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Better Times For Container Shipping in 2020-2021 Chennai

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Port Wings News Network luggish activity at ports around the Greater China region has been one of the most visible effects of the downturn in world trade in 2019. But port operators – as well as shipping lines, logistics providers, and others engaged in the sector – may now be able to look forward to gradually improving conditions in 2020 and beyond, reports Oxford Economics In our view improving global business sentiment and a range of local factors should mean that world trade starts to recover from mid-2020 onwards. Our forecasts indicate global trade growth picking up to 2.5% in 2021 and 3% in 2022, driving a similar rate of growth in the container sector.

The outlook is uncertain, though, especially with respect to trade policy. While the phase one trade deal offers hope of better relations ahead, the risk of further barriers

being erected – especially between the US and China – remains.

In our view, a re-escalation of trade stresses would trigger a slump in world trade and container

2021 could be more than doubled.

However, even in an upside scenario the pace of recovery will be noticeably weaker than that seen after previous slowdowns. This File Photo

throughput in the coming couple of years. Conversely, should trade tensions ease, the pace of trade and container growth through 2020-

is because the trade intensity of global growth is falling at a time when China is also restructuring its economy.

GRADUAL IMPROVEMENT IN GLOBAL TRADE Of course, one key factor behind a dismal year for world trade in 2019 has been the erection of ever-higher barriers to trade — principally between the US and China. The phase one deal signed on Jan. 15 offers hope that barriers won’t increase further this year, but the tariff reductions that they agreed to are relatively modest. Moreover, a risk remains that the deal proves to be only another temporary truce in the wider dispute.

Latest data offers a mix of reasons to be both hopeful and wary about world trade prospects in 2020. Surveys point to further contraction in trade volumes in early 2020, consistent with the view that the full impact of barriers erected in 2019 has yet to feed through. But underlying conditions look to be improving. Our global sentiment indicator finds overall Contd. on page -4

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Shipping Needs a Sea Change

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he pandemic has sent shockwaves through global maritime transport and laid the foundations for a transformed industry and associated supply chains. UNCTAD expects a return to growth in 2021

Global maritime trade will plunge by 4.1% in 2020 due to the unprecedented disruption caused by COVID-19, UNCTAD estimates in its Review of Maritime Transport 2020, released on 12 November.

The report warns that new waves of the pandemic that further disrupt supply chains and economies might cause a steeper decline. The pandemic has sent shockwaves through supply chains, shipping networks and ports, leading to plummeting cargo volumes and foiling growth prospects, it says.

According to the report, the short-term outlook for maritime trade is grim. Predicting the pandemic’s longer-term impact as well as the timing and scale of the industry’s recovery is fraught with uncertainty.

“The global shipping industry will be at the forefront of efforts towards a sustainable recovery, as a vital enabler of the smooth functioning of international supply chains,” UNCTAD Secretary-General Mukhisa Kituyi said. “The industry must be a key stakeholder helping adapt ‘just-in-time efficiency’ logistics to ‘just-in-case’ preparedness,” he added.

UNCTAD expects maritime trade growth to return to a positive territory and expand by 4.8% in 2021, assuming world economic output recovers. But it highlights the need for the maritime transport industry to brace for change and be well prepared for a transformed post-COVID-19 world.

As shipping companies prepare to release their third-quarter results, there are very few alarm bells ringing that the industry is suffering any great adverse impact from the coronavirus pandemic.

Global containerised trade was up 2.7% in the July-September period, compared with the year-earlier period, and the year-to-date volume is just 3% behind the equivalent period in 2019 following a 6.9% rise in September, the second consecutive month of growth.

The dry bulk market has been volatile this year in comparison, but China’s massive infrastructure investment and resulting hunger for raw commodities such as iron ore and coal, as well as soyabeans to boost national reserves, has kept earnings at a reasonable rate throughout.

Against this largely positive picture for 2020, though, there are some dark clouds that could potentially see a shift in outlook for 2021 and beyond.

This is based on the assumption that the pandemic will be brought under control and economies return to something like normal. China’s v-shaped recovery is a positive sign following the initial outbreak there, while news of a potential vaccine ready in the coming weeks (revealed after the IMF estimates) has already buoyed stock markets.

But with the second wave of the virus still rampant in Europe and elsewhere, with high levels of unemployment and reduced demand for goods and energy products a likely result, there is no guarantee that a vaccine will be the panacea to the economic woes.

A lack of new orders and deliveries for ships, and an acceleration in scrapping, has also helped to keep a lid on capacity growth and maintained the delicate market equilibrium. But with new orders expected to jump in 2021, any small change in fleet size could have an impact on market rates by the time they hit the water.

Even in the best-case scenario on the global economy, there will only be a return to growth in the second half of 2021, while many developing nations are expected to recover much more slowly. With this in mind, despite the positives from 2020, shipping must continue to proceed with extreme caution.

The annual Lloyd’s List Outlook Forum has established itself as the agenda-setting event of the maritime calendar, gathering an exclusive panel of the industry’s leading lights with Lloyd’s List and Lloyd’s List Intelligence’s experts to directly answer the critical questions shaping the maritime markets.

This digital event will look at key issues such as how to recover from the aftermath of a global pandemic, while also grappling with strategic dilemmas such as decarbonisation and digitalisation. The pandemic has also exposed how unprepared the world seemed to be in the face of such a crisis, the report observes, underscoring the urgent need to invest in risk management and emergency response preparedness in transport and logistics.

It says future-proofing the maritime supply chain and managing risks requires greater visibility and agility of door-to-door transport operations. Many trade facilitation measures taken during the pandemic require further investments in digitalization and automation. Accepting digital copies instead of paper originals, pre-arrival processing, electronic payments and customs automation all help speed up international trade.

On the flip side, the pandemic has also highlighted that digitalization comes with increased cyber security risks with a potential to cripple supply chains and services in global maritime trade. The report decries the humanitarian and safety crisis caused by the pandemic, when Sample more than 300,000 seafarers were stranded at sea for months beyond the end of their contracts TEXT – an unsustainable situation for both the safety and wellbeing of seafarers, and the safe operation of ships.

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UNCTAD reiterates its call to authorities to designate seafarers as key workers exempted from COVID-19 travel restrictions.

Much of the uncertainty is of course related to the global economy and how long the coronavirus pandemic will last. According to the International Monetary Fund’s latest forecast, China is the only major economy expected to record GDP growth this year but other markets will see a significant bounce back in 2021.

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Continued from page -3 business sentiment improving across the economies, while also seeing reasons for optimism on consumer confidence and evidence that inventories might be due for a rebound.

So after a weak Q1 (perhaps H1), the world economy and world trade can start a cyclical rebound later in 2020. The bounce will be modest but enough to push world GDP growth from 2.5% in 2020 to 2.8% in 2021 and 2.9% in 2022. This should support a pickup in total world trade growth to 2.5% in 2021 and 3% in 2022. This is rather slower than previous recoveries, reflecting the falling trade intensity of global growth. The historical correlation of global growth with shipping activity (Figure 2) suggests a similar rate of improvement for the sector.

STIMULUS AND IMPORTS BOOST CHINESE SHIPPING The outlook for world trade and global shipping are modest by historical standards, but regional and domestic factors should facilitate slightly faster growth in container activity in China and neighbouring economies.

In China, we recently upgraded our forecast for 2020 GDP growth by 0.3ppts (to 6%). This reflects a combination of the positive impacts of the phase one trade deal and easier macro policy in 2020 – specifically China’s shift from “structural deleveraging” to “keeping leverage largely stable.” China’s changing economic structure means its growth is becoming less import-intensive.

But latest data suggest reviving import demand for consumer goods, heavy industries that have run down input inventories, and capital investment in sectors targeted in the government’s “Made in China 2025” industrial strategy.

In aggregate, therefore, our forecast is for China’s goods imports to strengthen by almost 3% in 2020 and 4.5% in the following couple of years. Export prospects are somewhat weaker, but nevertheless overall goods trade should pick up. That means faster container throughput at the country’s ports – six of which are the world’s busiest (including Shanghai, by some distance the global leader).

“RESHORING” FUELS A PICKUP IN TAIWAN Recent trade data is even more encouraging in Taiwan, where goods exports in US$ terms were 4% higher on the year in December.

Indeed, exports to the US remained robust amid some emerging signs of a pickup in demand from China. Imports rose by 13.9% y/y in December, with capital goods imports up 66%.

One of the key factors in capital goods imports has been the “reshoring” of production by Taiwanese multinationals with bases in China to circumvent US tariffs.

With tensions between US and China on technology issues unlikely to ease for some time, this process should persist into the coming couple of years. Government support for upgrading the sector to be 5G-ready will also underpin capital imports.

Moreover, tentative evidence that the global semiconductor cycle has bottomed could support Taiwan’s goods exports in the year ahead.

Overall, we forecast Taiwan’s goods exports to grow by around 2% per year in 2020-2021 and imports to grow slightly faster. This should enable container throughput

at the country’s ports (including Kaohsiung, the world’s 14th busiest) to expand at a similar pace.

ANOTHER YEAR OF CONTRACTION IN HONG KONG However, the relatively positive run of trade data in the region has yet to be felt in Hong Kong. Inbound tourist arrivals were down more than 40% in the year to October, contributing to a 26% fall in import-intensive retail sales. On the outbound side, exports contracted 9% in the same period as disruptions to key transport hubs hurt business activity and production.

