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  May 30,  2024.

                                                                                                                        

::               Today’s Exchange Rates           ::

Source : The Economic TimesR 

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	83.34	0.149994	0.180303	83.22	83.19	83.22- 83.3625
EUR/USD	1.0841	-0.0016	-0.147373	1.0857	1.0857	1.0829- 1.086
GBP/INR	106.3508	0.090996	0.085635	106.0863	106.2598	106.0863- 106.4441
EUR/INR	90.4502	-0.020897	-0.023098	90.272	90.4711	90.2327- 90.5119
USD/JPY	157.24	0.070007	0.044542	157.17	157.17	156.90- 157.408
GBP/USD	1.2746	-0.0016	-0.125374	1.2761	1.2762	1.2746- 1.2772
DXY Index	104.649	0.035004	0.03346	104.648	104.614	104.589- 104.798
JPY/INR	0.5303	0.0011	0.207862	0.5293	0.5292	0.5285- 0.5308

TESRATES

///                    Sea Cargo News          ///

Adani Group readies $3-billion investment to expand global port presence: Report

The Adani Group is gearing up with a $3-billion investment to bolster its port operations with an eye on the corridor than connects India to Europe, the Mint has reported. The move is aimed at leveraging the growing demand for iron ore and coal imports as well as the export of finished goods. The Gautam Adani-led conglomerate plans to increase its overall port handling capacity from around 600 million tonnes per annum to 800 million tonnes in the next two years. 

The expansion would primarily be achieved through a series of international acquisitions, the report cited sources as saying. The group is targeting at least three large ports across coastal Europe, Africa, and Southeast Asia, which aligns with it strategy to enhance it global footprint, the report said.

The group manages its ports business under Adani Ports and Special Economic Zone Ltd (APSEZ). The $3-billion capital expenditure is expected to be funded through a combination of cash reserves, internal accruals and debt, a source said.

The objective of the expansion is to increase the contribution of international ports to APSEZ’s revenue from 10% to approximately 20 to 25% within the next three years.  The group operates port facilities in Israel, Sri Lanka, Indonesia, Tanzania and Australia.

International box lines fix Chinese domestic vessels as charter market soars

Boxship charter rates have reached a two-year high and in a replay of the Covid-19 pandemic, Chinese coastal container operators are seeing demand from international liner operators to charter their ships.

Heng Hui 6, Source: VesselFinder.

CMA CGM chartered Shishi Hengtong’s 2004-built 5,060 TEU ship Heng Hui 6 for 18 to 20 months, for US$28,000/day.

Safetrans Line, a China-based operator focusing on Russian routes, chartered Fujian Wan Da’s 1997-built 2,105 TEU Wan Xing Da for six to eight months for US$20,000/day. The operator also fixed another Chinese-owned ship, 2023-built 2,838 TEU Chang Shun Jin Xiu, from Shanghai Changshun, for six to eight months for US$26,000/day.

China’s largest coastal container carrier, Zhonggu Logistics was also active as a tonnage provider, reprising this role that began during the pandemic. The company chartered its 2019-built 1,912 TEU Zhong Gu Bo Hai to X-Press Feeders for three to five months for US$18,000/day. Zhonggu also chartered its 2023-built 4,636 TEU Zhong Gu Shen Yang to Global Feeder Shipping for six to eight months for US$30,000/day.

Consultancy Linerlytica remarked, “Charters rates and periods continue to rise with the limited number of open ships pitted against sharply higher demand. Even the smaller sizes below 1,200 TEU enjoyed firmer demand after their lacklustre performance of the last 3 months.

Further gains are expected for all segments despite another 600,000 TEUs of new ships due for delivery in the next two months with less than 10 of the new units still available for charter. Even lower Chinese spec units originally aimed at the domestic markets are finding takers in such a bullish environment.

“The bullish sentiment has also pushed charter rates to fresh two-year highs, with the record level of ship deliveries doing little to dampen the buoyant market.”

