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 April 26, 2024.
:: Today’s Exchange Rates ::
Source : The Economic TimesRATS
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.32 |
-0.010002 |
-0.012003 |
83.34 |
83.33 |
83.31- 83.4025 |
|
|
1.0728 |
0.0029 |
0.271054 |
1.0699 |
1.0699 |
1.0695- 1.0729 |
|
|
104.2713 |
0.717003 |
0.692393 |
103.8641 |
103.5543 |
103.8604- 104.3907 |
|
|
89.3811 |
0.350304 |
0.393463 |
89.244 |
89.0308 |
89.2177- 89.4548 |
|
|
155.607 |
0.256989 |
0.165425 |
155.35 |
155.35 |
155.203- 155.743 |
|
|
1.252 |
0.0056 |
0.449292 |
1.2464 |
1.2464 |
1.2455- 1.2523 |
|
|
105.594 |
-0.263 |
-0.248449 |
105.82 |
105.857 |
105.569- 105.844 |
|
|
0.5354 |
-0.0023 |
-0.427752 |
0.5367 |
0.5377 |
0.5353- 0.5368 |
/// Sea Cargo News ///
Maersk enhances ME2
service between India and North Europe ensuring shorter transit times
A.P. Moller - Maersk (Maersk) announces a significant upgrade to its ME2 ocean service today. As of third week of April, the ME2 service will include port calls to key destinations in North Europe, namely Rotterdam, Felixstowe, and Bremerhaven.
The future port rotation of the ME2 service will be Port Tangier –
Algeciras – Rotterdam – Felixstowe – Bremerhaven – Port Tangier – Salalah –
Jebel Ali – Mundra – Nhava Sheva – Port Tangier.
This strategic extension of the ME2 service to key destinations in
North Europe will benefit North India’s exporters, particularly those in the
lifestyle and retail sectors. With upgraded service, manufacturers and
exporters will get expedited access to important consumer markets in North
Europe.
The transit times for ocean transports between Mumbai ports and
North Europe will be shortened by five to seven days. In the same way, on the
backhaul from North Europe to India, the importers for the automotive sector
will benefit from quicker transit times for automotive components coming into
India.
Despite the expansion, the nominal capacity of the weekly ME2
service will remain unchanged. Maersk will add 2 additional vessels to the
rotation to accommodate the extended coverage in North Europe. This underscores
Maersk’s commitment to customer’s evolving needs.
Adani Ports handled record 420 million tonne cargo in FY24
Cargo handled by Adani Ports and Special Economic Zone Ltd. rose
24% year-on-year to a record 420 million tonne in fiscal 2024. While the first
100 million tonne took 14 years, the second took five, and the third took
three. The fourth took less than two years.
The company's domestic ports handled over 408 million tonne of
cargo in the fiscal, according to company officials. Adani Ports is changing
the face of seaports, setting new milestones for operational excellence along
the way, they told PTI. Crown jewel Mundra in Gujarat welcomed its maiden ship
in 1998.
Since then, Adani Ports has built a network of 15 ports and
terminals in the east and west coasts of India, redefining infrastructure and
operational capabilities to drive maritime trade, both within and outside the
country. Adani Ports' journey towards becoming the largest port operator in
India has been marked by the acquisition of strategic assets across the
country’s coasts.
Shipping industry calls on UN for protection after Iran seizes ship near Strait of Hormuz
The world's shipping industry called on the UN on Friday to
provide enhanced military protection for vessels and their crews operating in
the Middle East following the seizure of a container ship by Iran. On Saturday,
Iranian armed forces seized a container ship near the Strait of Hormuz amid
rising regional tension.
“The world would be outraged if four airliners were seized and
held hostage with innocent souls on board,” said a letter from the world's
leading shipping industry associations, addressed to UN Secretary General
António Guterres.
“Regrettably, there does not seem to be the same response or
concern for the four commercial vessels and their crews being held hostage.”
According to the US Navy, Iran has “attacked or seized” about 20
internationally flagged merchant vessels since 2021. The world's leading
shipping industry associations said Iran's seizure of the MSC Aries container
ship “once again highlighted the intolerable situation where shipping has
become a target”.
Russia builds new Asia trade routes to weaken sanctions over war
Russia is pressing ahead with the construction of two new
transport corridors linking Asia and Europe, seeking to weaken sanctions over
its war in Ukraine at the same time as Middle East turmoil is disrupting global
trade.
The shipping and rail networks via Iran and an Arctic sea passage
could strengthen Moscow’s pivot toward Asian powerhouses China and India and
away from Europe. They have the potential to embed Russia at the heart of much
of international trade even as the US and its allies are trying to isolate
President Vladimir Putin over the war.
The routes could cut 30%-50% off transit times compared to the
Suez Canal and avoid security problems plaguing the Red Sea as Houthi rebels
attack international shipping over Israel’s war against Hamas in Gaza. Iran’s
missile and drone strikes aimed at Israel have added to the regional
turbulence. Still, significant hurdles remain.
