-East Coast services against announcements on ships at anchor (prior to Monday’s reopening) or rerouted around the Cape of Good Hope. The list implies extensive schedule disruptions: Services: EC4, EC5 (THE Alliance) — Rotation: Taiwan, China, Singapore, Vietnam, NY/ NJ, Norfolk, Charleston, Savannah.

Average vessel capacity: 13,929 twenty-foot equivalent units (TEUs).

YM Mandate at anchor in Red Sea. MOL Maestro at anchor off Port Said, Egypt. ONE Munchen, YM Wellhead, ONE Marvel rerouted around cape.

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TP17 (2M) — China, Hong Kong, Vietnam, Singapore, NY/ NJ, Charleston, Savannah, Miami, Freeport (Texas). Average vessel capacity: 9,093 TEUs. Adrian Maersk at anchor off Port Said. Axel Maersk at anchorage in Red Sea. Maersk Algol and Arnold Maersk rerouted around cape.

TP11 (2M) — Vietnam, Singapore, NY/NJ, Norfolk, Savannah, Freeport (Bahamas). GSL Grania at anchor off Port Said. Maersk Skarstind, Maersk Santana, Maersk Kowloon rerouted around cape.

India America Express/IEX (CMA CGM, Hapag-Lloyd, ONE, OOCL) — India, Egypt, NY/NJ, Norfolk, Charleston, Savannah. Average vessel capacity: 9,513 TEUs. Athenian at anchor off Port Said.

Columbus Jax (Ocean Alliance) — multiple loops, including China, Vietnam, India, Halifax (Nova Scotia), NY/NJ, Norfolk, Charleston, Savannah. Average vessel capacity: 12,456 TEUs. CMA CGM Lyra at anchor off Port Said.

CMA CGM Leo rerouted eastbound around cape.

Indus Express (MSC) — India, Saudi Arabia, Israel, Italy, Spain, NY/NJ, Norfolk, Charleston, Freeport (Bahamas), Houston.

Average vessel size: 8,546 TEUs. MSC Giulia at anchor off Port Said.

Northern Javelin rerouted eastbound around cape.

MECL (Maersk, Sealand) — India, Dubai, Oman, Djibouti, Egypt, Spain, NY/NJ, Norfolk, Charleston, Savannah, Houston.

Average vessel size: 6,363 TEUs. Maersk Denver at anchorage in Red Sea. Maersk Seletar at anchor off Port Said.

MANAGING PORT CONGESTION A key risk to ports in the weeks and months ahead is “vessel bunching,” when ships go off schedule and arrive too close together, filling up anchorages. This will occur at box ports in the wake of the Suez crisis as the canal queue unwinds — first at European ports, then at East Coast ports.

According to Sundboell, “We’re definitely going to see bunching.

But there will be time [the lull before ships start arriving] to clear backlogs. And then, I think we will see a lot of [port] omissions.”

Carriers will unload cargoes for multiple European ports at one port in order to get ships back to Asia quicker, then use feeders or other means to get the boxes to the right port. (This strategy is much easier in Europe than on the East Coast, where there are no intra-U.S. ocean feeder services.)

How carriers manage Asia-Europe port fallout is very important to U.S. shippers because the world’s box equipment is limited. “Not only do you have full cargoes arriving in Europe, there are empty containers that won’t arrive in Asia,” Sundboell said.

For U.S. importers, trans-Pacific container availability has recently improved compared to extreme shortages earlier this year. But new network disruptions could erase that progress. Future trans-Pacific equipment availability will hinge, in part, on how carriers handle the backlog of Europe-bound cargo.

More blank sailings ahead When an event severely disrupts a liner service, the carrier can get back on schedule by “blanking”

(canceling) entire sailings, omitting port calls or deploying “extra loaders” (ships not in the regular service).

The charter market for container ships is largely sold out, meaning that extra loaders can’t cure canal disruptions. “There is no way to find two weeks’ worth of lost capacity now,” noted Sundboell.

What carriers need to do, he believes, is remove sailings. “There will be announced blank sailings or they will remove capacity but will not communicate that as blank sailings, which I would call ‘lost’ sailings,” he explained.

When congestion peaked in Los Angeles/Long Beach, carriers announced a large number of blank sailings in February — despite high demand — to give ships stuck at anchor off California time to catch up. “In terms of what has happened to capacity, this [the canal disruption] is exactly the same thing as the Los Angeles/Long Beach situation,” said Sundboell.

He wonders whether carriers will use the latest disruption to “reset” their services. “This might be what causes them to reset a lot of their services that are perpetually late.

As we say in Denmark, ‘The drop that makes the glass go over.’ The question is whether carriers will get to a point where they can reliably say, ‘The vessel we’re telling you is going to leave in the beginning of July is actually going to leave in the beginning of July.’ As it is now, it’s like a bus network that’s constantly two weeks behind. It makes no sense.

“Schedule reliability could go one of two ways. The carriers could use this as an excuse and say, ‘This is why we are so behind schedule,’ or they could use it to reset schedules, blank sailings and get back on track.”

FREIGHT RATES HIGHER FOR LONGER? Ships far behind schedule, port congestion, container equipment pulled out of position … it all sounds like a recipe for high spot rates.

As of 9 April, Asia-West Coast rates (SONAR: FBXD.CNAW) and Asia-East Coast (SONAR: FBXD.CNAE) were at $5,151 per forty-foot equivalent unit (FEU) and $5,778 per FEU, respectively, according to the Freightos Baltic Daily Index. The former was an alltime high; the latter close to one.

