JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in
Mobile : +91 98407 85202
Corporate
News Letter for Friday September 01, 2023.
:: Today’s Exchange Rates ::
Source : The Economic Times.
RATES
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
82.78 |
0.040001 |
0.048345 |
82.65 |
82.74 |
82.5875- 82.79 |
|
|
1.0879 |
-0.0044 |
-0.402821 |
1.0923 |
1.0923 |
1.0858- 1.094 |
|
|
105.0491 |
0.322105 |
0.307567 |
105.168 |
104.727 |
105.0179- 105.1992 |
|
|
90.0735 |
-0.005196 |
-0.005768 |
90.2964 |
90.0787 |
90.0611- 90.3153 |
|
|
145.776 |
-0.464005 |
-0.31729 |
146.24 |
146.24 |
145.723- 146.179 |
|
|
1.2692 |
-0.0029 |
-0.22797 |
1.2721 |
1.2721 |
1.2664- 1.2734 |
|
|
103.282 |
0.125 |
0.121175 |
103.106 |
103.157 |
103.009- 103.283 |
|
|
0.5669 |
-0.0001 |
-0.017629 |
0.5658 |
0.567 |
0.5658- 0.5675 |
:: Sea Cargo News ::
Kolkata port to start regular cargo movement through
B'desh: Official
The Syama Prasad Mookerjee Port (SMP) in Kolkata will very soon
start regular cargo movement to the northeastern states through Bangladesh, a
senior official said on Wednesday.
According to an agreement between the two neighbouring countries,
multi-modal transit or transshipment of goods is permitted on eight routes.
Goods arriving from India at Chittagong and Mongla ports can be sent to
Agartala via Akhaura in Bangladesh, to Dawki in Meghalaya via Tamabil in
Sylhet, Sutarkandi in Assam via Sheola, and Srimantapur in Tripura via Bibir
Bazar in Comilla, and vice versa.
"Very soon we are going to start regular operations to
northeastern states through Bangladesh. For that the Ministry of Ports,
Shipping and Waterways is already in talks with the Customs authorities and the
Ministry of External Affairs," SMP deputy chairman (Kolkata) Samrat Rahi
said.
He said that trial runs for the purpose have already been
conducted. He said that once regular movement is started, the northeastern
states will benefit in a big way.
Shipments from India to Russia more than doubled in July
Amid slackening demand for engineering goods from major markets such as the US and China, shipments to Russia continued their uptrend and more than doubled to US$ 123.65 million in July 2023 from US$ 55.65 million in July 2022, a rise of 122.03 per cent, according to a media release issued by EEPC India on Wednesday.
At a total shipment value of US$ 123.65 million, exports to Russia in July were higher than Australia which imported engineering goods worth US$ 115.14 million from India, a 5.7% on-year decline. During the same period, engineering exports to the US declined 10.4% year-on-year to US$ 1.44 billion.
Engineering exports to China also declined 10% year-on-year in
July 2023 to US$ 197.98 million. Notably, engineering exports to Germany
remained positive and grew 2% year-on-year to US$ 346.36 million in July this
year even as the key European economy remained in the grip of a slowdown.
Among 25 key markets for Indian engineering goods which contribute
more than 76% to total exports, 14 countries witnessed a year-on-year decline in
July 2023 while the remaining 11 countries recorded positive growth.
Excluding the export of iron and steel, engineering exports
recorded a higher 6.85% year on year decline in July 2023 but a much lower
3.70% decline during April to July 2023 period.
Steel companies raise concern over imports from South
Korea, China
The domestic steel industry has drawn the government's attention
to imports from South Korea and China saying the consequent lowering of prices
is hurting local producers. Imports of steel products from China surged during
the first quarter of this financial year, even as South Korea remained the
highest steel exporter to India despite a year-on-year decline in shipments.
"A sharp rise in imports of finished steel was recorded in
the first quarter of the current financial year. The surge in imports, driven
by countries with free trade agreements, as well as China, is eating into
domestic demand," Ranjan Dhar, chief marketing officer, ArcelorMittal
Nippon Steel, said. Imports of steel products in April-June stood at 2.23
million tonnes, 31% more than 1.70 mt a year ago.
