JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91
98407 85202
Corporate News
Letter for Tuesday April 09, 2024.
:: Today’s Exchange Rates ::
Source : The
Economic Times R
ATES
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CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.31 |
0.009995 |
0.011998 |
83.27 |
83.30 |
83.225- 83.3375 |
|
|
1.0829 |
-0.0008 |
-0.073811 |
1.0836 |
1.0837 |
1.0821- 1.0843 |
|
|
105.199 |
-0.034401 |
-0.03269 |
105.179 |
105.2334 |
105.1044- 105.2741 |
|
|
90.214 |
-0.062004 |
-0.068683 |
90.222 |
90.276 |
90.1413- 90.316 |
|
|
151.907 |
0.287003 |
0.189291 |
151.59 |
151.62 |
151.547- 151.92 |
|
|
1.2626 |
-0.0012 |
-0.094958 |
1.2629 |
1.2638 |
1.2615- 1.264 |
|
|
104.377 |
0.079002 |
0.075747 |
104.292 |
104.298 |
104.252- 104.437 |
|
|
0.5487 |
-0.0007 |
-0.127411 |
0.5493 |
0.5494 |
0.5484- 0.5494 |
/// Sea Cargo News ///
Mersin International Port hits container milestone amid expansion
projects
On 27
March, Mersin International Port (MIP), Turkey's major container terminal,
celebrated a significant milestone by surpassing 25 million TEUs handled since
its inception in 2007.
The
commemoration took place at the East Med Hub 1 Terminal in Mersin and was
attended by partners, customers, government officials, and industry
associations.
Mersin International Port (MIP)
Furthermore,
initially formed in 2007 as a partnership between PSA International and Akfen,
with IFM Investors joining as a third shareholder in 2017, MIP has experienced
steady growth, averaging a 14.4% increase in container volumes annually since
its establishment. In 2023 alone, MIP managed approximately 2 million TEUs.
To meet
the evolving demands of its clientele, MIP is investing in the future of its
container business with the US$455 million East Med Hub 2 (EMH2) expansion
project. Construction on the second phase of EMH2 began in November 2023, with
completion expected in the first quarter of 2025.
Also,
this expansion will extend the quay by 380 meters to a total length of 880
meters, with a draft of 17.5 meters, enabling simultaneous berthing of two
Ultra Large Container Vessels (ULCVs) exceeding 400 meters in length and
increasing the port's capacity from 2.6 to 3.6 million TEUs.
Additionally,
the project involves the acquisition of eight new automated rail-mounted gantry
cranes (aRMGs) and four additional ship-to-shore cranes. Moreover, through
ongoing investments in electrically powered equipment and renewable energy
sources, MIP aims to halve its carbon emissions by 2030 and achieve carbon
neutrality by 2050.
AD Ports Group exceeds US$3 billion revenue in 2023
In 2023, AD Ports Group's financial achievements were evident, highlighted by a remarkable revenue surge of 112% year-on-year, reaching US$3.2 billion.
The yearly performance showcased robust operational and
financial progress, with EBITDA climbing by 23% year-on-year to US$730 million.
Furthermore, the total net profit for 2023 stood at US$380 million, marking a
6% increase compared to the previous year.
In 2023, the global shipping industry saw a mixed performance,
marked by a return to normalized rates in various sectors alongside challenges
in the container market. Positive trends were observed in tanker, offshore,
bulk, and Ro-Ro segments, driven by China's reopening and increased global
trade volumes, according to AD Ports' statement.
Despite these successes, the container market faced softening
rates due to post-Covid supply chain adjustments and a rise in vessel fleet
supply. Nonetheless, the industry remained 33% above its 10-year trend, with
notable strength in energy shipping and offshore sectors.
AD Ports Group said it emerged as a key player, leveraging its
diversified logistics footprint to navigate market shifts and support supply
chain reconfiguration.
The company noted that the shipping and logistics sectors are
poised for transformation, shifting towards "just-in-case" strategies
post-pandemic. This evolution, driven by new trade policies and digitalization,
emphasizes regionalization and localization of supply chains.
"Through bold, value-enhancing acquisitions, and strategic
expansions in the
Arabian Gulf, Red Sea, Caspian Sea, Africa, and around the world, AD Ports
Group
in 2023 transformed into a world-class facilitator of global trade and
logistics, in line with the economic diversification objectives set by the
UAE’s visionary leadership," stated Falah Al Ahbabi, chairman of AD Ports
Group.