Analysts expect rates to fall in the second half. But as a result of the Suez accident, some now believe rates could stay high. “We think the anticipated normalization of the container market and freight rates will now take longer to materialize,” said Jefferies analyst David Kerstens.

Sundboell made the same point.

“This could prolong the high freight rates. The impression was that Q3 and Q4 might see a weakening. But maybe that’s not going to be the case,” he said.

The Suez accident might also “be used by carriers as an excuse to extend surcharges for another few months or increase them. And when I say ‘excuse,’ is it an excuse? It’s for real,” he said.

But he noted that carriers are wary of increased attention from government regulators. “Carriers are mindful right now that freight rates have been incredibly good to them.

They’ve now filed incredibly good annual results. They are mindful that they can’t press this too much.”

Egypt Says It Won’t Release Ever Given With 25-Member Indian Crew Until Its Owners Pay Compensation Chennai

E

Port Wings News Network gypt has said it won’t release Ever Given, the container ship that blocked the Suez Canal for nearly a week, until its owners pay compensation for damages due to build-up of vessels around the waterway, The Wall Street Journal reported on 9 April.

“We hope for a speedy agreement,” Osama Rabie, chairperson of the Suez Canal Authority, told state television in Egypt. “The minute they agree to compensation, the vessel will be allowed to move.”

On March 31, the Suez Canal authority had said that Egypt will seek compensation worth around $1 billion (nearly 7.47 thousand crore) for the blockage caused by the cargo vessel with 25-member Indian crew.

However, Rabie did not disclose the compensation amount and said that they were in the middle of negotiations, according to Marine Insight.

A spokesperson of Shoei Kisen Kaisha Limited, the Japanese owner of the vessel, said they have not received any claims or lawsuits to seek compensation for damages from the blockage.

The Japanese company has also moved the London High Court to limit liability. The claim names the

ship’s charterer Evergreen Marine Corp as the defendant along with all others who claim damages for the blockage, including the Suez Canal.

Company spokesperson Ryu Murakoshi said that it was “part of the normal process of an insurance claim”, making it clear that the move was not an attempt to target anyone.

Seafarers association and unions have expressed concern about the sailors onboard, who they fear will be trapped for a long time in case of a dispute. “The prospect of them being stuck gives us grave concern,” said Stephen Cotton, the secretarygeneral of the International Transport Workers Federation in London.

The ship is currently at the Great Bitter Lake, outside the canal where investigators are looking into the cause of the grounding.

The 400-metre long cargo vessel Ever Given was set afloat on March 29 evening (Indian time). The ship became jammed diagonally across a southern section of the canal in high winds early on March 18, halting shipping traffic. Authorities lodged a tedious excavation operation, with diggers working to remove parts of the canal’s bank and expand dredging close to the ship’s bow to a depth of 18 metres. At least 369 vessels were waiting to transit the canal when the blockage was cleared.

Mandaviya Holds Meeting To Review Urban Water Transportation Projects for Mumbai New Delhi Port Wings News Network hri Mansukh Mandaviya, Minister of State (I/C) for Ports, Shipping and Waterways, chaired a meeting to review the Urban Water Transportation projects for Mumbai, Maharashtra.

Senior Officials of the Ministry, Chairperson of Mumbai Port and officials of Maharashtra Maritime Board and other stakeholders were present in the meeting.

To promote eco-friendly waterways transportation and reduce the traffic load of crowded Mumbai city roads, 4 new routes for ROPAXferry services and 12 new routes of Water Taxi are planned to be operational by December, 2021.

Currently, ROPAX ((roll-on/ roll-off passenger) service from Bhaucha Dhakka(Ferry Wharf) to Mandwa (Alibag)is successfully operating by reducing the road journey of 110 kmto about 18 km by using waterways, thereby reducing travel time of daily commuters from about 3-4 hours to merely one hour.

After the huge benefits being reaped of this ferry service, similar services are planned to be operational at

S

various other routes in Mumbai.

Opening up of 4 new routes of ROPAX Ferries and 12 routes of Water taxis is going to prove a big boon for daily commuters of Mumbai. It will result in a pollution-free, peaceful and timesaving journey as well as reduce the travel cost and carbon footprint significantly. It would also cater for the requirements of increasing number of tourists and commuters at various stretches of Mumbai city.

Shri Mansukh Mandaviya,

Minister of State (I/C) for Ports, Shipping and Waterways stated that operationalization of new waterways routes is a big step towards Prime Minister Shri Narendra Modi’s vision of harnessing waterways and integrating them with the economic development of the country.It will open up new opportunities and avenues to create an ecosystem and network of such ROPAX services and Water Taxi services at numerous other routes in all coastal states.

Apr. 14th - 20th, 2021 Issue

Even With The Pandemic, Ship Recycling Industry Isn’t Getting Any Respite

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Mumbai

Port Wings News Network ven with the pandemic raging over a year, the ship recycling industry isn’t getting any rest. On the contrary, there’s an increase in the number of ships heading for scrap yards like Alang in Gujarat, according to a report in Business Line.

Alang had an unprecedented time teaching ship last year, having scrapped a staggering 187 vessels. However, the ship recycling yard doesn’t have that much infrastructure to tackle such an exodus of ships sent for recycling. Of the 120 working plots of the shipyard, only 90 have green recycling certificates.

In the 2021 Fiscal Year, the world’s largest ship breaking yard Alang beached 187 which is quite an increase from 202 ships in 2020.

Last year, the COVID-19 lockdown in India delayed some of the work at Alang.