With the political unrest and protests in their seventh month and showing no sign of abating (even if protests have become somewhat calmer in recent weeks), we expect further contraction in the economy. More delays are likely for infrastructure projects, and business investment is also likely to contract again in 2020, further undermining imports of capital goods. Cash support to households might offer some help for goods imports, but the risks here are very much to the downside given households’ high debt burden and the rising unemployment rate.

Assuming a gradual resolution of the political situation, our forecast is for Hong Kong’s imports and exports to contract again in 2020, with imports leading a very gradual recovery in 2021. But the risks

to this outlook look firmly tilted towards the downside.

TRADE AGREEMENT COULD BOOST GROWTH IN 2020 What could substantially improve the outlook? A reduction in trade tensions, particularly those between the US and China, which have disrupted supply chains across the region. Our latest Global Scenarios Service simulates a scenario in which President Donald Trump takes a more clearly constructive tone towards China and unwinds recent tariff hikes. In response, investor sentiment around the world improves, supporting business confidence and ultimately boosting consumer incomes. Such a scenario is increasingly viewed as the most plausible upside risk for the world economy, according to our Global Risk Survey.

Against this backdrop, global growth could rise 0.7ppts faster than baseline in both 2020 and 2021, accelerating global trade by as much as 2ppts relative to the baseline. For the trade-intensive economies of China, Hong Kong, and Taiwan, the boost would be even greater, lifting goods trade (and potentially container throughput) by as much as 5ppts versus the baseline by 2021.

However, the potential losses from an escalation of the trade dispute (also explored in more detail in our Global Scenarios Service) would likely be noticeably greater, at 6%8% versus baseline.

Union Demands Maersk Stop Forced Redundancies Chennai

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Port Wings News Network autilus International, the union for maritime professionals, has demanded that AP Moller Maersk, end forced redundancies on its Dutch flagged vessels.

The union presented a petition to Maersk management urging that 24 Dutch seafarers at risk of being dismissed be offered alternative employment across the company.

The world’s largest containership owner recently sold its five remaining ships which sail under the Dutch flag. Following the sale, Maersk announced that Dutch Captains and Chief Engineers could remain in service, but that another 24 Dutch seafarers on the fleet will

be made redundant.

Nautilus International deputy general secretary Marcel van den Broek said: “It is incomprehensible to us and our members that a profitable company like Maersk, with over 300 ships in service, would not be able to find jobs for all 24 Dutch seafarers on their fleet in addition to the Dutch Captains and Chief Engineers.

“Our members do not accept this and demand that Maersk will immediately withdraw all announced layoffs.

“A memorandum of understanding (MOU) on job security was concluded in 2011 between Nautilus and AP Moller Maersk. We still consider this agreement to be applicable.”

CUSTOMS EXCHANGE RATES Notification No.113/2020 (N.T.) ALL RATES PER UNIT

FOREIGN CURRENCY Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc Turkish Lira UAE Dirham US Dollar Japanese Yen (100) Korean Won (100)

with effect from 18th Dec. 2020

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

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

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

Dec. 30th - Jan. 5th Issue

DG Shipping Order To Lift Quarantine Period Likely To Upset Crew Change Business At Cochin Port Kochi

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Port Wings News Network esentment is brewing within the shipping community in Cochin Port Trust over a circular issued by the Director General of Shipping lifting the mandatory quarantine period of 14 days for ships arriving from ports of Covid-infected countries, saying it would upset the crew change business at ports, reports BusinessLine.

The DG Shipping stipulation that crew from ships can only be disembarked after Covid testing on board, in addition to the standard operating procedure outlined earlier, would be detrimental to companies engaged in crew change, as it would incur additional expense.

“It appears that the order is based on the practice at Mumbai for alongside calls without taking into account the practices currently being followed at Kochi or other ports across the country,” said R Harikumar, President, Cochin Chamber of Commerce and Industry.

The order issued on December 17, he said, would result in ships staying at anchorage for over two days, leading to higher charges when the industry is facing a severe financial crunch.

Higher port charges C.S.Kartha, Managing Director of Kartha’s Shipping Solutions said

that shipping companies or their agents have to make arrangements for RT-PCR testing for all crew disembarking from vessels in coordination with concerned port and health authorities.

For testing purposes, the agents have to hire port tugs to take lab officials to these vessels anchored

in the outer channel and bring them back to the shore.

After the test results, tugs have to be re-deployed for crew transfer, doubling the tug hiring costs. The agents have to dole out Rs 60,000 per hour to the port for each voyage of tug that would take a minimum four hours for a trip.

Moreover, the 24-hour time period to avail the Covid test results would literally compel these vessels to stay at outer anchorage for nearly 48 hours.

With a charter hire of $30,000 per day, Kartha said the ships are likely to skip Indian ports to avoid payment of exorbitant port charges.

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India Offers Use of Its Ports To Bangladesh Chennai

He pointed out that Cochin Port Trust has handled 500-plus vessels of all types for crew change operations since mid-May. The normal practice is that the agents have to hire port tugs for embarking and disembarking of the crew to the shore from these vessels and take them for Covid testing. These vessels prefer to stay at outer anchorage to avoid payment of port charges such as port dues, berth hire and pilotage.

Moreover, the lack of required draught in the berths also forced them to stay out.

Logistics cost However, government officials said that the circular was issued after maritime trade complained that the 14-day quarantine rule was delaying the berthing of container ships with a cascading effect on the container logistics chain, slower turnaround of container and shortage of containers for exports. This also contributed to the higher logistics costs for exporters.

Ships diverting to the outer anchorage of their Indian ports on their journey without docking at berths for loading/unloading operations are covered by the standard operating procedure issued by the DG Shipping earlier.

I

Port Wings News Network ndia has offered Bangladesh shippers the use of its seaports for export and import trade to third countries.

The offer came during a virtual meeting last week between the prime ministers of the two countries, as the regional transhipment hub ports of Singapore, Colombo and Port Klang, with limited manpower during the pandemic and facing severe congestion, are struggling to handle containers.

“We have offered the use of our seaports to Bangladesh for export to third countries by bringing in goods using railway containers,” said Smita Pant, joint secretary in India’s external affairs ministry.

On the same day, Bangladesh and India reopened a rail link between Haldibari and Chilahati, targeting both goods and passenger movement.

During the first wave of Covid-19, when movement of goods by trucks was suspended to restrict the spread of the virus, rail containers became the key mode for goods transport.

Bangladesh’s traditional container supply chain typically sees export and import containers transhipped via regional hubs, using feeder vessels, but many of the hubs are facing severe congestion, delays and increased operational costs.

Shipping sources said if Bangladesh started using Indian

seaports instead, the congestion at the transhipment hub ports could be reduced.

Mohammed Abdullah Jahir, director of the Bangladesh Shipping Agents Association, pointed to the joint Europe-Middle East service operated by Cosco, Yang Ming, Hapag-Lloyd, OOCL and ONE, deploying nine vessels of between 5,500 teu and 7,300 teu, according to liner database eeSea. The service turns at India’s east coast and includes a weekly call at Visakhapatnam.

“This port can be used as an alternative to congested regional hub ports, provided feeder companies agree to operate vessels between Visakhapatnam and Bangladeshi ports,” he told The Loadstar.

Mr Jahir said if adequate containers were available, the feeder companies would offer to operate vessels on this route.

President of Chittagong Chambers of Commerce and Industry Mahbubul Alam said the congestion at hub ports was pushing freight rates up, increasing the price of goods and pressure on consumers.

“If it is found that using Indian seaports cuts transhipment delay, we will definitely welcome the offer,” he told The Loadstar.

Vessels with a draught of up to 17 metres can berth at Visakhapatnam, which handled just under 500,000 teu last year, according to eeSea.

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Dec. 30th - Jan. 5th Issue

DP WORLD, Senegal Sign Agreement To Develop Ndayane Port Chennai

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Port Wings News Network rade enabler DP World, a global provider of endto-end logistics solutions, and the Government of Senegal, have signed agreements for the development of a deep water port at Ndayane, approximately 50kms from the existing port and near the Blaise Diagne international airport.

The new port will further reinforce Dakar’s role as a major logistics hub and gateway to West and North West Africa, and support the realisation of His Excellency, President Macky Sall’s ambitious economic development plans for Senegal, the Plan Senegal Emergent (PSE).

DP World’s concession for the Port of Dakar, already includes a plan to develop a new container terminal alongside the existing Container Terminal in the Port of Dakar. However, after discussions between H.E. Macky Sall, President of Senegal, and Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, it was agreed that it would be more appropriate for Senegal’s development to carry out a more ambitious project and build an entirely new port outside of the city.

After constructive and detailed discussions, the agreements were signed in Dakar, between the Minister of Fisheries and Maritime

Economy of Senegal, Alioune Ndoye, the Director General of the Autonomous Port of Dakar (PAD), Aboubacar Sedikh Beye, and DP World’s Chairman, paving the way for the development of the new port.

DP World Dakar SA, the local joint venture company between DP World and PAD, will not only develop and operate the 300-hectare (ha) container terminal but also finance, design and develop the land and maritime infrastructure of the new 600ha port. The first phase of

this project will see an investment

by DP World Dakar of US$837m, which will make it the single largest private sector investment in the history of Senegal and is expected to be followed by a second phase of investment of US$290m.

Phase 1 will include a new container terminal with 840m of quay and a new 5km marine channel designed to handle 366m vessels and capable of handling the largest container vessels in the world.

Phase 2 will create 410m of additional container quay and a further dredging of the marine channel to handle 400m vessels.

The first phase of the Ndayane Container terminal will be operated alongside the existing DP World Dakar container terminal. Due to the Government’s vision for the development of the Port of Ndayane as a site for the next 100 years of port activities in Senegal, the container terminal will eventually have over 3 km of quay and 300 ha for the container yard. This will enable the existing Port of Dakar

to be redeveloped into a mixed use residential and commercial waterfront and cruise terminal.

