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 -  August  01,  2024. 

                                                                                                                       

::               Today’s Exchange Rates           ::

Source : The Financial Times

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	83.72	-0.010002	-0.011946	83.72	83.73	83.695- 83.7525
EUR/USD	1.0837	0.0022	0.203411	1.0815	1.0815	1.0807- 1.0849
GBP/INR	107.4433	-0.2528	-0.234735	107.596	107.6961	107.3592- 107.6044
EUR/INR	90.6515	-0.049202	-0.054247	90.668	90.7007	90.4861- 90.6867
USD/JPY	150.076	-2.694	-1.763435	152.77	152.77	149.634- 153.901
GBP/USD	1.2832	-0.0004	-0.031158	1.2836	1.2836	1.2821- 1.2855
DXY Index	104.189	-0.364998	-0.3491	104.428	104.554	104.174- 104.531
JPY/INR	0.5566	0.0103	1.885407	0.5479	0.5463	0.5442- 0.5578

///                    Sea Cargo News          ///

Russian container market soars 12 per cent YoY

IJSC Global Ports Investments has released its operational results for Q2 and H1 2024. In Q2 2024, the Russian marine container market continued to recover rapidly. Total container throughput at Russian marine terminals increased by 11.8 per cent Year-on-Year (YoY) and 3.4 per cent Quarter-on-Quarter (QoQ) to 1.33 million TEU.

In H1 2024, total container throughput grew by 14.6 per cent YoY to 2.63 million TEU and reached levels of the record 2021 year. The Baltic basin outperformed the market, with Northwest Russia’s container throughput rising 33 per cent YoY in Q2 2024 and 58.2 per cent YoY in H1 2024, increasing its market share to 32 per cent from 23 per cent.

Southern Russia’s terminals saw lower growth, with throughput up 5.6 per cent YoY in Q2 and 6.2 per cent YoY in H1 2024. The Far East basin’s throughput remained stable, with its market share dropping to 44 per cent from 51 per cent due to Baltic recovery. Global Ports’ throughput increased 30.5 per cent YoY to 271,000 TEU in Q2 2024, and 44.2 per cent YoY to 568,000 TEU in H1 2024.

 

Shipping gets even dirtier as Houthi attacks fuel longer voyages

Shipping’s carbon emissions climbed by 23 million tons in the first half of this year, partly as vessels took longer routes to avoid attacks in the Red Sea. The 6% increase from a year earlier — equal to the annual amount spewed out by six coal-fired power plants — pushed the industry’s emissions to about 450 million tons, according to data from Marine Benchmark, which uses ship-tracking data to calculate the figures.  

The jump was biggest among container vessels, which emitted roughly 15% more over the period. The data highlight how hard it will be for ships, which carry more than 80% of world trade, to hit emissions targets set by their global regulator.

While the sector has repeatedly said it wants to become greener, the latest jump extends a long-term trend — though some drivers are beyond the industry’s control. One of the contributing factors has been attacks by Yemen’s Houthi militants, who for months have targeted vessels in the Red Sea area in protest at Israel’s war with Hamas. That has forced ships to sail around South Africa instead of through the Suez Canal, adding thousands of miles to voyages.

There are other examples of cargoes now sailing longer distances, due to sanctions imposed on Russia over its invasion of Ukraine. Huge volumes of crude and fuel that were historically sent to the European Union are instead being hauled much farther to nations still willing to take those supplies, such as India, China and Brazil.

The International Maritime Organisation has set a non binding goal for the sector to hit net zero greenhouse gas emissions by mid century. But reaching that target will require a big transformation of an industry that still largely relies on fossil fuels.

Separate figures from the IMO have previously pegged shipping’s annual CO2 emissions at more than 1 billion tons as of 2018 – though the methodology was different to Marine Benchmark’s.

 

Shifts in Container Rankings: ZIM surpasses Yang Ming, CMA CGM set to overtake Maersk

 

MSC and ZIM Line are the fastest-growing mainline operators, according to the latest Alphaliner’s report.

MSC’s fleet has now crossed the 6 million TEU mark, thanks to aggressive newbuilding orders and recent purchases of second-hand, albeit elderly vessels.