The ship recyclers working here say that they have benefited from the new green recycling policies undertaken by global ship owners.

The International Maritime Organisation set a global standard for ship recycling back in 2009 by signing the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships and India joined this convention. The 90 working plots of Alang which are certified as a green recycling centre are governed by this international convention.

According to Anand Hiremath, Head, Research and Development and Lead Coordinator, Responsible Ship Recycling at Global Marketing Systems, Inc, (GMS), the world’s biggest cash buyer of ships for demolition, Alang got steady business during the pandemic because of this international certified facilities “More than 90 green recycling facilities in Alang is the main reason for this as shipowners with HKC compliant recycling

policies for their end-of-life ships recycled their tonnage in India, as Bangladesh has only one green recycling yard and Pakistan has no green recycling yard till date,” said Anand.

“The 187 ships beached in FY21 would translate into a light displacement tonnage (LDT) of 17,60,641 compared to 16,22,800 LDT in FY20”, revealed Uday Bhatt from the Ship Recycling Industries’ Association (India).

This light tonnage refers to the equipment and machinery which can be sold for their material value and based on which ships are sold for scrapping. This includes the ship’s hull, machinery, equipment, spares and furniture.

As the l o c k d o w n happened, migrants from Uttar Pradesh, Bihar, Jharkhand and Odisha, poured-in in Alang.

These workers form 80% of the people directly employed in Alang.

The ship recycling yard has nearly 20,000 workers.

In the first 5 months of FY21, the industry encountered a slowdown but it gradually picked up the pace between October 2020 and January 2021.

In April and May, Alang beached 4 and 5 ships respectively. However, in October the number rose to 15 and by November it got as many as 19 ships for scrapping. In December and January, the yard scrapped 28 and 26 respectively. Things again went down in February and March when only 12 and 10 ships were recycled.

Of the 187 ships beached in FY21, 41 were containerships. This is 22% of the recycled ships. Low freight rates at the starting of the year sent containerships towards scrap yards. However, things changed quickly as a container shortage tickled the boom in container shipping rates once again.

7% of the beached ships were general cargo ships while chemical tankers and vehicle carriers made 6% each. Tugs were 5% of the beaches ships.

New Mangalore Port, Indian Oil Corporation Sign Agreement For Providing Bunkering Facilities New Mangalore Port Wings News Network ew Mangalore Port Trust on 6 April signed an agreement with Indian Oil Corporation Ltd., Bangalore for providing bunkering Facilities to the ships visiting harbour and ships at anchorage / offshore at the port.

from the Ministry of Ports Waterways & Shipping. Based on the present policy of the Central Government, NMPT initiated action to identify infrastructure projects and found that the bunkering facilities for catering ocean going vessels and coastal vessels etc. if, established in this port will have enough potential since the Port is located on the main Trunk route. Considering the strategic location

NMPT had invited tenders from firms having experience in supplying bunker fuel for the work of “Providing Bunkering Facilities to the ships visiting harbour and ships at anchorage / offshore at New Mangalore Port for a period of Five (05) Years.” Indian Oil Corporation Ltd., Bangalore won the bid H1 by offering highest minimum volume of bunker offered by a firm.

Bunkering is a facility of supplying of fuel for use by ships and includes the shipboard logistics of loading fuel and distributing it among available bunker tanks. The Port had aimed to provide all the required facilities to the shipping community in general and for the port users in particular in a phased manner. NMPT explored the possibilities of improving the facilities in the service sector especially in area of Shipping and in line with the guidelines and directives received

of the port among the international sea routes, it is possible to provide bunkering services to ships within the port area connected to all berths and also those anchored outside the International waters.

The objective was to provide the most appropriate facility from among the resources already available with the Port to serve as a full-fledged bunkering facility, by incorporating the required modifications, to achieve the intended purpose.

After the formal contract agreement, the expected minimum cargo to be handled will be 90,000 MT annually. Dr. A. V. Ramana, Chairman, NMPT witnessed the agreement signing along with Dy. Chairman, senior officers of the Port. Shri. Debabrata Mukherjee, GM – Institutional Business, Shri V. Jagadeeshwara Rao, Manager – Institutional Business were present.

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Memorandum of Understanding signed between IIFF and IMBA

FIEO Requests Maharashtra Government To Allow Private Offices With 25% Staff

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Mumbai

Port Wings News Network ince the exports play a pivotal role in a country’s economy and more so in case of Maharashtra, which is number one state in terms of exports-based ranking, FIEO has requested the state Chief Minister Shri Uddhav Thackeray to allow private offices to be opened with 25% of the sanctioned strength so that necessary support, to run the manufacturing, can be provided for seamless and smooth functioning of factories.

Shri S K Saraf, President, FIEO in his letter to the Chief Minister of Maharashtra has appreciated the proactive decision taken to contain the spread of Covid-19 in the State. Mr. Saraf is confident that increasing vaccination and controlled local lockdowns will help to bring the state’s economy and livelihood back on track.

The exporting units employ millions of workers Units have strict timelines to execute the orders else the same may attract heavy penalties including shifting of such orders to other competing countries. It is, therefore, necessary that the exports sector should be covered in the list of Essential Services so that the entire chain to execute the exports is allowed to function during such lockdowns.

Needless to mention that necessary Covid protocol would be maintained by these units.

While the President, FIEO appreciates the action to allow manufacturing units to operate during the lockdown, it is important to observe that the manufacturing units are supported by their offices which not only manage their inventories but also ensure timeline supply of raw-material, filing of tax return, filing of e-way bills for transportation of goods, managing of outward supplies, etc. If such offices are not allowed to function, it would not be possible to keep manufacturing going.

