JUPITER SEA & AIR SERVICES PVT. LTD,
EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91
98407 85202
Corporate News
Letter for Monday April 22, 2024.
:: Today’s Exchange Rates ::
Source : The
Economic Times RATS
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.54 |
0.00 |
0.00 |
83.50 |
83.54 |
83.49- 83.5525 |
|
|
1.0673 |
0.00 |
0.00 |
1.0673 |
1.0673 |
1.0665- 1.069 |
|
|
104.1984 |
0.046402 |
0.044552 |
104.0823 |
104.152 |
104.0661- 104.2643 |
|
|
89.1488 |
0.336906 |
0.379348 |
89.147 |
88.8119 |
89.1239- 89.3034 |
|
|
154.399 |
0.009003 |
0.005831 |
154.39 |
154.39 |
153.961- 154.426 |
|
|
1.2473 |
0.0019 |
0.152568 |
1.2454 |
1.2454 |
1.2448- 1.2485 |
|
|
105.881 |
-0.07 |
-0.066068 |
105.949 |
105.951 |
105.741- 106.002 |
|
|
0.5411 |
0.0009 |
0.166611 |
0.5412 |
0.5402 |
0.5409- 0.5421 |
/// Sea Cargo News ///
EU tanker
import tonne mile demand up 12% as ships avoid Red Sea area
Photo: BSM.“In 2023, sanctions on Russian oil exports by the EU caused a major shift in tanker trades and a 10% increase in average sailing distances for EU tanker imports. Now, attacks on ships in the Red Sea area have caused average sailing distances to increase a further 16% and tonne mile demand to increase 12% despite falling volumes,” stated Niels Rasmussen, Chief Shipping Analyst at BIMCO.
During the first quarter of 2024, tanker import volumes to the European Union fell 4% year-on-year due to a 1% increase in the clean tanker trade but a 5% fall in the dirty tanker trade.
However, as tankers increasingly sail via the Cape of Good Hope due to recent attacks on ships in the Red Sea area, the tanker tonne-mile demand increased 12% year-on-year, 13% in the clean tanker trade and 12% in the dirty tanker trade.
“Despite Houthi attacks on ships in the Red Sea, most tankers
initially continued to sail via the Red Sea and the Suez Canal. However, ships
have increasingly been rerouted via the Cape of Good Hope. Consequently, Suez
Canal transits have now fallen 40-50% year-on-year, significantly increasing
sailing distances between Asia and Europe,” mentioned Rasmussen.
Average sailing distances in the dirty tanker trade have
increased more than in the clean tanker trade because a higher percentage of
cargo is destined to Mediterranean ports. The increase in sailing distance to
those ports is bigger when sailing via the Cape of Good Hope.
“It was expected that the longer sailing distances and
production cuts by OPEC counties could cause EU buyers to favour imports from
the Americas over imports from Asia. his has so far not materialised to any
great extent, however. In fact, Asian countries’ share of EU dirty tanker
imports has risen 24% year-on-year while it has only fallen 6% year-on-year in
the clean tanker trade,” Rasmussen added.
So far, VLCCs have been the main beneficiary of the increased
tonne miles in the dirty tanker trade while the smaller MRs and LR2s have
shared the increased tonne miles in the clean tanker trade.
These segments’ fleets will grow only marginally in 2024 and
their supply/demand balance must therefore be expected to remain tighter for as
long as ships continue to avoid the Suez Canal.
“Even though Europe’s demand for oil has fallen in 2023 and is
expected to fall again in 2024, the EU’s importance to tanker trades has
increased. Due to trade shifts, EU import tonne miles have risen from 11% of
the total tanker trade in the first quarter of 2022 to 14% in the first quarter
of 2024 and will remain high as long as ships continue to avoid the Suez Canal.
In the medium to long term,
the EU is, however, still expected to decarbonise faster than most other
regions and tanker trade should fall accordingly,” explained Rasmussen.
This article was written by Niels Rasmussen, Chief Shipping
Analyst at BIMCO
US container imports remain stable, with several potential global challenges to be seen
In March, US container import volumes saw marginal growth
compared to February, edging up by only 0.4% to reach 2,145,341 TEUs.
