JUPITER SEA & AIR SERVICES PVT. LTD,
EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in
Mobile : +91 98407 85202
Corporate
News Letter for Thursday February 01, 2024.
:: Today’s Exchange Rates ::
Source : The Economic Times.
RATES
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.04 |
-0.080002 |
-0.096249 |
83.11 |
83.12 |
83.01- 83.1275 |
|
|
1.0826 |
-0.0019 |
-0.175192 |
1.0845 |
1.0845 |
1.0806- 1.0848 |
|
|
105.2349 |
-0.165802 |
-0.157306 |
105.3593 |
105.4007 |
105.2178- 105.41 |
|
|
89.7987 |
-0.203903 |
-0.226553 |
89.929 |
90.0026 |
89.7563- 89.9587 |
|
|
147.738 |
0.128006 |
0.086719 |
147.61 |
147.61 |
147.19- 147.90 |
|
|
1.2673 |
-0.0027 |
-0.212596 |
1.2699 |
1.27 |
1.2667- 1.2701 |
|
|
103.618 |
0.220993 |
0.213733 |
103.416 |
103.397 |
103.394- 103.661 |
|
|
0.5624 |
-0.0025 |
-0.442556 |
0.5632 |
0.5649 |
0.5617- 0.5645 |
/// Sea Cargo News ///
Ocean
Alliance agreement makes any liner switch unlikely
Lawyers at global liners have been busy poring over the fine print
of their alliance set-ups in the week since Hapag-Lloyd shocked its peers by
ditching THE Alliance to form the Gemini Cooperation with Maersk.
While speculation is rife that a member of the Ocean Alliance might be coaxed to jump ship and join THE Alliance to help fill the void left by the exit of its largest member, Hapag-Lloyd, there’s little in the legal write-up of the Ocean Alliance to suggest it will happen soon.
Maersk’s existing partnership with Mediterranean Shipping Co
(MSC), 2M, is due to expire in a year’s time and the Danish liner has been
actively seeking a partner to plug capacity gaps. Last Wednesday, Maersk and
Hapag-Lloyd revealed their new liner grouping, which will launch from February
2025.
THE Alliance was founded in 2016. Its membership today is made up
of Hapag-Lloyd, HMM, Ocean Network Express (ONE) and Yang Ming. THE Alliance is
one of three global liner alliances along with 2M and the Ocean Alliance, whose
members comprise CMA CGM, Evergreen, and COSCO.
Getting a member of the Ocean Alliance to shift to the diminished
The Alliance is unlikely to happen this year or next. Agreement signed in April
2017, among the Ocean Alliance members states it is fixed for a minimum of 10
yeas and the partners will need to give 12 months advance notice to withdraw
and notice many not be given prior to March 2026 unless there is a material
change in the partner’s ownership status or one of the partners becomes
insolvent.
The Alliance had similar provisions but allowed its members to
given 12 month notice after April 2023, which Hapag Lloyd utilised in order to
withdraw prematurely from the arrangements that was supposed to operate until
2030. While Hapag Lloyd’s partners in The Alliance have deployed lawyers to
look at the German Carrier’s departure, the Hamburg head quartered line is
confident there is no legal case against it.
“There is an exit clause. It says that a member can leave after
announcement one year prior to leaving. We don’t expect any legal proceedings,”
a spoke person for Hapag Lloyd said. “ The Alliance members are in a jam and
will be desperate to fill the Hapag Lloyd void,” Simon Heaney, Sr. Manager of
Container Research at UK Consultancy Drewry, said last week.
Finding a suitable replacement and having zero leverage will prove
challenging, he suggested. Lars Jensen,
a former Maersk employee turned liner consultant with Vespucci Maritime, noted
last week that the pressure is on ONE, HMM and Yang Ming to either lure a new
partner out from Ocean Alliance or re-invent a new service concept.
Adani
Ports gets NCLT approval for acquisition of Gangavaram port
Adani Ports and Special Economic Zone Ltd, India's largest ports
and logistics company, on Monday, said it has received approvals from the
National Company Law Tribunal (NCLT) for acquiring the remaining 58.1 per cent
stake in Gangavaram Port Limited.
According to a regulatory filing to the stock exchanges, Adani
Ports and Special Economic Zone Ltd has received approvals from NCLT Ahmedabad
and NCLT Hyderabad for acquiring the remaining 58.1 per cent stake in
Gangavaram Port Limited (GPL) through the composite scheme of arrangement.
With this stake purchase, GPL will become a 100 per cent
subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ).
"Acquisition of GPL is a key milestone in consolidating our position as
India's largest transport utility and in achieving East Coast & West Coast
parity.