Fifty-nine ships of 342,200 TEUs were delivered from the shipyards in April, setting new records for both the number of new buildings delivered as well as the highest level of new capacity added in a single month. Although nominal capacity has risen by 10.4% year on year to reach 29.5 million TEU currently, effective demand has grown faster by 13.1% based on Linerlytica’s estimates with the shortage of vessel capacity expected to persist until October this year.

Port of Koper handles 256,240 TEUs in Q1

Port of Koper

The Luka Koper Group’s performance in the first quarter of this year was primarily impacted by weak economic activity in the euro area and sluggish growth in the global economy.

Slower-than-expected economic growth and the uncertain situation in the Middle East have resulted in slightly lower maritime throughput. The first quarter saw throughput reach 5.3 million tonnes, a 7% decline from the same period in 2023 and 9% below projections.

Container throughput fell to 256,240 TEUs, an 8% decrease from the first quarter of last year, while car throughput dropped to 189,855 units, down 18%.

Both commodity groups were impacted by the challenging conditions mentioned and, for cars, by weaker sales in certain markets. Dry bulk throughput decreased by 18%, primarily due to lower coal volumes, although fertilizers, wheat, and phosphates saw increases compared to last year. The general cargo segment grew by 10%, driven by higher throughput of steel products, equipment, and timber exports, while liquid cargoes increased by 3%.

Also, the operating result (EBIT) reached US$19.3 million, exceeding plans by US$2 million or 13%. This was largely due to a 7% reduction in operating costs, driven by lower-than-expected headcount, reduced volume-dependent service costs, and lower energy expenses.

However, compared to the same period last year, EBIT was 9% lower, primarily due to increased labor costs and decreased warehousing income. Net profit stood at US$16.7 million, 9% above projections but 7% below the previous year's figure.

Furthermore, net turnover amounted to US$86 million, 4% below the planned level and 1% lower than the net turnover achieved in the previous year's first quarter. Revenue from increased container stuffing and stripping services and other additional services on goods was higher than the previous year. However, revenue from warehousing fees decreased due to the shorter dwell time of containers and other goods in storage.

"In line with the annual and strategic business plan adopted at the end of last year, we continued our activities to increase port capacity, spending US$12 million, 38% more than in the first quarter of last year.

We continued with the construction of Berth 12 at Pier 2 and the relocation of the storage blocks at the Container Terminal. We were also active in sustainable investments (US$4,8 million) as we installed a 3.3 MW photovoltaic power plant at the General Cargo warehouses, one of the largest in Slovenia," stated a Port of Koper spokesperson.

The maiden call of Wan Hai Lines SI8 service at Nhava Sheva

In order to provide customers with more comprehensive and convenient shipping services, Wan Hai Lines continue to expand their services network in India.

In 2024 May, Wan Hai Lines has launched the Indonesia to West India direct service SI8 (SOUTH EAST ASIA-INDIA SERVICE VIII). On May 19th, the SI8 successfully completed its maiden call at the BMCT terminal.

This services not only covers the traditional Far East area but also offers direct services to ports such as Jakarta and Surabaya. SI8 provides customers with more efficient, faster, and more extensive transportation services between Indonesia and India to meet customer’s needs.

The port rotation will be: Jakarta – Surabaya – Singapore – Port Kelang North Port – Mundra – Nhava Sheva – Port Kelang North Port – Jakarta.

The road ahead for Indian operations at Chabahar port in Iran

India and Iran are eyeing the next steps for implementing their long-term agreement for Indian operations at Chabahar port, including acquisition of equipment and steps to increase the use of the facility for trans-shipment of goods to destinations such as Russia, people familiar with the matter said.

The two countries inked the 10-year pact on operations at Shahid Beheshti terminal of Chabahar port in Tehran on May 13. Besides a commitment to invest $120 million to acquire equipment for port operations, India offered a credit window of $250 million for developing infrastructure around the deep-sea port in the Gulf of Oman.