However, TEU volumes experienced a significant increase of
15.7%, compared with the same month last year, and marked an even larger
increase of 20.6%, compared with pre-pandemic levels in March 2019.
Notably, the impact of the Chinese Lunar New Year might have
obscured even stronger growth, as the holiday commenced on 11 February and
extended throughout the week, delaying its influence on US imports until the
latter half of March.
To provide a clearer perspective, Descartes conducted a
comparison between the first 15 days of March 2024 and the corresponding period
in 2023, as these intervals were less susceptible to the effects of the Chinese
Lunar New Year. Within this timeframe, US container import growth stood at
22.7%.
Figure 1: U.S. Container Import Volume Year-over-Year Comparison
“Considering declining import volumes from China, March 2024 was
a strong month and continues the robust performance that began in January 2024.
Despite the combined effect of the Panama drought and the conflict in the
Middle East, port transit delays showed continued improvement across nearly all
the top ports, as March volumes at East and Gulf Coast ports remained
stable," stated Chris Jones, EVP Industry, Descartes.
According to the report, compared to February, March US imports
from China continued to decrease due to the Chinese Lunar New Year, leading to
a notable decline in volume at the Port of Los Angeles in California for the
second consecutive month.
Despite concerns, transit delays at East and Gulf Coast ports
are showing signs of improvement, unaffected by the Panama drought and Middle
East conflict. Descartes' logistics metrics update for April indicates a robust
beginning for US container imports in the first quarter of 2024.
However, ongoing issues such as those at the Panama and Suez
Canal, forthcoming labour negotiations at US South Atlantic and Gulf Coast
ports, the Middle East conflict, and the aftermath of the Baltimore Bridge
collapse are expected to impact global supply chain performance throughout the
year.
The impact of the Baltimore Bridge collapse on US container
import volume data is yet to be fully realized.
Maersk’s former seafarers turn innovators with groundbreaking project for fresh water delivery from ships to ports
Α team of three Maersk employees, who are former seafarers,
decided to undertake an innovative project that could store and deliver fresh
water from vessels to ports, aiming to provide a solution for fresh water
scarcity faced by regions all over the world.
Cargo ships undertaking global trade are equipped with fresh
water generator systems that produce clean drinking water by distilling sea
water using heat energy harnessed from their engines. Traditionally, this
system has been used to generate water for consumption only onboard the
vessels. However, the excess water produced has been overlooked. Through this
project, this untapped resource has been capitalised on by optimising the
process and storing the excess water in tank containers before delivering it to
ports.
Each vessel can fill two tank containers on an average sea
voyage between two ports. With the process optimised and tank containers stored
at the right location onboard, two tank containers with a combined capacity of
50,000 litres can be filled with fresh water. Amongst the first pilot runs were
the deliveries at Sri Lankas' Port of Colombo and Oman's Port of Salalah of two
tank containers, each filled with 25,000 litres of fresh water.
"The first tank container of fresh water delivered by
Maersk from its vessel is an important milestone that has the potential to pave
the path for a larger scheme of things. This project opens doors for many more
ships moving around the world, which can replicate this system and create an
incredibly large supply of fresh water that is being delivered all around the
world to address the ever-increasing challenge of water scarcity," stated
Keld M Christensen, CEO of Port of Salalah.
Leonardo Sonzio, Head of Fleet Management and Technology at
Maersk, described the possibility to generate, store and deliver fresh water
from ships as a "unique opportunity" to address water scarcity.
"The successful conclusion of the pilot deliveries is a
testament to the innovative capabilities and perseverance of our team. The next
step for us would be to explore the possibilities of expanding our efforts to
more ports and collaborate with beneficiary stakeholders worldwide. Together,
we could make a significant impact by improving the access to clean drinking
water for communities in need, too," he said.
Maersk ship dodges Houthi missile
Maersk Yorktown / Source: VesselFinderUnited States forces have shot down an anti-ship ballistic
missile that Houthi rebels allegedly fired at a Maersk ship in the Gulf of
Aden.