While the US and its Western allies are shunning the Russia-backed
routes despite potential cost savings, major Asian and Gulf economies have
shown interest.
Turning around ports: APSEZ way
The first 100 million tonnes (mt) of cargo took 14 years, the
second five and the third three. But the fourth took less than two years, with
Adani Ports and Special Economic Zone Ltd (APSEZ) handling 420 mt of cargo in
FY 24.
The figures illustrate how India’s biggest private port operator
has been revolutionizing the industry, setting new milestones for operational
excellence along the way. Mundra, the flagship port of APSEZ, docked its maiden
ship in 1998.
Since then, APSEZ has built a network of 15 ports and terminals in
the east and west coasts of India, redefining infrastructure and operational
capabilities that ensures efficiency and industry leading turnaround time to
drive maritime trade, both within and outside the country.
APSEZ’s journey towards becoming India’s largest port operator has
been marked by acquisition of strategic assets across the country’s coastline.
In line with its vision for growth and innovation, the company has been
identifying ports with potential to help it expand its footprint and provide it
with a platform for transforming these facilities.
Port Houston exceeds 1 million TEU mark in first three months of 2024
Cranes arriving to Port Houston’s Bayport Container
Terminal.In the first quarter of 2024, Port Houston experienced a significant surge in container volumes. From January to March, the US port handled 1,069,917 TEUs, marking a 15% increase compared to the same period last year.
March, in particular, witnessed remarkable container volumes at
Port Houston, reaching 360,991 TEUs, a notable 20% rise compared to March 2023,
making it the port's busiest March on record. The boost in consumer spending on
items such as furniture and appliances contributed to a notable increase in
loaded import volumes, which soared by 23% in March compared to the same month
last year, and by 14% year-to-date.
Loaded export volumes, primarily consisting of resins, also saw
a considerable uptick, rising by 12% in March and 15% for the year, with a
total of 404,124 TEUs handled year-to-date.
“The improvements we continue to make at our facilities,
combined with a committed workforce, have allowed us to efficiently handle the
double-digit growth in both imports and exports during the first quarter.
Our customers can count on us to continue to invest in the
infrastructure and people we need to move their cargo quickly through our
terminals as demand increases," stated Roger Guenther, executive director
at Port Houston.
Also, the vessel 'Happy Diamond' recently transported six
hybrid-electric rubber-tired gantry (RTG) cranes to the Bayport Container
Terminal, part of a series of RTG deliveries slated for Port Houston terminals
this year. These RTG cranes offer significant environmental benefits compared
to diesel models, with a 90% reduction in emissions of NOx, PM, HC, and CO.
“The steady addition of hybrid-electric cranes to the fleet at
Port Houston’s terminals reflects our commitment to continue to invest in
landside infrastructure as well as our goal to reach carbon neutrality by the
year 2050,” pointed out Guenther.
In addition to the delivery of RTGs, three new STS cranes are
anticipated to arrive at Port Houston this summer, bringing the total for the
year to 32 STS cranes and 147 RTGs across both facilities.
Moreover, recent enhancements have been made to the container
yards 4 North and 5 North at the Barbours Cut Container Terminal, including
reinforced concrete surfaces aimed at prolonging longevity. These improvements
also include the addition of truck bypass lanes, enhancing safety within the
terminals and boosting cargo handling efficiency.
Furthermore, steel volumes at Port Houston's multipurpose
facilities saw a 10% decrease in March compared to the same month last year,
with a further 20% decline recorded through the end of the first quarter of
this year.
Conversely, lumber volumes experienced a 16% increase in March
and an 18% rise year-to-date. Overall tonnage across all of Port Houston's
terminals increased by 4% through March, totalling 13,422,452 tons
year-to-date.
Seoul earmarks US$2.5 billion to boost vessel capacity of smaller box lines
Source: Dongjin Shipping.As part of plans to grow the locally owned container shipping fleet, the South Korean government will set aside around US$2.5 billion to increase the fleets of SM Line and other South Korean feeder operators by 100,000 TEUs.
The kitty is targeted at SM Merchant Marine, commonly known as
SM Line, Sinokor Merchant Marine, Korea Marine Transport Company (KMTC Line),
Pan Ocean, CK Line, Namsung Shipping and Dongjin Shipping.
Currently, these companies have a combined boxship fleet of
approximately 400,000 TEUs.
The Ministry of Oceans and Fisheries said, “We hope to increase
these operators’ competitiveness in the intra-Asia shipping sector.
Furthermore, we’re supporting the development of new routes for shipping
companies operating intra-Asia routes where competition is intensifying.”
The financial support will see Korea Ocean Business Corporation
(KOBC) acquiring green bonds issued by the shipping companies or offering
reduced interest rates for loans that will be used for eco-friendly ship
building. State-controlled policy lender Korea Development Bank (KDB) and KOBC
could also invest a certain percentage in eco-friendly newbuildings.
