JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.

E-MAIL : Robert.sands@jupiterseaair.co.in   Mobile : +91 98407 85202

 

Corporate News Letter for Wednesday  September 28, 2022.

                                                                                                                  

 

Today’s Forex Rates : Source – The Economic Times

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	81.58	-0.049995	-0.061246	81.49	81.63	81.3025- 81.645
EUR/USD	0.9601	-0.0008	-0.083257	0.9609	0.9609	0.9584- 0.9671
GBP/INR	88.0316	0.8601	0.986675	87.8543	87.1715	87.5464- 88.3783
EUR/INR	78.3782	-0.331306	-0.420923	78.5455	78.7095	78.3652- 78.6938
USD/JPY	144.809	0.059006	0.040764	144.75	144.75	144.063- 144.852
GBP/USD	1.074	0.0051	0.477127	1.0689	1.0689	1.0653- 1.0838
DXY Index	113.638	-0.464996	-0.407523	114.025	114.103	113.332- 114.025
JPY/INR	0.5653	-0.0014	-0.247043	0.5644	0.5667	0.5627- 0.5658

::                    Sea Cargo News               ::

Adani Ports scures Rs 25,000 cr Tajpur Port project in West Bengal: Report

The Adani Group will develop a port in West Bengal at a planned investment of more than Rs 25,000 crore ($3 billion). Gautam Adani-led Adani Ports & Special Economic Zone Ltd., was selected on Monday to develop the Tajpur deep sea port, Bloomberg reported, quoting a statement from the state government.

 

The greenfield project will entail a total investment of Rs 25,000 crore ($3.1 billion), of which Rs 15,000 crore will go toward port development and the rest toward building related infrastructure, it said. 

The latest win adds more muscle to India’s largest private sector port operator, which already has a 30% domestic market share and has been securing global contracts, including the Haifa port project in Israel and a port terminal in Sri Lanka.

 

The local government, according to the statement, expects to create 25,000 direct jobs and over 100,000 indirect jobs through this port which is about 105 miles from the state capital of Kolkata. A wholly-owned subsidiary of Adani Ports signed a pact last week for the modernization of a berth at the Haldia port in West Bengal.

 

 

Adani Group seeks to enter steel sector with privatization of RINL

Adani Group, a business conglomerate with diverse interests in cement, ports, energy and logistics, is planning a foray into steel by bidding for state-run steel producer Rashtriya Ispat Nigam Limited (RINL) which has been put up for privatization, according to a number of local media reports on Wednesday, September 21.

Though Adani Group has not yet commented, reports suggest that it will bid more aggressively than other likely participants like Tata Steel and JSW Steel Limited. Adani Group recently completed the acquisition of two cement companies - ACC and Ambuja Cements - from Holcim, Switzerland, in a deal estimated at $10 billion, to emerge as the second-largest producer of the commodity in the country.

 

Adani Group in January this year announced a pact with POSCO of South Korea to jointly invest $5 billion in constructing a greenfield steel mill project at Mundra, in the western state of Gujarat, based on green hydrogen.

RINL operates a 7.3 million mt per year capacity steel mill at the southern port town of Visakhapatnam, with the government already approving privatization through 100 percent sale of equity currently held by the government.

 

Supply-chain disruptions in China likely to appear in coming months: Moody's Analytics

 

 Volatility in supply-chain disruptions in and around China is "bound to appear" in the coming months as the country will likely maintain its targeted zero-Covid policy through at least the end of this year, said Moody's Analytics.

 

Also, regional shipping disruptions could be further exacerbated if China's reactions to evolving US-Taiwan relations lead to the kind of military drills that limited shipping through the Taiwan Strait in August, it added. It is the weakness of China's economy -- especially the exports -- that weighs on the broader Asia-Pacific economy.

 

"The economy of the Asia-Pacific region is being tested. Export markets are weakening, inflation is rising, and the multiple imbalances holding back China's economy have only just begun to abate with no clear signal yet of the future," the analysis authored by Steven Cochrane, Chief Asia-Pacific Economist with Moody's Analytics said. Also, the housing market is the other major factor of weakness in China.

