Port Wings Maritime Exim Weekly e-Paper

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Sep. 15th - 21st, 2021 Issue

Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, September 15, 2021 12 Pages

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Wing 8 Feather 5

Special Edition

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Sep. 15th - 21st, 2021 Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741 Wednesday, September 15, 2021 12 Pages

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Wing 8 Feather 5

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Centre and States must work as Team India for long-term revival of economy: Vice President Chennai

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Port Wings News Network he Centre and States should work in a Team India spirit for the long-term revival of the economy and steer India to greater heights in all spheres, Shri M Venkaiah Naidu, Vice President, has said.

Speaking at the Platinum Jubilee Celebrations of the Hindustan Chamber of Commerce on 11 September, Shri M Venkaiah Naidu expressed his happiness that the Centre and various States are creating a conducive atmosphere for foreign investment. In the fiscal year 2021, the total FDI inflows stood at US $ 81.72 billion, which is a 10% year-on-year increase, he added.

He also stressed that promoting Public-Private-Partnership in different sectors, including infrastructure, health and education was vital to propel economic growth.

Referring to COVID-19 and its impact, he said that even though

the second wave has slowed down the revival, the Indian economy has turned around and is firmly set on the path to recovery. Thanks to a series of timely measures and policy

reforms initiated by the government, the economic situation has been improving gradually, Shri Naidu added.

On this occasion, the Vice President appealed to the citizens to get vaccinated for COVID-19,

calling it their ‘Pavitra Kartavya’ or responsibility towards their family, community and the nation. He also called upon private players to join the efforts of the government in bringing m e d i c a l infrastructure and facilities accessible to people in remote and rural areas.

S t a t i n g that India stands poised on the cusp of economic transition, he said all indicators point to a long-term phase of growth and recovery in the coming months. Based on different markers, the RBI has retained the growth projection of 9.5 per cent for 2021-22.

Driven by strong macro-

economic fundamentals, forwardlooking reforms, opening up of FDI and improving the ease of doing business, the Indian economy has the potential to reach the US$ 5 trillion mark in the coming years, the Vice President observed.

Observing that India is blessed with a huge population of educated, talented youth and a vast pool of scientific manpower, Shri Naidu said there has to be a greater focus on creating the right ecosystem for innovation to thrive by enhancing investments in R & D. In this context, he wanted the public sector and the private entities to join hands. He advised bodies like the Hindustan Chamber of Commerce (HCC) to play a proactive role in facilitating such tie-ups.

Shri Naidu suggested that trade bodies and business community should evolve a common code of conduct for their members and weed out black sheep who bring a bad Contd. on page -4

Thanks its Readers, Advertisers and Well Wishers for their support on 7th Anniversary Paradip Port Trust aims...

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The World’s Shippers Are...

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Sep. 15th - 21st, 2021 Issue

Centre and States must work as Team India...

Wednesday, September 15, 2021

Wing 8 Feather 5

Ship Owners Take a Break

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ctivity in the newbuilding and S&P markets has been rather dull during the past week, as the summer lull is gradually coming to an end. Additionally, asset valuations have increased considerably over the course of the past few weeks, with the market needing some time to catch up, according to a recent Allied Shipbroking report.

In its latest weekly report, shipbroker Allied Shipbroking said that it was “a relatively quiet week was noted in the dry bulk newbuilding market with few businesses circulated.

In particular, there was an order for 3 Capesizes and another for 3 Ultramaxes, a fair drop in activity compared to previous weeks. Newbuilding prices seem to have stabilized as of late, albeit they are still considered relatively high, given that they have reached levels not seen for at least a decade. This seems to have trimmed some appetite.

However, the robust sentiment and the persisting record freight earnings are expected to retain activity moving forward. In the tanker market, the lack of activity for yet another week has been of little surprise. The uninspiring fundamentals and poor sentiment still prevails and this reality is unlikely to show a swift change right now.

Adding more on the inactivity noted in the year so far, newbuilding prices have firmed considerably in the year so far, trimming possible buying interest further.

Finally, the impressive containership market continues to attract a fair amount of attention from buyers.

This was clearly apparent last week as 17 new units were added to the orderbook. The positive momentum in the segment is likely to hold, given the robust demand and the strong confidence levels being noted”, Allied noted.

In a separate report this week, shipbroker Banchero Costa said that “in the container market, it was reported Hyundai has received an order for 8+4 optional container vessel (abt 16,000 teu) from Maersk. Vessel to be methanol fuelled. All firm 8 units to be delivered during 2024 and options during 2025.

Vessels to be priced at $175 mln each.