A focus area for both sides now will be the acquisition of equipment and machinery that can boost operations at Shahid Beheshti terminal, which is operated by a subsidiary of State-run India Global Ports Limited (IGPL), the people cited above said on condition of anonymity. These efforts have been hampered in the past by US sanctions on Iran, they said.

Shipping from India to Arabian Gulf? Here's a PSS

A Peak Season Surcharge (PSS) from Nhava Sheva, Kandla and Mundra, India to Arabian Gulf and Saudi Eastern Province is coming up. This PSS applies to all for cargo transported in 20’ and 40’ reefer containers sailing from Nhava Sheva, Kandla and Mundra from June 1, 2024, and is valid until further notice.

The details for this increase are listed below:

20' Reefer Container: USD 50 

40' Reefer Container: USD 50.

For your reference, the geographical scope of this PSS is explained below:

Arabian Gulf: UAE, Oman, Kuwait, Iraq, Bahrain and Qatar.

*Saudi Eastern Province: Dammam, Riyadh and Jubail (Saudi Arabia).

Source : Hapa Lloyd.

L&T dispatches ethylene oxide reactors to China

Infrastructure major Larsen & Toubro (L&T) on Wednesday said it has dispatched the world's heaviest ethylene oxide reactors -- a crucial component in petrochemical plants to China.

The reactors were dispatched by the heavy engineering vertical of Larsen & Toubro (L&T) for a project of chemical giant BASF in China, the company said in a statement.

"I thank BASF for giving L&T the opportunity to supply the most critical reactors for its prestigious project," Anil V Parab, whole-time Director & Senior Executive Vice President, L&T Heavy Engineering and L&T Valves said. Ethylene Oxide (EO) reactor facilitates the catalytic conversion of ethylene into ethylene oxide, which is a key intermediate in the production of various downstream chemicals. 

"This equipment... are the biggest EO Reactors ever built in almost 160 years of BASF history. These are critical supplies to the petrochemical project at Verbund in Zhanjiang to support the growth of the chemical market in China,” Jochim Thiel, Sr. VP BASF China said.

L&T is a USD 27 billion dollar domestic MNC engaged in engineering, procurement and construction projects, hitech manufacturing and services company.

///                     Air Cargo News            ///

United Cargo joins third-party booking portals with WebCargo partnership

United Cargo is placing its airfreight capacity on a third-party online booking platform for the first time through a partnership with Webcargo.United Cargo is currently active on the platform for customers in Belgium, France, Germany, the Netherlands, Switzerland, and the UK, with plans to expand availability to US and Canadian customers later in May.

Source: Vytautas Kielaitis/ShutterStock.com

The two companies also worked together on developing United Cargo’s own new booking platform. “This booking channel complements its current website capabilities and gives customers a choice in how to access and book United Cargo’s available capacity,” WebCargo said in a press release.

United Cargo president Jan Krems said: “Our customers are seeking new ways to communicate and book with us. The enhanced booking functionality on our website, along with our participation in the WebCargo marketplace, are two new booking options for our customers. It’s another step forward in delivering an even better customer experience.

“We are excited about these advancements and our collaboration with the WebCargo team spanning both our portal and the WebCargo platform.”

Manuel Galindo, chief revenue officer at WebCargo parent Freightos added: “It’s no secret, there is a rapid adoption of eBookings, particularly across Europe and the Americas. By combining United Cargo’s booking portal with the thousands of forwarders on the WebCargo and 7LFreight booking platform, forwarders large and small can now access United Cargo services 24/7, wherever they choose.”

With the addition of United, WebCargo has the capacity of all three major US carriers on its platform, with Delta Air Lines and American Airlines also available for booking. The carrier has been pushing its digital development over the last 12 months.

