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 March 01, 2024.
:: Today’s Exchange Rates ::
Source : The Economic Times.
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
82.91 |
-0.029999 |
-0.036169 |
82.88 |
82.94 |
82.875- 82.945 |
|
|
1.0851 |
0.0013 |
0.119957 |
1.0838 |
1.0838 |
1.0826- 1.0854 |
|
|
105.0243 |
0.317902 |
0.303612 |
105.0481 |
104.7064 |
104.924- 105.089 |
|
|
89.9782 |
0.419205 |
0.468077 |
89.8404 |
89.559 |
89.7745- 90.0001 |
|
|
149.881 |
-0.809006 |
-0.536868 |
150.69 |
150.69 |
149.611- 150.687 |
|
|
1.2671 |
0.0009 |
0.071081 |
1.2662 |
1.2662 |
1.2653- 1.2675 |
|
|
103.777 |
-0.197998 |
-0.190429 |
103.95 |
103.975 |
103.761- 103.961 |
|
|
0.5533 |
0.0028 |
0.508637 |
0.5505 |
0.5505 |
0.5505- 0.5543 |
/// Sea Cargo News ///
MSC to
open new feeder calls at India’s eastern Paradip Port
Mediterranean Shipping Co. (MSC) has inked a deal to start a
feeder service between Paradip Port (PPT), a major gateway on India's east
coast, and Sri Lanka's Colombo Port. The service is due to start in early
March, initially offering two or three sailings a week and as volumes build, it
will be enhanced to a weekly frequency, according to industry sources.
Paradip has traditionally thrived on bulk cargo activity, with
throughput volumes for fiscal year 2022-23 hitting an all-time high of 116.13
million tonnes, up 16.5% year-over-year.
To incentivize containerised trade, the local Odisha state
authority has agreed to compensate the carrier for commercial losses resulting
from insufficient head-haul cargo lifts based on a minimum volume of 250 TEUs
per call. The move is seen as a boon for exporters/importers in India's eastern
region, who have traditionally used Kolkata Port or Visakhapatnam Port for
transhipment movements, mostly via Colombo.
MSC has significantly expanded its ocean network out of India in
recent years, as the economy expands. The carrier also has terminal
interests at several port locations in India as part of its growth strategies
in the booming economy. MSC’s subsidiary Terminal Investments Limited (TiL)
operates a container terminal at Mundra Port in partnership with the Adani
Group.
Additionally, the container transport giant recently acquired a
49% stake in Adani’s container terminal project at Ennore Port, near Chennai.
As trade expands, Paradip has significant capacity expansion
plans in the works. The port aims to scale up throughput levels to over
300 million tonnes over the next three years with the commissioning of a new
general terminal project in the final stages of development.
From April through January, the first 10 months of fiscal year
2023-24, Paradip has handled some 120 million tonnes of cargo, registering a
10% increase, according to the latest data.
Sensing an opportunity to pick up additional volumes, PSA Mumbai
or Bharat Mumbai Container Terminals (BMCT) at Nhava Sheva Port recently
established a new rail link with Odisha, involving a 1,600-kilometer journey.
“Under this collaboration, we anticipate about four trains per
month to be delivered,” PSA Mumbai noted in a customer advisory. The company
went on to add, “This partnership represents one of the longest-distance inland
connections for PSA Mumbai.”
Scrubber
savings reach US$13 billion, reports Sea-Intelligence
CSCL Saturn is
one of COSCO ships to be fitted with scrubber technology / Credit: Martina Li
According to Sea Intelligence, the IMO2020 regulations require
the use of fuel oils containing less than 0.5% sulphur, such as Very Low
Sulphur Fuel Oil (VLSFO), or alternative compliance methods like exhaust gas
cleaning systems, known as scrubbers.
Scrubbers enable shipping lines to utilize higher-sulphur fuel
oils (IFO380), which are cheaper. With a growing number of scrubber
installations, there's a rising proportion of vessels capable of leveraging
cost savings by opting for cheaper regular fuel over pricier low-sulphur VLSFO.
Currently, the price premium on VLSFO stands at US$166/ton.
"Source:
Sea-Intelligence.com, Sunday Spotlight, issue 652"
Furthermore, using a model to estimate global fuel consumption
across the sector, shipping lines have collectively saved US$13 billion through
scrubber use since IMO2020 implementation.
This development highlights the shipping industry's
responsiveness to regulatory initiatives that incur costs. However, it
underscores that monetary motivation may not always align with the intended
outcomes of regulations. Rather than transitioning to low-sulphur fuel, the
more cost-effective approach involves using regular fuel alongside scrubbers—a
compliant solution that minimizes costs.
"It then raises the question related to regulations
targeted towards CO2 emission reductions. Financially motivated regulations are
indeed coming into effect, such as the EU’s ETS carbon taxation on shipping.
What remains to be seen is to which degree the industry will find other ways to
abide by the regulation in letter, but not necessarily in spirit,"
stated Alan Murphy, CEO of Sea-Intelligence.
Two dead, three missing after container ship hits bridge in Chinese port
Two people were killed and three others missing after a boxship
hit a bridge in Guangzhou in the southern Chinese province of Guangdong this
morning (22 February).