DP World is also planning to develop a special economic zone next to the Port of Ndayane to further strengthen the attractiveness of Senegal to foreign investors looking at the Ecowas region.

The development of such an SEZ serviced by a world class port and airport will become another strong driver for growth of the economy and generation of jobs for the next generation of Senegalese citizens.

Cheikh Kante, Minister of State, Special Envoy to the President, said: “The development of the new port at Ndayane will enable Senegal to maintain its position as the maritime gateway to the region and play a significant contribution towards the realisation of H.E. Maky Sall’s vision for an Emergent Senegal.

Alioune Ndoye, Minister of Fisheries and Maritime Economy, said: “The Port of Ndayane, a major component of the port platform, gives our country back its leadership position thanks to its comparative advantages unlike any other in the sub-region. This port will be a powerful lever for growth, as a central link in the logistics chain, in line with the vision that his Excellency, The President of the Republic Macky Sall has set out in the plan Senegal Emergent (PSE) to make our country an integrated and

competitive logistics hub.

Aboubacar Sedikh Beye, Director General of the Port Authority of Dakar, said: “The development of the new port at Ndayane will provide a strong engine of growth for the next phase of the Plan Senegal Emergent.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said: “This will be DP World’s biggest port investment in Africa to date, and is a testament to our commitment to Senegal and belief in its potential for further economic growth. The new port will create jobs, attract new foreign direct investment to the country, and enable new trading opportunities that bring about economic diversification. I would like to thank His Excellency President Macky Sall, for his leadership and vision for the development of the port, and for partnering with us on this exciting project.”

Senegal recently became the second country to join the World Logistics Passport, a major initiative

by Dubai established to increase trading opportunities between developing markets, further boosting its position as a trade hub for Africa.

The World Logistics Passport has been created to overcome trade impediments, such as logistics inefficiency, that currently limit the growth of trade between developing markets.

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Dec. 30th - Jan. 5th Issue

Deal Or No Deal: Border Checks In EU Ports Are Starting As From 1 Jan 2021 Chennai

A

Port Wings News Network s from 1 January 2021, businesses that conduct trade between the EU and the UK will need to deal with border controls, thereby ensuring they submit the right formalities and information to border authorities in order to gain clearance for their goods at the border, according to ESPO. The uncertainty about the final outcome of the Brexit negotiations and the hope for a deal seem to create a misunderstanding with some businesses that they will still be able to avoid the paperwork when trading between the EU and the UK. That is why ESPO and its members want to stress that whatever the outcome of the Brexit negotiations might be, customs and border checks will come into place on 1 January.

Europe’s ports call on all businesses which are not familiar with trade to third countries to take now the necessary preparations, so that they will be able to submit the necessary formalities and information to border authorities to gain clearance for their goods as from January 1st. If not, their goods will be stopped in ports, potentially turning ports into bottlenecks and seriously disrupting the flexibility and reliability of long-established supply chains.

“Over the last years, Europe’s

ports, in particular those with important traffic flows with the UK, have done everything they can, within their remit, to prepare for 1st January. They have invested in ICT solutions to continue seamless transport after Brexit, set up parking lots to avoid traffic jams and set

up communication campaigns to inform all parties in the supply chains on the need to get ready.

They are ready to mitigate as much as possible the impact of border controls on cargo fluidity both in the ports and on the access routes to the port. But even so, all these preparations won’t be enough if the companies producing and shipping goods are not doing the basic, but essential custom preparations themselves. Ports have been facing critical weeks and a potentially turbulent period in this already difficult year as a consequence of the pandemic. We really hope we can count on the cooperation and

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Shipping Industry Supports Covid-19 Vaccine Distribution Chennai

goodwill of all customers and users of the port in the coming weeks”, says ESPO’s Secretary General, Isabelle Ryckbost.

Around half of UK exports and imports are to and from the European Union. Vice versa, for a number of EU-27 Member States, trade with the UK constitutes a considerable part of their overall trade. Most of these imports and exports between the EU-27 and the UK are transported by sea and consequently pass through seaports.

Overall ESPO hopes that an agreement on a EUUK future relationship is still within reach. This would provide for a tariff regime on imports and exports that preserves trade and economic growth, while also ensuring solid future cooperation between the EU and UK. It would finally also ease the impact of border controls on trade.

“While 1st January will anyway see a big impact on the paper work linked to the trade between UK and EU, a no-deal scenario would certainly further add complexity to the EU-UK trade flows. Moreover, it risks to impact more deeply on the trade volumes between UK and EU over time. Hence our call on the negotiators to find an agreement”, adds Isabelle Ryckbost.

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Port Wings News Network ajor shipping lines, container ports and operators have signed a charter with the World Economic Forum (WEF) and UNICEF to assist with the Covid-19 vaccine distribution.

Maersk, MSC, CMA CGM, Hapag-Lloyd, the Port of Antwerp and DP World are among the 18 shipping, airlines and logistics companies which have participated in an innovative collaboration to support the globally inclusive, safe and sustainable distribution of Covid-19 vaccines.

“We will focus our best efforts as a strong collective, to support the COVAX participant countries, with planning, preparedness and prioritised transportation and distribution of Covid-19 vaccines and related supplies, subject to internal regulations,” said UNICEF in a statement.

COVAX is the vaccines pillar of the Access to COVID-19 Tools (ACT) Accelerator, co-led by Gavi, the Coalition for Epidemic Preparedness Innovations (CEPI) and World Health Organisation (WHO) and its aim is to accelerate the development and manufacture of Covid-19 vaccines, and to guarantee fair and equitable access for every country in the world.

The signed WEF Supply Chain & Transport Industry Charter focuses on four main ways of transporting the medicine: 1. Engage with governments, customs authorities, UNICEF and other United Nations (UN) Agencies, and Non-governmental organisations (NGO) 2. Participate in operational asset and competency sharing 3. Assign expertise to support governments, where requested by UNICEF 4. Support UNICEF’s Global Vaccine Logistics Distribution, for Covid-19, with prioritisation and solutions for international and incountry distribution of vaccines and related supplies on behalf of the COVAX facility.

“The first wave of vaccines for the 92 low- to middle-income COVAX countries represents two to three times UNICEF’s yearly routine vaccination programme,” highlighted WEF and added, “The magnitude of the task requires bold collective action from multinational organisations, governments and industries.”

The rest of the companies that have signed the charter are Agility, DSV Panalpina, Lufthansa Cargo, Stena AB, Allcargo Logistics, Deutsche Post DHL, PSA International, Toll Group, DFDS, Panama Canal Authority, Singapore Airlines and UPS.

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8

Dec. 30th - Jan. 5th Issue

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Visakhapatnam Port Chairman Takes Additional Charge in DCI Chairman Visakhapatnam Port Wings News Network hri K Rama Mohana Rao, IAS, currently Chairman of Visakhapatnam Port Trust (VPT) is appointed as Director and Chairman of the Dredging Corporation of India Limited on 22 December 2020. Shri Rao is a 1994 batch lAS officer of UP Cadre.

Previously, Shri Rao worked in various posts

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in UP Government and his immediate previous posting was as Commissioner, Mirzapur, UP Government. His expertise includes Administration, Port & Shipping Sector etc.

The 44th Annual General Meeting of the company was held on 22 December 2020 wherein the members have approved the financial results for the year 2019-20. etc., FINANCIAL RESULTS FOR THE YEAR 2019-20 The Profit after tax of the company is Rs. 551 lakh for the year as compared to Rs. 3803 lakh for the previous year.

The operational income of the Company is Rs. 74969 lakh as compared to Rs. 69174 lakh

for the previous year. The other income is Rs. 560 lakh as compared to Rs. 678 lakh for the previous year. The total income for the year is Rs. 75529 lakh as compared to Rs. 69852 lakh for the previous year. The shareholders in the 44th AGM held on 22-12-2020 approved the above financial results for the year 2019-20.

DREDGING OPERATIONS: The company has been performing the dredging at the port for the past 30 years. The company also caters to the maintenance dredging requirements of other major ports/Indian Navy etc., The company is taking capital dredging assignments on the availability of the vessels and other logistic requirements.

The above works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year.

CORPORATE SOCIAL RESPONSIBILITY: The company has also taken steps for fulfilling its responsibility towards the Society by implementing the CSR initiatives. During the year the company has spent an amount of Rs. 108.28 lakh towards CSR activities which is more than the target of Rs. 54.38 lakhs as per the Companies Act. The Company has undertaken CSR activities in the form of distribution of school bags in Government schools, providing RO Water Plant in Government Schools and installation of biodisaster toilets etc.

Shipping Ministry Identifies New Routes For RO-RO, RO-PAX & Ferry Services

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Chennai

Port Wings News Network inistry of Ports, Shipping and Waterways (MoPSW) has been working continuously for the promotion of Coastal Shipping under Sagarmala Programme.

The Sagarmala programme is the flagship programme of the Ministry to promote portled development in the country through harnessing India’s 7,500 Km long coastline and potentially navigable waterways.

MoPSW has identified Domestic locations namely Hazira, Okha, Somnath Temple, DIU, PIPAVAV, Dahej, M u m b a i / J N P T, Jamnagar, Kochi, Ghogha, Goa, Mundra and Mandvi and 6 International routes, connecting 4 international destinations namely Chattogram (Bangladesh), Seychelles (East Africa) Madagascar (East Africa) and Jaffna (Sri Lanka) from Indian major coastal port towns for the commencement of ferry services through inland waterways.