Gangavaram Port has excellent rail & road network connectivity
and is the business gateway to the hinterland spread over eight states. The
recent addition of a container handling terminal will enable us to accelerate
our growth of cargo volumes," Karan Adani, CEO and Whole-time Director,
APSEZ, said in a statement.
Red Sea crisis hit India’s trade: Container Shipping line MSC and CMA CGM suspend key routes
Mediterranean Shipping Company S.A, the world’s largest container
shipping line, has suspended two services from India, one destined for the U.S.
and the other for the Mediterranean.
Concurrently, French carrier CMA CGM has blanked four sailings on
three services from India in January. This disruption is attributed to the
longer detour taken by ships via the Cape of Good Hope to avoid attacks by
Houthi militants in the Red Sea, impacting reliability and necessitating a
realignment in services.
The surge in freight rates since December, when Iran-backed Houthi
rebels began attacking commercial ships in the Red Sea in response to Israel’s
actions in Gaza, has prompted these changes.
Rerouting vessels via South Africa’s Cape of Good Hope results in longer transit times, ranging from 7-8 days to Europe and 10-13 days to the U.S., leading to increased fuel usage. Carriers are announcing general rate increases and surcharges to offset these extra costs.
Indian
Railways cuts SUV mass transport rates by 33%
Sport-utility vehicles (SUVs), currently riding high in the local
market, can now hitch a cheaper ride on Indian Railways. Automakers planning to
ship these popular vehicles in a cost-friendly way cross country have received
a boost from the railways, who unveiled a new, budget-friendly slab for mass
SUV transportation.
Customs
can ask for purchase invoices from exporters claiming DBK, Rodtep
As traders, we buy goods from the domestic market and export,
claiming duty drawback at All Industry Rates and Rodtep benefits. Are the
Customs justified in asking for our purchase invoices?
Yes. Rule 9 of the Customs and Central Excise Duties Drawback
Rules, 2017 and proviso at Para 2(1)(b) of notification no.76/2001-Cus (NT)
dated 23rd September 2021 put a cap on the amount of drawback and Rodtep credit
that can be granted, based on the market price of the goods. I refer to
Sections 25A and 25B of the Customs Act, 1962 that deal with inward processing
of goods and outward processing of goods.
India
raises import duty on gold, silver jewellery findings
The Indian government has increased the import duty on gold and
silver findings, used in making jewellery, and on precious metal coins to 15%
from 11%, effective from Jan. 22, to bring them in line with duties on gold and
silver bars.
In a notification issued on Monday, India's Ministry of Finance
also hiked the import duty on spent catalysts containing precious metals to
14.35% from 10.1%.
The move aims to prevent circumvention of the duty on gold and
silver bars, a government official said, after a surge in imports in the last
two months of gold findings: hooks, clasps and other components used to make
jewellery.
The official was not authorised to speak with the media and
requested anonymity. India is the world's second biggest consumer of gold,
which is supplied almost entirely through imports.
2
ships with US defence cargo attacked off Yemen; Qatar says gas shipping
affected
Two American-flagged ships carrying cargo for the US defence and state departments came under attack by Yemen's Houthi rebels on Wednesday, officials said, with the US navy intercepting some of the incoming fire.
The attacks on the container ships Maersk Detroit and Maersk
Chesapeake further raise the stakes of the group's attacks on shipping through
the vital Bab el-Mandeb Strait. The US and the UK have launched multiple rounds
of air strikes seeking to stop the attacks.
On Tuesday, the US, in its ninth strike in two weeks, hit two
Houthi anti-ship missiles in Yemen. Danish shipper Maersk identified two of its
vessels affected by the attacks as the US-flagged container ships Maersk
Detroit and Maersk Chesapeake.
"While en route, both ships reported seeing explosions close
by and the US navy accompaniment also intercepted multiple projectiles,"
Maersk said. "The crew, ship, and cargo are safe and unharmed. The US Navy
has turned both ships around and is escorting them back to the Gulf of
Aden."
Maersk said both vessels carried cargo belonging to the US defence
and state departments, as well as other government agencies, meaning they were
"afforded the protection of the US navy."
Hapag-Lloyd implements new GRI from US West Coast to Indian Subcontinent and Middle East
Hapag-Lloyd has recently announced a new General Rate Increase
(GRI), effective from 1 March 2024, from US West Coast to Indian Subcontinent
and Middle East.
This GRI of US$200 per container will be applicable to dry fruit
and nuts commodity cargo, according to the German carrier's announcement.
North America West Coast includes ports of Los Angeles, Long Beach
and Oakland, while Indian Subcontinent and Middle East include ports in India,
Bangladesh, Pakistan, Sri Lanka, UAE, Qatar, Bahrain, Oman, Kuwait, Saudi
Arabia, Jordan and Iraq.