Trade between South Korea and ASEAN (Association of Southeast
Asian Nations) is rapidly increasing. According to Korea Customs, the volume of
containers transported between Korea and ASEAN member countries in the first
quarter of 2024 was up 14% year-on-year, to 1,008,682 TEUs. If this trend
continues, this year’s South Korea-ASEAN container flow is expected to exceed 4
million TEUs, up 52% from 10 years ago.
Rising trade flows have, however, not translated into higher
profits for South Korean intra-Asia carriers, as mainline operators like Maersk
Sealand and CMA CGM have been competing aggressively. Mainline operators have
been assigning ships of 4,000 to 5,000 TEU capacity, offering lower slot costs
than South Korean feeder operators which have smaller ships.
The South Korean state’s strategy is in line with the country's
President Yoon Suk-yeol’s ambition to increase South Korea's container shipping
fleet to 2 million TEUs by 2030, a figure he disclosed during the opening
ceremony of Busan port’s seventh container terminal on
5 April. On 15 April, South Korea’s flagship carrier HMM unveiled plans to
expand its fleet to 1.5 million TEUs, up from its previous ambition of 1.2
million TEUs, by 2026.
Major
container lines jointly launch Asia – East Coast South America service
Ever Triton.In particular, CMA CGM, COSCO, OOCL, Evergreen and PIL will
jointly launch the new service on the Asia-Latin America trade in May.
The service will have two separate loops. The first loop will be
operated by 12 container ships of up to 14,000 TEU capacity and will commence
on 5 May from the port of Tianjin.
The rotation of the first loop will be Tianjin - Qingdao - Shanghai - Ningbo - Shekou - Singapore - Rio de Janeiro - Santos - Paranagua - Itapoa - Navegantes - Santos (SBG) - Colombo - Singapore - Hong Kong - Tianjin.
The second loop will start on 10 May from the port of Shanghai
and the box lines will deploy a total of 13 vessels on the following rotation:
Shanghai - Ningbo - Yantian - Hong Kong - Rio de Janeiro -
Santos - Navegantes - Montevideo - Buenos Aires - Paranagua - Santos -
Singapore - Hong Kong - Shanghai.
William Ho, PIL's General Manager at Long Haul Trade of Line
Management Division, commented, “With the continuing promising growth prospects
of the Latin America market, we have seen strong trade flows between Asia and
Latin America.
Following our enhanced presence in West Coast South America, we
would like to strengthen our presence in East Coast South America as well to
drive connectivity and better serve the needs of our customers.”
European
and US ports feel the squeeze in volatile market
Port of Ningbo.The shifting sands of economic activity are being mirrored in the development of the ports industry with terminals in emerging economies beginning to rise in the rankings as regional ports become more important.
Alphaliner’s annual list of top 30 ports has seen Dubai replace Rotterdam in the top ten, an event that owes more to Rotterdam’s declining volumes than Dubai’s growth, while Tanger Med has overtaken Hamburg in the listing.
Predictably, six of the top ten ports are Chinese, with the
remaining four comprised of Singapore, Busan, Los Angeles/Long Beach complex
and Dubai in tenth position. Notably, Hong Kong, once the world’s busiest
container port quietly slipped out of the rankings, losing an average of 10% of
volumes annually over the past five years.
Low global economic growth is still predicted looking ahead,
with the World Trade Organization (WTO) reporting world merchandise trade saw a
steeper-than-expected decline of 1.2% last year but forecasts increases of 2.6%
and 3.3% in 2024 and 2025 respectively.
Much of the decline in Europe and the US is owed to the
geopolitical challenges faced in Ukraine, the Middle East and the tensions
between China and the US. but the regional catch-up of Asian economies persists
as ports in the Middle East, India and the Far East show strong growth.
Eleanor Hadland, senior analyst - ports and terminals at Drewry
Shipping Consultants, explains, “In 2023 we saw a wide variation in performance
across the regional markets – despite North American volumes dropping steeply
(albeit in context of steep rises in 2021/22), Asian markets remained more
buoyant.”
Major US ports have declined with Los Angeles and Long Beach
figures showing a combined 12.6% fall and New York and New Jersey recording a
17.7% year-on-year fall, though the latter also suffered as Panama Canal water
levels fell significantly.
Trading in the consumer centres has wobbled, and this may not be
a permanent state of affairs, but as Hadland points out, “There have been major
strides to improve trading relationships between Asian countries – lowering
tariffs and reducing other barriers to trade. Additionally, diversification of
manufacturing outside of China has generated additional intra-Asia flows as
supply chains are also becoming intra-regional. Increased consumer power from
these markets are also part of the story, but not the whole story.”
In the long term macro-economic growth will come from the Middle
East, Asia, Latin America and later Africa, said former transport analyst Mark
McVicar, but he argues, “the US economy is doing well, employment is higher and
with 2.4% growth it is showing resilience”.