Furthermore, Seaspan Corporation placed an order in China for 24x 7,000 teu wide beam feeders ten of whom will be dual fuel and 14 conventional fuel. Vessels to be built at Jiangnan, Hudong, SWS and Shanaiguan. Vessels will be delivered starting from 2024 and have secured long term TC with Maersk and Hapag Lloyd. In the gas segment, one very large LNG carrier (abt 174k cbm) was added by Celsius Shipping at Samsung with delivery during mid 2024 .

Meanwhile, in the S&P market this week, Allied added that “on the dry bulk side, a setback was noted in terms of activity as fewer units changed hands this past week. However, sentiment remains robust in the sector and freight earnings are even more attractive. Therefore, we expect that last week’s reduced interest is temporary, despite the fact that the firm secondhand asset prices may well be curbing some of the buying appetite.

The focus in the year so far has mainly been on Kamsarmax and Ultramax units, a trend that is anticipated to continue over the coming weeks. On the tanker’s side, the disappointing fundamentals have trimmed interest from buyers.

Despite the fact that we are noting only sporadic deals taking place, as part of aSample bargain hunting strategy from potential buyers, confidence in TEXT this sector remains weak and thus the expectation is for subdued activity to emerge in the coming weeks. Adding to this the fact that asset prices are still relatively high and you start to see why things are set to remain subdued”, the shipbroker concluded.

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In the dry segment, the market trend keeps moving up with both prices and rates. It will be interesting to see what is going to happen over the next few weeks as we are getting through the peaks day- by -day.

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

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Continued from page -1 name to the entire corporate and business fraternity.

The Vice President also wanted bodies like Hindustan Chamber of Commerce to take up training and upskilling of youth and ensure that they not only become employable but also are capable of self-employment. “They should be imparted the required skills and knowledge to become job creators rather than job seekers”, he added.

Referring to the recent statement of Tamil Naidu Chief Minister, M K Stalin on the need to rewrite history, the Vice President said that the history of the Indian sub-

continent must be rewritten with an Indian perspective and not through a colonial lens.

Lauding the talented, skilled and hardworking people of Tamil Nadu, he said that Tamil Nadu is an attractive place for investments with a stable and investor-friendly

government; good connectivity and infrastructure.

Shri Banwarilal Purohit, Hon’ble Governor of Tamil Nadu, Punjab & Administrator of Chandigarh, Shri L. Ganesan, Hon’ble Governor of Manipur, Shri K.K.S.S.R. Ramachandran, Tamil Nadu Minister for Revenue and Disaster Management, Dr Pratap C. Reddy, Founder Chairman, Apollo Group, Shri Ashok R. Thakkar, Chairman, Platinum Jubilee Celebrations, Shri Sathyanarayan R. Dave, President, Hindustan Chamber of Commerce, representatives from the industry and others were present during the event.

Paradip Port Trust aims to boost EXIM trade with installation of New Container Scanner Paradip

U

Port Wings News Network nder Ease of Doing Business (EoDB) initiative, a Mobile X-Ray Container Scanning System (MXCS) has been installed by Paradip Port near the PICT Terminal at a cost of Rs 30 crore for the purpose of reducing physical examination and dwell time of containers at the Port. After successful Trial Run of the MXCS, the Atomic Energy Regulatory Board (AERB) has issued license on 27th August, 2021 to Paradip Customs for its regular operation.

The Scanner can scan up to 25 containers per hour, enabling the Trade to directly move out their containers with upgrade security and zero hassle.

This will also facilitate movement of unshredded metallic scrap materials in containers through the Port to meet the long

standing requirement of hinterland Industries. The operation of the Scanner is expected to boost the

container volume at Paradip Port as PPT is making continuous efforts to reduce the logistic c o s t to help the EXIM trade and is in line with Government’s Ease of Doing Business initiative.

While the shipping lines like RCL, ZIM International Shipping Line and Shreyas Shipping are calling the Port regularly, other major liners are likely to follow considering the upgraded facilities and hefty discount offered by the Port.

‘Economic Growth Will Hinge More On Jobs As Stimulus Winds Down’ Chennai

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Port Wings News Network hild tax credit checks and government stimulus payments have helped stoke brisk consumer spending so far this year, but the next leg of economic growth will rely more heavily on jobs, according to National Retail Federation Chief Economist Jack Kleinhenz, reports CNBC. “As the economy moves forward into the later months of 2021, federal aid will be tapering off and there will be an important focus on the ability of the labor market to generate ongoing strength in wages and salaries to support spending,” Kleinhenz said, in an article published Wednesday. “U.S. consumers remain in the mood to spend but the labor market and job creation will play an increasing role in their ability to do so.”