MoPSW, through Sagarmala Development Company Limited (SDCL), is desirous of facilitating the companies to operate RO-RO, RO-PAX and Ferry services on various routes across the nation and provide the required support to make the project operational.

MOPSW has recently successfully implemented one of such ferry routes by deploying RoPAX vessel ferry service between

Hazira and Ghogha. This ferry service has reduced the distance between Ghogha and Hazira from 370 Km to 90 Km and travel time from 10 to 12 hours to about 5 hours. This will result in huge savings of fuel (approx. 9000 litres per day) To replicate the success of the above business model, MoPSW now encourages the private operator to identify the routes, which offers potential to commence the RO-RO, RO-PAX ferry service based on the localized demand to promote the supplementary and sustainable mode of the transportation through coastal/inland water. The purpose is to: 1.

Create a supplementary mode of transportation, which will not only be beneficial for the daily commuters, tourists’ movement and cargo transportation but also helpful in reducing carbon footprint by shifting to environmentfriendly mode of transportation from rail and road.

2. Provide impetus to the tourism industry 3. Create job opportunities in the coastal regions 4. Saving in terms of both cost and time for the users 5. Decongest road and rail networks Sagarmala Development Company Ltd will support the initiative by providing equity to the project in SPV framework, if required, and provide other assistance and facilitation to the private Operator(s) including obtaining various permissions and approvals from regulatory and statutory Government Authorities.

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Dec. 30th - Jan. 5th Issue

DBGT Inaugurates New Feeder Service Call to Male, Maldives From Tuticorin Tuticorin Port Wings News Network BGT inaugurated the new Feeder Service call to Male TMC (Tuticorin -Male-Colombo) on 20 December 2020. The maiden call of the service by feeder Vessel M.V.Iberian Express, Operated by MSS (Maldives State Shipping, Male) and handled at Tuticorin by Smart Marine Services Pvt. Ltd., India.

The Gibraltar-flagged vessel M.V.Iberian Express, operated by MSS (Maldives State Shipping, Male) with Length overall of 147.84 metres, beam of 23.25 metres, and arrival draft of 7.5 & 8.1 metres arrived at DBGT, VOC Port, Tuticorin on 20 December 2020 from Colombo.

The Shipping Agents for the vessel is Smart Marine Services Pvt Ltd., India.

Deputy Chairman, VOCPT appreciated the efforts of Vessel Operator Smart Marine Services Pvt. Ltd., and DBGT for introduction of this service from VOCPT and extend warm wishes for the successful running of this service in the future.

Mr. P. Badrinath, General Manager, Smart Marine Services Pvt. Ltd., stated that their Director & JMD – Mr. K.S.Kandasamy and Mr. K. Krishnakumar, have been thinking on this service for quite sometime as good cargo potential to Male is available at Tuticorin

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particularly Agri products, Salt and Reefers.

On the return leg, the vessel would bring in the import containers from Colombo and empty containers from Male. As such, the vessel would cover 10 days rotation between Tuticorin- Male- Colombo - Tuticorin. Exim community is confident that with the support from VOCPT, DBGT and the trade, this service would be able to make calls for the full year 2021.

Mr.Senthilkumar Subramanian, CEO, DBGT stated that DBGT is closing the year 2020 with a positive note by introduction of this service & new additional connectivity to Male from VOCPT. DBGT would provide necessary support in terms of faster turning around time, last minute connectivity etc for the permanent retention of the service at VOCPT. Underpinned with deep draft, operational efficiency, excellent cargo evacuation infrastructure and enhanced asset utilization, DBGT will continue with higher performance and productivity, be the best and safest Terminal services in the southern region.

DBGT Management also Expressed their appreciation and congratulated the commendable efforts of all the stakeholders and DBGT Team.

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Best Wishes for a Happy & Safe New Year

2021

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Dec. 30th - Jan. 5th Issue

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Maersk To Shift Vessel Calls to New Container Terminal in Kalundborg operated by APM Terminals

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Chennai

Port Wings News Network .P. Moller - Maersk on 21 December 2020 announced the signing of an agreement with Maersk to regularly call Kalundborg as APM Terminals will establish and operate a new container operation at Kalundborg in agreement with Port of Kalundborg.

With this move, Maersk will leave Copenhagen Malmö Port (CMP) located in the center of Copenhagen as of March 2021.

The agreement between A.P. Moller – Maersk and APM Terminals covers

two weekly feeder services with rotation Bremerhaven (DEBRV), Hallstahammer (SEHAL), Helsingborg (SEHEL), Kalundborg (DKKLD), Aarhus (DKAAR), Fredericia (DKFRC) and back to Bremerhaven (DEBRV) totaling approximately 30 pct. of the volumes of the island of Zealand in Denmark. In turn Kalundborg will be added to the global supply lines as volumes for connection to the North Europe/Asia coverage AE5 will be moved via

Aarhus.

“Kalundborg is a port undergoing rapid development and investments and now also with APM Terminals as an operator, we see a great synergy in moving our business to Kalundborg. Also, Kalundborg is situated well to cater for our growth ambitions in Zealand and to manage our current customer base better and more sustainably.” said Stig Kirkegaard, Country Manager Denmark of A.P. Moller – Maersk.

APM Terminals has agreed with Port of Kalundborg to establish terminal operations in the area Ny Vesthavn effective March 2021.

The new area has been established by Port of Kalundborg with a water depth of 15m and fully paved with the required infrastructure to start operations. APM Terminals will be ramping up presence so staff and equipment will be in place to start operations and service customers in March.

“We are proud that A.P. Moller - Maersk as our first customer subsequently has chosen APM Terminals in Kalundborg to serve as their main point of logistics in the Eastern part of Denmark. With Kalundborg, we see an opportunity to provide customers with a great service and an efficient and competitive product in a strong location which is well connected, accessible and closer to industry and customers of the port”, said Dennis Olesen, Managing Director Nordics, APM Terminals.

The agreement will take effect as of 1st March 2021. A.P. Moller - Maersk has called the Port of Copenhagen regularly since 1968.

IMO Chief Slams ‘No Crew Change’ Clause

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Chennai

Port Wings News Network MO Secretary-General Kitack Lim has criticised the “no crew change” clauses in charterparties, stressing that such clauses exacerbate the dire situation of stranded seafarers and undermine the efforts undertaken to resolve the ongoing crew change crisis.

The so-called “no crew change” clauses, which are demanded by certain charterers, state that no crew changes can occur whilst the charterer’s cargo is onboard – hence not allowing the ship to deviate to ports where crew changes could take place.

The clauses are being pursued at a time when over 400,000 seafarers are stranded at sea due to COVID-19-related travel restrictions, well beyond their contract expirations, and over 400,000 seafarers unable to sign onto ships.

The crew change crisis is now in its tenth month. The extended times at sea are taking their toll on the physical and mental health of the seafarers who have kept the global trade running despite global lockdowns.

Lim called upon all charterers in a letter to refrain from requesting to include “no crew change” clauses in charterparties, and further called upon shipowners and operators to reject them if they are demanded.

“Such clauses exacerbate the mental and physical fatigue among exhausted seafarers, undermine compliance with the provisions of the Maritime Labour Convention, 2006, as amended (MLC, 2006) and further threaten

the safety of navigation”, Lim said. He added that alternative contractual clauses that do allow for crew changes during the pandemic are available and should be utilised.

“Resolving the crew change crisis requires the best efforts of all stakeholders. The elimination of the use of “no crew change” clauses is just one of those efforts”, the Secretary-General said.

At the latest meeting of IMO’s Legal Committee, LEG 107, international organizations made statements to condemn the use of “no crew change” clauses in charterparties. The committee invited submissions on the matter to its 108th session, scheduled to take place in July 2021.

“The situation continues to constitute a humanitarian crisis that threatens not only seafarers’ health and wellbeing but also the safety of navigation and the uninterrupted flow of the global supply chain,” Lim insisted, adding: “policies or practices that prevent or inhibit safe, regular crew changes should be revised or eliminated.”

There have also been some encouraging signs of progress in the application of the industry-developed framework of protocols for ensuring safe crew changes and travel during the pandemic. As of 18 December, 46 IMO member states and one associate member have designated seafarers as key workers, an essential step to exempt them from specific COVID-related travel restrictions, get repatriated and sign onto ships.

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New Year

Regd. Office: ‘Parents Vision Building’, No. 38, Ground Floor, Rajaji Salai, Chennai - 600 001.

Phone : 30132286, 87, 88, 89, 90 E-mail : sanmugatransportpvtltd@gmail.com

Dec. 30th - Jan. 5th Issue

Syama Prasad Mookerjee Port Chairman Vinit Kumar Takes Additional Charge as Chairman of Paradip Port

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Paradip

Port Wings News Network yama Prasad Mookerjee Port, Kolkata (erstwhile Kolkata Port Trust) Chairman Shri Vinit Kumar, an IRSEE officer of 1993 batch assumed the additional charge of Chairman of Paradip Port Trust on 23 December 2020. He is currently at the helm of affairs of Syama Prasad Mookerjee Port, since 9 October 2017.

Shri Vinit Kumar was Chief Electrical Engineer in Mumbai Railway Vikas Corporation Ltd. and looked after World Bank funded MUTP project before joining as Chairman, Kolkata Port Trust. Shri Kumar joined administrative post of Secretary, Central Railway and gained experience in general administration. Shri Kumar worked in Central Railway in Mumbai suburban system, one of the densest suburban system in the world in maintenance and operations of rolling stock and traction installations. He also worked in Pune and Nagpur in independent charge of traction assets and locomotive workshop.