Around 5.30 am, Liang Hui 688, a 2016-built 5,000 gt domestic
Chinese container ship, reportedly hit the Lixinsha Bridge in Guangzhou’s
Nansha district, causing the bridge to collapse partially. Consequently, four
cars and one motorcycle fell through the gap; two vehicles plunged into the
river and the other three dropped onto the ship.
At the time, Liang Hui 688, which was sailing from Foshan’s
Nanhai district towards Nansha, was not carrying any containers.
The Liang Hui 688 is owned by Foshan Lianghui Shipping Service
(a transliteration of the company’s Chinese name), which was established in
March 2021 and is owned by Zhang Bingrong (60%) and Lin Yunfen (40%). Foshan
Lianghui operates out of Foshan in Guangdong province.
Container News’ calls to Foshan Lianghui
confirmed that the company owns and operates Liang Hui 688. A Foshan
Lianghuit's spokesperson said the accident is being investigated by the police
and that the ship captain has been detained.
Beijing News, quoted an eyewitness, a crewman of a nearby
vessel, as saying that he was awakened from his sleep by a loud sound, and he
realised that the Lixinsha Bridge was damaged after seeing cars falling through
the gap.
Shortly after, the crewman said that Maritime Safety
Administration personnel radioed nearby vessels, instructing them to approach
the accident scene and deploy their life rafts. The crewman added that the
navigational bridge of Liang Hui 688 was so badly impacted that it was out of
shape.
Chinese authorities noted that two people were rescued, but did
not indicate if they were crewmen or were in the fallen vehicles. A seafarer on
Liang Hui 688 sustained minor injuries.
According to Chinese corporate information provider Tianyancha,
Foshan Lianghui was fined CNY30,000 (US$4,200) in January, as the crew on Liang
Hui 688 did not keep a proper lookout while navigating through narrow and busy
waterways.
Europe’s largest quay
cranes arrive at DP World’s London Gateway
The UK's largest quay cranes, weighing over 2,000 tonnes,
are offloaded at DP World London Gateway / Credits: Jonathan Brady, PA Media
Wire.
DP World has received Europe’s largest quay cranes at its
flagship London Gateway logistics hub, marking its latest investment to boost
the United Kingdom's future trading capability.
Weighing more than 2,000 tonnes, the giant cranes will come into
service at London
Gateway’s new fourth berth, set to open this summer.
Following a two-month journey from China, the quay cranes
arrived at London Gateway over the weekend before successfully offloading on 21
February. The cranes are expected to operate for a minimum of 25 years and are
sized to service the largest vessels currently in operation around the world,
including 24,000 TEU container ships and even bigger vessels in the future.
Ahsan Agha, Vice President of Port Operations at DP World London
Gateway, commented, “At a time when the pressure to manage costs, maintain
reliability and improve speed has never been greater, DP World in the UK has
been building a unique array of assets and suite of capabilities to help our
customers stay competitive in a fast changing and unpredictable trading
environment.
“While they naturally choose us for our growing capabilities,
it’s also the quality of our service that makes our customers stay. Thanks to
the capacity soon to be provided by the quay cranes and the new fourth berth,
that service at London Gateway is future-proofed for years to come.”
The cranes are the largest and the most advanced in Europe,
according to DP World, having been fitted with the latest automation
technology, being able to complete tandem lifts, involving the loading or
unloading of two 40ft boxes or four 20ft boxes in a single move.
Another two quay cranes are expected to dock at London Gateway
in early summer. These follow the arrival of the automated stacking cranes
(ASCs) and electric straddle carriers, which are also set to go into operation
at the new fourth berth.
BIMCO publishes ship
financing forms for uninterrupted use of vessels
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can ensure the charterers’ uninterrupted use of a ship if the owner defaults under the financing facility.
The QELs will be provided by the lender to the charterer to
ensure that the charterer, who does not have a contractual relationship with
the lender but only with the owner, can continue to “quietly enjoy” the ship in
case of the owner’s default.
In return, the charterer gives a certain number of undertakings,
including not canceling the charter party and continuing to pay amounts due
under the charter party. The QELs also offer lenders an opportunity to secure
their rights, such as appointing a replacement owner in case of a default.
"The two new forms fill a gap in the market where no such
standard form is currently available. They are distinct because they are
beneficial to charterers, lenders and owners," stated Nicholas Fell,
chairperson of BIMCO’s Documentary Committee.
The QELs have been developed in a collaborative process
involving representatives of owners (Wah Kwong and Oldendorff Carriers),
charterers (BHP and Noble Resources International), lenders (Danish Ship
Finance), leasing institutions (CMB Financial Leasing Co. Ltd.) and legal
experts (Linklaters LLP and Holland & Knight LLP).
"The objective of the subcommittee in charge of the project
was to create a balanced standard that reflects the market practice and fairly
represents the rights and obligations of all parties," stated Catherine
Smith, chairperson of the BIMCO QEL subcommittee.
Two versions of the QEL have been developed: a standard quiet
enjoyment letter signed by the lender and agreed by the owner and charterer,
and a "short form" version which is signed only by the lender.
The QELs have been drafted for use with bareboat and time
charter parties, as well as ship leasing structures, and complement BIMCO’s
existing portfolio of term sheets for ship financing and ship sale and
leaseback transactions which includes the SHIPTERM, SHIPTERM S and SHIPLEASE
term sheets.