The labor market has been extremely tight. As of June, there were 10.07 million nonfarm job openings, but only 9.48 million people looking for work, according to the Labor Department’s Job Openings and Labor Turnover Survey. The imbalance drove wages and salaries up by 3.2% year over year for the 12 months ended June 30, according to the Employment Cost Index.

Kleinhenz said the higher wages employers have had to pay to stay competitive in the current labor market could lead to more inflation in the coming months.

Restaurant owners have shared their struggles in finding staff and retailers are already looking ahead to their busiest time of year. Ahead of the holidays, Walmart announced

it plans to hire 20,000 permanent workers. It recently sweetened the deal for its workers by paying special bonuses at its warehouses and covering 100% of college tuition and textbook costs for employees.

Target also broadened its college tuition benefits last month.

Wages also have been rising.

Walgreens and CVS Health were among the latest retailers to say they would lift starting wages to $15 per hour in the coming months. This followed pay hikes at companies from Chipotle and McDonald’s to Costco and Best Buy. But Kleinhenz said he doesn’t think these higher wages and

benefits are baked into the increased prices consumers have been seeing.

“The bulk of the recent upturn in U.S. inflation has been driven primarily by supply chain bottlenecks and low levels of inventories, but high labor costs are often passed on to consumers and are considered a precursor of broader inflation,” he said.

Kleinhenz doesn’t anticipate that the spreading delta variant of Covid-19 will prompt the group to cut its forecast for retail sales, although it could modestly disrupt retail sales. The NRF expects retail sales to grow between 10.5% and 13.5% this year from 2020.

CUSTOMS EXCHANGE RATES Notification No.71/2021 (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 3rd Sep. 2021

RATE (INR) Import Export 55.05 200.15 58.95 11.50 11.85 88.10 9.55 251.25 53.00 8.55 102.40 20.55 20.10 55.30 5.25 8.65 81.45 9.10 20.55 73.95 67.70 6.50

52.75 187.80 56.85 11.15 11.40 84.95 9.20 235.20 50.65 8.25 98.95 19.20 18.90 53.40 4.90 8.35 78.25 8.50 19.30 72.25 65.20 6.10

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

Sep. 15th - 21st, 2021 Issue

(A Company of Chennai Port Trust) Ministry of Ports, Shipping and Waterways - Government of India

Vision: To become a Mega Port with world class facilities thereby evolving as the Eastern Gateway Port of India.

• A n ideal destination for the EXIM trade with fully mechanized operations, connectivity to hinterland and deep draft facilities.

• P resent handling capacity: 54.44 MMTPA; Targeted handling capacity by 2023-24: 84.44 MMTPA • E nergy Port of South India with advanced facilities to handle fuels like Coal, POL, LNG and LPG. • B iggest Port on East Coast for handling Automobile exports for Major OEMs. • P ioneer Port in Digitization and Ease of Doing Business through implementation of ERP, PCS 1x, RFID, VTMS, etc., • S ocially Responsible port with a CSR programme geared towards addressing needs of the local community.

Corporate cum Registered Office: 17, Rajaji Salai, Chennai - 600001.

Phone : 044-25251666 - 70, Fax : 044-25251665 Port Address: Vallur Post, Chennai - 600 120.

Phone : 044-27950030-40, Fax : 044- 27950002

E-mail: info@kplmail.in Website: www.kamarajarport.in facebook.com/kamarajarport twitter@kamarajarport

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Sep. 15th - 21st, 2021 Issue

Thank You Readers…… the Sailing Continues…

It gives me great pleasure to introduce Port Wings – the largest and widely read Maritime Exim Weekly Newspaper published with a global perspective on Export and Import sectors from Chennai, Tamil Nadu and circulated in all maritime centers across the country.

Ever since Coronavirus pandemic stuck the world some 18 months ago, every media house suffered financially,

and advertisement revenue dwindled.

Few could not survive, a few survived by adapting to technology.

And with your unstinting support, Port Wings did not stop a single edition and continued with publishing copies on digital platform through e-paper. We bow before everyone who supported Port Wings during these tumultuous months. Though the situation is little improved when

compared to 2020, we seek your continued support.

In August this year, Port Wings, a one-of-its kind weekly newspaper that has been widely accepted as a vital source of information for all verticals in Exim trade like Ports, Shipping, Logistics, Govts and Trade bodies, is celebrating its seventh anniversary.

Our website https://portwings.in

that carried several hard-hitting news articles on the status of the logistics sector and overall growth of various ports in the country, has recorded more than 60 lakhs hits with an average of about 5,000 views/visits on weekdays.

