JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91
98407 85202
Corporate News Letter for Thursday April 04, 2024.
:: Today’s Exchange Rates ::
Source : The
Economic Times RATES
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.43 |
0.040001 |
0.047968 |
83.36 |
83.39 |
83.3575- 83.45 |
|
|
1.0783 |
0.0013 |
0.120704 |
1.077 |
1.077 |
1.0764- 1.0787 |
|
|
104.8987 |
0.0895 |
0.085394 |
104.8461 |
104.8092 |
104.8204- 105.027 |
|
|
89.8378 |
0.277298 |
0.309621 |
89.8426 |
89.5605 |
89.8005- 89.9383 |
|
|
151.868 |
0.307999 |
0.203219 |
151.56 |
151.56 |
151.447- 151.914 |
|
|
1.2571 |
-0.0007 |
-0.055652 |
1.2577 |
1.2578 |
1.2563- 1.2588 |
|
|
104.81 |
-0.006004 |
-0.005728 |
104.772 |
104.816 |
104.705- 104.843 |
|
|
0.55 |
0.00 |
0.00 |
0.5502 |
0.55 |
0.5497- 0.5505 |
/// Sea Cargo News ///
How shipping containers can make or break the global economy
The shipping container is a logistics marvel that can affordably
move thousands of items from hundreds of different companies all around the
globe. If there is a slowdown in shipping-container circulation, there could be
massive supply chain bottlenecks.
“The skill involved in
containerization is moving that container from point A to point B and getting
it back to point A as quickly and efficiently as you possibly can,” Simon
Heaney, senior manager of container research at Drewry, a maritime research and
consulting firm, said.
Disruptions to global trade can
have major impacts on shortages and inflation, causing serious ramifications
for American households and businesses.
For example, the Federal Reserve
Bank of San Francisco found that supply chain disruptions “contributed on
average about 60% of the run-up of U.S. inflation” in the two years following
the coronavirus pandemic outbreak. “People suddenly realized how important that
container is to everybody’s standard of living,” John Fossey, senior analyst of
container equipment at Drewry, said.
Indeed, inflation cooled
alongside the bounce back of the supply chain, according to a White House
analysis of the U.S. economy. The study showed more than 80% of recent progress
in lowering inflation can be attributed to the supply chain.
Attacks by Iran backed Houthi
militants on ships travelling through the Red Sea have also led ocean carriers
to take longer voyages around the Cape of Good Hope. “Taking the long way
around the bottom of Africa, that’s adding about one third to their voyage
distance,’ John McCown, non resident senior fellow at the Center for Maritime
Strategy, said.
Longer voyages result in higher fuel costs for ocean carriers and late arrivals of shipments to their planned destinations, contributing to delays in returning containers to nations like China to be reloaded with exports.
The bridge collapse shut
down shipping traffic at Baltimore's port 'until further notice'
The bridge collapse in Baltimore
is having a significant impact on the city's port, one of the nation's busiest.
A container ship crashed into the Francis Scott Key Bridge at around 1:30 a.m.
Tuesday, causing the structure to fall into the Patapsco River.
Paul Wiedefeld, the Maryland
transportation secretary, said at a press conference: "Vessel traffic into
and out of the port of Baltimore is suspended until further notice." The
port remains open to trucks, however. By tonnage volume, the port of Baltimore
is only about the 18th busiest in the US.
However, it is thought to be the
largest for roll-on/roll-off ships that carry trucks and trailers. Maersk, the
Danish shipping company that chartered the vessel, said it was "omitting
Baltimore on all our services for the foreseeable future."
It added that for ships already
on the water, cargo set for Baltimore would be taken to other ports and then
moved on land. "Please note that for cargo set to discharge in Baltimore,
delays may occur, as they will need to discharge in other ports. We are keeping
a close eye on the safety situation in the area and continuing to assess the
viability of transportation through the area," Maersk said.
Baltimore bridge collapse: Coal exports likely to be blocked for weeks
The collapse of a major
Baltimore bridge Tuesday is likely to shut down the port’s coal exports for as
many as six weeks and block the transport of up to 2.5 million tonnes of coal,
said Ernie Thrasher, chief executive officer of Xcoal Energy & Resources
LLC.
The US exported about 74 million
tonnes of coal last year, with Baltimore the second-largest terminal for the
commodity. Plugging up a major coal hub threatens to disrupt global energy
supply chains that have finally begun to work out the kinks left over from
pandemic slowdowns.