Cargo vessel capsizes and sinks at Turkish port

 

Source: Turkish Ministry of Transport and Infrastructure.

General cargo vessel Sea Eagle, which was loaded with containers, lost stability and tumbled over during offloading operations at Iskenderun port in Turkey on 18 September.

The Turkish Ministry of Transport and Infrastructure said that the efforts to balance the ship did not yield results and, therefore, Sea Eagle sank at the berth. All crew members on board were evacuated and no loss of life or injury was reported, according to the ministry. 

However, there was a small amount of fuel leakage observed, and necessary precautions and measures have been taken against the possibility of increasing environmental pollution.

During the incident, 24 boxes went overboard, all of which have already been removed from the sea. The ship arrived at Iskenderun port on 17 September from another Turkish port in Mersin.

Captain of stranded ship in Kaohsiung in failed escape attempt

Uniprofit / Credit: Tommy Chen.

The captain of a general cargo ship which had been stranded for half a year in Kaohsiung, Taiwan, after its ship owner failed to pay the port for damages, tried to escape by going ashore on 18 September without permission.

Unluckily, the Chinese captain was caught by the police and sent back to the 1995-built 8,400 dwt ship Uniprofit. All 16 crew members, 11 Chinese and five Indonesians remain stranded on Uniprofit as the owner has yet to respond to a Taiwanese court order to pay approximately US$1.91 million in towing fees after the ship ran aground in waters off Fugang Fishery Harbour in Taitung county on 8 March.

The owner of Uniprofit engaged a Taiwanese salvage company to tow the vessel to Kaohsiung, where it has remained since 22 March. However, the vessel owner failed to pay for the towing service, causing the salvage company to apply for Uniprofit to be arrested. Under the court order, the ship’s crew is obliged to stay on board, although the ship agent continues to supply daily necessities to the seafarers.

At the time of its grounding, Uniprofit was carrying 149 containers from Yantai, China, to Bahodopi, Indonesia. Databases indicate that Uniprofit is owned by Hong Kong-registered Sinounion Shipping Services, whose contact numbers are not known.

Frustrated with their detention, the crew hung a white banner on the ship in June, expressing their wish to return home. However, Uniprofit could not be released until its owner settled its towing arrears. Taiwan’s Maritime and Port Bureau said that it has applied to the courts to appoint a receiver for the ship, so that the crew may disembark.

UK on alert amid upcoming rail strike actions

While disputes and strike actions are underway at the United Kingdom's major container ports, Liverpool and Felixstowe, supply chain challenges in the UK seem to continue with the National Union of Rail, Maritime and Transport Workers (RMT) announcing a 24-hour strike action.

In particular, railway workers on 15 train operating companies will take strike action on 1 October in a row over job security, pay and working conditions.

RMT said the one-day walkout, which is expected to cause significant disruptions in the UK railway network, comes after the union received no further offers from the rail industry to help come to a negotiated settlement.

In separate disputes, Arriva Rail London members, Hull Trains and bus workers at First Group Southwest will also take strike action on the same date. 1 October is set to see strikes by a number of unions in various industries.

RMT general secretary, Mick Lynch commented, "Transport workers are joining a wave of strike action on 1 October, sending a clear message to the government and employers that working people will not accept continued attacks on pay and working conditions at a time when big business profits are at an all-time high."

Lynch went on to point out, "The Summer of Solidarity we have seen will continue into the Autumn and Winter if employers and the government continue to refuse workers reasonable demands. We want a settlement to these disputes where our members and their families can get a square deal. And we will not rest until we get a satisfactory outcome."

The UK rail dispute will see strike action on Network Rail, Chiltern Railways, Cross Country Trains, Greater Anglia, LNER, East Midlands Railway, c2c, Great Western Railway, Northern Trains, South Eastern, South Western, RailwayTranspennine Express, Avanti West Coast, West Midlands Trains, and GTR (including Gatwick Express).

There will also be separate strikes on 1 October, involving First Bus South West (Somerset), First Bus South West (Kernow Cornwall), Arriva Rail London, Carlisle Support Services (Revenue Security Officers on the Arriva Rail London contract) and Hull Trains.