At the start of 2023, Krems told Air Cargo News that it had launched a beta project with 12 clients for online bookings of express and general cargo. It  has also introduced a price quote tool that gives visibility of all the different options and possible routes.

At the time, he said dynamic pricing for online quotes and bookings is also in the works as well as the development of APIs.

New partnership aims to create SriLankan Airlines cargo feeder network

MMAG Aviation Consortium (MAC) will establish an air cargo feeder network to support SriLankan Airlines’ cargo operations if an investment bid by Supreme Global Holdings and a partner is successful.

A partnership led by Sri Lankan conglomerate Supreme Global last week emerged as a potential buyer of an interest in the government-owned airline.

In line with the bid, Supreme Global has signed a partnership with supply chain services company MMAG Holdings that will see subsidiary MMAG Aviation Consortium (MAC) provide freighter aircraft and operational support to establish a cargo feeder network for SriLankan Airlines if the investment proves succesful.

In a filing with stock exchange Bursa Malaysia MMAG said: “Pursuant to the Agreement, MAC agrees to support the said acquisition by providing the requisite guidance, specialised services, specifically focusing on establishing and managing a regional cargo feeder network, subject to the terms and conditions of the agreement.”

Services provided by MAC will include planning, staffing, managing and maintaining the cargo network.

Additionally, MAC will support Supreme Global and its partner in restructuring efforts post-acquisition and assist in launching a cargo network leveraging the geographic position of Sri Lanka to enhance its capacity as a strategic hub.

“MAC has been identified by Supreme Global to be the best candidate in this field given its ability, expertise, knowledge and spectrum of capabilities and coverage to partner and guide, following
the Group’s recent contracts secured from major carriers like MasKargo and Teleport by AirAsia, establishing the Group as a key feeder and cargo handling operator in the aviation industry,” added the filing.

Headquartered at Kuala Lumpur International Airport (KLIA), MAC delivers integrated cargo airline solutions, encompassing commercial cargo operations, ground handling, an oceanic transhipment hub and on-demand cargo depot services.

MMAG, meanwhile, is active in the air cargo industry through its subsidiary M Jets International, which in turn owns Boeing 737 freighter operator Kargo Xpress. The supply chain service provider offers services covering first, mid, and last-mile delivery solutions.

Supreme Global is a prominent Sri Lankan conglomerate with diversified interests spanning finance, infrastructure, logistics and aviation. The Sri Lankan government is looking for an investor to attract funding for the airline, which is in recovery mode following a difficult few years.

Last year, SriLankan Airlines told Air Cargo News it planned to focus on e-commerce flights to China, interline partnerships and digitalisation to tackle the tough operating conditions the air cargo market was facing.

SriLankan Cargo recently placed its capacity on CargoAi’s CargoMART online booking portal.

Record volumes for Saudia Cargo in Q1

Saudia Cargo aircraft. Photo: Saudia Cargo - brandcode

Saudia Cargo had a record first quarter in terms of cargo volumes as shipments of fashion, e-commerce and express goods were on the rise. The Jeddah-headquartered business reported an overall first-quarter volume increase of 20% year on year.

Volumes for its specialised products were up by a “significant” 19% compared with a year earlier, with fashion increasing 85%, express 9% and e-commerce 34%.  The cargo business said that the increase in fashion tonnages reflected its “adaptation to the evolving demands of the fashion industry”.

Saudia Cargo has also been focussing on the e-commerce business and earlier this year launched a new partnership with e-commerce logistics firm Cainiao and handler WFS in Liege and added flights to Shenzhen targeting the online retail sector.

Saudia Cargo chief executive Teddy Zebitz said: “We are thrilled to see the incredible strides we have made in Q1 2024. Our strategic partnerships with WFS and Cainiao Group have transformed cross-border e-commerce logistics, amplifying customer service and industry innovation.