He has wide experience in operation, maintenance, infrastructure development and general administration of Railways.

As Chairman of Syama Prasad Mookerjee Port, Kolkata, Shri Kumar has played a pivotal and dynamic role for the Port to achieve the highest cargo handling in two consecutive years of 2018-19 and 2019-2020 which surpassed all previous records in the 150year history of the port. In addition to cargo handling, the Port achieved profitability of INR 60 crore for the first time in 15 years due to his thoughtful and energetic leadership. In a befitting manner, glorious celebration of 150th anniversary of Kolkata Port was graciously

inaugurated by Hon’ble Prime Minister of India on 11th January 2020 under his skillful guidance.

Quite remarkably the port is running steadily even in these challenging times by focusing on digitalization, process improvement and user-friendly approach. Shri Kumar is driving the digital transformation

across the Port’s departments to improve the operational efficiency, productivity and transparency. Today, the Port stands among top major ports in financial transactions and issuance of eDOs under PCS 1x. By virtue of his enormous efforts, Shri Kumar has turned Centenary Hospital into an ideal employeefriendly COVID-19 grappling hospital of high order. Since 2017 Shri Kumar has been a torchbearer of many success stories of Syama Prasad Mookerjee Port, Kolkata in terms of port management and operations.

Since joining at SMP, Kolkata, Shri Kumar has played a key role in the growth of regional connectivity comprising neighboring countries and North-East region. He has visited Bangladesh for Secretary (Shipping)

level talks and meeting of Standing Committee under PIWTT and Inter Governmental Committee on use of Chattogram and Mongla Ports of Bangladesh. He has been instrumental in opening a new multimodal route to NorthEast via Bangladesh by organizing the first movement from SMP Kolkata. Shri Kumar also visited Nepal to participate in INDONEPAL Logistics Summit for Business Development and Trade promotion purpose.

Shri Vinit Kumar also visited Port of Antwerp International as a team member of Ministry of Shipping, Govt. of India for proof consultancy of the report submitted by IIT (M). Shri Kumar was also a team member of Ministry of Shipping, Govt. of India to participate in the Second Asia Maritime and Logistics Forum.

Shri Kumar completed BE in Electrical Engineering from Delhi College of Engineering, Delhi and PGDBA marketing from Symbiosis. Shri Kumar have also attended management training programs in ICLIF Malaysia and INSEAD Singapore. Shri Kumar has travelled UK, Sweden, Germany etc. for study of systems being followed there for operations, maintenance and infrastructure development. Shri Kumar was also manager for athletics team of Central Railway and attended World Railway Games as in-charge of Indian team in Nuremberg, Germany.

Shri Vinit Kumar believes in collective responsibility and wisdom and he invites wholehearted co-operation from the Port users, Trade and Commerce and employees of Paradip Port Trust at large to further strengthen the overall performance of PPT to make it Numero Uno among Major Ports of India and to make it more vibrant in the Port and Shipping World.

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ONE To Charter World’s Largest Containerships

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Chennai

Port Wings News Network ingapore-headquartered container carrier Ocean Network Express Pte. Ltd. (ONE) said it has signed a letter of intent (LoI) with Japan’s Shoei Kisen Kaisha, Ltd. for the 15-year charter of six new ultra large containerships (ULCS). The vessels, with capacity greater than 24,000 TEU each, are said to be the world’s largest.

The newbuilds will be built by the consortium of compatriot shipyards Imabari Shipbuilding Co., Ltd. and Japan Marine United Corporation for planned delivery in 2023 and 2024.

“This new class of ships will join our core fleet and forms part of our ongoing strategy to introduce large, modern, and fuelefficient vessels to further strengthen our fleet competitiveness,” ONE said in a press release on Thursday.

Currently, the world’s largest containerships—Hyundai Merchant Marine’s Algeciras class—have a maximum capacity of slightly below 24,000 TEU. The six new ULCS with capacity exceeding 24,000 TEU will help bring economies of scale and significantly lower carbon emissions through a state-ofthe-art hull design that aims to maximize cargo intake and minimize fuel consumption, ONE said. The vessels will be equipped with exhaust gas cleaning systems, also known as scrubbers, to meet International Maritime Organization (IMO) emissions regulations.

Best Wishes for a Happy & Safe New Year 2021

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Dec. 30th - Jan. 5th Issue

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(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.

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

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Dec. 30th - Jan. 5th Issue

Freightwalla Joins Tradelens To Strengthen Transparency in Freight Logistics Operations With Blockchain Chennai

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Port Wings News Network ndia’s leading digital freight forwarding start-up Freightwalla announced joining hands with TradeLens - a blockchain enabled digital supply chain solution jointly developed by Maersk and IBM. The partnership will enable Freightwalla’s online platform to provide unparalleled visibility and connectivity for shipper’s international shipments.

The announcement comes just days after the company announced Maersk’s Spot rate API integration on its digital platform.

Improving transparency, traceability, and rapid response mechanism has been a significant concern for the shipping and logistics industry. With robust end-to-end connectivity of all stakeholders with the blockchain technology, the partnership will strengthen the overall supply chain transparency. The association will further fast-track the digitization revolution in the industry.

Speaking on the occasion, Mr. Punit Java, Co-Founder & CTO, Freightwalla, said, “As a digital freight forwarder, our mission is to improve transparency and reduce costs for our partners and customers.

Freightwalla getting on board the TradeLens platform will enable

seamless connectivity between all stakeholders in the logistics ecosystem, including transporters, shipping lines, ports, and financial institutions. It will enable shippers to get full visibility into their shipments and reduce the overall cost of logistics.”

The company has developed its own digital freight forwarding app for the EXIM fraternity and plans to link it with TradeLens, providing its customers unparalleled transparency and visibility while shipping internationally. Mr. Java, who also heads the development of Freightwalla’s digital freight forwarding platform, believes that TradeLens will help reduce the operational overheads and errors by enabling the automation of significant parts of the operational process.

Freightwalla has been rapidly working towards educating the Indian traders about the benefits of digitalization, a much-needed transformation that is finally happening for the maritime industry.

It has been working closely with the industry committees and the Indian government to help discuss and put better policies in place for logistics players and stakeholders. It recently hosted a discussion over a webinar with Shri Piyush Goyal, Minister of Railways, Minister of Commerce

and Industry to discuss the on-going challenges the industry is facing due to the COVID outbreak.

The TradeLens platform has been jointly developed by IBM & Maersk after it was officially announced in August 2018. The platform publishes more than 2 million events per day, and the ecosystem includes more than 175 unique organizations.

Mr. Bimal Kanal, who heads TradeLens in South Asia, mentioned, “TradeLens is an industry-wide neutral platform aiming at digitalising supply chains and the logistics industries. We aim to bring as many stakeholders involved in the logistics sector as possible onto the platform and create an efficient, digital ecosystem that will drive benefits to one and all. Freightwalla’s moves towards digital transformation are helping shippers to a great extent, and by joining the TradeLens platform, they are further accelerating this digital journey.”

Freightwalla joining TradeLens will help its customers and thus take the Indian maritime industry a step closer towards its longoverdue digital transformation.

Not to mention, for a country with trade volumes as high as India, digitalization will help reduce friction and promote transparent global trade.

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Shortage of Shipping Containers Could Hit Indian Automakers Chennai

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Port Wings News Network utomakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world’s fifthbiggest auto market.

Shipping freight rates have surged since July and companies are now finding it “almost impossible to sustain normal trade operations”, said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers (SIAM).

That is a cause for concern just as India’s auto industry has started showing signs of recovery after coronavirus lockdowns eased.

SIAM represents major domestic companies such as Maruti Suzuki and Tata Motors as well as global manufacturers including Volkswagen AG and Ford Motor which are major exporters.

A global surge in demand for certain goods during the pandemic has upended normal trade flows,

stranding empty cargo containers and leading to bottlenecks.

Denmark’s A.P. Moller-Maersk, a leading container and logistics company, said overall exports from India have bounced back strongly but imports have not, leading to an imbalance and causing the container shortage.

Its South Asia boss Steve Felder said they have tripled the number of empty containers they have been bringing from the Middle East in the past few weeks.

“Within the country too, we have been repositioning containers from pockets where they are available to pockets where they are in high demand,” he told Reuters, predicting a return to normality in the first half of 2021.

In the meantime, major Indian auto exporters are having to book containers weeks in advance instead of days, said Vinnie Mehta, director general of the Automotive Component Manufacturers Association of India.

“Companies may also be forced to absorb the price hikes caused by a spike in freight rates and coupled with the recent surge in raw material costs,” he said.

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14

Dec. 30th - Jan. 5th Issue

7

No Easy Solution To Global Container Shortage

T

Chennai

Port Wings News Network he current shortage of containers has resulted in high freight rates for exporters and disrupted many Malaysian businesses that trade globally, according to The Edge Malaysia.

This, in turn, has led to calls from the Malaysian National Shippers’ Council (MNSC) for the government to intervene and provide some sort of fiscal relief to exporters in the form of tax incentives and the removal of the cap on total logistics costs for a Market Development Grant. (The grant, capped at 30% of logistics costs, is given by the government to encourage companies to expand their market.)

The Federation of Malaysian Manufacturers (FMM) is also urging the government and the port authorities to leverage their relationships with shipping lines to get them to provide more services and capacity to Malaysian ports.

However, some logistics industry players say that while fiscal relief could help Malaysian exporters remain competitive, only a rebalancing of trade flows can rectify the issue of container shortages.