"2023 was one of the most dynamic periods of growth in the
history of AD Ports Group. We expanded our maritime, shipping and ports
footprint into Jordan, Egypt, Pakistan, the Republic of the Congo, Uzbekistan,
and Kazakhstan, and in addition, we transformed our logistics business by
acquiring Noatum, an integrated provider active in 27 countries and a leading
in the automotive logistics sector in Europe," commented Capt. Mohamed
Juma Al Shamisi, managing director and group CEO, AD Ports Group.
Moreover, to meet the increasing needs of the global offshore
oil and gas sector, the acquisition of 10 vessels was undertaken to enhance
offshore operations in both the Middle East and Southeast Asia. Notably, a
substantial partnership with Kazakhstan's national shipping company,
KazMorTransFlot (KMTF), resulted in the acquisition of two advanced vessels
dedicated to transporting Kazakhstan's oil across the Caspian Sea. Presently,
the Group boasts a fleet exceeding 250 vessels across all its service domains.
Engineers to open temporary access to Baltimore port
Port of BaltimoreThe US Corps of Engineers, who are working to remove the
Wreckage of Baltimores Francis Scott Key bridge, will open a temporary channel
on the northeastern side of the main access channel.
Latest reports from the Maryland authorities have said the
Captain of the Port (COTP) is preparing to establish a temporary channel for
commercially essential vessels.
“This will mark an important first step along the road to
reopening the port of Baltimore,” said Capt. David O’Connell, Federal On-Scene
Coordinator, Key Bridge Response 2024. “By opening this alternate route, we
will support the flow of marine traffic into Baltimore.”
However, the temporary channel will only have a 3.4m draught, an
80m horizontal clearance and a 30m height clearance. According to the COPT:
“This action is part of a phased approach to opening the main channel. The
temporary channel will be marked with government-lighted aids to navigation.”
The 1.8km safety zone will remain in place for the time being as
engineers and workers from a number of agencies, including the Coast
Guard, US Army Corps of Engineers, Maryland Department of the Environment,
Maryland Transportation Authority and Maryland State Police, begin the
process of cutting up and removing debris.
Meanwhile, Maryland’s governor, Wes Moore, called on Republicans
to collaborate with their Democrat opponents to approve the federal funding
needed to rebuild the bridge and to return the port to its pre-accident
operational levels.
The legislative monitoring website, Roll Call, reported recently
that the total cost of rebuilding the bridge could be as much as US$2 billion,
as an early and rough estimate, however, transportation secretary Pete
Buttigieg has said only US$950 million is available in the country’s emergency
fund, and this will compete with other projects for the money.
As a result, action to raise further funds will necessarily
require action from both houses of Congress, with the House controlled by
Republicans and the Senate controlled by Democrats, to agree on the extra
funds.
Buttigieg told journalists at the White House that, “Any effort
to hold the ship’s owners accountable would happen separately”. The 2.6km and
bridge carried Interstate 695 over the Patapsco River and Baltimore port,
collapsed after the 10,000 TEU Maersk Dali had an apparent power outage
resulting in the vessel colliding with a bridge support. The accident has so
far seen six confirmed casualties.
President Biden had said that he would “move heaven and earth”
to reopen the port on the day of the accident, last Tuesday
Roll Call also reported that Maryland Democrat in the House of
Representatives, David Trone, said on 27 March, “The state’s delegation was
also working with Buttigieg to specifically use ‘quick release’ emergency
relief funds from the Federal Highway Administration for initial response.”
Canada-based Descartes Systems Group, a major player in
connecting logistics-focused businesses in commerce globally, has announced its
acquisition of US-headquartered OCR Services (OCR), a provider of solutions and
content for global trade compliance, for approximately US$90 million.
OCR specializes in offering solutions and content for export
compliance and controlled commodities, aiding customers in streamlining and
automating processes related to denied party screening, license
procurement/management, and product classification.
"The OCR team brings a wealth of domain expertise in global
trade compliance to Descartes, including experience leveraging artificial
intelligence (AI) in the content management process. By adding OCR’s solutions
and content to our Global Logistics Network, we see an opportunity to bring new
functionality and enhanced content to our customers and partners around the
world. With our combined solutions and team, we also see an opportunity to
further penetrate markets in Europe and Asia," stated Andrew Roszko, chief
commercial officer at Descartes.
According to a statement, the core platform, GlobalEASE, is used
by blue-chip, multinational organizations worldwide to ensure compliance with
evolving regulations. Like Descartes, OCR monitors regulatory updates and
enriches its trade data content libraries daily. The addition of OCR's
controlled export data is expected to enhance Descartes' extensive global trade
content library, benefiting customers and partners such as SAP and Oracle.