European economies suffered several shocks, as Russian sanctions
hit throughput from the start of Ukraine, while the effect of the Red Sea
crisis has damaged Mediterranean ports, particularly in the Eastern Med.
That resulted in Dubai overtaking Rotterdam in the rankings,
jumping to 10th, after it showed some modest growth, 3.6%, while Rotterdam
volumes fell 9% compared to 2019. Hamburg, which was even more reliant on
Russian trade has lost over 16% of its throughput in the same period, while
Antwerp-Bruges has been stable largely due to the 2022 merger of the two
Belgian facilities.
Hadland argued North Europe is in recovery mode, “Due to
challenging macroeconomic conditions, with soaring inflation impacting both the
European manufacturing sector and consumer demand.”
She added that the loss of Russian transhipment volumes was
still being felt in Q1 2023 but said that Drewry’s “rolling 12-month average
growth rate was improving to -1.2% in February 2024, with a further improvement
projected for March.”
This has been underscored in Q1 2024 figures with Rotterdam
reporting a 2% increase to 3.3 million teu and Port of Antwerp-Bruges reporting
a 6% increase to 3.28 million teu compared to the first quarter of 2023.
Meanwhile, Maersk and Hapag-Lloyd’s alliance, the Gemini
Cooperation, with its hub and spoke system may also see cargo shift to regional
ports. Alphaliner analyst Stefan Verberckmoes noted: “It is indeed surprising
to note that Tanger Med is already a larger container port than Hamburg.”
He went on to say, “Some of the largest carriers have invested
there as it is a perfect hub on the crossroads of East West and North South
services. This month, we saw once again a North Europe – West Africa (the EURAF
5 of CMA CGM) being shortened as calls at Antwerp and Le Havre are removed and
the service now turns in Gibraltar Strait.”
Tanger Med has four container terminals and is operated by APM
Terminals, Eurogate, and the Tanger Alliance, and handled 8.61 million TEUs
last year, eclipsing Hamburg’s 7.74 million TEUs, with the German port volumes
declining 16.5% and the Moroccan port, strategically situated in the Strait of
Gibraltar, increasing 79.4% since 2019.
Study
reveals opportunities along green shipping corridor between Singapore and
California
Port of SingaporeOne year after the Memorandum of Understanding (MoU) signed to
establish a Green and Digital Shipping Corridor, the Maritime and Port
Authority of Singapore (MPA), Port of Los Angeles and Port of Long Beach have
concluded a comprehensive baselining study.
This study projects an increase in green jobs, improvements in
local community health, and economic benefits for participating countries. It
also underscores the growing demand for zero- and near-zero emission fuels and
the advantages of decarbonizing shipping routes between these nations.
Commissioned by C40 Cities and the three partnering ports, and
conducted by the American Bureau of Shipping, the study analyzed maritime trade
flows between Singapore and the two Californian ports.
In addition, it provided a baseline of activities and energy
demand requirements for vessels operating on the corridor until 2050. This
conclusion follows the successful introduction of the corridor’s Partnership
Strategy at the 28th United Nations Climate Change Conference in December 2023,
outlining its goals, partnership structure, and governance mechanism.
Moreover, the study estimates the quantity of near-zero and
zero-emission fuels needed for this traffic by modelling the adoption of these
fuels by vessels operating on the corridor until 2050. It considers various
factors such as fuel production costs, availability, and the targets outlined
in the 2023 International Maritime Organization’s Strategy on Reduction of
Greenhouse Gas Emissions from Ships.
“This study provides a sense of scale and scope to inform our
implementation of the Green and Digital Shipping Corridor. Achieving the
reductions of greenhouse gas emissions required will take coordination and
commitment from public and private stakeholders across the maritime and goods
movement industries. We’re proud to be collaborating with industry partners to
make this corridor a reality,” stated Gene Seroka, executive director of Port
of Los Angeles.
Practically, the study underscores the socioeconomic potential
of shifting to zero- and near-zero emission fuels and embracing digital
solutions. It suggests that the corridor, upon full implementation, could
generate over 700 new job opportunities in zero and near-zero emission fuel
production while enhancing local air quality. These findings align with
conclusions drawn by C40 and other entities, indicating that initiatives within
green shipping corridors can expedite broader decarbonization efforts in the
maritime industry, offering health benefits to local communities and green
economy prospects for participating countries.
According to a statement, as significant hubs along the
trans-Pacific shipping route, Singapore, Los Angeles, and Long Beach play
pivotal roles in the maritime sector's transition toward sustainability. They
join 20 other leading ports and port cities as members of C40's Green Ports
Forum, a prominent global platform advocating collaborative climate action.
This forum actively promotes ambitious green shipping corridors, recognizing
their critical importance in facilitating the green transition of ports and
shipping sectors.