Besides, our E-paper circulated on social media platforms including WhatsApp receives good response

and reaches more than 10,000 subscribers and well-wishers every week. And this patronage itself shows that Port Wings is well received among the EXIM Fraternity in the country.

Now, Port Wings completed six years and entering seventh year of operation in August. We request your continued support.

Team Port Wings

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YEARS

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ANCHERIL AGENCIES

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The Chennai Custom Broker’s Association

Paramount Group

The Southern India Chamber of Commerce and Industry

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India Post

Sep. 15th - 21st, 2021 Issue

7

The World’s Shippers Are Earning The Most Money Since 2008 Chennai

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Port Wings News Network he global shipping industry is getting its biggest payday since 2008 as the combination of booming demand for goods and a global supply chain that’s collapsing under the weight of Covid-19 drives freight prices ever higher, according to a Bloomberg report in ET. Whether its giant container ships stacked high with of 40-foot steel boxes, bulk carriers whose cavernous holds house thousands of tons of coal, or specialized vessels designed to pack in cars and trucks, earnings are soaring for ships of almost every type.

With the merchant fleet hauling about 80% of world trade, the surge reaches into every corner of the economy. The boom back in 2008 brought with it a huge wave of new vessel orders, but the rally was quickly undone by a demand collapse when a financial crisis triggered the deepest global recession in decades.

This boom’s causes are twofold -an economic reopening after Covid that has spurred surging demand for goods and raw materials. Alongside that, the virus continues to cause disruption in global supply chains, choking up ports and delaying vessels, all of which is limiting how many are available to haul goods across oceans. That’s left the majority of the shipping sector with bumper earnings in recent months.

The bonanza is centered around container shipping -- where rates are spiraling ever higher to new records, but it is by no means limited to it.

The shipping industry is posting its

on a year earlier and is pushing up the cost of transport everything from toys to bicycles to coffee.

Those gains are already showing in the earnings of A.P. MollerFile photo

strongest daily earnings since 2008, according to Clarkson Research Services Ltd., part of the world’s biggest shipbroker. The only laggards are the oil and gas tanker markets, where more bearish forces are at play.

“I’m not really sure the perfect storm covers it -- this is just spectacular,” said Peter Sand, chief shipping analyst at trade group Bimco. “It’s a perfect spillover of a red-hot container shipping market to some of the other sectors.”

Container shipping remains the star. It now costs $14,287 to haul a 40-foot steel box from China to Europe. That’s up more than 500%

Maersk A/S, the world’s largest container line, which hiked its estimated profits this year by almost $5 billion last month. In a sign of just how profitable the industry has become, CMA CGM SA -- the world’s third largest carrier -- said it is freezing its spot rates to preserve long-term client relationships. In other words, the company is turning away profit.

OTHER SECTORS While the demand for retail goods is lifting container markets, a recovering global economy is also churning through more raw materials -- boosting the revenues of bulk ships that carry industrial

commodities. In that sector, earnings recently hit an 11-year high and are showing little sign of abating down the line with consumption expected to remain firm for the rest of the year.

“Strong demand for natural resources combined with Covidrelated logistical disruptions” are supporting spot and future freight rates, Ted Petrone, vice chairman at Navios Maritime Holdings, which owns a fleet of bulk carriers, said on an earnings call last week. “Supply and demand fundamentals going forward remain extremely positive.”

Such is the extreme strength across shipping that some bulk carriers have even turned to carrying containers on their decks. Golden Ocean Group Ltd. is among the companies that said it’s looking at the idea. While it could spur additional profits in an already windfall year for owners, its not without its risks as bulk carriers aren’t designed to carry the giant boxes.

“It tells a story about the special situation we are in,” in the container market, Golden Ocean’s chief executive officer Ulrik Andersen said earlier this month.

TANKER DOLDRUMS While for many shipping sectors Covid has brought a boom, for oil tankers it has meant loss-making trades for much of 2021 and owners effectively subsidizing the shipment of crude oil.

With OPEC+ still keeping a

chunk of supply offline there are too many ships and too few cargoes, keeping earnings depressed. That has burned one of the hottest trades in the sector at the start of the year -- bullish oil tankers positions on the hope of a summer surge in oil demand.

Still, with on land oil inventories declining, analysts continue to anticipate a rebound. Rates could begin to move higher in October as stockpiles dwindle and demand for tankers grows, Pareto Securities analysts including Eirik Haavaldsen wrote in a note to clients.

But for now, the tanker market remains the only blot for an industry where freight capacity ever tightening. The ClarkSea index, which tracks daily earnings across a diverse range of shipping sectors has already posted its longest run of monthly gains on record.