“You’ll see some diversion to
other ports but the other ports are pretty busy,” said Thrasher at Xcoal, a
Pennsylvania coal trading firm that works with several suppliers. “There’s a
limit on how much you can divert.”
Baltimore ships less than 2 per
cent of global seaborne coal so the bridge collapse will have little effect on
global prices, Thrasher said. He added that the coal that moves out of
Baltimore includes a lot of India-bound thermal coal, which is used for electricity
generation.
Maersk responds to
T&E report claiming shipping lines are cashing in on ETS
A report by Transport and
Environment (T&E) has claimed that major shipping lines are cashing in on
the EU’s Emissions Trading System by overestimating costs.
However, Maersk has issued a
swift critique of the report’s methodology, describing it as “flawed”. The
report, produced by environmental NGO T&E, is based on an examination of
over 560 single journeys from 20 ships from four major European shipping companies:
MSC, Maersk, Hapag-Lloyd and CMA CGM.
In the report, T&E claims
European container shipping companies are “likely to make significant windfall
profits by setting these surcharges higher than their ETS costs”. However,
Danish shipping giant Maersk, subject to much scrutiny in the report, has taken
issue with T&E’s methodology.
On the opening page of its
report, T&E claims that on a single journey from China to Germany, one
Maersk ship will make over €325,000 in windfall profits.
Sea Intelligence noted EBIT
loses for the following carriers: Maersk (-$920 million), Hapag-Lloyd (-$252
million), ONE (-$248 million), Yang Ming (-$109 million), ZIM (-$54 million),
and Wan Hai (-$41 million) all reported EBIT losses in 2023-Q4.
Comparing over the same group of
shipping lines (excluding ONE owing to a lack of historical reference points,
and including Evergreen and HMM, both of which had operational profits in
2023-Q4), this was the greatest total Q4 EBIT loss in 2012-2023, with the
previous high of -$455 million recorded in 2015-Q4.
To examine profitability (or
lack thereof) per TEU shipped, Figure 1 depicts the EBIT/TEU for 2010-2023 and
the unprecedented levels of the 2021-2022 pandemic era, whereas Figure 2 cuts
off the y-axis at +/- 300 USD/TEU to show 2023 trends. So far, we have EBIT/TEU
data for five shipping lines, with COSCO absent from the list of companies that
consistently report on both EBIT and worldwide volume.
Maersk’s EBIT/TEU of -148
USD/TEU is their highest negative EBIT/TEU during the study period.
Hapag Lloyd’s EBIT/TEU loss of
-84 USD/TEU is less than their previous negative EBIT/TEU loss of -239 USD/TEU
in the 4th quarter of 2014.
For One Line, the negative 2023 -Q4 EBIT/TEU of
-80 USD/TEU is the first. HMM, on the other hand reported a positive
EBIT/TEU of 34 USD/TEU in 2023 4th quarter.
Recently, Sea Intelligence
reported that all shipping lines revenues fell sharply year on year in 2023,
ranging from 46.6 per cent to 62.6 per cent.
Wan Hai Lines holds ship naming ceremony for new vessels
Wan Hai Lines held ship naming
ceremonies for WAN HAI 370, WAN HAI 371 and WAN HAI 373 accompanied by a
charity donation event at Japan Marine United Corporation TSU Shipyard,
according to the company's release.
WAN HAI 370, WAN HAI 371 and WAN
HAI 373 are three vessels in the series of 3,055 TEU containerships built by
Japan Marine United Corporation TSU Shipyard. Wan Hai Lines has ordered a third
batch of 3,055TEU series vessels from Japan Marine United Corporation. This
batch totals twelve vessels.
WAN HAI 370, WAN HAI 371 and WAN
HAI 373 are the 6th, 7th and 9th vessels in this series of 3,055 TEU vessels.
They are all built by Japan Marine United Corporation TSU Shipyard. This vessel
series uses LSFO (Low Sulfur Fuel Oil) and is equipped with new energy-saving
equipment, it takes energy efficiency and environment friendly aspects into
account.
Besides, all the ships delivered
are also certified with “Smart Ship” notations.
These new smart vessels are part of Wan Hai’s efforts to pursue fleet
upgrading and enhance our commitment to quality and eco friendly shipping
services.
Bangladesh seeks assured supplies of five food commodities from India
Bangladesh has sought assured
annual supplies of five food commodities, including rice and wheat, from India
to tackle fluctuations in market prices and shortages, people familiar with the
matter said.
The two countries have held
discussions on this issue and Dhaka has asked New Delhi to sign a memorandum of
understanding on fixed quotas for these commodities, including onions, ginger
and garlic, the people said on condition of anonymity.