The corridor partners emphasize their commitment to a
data-driven approach, using insights from the study to inform their efforts in
advancing the partnership's decarbonization goals and aligning with the broader
objectives of the shipping sector. Key findings from the study include:
·
Vessels operating within the corridor account for 7% of global
container trade, with approximately 1% passing through Singapore, 14.5% through
the Port of Long Beach, and 20% through the Port of Los Angeles.
·
The projected annual energy demand of vessels in the corridor is
estimated to be around 60,000 terajoules, equivalent to approximately two
months of Singapore's national electricity generation.
·
Shipping demand along the corridor is expected to reach
approximately 850,000 tons of methanol and 160,000 tons of ammonia annually by
2030, which could offset greenhouse gas emissions equivalent to nearly 320,000
cars annually.
·
Transitioning to zero- and near-zero emission fuels has the
potential to create approximately 700 jobs in the production and supply chain
of such fuels by 2030.
The partnership convened the inaugural in-person stakeholder
meeting of the corridor, joined by representatives from various sectors along
the industry value chain. This gathering, held during Singapore Maritime Week
2024 on 18 April, served as a precursor to engaging stakeholders in the
corridor.
The meeting, along with subsequent working groups, will
concentrate on devising green and digital solutions to tackle the following
focal points within the corridor:
·
Facilitate the supply and uptake of zero and near-zero emissions
fuels (e.g., green ammonia, green methanol) on a large scale, encompassing
safety measures, emergency response strategies, mitigation efforts, and
standards establishment.
·
Foster the development and expansion of energy efficiency
solutions, leveraging digital tools (e.g., route optimization, remote
monitoring) and technologies aimed at reducing fuel consumption (e.g.,
wind-assisted propulsion).
·
Promote the advancement and utilization of digital technologies
to bolster the monitoring, reporting, and verification of greenhouse gas
emissions along the corridor.
All three ports will join the Accelerating Digitalization and
Decarbonization Conference hosted by MPA as a highlight of Singapore Maritime
Week 2024. Additionally, they will take part in a moderated discussion,
facilitated by C40, during the event's sidelines.
The session, titled "Navigating Collaboration: Governance
of Green Shipping Corridor Partnerships," will feature the unveiling of
C40's latest report and the sharing of insights on best practices for effective
governance within green corridor initiatives.
"Accelerating efforts to decarbonize the shipping sector is
urgent if we are to limit global heating to 1.5 degrees Celsius.
C40 is proud to support this first-mover initiative which has
the potential not only to support the development and uptake of low- and
zero-carbon fuels and vessels, but also create good green jobs and health
benefits for local communities by doing so," said Mark Watts, executive
director of C40.
Thessaloniki Port Authority S.A. (ThPA S.A.) has released its
financial results for the financial year 2023, reporting consolidated revenue
of US$92 million, relatively stable compared with the previous year's levels.
The container business of the port authority demonstrated
significant revenue growth, exceeding 12% to reach US$64 million. Similar
growth rates were observed in the real estate sector, with an 18.2% increase to
US$4.1 million. However, the conventional cargo terminal experienced a decline
in revenue by 21.5% to US$21.5 million. Revenue from the subsidiary in Sofia
remained at insignificant levels.
In terms of group performance, profitability improved across all
levels: Gross Profits increased by 1.9% to US$40.1 million, Operating Profits
(EBITDA) rose by 3.4% to US$36.3 million, and Net Profits after taxes grew by
8.9% to US$22 million.
“The implementation of the development plan and the initiatives
of ThPA S.A. are constantly strengthening the role of the Port of Thessaloniki
in the global port sector.
With continuous investments of more than US$76.1 million since
2018, upgrading the equipment, infrastructure, and services provided, and the
specialization of the Organization's human resources, we achieved the
strengthening of our partners' trust, creating new milestones for the Port of
Thessaloniki," stated Athanasios Liagkos, the executive chairman of the
BoD at the second largest port in Greece.
The Capital Expenditure (CapEx) plan for 2023 exceeded US$9.8
million, primarily allocated towards projects such as the construction of a new
Cruise Terminal named "Alexander the Great," restoration of
functional depths, quay repairs and upgrades, power substation enhancements,
procurement of loading and unloading equipment, and implementation of ISPS
security systems.
"An indicative example is the highest container throughput ever recorded at the Port (520.048 TEU). In addition, in 2023 we strengthened our extroversion, with the dynamic participation of ThPA S.A. in national and international prestigious exhibitions and with initiatives to hold events in Thessaloniki, such as the 7 th "Posidonia Sea Tourism Forum" and the 1st "Southeast Europe Connectivity Forum," added Athanasios Liagkos.
/// Air Cargo News ///
InterGlobe Enterprises, the
parent company of India's top airline IndiGo, and US-based Archer Aviation will
launch an all-electric air taxi service in India in 2026, that will carry
passengers from Connaught Place in the national capital to Gurugram in Haryana
in just 7 minutes.