The US-flagged 2,500 TEU Maersk Yorktown was being escorted by
the US Navy as it carried out feedering between Oman and Djibouti. US Central
Command said that the ABSM was shot down at 3 am Yemen time on 9 April.
It said, “The ASBM was likely targeting the MV Maersk Yorktown,
a US-flagged, US-owned vessel being escorted by US warships USS Laboon (DDG 58)
and USS Mason (DDG 87). There were no injuries or damage reported by US,
coalition, or commercial ships.”
Maersk Line confirmed the incident to Container News, but said
that it could not be certain that the Houthis were aiming Maersk Yorktown.
The Danish operator’s statement said, “Maersk has received
reports on a Houthi missile landing approximately 10 nautical miles from Maersk
Yorktown (a US-flagged vessel operated by Maersk Line, Limited) on 9th April at
early morning hours, Sanaa time, while the vessel was transiting in the Gulf of
Aden. There was no indication that the Maersk Yorktown was the intended target.
The vessel was under protection of coalition forces and proceeded along its
route without interruption."
After being idle for a few days, the Iran-backed Houthis appear
to be back with a vengeance, warning of a wider danger area as they will
continue attacking ships believed to be supporting Israel. On 6 April, Houthis
fired at two of MSC ships and a boxship owned by
Borealis Maritime.
The world’s largest container carrier will push back against a
proposed US government fine that would rank among the stiffest penalties handed
down by the diminutive Washington regulator where the fight is playing out.
The Federal Maritime Commission’s enforcement, investigations and
compliance bureau last week submitted an 81-page brief concluding that MSC
Mediterranean Shipping Co. SA should pay civil penalties totaling $63.3 million
for allegedly over-charging customers and incorrect billing in violation of the
Shipping Act.
The Geneva, Switzerland-based company, which reportedly made $27
billion during the pandemic-driven shipping boom through 2021 and 2022, called
the penalties “excessive” and said that it will vigorously defend against the
allegations.
According to the commission’s procedures, MSC’s response is due by
May 3, then the enforcement bureau will have until May 18 to submit an answer.
After that, it could be months before an administrative law judge makes a
decision, which could then be appealed.
The Alliance postpones relaunch of
suspended Asia-USEC service
The Alliance is to continue the
suspension of its Asia-North America east coast EC4 service, reversing a
decision to relaunch this month.
“The Alliance members –
Hapag-Lloyd, ONE, HMM, Yang Ming – will postpone the resumption of the Asia-US
east coast via Suez EC4 service until the situation in the Red Sea stabilises
further,” liner Alphaliner wrote today in its weekly report.
“The EC4 had been suspended in
November due to poor market conditions, and its re-launch was originally
planned for mid-April,” it added. The liner shipping analyst explained that the
vessels due to be deployed on the EC4 would be assigned to the alliance’s three
remaining Asia-US east coast services – EC1, EC2 and EC5 – which would all be
expanded to feature additional port calls.
The EC1, which transited the
Suez Canal but now sails via the Cape of Good Hope, is to make an additional
call at Xiamen on its head-haul ex-Asia leg. EC2, going via the Panama Canal,
will also feature an additional Asia outbound call, at the southern Chinese hub
of Yantian.
Japanese firm starts mass production of metal-based hydrogen carrier that can multiply the amount of H2 stored
Japanese chemicals firm Tokuyama
has begun mass production of magnesium hydride, a chemical compound that the
company claims can output twice as much hydrogen than it originally stored — a
phenomenon that occurs when using water to release the H2.
However, despite the
hydrogen-storing compound being able to store more H2 by volume than compressed
and liquefied hydrogen or ammonia, it can become violently explosive, while
experts also query its cost and energy efficiency.
Tokuyama, in collaboration with
compatriot Bio-coke Giken Co, has installed a hydrogenation reactor at its
caustic soda plant — where by-product hydrogen released from the chlor-alkali
process reacts with solid magnesium, and forms magnesium hydride on the surface
of the metal, effectively locking the H2 molecules in place for storage or
transport at room temperatures and at atmospheric pressures.