“This launch of our collaboration at Cainiao’s Liege eHub in Belgium earlier this year underscores our dedication to global operational excellence, meeting the surging demand for top-tier organisation in cross-border e-commerce across the Middle East and European markets, while also facilitating seamless logistics solutions and solidifying our position as a vital bridge between East and West trade.”

He also highlighted a rise in cargo volumes on passenger aircraft operated by Saudia Airlines.  This increase is estimated at 38% compared with the same period last year.

Zebitz added: “Saudia Cargo continues to set new industry standards while empowering businesses to flourish worldwide. All of these initiatives led to achieving the highest monthly flow tonnages for the month of March 2024 since 2017”

“We have also bolstered operational capacity by welcoming new aircraft 747 to our fleet, ensuring enhanced efficiency and timely delivery of cargo worldwide. As we continue to navigate through dynamic market conditions, we remain focused on delivering exceptional value to our customers and driving growth in the global air cargo industry.”

E-commerce continues to drive up Cathay’s cargo volumes

© Airbus S.A.S. 2023

Cathay Pacific’s year-on-year cargo volumes were up 7.4% in April, once again due to strong e-commerce demand.  The airline carried 117,428 tonnes of cargo in April 2024, an increase of 7.4% compared with April 2023. However, the airline noted that volumes had dropped month on month.

Chief customer and commercial officer Lavinia Lau said: “In terms of cargo, tonnage was 13% lower in April than in March. The decrease was expected given the strong quarter-end demand in March and the holidays that fell in the first half of April.

“However, compared with April last year, tonnage was 7% higher. After the holidays, we observed an uptick in demand with a key driver being e-commerce shipments from Hong Kong and the Chinese Mainland.”

The month’s cargo revenue tonne kilometres (RFTKs) decreased 0.4% year on year, while the cargo load factor decreased by 4.2 percentage points to 59.5%,

Capacity also continued to rise, although not as sharply as the previous month. Available cargo tonne kilometres (AFTKs) increased by 6.6% year on year.

In the first four months of 2024, the tonnage increased by 10.1% to a total of 473,808 tonnes, against a 12.9% increase in AFTKs and a 4.5% increase in RFTKs, compared with the same period for 2023.

Cathay Pacific noted it will be adding flights as part of its summer schedule, which will add further belly capacity. The airline is also optimistic about short term cargo volumes.

Lau said: “For cargo, we foresee steady growth in tonnage going forward, particularly on cargo lanes between Asia and North America over the coming months.”

Bloomberg: Private equity and shipping giants circle DB Schenker

German forwarding and logistics company DB Schenker has attracted bids from shipping and logistics giants as well as a private equity consortium. According to a report in Bloomberg, a consortium led by CVC Capital Partners and Carlyle Group has submitted a bid worth around €14bn.

Photo: DB Schenker

Meanwhile, DSV, AP Moller Maersk and Mediterranean Shipping Company (MSC) have also submitted bids. Quoting insiders, Bloomberg said the logistics companies had been less aggressive on price than the private equity consortium.

In March, Air Cargo News reported that DB Schenker had attracted interest from around 20 parties. Other companies rumoured to be interested include UPS, DP World, Saudi shipping company Bahri, and Abu Dhabi Ports owner ADQ.

Bloomberg said it wasn’t clear whether Bahri and ADQ had pursued a bid and made no mention of UPS and DP World.

A Deutsche Bahn spokesperson told Air Cargo News: “In recent weeks, bidders had the opportunity to refine their non-binding offers for DB Schenker based on comprehensive information.

“These confirmed, non-binding offers have now been submitted and are being carefully evaluated before the next phase of the sale process begins promptly. The process is running according to plan.”  Earlier this year, AP Moller Maersk said it would consider making an offer after previously dismissing the idea.

Chief executive Vincent Clerc said the company had now changed its mind on a possible bid for the forwarder given the sector’s resilient earnings post-Covid and also an apparent change of perception from shippers when it comes to a carrier also owning a forwarder.