Meanwhile, train drivers will walk out for two further days of strike action, 1 and 5 October in another ongoing dispute over pay. Drivers previously took strike action on 30 July and 13 August.

Mick Whelan, general secretary of the Associated Society of Locomotive Engineers and Firemen (ASLEF), UK's train drivers' union, commented, "We would much rather not be in this position. We don’t want to go on strike – withdrawing our labour, although a fundamental human right, is always a last resort for this trade union – but the train companies have been determined to force our hand."

Yang Ming adds new 11,000 TEU container vessel

Yang Ming Marine Transport Corp. has added one new 11,000 TEU container vessel, namely YM Trillion, which is chartered from Shoei Kisen Kaisha, Ltd. and built by Imabari Shipbuilding Co., Ltd.

YM Trillion was named and delivered to Yang Ming at a ceremony held at Imabari Marugame Shipyard on 21 September. YM Trillion will be deployed on Yang Ming’s Trans-Pacific service PN3 and is expected to maximise capacity utilisation.

The port rotation of PN3 is Hong Kong - Yantian - Shanghai - Pusan - Vancouver - Tacoma - Pusan - Kaohsiung – Hong Kong.

To further strengthen Yang Ming’s mid- to long-term operational efficiency, the Company ordered a total of fourteen 11,000 TEU newbuildings through long-term charter agreements with ship owners. With the delivery of YM Trillion, all fourteen 11,000 TEU ships have joined Yang Ming’s fleet.

CMA CGM orders seven new biogas-powered vessels to serve French West Indies

French ocean carrier CMA CGM has confirmed the order of seven new container vessels, powered by biogas, aiming to upgrade its services to the French West Indies.

Four of the new boxships will have 7,300 TEU capacity and the other three vessels will have 7,900 TEU capacity, while all the ships will have 1,385 reefer plugs.

The newbuildings will be delivered gradually as of 2024 and are expected to serve Guadeloupe and Martinique, replacing smaller ships dedicated to routes between the French West Indies, France and Europe.

Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group, made the announcement about the rollout of the seven new container ships during a trip to Martinique and Guadeloupe.

In order to cope with these larger capacity vessels, the CMA CGM Group said it will help to modernise and increase the capacity of the biggest shipping ports in Guadeloupe and Martinique, as well as making wharfs larger.

The Marseille-based box line noted it operates dedicated shipping lines to Guadeloupe and Martinique and is involved in structural actions to help boost the local economy.

COSCO delays investment in Hamburg terminal

 

COSCO Shipping Ports, the port division of China's COSCO group, is delaying the expected completion of its proposed acquisition of a 35% stake in Hamburger Hafen und Logistik (HHLA)'s Container Terminal Tollerort (CTT) to year-end.

CTT is one of HHLA's three container terminals in Hamburg, Germany and is now the hub of COSCO Shipping Lines' European services. COSCO Shipping Ports made a bid to invest in CTT on 21 September 2021.The pushing back of the expected date of completing the acquisition follows concerns raised by Germany's Federal Ministry of Economics and Technology about the potential increased Chinese government's influence in Europe.

COSCO Shipping Port's move to acquire Greece's Piraeus port in 2009, during the eurozone crisis, was also contentious. German Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck was quoted by Reuters this month as saying that trade is "a new instrument of power". Habeck signaled that he objected to COSCO Shipping Port investing in CTT, citing concerns about other Chinese takeovers in other industries.

In August, Chinese container manufacturer CIMC attempted to acquire Maersk Container Industry mixed by the US Department of Justice. In a filing to the Hong Kong Stock Exchange on 22 September, COSCO Shipping Ports said that the CTT acquisition is subject to all government and regulatory approvals being granted.

Prior to this development, HHLA and Hamburg mayor gave the go-ahead for the transaction.

:://              AIR CARGO NEWS             //::

Amazon Air slows expansion as e-commerce demand flattens

Amazon's fleet of leased or outright owned freighters is growing. Photo by Dave Lindberg

Amazon Air has “greatly reduced” its overall rate of expansion since March in response to a slowdown in e-commerce sales figures, according to new research. 