According to Dr Michael Chiam Tow Hui, a council member of the Malaysian Employers Federation (MEF), the request for the government to get more liners to provide more services to Malaysian ports is something that might not be doable.

“This is not something that you can do tomorrow. It takes months or maybe years to plan routes. How do I bring my ships to Port Klang if there is no cargo (from the place of origin)? To bring a ship in is very expensive. It takes time to organise.

“Their trade routes have already been planned long ago, and we know which day they are coming in and which day they are going out,” says Chiam, who used to run a logistics and shipping company.

Reason for shortage The shortage of containers is due to the

rebound in economic activities in China, as well as the peak period demand for goods in the US and European markets owing to the Christmas and New Year holidays. At the same time, demand for American and European goods from Asian markets has been weak, which led to an uneven trade flow.

Chinese manufacturers are rushing to fulfil orders and are willing to pay higher freight rates. This has caused shipping liners and container owners to shift their containers to China to serve the inter-Pacific routes between Chinese and American ports. As a result, there is a severe shortage of containers for intraAsian trades and other trade routes.

While there is high demand for the Chinato-Europe routes, Port Klang’s position as the last port of call for vessels from China before they make their way to Europe means that they are often full and it is hard for Malaysian exporters to get a slot on them.

The slow return of containers from American ports also exacerbates the matter, as many liners do not want to bring back empty containers to Asia, as that means extra costs for them — costs which are transferred to Asian exporters if they want the containers.

A research report by Fraunhofer Center for Maritime Logistics and Services and Container xChange shows that on average, empty containers spend 45 days in depots.

Containers lie idle the longest in Chinese and American ports, between 61 and 66 days.

Container xChange is an online platform that matches shippers with containers and liners. While the turnaround time of containers at China is high, Container xChange also found that the availability of containers at Chinese ports remains at record lows.

The Container xChange Container Availability Index for 40ft high cube shipping containers in Shanghai stood at just 0.05 points early this month, compared with 0.63 points a year ago. Any number lower than 0.5 indicates a shortage of the metal boxes.

Meanwhile, ports in the US are facing

extreme congestion. Following the easing of lockdown restrictions in the country in June, ports have been operating at maximum capacity, according to a report quoting Sara Alkawari, supply chain risk intelligence analyst at Resilience360. In addition to higher volumes, Alkawari observes that issues such as labour and chassis shortages have contributed to the ongoing congestion at US ports, with yard utilisation averaging 80% to 85%.

This means that even if the government provides tax incentives, if containers are not available, the operations of Malaysian exporters will continue to be disrupted, says Chiam.

“It is not a matter of tax incentives, but supply chain. Now the problem is there are no containers. It is not because there is no business, but no containers,” says Chiam, adding that to rectify the trade imbalance, more trade flows from Europe and North America will be needed.

A logistics operator says that since it is a worldwide problem, even if liners add more ships and services to Malaysian ports, the problem will not be solved. Having more containers may solve the issue, but it takes time to build containers.

China, the world’s largest producer of shipping containers, has indicated that it is ramping up production to ease the shortage.

Container manufacturers there have already extended working hours from eight to 11 hours to meet production targets.

“Most containers are stuck in the US and other countries, which are still under various measures of lockdowns. Those countries need their logistics companies to go back to full steam to send those empty boxes back into the market.

“Once those boxes come back, things will settle down. Not much can be done in the meantime,” says the logistics operator, adding that since Malaysia is not the only country facing this problem, there should not be any direct impact on Malaysian exporters’ competitiveness.

“It just shows how low our freight rates were in the past. They were possibly too low as the shipping lines were subsidising them.

So, in effect, what has actually happened is that shipping lines have removed the subsidies and are now charging market rate,” he says.

Shipping freight rates up 400% FMM tells The Edge in a statement that the worsening shortage in container and vessel capacity, especially during the second half of 2020, has driven up container shipping freight rates by 300% to 400% for both import and export shipments.

The rates are expected to continue to go up because of the backlog of containers sparked by blank sailings and vessel delays, FMM says.

“FMM members have indicated that the container booking request was cancelled by the shipping lines at the very last minute unless manufacturers were able to pay higher freight rates. For example, the freight rate to export to Australia ex-Port Klang has increased from US$1,200 to US$4,100.

“In addition, some shipping lines have imposed General Rate Increase (GRI) or Recovery Rate (RR) plans to manage their business costs due to the high demand from the global shipping market, which puts Malaysian exporters in an even more difficult situation,” the federation says in the statement.

It adds that large importers already enjoying special freight rates with shipping lines owing to long-term contracts are equally badly affected. Shipping lines that used to give large importers more free-time to keep their cargo in the containers at ports to sustain business relations have now reduced the freetime window.

“Shipping lines want the containers back from these importers for the next shipment,” says FMM. The jump in freight costs can only mean higher costs for importers and exporters — costs which will ultimately be borne by consumers.

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Chennai Airport Office: No.10,V.O.C Street, Meenambakkam, Chennai-600 027 Contact: Jaleel, Mob: +91-98407 09198, E-mail:jaleel@insooryaexpresscargo.com Coimbatore Office: No:74, Gowri Maharaja Tower, 2nd Floor, Thiruvallur Nagar, Ramanathapuram Coimbatore-641045, Ph: 0422-2319635 Contact: Arivazhagan.M, Mob: +91-96778 71370 E-mail: bala.cjb@insooryaexpresscargo.com Tirupur / Karur Office: Contact: Arivazhagan.M, Mob: +91-96778 71370 Email: cjb.accounts@insooryaexpresscargo.com

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New Year 2021

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Dec. 30th - Jan. 5th Issue

Decks Cleared For SCI Disinvestment Chennai

T

Port Wings News Network he ministerial committee on divestment has cleared the decks for the privatisation of Shipping Corporation of India (SCI) and approved the proposal to invite bids for the same.

The committee, which includes Finance Minister, Minister for Road Transport and Highways, and

minister representing the respective administrative department, has approved the expression of interest and preliminary information memorandum as proposed by the Department of Investment and Public Asset Management (DIPAM) which spearheads the government’s disinvestment goals.

This comes after the Core Group of Secretaries on Divestment headed

by Cabinet Secretary Rajiv Gauba

had approved conditions for the privatisation of the company.

Based on Monday’s (21 December) share price of SCI, the g o v e r n m e n t ’s stake is valued at about Rs 2,451 crore, with the company

commanding a market capitalisation of Rs 3,845 crore.

Vedanta and Dubai’s DP World are among the companies said to have expressed interest in acquiring a stake in Shipping Corporation of India (SCI).

The roadshow organised by Department of Investment and Public Asset Management (DIPAM) reportedly attracted up to 9 potential investors, including shipping

companies from Norway and South Korea.

While DP Dubai is among the top global players in cargo terminal operations, Vedanta is looking for captive fleet organisation that could support its mining and energy business.

The Union Cabinet on 20 November 2019 had accorded ‘’inprinciple’’ approval for strategic disinvestment of Government of India’s shareholding of 63.75 per cent in SCI along with transfer of management control to a strategic buyer.

The Union government’s DIPAM has appointed RBSA Advisors as the transaction advisor for the privatisation of SCI. In November, the company’s board sought bids for a consultant to undertake de-merger/disposal of its non-core assets (real estate) ahead of its stake-sale and to carry out corporate restructuring for better operational performance.

SCI is largest Indian shipping company with a fleet strength of 59 vessels at present. It runs a fleet of 59 ships, including crude oil tankers, very large crude carriers, petroleum product carriers, liquefied petroleum gas carriers, bulk carriers, container ships and off-shore support vessels.

SCI owns and operates around one-third of the Indian tonnage and has operating interests in practically all areas of the shipping business; servicing both national and international trades.

Shipping Success

15

User Fee Collection Through FASTag Crosses Rs 80 Cr Per Day Chennai

T

Port Wings News Network he toll collection through FASTag first time crossed Rs 80 crore per day on December 24, 2020, with record 50 Lakh FASTag transactions per day, a historical landmark.

With more than 2.20 crore FASTag issued till date, adoption of FASTag by the Highway users has seen unprecedented growth.

With FASTag being mandatory for vehicles from January 1, 2021, the NHAI has made all necessary arrangements to provide seamless movement of vehicles at Fee Plazas. Adoption of FASTag has helped Highway users to save time & fuel at the toll plazas.

The digital transaction has got necessary push through the recent amendment to Central Motor Vehicle Rules.

FASTag is easily available at over 30,000 points of sale (PoS) across the country and mandatorily available at NHAI toll plazas.

It is also available online through Amazon, Flip Kart and Snapdeal.

The programme has partnered with 27 Issuer Banks and, has included several options to simplify its recharge facility such as Bharat

Bill Payment System (BBPS), UPI, Online payments, My FASTag Mobile App, PAYTM, Google pay and others.

In addition, cash recharge facility is also being provided at Point of Sales (PoS) at Toll Plazas for convenience of users.

FASTag uses Radio-frequency Identification (RFID) technology that provide users a smooth and effortless cross-over at Toll plazas

without waiting/halting.

The payment is made digitally through the FASTag linked to the bank wallet. As social distancing has become the new norm, commuters are increasingly looking at FASTag as a toll payment option as it nullifies the chances of any human contact between the drivers and the toll operators. Being an inclusive technological tool for toll collection on highways, FASTag is amore practical and beneficial option.

Implementation of FASTag is one step in the direction of providing safe, smooth and seamless journey to commuters on National Highways.

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16

Dec. 30th - Jan. 5th Issue

7

Can The World Benefit From China’s Economic Resilience Yet Again?