Archer Aviation will supply 200
electric vertical takeoff and landing (eVTOL) aircraft that can carry four
passengers besides a pilot and operate just like helicopters but with lesser
noise and better safety.
Besides Delhi, the joint venture
between InterGlobe and Archer Aviation will launch similar services in Mumbai
and Bengaluru to start with. The cost of the seven-minute flight operated with
the company's five-seater eVTOL (electric vertical takeoff and landing)
aircraft from Connaught Place to Gurugram in Haryana could be around Rs 2,000
to 3,000, according to Archer Aviation executives.
Archer Aviation Founder and CEO
Founder & CEO Adam Goldstein on Friday said discussions are going on with
the US regulator Federal Aviation Administration (FAA) and the certification
process for its aircraft is at an advanced stage.
Unsworth prepares customers for new UK import rules for EU animal and plant shipments
Source:
UnsworthFreight forwarder Unsworth has been preparing customers for the
next stage of the UK’s Border Target Operating Model (BTOM) that will introduce
new requirements for the import of certain animal and plant products.
From April 30, UK importers and European Union exporters to the
country will be affected by the introduction of documentary and risk-based
identity and physical checks on medium-risk animal products, plants, plant
products and high-risk food and feed of non-animal origin from the EU.
Unsworth organised a tour and a questions and answers session at
the Department for Environment, Food and Rural Affairs’ (Defra) Inland Border
Clearance facility at Sevington for almost 100 clients and other stakeholders
to prepare them for the rule changes. The new changes are related to the UK’s
exit from the European Union (Brexit).
Unsworth Group commercial director Charles Hogg said: “Over the
eight years since the Brexit referendum, the freight forwarding industry has
experienced a number of policy changes and has learnt to use many new systems
including Goods Vehicle Movement Service, Import of products, animals, food and
feed system or Safety and Security Greta Britain.
“Add to that the complexity of (new customs declaration system)
CDS, the system that arrived to replace CHIEF, and the picture one can see is
that of continuous change together with increased challenges being placed on
the sector.
“The publication of the BTOM in August 2023 added further
impetus to the process but provided much-needed clarity to the rollout of new
UK policies for trade between the UK and EU.
“Consequently, 2024 seems set to be the year when the process
will be completed, or at least be near completion. With the landscape of border
regulations undergoing significant shifts, some have voiced concerns that the
potential for disruption at the border at the end of this month is
significant.”
Earlier this year, supply chain association Logistics
UK warned that there was a lack of clarity around the BTOM.
“Significant details are omitted from the model in its current
form, including information on how the groupage model will work and what Common
User Charge government will impose at its Border Control Posts; there is still
much for the government to confirm, and the implementation dates are fast
approaching,” said Ellis Shelton, policy advisor, Logistics UK. The BTOM is being implemented in phases.
Phase one, launched in January, included the introduction of
health certification on imports of medium-risk animal products, plants, plant
products and high-risk food and feed of non-animal origin from the EU, as well
as full customs controls for non-qualifying Northern Ireland goods.
Phase two – outlined above – is set to go live at the end of the
month.
And the final phase, the introduction of Safety and Security
Controls on imports into Great Britain from the EU and the rest of the world,
will take effect from October 31.
Chinese airlines to increase transpacific bellyhold capacity
Source:
ShutterstockChinese airlines will in April increase the amount of bellyhold
capacity they operate on flights to the US following approval to expand
operations.
The US Department of Transportation has from April authorised
China-based airlines to increase the number of weekly flights they carry out
between the US and China from 35 to 50.
“We believe that our present action is a significant step
forward in further normalisation of the US-China market in anticipation of the
Summer 2024 traffic season,” the DoT explained.
Following the approval, Air China will operate 14 weekly
services, China Southern will operate 10, China Eastern 12, Xiamen Airlines
five, Hainan Airlines six and Sichuan Airlines three.
However, this remains down on the more than 150 round-trip
flights that were allowed by each side before restrictions were imposed as a
result of the Covid pandemic.
The move comes as airfreight rates on services from China to the
US have been increasing.
In its latest weekly market update, airfrieght rate data
provider TAC Index said that rates out of China continued to edge up, despite
the Ching Ming festival when activity often slows.
Prices out of Shanghai were last week up by 8.4% compared with a
week earlier, while they were 8.2% ahead of last year.
Judah Levine, head of research at rate portal Freightos, said
that the increase in capacity could ease some pressure on rates on the trade
lane.
He added that air cargo volumes out of China were being driven
by growing demand for business-to-consumer e-commerce out of China.
“Online retailers like Temu and Shein are increasingly buying up
air cargo space to the west,” he said.
Freight forwarder Dimerco recently reported that e-commerce
demand had led to many block
space agreements selling out.
And in a recent Air
Cargo News special report on the transpacific trade, Brian
Bourke, chief commercial officer, SEKO Logistics, warned that space
in the peak season would be tight unless passenger
operations were ramped up.