/// Air Cargo News ///
MIA’s cargo terminal handles large parcel of arecanut
The Mangaluru International Airport (MIA) facilitated the inbound
handling of arecanut at its Integrated Cargo Terminal (ICT) this month. The red
variety of arecanut weighing 1,519kg in 60 bags, was ferried as belly air cargo
from Agartala to Mangaluru.
This is the highest quantity of the crop that the integrated cargo
terminal has handled since it started domestic cargo operations on May 1, 2023,
according to the MIA spokesperson. The arecanut handled was procured by
Srinivasa Supari Traders, a Shivamogga-based arecanut trading company.
It marks the highest single-day inbound cargo that the ICT has
handled since May 1, 2023. The ICT in the past had handled inbound parcels of
arecanut, although in smaller quantities .
The company representatives, who received the consignment, later
transported the crop by road to Shivamogga for further processing. Airlifting
of arecanut was also a first for the company, that otherwise regularly sources
this crop by road from various parts of the country, including Agartala.
Turmoil in skies : FINN AIR cancelling all their flights on February 1 & 2.
Due to political strike by employee unions against Finnish Government on February 01 & 02, 2024 Finnair will cancel all their flights from operations.
Customers will be
offered alternative routes, long haul flights to be routed directly to their
destination, the Airline Statement said.
Sea-air to come to the fore as Red Sea crisis drags on
Source:
Jaromir Chalabala/ShutterstockKerry Logistics has reported increased interest in its sea-air
services, mirroring reports of growing enquiries for alternatives to ocean
shipping due to the Red Sea crisis. The Hong Kong-headquartered forwarder
said that its sea-air and road-air services across Eurasia have recently
garnered increased interest.
The company said that its sea-air solution transports shipments
from Chinese seaports to European airports within 16-21 days and is around 40%
cheaper than conventional airfreight and 40% faster than sea freight. “Cargo is
transported by sea freight to Dubai followed by air transport to Europe, with
operations centred at the Kerry Logistics Jebel Ali bonded facility in Dubai,”
the company explained.
Meanwhile, its road-air service takes around 15-20 days,
all-road in 20-25 days and road-rail 25-30 days. According to Maersk, sailing
from China to Europe via the Suez Canal takes around 30 to 45 days, but
analysts warn this will be extended by 10-14 days when sailing via the Cape of
Good Hope.
Meanwhile, the longer transit times also impact available
capacity and could create container shortages as more boxes are at sea at any
given time.
These factors are already pushing up ocean freight rates. Data
from Xeneta shows that by mid-January ocean freight rates from China to Europe
had more than doubled to $4,138 per FEU compared with early December.
Sea-air via Los Angeles?
Xeneta has also suggested that shippers could turn to sea-air to
get shipments to Europe, perhaps even shipping via Los Angeles. “In addition to
its impact on the Asia to Europe market, the Red Sea crisis will also likely
spark interest in sea-air modes via Dubai and Los Angeles,” analyst Peter Sand
wrote in a recent summary.
“In the immediate vicinity to the Red Sea, Dubai will likely see
increased ocean imports from Asia and air exports to Europe. For valuable,
time-sensitive shipments, shippers can take advantage of both airfreight’s
shortened transit time and cheaper ocean freight to Dubai in an effort to
mitigate costs.” “The potential
increased demand from sea-air mode could see Dubai to Europe air cargo spot
rates soon climb above pre-pandemic levels,” he added.
“Furthermore, Los Angeles to Europe air cargo rates could be on
the rise if ocean shippers get creative and adopt a sea-air mode from China to
Europe via Los Angeles. “This could be an even more cost-efficient option
compared to sea-air mode vis Dubai. “Global airfreight shippers should monitor
the situation closely and be prepared for possible disruptions.
“The Red Sea crisis poses a serious threat to the ocean shipping
on Asia to Europe routes and could extend beyond the immediate routes for
airfreight and into other trades.” Sand
suggested that sea-air via Los Angeles cost an estimated $1.33 per kg and would
be less expensive than sea-air via Dubai at $1.61 per kg, although some on
social media have questioned the figures.
Summing up the current market conditions, Scan Global Logistics
said that airfreight was enjoying ocean freight tailwind due to the Red Sea
situation. However, no volume tsunami is in sight. “An increase in airfreight,
sea-air, and rail freight volumes is apparent, but not at a magnitude with the
potential for significant disruption,” the forwarder said.
“This development is expected to be sustained until the Lunar
New Year, and as a natural consequence, airfreight rates have also increased in
recent weeks.”