Those bumper earnings are also being seen in more esoteric markets too. Car carriers now cost the most to hire since 2008. Rates for general cargo ships with heavy equipment are also surging, adding to a boom that is being led by container and bulk shipping.

“The charter rates reported in containers are crazy and it’s the same for dry bulk,” said Alexandra Alatari, a shipping analyst at Arrow Shipbroking Group. “The fundamentals are so strong they support rates that would be the peak of any other year.”

Crew Change Crisis Stabilizes As Vaccination Rates Rise

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Chennai

Port Wings News Network here are possibly some signs of improvement in the challenges seafarers have encountered due to the pandemic.

Unions, shipping lines, and major shipping organizations have complained for more than a year of a crew crisis as seafarers were unable to travel to and from their ships finding themselves unable to go home or reach their ships to relieve crews that had been at sea beyond their contracts.

The latest monthly update of the Neptune Declaration Crew Change Indicator, which is assembled from data supplied by the major ship managers, shows the first month of stabilization. Launched in May, the indicator tracks both crew nearing the end of their contracts as well as crew overdue for leave.

In August, both numbers stabilized and show slight declines after monthly increases since the indicator was launched. Travel restrictions, flight cancellations, and domestic lockdowns continue to create problems for seafarers, but the organizer said there “could be a light at the end of the tunnel.”

“The September Indicator confirms the tendency from August that the situation may be stabilizing,” reported the Global Maritime Forum, an international not-for-profit organization that oversees the reporting. After more than one-and-a-half percentage point increases in both the June and July reports, the indicator shows a tenth of a percentage point decline for the number of seafarers aboard ships beyond the expiration of their contracts.

There was a similar decline in the number of seafarers nearing the end of their contracts.

Ship managers report for the first time that they are facing a shortage of seafarers and cite travel restrictions for Indian seafarers and the European summer holiday period as causes.

Still, governments and ports are placing stricter crew change requirements which have

resulted in the cancellation of crew changes.

The September Indicator also reports a strong increase in the number of seafarers receiving COVID-19 vaccinations. According to the Global Maritime Forum, the new numbers suggest that programs set up to offer vaccines to international seafarers, especially in the U.S. and some European countries, are starting to produce results. While vaccination rates still age global average, more than onein-five seafarers are now vaccinated up from one-on-seven a month earlier.

“It is very encouraging to see that the number of seafarers who have been vaccinated has increased by 6.6 percentage points in the last month,” says Kasper Søgaard, Managing Director, Head of Institutional Strategy and Development, Global Maritime Forum. “But there is room for improvement. Vaccination rates remain behind large shipping nations in Europe, North America, and Asia where more than 50 percent of the population is fully vaccinated.”

Despite the progress in seafarer vaccinations, ship managers highlighted that there continues to be limited access to Covid-19 vaccines for seafarers due to supply issues. Furthermore, ensuring access to the second dose of the vaccine remains a challenge and, in many cases, there is a significant gap between the two doses for seafarers. Ship managers also report reluctance by some seafarers to get vaccinated.

More countries however continue to join those offering vaccinations. Earlier this week, Singapore announced it would begin vaccinating foreign seafarers who are staying in the country for a month or longer as part of their work. Similarly, the Australian state of Queensland has become the first in the country to begin offering vaccinations to foreign crews during their port calls.

While many countries have yet to recognize seafarers as key workers, the organizers of the report are optimistic that progress might be happening to protect the welfare and rights of seafarers.

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Sep. 15th - 21st, 2021 Issue

7

What China’s Economic Governance Tells Global Investors Chennai

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Port Wings News Network ome global investors have seemingly observed a ‘turn’ in China’s economic governance recently, reports Xinhua.

In addition to multiple anti-trust probes and data security checks on the country’s biggest internet companies, regulators have imposed tough regulations on the off-campus tutoring sector and stepped up food safety checks on popular food brands.

The intensive regulations across sectors have made these investors wonder: Is there a change of course in China’s policy direction? How will the regulatory moves affect the capital market and China’s economic structure in the long run?

Analysts from global financial service firms viewed the regulatory measures as part of China’s longstanding efforts to make growth more sustainable and inclusive, which will benefit the regulated sectors and the broader economy in the long run.

CONNECTING DOTS Entering 2021, the start of China’s new five-year plan period, authorities have stepped up regulatory oversight in a number of sectors.

In April, the country’s top market regulator vowed to strengthen antitrust law enforcement, imposing record fines on the country’s tech behemoth Alibaba and launching anti-monopoly investigations into

internet giant Meituan.

The off-campus tutoring businesses were put on the brakes in July, when central authorities published guidelines that restricted

power in a few tech giants, which could squeeze the profit margins of small and medium-sized companies, he said.