Imports of metal products, including finished steel, scrap and
ferro alloys, surged during this period. According to official data, imports of
steel from South Korea fell to around 713,000 tonnes in the first quarter of
this fiscal from about 686,000 tonnes a year ago. However, Chinese steel
exports to India surged to about 570,000 tonnes from around 352,000 tonnes a
year ago.
India set to ban sugar exports for first time in seven years
India is expected to ban mills from exporting sugar in the next
season beginning October, halting shipments for the first time in seven years,
as a lack of rain has cut cane yields, three government sources said.
India's absence from the world market would be likely to increase
benchmark prices in New York and London that are already trading around
multi-year highs, triggering fears of further inflation on global food markets.
"Our primary focus is to fulfil local sugar requirements and
produce ethanol from surplus sugarcane," said a government source who
asked not to be named in line with official rules. "For the upcoming
season, we will not have enough sugar to allocate for export quotas."
India allowed mills to export only 6.1 million tonnes of sugar
during the current season to Sept. 30, after letting them sell a record 11.1
million tonnes last season. In 2016, India imposed a 20% tax on sugar exports
to curb overseas sales.
Monsoon rains in the top cane growing districts of the western
state of Maharashtra and the southern state of Karnataka - which together
account for more than half of India's total sugar output - have been as much as
50% below average so far this year, weather department data showed.
Container lines see
earnings plunge 90% in second quarter
After two very profitable years for the shipping lines, the
market is shifting into a post-pandemic normality, as reported by
Sea-Intelligence.
More specifically, while the fourth quarter of 2022 gave a first
glimpse into what this might look like, the first quarter of 2023 was the first
quarter where the carriers’ operating profits took a real hit. Additionally,
this continued into the second quarter of 2023, with the combined earnings
before interest and taxes (EBIT) dropping by 90% year on year to a little over
US$3 billion.
Source: Sea-Intelligence.com, Sunday Spotlight, issue 628
The figure shows the EBIT/TEU of the shipping lines that publish
both their EBIT and their global transported volumes.
"None of these shipping lines were able to sustain their
EBIT/TEU figures in 2023, with the largest 2023-Q2 EBIT/TEU recorded by OOCL of
US$305/TEU. In contrast, the smallest EBIT/TEU in 2022-Q2 was
US$1,377/TEU," noted Sea-Intelligence analysts.
Also, Maersk with US$207/TEU, Hapag-Lloyd with US$298/TEU, and
ONE with US$137/TEU all recorded EBIT/TEU within a much narrower range of
US$130-300/TEU.
In all of this, ZIM recorded a negative EBIT/TEU of -US$195/TEU.
Basically, they lost US$195 for every TEU that they moved in the second quarter
of the current year.
A large reason for the decline in profitability is the decrease
in the freight rates, which fell by 48% to 67%, according to shipping lines'
data. The drop in box volumes has also played a role in the lower profits.
"What is surprising, however, is that ZIM, one of the only
two shipping lines to record an EBIT loss, grew their volumes 0.5% globally,
and by roughly 13% on both Transpacific and Asia-Europe," noted Alan
Murphy, CEO of Sea-Intelligence.
ZIM’s Oceania-Asia service network: Restructuring or Withdrawal?
While Haifa-headquartered ZIM has announced a
"restructuring of its Oceania-Asia service network", the Israeli
ocean carrier seems to withdraw from the specific trade lane.
Trying to take drastic steps to cut its losses after a second
quarter of red ink, ZIM has decided to cover the Oceania-Asia
lane mainly by buying slots from MSC.
In particular, on the Southeast Asia - Australia trade, ZIM's
current Thailand-Fremantle Express (TFX) and New Zealand to Australia (N2A)
services will be withdrawn and will be replaced by slots on MSC's Capricorn and
New Kiwi service.