DHL Express and Singapore Airlines add fifth freighter
Source:
Ian Dewar Photography/shutterstockDHL Express and Singapore Airlines (SIA) have deployed the fifth
and final freighter as part of a tie-up signed in 2022. The Boeing 777 freighter, which offers a
payload capacity of 102 tons, will be based in Singapore and be used to expand
capacity between Asia and the Americas.
In total, the five 777Fs will operate 12 flights each per week
with a total payload capacity of 1,224 tons per aircraft per week. Following
the addition of the final aircraft, three of the five freighters will ply the
Singapore-Bangkok/Taipei-Incheon/Nagoya-Cincinnatti-Honolulu-Sydney-Singapore
route seven times a week.
The other two will cover the Singapore-Nagoya-Los
Angeles-Honolulu-Singapore route five times a week. DHL Express chief executive for Asia Pacific
Ken Lee said: “Both Asia and the US are major economic powerhouses with
significant trade flows.
“We continue to see significant demand for shipments between the
two regions due to a huge volume of cross-border e-commerce and trade
activities.
“In the last four years, shipment volume between Asia Pacific
(excluding China) and the US increased by more than 20%.” The deal between DHL Express and SIA was signed
in March 2022. Under the agreement, SIA operates and
oversees the maintenance of the five 777 freighters deployed at the South Asia
Hub.
The deal initially runs for four years but has the option to
extend. The first of the five freighters was delivered in August 2022. These five 777 freighters are part of DHL
Express’ orders for 28 of the aircraft. So far, 22 have been delivered.
Cathay Cargo volumes continue recovery in 2023 but still lag 2019 levels
Source:
Cathay Pacific CargoCathay Pacific saw its cargo volumes continue to recover last
year following Covid-related lockdowns in 2022, but demand still lags behind
2019 levels.
The Hong Kong-hubbed carrier group handled 1.4m tonnes of cargo
last year, which is a 19.6% improvement on 2022 when Covid-related lockdowns
resulted in freighter and passenger flights being cancelled due to crew
restrictions.
Volumes in 2022 and the first half of 2023 were also affected by
a ban on the transhipment of e-cigarettes through Hong Kong, which was later
lifted. The carrier said that cargo volumes continued to improve as the year
progressed and in December there was a 20.7% year-on-year increase in cargo
tonnes.
Chief customer and commercial officer Lavinia Lau said: “Our
cargo business performed well in December, and finished on a high, primarily
driven by the strong year-end demand for e-commerce products. “Additionally, there was increased demand for
perishable goods for the holiday season. December also saw a pickup in our Live
Animal solutions with significant numbers of racehorses being moved across our
network in support of the Hong Kong international race events.”
Looking ahead, Lau added: “We expect demand to steadily pick up
from the second half of the month with the e-commerce demand on the Americas
and European lanes remaining solid and local demand strengthening up to the
Lunar New Year holidays.” This year, the Lunar New Year holiday takes
place from February 10 to 17. While
volumes improved last year, the return of belly capacity resulted in the
average load factor for the year falling 8.6 percentage points to 62%.
Menzies grows in Hong Kong
with Jardine investment
Source: Menzies AviationMenzies Aviation has invested in a 50% stake in Jardine Aviation
Services Group (JASG) as it looks to expand operations in the Asia Pacific
region.
The stake was purchased from Asia-focussed conglomerate Jardine
Matheson and is a joint venture with China National Aviation Corporation
(CNAC), which will remain co-owner following the deal.
JASG has been providing handling services in Hong Kong since
1946. In terms of cargo, the company said it has expertise in handling
dangerous goods, medical supplies, live animals, and valuable and perishable
cargo.
“All our staff accepting cargo shipments on behalf of the
airlines are IATA-trained and qualified,” JASG said.
The company also provides air cargo documentation services,
customs clearance, cargo manifesting, freighter weight and balance services,
ULD inventory management, transhipment handling, and track and trace.
Upon completion of the investment, Jardine Airport Services
Limited will be rebranded as Menzies CNAC Aviation Services Limited.
JASG chief executive Vivien Lau said the deal would strengthen
the company’s presence globally and offer expanded career prospects to
employees.
Menzies Aviation group chief executive Philipp Joeinig said: “We
are excited to enhance our presence in Asia as we look to capture the exciting
opportunities in this fast-growing aviation market.
“The integration enables us to broaden our footprint in Hong
Kong, the Greater Bay Area and China as we build a collaborative relationship
with CNAC, fostering mutual growth and success.”
Menzies and CNAC also have a partnership at Macau International
Airport (MFM).
The transaction is subject to regulatory approval and is
expected to be completed in the coming months.
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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