While Chinese carriers seem keen to increase operations to the
US, take up in the other direction has been slower. The three largest US
airlines in March said they are pushing back until at least late October the
resumption of many flights to China that
they cut early during the Covid-19 pandemic.
American Airlines, Delta Air Lines and United Airlines received
authority from the DoT to delay by another 90 days the resumption of nearly 100
weekly flights to China, according to regulatory documents released on March 5.
The US carriers hold DOT-issued approvals to fly specific routes
to China, doing so under requirements laid out in the US air transport treaty
with China. The DoT can take back those approvals if carriers fail to operate
the flights.
Throughout the pandemic, the agency issued waivers in 90-day
chunks permitting the US carriers to keep the flights grounded without the risk
of losing the flight permissions. The DoT issued fresh waivers, which run
through 26 October, in February.
The US airlines had urged the DoT to act, saying demand for
flights to China remains depressed.
Boeing 777F deliveries get going as Qatar Cargo welcomes latest aircraft
Source:
Qatar CargoQatar Cargo has put into operation another Boeing 777-200
freighter – Boeing’s second 777 cargo aircraft delivery in April after a slow
start to the year.
The latest freighter (A7-BTB) travelled from Boeing’s production
site in Everett on April 14 and began commercial operations on April 16.
So far, the aircraft has been utilised on services to India and
Europe, with flights to Mumbai, Delhi and Amsterdam under its belt.
The airline has been expanding its 777-200F fleet over recent
years and now operates 28 of the model, with the latest 777-200F understood to
be the last the carrier had on order from Boeing.
However, the carrier has also placed an order for 34 of Boeing’s
new 777-8F, with
options on 16 more.
The delivery comes after Boeing was unable to deliver any 777
freighters in the first quarter of the year, although 11 of the aircraft were
reported to have been built and were awaiting engines.
The airframer also failed to deliver any passenger 777s during
the first three months of 2024.
Reports suggest the first
777 freighter delivery of the year took place on April 8 when
an aircraft left Everett on its way to Taiwan, with Eva Air the destination
according to PlaneSpotters.net.
Boeing has declined to comment on the reasons for the slowdown
in production of the model but reports have surfaced about possible
shortages of the twinjet’s GE Aerospace GE90 turbofans.
An April 5 report from financial firm Jefferies noted that
Boeing has been moving 777s, without engines installed, out of its factory
before fitting the powerplants later, according to FlightGlobal.
Asked to comment about its supply of GE90s, Boeing told FG: “As
the aviation industry continues to manage through supply chain constraints, we
are working closely with our suppliers and customers on the timing of their
deliveries.”
GE Aerospace added: “We are coordinating with Boeing and our
airline customers on GE90 engine delivery timing and production schedules.”
The US manufacturer’s first-quarter deliveries came to 83
aircraft, down from 130 in the same period of last year after a production
slowdown was initiated due to the loss of a panel in the fuselage of an Alaska
Airlines Boeing
737 Max 9 in January.
In total, there were a further 53 777-200Fs still awaiting
delivery at the end of March, minus the deliveries to Eva and Qatar
Other airlines waiting on the freighter are: Maersk Aviation
(2), Air China Cargo (4), Atlas Air (2), China Airlines (3), DHL Aviation
Americas (6), Emirates (5), Ethiopian Airlines (2), FedEx Express (2),
Lufthansa (1), Silk Way West (3), unidentified (15), Volga-Denpr UK (6) and
Western Global (2).
The latter two appear unlikely given the grounding
of the Volga-Dnepr Group’s Western fleet as
a result of sanctions related to the Ukraine war and Western
Global’s financial difficulties last year.
Boeing also delivered a single 767-300F to FedEx in the first quarter.
Kenya Airways adds second 737-800 freighter while
African sea-air demand soars
Source:
Markus Mainka/ Shutterstock.comKenya Airways has put into operation its second Boeing 737-800
freighter and is hoping the additional capacity will help the airline meet
rising sea-air demand to west Africa.
The second aircraft arrived in Kenya at the end of March and
began flying for the airline at the beginning of April.
The airline took delivery of its first 737-800F at the start of
the year and the two aircraft join Kenya Airways existing two 737-300Fs.
Kenya Airways head of cargo commercial Peter Musola said the two
new aircraft offer a greater range than the 300Fs and will be used to reach the
Middle East and India, specifically Sharjah and Mumbai, as well as destinations
in Africa.
The carrier is hoping to add services to Riyadh and Jeddah, as
well as an additional point in India, following the arrival of the second
freighter.
Musola says another driver of demand this year has been sea-air
volumes out of the Middle East as shippers look to avoid vessels taking the
longer route around the Cape of Good Hope to reach west Africa due to missile
attacks in the Red Sea.
He pointed out that Kenya Airways already serves many
destinations in west Africa and is therefore able to capitalise on the sea-air
demand.