A related issue is the availability of support services like custom house agents, freight forwarders, offices of shipping lines etc. to provide movement of transportation of goods, which is covered in the list of exempted services. However, a clear instruction to cover such kinds of services needs to be issued so as to avoid subjective interpretation at the field level which may lead to the harassment of the employees working for such support services.

The President has sincerely requested the Hon’ble Chief Minister to look into the issue sympathetically and expeditiously so that the export manufacturing sector continues to provide support to Maharashtra exports as well as its economy.

5

I

Mumbai

Port Wings News Network ndian Institute of Freight Forwarders (IIFF) has announced that recently it has signed the Memorandum of Understanding with International Maritime Business Academy (IMBA) to offer its course IIFF – FIATA Diploma in Logistics, Shipping and Freight Forwarding.

Under the MOU, IMBA will provide IIFF Diploma courses at its institute and on the online mode. This collaboration finds its importance as students from Uttarakhand and other northern parts of India will now be able to attend the quality Diploma course in Logistics, Shipping and Freight Forwarding offered by IIFF. IIFF offers its Diploma program through an online platform, beneficial for students interested in learning about the Freight Forwarding, Logistics and Shipping industry.

Origin of the Institute Indian Institute of Freight Forwarders was founded by Late Shri Mayur C. Contractor who understood the need of a formal training center for developing skills and imbibing professionalism in the Shipping and Freight Forwarding industry.

IIFF is the training arm of the Federation of Freight Forwarders Association in India (FFFAI) and conducts training for sharing knowledge and developing skills since the last decade. IIFF was established in 2005 by FFFAI and is the only authorized institute in India offering an internally recognized course in Freight Forwarding. This course is validated by FIATA, Successful students will get IIFF as well as globally recognized FIATA certificate.

Visit

www.portwings.in for Latest News

6

Vessel Position at Terminals - (14.04.2021 To 21.04.2021)