He pointed to the CMA CGM Group’s ownership of CEVA Logistics as an example of his latter point. 

“Our strategy is very clear, we need to diversify our revenue streams and our earning streams towards the more stable and less volatile part of the supply chain, which is pretty much anything outside ocean/2PL,” he said.

“In that respect, having something like a Schenker coming on the market is definitely something that Maersk cannot simply say we are not even going to look at.”

DHL Group has declared itself out of the running for acquiring DB Schenker following much speculation over which company will buy the freight forwarder.

Deutsche Bahn announced at the end of last year that the forwarder was officially up for sale after spending a year mulling its options.

Air Cargo News sister title DVZ reported earlier this year that Deutsche Bahn had asked interested parties to demonstrate their experience with logistics M&A deals of this size and that they have the appropriate financial resources.

They must also explain what interest they have in Schenker and give an initial insight into their plans for the company if they were to win the contract.

The sales documents show that a complete sale is still the preferred option, although interest in less than 100% of the shares would be considered, so a partial sale is not completely ruled out either.

If Maersk were to be successful, the takeover would push the Danish company close to the top three airfreight forwarders.

DSV, however, would become the world’s largest airfreight forwarder if its bid were successful, given it is currently ranked third and DB Schenker fourth.

RSP hopeful work can begin on Manston airfreight hub following latest ruling

Manston Terminal plans

The owners of Manston Airport in the UK say work can soon start on its new airfreight hub following the latest court ruling.

The Court of Appeal has dismissed an application from a local resident to appeal against the granting of the Development Consent Order (DCO) required for the plans.

The battle over the future of the airport site has been dragging on for seven years but airport owner RiverOak Strategic Partners (RSP) is hopeful work can now get underway.

“This means that the DCO remains granted, as announced by the Department for Transport in August 2022, and work can now begin to transform Manston and recruit staff both for the construction phase and for operational roles once the airport is ready to reopen,” said RSP.

It is anticipated that detailed planning, construction, recruitment and the completion of the airspace change project will now take three years in total to complete – with the airport ready to receive flights in 2027.

RSP director Tony Freudmann said: “We have always remained confident in our proposals and unshaken in our belief that we can create something very special at Manston which delivers both important capacity for UK air freight – and a sustainable economic boost for east Kent.

“Although the past seven years have been intensely frustrating at times, the fact that we have gone all the way to the Court of Appeal means no stone has been left unturned in the examination of our proposals.

“We can now deliver our plans knowing with certainty that we have demonstrated, beyond question, that Manston has a vital role to play in addressing the airspace capacity issues blighting London and Southeast – and that this historic and strategically important airport can reinvent itself once again to meet the nation’s needs in the global marketplace.”

Local resident Jenny Dawes who led the appeal said: “”We always knew it would be difficult. We may not have succeeded in quashing the second Manston Airport DCO but, importantly, this decision has clarified the rules and ensured a modicum of fairness for future campaigners where the Secretary of State relies on new evidence that has not been consulted on when redetermining a DCO application.”

She added: “Nothing in the decision confirms that Manston Airport is viable. The economic case for Manston Airport has not improved nor have the climate change concerns have been resolved. 

“I remain firmly of the view that the government’s decision to proceed with Manston Airport, in the face of all the expert evidence to the contrary and the worsening climate change crisis, is nonsensical.” 

The £500m plans for the airport included 19 stands capable of handling widebody freighters as well as a 65,500 sq m cargo facility.

Originally an RAF base, Manston Airport’s runway measures 2,748 m in length and an official listed width of 61 m, although it is actually much wider.

Before its closure in 2014, the airport hosted Boeing 747 freighter flights from Cargolux and Saudia Cargo.

 

I  hope  you have enjoyed reading this update.  Have a nice day.

With kind regards

Robert Sands

Joint Managing Director

 

Jupiter Sea & Air Services Pvt Ltd

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E-mail : robert.sands@jupiterseaair.co.in

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