“This has been a major modal shift of cargo from sea to
airfreight and one of the regions impacted is the west coast of Africa. KQ is
already touching into those end points in Freetown, Conakry, Monrovia, Accra,”
he said.
“Ideally, those ships would be going through the Suez, around
the continent and into that part of west Africa but for now it is kind of
sealed off.
“A lot of the exporters in the Far East are transferring the
cargo to the Middle East by seafreight and then from there it does the
airfreight hop into the continent.”
He added that the carrier is also exploring the possibility of
adding freighter flights to Dubai World Central, one of the main sea-air hubs
in the region, although he adds these plans pre-exist the rise in sea-air and
will help meet export demand (meat and perishables).
Kenya Airways is not the only air cargo company to note rising
sea-air demand into west Africa as a result of the Red Sea attacks on container
vessels.
Dirk Goovaerts, head of continental Europe, Middle East, and
Africa, and global cargo chair at Swissport International, has also noticed
increasing demand, which is expected to continue. “We continue to expect a
strong year for air cargo in Africa,” he said.
“There are many factors that play into this, but the ongoing
difficulties for ocean freight to cross the Red Sea are a major accelerator for
air cargo in Africa.”
Dubai cargo disrupted after
flash floods
Dubai
International. Source: Karol Ciesluk / Shutterstock.com
Cargo operations in Dubai continue to face disruption following flash flooding that temporarily closed Dubai International (DXB) airport. The UAE on Tuesday recorded its heaviest rainfall in 75 years as almost 26cm of rain fell, resulting in the temporary closure of DXB cancellation of around 300 flights on Wednesday.
Operations are getting back underway but flooding remains in
areas of the airport and flights continue to be delayed and cancelled.
In its latest operational update, Emirates SkyCargo said: “Due
to inclement weather conditions in Dubai on April 16 and 17, Emirates SkyCargo
is experiencing operational challenges, including flight cancellations and
delays in cargo connections due to airport logistics.
“We advise customers to utilise our tracking module on
skycargo.com to stay updated on revised booking details. We sincerely apologise
for the inconvenience caused. Emirates SkyCargo is working hard to restore our
scheduled operations, and our teams will provide all possible support to
affected customers.”
Ground handler dnata said: “We are collaborating closely with
our partners and authorities to mitigate any impact of the inclement weather
and subsequent flight disruptions and adverse road conditions on our cargo
operations in Dubai.
“Our teams are working diligently to process every cargo
shipment as quickly as possible, keeping our valued customers updated.”
DXB said in its latest operational update that it was now
accepting check-in at terminal three, where Emirates and FlyDubai operate, as
operations are back underway from that terminal.
Earlier, the airport said that inbound flights had been resumed
by international airlines operating out of terminal one. FlightRadar 24 shows flights out of freighter
hub Dubai World Central continue to operate.
Air cargo infrastructure investments still critical
Major airports in the US are still suffering from lack of
investment in air cargo infrastructure and operations and as a result ‘the
future of air cargo is at risk”, according to the Airforwarders Association
(AfA).
Speaking at the CNS Partnerships Conference in Dallas, AfA
executive director Brandon Fried said that one consequence of inadequate
investment is the lengthy waiting times that trucks are facing at airports.
Truck waiting times at airports “routinely reach two-three hours
even with decreased shipment volumes”, pointed out Fried during the Opening
Plenary of the conference. He added that in comparison trucks were waiting
seven-nine hours during the pandemic peak.
Speaking of the present delays, he added: “This inefficiency
disrupts supply chains and hinders economic growth.”
He further noted that the collapse of the Francis Scott Key
Bridge in Baltimore after it was struck by a container ship highlighted the
need to “prioritise safety and security of our infrastructure”.
The AfA and the National Customs Brokers and Forwarders
Association of America recently released a whitepaper which highlights key
areas requiring investment.
These include public sector financial support for infrastructure
development and upgrading facilities, more digitalisation and automation to
improve efficiency of truck operations, training programmes for workforce
development, modernising security badging processes at airports and consistent
policy enforcement to support a robust operating environment.
To tackle the airport congestion issue, the AfA enlisted the
support of three US Senators to convince the Government Accountability Office
to carry out a review of the issues.
“Our hope is that the study will validate the challenges we face
and open the door for legislation requiring the federal funding necessary to
alleviate congestion and improve truck throughout at our nation’s airports,”
explained Fried.
He also stressed that while the air cargo industry understands
the urgency required to prevent the flow of illegal substances, such as
fentanyl, and supports efforts to tackle this, the industry should resist
efforts to implement 100% physical inspections of pharma packages.
“Such an approach would grind air cargo operations to a halt,
disrupting legitimate trade and harming the global economy.
“Instead, we urge governments to leverage advanced data analysis
and cutting-edge protection technologies to target suspicious shipments without
impeding the flow of commerce.”
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
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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