The Swiss-Italian operator’s latest newbuilding is the 16,616 TEU MSC Juliette, which Guangzhou Shipyard International delivered on 18 July, making it the 17th large Post-Panamax addition to MSC’s fleet this year.

Last week, the Aponte family-owned MSC took delivery of two pre-owned vessels, the 1999-built MSC Unity VI and the 2003-built MSC Bay IV. 

ZIM’s unrelenting commitment to taking more ships on long-term charter enabled the Israeli carrier to overtake Taiwan’s Yang Ming in the rankings, putting it in the ninth spot, while Yang Ming dropped to the 10th. ZIM’s fleet has grown nearly 18% from last year, to 728,011 TEU.

Source: Alphaliner

Year to date, ZIM has taken delivery of three 15,250 TEU ships, seven 7,800-7,900 TEU ships and eight 5,300-5,500 TEU ships. Many of the vessels have been assigned to the transpacific lane. 

Alphaliner remarked, “Like all carriers that rapidly expanded their fleet with large mainline newbuildings, ZIM is indirectly profiting from the Asia - Europe service re-routings via the Cape of Good Hope, since these diversions helped absorb the newbuilding wave. All the fresh tonnage also allowed the Haifa-based carrier to expand its Transpacific footprint. Currently, 48% of ZIM’s fleet is trading between Asia and North America.” 

Meanwhile, Maersk Line, which was dethroned atop the rankings by MSC in 2022, is set to be relegated to the third place as French carrier CMA CGM matches the market leader’s orderbook. 

Both MSC and CMA CGM each have newbuilding orders of 1.2 million TEUs, with the Marseille-based carrier booking a dozen 15,500 TEU LNG-fuelled vessels at HD Hyundai Heavy Industries and HD Hyundai Samho on 15 July.

CMA CGM’s current fleet stands at 3.75 million TEU. 

Maersk now has a fleet of 4.34 million TEUs but appears to be trying to recover lost ground. The Danish carrier still has 14 methanol-fuelled 16,000 TEU ships on order at HD Hyundai Heavy Industries and has reportedly asked for quotations from shipyards to build a dozen LNG-fuelled 16,000 TEU ships.

 

Container ship fleet sees fastest growth in 15 year

Since the beginning of the year, the capacity of the container ship fleet has increased by 1.6 million TEUs.  "Compared to one year ago, the capacity has risen 11% to 29.5 million TEUs, the fastest fleet growth in 15 years," mentioned Niels Rasmussen, Chief Shipping Analyst at BIMCO. 

During the first half of 2024, the delivery of new ships reached a new high. A total of 264 ships with a combined capacity of 1.6 million TEUs have been delivered from shipyards, two-thirds more than during the first half of last year when the previous record was set. 

Though a new benchmark has not been set, high demand for ships has contributed to keeping the recycling of ships at a low level. Strong cargo volume growth and the rerouting of ships via the Cape of Good Hope have contributed to the recycling of only 36 ships with a combined capacity of 51,000 TEUs.

"Despite the record, shipowners have continued to place orders for new ships. Year-to-date, a total of 63 ships with a combined 400,000 TEU capacity have been ordered and the order book-to-fleet ratio remains high at 19%," stated Rasmussen.

 Already now, the order book contains orders for delivery in 2028 and an average of 1.5 millio TEUs are scheduled for delivery each year between 2025 and 2027.

The combined capacity of 12,000-17,000 TEU ships has grown the fastest. This segment is now the largest within the container fleet, making up 22%. The segment’s capacity grew 25% YoY and the growth made up nearly 50% of the overall fleet’s growth.

In fact, the 12,000-17,000 TEU segment of ships was also the main driver of growth during 2022 and 2023. In addition, the segment will also dominate growth in the coming years as it makes up more than 50% of the capacity on order.

Ships larger than 17,0009 TEUs dominated growth during 2015-2021 but only made up 17% of the capacity in the order book. Shipowners’ focus has shifted from the larger ships as they are operationally limited to ports in Asia and Europe and the 212 ships already in service cover most of these trade lanes.

"The container fleet’s capacity is expected to exceed 30 million TEUs for the first time at the end of the third quarter and hit 30.5 million TEU mark by the end of 2024. By the end of 2027, the current order book will add another 4.3 million TEUs. As cargo volume growth is unlikely to match this expansion, we expect ship recycling to increase and temper overall fleet growth. In addition, if ships can eventually return to the Red Sea and the Suez Canal, demand for ships will fall," added Rasmussen.