The revised Capricorn service, which ZIM brands as ZIM Oceania
Express (ZOX), will have the following port rotation:
Singapore – Jakarta – Fremantle – Melbourne – Napier – Tauranga
– Brisbane - Tanjung Pelepas – Singapore
Additionally, the vessels on the updated New Kiwi service, which
ZIM brands as ZIM Asia Oceania (ZAO), will call at the following ports:
Laem Chabang – Singapore – Tanjung Pelapas – Singapore – Jakarta
- Brisbane – Sydney – Auckland – Lyttelton – Port Chalmers - Brisbane - Tanjung
Pelepas – Singapore - Laem Chabang
Furthermore, ZIM's existing CAX service will be replaced by
ZAX/Panda service. The latest service will be operated by both ZIM and MSC
container ships. In particular, the Israeli ocean carrier will deploy three and
the Italian/Swiss box line will deploy four vessels on the new service, all
with a container capacity of 5,000 TEUs.
Starting in October, the new service will have the following
rotation:
Nansha – Hong Kong – Yantian – Brisbane (1st call) – Melbourne –
Sydney – Brisbane (2nd call) – Busan – Qingdao – Shanghai – Ningbo – Nansha –
Hong Kong – Yantian
ZIM seems to replace its three existing services on the
Australia-Asia trade lane with slot charters in two MSC services and a
vessel-sharing agreement for a joint service. Shipping consultancy Linerlytica
said the Israeli shipping company is paying the price for aggressive expansion
during the Covid-fuelled boom.
Linerlytica observed, "ZIM’s woes were exacerbated by its
unfavourable trade mix, with the unprofitable Transpacific and Intra-Asia (and
Australia) routes accounting for 38% and 28% respectively of ZIM’s total
liftings, while it is under-exposed on the Asia-Mediterranean, Atlantic and
Latin America that were still profitable during the second quarter of
2023."
Danny Hoffman, ZIM's executive vice president in Intra Asia,
commented, "Our current Oceania services network will be restructured, in
cooperation with MSC, to enhance reliability and strengthen our customer
offerings. We are embarking on an exciting new phase in our Australia Service,
elevating the level of services provided."
Port of Los
Angeles moves nearly 685,000 TEUs in July
The Port of Los Angeles handled 684,291 TEUs in July, translating to a significant 27% decrease from the previous year's record month.
In particular, loaded imports totalled 364,208 TEUs in the
previous month, a 25% drop from the same month in 2022. However, loaded exports
increased by 6% year-over-year to 110,372 TEUs.
With Asia's demand for empty containers declining, just 209,710
empty TEUs were moved through the port of Los Angeles, represetning a 39% year-over-year
decrease.
Meanwhile, the major container port in the US West Coast has
processed 4,821,670 TEUs in seven months of 2023, which is approximately 24%
less than box volumes in the same period last year.
"Global trade has eased as warehouse inventories of
retailers and manufacturers remain elevated," stated Gene Seroka,
executive director of Port of Los Angeles, who went on to add, "American
consumers are continuing to spend and are likely to find more discounted items
this year as we move into fall fashion and the year-end holiday season."
CMA CGM
announces fumigation requirements to Australia and New Zealand
CMA CGM advises its customers that, in response to the rapid spread of the brown marmorated stink bug (BMSB) throughout Europe and North America, Australian and New Zealand authorities have issued guidelines and instructions to prevent infestations for the 2023/2024 high-risk season (1 September 2023 to 30 April 2024).
As with prior BMSB risk seasons, it is the customer's obligation
to meet treatment and certification/reporting criteria for their cargo before
arrival in Australia and New Zealand, which is classified as either target
high-risk or target-risk goods, according to a statement.
In addition, containers arriving in New Zealand cannot be
fumigated and must be returned to one of the transhipment ports. All costs
related to ANL/CMA CGM vessel delays caused by violation of fumigation
standards will be covered by the client, said the French shipping company in a
statement.
Port of
Hamburg handles 58.2 million tons
Port of Hamburg recorded a gain of 7.7% in bulk cargo throughput at 19 million tons.