Apr. 14th - 20th, 2021 Issue

7

CCTL - Chennai ETA

ETD

Service

Vessel Name

16/04

17/04

CCG

17/04

18/04

17/04

18/04

Voy

Kattupalli

Agent/Line

Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

MESSINI

SIM

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

14/04

15/04

ACS

HYUNDAI PRIVILEGE

078W

HMM

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

PIC-1

SSL MUMBAI

SHR

COLOMBO, TUTICORIN, COCHIN

14/04

15/04

IVK

ASIATIC KING

5

GOL

CCG

SOLBARA

SIM

COLOMBO

15/04

16/04

CCG

VARADA

35

SIM

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

16/04

17/04

ACS

HYUNDAI DUBAI

006W

HMM

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

17/04

18/04

TCX

X PRESS JERSEY

20016W

SCA

Port Kelang(North port) – Singapore,Shangha

17/04

18/04

TCX

VERMONT TRADER

019W

RCF

Port Kelang(North port) – Singapore,Shangha

19/04

20/04

C13

ATHENS BRIDGE

116

ONE

Tuticorin,cochin,Pipava, Kandla,Jebel ali

21/04

22/04

CCG

MESSINI

113W

EMC

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

CITPL - Chennai ETA

ETD

Service

Vessel Name

16/04

17/04

TCXNEW

17/04

18/04

15/04

16/04

Voy

Agent/Line

Calling Ports

VERMONT TRADER

RCF

Port Kelang(North port), Singapore, Shanghai

TCXNEW

XPRESS JERSEY

SCM

Port Kelang(North port), Singapore, Shanghai

MD1

TRF KAYA

BTL

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

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin

Kakinada Container Terminal

14/04

15/04

CTS

MV.KAPTIAN MASLOV

119S

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

15/04

16/04

TUX

MV.OEL SHRAVAN

21123

TWF

COLOMBO, TUTICORIN, COLOMBO

15/04

16/04

KAK>COK

16/04

17/04

BOX

MV.XPRESS COTOPAXI 21029S

BTL

COLOMBO, TUTICORIN, COLOMBO

19/04

20/04 21/04

18/04

CTS

MV.KAPTIAN MASLOV

120S

FAR SHIPPING

COLOMBO, TUTICORIN, COLOMBO

20/04

17/04 18/04

19/04

TUX

MV.OEL SHRAVAN

21124

TWF

COLOMBO, TUTICORIN, COLOMBO

NSICT - Mumbai ETA

ETD

Service

Vessel Name

14/04

15/04

BLUENILE

MERKUR ARCHIPELAGO

MSK

15/04

16/04

ADHOC

TIM S

SMM

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

15/04

16/04

MIDAS

AS CHRISTINA

CCA

Nhava Sheva, Mundra, Port Qasim, Singapore

16/04

17/04

AIM

XPRESS KARAKORAM

HLI

16/04

17/04

IPAK

MSC PINA

MSC

17/04

18/04

BMM

INTER SYDNEY

EMS

17/04

18/04

MWE

SPHENE

MSK

19/04

20/04

IEX

BEA SCHULTE

SBG

Colombo,Damietta Piraes Rotterdam, London

20/04

21/04

ME2

OAKLAND

MSK

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

20/04

21/04

MESAWA

Voy

BERMUDA

Agent/Line

CCA

Calling Ports

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

APM Terminal - Mumbai ETA

ETD

Service

Vessel Name

13/04

14/04

CIX3

18/04

19/04

17/04

Voy

Agent/Line

Calling Ports

OOCL HAMBURG

OCL

Jebel Ali, Mundra,Hazira,Nhava Sheva

MINA

XIN YAN TIAN

COS

Jebel Ali, Mundra,Hazira,Nhava Sheva

18/04

ME3

MAERSK KALMAR

MAE

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

16/04

17/04

FM3

LISA

MSK

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

17/04

18/04

CIX

GREEN HARMONY

HLI

Jebel Ali, Mundra,Hazira,Nhava Sheva

19/04

20/04

CIX3

BALTIC WEST

GLD

Jebel Ali, Mundra,Hazira,Nhava Sheva

16/04

17/04

TIP

HANSA RENDSBURG

WHI

15/04

16/04

ASX

NAGOYA TOWER

TWF

17/04

18/04

TIP

MOL GRANDEUR

ONE

17/04

18/04

TIP

MOL GENEROSITY

ONE

Jebel Ali, Mundra,Hazira,Nhava Sheva

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.

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

SSL KUTCH

IMPERIAL

PRT>KAK>COK

KAK>CMB

OEL INDIA

SAMSARA

Halida,Colombo

KAK>CMB

RHL AURORA

SAMSARA

Halida,Colombo

VCTPL, Vizag ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

14/04

15/04

CVK

MSC HINA

SV114R

MSC

16/04

17/04

FME

KMTC MUNDRA

2102E

BTL

Port Kelang(North port) – Singapore, Shanghai

17/04

18/04

MDM

TRF KAYA

1715E

EGI

Colombo

19/04

20/04

CVK

MSC JANIS 3

SV113R

MSC

19/04

20/04

FME

XIN TIAN JIN

066E

COS

Port Kelang(North port) – Singapore, Shanghai

20/04

21/04

ECX

SSL KUTCH

211

SSL

Haldia, Paradip

21/04

22/04

CHX

MAERSK EUPHRATES

114W

MSK

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

HAFEET Inauguration Marks Fruitful Partnership between Emirates Steel and SAFEEN Group in Transshipment Services

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Chennai

Port Wings News Network mirates Steel, the leading integrated steel producer in the Middle East, and SAFEEN Group, the marine service arm of Abu Dhabi Ports, both part of ADQ, have announced the commencement of transshipment operations, as part of a 10-year agreement previously signed between the two parties in 2019.

As per the agreement, SAFEEN will work closely with Emirates Steel to provide short marine shipping services for three shipments of iron ore per month and will be responsible for the purchase, rental, delivery, operation and maintenance of cargo ships, trailers, and unloading equipment for the premier steel manufacturer.

Serving as the company’s latest venture into the transshipment business vertical, and as one of the largest active transshipment agreements (by volume) within the Arabian Gulf region, the contract will be delivered via a converted Post-Panamax bulk — the largest bulk commercial vessel ever registered under the UAE flag — along with three selfpropelled and self-discharging barges, and a wide range of marine assets such as tugs and speed boats.

The four vessels will work closely together to discharge and transship cargo arriving from mother vessels, which will vary in size up to Newcastlemax class, and will then safely transport and discharge the raw materials from anchorage to Emirates Steel’s jetty in Musaffah.

Engineer Saeed Ghumran Al Remeithi, CEO of Emirates Steel, said: “This memorable

moment demonstrates Emirates Steel drive for strategic alliances, especially within the context of our own commitment to supporting the cooperation between home-grown entities.

We are confident that our collaboration with Abu Dhabi Ports will leverage the full capabilities of SAFEEN’s transshipment fleet. Through the launch of HAFEET, we have ensured the best logistical and shipping services to receive over 5 million tons of our raw materials (equivalent to 75-football pitches) in a yearly basis as efficiently and effectively as possible.

“I am very excited about Emirates Steel future developments and expansions plans, which will contribute to supporting the economy of Abu Dhabi, and I hope today’s significant milestone is only the first step towards more cooperation and synergy between Emirates Steel and Abu Dhabi Ports.”

Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “Working in close collaboration with our valued partner Emirates Steel has enabled us to not only make certain that the start of our transshipment operation falls in line with their logistical requirements, but also ensures that SAFEEN’s first foray into this new vertical is a successful one and representative of the integrated and comprehensive capabilities offered by the wider Abu Dhabi Ports group.

The three self-propelled barges attached the contract have also been modified specifically to meet the requirements of the operation.

In addition to featuring self-discharging capabilities, the barges have been customised to easily transport iron ore cargo.

Apr. 14th - 20th, 2021 Issue

DP World To Upgrade Southampton Facility Ahead Of Freeport Status Chennai Port Wings News Network P World has announced that this year it will invest £40m in a major programme of improvements to its container terminal in Southampton.

The plan for the UK’s second largest box terminal is with a view to taking DP World Southampton “to the next level as a premier international freight and logistics hub.” The investment will take place ahead of the Solent region - combining the neighbouring ports of Southampton and Portsmouth – beginning operations as a ‘Freeport’, a move expected to happen later this year.

The new infrastructure investment includes: • Dredging and widening of berths to ensure DP World Southampton will be able to continue to accommodate the world’s biggest ships, a project already started earlier this year in partnership with port landlord Associated British Ports; The plan for the UK’s second largest box terminal is with a view to taking DP World Southampton “to the next level as a premier international freight and logistics hub.”

The investment will take place

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ahead of the Solent region - combining the neighbouring ports of Southampton and Portsmouth – beginning operations as a ‘Freeport’, a move expected to happen later this year.