However, the two sides have not
yet been able to reach common ground in view of sensitivities linked to the
export of such commodities, said the people aware of discussions held so far.
India banned wheat exports in May 2022 and exports of non-basmati rice in July
2023 to cater to domestic requirements.
The government banned the export
of onions for about four months last December. However, India has supplied
rice, wheat and onions to countries in the neighbourhood, such as Afghanistan,
Bangladesh, Bhutan, Nepal and Sri Lanka, and key partners, such as the United
Arab Emirates (UAE), Indonesia and Vietnam, on a case-to-case basis.
/// Air Cargo News ///
MSC moves forward with Clasquin deal
Copyright:
AUUSanAKUL/ Shutterstock
Swiss shipping firm MSC has moved forward with its deal to
acquire international air and sea freight forwarder Clasquin. MSC subsidiary SAS Shipping Agencies Services
Sàrl has entered into a put option agreement for the acquisition of 42.06% of
the share capital of Lyon, France-based Clasquin, said a press release issued
by Clasquin.
Completion of the transaction, which will be subject to
obtaining clearances from regulatory authorities is expected to happen by the
end of this year.
SAS will then file a tender offer with the Autorité des Marchés
Financiers (AMF) for the remaining shares in the capital of Clasquin, said the
release.
According to its website, forwarder and logistics company
Clasquin offers bespoke air cargo solutions for the transport of luxury and
cosmetic products, clothing and fashion products, dangerous goods, perishables
and pharma.
The overall company has been operating since 1959 and has a
network of more than 85 offices and 1600 employees worldwide.
On its website, the company said it manages import and export
flows, mainly between Western Europe and overseas, in particular Asia Pacific
and North America.
Clasquin stated it has a network of 22 offices in Asia Pacific
and more recently has also grown its business in the Middle East, as well as in
northwest and sub-Saharan Africa.
MSC has grown its share in the airfreight market in recent
years. The shipping company launched MSC Air Cargo in 2022, with a deal for US
carrier Atlas Air to operate four new Boeing 777-200 freighters on a global
ACMI (aircraft, crew, maintenance and insurance). The last of these
freighters was delivered
to Atlas in January.
In October last year, the company revealed more plans for MSC
Air Cargo’s network
development in North America, Europe and Asia.
Earlier in the year, in August 2023, it acquired
a majority stake in Milan-based airfreight carrier
AlisCargo Airlines.
MSC also submitted a joint bid with German airline Lufthansa for
a stake in Italian airline ITA Airways in 2022, but subsequently dropped
out of the project.
MSC has also been growing its logistics business. SAS completed
the acquisition
of Bolloré Africa Logistics, now rebranded as Africa
Global Logistics (AGL), at the end of 2022.
Boeing’s Calhoun to step down as chief executive
Dave Calhoun.
Photo: BoeingBoeing president and chief executive Dave Calhoun will step down
as chief executive at the end of 2024, while Stan Deal, Boeing Commercial
Airplanes (BCA) president and chief executive will retire from the company.
Calhoun, who has been in the dual role since January 2020, will
remain as president of the company. A replacement chief executive has not yet
been named.
In a letter to employees, Calhoun spoke of the challenges
that Boeing has faced in the
wake of the January Alaska Airlines Flight 1282 accident, in which a door plug
blew out while a Boeing 737 MAX 9 aircraft was in flight.
He said: “As you all know, the Alaska Airlines Flight 1282
accident was a watershed moment for Boeing. We must continue to respond to this
accident with humility and complete transparency. We also must inculcate a
total commitment to safety and quality at every level of our company.
“The eyes of the world are on us, and I know we will come
through this moment a better company, building on all the learnings we
accumulated as we worked together to rebuild Boeing over the last number of
years.”
Boeing said that Calhoun will continue to lead Boeing through
the rest of the year to “complete the critical work underway to stabilize and
position the company for the future”.
Calhoun added: “It has been the greatest privilege of my life to
serve in both roles and I will only feel the journey has been properly
completed when we finish the job that we need to do.”
Following Deal’s announcement that he will retire as BCA
president and chief executive, Stephanie Pope has been appointed to lead BCA,
effective March 25.
Pope has been serving as chief operating officer of Boeing since
January of this year. Previously, she was president and chief executive of
Boeing Global Services, where she was responsible for leading the company’s
aerospace services for commercial, government and aviation industry customers
worldwide.
Prior to this, she was chief financial officer of BCA, and has
held positions in every Boeing business unit. She begins her new role
immediately.