“The recent policy indicated File photo

financing for the for-profit offcampus training companies, in a bid to ease the burden of students.

The country’s market regulators have also stepped up crackdowns on food safety violations, carrying out on-the-spot checks on a number of chain stores of popular food brands and urging rectifications from the involved firms.

“The regulatory moves should be framed against the broader context of China’s economic transition,” said Robin Xing, chief China economist with Morgan Stanley.

For instance, the anti-monopoly regulations addressed issues such as the over-concentration of market

more emphasis on social equity, which will facilitate a healthier economic structure, more stable growth and happier lives for the people,” said Wang Peng, an analyst with Hangzhou-based Yongan Futures.

Shi Jialong, head of China internet and new media research with Nomura, said the regulatory actions on China’s internet sector were not aimed at curbing its growth, but a signal to let the big platforms channel their resources and energies away from excessive competition into research on advanced technologies.

“We believe the internet industry,

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Web: www.hindussthan.in

known for its resilience, should be able to adapt to the environment and sustain healthy growth,” Shi said.

PREDICTABLE MOVES The emphasis of quality rather than mere speed of development has long been going on. Since the idea of “high-quality development” was highlighted at the 19th Communist Party of China National Congress in 2017, China has been restructuring its economy in an effort to make growth more sustainable and inclusive.

Battles have been waged to defuse financial risks, eliminate absolute poverty and tackle environmental pollutions.

Meanwhile, the deepening of reforms on all fronts has been high on the government agenda to foster a new development paradigm.

The recent meeting of the Central Committee for Financial and Economic Affairs, attended by the country’s top policymakers, once again stressed high-quality growth, while emphasizing “common prosperity” in the pursuit of it.

“If you look back, you will find that all the policies can be traced back to the development philosophy outlined in public documents,” Wang said.

“Some people missed the signs or failed to fully understand it,” he said.

For instance, social equity has always been a policy priority, Wang said.

China is on track to meet its 2021

growth target of “above 6 percent”, with a GDP expansion of 12.7 percent in the first half of this year.

“This means the country has left enough room to push policies that are key to long-term development,” said Victoria Mio, director of Asian Equities at Fidelity International.

BULLISH PROSPECTS The regulations are conducive to the long-term growth of the Chinese economy and the capital market, Mio said.

Bullish on the prospects of the Chinese market, Fidelity International has applied to set up a fund management company that it fully owns. The application was approved by China’s top securities regulator in August.

Other global asset management giants are increasingly becoming China bulls. In an interview with the Financial Times in August, an investment strategist with BlackRock’s research unit recommended investors lift allocations to China’s markets.

For Wang, investors have reasons to stay upbeat on Chinese assets.

From the financial market perspective, China’s bond yield is among the highest in major economies, while its stock market valuation is lower than most developed economies, Wang said, pointing to the long-term investment value of China’s assets.

“Staying confident in China and in its assets is out of question,” he said.

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E mail: rnsekar@yahoo.com

Website: www.tridentcargo.com

Sep. 15th - 21st, 2021 Issue

9

Carriage Of Containers On Vessels Not Specifically Designed For The Purpose

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Port Wings News Network he shipping industry is currently witnessing an exceptional boom in the container trade, and due to the increasing demand, some freight forwarders and other parties are exploring unconventional methods to accomplish their targets and commitments, Hellenic Shipping report says.

Consequently, there are instances where shipowners are being asked to carry containers either on deck and/or inside holds on ships that are not designed for this purpose. Such a carriage could lead to a number of safety related issues such as stack collapses or container losses overboard. As highlighted in the club’s article (linked below), container stack collapses and associated concerns are not unusual, even on vessels specifically designed to carry containers.

The risks are more significant on ships that are not designed or equipped to carry containers.

The crew on such vessels could be unfamiliar with the carriage of containers and may not have the capabilities or understanding to ensure safe carriage. Therefore, prior to any agreement being reached to carry containers on such ships, it is imperative to: 1. carry out a detailed suitability assessment to ensure that the containerised cargo can be safely loaded, carried and discharged from the vessel.

2. assess what modifications to the ship may be necessary, for example retrofitting of the deck

fittings.

3. obtain consent from the ship’s Flag State and Classification Society (Class).

4. inform the club.

The carriage of containerised cargo on vessels that are not specifically designed for that purpose may constitute a material change of risk within the meaning of club’s rules, and / or the carriage,

bulkers may be excluded or deemed unsafe, in which case an owner may be entitled to call for fresh orders.