Major
Swedish port gains status in European Union network
The recent designation of comprehensive status for Stockholm
Norvik Port marks a significant milestone following the approval of an
agreement on European Union regulations for the development of the
Trans-European Transport Network (TEN-T).
As an integral part of the EU transport network, this status
enables the Swedish port to pursue EU funding opportunities, paving the way for
further enhancements in sustainable transportation and its emergence as a key
energy hub.
In late December, the European Commission commended the
political accord reached between the European Parliament and the Council
regarding the regulation governing the trans-European transport network
(TEN-T).
With the anticipated implementation of the new TEN-T regulation,
expected around April 2024, several Baltic Sea ports are poised to change
status, with Stockholm Norvik Port ascending to comprehensive status.
This development empowers Ports of Stockholm, along with
stakeholders and collaborative partners, to seek and secure EU funding aimed at
fortifying the infrastructure and services of Stockholm Norvik Port,
strategically positioned in the Baltic Sea. Such initiatives are vital for
stimulating regional growth, fostering job creation, and facilitating more
sustainable practices for businesses operating in the area.
"It is a very welcome decision that Stockholm Norvik Port
will now have this status within the EU transport network. In our development
projects it is important to have the possibility to apply for external funding
and this decision gives us additional power to maintain and develop Stockholm
Norvik's position as a state-of-the-art port for the future," said
Magdalena Bosson, CEO of Ports of Stockholm.
The EU's Trans-European Transport Network serves as a mechanism
for cultivating a seamless, efficient, and diverse transport infrastructure
across the entirety of the EU. This network encompasses railways, inland
waterways, local maritime routes, and roadways that link urban centres, ports
both maritime and inland, airports, and terminals.
As per the agreement, future evaluations of a port's status
within the TEN-T network will consider not only its freight volumes and
passenger traffic but also its role in facilitating the energy transition.
"It is very positive that the EU will make this change and
confirm how important the ports are to energy transition. Ports today are more
than just part of the transport infrastructure.
Stockholm Norvik Port has the potential to be a strategic hub
and partner when it comes to the development in the Greater Stockholm region
within areas such as innovation and the transition of society to sustainable
energy systems. The European ports, especially the Baltic Sea ports, are likely
to play a decisive role in the energy transition in Europe," explained
Jens Holm, chair of the Board of Ports of Stockholm.
As part of a comprehensive strategy for efficient and
environmentally friendly mobility, the European Commission has put forth a
proposal to amend the current Trans-European Transport Network (TEN-T)
Regulation established in 2013.
The updated proposal
emphasizes the need to boost the share of transportation via railways, local
maritime routes, and inland waterways, thereby fostering a more sustainable
transportation framework and mitigating the adverse effects of transport. The
revised TEN-T Regulation seeks to establish a clear framework for the evolution
of the EU's transportation infrastructure from the present day through to 2050.
Rotterdam sees TEU
decline amid stable financial results
The Port of Rotterdam handled 13.4 million TEUs in 2023,
translating to a 7% drop compared to the previous year's figures. Additionally,
the container throughput in tonnes was 130.1 million tonnes, lower by 6.8%.
"Container throughput has proved to be very volatile in
recent years in response to Covid and geopolitical developments," said a
Port of Rotterdam official, adding that the main reasons for the decline that
began in 2022 and continued in 2023, are "lower consumption, lower
production in Europe and the discontinuation of volumes to and from Russia
pursuant to the sanctions."
Additionally, the Roll-on/roll-off traffic (RoRo) fell by 5% to
25.9 million tonnes, while the break bulk sector saw a 15,1% decrease, largely
attributable to the decline in container rates, resulting in more cargo being
shipped in containers rather than as break bulk.
Furthermore, the throughput of dry bulk in 2023 was 11.8% down
from 2022, while liquid bulk throughput was 3.4% lower than last year.
However, the Port of Rotterdam Authority reported financial
stability with its revenues rising by 1.9% to €841.5 million, operating
result before interest, depreciation and taxes (EBITDA) increasing by 0.9% to
€548.6 million and the net result falling by 5.6% at €233.5 million.
"The lower net result was attributable to two one-off items
in 2023," pointed out the Port Authority, explaining that "acquired
nitrogen deposition rights were revalued downward (€8 million) in response to
the ruling from the Council of State relating to the 25-kilometre cut-off. In
addition, the Porthos guarantee premium (€7.3 million) was booked, leading to a
lower result for participating interests."
The Port Authority invested a total of €295.4 million during the
previous year, almost 15% more than in 2022. The largest investments were the
investments in quay walls for the container sector (€72.9 million), land
reclamation for the Prinses Alexiahaven (€23.1 million) and the fendering in
the Rozenburg lock (€12.8 million).
Asian ship owners to
face over US$1 billion emissions liabilities for EU-bound voyages
Asian shipping companies face significant emissions cost
exposure from the EU ETS / Illustration: OceanScore
According to OceanScore, Asian vessel owners operating ships to
and from Europe are anticipated to encounter emissions liabilities exceeding
approximately €1 billion (US$1.1 billion) once the EU Emissions Trading
System (EU ETS) is fully enforced.
According to the statement, the highest burden is expected to
fall on companies registered in China and Singapore. Hamburg-based maritime
technology firm OceanScore has projected that Asian-based Document of
Compliance (DoC) holders will need to hand over between 15-16 million EU
Allowances (EUAs), or carbon credits, for voyages to and from the European
Union, accountable for 50% of emissions. Additionally, port calls and transits
within the EU will be liable for 100% of emissions.