• £10m investment in a new class of 11 hybrid straddle carriers consuming up to 40% less fuel than the existing diesel-electric ones; • A planned £3m investment in the redevelopment of the yard for the storage and delivery of customers’ empty containers, thereby increasing capacity by 25%; • Creation of a new Border Control Post (BCP), including UK Border Force and port health inspection facilities, to enable multiple government agencies to expedite checks on cargo entering the country; and • Extension of a quay crane rail by 120 m to ensure that the world’s biggest cranes can service all berths at the terminal, accompanied by relocation or decommissioning of other quay cranes.

“This £40m programme of investment will ensure that our Southampton terminal continues to grow as a major freight and logistics hub,” said Ernst Schulze, chief executive of DP World in the UK. “We are already seeing a surge of

interest from companies which want to take advantage of the customs zone and tax benefits resulting from Southampton and London Gateway becoming Freeports.”

Improvements to the container terminal are also expected to ease the congestion that Southampton, like many ports around the world, has been experiencing as the world tries to catch up from the effects of the pandemic – exacerbated in the UK’s case by the need for greater paperwork and inspections following Brexit.

Indeed, Freeports forms a central plank of the UK Government’s postBrexit economic strategy to boost trade and create new jobs. Intended to focus on green technologies, will receive exemptions from tariffs on goods that are imported, altered and re-exported without entering the rest of the UK, as well as tax incentives in areas such as employers’ tax contributions and property development.

Locations chosen for an initial eight freeports, expected to start operating later this year, are: East Midlands Airport, Felixstowe/ Harwich, Humber region, Liverpool region, Plymouth, Solent/Southampton, Thames (including DP World London Gateway), and Teesside, the UK government announced in early March.

BIMCO Says Containership Orders Reach High With Focus On ULCS Chennai

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Port Wings News Network onstruction orders for new containerships are at a high, setting new records in March and highlighting the confidence of the shipping industry. The industry trade group BIMCO is highlighting the order book as its “number of the week.”

BIMCO reports that in March, orders for 45 Ultra-large containerships (15,000 and above TEU capacity) were placed, breaking a record. In addition, they report that an additional 27 orders for smaller sized ships were placed in the same month, bringing the total to 866,060 TEU on order worldwide. BIMCO’s Chief Shipping Analyst Peter Sand believes this indicates a turnaround for the container shipping sector.

The turnaround for the container shipping sector offers a glimpse of the level of confidence currently seen in the business on behalf of owners as well as investors says BIMCO. For all of 2020, a total of 995,000 TEU of container shipping capacity was ordered. Capacity

ordered in the first quarter of 2021 has already reached 1,398,000 TEU, a six-year-high compared to previous full years.

“The industry is keen on benefitting from the economies of scale that ultra-large containerships have to offer if you carry payloads close to its cargo carrying capacity,” says Sand.

“The mammoth size of some containerships was questioned many times during the recent six days of the Suez Canal blockage, as some saw it as an omen of ships becoming too large, compromising supply chain reliability, navigational excellence, and safety,” Sand says. “But as I said at the time, you should not expect much change on that account, as Ultra-Large containerships are the preferred choice of ‘weapon’ in the arms race of the container shipping industry seeking to improve long-term profitability.”

He, however, is also highlighting an interesting anomaly in the market bucking the trend where people believe that the lines would be solely investing in the largest vessels. Sand points out in October

and December 2020, orders placed were almost exclusively for ships with a maximum capacity of 23,000 to 24,000 TEU, with only four out of 23 orders for ULCS below that range.

Included in this were the competing orders from ONE and Hapag who each reported they had ordered the world’s largest containerships. ONE said it would order six vessels with a capacity greater than 24,000 TEU just days after Hapag said it would order six vessels with a capacity of 23,500 TEU. Sand highlights that while there has been a significant number of construction orders in 2021 for containerships, the lines are mostly been investing in which is emerging as the mid-sized boxship. According to BIMCO, so far in 2021, only four out of 81 orders for ships with a capacity of at least 11,800 TEU were for ships larger than 15,500 TEU. Seaspan, for example, which has ordered a total of 37 containerships, has 35 of them in the range between 12,000 and 15,500 TEU and only two Ultra-Large 24,000 TEU vessels.

Cut The Debt Of Poor Countries, Pope Tells IMF, World Bank Chennai

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Port Wings News Network ope Francis has told world financial chiefs that poor countries hit by the economic impact of the coronavirus need to have their debt burden reduced and be given a greater say in global decision making.

In a letter to the participants of the International Monetary Fund and World Bank’s annual spring meeting, the pope said the pandemic had forced the world to come to terms with interrelated socioeconomic, ecological, and political crises.

“The notion of recovery cannot be content to a return to an unequal and unsustainable model of economic and social life, where a tiny minority

of the world’s population owns half of its wealth,” the pontiff said in the letter dated April 4.

He called for a new “global plan” that “necessarily means giving poorer and less developed nations an effective share in decisionmaking and facilitating access to the international market.”

A spirit of global solidarity “demands at the least a significant reduction in the debt burden of the poorest nations, which has been exacerbated by the pandemic,” he said.

Financial chiefs of the Group of 20 large economies on Wednesday extended a suspension of debt servicing costs for developing countries but fell short of

cancelling debt or expanding debt relief as requested by non-profit organisations.

Financial markets need to be underpinned by laws and regulations that ensure they work for the common good, the pope said, calling for “a justly financed vaccine solidarity.”

“We cannot allow the law of the marketplace to take precedence over the law of love and the health of all,” he said.

With inoculation campaigns in poor African countries lagging far behind those of the rich world, particularly the United States and Britain, the pope appealed to political and business leaders to provide “vaccines for all, especially for the most vulnerable and needy.”