As to new contracts, members should be aware that the usual dry bulk charters, such as the NYPE forms, are unlikely to be suitable for the carriage of containerised cargo on vessels that are not specifically designed for that purpose.

For the safe carriage of containerised cargo, members File photo

trade or voyage may be imprudent or unsafe. As such, it is essential to notify the club in advance to prevent the risk of cover being prejudiced.

Further, the club can advise on any potential cover issues regarding deck cargo and requirements to clause relevant bills of lading, for example, to exclude the carrier’s liability for the deck cargo. Further information regarding deck cargo, liabilities and cover can be found below.

Members should also be cautious regarding current charterparty obligations, as well as carefully reviewing the terms of any proposed charterparties. With regard to the former, the carriage of containers on

are recommended to consider the following points and have appropriate measures in place: 1. Structural strength of the load area – – should be verified (during the planning stage) to be sufficient to withstand the load of the containerised cargo or whether any reinforcements are required.

– it is important that the weight is evenly spread on deck so as not to exceed the maximum permissible loading weight per square meter.

– If/when dunnage is utilised, the arrangement and type of dunnage should be suitable to prevent any movement of containers; and the permissible load shall not exceed

the deck load density for the specific ship.

2. Stowage and securing of cargo – – planning should be done with due consideration to the stack height, weight, and dynamic lashing calculations.

– particular attention would need to be given to the stowage location of dangerous goods (DG) and reefer containers. The location of DG containers will need to be in accordance with the International Maritime Dangerous Goods (IMDG) Code, while for reefers, there will need to be a provision of ensuring power supply.

– all the provisions of the IMO’s Cargo Stowage and Securing (CSS) Code as well as Class approved ship’s Cargo Securing Manual (CSM) should be followed.

Ship-specific accelerations and calculation examples to securing are to be provided in the CSM. – only type approved securing equipment is to be used.

– container lashings should be monitored and cross-checked by the ship’s staff after completion of the loading and during the voyage.

3. Ship’s stability and stress calculations – – metacentric height (GM) should be within optimum range for vessel type. If the value of GM is very large, the vessel will be deemed stiff and there will be excessive forces acting on the cargo lashing. If the value of GM is small, the ship will have long rolling period with prolonged strain on cargo lashings.

– intact GM limit curves shall be recalculated taking into account an additional wind profile area from

deck cargo.

– depending on ship’s freeboard, it may be necessary to re-address the damage stability calculations.

– compliance with other statutory requirements like loadline regulations, IMO visibility criteria, etc.

4. Updating and reissuance of the certificates and documents – – ship’s Class may require reclassification of the vessel and possibly other surveys to confirm that the ship is suitable for the carriage of containers.

– procedures relating to the International Safety Management (ISM) code will need to be updated to ensure safe carriage of containers. Upon satisfactory review and verification by the Flag State (or Class, on behalf of the Flag State) company’s Document of Compliance (DOC) and ship’s Safety Management Certificate (SMC) will be reissued.

– other documents and certificates like ship’s stability booklet, loading computer, cargo securing manual (CSM), Document of Compliance for Carriage of Dangerous Goods Certificate, will need to be amended and submitted to Class for reapproval.

5. Appoint a marine warranty surveyor – – to inspect the ship prior to loading, to ensure its suitability for the containerised cargo.

– to review the stowage and securing arrangements, stability data, lashing equipment, ship certificates and documents, and ensure that the risks associated with the specified operations are reduced to an acceptable level in accordance with best industry practice.

SABARI LOGISTICS SOLUTIONS SABARI & PRAVEEN STEVEDORES SLS TRANSPORT & Co (CUSTOMS BONDED WAREHOUSE | GENERAL WAREHOUSE | TRANSPORTATION) Registered and Head Office: 4/203, Ambattur – Redhills Road, Surapet, Chennai – 600 066.

Phone: +91 7299011029 Email: service@sabarilogistics.com

www.sabarigroups.org

Chennai

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Sep. 15th - 21st, 2021 Issue

7

No Relief For Shippers As Congestion And Rates Continue To Build Chennai

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Port Wings News Network ith demand from shippers remaining at high levels, bottlenecks developing across the supply chains, port infrastructure stretched, and inland transport also near overload levels, there are few signs of relief for shippers in the near term. The latest data from Xeneta taking real-time rates from leading shippers showed a leveling off in August but they continue to forecast that increasing port congestion and relentless demand ahead of the year-end holidays’ sales will continue to drive the markets in the weeks ahead.

As an example of just how unrelenting the situation has become and the increasing pressures, the Marine Exchange of Southern California that manages ship movements in the San Pedro Bay reported no less than four new records in the past few days surpassing new highs that had only been set days before. On August 30 there was a new record of 129 vessels in the port complex with a record 76 containerships at the ports of Los Angeles and Long Beach.