Malaysia's largest port to double capacity to chase Singapore
Malaysia's largest port, on the
major sea route of Malacca Strait, plans to double its capacity over the coming
decades, chasing neighboring hub Singapore as the shift in global supply chains
adds to the competition in Southeast Asia's logistics sector.
Port Klang, the world's
12th-largest port and second only to Singapore in Southeast Asia in terms of
capacity in 2021, plans to increase its annual capacity from 14 million
twenty-foot equivalent units -- a standard measure for container volume -- to
27 million TEUs, with operator Westports Holdings investing 39.6 billion
ringgit ($8.34 billion) over the coming decades.
"The whole expansion will
take over 40 years, and the starting point is 2024," Ruben Emir
Gnanalingam, the executive chairman and group managing director of Westports,
told Nikkei Asia in an interview. "Funding comes mostly through internally
generated funds first, and then we've upsized our sukuk (Islamic bond) program
to about 5 billion ringgit."
Panama Canal Authority warns restrictions
will remain in place throughout 2024
The Panama Canal Authority (ACP)
has claimed that the tide has turned in its ongoing battle to get back to
normal operations, following a debilitating year of drought-induced cuts to
drafts and transits. “Current forecasts indicate that steady rainfall will
arrive in late April and continue for a few months.
If this remains the case, the
Canal plans to gradually ease transit restrictions, allowing conditions to
fully normalize by 2025,” the ACP stated in a release yesterday, adding:
“Recent precipitation and progress secured by the Canal’s ongoing water-saving
efforts are turning the tide.”
It has been reported on the ACP’s decision to slash daily transits and draft levels since May last year. The persistent drought, made all the worse by the El Niño weather phenomenon, saw a huge swathe of the global merchant fleet decide to avoid the waterway over the long queues and high toll fees.
/// Air Cargo News ///
Transworld group's Airavat Aviation
forays into India with former SpiceJet chief's Sirius India Airlines
Transworld Group's Airavat Aviation, a renowned name in luxury
private air travel in the Middle East, is making its mark in India through a
strategic collaboration with Sirius India Airlines, led by former SpiceJet
Chief Operating Officer, Arun Kashyap.
This landmark collaboration marks a significant milestone in the
aviation landscape of India, promising a new era of luxury travel. The joint
venture marks a significant milestone for Airavat as it ventures into the
vibrant Indian market, aiming to cater to the growing demand for luxury air
travel.
Leveraging its expertise and resources, Airavat, in collaboration
with Sirius India Airlines, will initially operate flights through TJ Surya, a
Hawker 4000 aircraft with plans on expanding our fleet in India.
“We are thrilled to introduce Airavat to the Indian market,” said
Ramesh S. Ramakrishnan, Chairman of Transworld Group. “Our commitment is to
provide unparalleled comfort, safety, and discretion to our clientele. Airavat
caters to the growing demand for luxurious and bespoke travel experiences,
while remaining mindful of environmental responsibility.”
Air cargo exports from Ahmedabad up 28% in FY 2024
Air cargo exports from Gujarat increased by 28% in the 2024
financial year, according to data from the Ahmedabad Air Cargo Complex, which
dispatched 43,854 metric tonnes (MT) of exports in FY 2024 compared to 34,141
MT in 2023.
Sources attributed the increase to multiple reasons. Increased
demand for products from sectors such pharmaceuticals and engineering goods
were a key reason, a senior AACC official said.
The cargo terminal run by Gujarat Agro Limited has been shut for
nearly a year due to contract renewal issues and consequently perishables and
goods such as pharma and chemical products have been diverted to the AACC, a
top official said.
At least 77% of the cargo exported through AACC comes from four
sectors: engineering goods, pharmaceuticals and medicines, fabric, yarn and
textiles and chemicals. The top five categories posted a cumulative 43%
increase in exports in FY 2024. This came despite a contraction in the volumes
of chemicals and textiles.
Delta Air Lines will soon update the way it boards passengers
Delta Air Lines flyers will soon board its planes in a new way
that might remind them of the past. Beginning May 1, the airline will board
customers by numbered zones, a change that largely reverts back to process it
used until early 2019, before changing to its current process of boarding by
named categories (i.e. cabins, status and ticket types).