"We continue to invest in solutions and content to help our
customers manage the complete lifecycle of shipments in what is an increasingly
dynamic global regulatory environment. OCR complements our Global Trade
Intelligence business, particularly our Visual Compliance and MK Data
investments. We’re thrilled to welcome the OCR employees, customers and
partners into the Descartes family," commented Edward J. Ryan, Descartes’
CEO.
Piraeus Port achieves volume increase and financial growth
The three container terminals of the port of Piraeus in Greece continued their growth trajectory, achieving a 2% increase in total throughput reaching 5,100,920 TEUs.
"These results solidify the port of Piraeus in the fourth
position, among Europe's top ports," said the Piraeus Port Authority
(PPA).
Furthermore, PPA has unveiled its financial results for the
fiscal year 2023 with total revenues increasing by 12.9% to US$237 million,
pre-tax profits surging by 28.8% to US$104 million and post-tax profits rising
by 26.3% to US$72 million.
Moreover, the proposed dividend
per share saw a remarkable uptick of 29%, reaching US$1.45 from the previous
year's US$1.12. These achievements signify the company's strongest performance
to date in terms of both revenue and profitability, marking the third
consecutive year of enhancement.
The chairman of Piraeus Port Authority, Yu Zenggang, expressed
his satisfaction with the company's continued upward financial trajectory,
crediting the company’s employees for their crucial role in the port’s
outstanding performance and emphasizing the faithful execution of the company’s
plan and strategy yielding significant results. He also highlighted that
continued investments are planned to uphold Piraeus' top position among the
leading ports in the Mediterranean and Europe.
CMA CGM
upgrades Europe-Africa service network
Marseille-based container line CMA CGM announced enhancements to its EURAF services.
Commencing in May, Sierra Leone and Gabon will be integrated
into CMA CGM's EURAF 4 rotation, while the EURAF 5 service will extend its
coverage to encompass the Central and Southern regions of West African ports.
In particular, EURAF 4 service will operate on a 42-day cycle
with the following port rotation:
Valencia (Spain) / Algeciras (Spain) / Tanger Med (Morocco) /
Freetown (Sierra Leone) / Lome (Togo) / Bata (Equatorial Guinea) / Malabo
(Equatorial Guinea) / Kribi (Cameroon) / Libreville (Gabon)
The first voyage of the updated rotation will commence from the
port of Valencia on 10 May.
EURAF 5 service will also follow a 42-day rotation pattern. The port rotation of the upgraded EURAF 5 service will be as follows:
Tanger Med (Morocco) / Algeciras (Spain) / Tema (Ghana) / Lekki
(Nigeria) / Cotonou (Benin) / Pointe Noire (Republic of the Congo) / Luanda
(Angola)
The first vessel on the new rotation will depart Tanger Med on 2
May.
CMA CGM
halts operations at Haiti’s major port
Due to escalating security concerns in Haiti's Port-au-Prince
and its surrounding areas, CMA CGM has decided to suspend operations at the
Lafito terminal until further notice.
"Therefore, CMA CGM won't accept bookings to Lafito and
Port of Prince terminals for the time being," said the French ocean
carrier in a statement.
However, services to the northern region of Haiti, including
Cap-Haïtien, will remain unaffected, with CMA CGM continuing its regular
operations there.
"We continue to follow the situation closely in Port au
Prince and will keep you informed. We apologize for any inconvenience caused
and appreciate your cooperation during this time," said a CMA CGM
spokesperson.
Following Sea-Intelligence's previous announcement on 21 March,
which provided insights into the fiscal year 2023 results, the data analysis
firm now delves into the operating profit specifically for the fourth quarter
of the last year.
During the fourth quarter of 2023, the shipping lines
collectively reported a combined EBIT loss of US$1.44 billion. Among the major
players, Maersk recorded a loss of US$920 million, followed by Hapag-Lloyd
(US$252 million), ONE (US$248 million), Yang Ming (US$ 109 million), ZIM (US$54
million), and Wan Hai (US$41 million).
Comparing these figures across the same set of shipping lines
(excluding ONE due to limited historical data), and incorporating Evergreen and
HMM, both of which achieved operating profits in 2023-Q4, this quarter marked
the highest combined EBIT loss from 2012 to 2023. The previous record was in
2015-Q4, with a loss of US$455 million.
To analyze profitability per TEU shipped, Figure 1 illustrates the EBIT/TEU trends from 2010 to 2023, highlighting the unprecedented levels observed during the 2021-2022 pandemic period. Figure 2 focusses on the developments in 2023, cutting off the y-axis at +/- 300 USD/TEU for clarity.