This article was written by Niels Rasmussen, Chief Shipping Analyst at BIMCO.

 

Hapag-Lloyd applies US$1,000 GRI from Indian Subcontinent and Middle East to North America

Hapag-Lloyd has announced a General Rate Increase (GRI)/ General Rate Adjustment (GRA) from the Indian Subcontinent and Middle East to North America. 

The GRI will apply to cargo transported in 20’ and 40’ dry, reefer and special containers, including high cube equipment, and will be effective from September 1 until further notice. 

The German carrier said the new GRI will be US$1,000 per container.

Indian Subcontintent and Middle East area includes India, Pakistan, Bangladesh, Sri Lanka, UAE, Qatar, Bahrain, Oman, Kuwait, Iraq, Saudi Arabia and Jordan, while North America includes United States and Canada.

Global Ports reports increased volumes in 2024 so far

The major Russian port and terminal operator Global Ports has announced its operational results for the second quarter and the first half of 2024.

In Q2 2024, the Russian marine container market continued its rapid recovery.

Total container throughput at Russian marine terminals increased by 11.8% year-on-year (y-o-y) and 3.4% quarter-on-quarter (q-o-q) to 1.338 million TEUs. 

In H1 2024, total container throughput grew by 14.6% y-o-y to 2.631 million TEUs, reaching the levels of the record year 2021. The Baltic basin significantly outperformed the market. Container throughput in Northwest Russia increased by 33% y-o-y in Q2 2024 and 58.2% y-o-y in H1 2024. The Baltic basin’s share of the total Russian market increased to 32% in H1 2024 from 23% a year earlier.

 

Furthermore, container throughput at marine terminals in Southern Russia (Azov-Black Sea and Caspian basins) showed lower-than-market growth, increasing by 5.6% y-o-y in Q2 2024 and 6.2% y-o-y in H1 2024. In the Far East basin, container throughput remained mostly unchanged, staying close to the high levels of 2022–2023.

In addition, the Far East basin's share of the total Russian market was 44% in H1 2024, down from 51% a year earlier due to the demand recovery in the Baltic basin.

The consolidated container throughput of the company's marine terminals rose to 271,000 TEUs in Q2 2024, an increase of 30.5% y-o-y. In H1 2024, Global Ports’ marine terminals handled 568,000 TEUs, a 44.2% increase from the same period a year earlier.

Since the beginning of 2024, the growth rate of Global Ports’ consolidated container throughput has exceeded the market growth rate due to the favourable positioning of its terminals in the Baltic basin.

In Q2 2024, container throughput at the company's marine terminals in the

Baltics surged to 167,000 TEUs, a 2.8 times increase y-o-y, marking the highest container throughput in the last nine quarters. Key factors behind the volume growth at Global Ports’ terminals in the Baltics include import supplies and cabotage transportation.

 Global Ports continues to increase the handling of non-containerized cargo. In H1 2024, the growth rate of bulk cargo throughput was 11% y-o-y, with bulk cargo throughput at Global Ports’ marine terminals reaching a record 3.3 million tonnes for the first half of the year.

 

PIL upgrades its eBL solution

Pacific International Lines (PIL) is partnering with WaveBL, a provider of digital trade solutions, to provide a wider range of electronic Bill of Lading (eBL) solutions to its customers. 

WaveBL's solution is expected to improve the ease, security, efficiency, and sustainability of PIL's trade documentation process. Additionally, it is anticipated to provide a fuss-free experience for customers who will not be required to pre-register, making it a seamless transition to using eBL for shipments.

"A unique feature of the eBL allows the shipper to be on the platform without the consignee needing to be," said PIL in a statement.  Lionel Chatelet, Chief Commercial Officer of PIL, said the partnership aims to "offer an advanced eBL solution to our customers to better streamline transactions, reduce costs, improve productivity and contribute to carbon footprint reduction".

Chatelet added, "We are leveraging this partnership with WaveBL to upgrade our internal processes to make sure that the efforts made by our customers to switch to eBL will be translated into an immediate improvement to the way we are managing their documents and their shipments." 