The estimated EU ETS costs for Asian owners are approximately
€500 million (US$540 million) this year, with liabilities for 40% of emissions,
increasing to 70% in 2025 and reaching 100% in 2026 during the three-year
phase-in period of the regulation. It is anticipated that around 4,000
Asian-flagged vessels will be affected by the EU ETS, comprising approximately
one-third of the total 12,500 cargo and passenger ships above 5000gt currently
subject to the EU ETS.
Furthermore, these vessels are owned or operated by 400 DoC
holders, including major players such as China’s COSCO, Anglo-Eastern Ship
Management based in Hong Kong, and South Korea's HMM, with about half of the
affected vessels operated by non-EU DoC holders.
Also, the estimated €1 billion (US$1.1 billion) cost for Asian
shipping is contingent upon the fluctuating carbon price, which currently
stands at around €55 (US$60) per tonne of CO2. This price is determined by the
supply and demand for EUAs.
"A total of nearly 80 million EUAs will have to be
surrendered by the shipping industry once the EU ETS is fully phased in, of
which 40% will come from non-EU companies, also including the UK, Norway and
Turkey," stated Albrecht Grell, co-managing director of OceanScore.
According to OceanScore's forecast, Chinese and Hong Kong-based
entities are expected to surrender approximately 5.5 million EUAs, while
Singaporean players may surrender 5.4 million. Additional contributions are
expected from Japan (1.6 million), South Korea (1.2 million), and India (1.1
million). When considering other Asian countries like Thailand and Malaysia,
the total number of EUAs required rises to 20 million.
In terms of individual company cost exposure, OceanScore's
analysis reveals that a company operating 15 vessels would need to surrender
just over 300,000 EUAs, amounting to a cost of approximately US$18 million
based on the current carbon price.
Moreover, voyages to and from Europe contribute approximately
59% of emissions subject to the EU ETS, while 41% stem from voyages and port
activities within Europe. Despite this, voyages to and from Europe will bear a
lesser cost burden compared to domestic European traffic, mainly due to the 50%
liability factor.
Breaking up long-haul voyages into the EU by making stops at
transshipment ports is a strategy to mitigate emissions exposure. However,
according to Grell, there is little serious discussion about this approach due
to its adverse effects on fuel costs, extended waiting times, increased sailing
distances, and other inefficiencies.
Asian players make up approximately 25% of the total 1700
Document of Compliance (DoC) holders affected by the regulation. This
regulation particularly concerns European owners whose vessel deployment
pattern predominantly focuses on the EU region.
Grell further added, "Consequently, we see that European
owners generally have started to prepare earlier for compliance with the EU ETS
as it is closer to home and is therefore perceived as having a more tangible
financial impact on their operations. It is also typically easier for companies
domiciled in the EU to set up Union Registry accounts required for handling
EUAs, as well as gain access to trading platforms, which is more difficult for
those based in non-EU countries given sometimes quite complex Know Your
Customer (KYC) processes."
In addition to encountering administrative obstacles, he argues
that non-EU players have been placed in a disadvantageous position due to the
delayed finalization of Implementation Acts by the EU. This delay risks
catching them off guard when it comes to the collection and subsequent
surrendering of EU Allowances (EUAs). One of the measures entails assigning the
responsibility of reporting emissions and surrendering EUAs to the shipowner,
though this obligation can be transferred to the technical manager if an
agreement to that effect is established.
OceanScore is currently aiding shipping companies, both within
and outside the EU, in establishing administrative frameworks to navigate the
intricacies of the EU Emissions Trading System (ETS). This assistance is
facilitated by its web-based ETS Manager, which offers a comprehensive solution
to facilitate the management and trading of EU Allowances (EUAs).
The ETS Manager efficiently oversees the process of allocating,
requesting, and collecting EUAs from charterers based on various charter
agreements. It ensures complete transparency regarding all associated data
flows. Additionally, the ETS Manager actively monitors Union Registry accounts
for EUAs and decreases risks associated with open EUA positions by identifying
any missing allowances that require collection.
"It is vitally important that non-EU actors engaged in
trading vessels to and from the EU also become fully up to speed with the
regulation and put systems in place to manage and mitigate their EUA
liabilities," explained Grell.
Since the members of OCEAN Alliance (CMA CGM, COSCO Shipping
Lines and Evergreen Marine Corporation) did not have many
newbuildings join their fleets, nor reassign vessels from other loops,
they struggled to operate their usual Asia-North Europe and Asia-Mediterranean
schedules amid the Red Sea crisis.
Alphaliner’s report showed that while mainline operators should
offer 8.5 departures per loop in a week, OCEAN managed just 6.3 weekly loops.
While the COSCO-operated Asia – North Europe LL1 / AEU1 service
offered eight sailings and one of these was performed by the 24,188
TEU OOCL Valencia on its maiden voyage.
Another COSCO-operated loop, the AEU7, however only had four departures
from Shanghai, despite adding the comparatively small 9,469 TEU Beijing to the
fleet.
As the mixed COSCO / Evergreen Asia – Mediterranean AEM1 / MD2
loop only had one sailing in January, the 19,273 TEU megamax COSCO
Shipping Aries was shifted from a North European loop to this Mediterranean
service for the first sailing in February.