Total Amazon Air flight activity grew by 3.8% between August 2021 and March 2022, compared to 14.3% during the previous six months, found researchers at Chaddick Institute of Metropolitan Development at DePaul University in Chicago.

“The slowdown reflects Amazon’s move to slow the rate of facility expansion, the flattening trajectory of online sales, and softer demand for air-cargo services in general,” said the institute’s research report.

“The reported size of Amazon Air’s fleet remained at 87 to 88 planes for most of the period from March to September, although several planes appear to be imminent.”

Amazon Air, which has invested heavily in its operations in recent years, grew from 187 flights per day in March 2022 to 194 flights in September. Its growth over the past year has been around 18.4%.  Partner flights also appear to have stayed about the same, said the research.

The report also found the company has scaled back plans for facilities and warehouses and reduced its existing stock, a distinct change from its previous “overly optimistic estimates” though concerns about a slow Christmas season may be the reason for some of the reductions, said the report.

Despite a downturn in its overall expansion, Amazon Air is heavily expanding at CVG.  This investment has boosted average Amazon Air activity there from 26 to 44 flights daily, a 71% increase.

There are also now more night-time flights that have positioned the airline to deliver “more next-day fulfilment from its vast warehouse network in Kentucky, Indiana, and Ohio. However, in July, it said plans to develop air cargo facilities at Newark Liberty International Airport in New Jersey had been scrapped.

Amazon Air is prioritising growth in Europe, particularly in Leipzig and Milan, and partner-flight activity in Europe remains extensive, found the report. Intra-European Amazon Air flights grew from 36 to 44 daily between March and this month, not including partner flights.

Since March, Amazon Air has also added three US airports to its network: El Paso, Texas; Las Vegas, Nevada; and Lihue, Hawaii.  Amazon Air’s expanding capabilities at CVG augment “Buy with Prime,” a programme announced in April that allows merchants to offer fast and free delivery to Amazon Prime members, said the research.

The report concluded that: “Amazon’s CVG hub has moved notably in the direction of becoming a large-scale and night time operation akin to that of FedEx’s and UPS’s largest hubs.

“At the same time, its operations remain much more decentralised than its competitors.”  Through the rest of this year and early 2023, the institute expects a resumption in the growth of Amazon Air’s fleet, with the possible addition of 7-9 planes by March 2023, but said it no longer expects its fleet to surpass 100 by the end of this year.

The institute also expects further development of night-time operations at CVG and at other hubs and the development of an expansive network of “overnight” flights in Europe, mirroring the overnight network developing in the US.

It added that while it doesn’t anticipate Amazon entering the consumer-to-consumer segment in the near future, it does expect the company to grow its share of the delivery business being handled by FedEx, UPS, and the US Postal Service “that does not involve purchases on its online platform, in part due to rollout of Buy with Prime and Fulfillment by Amazon”.

In February this year, Air Cargo News reported that Amazon is looking to ramp up its freight forwarding business.  FedEx has also recently announced cost reduction initiatives.

ASL sees revenues soar on the back on long-haul cargo

ASL Airlines Ireland B737-800BCF. Photo: ASL Aviation Holdings

Aircraft lessor ASL Aviation Holdings reported “strong” financial figures last year on the back of its long-haul cargo operations. The company reported a 24.4% year-on-year increase in revenues to €1.1bn, while profits reached €43.6m.

“The year saw strong performances across all business segments with ASL’s long-haul freight routes, particularly between Europe and China, being a key factor,” the company said.

ASL chief executive Dave Andrew said: “We executed a very positive, forward-looking strategy to control costs through the Covid crisis whilst investing in aircraft and new technologies to meet the requirements of our group and our customers to reduce and eventually eliminate carbon emissions.

“This parallel approach saw us remove operational duplication across our airlines and the creation of centres of excellence. Simultaneously we began a major investment programme in our narrowbody fleet including orders for up to 40 737-800 Boeing Converted Freighters [BCFs].”

ASL’s Boeing 737 Freighter fleet is the largest in Europe and this summer saw ASL’s Next Generation (NG) B737-800 aircraft overtake the number of classics in the Group fleet for the first time.