"Source:
Sea-Intelligence.com, Sunday Spotlight, issue 657”."So far, we have EBIT/TEU data for 5 shipping lines, with COSCO missing from those that regularly report on both their EBIT and global volumes. Maersk’s EBIT/TEU of -148 USD/TEU is their largest negative EBIT/TEU in the analysed period," pointed out Alan Murphy, CEO of Sea-Intelligence.
"Source:
Sea-Intelligence.com, Sunday Spotlight, issue 657"
"For Hapag-Lloyd, their EBIT/TEU loss of -84 USD/TEU is smaller than their only other negative EBIT/TEU of -239 USD/TEU in 2014-Q4. For ONE, their negative 2023-Q4 EBIT/TEU of -80 USD/TEU is their first. HMM, on the other hand, recorded a positive EBIT/TEU of 34 USD/TEU in 2023-Q4," explained Murphy.
/// Air Cargo News ///
Virgin Atlantic offers 43,000 tonnes cargo capacity to & from India
With the launch of direct flight to Bengaluru from San
Francisco, Los Angeles, New York JFK and Seattle via London Heathrow and second
daily flight to Mumbai, Virgin Atlantic is now offering an additional 25,000
tonnes of cargo capacity from the fashion, pharmaceuticals and tech sectors.
“With five daily services, Virgin Atlantic Cargo will offer 43,000 tonnes of space available to and from India, which is a 336 percent increase in capacity versus 2019,” says an official release. Beginning October 27, 2024, the second daily Mumbai services will operate on the airline’s state-of-the-art Airbus A350-1000, the release added.
Virgin Atlantic has a strategic partnership with IndiGo, India’s
leading airline, and the partnership offers 36 additional destinations.
“There is a huge opportunity for us in India, it has a dynamic,
fast-growing economy and we’re anticipating a huge growth in demand for
international travel to and from the region,” says Juha Jarvinen, Chief
Commercial Officer, Virgin Atlantic.
“We know both our customers and people love travelling to India
and we have a rich history in the destination.
Next year marks 25 years of operations and the first time that
we’ll offer more than one million seats to India via London Heathrow with
optimal connectivity for our U.S. customers from key tech hubs including San
Francisco and Seattle.
The launch of Bengaluru and doubling of our Mumbai services
reaffirms our strong commitment and will allow our customers to travel
seamlessly throughout India and beyond, flying on one of the youngest fleets in
the skies, with our signature personalised service, delivered by our amazing
people.”
UPS wins US postal air cargo contract
UPS has been awarded a contract by the United States Postal
Service (USPS) to become its primary air cargo provider. The contract is effective immediately, but
there will be a transition period as UPS takes over from FedEx, which has had a
long-term mail contract with USPS.
This new contract will see UPS move the majority of USPS air
cargo in the US.
“Together UPS and USPS have developed an innovative solution
that is mutually beneficial and complements our unique, reliable and efficient
integrated network,” said UPS chief executive Carol Tomé. Georgia-headquartered UPS announced its
contract with the postal service on April 1.
Air Cargo News‘ sister title FlightGlobal reported
that Tennessee-based FedEx said its domestic transportation agreement with USPS
will expire on September 29 in a decision made “following extensive
discussions”.
FedEx had been open to extending its contract to be the USA’s
primary air mail carrier “if we could agree to commercial terms in the best
interests of FedEx shareholders”, but says it was unable to reach a favourable
agreement.
Over the course of a “long and productive relationship for more
than 20 years”, the company says its strategies have shifted from those of
the postal service ”as we transform our networks and operations for the
future”.
At the conclusion of the contract, FedEx plans to adjust
its network in a bid for greater efficiency and
flexibility. “The elimination of structural costs currently in place to
support postal service volume will be addressed,” it said.
UPS has had a tough start to the year. In January, the company
announced that its revenues
in the fourth quarter dropped nearly 8% year on
year as volumes fell in both the domestic and international segments.
The company said it would cut
more than 12,000 jobs as part of efforts to
reduce costs in light of continuing market weakness.
YunExpress targets
e-commerce demand with latest 777 freighter
Atlas Air
Boeing 777-200F. Photo: Atlas Air
YunExpress has extended its agreement with lessor Atlas Air to
include a second Boeing 777-200 freighter that will be used to cover rising
e-commerce demand.
The new aircraft will enter operation under a long-term charter
agreement in April and operate six weekly routes between China and the US.
The new flight will enhance YunExpress’ international logistics
network and help it serve the increasing demand for cross-border e-commerce
shipping from China, Atlas said.
Wang Zuan, president of YunExpress parent Zongteng Group, said:
“Last December, YunExpress, in collaboration with Atlas, launched charter
service between Xiamen, China and Miami utilising a 777 freighter, which has
been operating with solid performance.