C

Chennai

Port Wings News Network

hina is widely reported to be the first and only G20 economy to recover from the COVID-19 pandemic with growth in 2020.

This reverses the shrinkage of its economy by 6.8 per cent in the first quarter of the year due to the initial lockdown reaction to the viral outbreak – the first on record since 1992 when quarterly GDP statistics started to be officially collected and recorded, reports CNA Industrial production, car sales, domestic airline ticket sales, domestic tourism and retail consumption are all up in China, as students have returned to schools and offices re-opened for business operations – all of which appear to be visible signs of recovery.

RESILIENT DOMESTIC ECONOMY Data from China’s National Statistics Bureau indicated retail sales figures increased 5 per cent year-on-year in November faster than the 4.3 per cent rise the month before. The International Monetary Fund (IMF) is forecasting China’s economic growth at 1.8 per cent in 2020, with official figures show a 4.9 per cent growth between July and September.

Retail spending and factory production were also augmented by demand for work-from-home (WFH) electronic equipment, masks and medical supplies production and exports. There was even a mini-boost from the “Golden Week” holiday consumption, helped by Chinese restrictions on overseas travel as well as incoming restrictions in other countries.

Millions of Chinese tourists were spending on domestic travel and internal tourism. Chinese dutyfree sales also soared due to internal tourism during this period. The recovery appears to be expanding into diverse sectors and becoming less dependent on government assistance.

According to the Chinese Ministry of Culture and Tourism, 637 million trips were made within China during the Golden Week holiday with revenues of 466.6 billion yuan (US$69.6 billion) as

the customs duty-free transactions data in Hainan – a top vacation spot – increased by almost 150 per cent from 2019.

China’s central bank governor Yi Gang used the word “resilience” to describe his country’s economic recovery while highlighting this growth’s contribution to the global economy, which the IMF projects will be shrinking by a magnitude that makes it the worst on record since the Great Depression of 1929 to 1933.

In October, IMF projected a 4.4 per cent shrinkage in the global economy.

STILL, EXPORTS REMAIN IMPORTANT China was early in proclaiming control over COVID-19 in March. Since then, the Chinese state was fast to implement economic stimulus in the form of tax cuts and lower interest rates to re-capitalise local governments and lower lending rates for businesses.

China did not follow the United States, European Union (EU) and Japan in coming up with massive stimulus packages of US$1 trillion or more out of worries that such measures would add on to already-high Chinese debt.

China’s sterling economic results appear to have given rise to voices both within and outside of China that its tough COVID-19-mitigation measures – lockdowns, travel restrictions, massive testing and quarantining in large-scale facilities, among others – have worked.

Lingering challenges in Chinese economic recovery remain as unemployment, uneven recovery and growth across different regions, household and corporate debt as well as politicaleconomic disagreements with some major trading partners.

The bounce-back to growth rates at 4.9 per cent is also slightly lower than the expectations of 5.2 per cent by some economists.

In addition, export-led growth appears to remain important for China with the growth rate for exports coming in strongly from September onwards as exports increased by 9.9 per cent for the month compared to September 2019.

DUAL CIRCULATION ECONOMY A Plan B is also in place. Managing global tensions, anti-globalisation forces, unfavourable geopolitics and slower overseas demand, the Chinese government has also instituted a “dual circulation economy” – to lower dependence on external markets for economic growth while boosting local consumption and accelerating technological innovations. It is still early to tell the full impact of such initiatives.

As the dual circulation mechanism was being set up, China’s industrial output continued to expand in November for the eighth straight month. Official surveys indicated Chinese factories’ activity level increased at the fastest rate in more than three years in November while growth in the services sector reached a multi-year record.

Chinese manufacturing grew in November at the fastest rate in 10 years. China’s Caixin Market Manufacturing Purchasing Managers’ Index

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#5A/54, Caldwell Colony, 1st Cross Street, Tuticorin - 628 008. India. Phone: +91 461 2375277, L.Anand Morais - Managing Director Mob: +91- 98421 27042 anand.morais@frontiershipping.co.in www.frontiershipping.co.in (PMI) increased from 53.6 in October to 54.9 in November.

Consumer demand is facilitating Chinese manufacturers’ recovery to almost the same levels as its pre-pandemic economy, helped by an increase in global demand.

If ever China needed a reminder, this was a sign to show that China needed the international community for sustainable recovery since industrial exports remain crucial for China’s economic growth. China’s e-commerce tech giants have also contributed to this optimistic streak of growth in November by holding the yearly online Singles’ Day sale events, pushing up Chinese consumption and demand for smaller consumer items manufacturing firms which rushed to meet those orders.

For instance, Alibaba and JD.com alone saw US$115 billion of sales over the period, approximately twice the level of last year. Partly because of this annual sales event, retail sales rose 5 per cent on-year.

ENGINE OF GROWTH FOR THE WORLD? China’s recovery is expected to be sustained by global and domestic demand, credit availability through lower lending rates to businesses as well as stimulus policies in the form of tax cuts and lower interest rates that can carry growth over into 2021.

By Dec 21, the one-year loan prime rate (LPR) was maintained at 3.85 per cent while the fiveyear LPR remained at 4.65 per cent, static for eight sustained months after reductions earlier in the year.

Consumer confidence also appears to be enhanced by the absence of large numbers of COVID-19 coronavirus infections.

The conclusion of all these developments is China will likely be an engine of growth in the world economy as it wriggles out of the global pandemic. This was also the case a decade ago during the 2008 to 2009 global economic recession.

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witnessing growth in exports, household spending, and government initiatives to augment demand.

Just like China, global demand was also a factor in Japan’s factory output stabilisation in November.

WORKING TOGETHER AND NOT AGAINST EACH OTHER For China and the world to pull themselves out of this recession, the world’s leading economies must try to mitigate their geopolitical rivalries, as was the case during the 2008 global financial crisis.

China may have the opportunity to work with the incoming Biden administration to change this and work closer with the international community.

For instance, the President Donald Trump-era Sino-US trade deals signed in January can be a platform to work with China to increase acquisitions of US products and services by US$200 billion or more over the period of 2020 to 2021.

These deals are also platforms to work with China to greatly increase Chinese purchases of US farm and manufactured products.

However, unlike the global financial crisis, China is more integrated now into economic architectures, especially those with Asian countries.

For instance, Japan and China are now both members of the Regional Comprehensive Economic Partnership (RCEP) while the three major countries of Northeast Asia – China, Japan and Korea – are looking to build closer economic ties among themselves, including a trilateral free trade agreement. These closer economic and trade links are important if Asian countries are to benefit from China’s recovery as it is also the largest export market for most of them.

It is because of China’s position as a node in the global and regional economy that its recovery will help drive the world to come out of this slump sooner, if the world’s leading economies can once again work together in accordance with their national interests.

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CHOLA LOGISTIKS PVT LTD CONTAINER FREIGHT STATION

Then, while many countries struggled to come out of the slump, 98 per cent of China’s workers regained employment by 2010 whereas its economy grew by 11.9 per cent in the first quarter of that year due to a US$586 billion stimulus package. China’s growth then contributed to the global economy coming out of the recession.

It looks like, history may repeat itself this time as the Chinese economy remains the main bright spot in an otherwise gloomy global economic outlook.

This is especially so since the US, the world’s biggest economy, is currently coping with the winter wave of the coronavirus.

In October, the IMF projected the US economy to contract by 4.3 per cent for the year while important European economic pillars like France and Germany are projected to face contractions of 9.8 per cent and 6 per cent respectively for 2020.

The world’s third-largest economy Japan also saw its economy pick-up from July to September

Happy New Year

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Dec. 30th - Jan. 5th Issue

17

CONCOR Discontinues Coastal Shipping Operations

S

Mumbai

Port Wings News Network tate-run Container Corporation of India Ltd (CONCOR) has discontinued its coastal shipping operations — started with much fanfare — in a blow to the government’s plan to promote an alternate and environment-friendly mode to transport goods. reports BusinessLine.

The rail hauler is working on a new model — possibly a slot arrangement with container carriers — to service customers, sources said.

The development comes at a time when the Sagarmala Development Company Ltd (SDCL) has invited expression of interest to operationalise specialised vessels on select origin-destination routes in coastal areas and inland waterways from Indian companies engaged in inland barge and river sea vessel operations.

Covid disruptions SDCL is a Central public sector undertaking under the administrative control of the Ministry of Ports, Shipping and Waterways.

SDCL is looking to leverage the country’s long coastline to ensure faster and hasslefree transportation of passengers and cargo through specialised vessels to destinations that are currently accessible through long and tortuous road journeys and to develop requisite infrastructure for smooth handling of such vessels.

CONCOR entered coastal shipping in January 2019, linking Deendayal Port Trust in Kandla with V O Chidambaranar Port Trust in Tuticorin with stops at New Mangalore Port Trust and Cochin Port Trust by a weekly call.

The operations were halted after the 59th

sailing on March 27 in the wake of the Covid pandemic.

CONCOR had picked Vishwa Samudra Coastal Lines Ltd on a tender to launch the Western coast service, seeking to benefit from the impetus given by the government to the waterway mode to decongest road and rail.

The ten-year contract deployed two coastal ships, each capable of carrying as much as 700 twenty-foot equivalent units or TEUs with maximum gross weight of 21,000 tonnes (cargo plus container weight).

The two ships were idling between March 27 and June after which they were off-hired and returned to Vishwa Samudra Coastal Lines who, in turn, returned them to their owners, Mumbai-listed Shreyas Shipping & Logistics Ltd. Vishwa Samudra had hired the ships from Shreyas for ten years to be deployed exclusively on CONCOR’s coastal services.