ASL now operates 54 B737NG aircraft with fuel-burn and emissions running an average 15% lower than its 51 Boeing 737-400 Classic aircraft.  In March, the company placed an order for up to 20 additional B737-800BCFs.  The order will see the entry into service of the twentieth converted aircraft later this year.

Chief financial officer at ASL Mark O’Kelly, says: “We’re very pleased with these results which show the strength of our business model and the critical nature of the services we provide.”

The figures include results from ASL’s airlines in Ireland, Belgium, France and the UK, as well associate and joint-venture carriers in Thailand and South Africa.  The Group has a fleet of 130 aircraft that includes 7 aircraft types ranging from the turbo prop ATR 72 to the Boeing 747.

In April, ASL secured a $125m debt facility from Goldman Sachs that will be used as part of its fleet renewal programme.

Two have and to fold

Now you see it, now you almost don’t! Image: VRR/Canva/CFG.

VRR will be unveiling a sequel to its unique folding AAY at the World Cargo Symposium 2022 in London, England, next week (27-29SEP22): the world’s first fully collapsible AAX. A practical, cost-efficient, and sustainable answer to an eternal industry pain-point – the repositioning of empty containers. CFG fired a mini-interview over to the VRR press department, and here are the answers.

 

Back in 2019, when VRR announced the upcoming launch of the world’s first fully certified, collapsible AAY container at the ULD Care conference in Montreal that September, the accompanying video inspired me to write about origami magic.

Now, three years later, VRR has brought out a repeat, but on a bigger scale: the AAX. Nevertheless, it is the same principle: “You need just two people and two minutes. We’ve kept everything as simple as possible for ground handlers. Even the moving parts are simple to maintain and replace,” Geert van Riemsdijk, Managing Director of VRR, promises. The release also underlines that the collapsible AAX is easy to use and repair. He points out: “You don’t need tools to put it up or down, and there’s no disassembly involved. The collapsible AAX can be used just like the standard AAX. It has the same perfect-fit shape and the same durability. The only difference is that it can be folded and stacked. Now you can fly three or four empty containers for the price of one.”

CFG wanted to know more and asked VRR “What learnings from the AAY flowed into the design of the AAX?”
VRR: We mainly learned that there is more need for an AAX Collapsible than a AAY collapsible. This is because the B737 (in which the AAY is used most often) mainly flies shorter distances, while the biggest imbalance issues are with flights over the oceans. So, with the AAX, we expect to be able to help a lot more customers solve their imbalance issues.

CFG: How many AAYs have been sold since 2019?
VRR: The AAY collapsible was introduced just before Covid. Due to the crisis, customers had much less to spend, the market was hesitant, and we did not promote a lot. We sold several containers to ACL, which was our launch customer back then. They are still very happy with the collapsible containers.

 

CFG: Do you have a launch customer already for the AAX?
VRR: We will be announcing our launch customer after the WCS.

 

CFG: When will the first AAX be deployed?
VRR: In the first half of 2023

 

CFG: What is next in the collapsible program?
VRR: Currently, we are still working on the Air7. Our main focus is getting it certified.

Say Goodbye to ULD Imbalances with First Ever Collapsible AAX
The AAX press release title “say goodbye to ULD imbalances”, underlines the pain-point that has plagued the industry ever since the first containers were designed. If it is not actively being used to transport goods, a ULD takes up a lot of space – both in a warehouse and in an aircraft. And space costs money. “Our latest container solves a very real problem facing all ULD fleet managers: what to do with empty containers after a consignment has been shipped,” Geert van Riemsdijk, Managing Director of VRR, says. “Until now, it’s been a case of leaving them behind or returning them unloaded. It’s not much of a choice. Well, now they have a third option. They can fold them and stack them for storage or repositioning.”

Sustainability is key
Not only does it burn money to shift empty containers, but it goes without saying that moving empties that use up space, is a slow process (you can only transport a limited number at a time), and it also has a negative environmental impact. Flying air is not sustainable. VRR’s latest innovation, however, offers a faster, cheaper, and more sustainable solution. Since the AAX can be stacked “up to three high on the main deck of a B767 and four high on the lower deck of a wide-body plane” (or even six high in a shipping container), greater numbers can be shipped at a time, taking up less pallet space in an aircraft, and enabling more efficient use of all other positions.