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NEWS - BITS New ICS Guidance On Maritime Security Launched

As recent news reports highlight, the shipping industry continues to face threats such as piracy, kidnapping and terrorism. Ship operators need to stay alert to security risks and recognise that threats are continually evolving and demand constant vigilance.

To assist the shipping community in preparing for these challenges the International Chamber of Shipping has launched the first edition of Maritime Security: A Comprehensive Guide for Shipowners, Seafarers and Administrations.

Providing a comprehensive guide to maritime security, the publication draws on over twenty years’ experience of the growing security threats faced by shipping. It sets out the security threats faced by the shipping industry today, the statutory requirements that ships, shipping companies and port facilities must meet, and provides guidance on how to conduct a thorough threat assessment for a voyage. A model ship security plan is also provided along with guidance on how to complete it in accordance with statutory requirements.

Maritime Security: A Comprehensive Guide for Shipowners, Seafarers and Administrations has been written for ship and terminal operators, seafarers and administrations, but will also provide a useful entry point to the subject for anyone with an interest in maintaining the security of global trade.

Port Of Liepaja Throughput In 3M’2021 Declined By 1.3% Y-O-Y

In January-March 2021, freight volume handled in the Port of Liepaja, Latvia declined by 1.3%, year-on-year, to 1.56 million tonnes, the Port Authority told IAA PortNews.

In the reporting period, handling of grain and cereal products fell by 9.5% to 576,400 tonnes, handling of anthracite – by 60% to 28,800 tonnes, handling of building materials fell by 13.3% to 122,100 tonnes, handling of oil products dropped by 6.4% to 130,400 tonnes.

Handling of Ro-Ro cargo rose by 25% to 12,806 units, container throughput grew 1.8 times to 2,345 TEUs. In the reporting period, the port serviced 7,576 passengers, up 4%, year-on-year. The number of calls fell by 7% to 384 calls.

Port of Liepaja was founded in the 90s of last century at the former Soviet Union’s naval base. Liepaja ranks third port of Latvia by handled cargo volume. Half of the port’s cargo throughput is fueled by crude oil and bulk cargoes imported from the CIS countries, largely from Belorussia. In 2020, throughput of Liepaja port was 6.6 million tonnes

Aker Arctic Completes Full Scale Ice Trials Of Icebreaking Bow Saimaa And Tug Calypso

In late March, Aker Arctic conduced full-scale ice trials for the selfpropelled detachable icebreaking bow Saimaa and pusher tug Calypso.

According to the company’s press release, the test program was successfully completed in co-operation with Turku Repair Yard, the Finnish Transport Infrastructure Agency, Alfons Håkans and Danfoss in sunny spring weather shortly after the Saimaa Canal had been opened for traffic after the annual winter closure. Aker Arctic’s scope of work included vessel instrumentation, ice property measurements, performance trials, analysis and reporting.

During the ice trials, the Ice Load Monitoring System (ILMS) delivered by Aker Arctic provided valuable information in form of realtime thrust and torque data from all four propellers of the combination. In addition, the connector pins used to couple Saimaa and Calypso are also instrumented and connected to the ILMS. The world’s first self-propelled detachable icebreaking bow Saimaa was built by Turku Repair Yard and delivered to the Finnish Transport Infrastructure Agency in December 2020. In addition to the ILMS system, Aker Arctic also designed and delivered two complete 600 kW shaft lines to the detachable icebreaking bow and ice-strengthened bronze propellers to the tugboat. The concept’s ice model tests were also conducted at Aker Arctic’s ice laboratory

CUSTOMS EXCHANGE RATES Notification No.40/2021 (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 2nd Apr. 2021

RATE (INR) Import Export 57.10 200.70 59.25 11.35 11.80 87.65 9.60 250.45 52.60 8.75 102.70 20.80 20.20 55.50 5.10 8.55 79.35 9.05 20.60 74.15 67.55 6.70

54.70 188.35 57.15 11.00 11.35 84.55 9.25 234.75 50.25 8.45 99.25 19.50 18.95 53.60 4.80 8.25 76.25 8.55 19.35 72.45 65.05 6.30

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

Apr. 14th - 20th, 2021 Issue

Seably Introduces KARCO and its Pioneering 3D Animated Online Marine Courses Chennai

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Port Wings News Network eably introduces KARCO and its pioneering 3D Animated Online Marine Courses the global online marketplace for bespoke maritime training is expanding its library of online maritime training courses through a new global partnership with KARCO, the India based innovative and leading of 3D animated online marine courses.

KARCO is an acknowledged pioneer in 3D animated safety and operation videos and provide creative training solutions for the marine industry. This partnership will add over 50 online courses based on animated safety videos to the content already available as part of a Seably subscription package. This dynamic element also introduces another aspect of effective e-learning available for seafarers on the Seably platform.

Seably was created by seafarers for seafarers. It is the first maritime digital marketplace that brings together specialised content, leading technology and teaching skills from seafarers, educationalists, industry specialists, insurers, surveyors and a whole range of other related service providers.

KARCO started developing their use of animation for the maritime industry in 2007, when they created the first fully 3D animated marine safety video. Part of the KARCO Group of Companies in India, they have built a unique development

tool for communicating training concepts to seafarers globally.

3D animation brings images to life using a digital three-dimensional display of images which add a realistic, and at the same time engaging and immersive experience.