More specifically, the first-half general cargo throughput was
11.1% lower at 39.2 million tons. 58.2 million tons of seaborne cargoes were
handled by terminal operators in the port of Hamburg .
Container handling in the port improved in every month of the
first half. In particular, in June, it was 10.2% higher than in January.
Comparison of the first two quarters indicates a 4.6% rise in
container throughput. As a rule, growth rates in this period are of around
0.6%.
In total, 3.8 million TEU crossed the quaywalls then, a fall of
11.7% in comparison with the same period of the previous year. Container
throughput on a tonnage basis totalled 38.7 million tons, being 10.8% lower.
"The positive trend in bulk cargoes was attributable to all
sectors," according to the port. With 3.5 million tons handled, agribulk
achieved a first-half increase of 18.6%. Up 18.1% and 5.3 million tons, the
trend in throughput of liquid cargoes was similarly positive, while grab
cargoes at 10.2 million tons were at almost the previous level.
"On a comparison with other North Sea ports in the North
Range, it is absolutely clear that all players in this market are subject to
the same tough prevailing circumstances," commented Axel Mattern, CEO of
HHM – Port of Hamburg Marketing.
:: Air Cargo News ::
Bengaluru Airport handles record perishable cargo for 3rd
consecutive year
For
three consecutive years, Kempegowda International Airport Bengaluru (BLR) has
maintained its position as the leading airport for exporting perishable cargo
in India.
Over the
past three years, this bustling airport has consistently maintained its prime
position as the premier hub for exporting perishable cargo in India.
The
extraordinary growth and accomplish -ments of BLR Airport underscore its
pivotal role in facilitating timely export operations, connecting businesses to
global markets, and enhancing India’s stature in the international arena.
In the
financial year 2022-2023 (FY23), BLR Airport witnessed a commendable milestone
in its journey. The airport accomplished a record tonnage of 53,751 metric
tonnes (MT) in the export of perishable cargo.
This
achievement marks a noteworthy 3% increase compared to the previous year, when
the airport successfully handled 52,366MT of perishable cargo.
Within
the landscape of perishable goods export, BLR Airport holds a position of
dominance. Among the spectrum of perishable items, it leads the pack in the
export of poultry and floriculture/flowers in India.
Etihad Cargo positive on China as it rolls out additional flights
Photo: EtihadEtihad Cargo has been ramping up its focus on the China market
over recent months.
In the last few weeks, the carrier has added new weekly Boeing
777 freighter services to the recently opened cargo specialist Ezhou Airport in
China’s Hubei province and a new service to Guangzhou.
In total, the carrier now operates 10 freighter flights a week
to mainland China.
In addition to the freighter flights to Ezhou and Guangzhou, the
carrier also offers eight weekly freighter flights to Shanghai.
Etihad Cargo head of revenue management, fleet and network
Leonard Rodrigues tells Air
Cargo News that its cargo capacity to the country has
increased 25% compared with pre-Covid levels.
He adds that there could be a further four weekly flights added
in the future in response to customer demand, although there is “just a
question of the when and the how and which customers”.
Meanwhile, Etihad also offers ten passenger flights per week to
Beijing, Guangzhou and Shanghai, as well as road feeder services to 25 domestic
mainland China destinations.
Rodrigues says the carrier is still rebuilding its passenger
network to China as it continues to adjust following the lifting of Covid
restrictions.
He adds that Etihad Cargo’s China traffic tends to have a higher
share of its overall volumes compared with other Middle Eastern carriers.
“China is a strategic focus that is on the passenger side and on
the cargo side. China is at the top of our list when it comes to tourism
priorities and trade priorities and this is even at the level of our
shareholder [sovereign-wealth fund] ADQ,” Rodrigues says.
The addition of extra flights comes as China’s manufacturing
output is recovering more slowly than many had expected following the lifting
of Covid restrictions.
The South China Morning Post reported that industrial output
from China’s hi-tech manufacturing sector grew by just
0.7% year on year in July, the slowest pace since
records began in September 2018.