While Captain Kip Louttit, Executive Director of the Marine Exchange of Southern California, notes that there might be a slight downward trend, the congestion outside the port reached record levels as well. There was a record

75 vessels in the anchorage and drift areas on August 29, surpassing the previous high of 71 on August 27, with the main anchorage and the contingency both full with a further 12 vessels, including eight containerships, drifting beyond the anchorages also waiting for space in the port.

While the backlog in Southern California might be the most dramatic, many ports around the world are also reporting increased volumes and delays. With global demand remaining high for the container carriers, long-term contracted ocean freight rates stand at a remarkable 85.5 percent higher than a year ago according to data from Xeneta. August, however, showed a modest gain in the rates of just over two percent.

“In the context of 2021, a 2.2 percent monthly increase in rates appears modest, but in any other year this is an excellent result for carriers,” notes Patrik Berglund, Xeneta CEO. “Remember, this is yet another rise on the back of the largest ever monthly increase in July (28.1 percent). So, while some may have been expecting – read ‘hoping for’ if you’re a cargo owner – an adjustment downwards, we’re seeing a further demonstration of the powerful position liner operators find themselves in. They really are holding all the cards… and winning big.”

The pressures are coming across all the major markets according to Xeneta’s data. In Europe, imports rose by half a percent, while exports climbed more than three percent.

Results in the Far East followed a similar pattern, with imports up nearly one percent (up 50.5 percent since August 2020) and exports jumping by 2.5 percent (a massive 115.5 percent yearon-year increase). Xeneta reports similar increases in the U.S., where imports increased by an additional 2.1 percent and exports climbed 0.6 percent month-on-month.

“While we can’t be certain of a repeat of the astronomical monthly increases the industry has grown accustomed to, further gains are certainly not of the question,” comments Berglund. “There’s still a dearth of equipment, high demand, and, worryingly, very congested ports that are choking up the supply chain for shippers and retailers.”

The Xeneta CEO says landside infrastructure is “simply overwhelmed,” with the congestion tying up vessels, and their soughtafter containers, in an everworsening cycle of delays.

“With the holiday season logistical rush round the corner things may get worse before they get better,” forecasts Berglund, “and that’ll have an obvious knock-on effect on rates.”

Singapore Maritime Foundation Awards Record Number Of Maritime Scholarships Chennai

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Port Wings News Network he Singapore Maritime Foundation (SMF) is seeing a record number of scholarships awarded this year under two different schemes.

The 60 scholarships comprise 46 under MaritimeONE, the highest number since the scheme started, and 14 Tripartite Maritime Scholarships (TMSS) have been awarded to students this year.

The MaritimeONE scholarships are valued at SGD1.1m, while TMSS scholarships are worth about SGD1m.

Forty-two of the MaritimeONE Scholarships were awarded to students pursuing maritime-related courses, with a further four were awarded to students pursuing nonmaritime courses, in computer science, data science and analytics, and business analytics.

A new common funding category was created this year to pool funds for bursaries and scholarships under MaritimeONE. Companies that contributed to common funding were Maersk Singapore, Singapore Shipping Corporation, Trust Energy Resources, and Westfal-Larsen Shipping.

The 14 TMSS scholarships

are aiming producing future ship Captains and Chief Engineers.

TMSS is sponsored by the Maritime and Port Authority of Singapore (MPA), the Singapore Maritime Officers’ Union (SMOU), the Singapore Organisation of Seamen (SOS), and corporate sponsors including - Anglo-Eastern Ship Management (Singapore), Fleet Ship Management, Hafnia, NYK Shipmanagement, PACC Ship Managers, Pacific International Lines, POSH Fleet Services, and Swire Pacific Offshore Operations.

“The record number of MaritimeONE Scholarships and TMSS scholarships reflects the cohesiveness of the industry to train maritime talent. I thank all sponsor companies and unions for their commitment to nurturing young talent for the industry,” said Andreas Sohmen-Pao, Chairman of SMF. “I am also encouraged to see more scholarships awarded this year to students with a passion for technology. The industry is increasingly tapping into data science, artificial intelligence and machine learning to increase operational efficiency. I am confident our scholars will find the industry to be interesting and challenging.”

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Sep. 15th - 21st, 2021 Issue

K.S.R.Freight Forwarders (P) Ltd.

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Date of Publication - Wednesday, Posted on Wednesday (15.09.2021)

Sep. 15th - 21st, 2021 Issue

The Chennai Custom Brokers’ Association

The Promising, Performing & Result Oriented Team “Service is our Motto” 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.