PIL, which recently joined Digital Container Shipping Association (DCSA) aiming to accelerate its digital ambitions and enhance operational efficiencies, is the fifth carrier business partner of WaveBL. 

"PIL's commitment to sustainability and digital innovation mirrors WaveBL's mission to revolutionize global trade through secure and efficient digital solutions. Together, we aim to drive connectivity and redefine industry standards," mentioned Noam Rosenberg, CEO of WaveBL.

 

Port of Corpus Christi handles over 50 million tons in 2024 Q2

Port of Corpus Christi.

In the second quarter of 2024, 50.1 million tons of cargo passed the Corpus Christi Ship Channel, marking a 1.7% rise compared to the same period in 2023.

During this period, the US port experienced growth in shipments of crude oil, break bulk, and agricultural commodities. In particular, crude oil tonnage rose by 4.8% to 32.6 million tons, while breakbulk and agricultural cargoes increased by 52% and 39.8%, respectively.

In the first half of 2024, the Port of Corpus Christi moved 99.5 million tons, a slight uptick from the same period in the previous year.

  

HMM boosts capacity on PSX service amid surging exports to USWC

HMM has increased the capacity on its Pacific Southwest Express (PSX) transpacific service since volumes from South Korea’s Incheon Port to the US west coast surged. 

South Korea’s flagship carrier has now deployed seven 13,000-14,000 teu ships to the service, starting with newbuild HMM Emerald, which departed Incheon last week, with 3,451 teu loaded, replacing seven vessels ranging from 8,566 teu to 11,100 teu.

The other 13,000 teu ships assigned to PSX are HMM Ruby, HMM Pearl, HMM Sapphire, HMM Topaz, HMM Opal and HMM Turquoise, deployed on an Incheon, Shanghai, Gwangyang, Busan, Los Angeles, and Oakland rotation. In February, HMM and its compatriot peer, SM Line, began exchanging slots on each other’s transpacific services, with SM Line doing so on the PSX.

An HMM spokesperson said: “We have decided to deploy more vessels to expand our fleet on the Asia-US route. We will deploy five more 13,000 teu ships in the second half of the year, a total of 12 on the route.”

 

 

///                     Air Cargo News            ///

GOX expands horizons with first freighter operation

Goa's Manohar International Airport (GOX) - has reached a new achievement with its inaugural freighter operation. The GMR Goa team efficiently handled the first freighter flight, bringing in 25 tonnes of defence equipment.

Mopa's cargo terminal successfully processed the import, marking a significant accomplishment in the airport's cargo capabilities. In collaboration with Chapman Freeborn and BBN Airlines, the GMR Goa team facilitated this operation using an A321 freighter.

Additionally, in an interview, Thakur Purushtottam Singh, Business Head, Goa Air Cargo, GOX, said, "The route of the flight was Belgium, then Sharjah and finally to GOX." He also confirmed that the freighter was carrying defence equipment. "The flight will return today to Sharjah," added Singh.

"This achievement underscores our commitment to meeting growing demands of global logistics with efficiency and innovation," said Singh in a LinkedIn post announcing the first freighter operation from GOX and praising the efforts of the GMR Goa team.

Adani Airport Holdings to invest in Jomo Kenyatta Airport in Nairobi

Kenya Airports Authority (KAA) has received an investment proposal from Adani Airport Holdings (AAHL) to undertake a significant upgrade of Jomo Kenyatta International Airport (JKIA) in Nairobi.

The proposal, under the Public Private Partnerships Act 2021, will see Adani Airport Holdings invest in a new passenger terminal building, second runway and refurbishment of the existing facilities at JKIA, according to the official statement released by Henry Ogoye, Acting MD and CEO, KAA.

“The proposal will be subjected to technical, financial and legal reviews alongside requisite due processes in compliance with the Public Private Partnerships Act 2021.

The project agreement will be preceded by stakeholder engagement, the national treasury approval, the Attorney General clearance and the cabinet approval.”

"I wish to assure our staff that no jobs are at risk. I also wish to assure the airport business community and operators that the expanded facility will create additional business opportunities and attendant benefits," adds Ogoye.

Adani’s investment marks a significant expansion of its footprint in Africa, following the recent announcement of its acquisition of a majority stake in Tanzania International Container Terminal Services (TICTS) on May 31, 2024.