There were also missed sailings for the Asia – East
Mediterranean BEX loop, which needs four additional ships to continue on a
weekly basis. Due to a lack of vessels, only one February sailing could be
offered with the relatively small 5,668 TEU Xin Xiamen.
CMA CGM was able to compensate this partly for its clients with
ad hoc sailings for its own account of the 5,782 TEU CMA CGM Mozart and
the freshly-delivered 6,014 TEU CMA CGM Khao Sok which will sail to
the Adriatic region.
In contrast, THE Alliance (Hapag-Lloyd, Yang Ming Marine
Transport, HMM and ONE) could react quicker to the Red Sea crisis since it had
already suspended the South East Asia – North Europe FE5 loop and the Asia
– US East Coast EC4 service at the end of November 2023, thus gradually freeing
up no fewer than 22 neo-panamax vessels.
THE Alliance managed to offer seven weekly departures for their
three loops between Central China and North Europe since Hapag Lloyd received
the 23,664 TEU newbuilding Busan Express and ONE shifted the 14,952 TEU
chartered sisters Zenith Lumos and Zeus Lumos from the Asia – Mediterranean
trade to the FE3 and FE4 loops.
Mediterranean Shipping Company, the most aggressive operator in
expanding its fleet, was able to benefit the 2M alliance’s sailing frequency on
the Asia-North Europe and Asia-Mediterranean lanes.
Maersk and MSC managed to increase the fleet of the Asia – North
Europe – Scandinavia AE5 / Albatross’ service to 16 units, which enabled them
to offer nine sailings on that service through January and February.
The addition of the 19,437 TEU MSC Ditte and the 17,816 TEU Ebba
Maersk to the fleet of the Asia – North Europe – Baltic AE10 / Silk allowed 2M
to offer nine departures for that loop as well.
/// Air Cargo News ///
OPERATIONAL ALERTS
IMPORTANT INFORMATION:
NEW REQUIREMENTS IN UAE FROM 29 FEBRUARY 2024
Harmonised System Codes
(HS) now required in UAE as part of ACI.
The UAE’s Advanced Cargo Information (ACI) filing requirements
now requires that from 29 February 2024 Harmonized System
Codes (HS) must be specified for all goods items on the air waybill or house
air waybill.
The inclusion of this advanced information allows for the
monitoring of the safety and security of the UAE’s external borders and applies
to all cargo and courier entering departing from or transiting UAE. Please
note, this does not apply to mail.
FAQs
Is a Harmonised Systems Code (HS) requested on all mode of
transport Import/Export/Transit?
Yes, on Import, Transit and Export.
How many digits of the HS code are required?
The first 6 digits.
Should the HS code be reported in the house and master?
The HS code is to be reported on the house air waybill level.
For direct shipment, HS code is to be reported on the AWB level.
How do NAIC expect the reporting of the HS code on consolidated
shipments?
Regarding Consolidation shipment, the HS code should be reported
on the house air waybill.
In the required field for the description of goods in the
master, what should be included?
For AWB handling consolidation shipments, the goods description
must include “Consolidation”. For AWB handling Direct shipments, actual goods
description must be mentioned in the AWB.
Challenge Handling expects
rapid volume increase in 2024
Photo:
Challenge Group
The Challenge Group is expecting its air cargo handling volumes
at Liege Airport to rapidly increase this year following a series of new
contract wins.
Last year, Challenge Handling saw its volumes at the Belgian
cargo hub decline by 6.8% year on year to 256,422 tonnes. “This shift can be
attributed to disruptions and geopolitical tensions throughout the year.
Considering the context, these figures indicate a noteworthy stability in
operations,” said David Alexis, general manager of Challenge Handling.
Looking ahead, the company expects volumes to increase by just
under 25% to 320,000 tonnes this year. The company said it had won new handling
contracts with MSC Air Cargo, Georgian Airlines and Coyne Airways, in addition
to its longstanding partnerships with Network Airline Services, Magma and
Eurocargo.
The group’s airline business has also been expanding capacity
and earlier this year announced the addition
of a Boeing 747-400 freighter. The
airline also took delivery of its first Boeing 767 freighter in August last
year and expects to add three more in 2024.
To support the expected growth, Challenge Handling will launch a
truck slot booking app and an operational handling app to facilitate and
improve live data capture.
“In addition, truck loading software will speed up the handling
of perishables, and 24/7 digital live tracking and monitoring of ramp
activities will help to identify areas of improvement and enable fast action in
case of irregularities,” the company said. “These efficiency measures are
complemented by fast, round-the-clock customs clearance at Liège.”
Other enhancements are planned in Challenge Handling’s security
processes, including biometric and face recognition access control, 24/7
security CCTV monitoring, and a new integrity test as part of the recruitment
process.
Challenge Handling will also be investing in electrical cars on
the ramp, electrical tractors and other greener Ground Power Unit equipment
this year.
CHAMP launches new
e-commerce service for ICS2 compliance
Photo:
Travel mania/ Shutterstock
CHAMP said the latest phase of increased ICS2 requirements
demands reporting at the House Air Waybill (HAWB) level, with the “added
complexity that each commodity must be reported separately”. “This poses
potential risks for the e-commerce industry if air carriers, freight
forwarders, express courier service providers or postal operators do not ensure
they have the processes or technology in place to respond to these new
requirements,” the air cargo software firm explained.