In training, it is considered a powerful learning tool, as it can help all learners to easily conquer new and complex knowledge. The vivid and attractive representations bring to life personal marine casualty incidents which cannot be captured by live video. At the same time, the

easy-to-follow graphics facilitate a clear and detailed understanding of hazardous situations which also eliminate the challenges typically brought about by different languages and cultures.

KARCO 3D animated courses cover quality safety training and certification in topics such as pilot ladder and static electricity on tankers, and will be available for Seably subscribers from April 2021 onwards.

Capt. Tim Fenech, Head of

Course Development at Seably said, “The use of creative e-learning tools such as 3D animation place us firmly at the forefront of maritime training globally. The Seably marketplace already provides free and affordable access to the latest training on a high-tech medium providing leading, real-life learning that can be carried out at any place. This is another unique opportunity for ship owners to ensure their crew are equipped and trained to handle reallife working situations, coping with environments that are hazardous in the open sea, but safely handled within an enhanced training experience that can be easily offered virtually, anywhere.”

Capt. Praveshchand Diwan, Director at KARCO confirmed the importance of this partnership, saying, “We are delighted to have our content on the Seably platform. At KARCO, we provide training that appeals to the current generation of seafarers as it projects a fresh perspective which aids the learning process. This is a concept that we pioneered more than a decade ago and is still effective and sought after today by seafarers and shipping companies globally.”

The KARCO 3D animated courses demonstrates Seably’s commitment to bringing affordable online and virtual training to anyone connected with this vital global sector. Andrea Lodolo, CEO of Swedish-owned Seably marketplace said, “With KARCO on board as

a content provider, this is another key waypoint for Seably. KARCO are well-known for their quality, detailed 3D animations which can clarify tricky concepts or complex processes. This enriches the effective and immersive e-learning which

we are delivering to the maritime industry through our marketplace.

They are also crucial elements in learning and help us maintain the high level of specialised knowledge required at sea to ensure safety and minimise risks.”

Suez Canal Authority Contemplates Changes After Ever Given Grounding Chennai

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Port Wings News Network he Suez Canal Authority is contemplating the possibility of widening the southern section of the waterway, the agency’s chairman told Reuters.

The canal is a critical maritime chokepoint, and last month’s boxship grounding showed a unique vulnerability: the 400-meter-long Ever Given straddled the canal’s entire width, halting all traffic for six days and stalling the movement of tens of billions of dollars’ worth of goods. In an interview, SCA chairman Osama Rabie suggested that the authority might widen the waterway to a dimension equal to the length of its largest permitted vessels (400 meters).

“Our procedures are sound, we are just aiming to improve the service,” SCA chairman Osama Rabie told Reuters. “If there is a 250-meter part that needs expansion, maybe

we will make it 400 meters.” SCA may also consider buying new tugs with more pulling power, like the privately-operated anchor handlers that salvors called in to remove Ever Given. Groundings in the canal are a periodic occurence, but rarely result in a major disruption.

On Tuesday, two vessels in a northbound convoy briefly went aground in the canal’s southern section, according to shipping agency GAC. The cause was a loss of power aboard the tanker Rumford, the agency said, and the tanker behind Rumford grounded as well.

The incident briefly delayed four additional vessels that were located behind Rumford in the convoy. Both tankers were quickly refloated with tug assistance and traffic carried on with minimal interference, GAC said. As of Wednesday morning, Rumford had exited the north end of the canal and was under way in the Mediterranean.

Air Cargo Demand Up 9% in February Compared to Pre-COVID Levels: IATA

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Port Wings News Network he International Air Transport Association (IATA) released February 2021 data for global air cargo markets showing that air cargo demand continued to outperform pre-COVID levels with demand up 9% over February 2019. February demand also showed strong month-on-month growth over January 2021 levels. Volumes have now returned to 2018 levels seen prior to the US-China trade war.

Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted all comparisons to follow are to February 2019 which followed a normal demand pattern.

Global demand, measured in cargo tonne-kilometers (CTKs*), was up 9% compared to February 2019 and +1.5% compared to January 2021. All regions except for Latin America saw an improvement in air cargo demand compared to pre-COVID levels and North America and Africa were the strongest performers.

The recovery in global capacity, measured in available cargo tonne-kilometers (ACTKs), stalled owing to new capacity cuts on the passenger side as governments tightened travel restrictions due to the recent spike in COVID-19 cases. Capacity shrank 14.9% compared to February 2019.

The operating conditions remain supportive for air cargo: Conditions in the manufacturing sector are robust despite the recent spike in COVID-19 outbreaks. The global manufacturing Purchasing Managers’ Index (PMI) was at 53.9 in February. Results above 50 indicate manufacturing growth versus the prior month.

The new export orders component of the manufacturing PMI – a leading indicator of air cargo demand– picked up compared to January.

Supply chain disruptions and the resulting delivery delays have led to long supplier delivery times – the second longest in the history of the manufacturing PMI. This File Photo

typically means manufacturers use air transport, which is quicker, to recover time lost during the production process.

The level of inventories remains relatively low compared to sales volumes. Historically, this has meant that businesses had to quickly refill their stocks, for which they also used air cargo.

“Air cargo demand is not just recovering from the COVID-19 crisis, it is growing. With demand at 9% above pre-crisis levels (Feb 2019), one of the main challenges for air cargo is finding sufficient capacity. This makes cargo yields a bright spot in an otherwise bleak industry situation. It also highlights the need for clarity on government plans for a safe industry restart. Understanding how passenger demand could recover will indicate how much belly capacity will be available for air cargo.

Being able to efficiently plan that into air cargo operations will be a key element for overall recovery,” said Willie Walsh, IATA’s Director General.

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