Delta will maintain the same boarding order, but the categories
will be called "zones," beginning with zone 1 and ending with zone 8.
For example, “Pre-Boarding” and “First Class” categories will be called zone 1,
the “Comfort+” category is being changed to zone 3 and the “Main Cabin” groups
will now be grouped in zones 5 through 7, before ending with “Basic Economy”
now in zone 8.
The airline said in a statement that the new numbered boarding
zones “provide customers with more clarity” about the boarding process and will
be used on all Delta flights. The new numbered zones will be printed on
customers’ boarding passes.
AAI’s terminal reconfiguration plan: 57
revamped terminals to facilitate 20 crore passengers; will save Rs 10,000 crore
The Airports Authority of India (AAI) has unveiled a massive initiative that is aimed at optimising passenger handling capacity across its 57 terminals across the country.
The development comes as a response to the rapid rise of the Indian Civil Aviation sector, presenting a solution to efficiently manage the escalating demands of air travel.
Announcing the details on X, the AAI said, “With this
comprehensive plan to enhance passenger handling capacity at its 57 terminals,
the organisation will save more than Rs 10,000 Crore.
The meticulous planning and efficient execution by AAI officials
paved the way for the success of this initiative.” Notably, the terminal
reconfiguration initiative is poised to revolutionise the passenger experience
while delivering substantial cost savings for AAI.
By implementing comprehensive plans to enhance capacity, the
organisation is aiming to save over Rs 10,000 crore. Further, these revamped
terminals will also cater to around 20 crore passengers, up from 10.5 crore at
present, ensuring shorter waiting times and smoother travel experiences.
Forwarder anger as scanner malfunctions
hit Bangladesh air exports again
Air cargo flows through Bangladesh’s Dhaka Airport are again facing severe challenges, due to the malfunction of explosive-detection scanners (EDSs).
Only one of the airport’s EDS machines is working, as air cargo
demand and rates out of the country have significantly increased this year.
“It is utterly impossible to meet the requirements of freight
forwarders with only one operational EDS,” Kabir Ahmed, president, Bangladesh
Freight Forwarders Association (BAFFA), wrote to the civil aviation authority
yesterday.
Outbound cargo is being stockpiled inside cargo villages,
according to forwarders. Mr Ahmed said that, of the four EDSs at Dhaka Airport,
one had been out of order for a long period, and during the past three weeks
two more stopped working. He said this was adding to freighter forwarders’
woes, along with Dhaka’s higher rates than other airports in the region,
limited capacity and delays.
Boeing fails to deliver, as 12 airlines wait for 777 freighters
Boeing admitted yesterday that it had failed to deliver a single
777 freighter in the first quarter of the year. The troubled plane-maker did,
however, produce 11, according to analysis by Jefferies, but they are yet to
have engines fitted and these so-called ‘gliders’ are stored at its facility in
Everett.
Aside from the cashflow issues the delays will surely cause
Boeing, it will also challenge its customers – and could impact the airfreight
market. Boeing has some 55 orders for the 777F to fulfil. Last year, it
delivered nine in Q4, eight in Q3, five in Q2 and four in Q1.
Some 14 airlines are waiting for the 777F, including Air China
Cargo, Qatar, Lufthansa and EVA Air. GE, the 777F engine manufacturer, said
last month than about 80% of its delivery shortages were because of constraints
at suppliers. The aerospace industry has been severely impacted by supply chain
issues.
Airbus said last month : “There have been a lot of issues
post-Covid, mostly to do with skill levels. It is starting to look better now, but there are problems and still
aircraft that are being delivered late. Some of the missing parts maybe seller
furnished equipment for us or buyer furnished equipment for the airlines,
things like seats.
“Part of the problem was during Covid, where staff supplier’s took
early retirement packages. So, that means they have got to hire new people, and
the new people have got to learn a new job”. The delays at Boeing will not help
in its race with Airbus. Many airlines are currently trying to choose between
the A350F and 777-8F, with many decisions based on possible delivery
schedules.
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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