The service consolidates information from the sender and
generates outputs in formats specified by relevant governmental agencies, CHAMP
said. CHAMP chief executive Chris McDermott explained: “CHAMP’s portfolio is
built on its open neo platform, enabling quick development, launch and
integration with other CHAMP or third-party services.
“TGE is a fantastic tool, that will help air cargo businesses to
expand into new markets, capitalise on the opportunity of e-commerce, and avoid
costly delays by ensuring regulatory compliance quickly and cost-effectively.”
The company said that the system would be updated as more
pre-load and advance filing initiatives are adopted and it can link with other
Traxon products and services.
Source:
Dube Cargo Terminal
Dube Cargo Terminal at King Shaka International Airport has seen
air cargo volumes spike in recent months as a result of congestion at South
Africa’s sea ports. The terminal company
said that in the last four months of 2023, its air cargo volumes were up 57%
quarter on quarter due to modal shift.
The trend had continued in January this year, the company said.
“This significant increase in airfreight has been observed across various
industries, from perishables to automotive, the latter traditionally being
reliant on ocean freight,” said Ricardo Isaac, Dube Cargo Terminal senior
manager, cargo development and operations.
“This emphasises the need of these industries to ensure
uninterrupted production and timely delivery to export markets.” “From
September through to December 2023, we saw fruit exports to the Middle East and
European markets double in volume compared with the same period last year.
“On the automotive side, in November we saw volumes
approximately 30% higher than normal being moved through our airfreight cargo
terminal.”
Isaac added that the trend shows that for time-sensitive
commodities and in cases where production stoppage risks are heightened, having
an efficient air option has become invaluable. The country’s seaports,
especially Durban, are currently facing significant challenges that have led to
long waiting times.
This issue has had a negative impact on several industries that
are crucial to the country’s economy, including the citrus industry, the
company said. The latter has had to deal with financial setbacks due to
port-related issues, which have led to additional transportation costs.
According to Clyde & Co, backlogs outside the Port of Durban
peaked in late November when an estimated 79 vessels and more than 61,000
containers were forced to remain at outer anchorage due to operational
challenges, equipment failures, and bad weather at the port.
Issues were also reported at the Port of Cape Town, with an
estimated 46,000 containers said to have been stuck outside the Ports of Ngqura
and Gqeberha in late November.
WFS wins Air China Cargo
contract in LA
Air China
Cargo Boeing 747 freighter. Photo: WFS
Worldwide Flight Services (WFS) will handle over 20,000 tonnes
of cargo a year for Air China Cargo in Los Angeles under a new three-year
contract.
The ground handler and air cargo logistics specialist will
provide ramp and warehouse handling services for the airline’s Boeing 777 and
Boeing 747-400 freighter flights at the US west coast airport as well as cargo
handling for shipments carried onboard Air China’s passenger services to and
from Los Angeles.
Air China Cargo currently operates seven freighter
flights a week on a Shenzhen-Mexico (NLU)- Los Angeles
-Shenzhen, Shenyang-Los Angeles -Beijing routing. Additionally, the
airline’s four passenger flights a week connect Los Angeles to Beijing and
Shenzhen.
“This is a major contract win for WFS in Los Angeles, which is
such an important gateway for Air China on the US west coast,” said Jose
Canales, senior vice president, commercial & business development for WFS
in North America.
“It also extends WFS’ partnership with the airline to more than
10 stations globally, including New York JFK, Washington Dulles, and Paris CDG.
This relationship spans over 30 years and with Air China’s fleet and network
growth plans, we hope to extend this further based on our understanding of the
airline’s service requirements and the operational excellence our teams
deliver.”
WFS handles over 50 airline, freight forwarding, and e-commerce
customers in Los Angeles, processing over 760,000 tonnes of cargo a year across
multiple warehouse facilities at the airport.
UPS bids farewell to MD-11F from Europe
The U.S. integrator, United
Parcel Service, will no longer fly to Europe with MD-11 freighters on scheduled
services. This was confirmed by company spokesman, Holger Ostwald, when asked
by CargoForwarder Global. However, he did not give a specific date for the
final continental cargo flight of the ‘ELEVEN’. In a first reaction, the
airport management at Cologne-Bonn has warmly welcomed the decision.
Cologne-Bonn is the integrator’s largest
international hub after Louisville, Kentucky. There, its MD-11F workhorses will
soon be replaced by the significantly larger Boeing 747-8F. The aircraft is
much more modern and offers key advantages as shown by the uplift capacity of
133 tons versus the 94 tons that an ELEVEN accommodates.
Another benefit is the capability of
burning sustainable aviation fuel to power 4 turbines whereas the tanks of the
three-engined MF-11F are filled with traditional Jet-A1 kerosene.
Hence, the B747-8F emits 90% less
greenhouse gas when using SAF compared to the emissions of its forerunner
manufactured by airframer McDonnell Douglas in Long Beach, California. However,
the prerequisite is that sufficient quantities of SAF are available and
customers are willing to pay the higher price compared to fossil kerosene.
B747-8F as a testing ground
“We have very close ties to the city
of Cologne, where we have been involved with the Air Hub since 1986,” says
Laura Lane, UPS Chief Corporate Affairs and Sustainability Officer.