The publication says that a tech war between the US and China,
deflation fears, weak demand and weak sentiment were contributory factors to
low growth.
However, Rodrigues is confident that the airline has not
overcommitted to the country. “We don’t see a different market to what
everybody else sees,” he says. “Yet, we have got a few key advantages.
“The first thing is that there is a strong tie between China and
the UAE so I think naturally there are already a lot of shipments from China to
the UAE on a point to point.
“That means operations are relatively easy to plan because you
have a freighter and a big share of it is just for the UAE itself. So the link
between the countries is a key advantage.”
He adds that the carrier also has a “superstar team” in the
country with customers often praising them.
Finally, he points out that the carrier has a smaller freighter fleet – five Boeing 777s – than many of its rivals, making it easier to fill its freighters with the traffic generated by its bellyhold operations and match supply and demand.
Photo: EtihadMost recently, the carrier added the service to Ezhou in
partnership with express carrier SF Airlines.
Rodrigues explains that the partnership is based on a block
space agreement with the Chinese carrier, which sees SF operate a weekly
freighter service between Abu Dhabi and Ezhou.
The most obvious advantage to the new partnership is the extra
frequency the two airlines will be able to offer to customers. But there are
also wider benefits by expanding SF Airlines’ reach and providing extra volumes
for Etihad’s flights, says Rodrigues.
“They are strong with their pan-Asian network and now they want
to offer to those customers the capabilities to reach the rest of the world and
we are extremely good in our feeds for the rest of the world,” he explains.
Rodrigues adds that both carriers have focused on growing their
respective local communities.
“For them, it is the Hubei province and for us, it is Abu Dhabi,”
he says. “We both want to expand our logistics hubs, focus on pharmaceuticals,
focus on e-commerce and then – the bigger picture – with logistics you also
help grow the economy.
“This is a shared vision that we have through ADQ and they have
through their group and the Hubei province.”
Ezhou Airport itself was only recently opened with the
first flight taking place just over a year ago. Rodrigues says he has been
impressed with the airport.
WFS adds air cargo capacity
in Madrid
Worldwide Flight Services (WFS) will open a fifth cargo handling
terminal at Adolfo Suárez Madrid-Barajas Airport to provide additional growth
capacity.
Construction of the new 6,500 sq m terminal has now commenced
and WFS aims to begin operations from the facility by the end of the first
quarter of 2024, increasing its total cargo facility footprint in Madrid to
17,000 sq m.
WFS, acquired
by SATS in April, has signed a 30-year lease on the new
building opening in 2024, which sits on a 12,500 sq m plot connected to the airport
tarmac.
The building will offer 17 landside truck and van docks for
efficient cargo collections and deliveries, supported by direct and wide access
from the main road to the facility; two Build-up-Pallet lanes and docks; and
four airside truck and dollies docks with tilting and 20 ft ULD handling
capabilities.
It will also feature a secured refrigerated cargo acceptance
area, plus 2-8°C and 15-25°C loose and mechanised temperature-controlled cool
rooms for pharma and perishable shipments, supported by WFS’ GDP certification
in Madrid.
Additionally, it will include a mechanised handling system
connecting the landside and airside docks; four integrated workstations with
scales, and three loose cargo scales; dedicated areas for DGS, VUN, HUM, PIL
and AVI special cargoes; and optimised security systems and technologies,
including 24/7 CCTV monitoring. This new building is situated in front of the
main freighter parking area and close to Terminals 4 and 4S, shortening cargo
transport timings, said WFS.
The multi-user building will match WFS’ other cargo terminals in
Madrid by being powered by 100% renewable energy, including energy generation
by solar panels located on the roof of the facility, which will also power LED
lighting, warehouse climatisation, and electric battery chargers for cars and
warehouse GSE.
Indoor AGV (Automated Guided Vehicles) will also be introduced
into the facility in the second half of 2024. Digitisation initiatives
will include the launch of Cargospot mobile warehouse technology, the
CargoKiosk system to automate and expedite truck processing times, and a
Warehouse Workflow Monitoring System to meet customer KPIs and ensure
consistent levels of efficiency.