In addition to this, board chair Larry Kellner has informed the
board that he does not intend to stand for re-election at the upcoming annual
shareholder meeting.
The board has elected Steve Mollenkopf to succeed Kellner as
independent board chair. In this role, Mollenkopf will lead the board’s
process of selecting Boeing’s next chief executive.
Kellner has served on the Boeing board for 13 years and served
as its chair since late 2019. As chair, he oversaw the establishment of a new
board aerospace safety committee, and during his tenure led the recruitment of
seven new independent directors, bringing deep engineering, safety,
manufacturing and aerospace expertise to Boeing’s board.
Mollenkopf has served on the board of directors since 2020. He
was previously chief executive of semiconductor firm Qualcomm.
FedEx profits improve as cost cutting takes effect
FedEx
Express is encouraging its pilots to move to a regional carrier, flying smaller
jets. Image Source: FedEx ExpressFedEx saw its profits improve in the third quarter of its fiscal
year despite revenues coming under pressure due to weak market conditions. The express giant saw its fiscal year
third-quarter revenues decline by 2% year to $21.7bn, but operating income
improved by 19% on last year to $1.2bn and net income was up 14% to $879m.
The company’s share price was up on Friday morning as a result
of its better-than-expected profit performance.
FedEx said the improved profit performance was a result of its DRIVE
cost-cutting scheme that aims to reduce expenses by $4bn.
In the third quarter, its ground network achieved savings of
$290m, air costs were down $110m and general/admin expenses reduced by $150m.
The savings in the air network are down to a “focus on structural
transformations and reduction of flight hour costs” and optimizing its network
in Europe.
The company has also parked aircraft to help reduce costs and in
response to weaker demand levels.
Last year, FedEx said it planned to reorganise
its air network to better suit the demands of
various shipment types as part of efforts to cut costs. The move will
allow the company to prioritise shipments such as e-commerce to meet demands
for faster transits while shipments such as general freight can be shipped at
less busy times and outside of the hub and spoke system.
The revenue decline was the result of weaker demand and a move
to less expensive transport services from customers. Looking at third-quarter
divisional performance, FedEx Express saw revenues decline 2% to $10.1bn but
operating income was up 96% to $233m.
FedEx Express operating results improved due to lower structural
costs resulting from DRIVE initiatives and the benefit from one additional
operating day, partially offset by lower revenue. FedEx Ground saw revenues improve by 1% to
$8.7bn and operating profits improved by 12% to $942m.
FedEx Ground operating results increased due to lower structural
costs resulting from DRIVE initiatives, higher base yield, and reduced
self-insurance costs. Cost per package
was flat, as lower line-haul expense and improved dock productivity offset
higher first- and last-mile costs.
Revenues at its Freight segment slipped by 26% to $2.1bn and
operating profit was down 12% to $340m.
FedEx Freight operating results decreased due to lower fuel surcharges,
reduced weight per shipment and lower shipments, partially offset by higher
base yield and the benefit from one additional operating day.
Last year’s third-quarter operating income included a $30m gain
on the sale of a facility. The company also announced a $5bn share repurchase
programme.
My Freighter adds third
ATSG 767-300P2F
Photo:
Parkdolly/ Shutterstock
Uzbekistan-based carrier My Freighter has taken delivery of its third newly converted Boeing 767-300 passenger to freighter (P2F) aircraft from US lessor Air Transport Services Group (ATSG).
ATSG’s subsidiary, Airborne Global Leasing, carried out the delivery in alignment with ATSG’s Lease+Plus strategy. “Our expanding relationship with My Freighter exemplifies the tangible value of our Lease+Plus strategy,” said Paul Chase, chief commercial officer of ATSG.
“The Boeing 767-300 continues to be the freighter of choice
among e-commerce integrators and express carriers as it provides the operational
flexibility and efficiency to build those networks.”
My Freighter has provided charter air cargo services in
Uzbekistan and Central Asia since 2019.
On its website, My Freighter said it provides cargo air charter
services using a fleet of Boeing 767-300 and Boeing 747-200 freighters.
In additi0n to the airline’s three 767-300P2Fs, it also has one
747-200F.
The airline’s specialist air cargo verticals include dangerous
goods, perishables and brokerage and certification.
It also offers passenger flights. Cargo flights are operated
under ‘My Freighter Cargo Airlines’, whilst passenger flights are operated
under ‘Centrum Air’.
This delivery marks ATSG’s fourth newly converted 767-300
dry-lease delivery this year.