She indicated that the B747-8F will soon
become the integrator’s testing ground for new sustainable logistics solutions. “Similar to the introduction of our latest
cargo bikes and electric delivery vehicles in the city center, the switch to
quieter and more fuel-efficient aircraft is evidence of our commitment to
achieving the global goal of carbon neutrality by 2050,” emphasizes
Ms. Lane.
Less noise
In addition to this specific beneficial environmental aspect, Thilo Schmid, CEO
of Flughafen Cologne/Bonn GmbH, points to another advantage resulting from the
fleet modernization: lower noise emissions. “Our airport is a modern hub that is not only efficient and
customer-friendly, but also sustainable and environmentally conscious,” emphasizesthe
executive.
He goes on to say: “We are therefore delighted that, together with
our long-standing and close partner UPS, we are now achieving the joint goal of
no longer using the MD 11F in regular operations, and replacing them with
quieter aircraft of the latest generation. This shows that progress and a focus
on sustainability and good neighbourly relations can go hand in hand.”
The airport possesses a 24/7/365 operating
permit, but there are repeated complaints from local residents about aircraft
noise. This is even more remarkable given that the latest generation of
aircraft is significantly quieter than previous models, which caused a much
greater noise footprint.
Lowering emissions on the
ground
In addition to UPS, its direct competitors, FedEx Express and DHL Airways, also
use Cologne-Bonn as a hub for their scheduled flights. This traffic is
complemented by traditional cargo airlines such as Istanbul-based MNG, for
instance, which offer main deck capacity, as well as passenger airlines that
carry air freight in the lower deck compartments of their jetliners.
As part of the U.S. integrator’s broader
commitment to sustainable operations at CGN, UPS now uses 100% hydrogenated
vegetable oil (HVO), to power large ground support equipment such as hoists,
belt loaders, tankers and de-icing vehicles. All electrical processes at the
package delivery company’s Air Hub, such as the 38 km conveyor system, are
powered by electricity from renewable sources.
PACTL turns 25 this year
Carsten Hernig
shares PACTL’s journey and plans. Image: PACTL/CFGThe Shanghai Pudong
International Airport Cargo Terminal (PVG), PACTL for short, is a Sino-German
joint venture that has grown into one of the world’s top cargo terminals since
it was founded in 1999. This year will see the air cargo terminal operator
celebrate its 25th anniversary, so
CargoForwarder Global spoke to its Deputy General Manager and VP Sales &
Marketing and Production, Carsten Hernig, to learn more about what has happened
in those 25 years.
Three shareholders: SAA Logistics
Development Co., Ltd. (51%), Lufthansa Cargo AG (29%) and JHJ Logistics
Management Co., Ltd. (20%), stand behind the now well-established cargo
terminal operator. While Lufthansa Cargo was one of PACTL’s first customers from
the outset and the two enjoy a strong partnership, having developed PVG as the
cargo airline’s largest and busiest station in Asia-Pacific (it operates 21
passenger, 11 cargo and up to 14 other scheduled flights each week), PACTL
prides itself as being a neutral service provider.
“It
is part of PACTL’s DNA that PACTL is a neutral service provider, and our credo
is that we treat every customer as individually as possible,”
Hernig emphasizes. The company also distinguishes between customer and
shareholder roles, and has this to say about the shareholders: “The combination of Airport-, Airline- and
logistic know-how in this shareholder combination has been the recipe for
PACTL’s success.”
PACTL’s 25th Birthday and the years
leading up to it
The second half of this year will see PACTL invite customers and partners to
celebrate its milestone, Hernig reveals. CFG asks about PACTL’s development
over the years. “From a moderate start
in 1999 with 10,000 tons in one terminal building, PACTL has continuously
developed and is able to handle, in total, over 2 million tons per year in a
multiple terminal system,” he says, listing other milestones in the
company’s history.
These include the opening of a second PACTL
cargo handling terminal in Pudong, in 2005, to offer domestic cargo and certain
international customer airlines. A decade later, in 2016, PACTL took a share in
the cargo handling terminal in Nantong airport (also a combination of domestic
and international flights, and with a strong potential for e-commerce and
charter operations). Then, just two years ago, PACTL took over the operation of
one international and one domestic freight terminal in Hongqiao, Shanghai’s
second airport. Overall, PACTL today serves around 70 airline customers,
including around 20 freighter or combination airline customers.
The effect of the pandemic
“Obviously the pandemic has had a
steep influence,” Hernig responds to CFG. “From 1.8 million tons in 2019, we dropped to 1.3 million tons in 2022 – the lowest in PVG.
Operational restrictions made processes significantly longer and more labor
intensive.
Literally nothing could be processed in the
way it had been done before. Every process had to be redesigned according to
the health regulations in place. I think our team is proud that PVG – and, in
particular, PACTL – has kept many supply chains of the globe up and running,
while many other transportation alternatives had collapsed. One of our
customers wrote very nicely to us: ‘You kept the world alive’”.
Last year, PACTL managed a slightly higher
than 50% market share in PVG; also redeeming part of the tonnage lost during
the pandemic. Hernig reported a figure of 1.5 million tons of cargo for Pudong
Airport and reasoned that the increasing trend was mainly driven by the upswing
in the second half of the year. And the outlook for this year?
“Operations
are now back to normal. During 2024, we expect that also the number of
passenger flights will get back to pre-covid levels. In terms of quality level,
we are proud to say that, despite increased volumes, we have reached a
historically high performance which is also reflected in the best-ever value of
our customer satisfaction index,” he says.