Embraer forecasts over 600 freighters under 20-tonne payload by 2043

Brazilian aerospace multinational Embraer forecasts the delivery of over 600 new freighters under 20-tonne payload by 2043 in its latest market outlook for the next two decades, expanding the fleet from 400 freighters in 2024 to 630 by 2043.

Embraer anticipates a promising future for the cargo market, according to its 20-Year Market Outlook launched at the Farnborough International Airshow. With projected GDP growth of 2.5 percent, cargo traffic is seen increasing by 3.6 percent annually from 2024 to 2043.

E-commerce is one of the driving forces incentivising the air freight industry, according to Embraer. Worldwide e-commerce sales surged 72 percent from 2019 to 2023 and is projected to grow another 40 percent by 2027, reaching an estimated $8 trillion, it mentions.

Embraer says the sudden influx of capacity, combined with the return of commercial aircraft belly space post-pandemic and the volatile demand due to geopolitical trade tensions, led to overcapacity in the cargo market beginning in the second half of 2022.

“ Despite the glut, there are emerging opportunities for smaller freighters to satisfy the tremendous  growth in 3-commerce. Those aircraft can feed main cargo hubs, linking smaller – demand markets faster and more cost effectively, with just the right capacity and frequency than larger narrow and wide body jets”.

It also notes that the air cargo industry consistently encounters demand fluctuations, driven primarily by geopolitical and economic forces. Adapting to this dynamic environment is crucial for its success.

Three regions – Asia, North America and Europe – are the largest markets. Combined, they accounted for 81% of all freight tonne kilometers in 2023.

Under its E-Freighter programme, the company is converting its existing E-Jets passenger aircraft into dedicated cargo planes. The programme specifically focuses on transforming the E190 and E195 modes into the E-190F and E-195F freighters, respectively.

Embraer’s latest aircraft, the 190F  E-Freighter, has been certified by the National Civil Aviation Agency of Brazil (ANAC) and is on display at the Farnborough Airshow 2024.

Magma expands to Dubai with two freighters, as ASG keeps growing

Magma Aviation, the Avia Solutions Group-owned airline, has expanded with a new base and two freighters in the Middle East. Headed by former Bluebird Nordic CEO Audrone Keinyte, Magma DMCC is sited at Dubai Multi Commodities Centre, a UAE free-trade zone.

Magma also said it had added two aircraft to its fleet, an A321-200P2F, reportedly from sister carrier SmartLynx, and B737-800BCF. Magma also owns three 747-400Fs.

“The narrowbody freighters will be strategically based at airports in the UAE and Middle East, and will address the growing demand for reliable and efficient cargo transport, growing the company’s global connectivity and operational capacity,” said the carrier.

Ms Keinyte said: “The two new narrowbody aircraft we have added to our fleet significantly strengthen our existing capacity, contributing a range of 5,500km between them.” With the new additions, Magma Aviation will become one of only a few cargo operators with access to both A321P2F and 737-800BCF capabilities.

Airbus to boost SAF production through investment in LanzaJet

Airbus is investing in LanzaJet, a leading sustainable fuels technology company and producer, in line with its ambition to act as a catalyst for the global development of sustainable aviation fuel (SAF).

The investment will support the development of the alcohol-to-jet (ATJ) pathway, an important step required to produce SAF at scale by enabling LanzaJet to further expand its capability and capacity to scale its proprietary ethanol to SAF process technology, says a release from Airbus.

“Sustainable aviation fuels are one of the most important levers available to decarbonise aviation but their production is still limited," says Julie Kitcher, Chief Sustainability Officer, Airbus.

Our partnership with LanzaJet demonstrates Airbus' commitment to work with leading energy technology suppliers to explore innovative production pathways and scale SAF.

This important partnership with LanzaJet underlines the importance of new technologies and cross-sector collaboration to achieve net-zero CO2 emissions by 2050.”

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

Casa Blanca, 3rd Floor

11, Casa Major Road, Egmore

Chennai – 600 008. India.

GST Number : 33AAACJ2686E1ZS.

Tel : + 91 44 2819 0171 / 3734 / 4041

Fax : + 91 44 2819 0735

Mobile : + 91 98407 85202

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

Website : www.jupiterseaair.com

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