Humberto Castro, managing director of WFS in Spain, said:
“Madrid is such a strategically important cargo market as a hub for Central and
South America to and from the EU and connecting the Middle and Far East
markets.
“This new cargo terminal will help to future-proof WFS’ service
offering by increasing our handling capacity by 60% for our current and future
airline customers. This will enable us to accommodate strong organic growth and
support the significant increase of inbound e-commerce traffic from China.”
WFS has been present in the Madrid cargo and ground handling
market since 1998 and serves 39 airline customers, also providing trucking
services connecting other key airports in Spain and across the EU.
It has previously added facilities to its Madrid operation in
2001, 2018, and 2019.
Germany’s USC prepares for launch as operator certificate granted
Image
source: ShutterstockGermany-based airline Universal Sky Carrier, which has plans to
launch freighter services, has been granted an operating license by the
country’s civil aviation authority.
Air Cargo News’ sister magazine FlightGlobal reports
that the carrier will initially operate with a single Airbus A340-300 – MSN646
– which is being brought out of “parking condition” and will be ready by the
end of the week.
An A340-600 is due for delivery in the coming weeks. The two
aircraft will initially be offered for wet-lease and charter operations.
However, the carrier also has plans to convert aircraft into a freighter
configuration “as soon as possible” the company’s managing director Klaus
Dieter Martin. The work will be carried out by UK-based Avensis Aviation.
The conversion – named Navis PTF – introduces an industry-first
“plug-type” maindeck cargo door. It also features a separated crew cabin
section, a 9G rigid cargo barrier, a full Class-E cargo compartment and a
maindeck cargo loading system (CLS).
When the conversion contract was initially announced back in
May, Avensis said that whilst the elements of the Navis conversion are
produced, the aircraft will initially be converted with the firm’s reversible Medius
conversion solution which removes seats and turns the aircraft into a Class-E
freighter without the addition of a cargo door.
The carrier has also been given permission by the US Department
of Transportation to conduct cargo flights between the European Union and US.
UK moves to a phased
approach for export declaration switchover
UK customs has announced it will now adopt a phased approach to
the rollout of its new system for export customs declaration.
The new phased approach means that selected high-volume
exporters will move from the existing system, CHIEF, to the new Customs
Declaration Service (CDS) by November 30.
However, all other businesses have now been given until March 30
to move over to CDS.
Under the previous plan, all businesses were due to move over to
the new system by November 30.
HM Revenue and Customs (HMRC) said that it had decided to adopt
a phased approach following industry feedback.
The switchover for imports took place in October last year.
The move was welcomed by freight forwarder association BIFA,
although it felt the decision was quite short notice.
“CDS has been a long time in the making, and there have been
many changes in the implementation timetable,” the association said.
“This revision to the deadline for businesses to move export
declarations via the CDS system is quite short and any business must continue
to work towards transitioning from CHIEF to CDS, as a large proportion of BIFA
members are already doing.
“[The] announcement provides clarity to the trade and shows that
HMRC has been listening to the ongoing lobbying on the subject that has been
done by BIFA, and others.
“BIFA members now have clear time frames and should ensure that
they have their own implementation plans, as well as test the system wherever
possible.
“The trade association will continue to engage with HMRC on
behalf of our members, as well as request that the department provides webinars
and training materials to help with the revised implementation timetable.”
Earlier this week, freight forwarder Rhenus urged
UK exporters to prepare for the switchover to
avoid delays to shipments.
The firm’s customs manager in the UK, Rob Mulligan, said that
exporters should “register, authorise and prepare to ensure a successful
transfer process”.
I reckon you have enjoyed reading the above useful
information.
Have a nice day.
Thanks & kind regards
ROBERT SANDS, Joint Managing Director
Jupiter
Sea & Air Services Pvt Ltd
Casa
Blanca, 3rd Floor
11, Casa
Major Road, Egmore
Chennai –
600 008. India.
GST Number
: 33AAACJ2686E1ZS.
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.
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