The biggest
challenges/learnings during that time?
The logistics behind the logistics were challenging during the pandemic, with a
detrimental economic effect. Given that passenger business had been suspended,
much-needed belly capacity simply disappeared. From an operational point of
view, the many health management restrictions complicated cargo handling
processes and time. “Our team members
had to stay in long quarantine periods after work and the teams had to work in
so called bubbles in order to minimize potentially infectious contacts among
people. A lot of infrastructure needed to be set up, such as testing and
quarantine facilities, etc.,” Hernig details.
But aside from the challenges, there was
also the positive shift in airport mindset: “Before,
many airports mainly focused on passenger business but, during the pandemic
situation, the focus had clearly shifted on cargo activities. In consequence,
many other airports in China have developed cargo development strategies. This
is leading to a competitive situation among several airports, which encourages
and motivates our team to be better than our competition. The pandemic has
proven that with a strong team, we can handle any challenge,” he
comments.
And touching on that strong team, CFG asks
if PACTL has any issues when sourcing new staff? Hernig underlines that while a
candidate’s education degree, former employer, position, etc., are of interest,
along with related industrial backgrounds, there is a scarcity of people with
air cargo experience.
Because of that challenge, he points out: “Now, we decided to expand our vision. After all,
there’re a lot of excellent candidates in other industries and even other
countries.
Some positions are not limited to cargo
industry, for example, finance, IT, procurement, etc. We welcome candidates
from different industrial backgrounds. One can learn the air cargo business if
one’s mindset is right.”
Partners, Digitalization and…
PACTL continues to grow its services. One such example is the strategic
cooperation agreement with Jettainer, signed in NOV23, detailing the intention
to open a new hub for the lease&fly ULD leasing service at Shanghai Pudong
International Airport (PVG).
“The
operation has started and Jettainer is able to lease equipment to their
customers in Pudong. Similarly other ULD providers are operational at PACTL.
For us as a handling terminal, this is an important value addition, as our
airline and forwarder customers can flexibly lease additional standard or
special equipment according to their needs, under one roof,” Hernig
reports.
On digitalization, he reveals the intention
to follow IATA’s ONE record initiative: “…in
China, where digitalization has reached a higher degree than in many other
countries, PACTL is further developing its operation system, Easy Cargo, for
export and import. The aim is to digitize the entire documentation. During the
current Easy Cargo Phase 2 project, additional functionalities are being added,
in order to further facilitate and streamline the paperless data exchange along
the supply chain.”
…Sustainability
Digitalization is already a lever for greater sustainability and is thus part
of PACTL’s strategy. “We have managed
to reduce paper by more than 25%, already – that is a success, but there is a
way to go,” Hernig states, going on to list other green measures: “Since 2013, we are pushing forward our e-driven
forklifts project and have replaced 80% own-used diesel forklifts with electric
ones.
Since 2021, we are introducing
energy-saving lamps, expecting to reduce electricity consumption by more than
15%. Solar Power is being collected on the roof of the handling facility in
order to generate green energy. China has developed a very eager path to
achieve significant improvements of CO2 emissions.
Consequently, we are actively motivated to further improve.”
CfG: Where do you see PACTL
in 5 years’ time? And what is your outlook on the air cargo industry in general
for the future?
“Of course, we all don’t have a crystal
ball, but I feel that the outlook over the next five years for air cargo in
China will be rather positive. The Chinese government has launched a series of
activities to promote the economic growth and competitiveness.
These measures will certainly show some
positive effect and will in total overcompensate for the tonnage reduction,
which is resulting from global dual-sourcing strategies. At the same time, the
global economy faces a number of challenges, such as inflation, conflicts etc.,
which will have some kind of a counter effect. Overall, we do however foresee a
rather positive outlook.”
Hernig says that the main short-term growth
driver is the return of international passenger flights, which leads to
increased tonnage. e-commerce is another great potential, which will continue
to grow. “In our expectation, we have
a chance in Shanghai to over proportionally grow in this segment, due to the
fact that this commodity has a high growth rate by itself, but moreover, the
airports in the south of China, where the majority of the production sites are
located, are saturated, and this cargo will find ways to other airports.
We have an excellent
cross-border-e-commerce terminal facility, which allows our customers to
rapidly deliver e-commerce shipments in fully customs-compliant manner. Being
the Chinese airport with the best global connectivity makes Pudong an
attractive gateway for these volumes.”
Teaming up with international partners will
help to expand services related to e-commerce demands, and substantially
improve the time-to-market. PACTL has identified many levers to optimize and
accelerate the customer experience and shipment journey, and is continuously
working to increase the attractivity of PACTL and PVG.
It plans to implement transit possibilities
domestic/international and international/international, to transform PACTL to a
transit hub. Remote cargo acceptance terminals in industrial hubs, are being
established to facilitate cargo delivery and better integrate the Yangtse River
Delta economic region. “The first one
has already opened in Suzhou, and more are to follow.”
“In
order to prepare for the future, we will be significantly upgrading PACTL West.
Part of this upgrade will be a new and even better e-commerce terminal as well
as a cool center in order to specifically promote the two growing market
segments,” Hernig concludes.
Thank you for the update,
Carsten Hernig, and Happy 25th Anniversary year.
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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