“The signing of this new long-term agreement further deepens and
strengthens the strategic partnership between us.
“Through YunExpress, we aim to meet the growing demand for
airfreight capacity between China, Europe and North America.
“Looking ahead, we aim to further expand routes and fleet size
to provide customers with more convenient and diverse global transportation
options, ensure supply chain resilience, and support the steady development and
growth of our customers’ international businesses.”
“We are delighted to expand our strategic and long-term
partnership with YunExpress,” said Michael Steen, chief executive, Atlas Air
Worldwide.
“Cross-border e-commerce is driving significant demand for
Atlas’ dedicated large widebody freighter capacity.
“Through our partnership with YunExpress, we are strengthening
our position as the preferred supplier of dedicated airfreight capacity to
leading players in the e-commerce industry.”
Yun Express also has another
777 freighter, operated by Central Airlines.
Saudia Cargo targets
e-commerce with Shenzhen flights
Photo:
Jaromir Chalabala/ Shutterstock
Saudia Cargo aims to further tap into the e-commerce market with the addition of two weekly flights to Shenzhen, China.
“This expansion enables Saudia Cargo to facilitate the seamless
transportation of goods between Shenzhen and Riyadh, with Riyadh being
identified as the most lucrative international market for Chinese businesses,”
noted Saudia Cargo.
The airline said that China is a crucial market for its
operations and the service aims to help meet the growing demand for e-commerce
air cargo services in the region.
“We are excited to announce the expansion of our operations in
Shenzhen, China, with the introduction of two weekly flights,” said Teddy
Zebitz, Saudia Cargo chief executive.
“This expansion underscores our commitment to providing reliable
and efficient air cargo services to our customers in China. With Shenzhen being
a key hub for e-commerce, we see tremendous potential for growth and are
dedicated to serving the needs of our customers in this dynamic market.”
He added: “The introduction of regular flights to Riyadh
presents significant opportunities for Chinese businesses, particularly in the
e-commerce sector. Shenzhen is widely recognised as a hub for e-commerce,
hosting major players such as Alibaba, Temu, and TikTok.
“By better servicing key clients, Saudia Cargo aims to cater to
the increasing demand for air cargo services, especially for e-commerce.”
Saudia Cargo said it is currently collaborating with major
Chinese players, including Cainiao, the logistics arm of Alibaba.
In 2021, Cainiao Smart Logistics Network and Saudia Cargo teamed
up on five weekly flights from Hong Kong to Liege in Belgium,
with Riyadh as a connection point. The partnership has since served to boost
the airline’s e-commerce volumes.
More recently, Saudia Cargo, Worldwide Flight Services (WFS) and
Cainiao Group launched a strategic
collaboration at Liege Airport to boost the
efficiency of cross-border e-commerce trade.
Image:
aappp/ Shutterstock.comAIA Cargo has won two new GSSA contracts, providing services for
Hainan Airlines and Air Peace on their flights out of the UK and Ireland.
The Hainan Airlines deal will see AIA become the airline’s
exclusive partner for the UK and Ireland starting on April 1.
“This partnership will provide customers with a range of new
opportunities, as it opens up multiple routes from London Heathrow, Dublin,
Manchester, and Edinburgh to various destinations in China,” the GSSA said.
Destinations in China from Heathrow are Xi’an Xianyang
International, Tianjin Binhai International, Changsha Huanghua International
and Qingdao Liuting International.
The carrier also flies to Beijing from Dublin, Manchester and –
from May 17 – Edinburgh. All flights are twice weekly.
“This a new and exciting milestone for AIA’s expansion to work
with one of the leading Chinese carriers. The team is looking forward to
working closely with Hainan Airlines
with more to come with our Europe offices in the future,” said Nina Bruce, Far
East commercial and network development manager, AIA Cargo.
AIA added that there is a range of onward options for shipments
going to other destinations via China and Asia. Also, the number of flights is
expected to increase for the summer season.
Air Peace
The company has also won a contract to provide GSSA service to
Air Peace on flights from London to Lagos.
The airline offers six widebody flights per week between the two
airports.
“AIA Cargo is proud to have been selected to represent Air Peace
in the UK as Air Peace becomes our first African carrier into our group of
companies.
“Air Peace’s six weekly flights offer welcomed capacity not just
to Lagos but onward to some major West African hubs for air cargo. We are sure
our clients will be happy with the competitive rates,
schedule and capacity that Air Peace cargo will offer to the UK market,” said
Mark Andrew, chief executive of AIA Cargo.
The two companies said they plan to explore new business
opportunities, expand their customer base and diversify their service offering.
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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