ATSG said it continues to focus on global market opportunities
in Central and Southeast Asia to enhance its global leasing network.
All Nippon Airways (ANA) has for a third time delayed its
planned takeover of freighter carrier Nippon Cargo Airlines (NCA) as regulators
continue to examine the deal.
ANA had originally been hoping to complete the deal on October 1
last year, but this was later pushed back until February 1, then April 1 and
now the company is expecting the deal to be completed on July 1.
The delays have all been down to the length of time it is taking
competition regulators to review the deal.
“Taking into consideration the time to complete the review of
the business combination that will result from the share exchange by the
relevant authorities in Japan and foreign countries, etc., the company decided
to change the effective date of the share exchange from April 1, 2024 to July
1, 2024,” the company said in its latest update.
The cargo carrier is currently owned by shipping group NYK,
which is looking to transfer its ownership to ANA due to
the cost and expertise required to run an airline.
A basic
agreement was reached in March last year and then
finalised in July.
“The continual introduction of new aircraft to expand the
operation and maintenance system, as well as the continual training of
personnel engaged in operation and maintenance required considerable
expenditures,” NYK said.
“In the highly volatile business environment of airfreight
transportation, NCA has been facing challenges in expanding its business scale
at a level that is commensurate with such costs.”
NCA currently operates a fleet of eight B747-8 freighter
aircraft and owns five B747-400 freighters that are operated by ASL and Atlas
Air.
ANA said the takeover would dramatically enhance its
international air cargo network and products and services based in Japan.
Royal Jordanian expands cargo fleet with converted A321 freighter
Source:
Vytautas Kielaitis/Shutterstock.com
Royal Jordanian Airlines has introduced an Airbus A321 converted
freighter, providing additional dedicated cargo capacity as part of the
carrier’s fleet modernisation.
The operator has leased the twinjet (JY-RAZ) from Irish-based
financial firm UMBF.
Powered by International Aero Engines V2500s, it was originally
delivered in 2009 to UK carrier BMI which – through its acquisition of British
Mediterranean – picked up the previously-placed order.
The aircraft was, in turn, absorbed into the British Airways
fleet when it took over BMI.
Singapore’s ST Engineering has converted the aircraft through
its EFW joint venture.
Royal Jordanian says the jet has a payload capability of 28
tonnes including 14 container and pallet positions on the maindeck, plus 10 on
the lower deck.
“It underscores Royal Jordanian’s commitment to efficiency and
reliability in the global cargo market,” said the carrier.
It stated that the aircraft will be operated to nine new
destinations on its network.
Chief executive Samer Majali said the airline intends to enhance
Jordan’s position as a regional logistics hub, supported by expansion of a new
air cargo facility at Amman.
The airline already uses a single dedicated freighter, an Airbus
A310-300F.
But cargo operations director Mohammad Noor Obeidat indicates
through his social media channel that this aircraft is set to be replaced with
an A330 freighter, without elaborating.
Royal Jordanian is bringing in Embraer 195-E2 and 190-E2
regional jets, as well as A320neo-family aircraft and additional Boeing 787-9s
for its renewal programme, taking its fleet to 41 aircraft and expanding its
network to 60 destinations.
Photo: NEO
Air Charter
German cargo charter broker NEO Air Charter has completed a
programme of twenty air cargo charters from Spain and Portugal to the UK,
carrying urgent automotive components.
The flights operated from Spain and Portugal to Birmingham and
Liverpool in the UK using Metro, Saab 340, ATR42 and ATR72 freighter aircraft
with capacities ranging from 2.1 to 9.2 tonnes.
The palletised loads comprised from 1 to 25 packages per flight,
each item measuring 120cm x 80cm x 120cm, and weighing 360 kilos.
All shipments were extremely urgent, and were needed to maintain
car production lines, said NEO. Flights were typically booked at a few hours’
notice, with departures and arrivals always required on the same day.
Ismail Duran, time critical sales manager at Frankfurt-based
NEO, said: “This was a challenging period in which ongoing temporary supply
issues led to sporadic and unpredictable component needs. The only common
denominator was the extreme urgency of the shipments, to avoid production line
shut- downs.
“Sourcing suitable, available nearby aircraft and operating them
at such short notice, while also minimising the costs to the client, created a
few challenges – but nothing we couldn’t solve. Smaller freighters provided the
solution. It all went to plan, and the end customer was able to maintain
production throughout with minimal disruption and at sensible cost.”
The company recently reported a rise in
demand as e-commerce firms look to avoid issues caused by the Red
Sea shipping crisis.
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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