Seaport Cargo Logistics Pvt Ltd, a unit of the Hyderabad-based CVR Group, the former promoter of Krishnapatnam Port, holds a 60 per cent stake in Vishwa Samudra Coastal Lines with Hyderabad-based Vm Logistics Consulting LLP holding the balance stake in the joint venture company.

The pandemic also disrupted CONCOR’s plan to launch a similar service on the eastern coast linking Chennai Port with Dhaka in Bangladesh through Vishwa Samudra Coastal Lines.

Wishing you all a Happy & Prosperous New Year 2021

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Union Demands Maersk Stop Forced Redundancies

N

Chennai

Port Wings News Network autilus International, the union for maritime professionals, has demanded that AP Moller Maersk, end forced redundancies on its Dutch flagged vessels.

The union presented a petition to Maersk management urging that 24 Dutch seafarers at risk of being dismissed be offered alternative employment across the company.

The world’s largest containership owner recently sold its five remaining ships which sail under the Dutch flag. Following the sale, Maersk announced that Dutch Captains and Chief Engineers could remain in service, but that another 24 Dutch seafarers on the fleet

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26

YEARS

will be made redundant.

Nautilus International deputy general secretary Marcel van den Broek said: “It is incomprehensible to us and our members that a profitable company like Maersk, with over 300 ships in service, would not be able to find jobs for all 24 Dutch seafarers on their fleet in addition to the Dutch Captains and Chief Engineers.

“Our members do not accept this and demand that Maersk will immediately withdraw all announced layoffs.

“A memorandum of understanding (MOU) on job security was concluded in 2011 between Nautilus and AP Moller Maersk. We still consider this agreement to be applicable.”

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18

Vessel Position at Terminals - (30.12.2020 To 06.01.2021)

Dec. 30th - Jan. 5th Issue

7

CITPL - Chennai

CCTL - Chennai Agent/Line

Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

MOGRAL

SHR

CGP/HAL/PRT/KAK

31/12

01/01

CI3

ATHENS BRIDGE

114

ONE

Port Kelang(North port) – Singapore,Shangha

COST

TCI ARJUN

TSL

Port klang

31/12

01/01

FME

SUEZ CANAL

20008E

TST

Port Kelang(North port) – Singapore,Shangha

03/01

ECH

SSL KUTCH

SHR

CGP/HAL/PRT/KAK

29/12

30/12

MD1

TRF KAYA

1701E

BTL

03/01

ECH

SSL KOCHI

SHR

CGP/HAL/PRT/KAK

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

ETA

ETD

Service

Vessel Name

01/01

02/01

CCG

02/01

03/01

02/01 02/01

Voy

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin

Kattupalli 30/12

31/12

CTS

MV.VLADIVOSTOK

165S

FAR SHIPPING

COLOMBO-TUTICORINCOLOMBO

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

1-1

2-1

TUX

MV.OEL SHARVAN

20019

TWF

COLOMBO-TUTICORINCOLOMBO

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

2-1

3-1

BOX

MV.X PRSS COTOPAXI

20010S

BTL

COLOMBO-TUTICORINCOLOMBO

3-1

4-1

CTS

MV.VLADIVOSTOK

166S

FAR SHIPPING

COLOMBO-TUTICORINCOLOMBO

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

30/12

31/12

CCG

MESSINI

108E

EMC

30/12

31/12

ACS

HYUNDAI DUBAI

002W

HMM

2-1

3-1

IVX

ASIATIC KING

001W

GOL

4-1

5-1

C13

ATHENS BRIDGE

114

ONE

Tuticorin,cochin,Pipava, Kandla,Jebel ali

NSICT - Mumbai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

30/12

31/12

BLUENILE

TIM S

MSK

31/12

1-1

IIX

ARTENOS

MSK

Nhava Sheva, Mundra, Port Qasim, Singapore

31/12

1-1

ADHOC

NORDMED

RIS

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

1-1

2-1

MIDAS

ALDI WAVE

CCA

Nhava Sheva, Mundra, Port Qasim, Singapore

1-1

2-1

AIM

ALS VENUS

CCA

02/01

03/01

MWE

MAERSK BROOKLYN

ONE

02/01

3-1

IIX

KASHAN

MSK

03/01

04/01

AIM

X PRESS KARAKORAM

IRI

3-1

4-1

MECL

MAERSK KINLOSS

HLI

Colombo,Damietta Piraes Rotterdam, London

5-1

6-1

ME2

MAERSK GAIRLOCH

MSK

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

05/01

06/01

MESAWA

LEONIDIO

MSK

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

06/01

07/01

BLUENILE

UNI FORTUNA

MSK

ETD

Service

Vessel Name

3-12

4-12

TIP

3-12

4-12

2-12

Voy

• Shipping • Clearing • Warehousing • Forwarding • Air Freight • Transporting 17/11A, Halima Complex, First Floor, Behind Ramiah Lodge, Palai Road, Tuticorin - 628 002. Tel: 0461 - 4984442, Mobile: 99440 50207 Email: srivinayagalogistics@gmail.com

Five South Korean Shipping Companies Form K-Alliance

Nhava Sheva, Mundra, Port Qasim, Singapore

APM Terminal - Mumbai ETA

Sri Vinayaga Logistics

Agent/Line

Calling Ports

XPRESS GUERNSEY

SEC

Jebel Ali, Mundra,Hazira,Nhava Sheva

CWX

TOMMI RITCHER

SEC

3-12

ME3

MAERSK KYRENIA

MSK

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

1-12

2-12

FM3

ALEXANDER BAY

MSK

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

31/12

1-1

MINA

PAXI

HLI

Jebel Ali, Mundra,Hazira,Nhava Sheva

31/12

1-1

UIG

AS ROBERTA

ESA

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

30/12

31/12

CWI

ST ISLAND

ESA

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

VCTPL, Vizag ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

30/12

31/12

CHX

VENETIA

051W

MSK

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

31/12

1-1

MDM

TRF KAYA

1701E

BTL

Colombo

1-1

2-1

FME

SUEZ CANAL

20008E

TSL

Port Kelang(North port) – Singapore,Shangha

2-1

3-1

ADHOC

RHL AURORA

SH051R

MSC

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

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.

F

Chennai

Port Wings News Network ive South Korean container shipping companies are establishing the Korean Maritime Movement Alliance (K-Alliance) in an effort to strengthen competitiveness in Southeast Asia and achieve cost synergies.

The country’s Ministry of Oceans and Fisheries (MOF), Korea Maritime Promotion Corporation, and five carriers including SM Line, HMM, Sinokor Merchant Marine (known as Janggeum Merchant Marine), Pan Ocean and Heung-A Shipping have reached a basic agreement to create the first national shipping alliance.

Due to COVID-19 related restrictions, the signing ceremony was held virtually on December 23, 2020.

As informed, the agreement aims to reinforce cooperation between national liner companies within the alliance scheme proposed by MOF and Korea Ocean Business Corporation (KOBC) and strengthen the competitiveness of national carriers in Southeast Asia where growth potential is said to be high.

It is one of several initiatives of the Korean government aimed at supporting and rebuilding the shipping industry

following the bankruptcy of Hanjin Shipping.

According to MOF, domestic container shipping companies have a combined market share of 40 per cent or about 190,000 TEUs on the South Korea – Southeast Asia route out of a total capacity of 480,000 TEU. However, their market share has been declining due to ‘aggressive expansion’ of global shipping companies.

Specifically, the cooperation of the five companies will be based on fleet sharing arrangements, the reduction of the number of redundant vessels and vessel calls as well as the opening of new routes. This is expected to result in cost savings and improved quality of service. Moreover, the alliance partners will be able to jointly order and deploy ecofriendly ships and to jointly use port facilities and containers.

The remaining six Korean carriers may join the K-Alliance in the mid to long term, MOF added.

In the future, the alliance will also seek to cooperate with other shipping companies in Asia as well as global container shipping alliances such as THE Alliance.

The K-Alliance is scheduled to officially start operation in the second quarter of 2021.

Best Wishes for a Happy & Safe New Year 2021

A.M.AhamED & CO • Custom House Agent • Stevedores

Our Services:

• Steamer Agents • Warehousing

• Transports • Air Cargo

Head Office: 205 Linghi Chetty Street, Chennai - 600 001  044-2523 0066 Our Branches: 15, Pereira Street, Tuticorin - 628 001  0461-400 0220 / 0461-232 1786 | Email: info@amahamed.com | Website: www.amahamed.com

Dec. 30th - Jan. 5th Issue

K.S.R.Freight Forwarders (P) Ltd. Wishing you all a Happy & Safe New Year 2021 H.O.Chennai: #.48/39, Wavoo Mansion, 6th Floor - Annex, Rajaji Salai, Parrys, Chennai - 600 001.

Tel: +91 (44) 2524 3623-28 Fax: +91 (44) 2524 3629 E -mail: murthy_krishna@ksrindia.net / pradeak_sk@ksrindia.net oUR bRANCHES mundra / kandla / Ahemadabad / mumbai / hyderabad / vIZAG / Bengaluru mYSORE / cOCHIN / tUTICORIN / nEW dELHI / kOLKATA / Petrapole / Bhopal / Tirupur

www.ksrindia.net oUR STRENGTH LIES IN qUALITY SERVICE

19

20

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

Dec. 30th - Jan. 5th Issue

DBGT Wishes you to achieve your goals this Year and reach your destination through safe journey.

May this Year 2021 bring new happiness, new goal, new achievements, and a lot of new inspirations Happy New Year 2021

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.