“These days, airlines are having to focus on reducing their CO2 footprint,” Van Riemsdijk, concludes. “VRR recognizes that challenge, which is why we’ve put so much effort into producing collapsible containers. At the end of the day, we all have a part to play in flying the skies sustainably.”

TIACA sustainability programme launch customers announced

Photo: Shutterstock

 TIACA has announced the launch customers for the air cargo industry’s first multi-sector sustainability verification programme. Following the launch of the TIACA BlueSky programme at the March Executive Summit, a successful pilot programme was run with airline and ground handling companies.

The BlueSky programme, open to the entire industry, not just TIACA members, is now ready to launch live operations with the first wave of participants representing organisations from the airline, airport, freight forwarder, ground handler and GSSA sectors.

Participants of the programme include Amsterdam Airport Schiphol, Astral Aviation, Brussels Airport, CHI (Cargo Handling International), Edmonton International Airport, Etihad Cargo, Flexport, HACTL (Hong Kong Air Cargo Terminals Limited), Strike Aviation, and Swissport.

Phase one of the programme is an evidence-based desktop verification process designed to assess the applicants’ progress against a number of critical sustainability criteria.

The assessment process is tailored to each industry sector to ensure peer assessments and progress tracking provide maximised value.

Upon completion of the assessment by an independent organisation the participants receive a personalised dashboard highlighting where they currently are against the assessed criteria. 

A subsequent phase will include a full onsite audit option with an in-depth report describing areas of improvement.

“We are very pleased to see such strong launch support from some world class innovative organisations. This programme will enable all participants to assess where they are on their sustainability transformation journey which will collectively demonstrate the leadership of the air cargo industry in tackling this important topic,” said Steven Polmans, TIACA chair.

Etihad Cargo has become the first Middle Eastern carrier to join the programme.

Over the past year, Etihad Cargo has embarked on several green initiatives, which include replacing 3,000 containers from its original aluminium unit load device (ULD) fleet with environmentally friendly lightweight versions.

The carrier has also entered into a memorandum of understanding with B Medical Systems to develop and launch the world’s first airline-specific passive temperature-controlled solution for the transportation of life-saving drugs, vaccines and high-value pharmaceuticals.

Martin Drew, senior vice president global sales & cargo, said: “Participating in TIACA’s BlueSky programme is just the latest step Etihad Cargo has taken to achieve net zero carbon emissions by 2050.

“The assessment process will enable Etihad Cargo to more effectively measure the carrier’s performance and track its sustainability progress as it continues on its sustainability journey, which will benefit Etihad Cargo’s customers and the wider air cargo industry.”

Swissport said its decision to join the programme was part of its efforts to reduce its carbon footprint and to eliminate waste.

“We really wanted to play our part in the TIACA initiative from the start and are proud to be one of the pioneers of their BlueSky Program,” said Nadia Kaddouri, chief strategy and sustainability officer of Swissport.

“As the global market leader in airport ground services and air cargo services, Swissport is committed to making a more sustainable aviation future a reality. We just announced extensive new sustainability goals last week.”

Last week, the handler set goals for the decarbonisation of its operations, waste management and circularity, and for diversity and inclusion among its people.

 

I reckon you have found this information useful. Have a nice day!

Courtesy : CAN, CFG & ISN.

Hope you enjoyed reading the news. Have a nice day.

Thank you and kind regards

 

Robert Sands, Joint Managing Director

 

Jupiter Sea & Air Services Pvt Ltd

Tel : + 91 44 2819 0171 / 3734 / 4041

Fax : + 91 44 2819 0735

Mobile : + 91 98407 85202

E-mail : robert.sands@jupiterseaair.co.in

Website : www.jupiterseaair.com

Branches  : Chennai, Bangalore, Mumbai, Coimbatore, Tirupur and Tuticorin.

Associate Offices : New Delhi, Kolkatta, Cochin & Hyderabad.