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 - October 21,
2024.
Today’s Exchange Rates
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
84.07 |
-0.010002 |
-0.011896 |
84.06 |
84.08 |
84.055- 84.0825 |
|
|
1.086 |
0.0029 |
0.26775 |
1.0831 |
1.0831 |
1.0825- 1.0865 |
|
|
109.5843 |
0.357994 |
0.327754 |
109.4588 |
109.2263 |
109.4514- 109.8786 |
|
|
91.169 |
-0.1269 |
-0.138998 |
91.115 |
91.2959 |
91.0762- 91.2159 |
|
|
149.707 |
-0.503006 |
-0.334868 |
150.21 |
150.21 |
149.585- 150.286 |
|
|
1.3041 |
0.003 |
0.230576 |
1.3011 |
1.3011 |
1.3008- 1.3071 |
|
|
103.653 |
-0.171997 |
-0.165661 |
103.804 |
103.825 |
103.588- 103.804 |
|
|
0.5609 |
0.0004 |
0.071355 |
0.5597 |
0.5605 |
0.5595- 0.5614 |
/// Sea Cargo News ///
Maersk, Hapag bosses
reinforce confidence in Gemini alliance service reliability targets
At the Xeneta Summit in Amsterdam, leaders from Hapag-Lloyd and Maersk showcased their strong commitment to the forthcoming Gemini Cooperation, emphasizing their goal to achieve 90% service reliability.
This new alliance, which includes two of the five largest ocean
carriers, is set to commence operations on February 1 next year, adopting a hub
and spoke model for mainliner and transshipment services to boost reliability.
Rolf Habben Jansen, CEO of Hapag-Lloyd, and Kenni Skotte, Vice
President and Head of Ocean Network Product at Maersk, participated in a panel
to discuss Gemini’s strategy to attain 90% reliability, notably-high compared
to the current industry average of 53%.
Skotte expressed optimism about reaching their ambitious
reliability target, acknowledging current market skepticism due to lower
average reliability score. He predicted that by next year, they would
demonstrate the effectiveness of their strategy.
The Gemini Cooperation plans to enhance its network with 57
services across seven trades, emphasizing increased and structured use of their
controlled transshipment hubs to improve service stability and reliability.
Both leaders highlighted the strategic design of their operations to mitigate
delays and their ripple effects across services.
Despite potential routing changes due to conflict in the Red
Sea, with initial plans to navigate around the Cape of Good Hope, both Jansen
and Skotte confirmed that these adjustments would not compromise their
reliability target.
Hapag-Lloyd’s boss pointed out the flexibility of their network
to handle different scenarios while maintaining leading reliability standards.
Skotte concluded that their innovative network model aims to set
a new high standard for the industry by significantly boosting schedule
reliability for their customers’ benefit.
Vizhinjam port set to launch commercial operations on
December 3
The government is preparing to move forward with the
commissioning of the first phase of the Vizhinjam International Seaport Ltd
(VISL) for commercial operation on December 3, following successful trial runs.
A final decision will be made in consultation with Adani Vizhinjam Port Pvt
Ltd, said officials.
They said that port operations have advanced significantly
during the trial period, and an announcement regarding the commissioning is
expected soon. The trial operations of the port began in July with the
successful berthing of a mothership named San Fernando.
Since then, the port has welcomed 20 ships. VISL, India’s first
semi-automated container port, demonstrated its capabilities by unloading over
60,503 TEUs (20-foot equivalent units) of cargo from the ship. The port set a
new record by handling 10,330 TEUs in a single vessel exchange with MSC Anna,
one of the largest container ships in the world, earlier this month. The most
recent ship to berth was MSC Lisbon, which departed the port on Sunday.
The VISL is equipped with eight ship-to-shore cranes, including
the largest in the category (1620 Tons) in the country and 23 yard cranes. The
ship-to-shore cranes are used to life the containers from the ship and place
them in the terminal track.
Additionally, the port has received regular International Ship
and Port Facility Security (ISPS) Code Certification, solidifying its status as
a secure hub for global maritime trade. ISPS approval is mandatory for the
service of international vessels.
Recently, the port also obtained its navigational chart from the
National Hydrographic Office, which serves as an authoritative guide containing
safety information and other documents for ships.
DP World Nhava Sheva welcomes India Red Sea service with an inaugural call of M.V. FOLK Jeddah
DP World, a leading global
provider of smart end-to-end supply chain solutions welcomed the maiden call of
the vessel M.V. Folk Jeddah at its Nhava Sheva International Container Terminal
(NSICT). This maiden voyage marked the commencement of the India Red Sea
Service (IRS).
This new service will
strengthen connectivity between key ports in India and contribute to enhanced
trade flows across the Middle East. The IRS service’s port rotation
includes: Nhava Sheva, Mundra, Jeddah, and Salalah, providing vital links to
India’s two of the largest major ports to along its route.
By reducing transit time and
improving access to major ports, the new route will further support strong
trade link for bilateral trade between the Middle East and India, promoting
efficient movement of goods.
The Deendayal Port Authority
(DPA) in Kandla has achieved a significant milestone, surpassing 75 million
metric tons (MMT) in cargo handling in this fiscal till date. This remarkable
feat marks the fastest-ever achievement of such a milestone in India's maritime
sector, showcasing the port's efficiency and growth.
DPA Chairman congratulated all
stakeholders, port users, trade unions, port officials, employees, and workers
for their unwavering support and cooperation in making this achievement
possible. In addition to the record-breaking cargo handling, DPA also
welcomed the largest-ever container vessel to its berths.
The MV Mundra Express, with a
length of 350 meters and a capacity of 10,000 TEUs, signifies a major step
forward in enhancing India's maritime capabilities. The berthing of the
MV Mundra Express underscores Kandla Port's ability to handle larger vessels,
thereby boosting its competitive- ness and attracting more trade. This
achievement also reflects the port's ongoing efforts to modernize its
infrastructure and improve its operational efficiency.
As India’s largest port, Kandla
plays a crucial role in the country’s economic growth. The port’s recent
achievement demonstrate its commitment to excellence and its potential to
further contribute to India’s maritime sector.
The CMA CGM Group, a global
leader in shipping and logistics, has further strengthened its foothold in
India by inaugurating a new inland depot facility in Mundra, Gujarat.
The cutting-edge depot spans 4
hectares and was inaugurated by Mr Atit Mahajan (Managing Director, CMA CGM
India) and Mr Jean Vanmalle (Vice President, CMA CGM Inland Services ) in a
grand ceremony. The inauguration was also attended by key industry representatives,
local officials, and trade bodies.
This new inland container depot
(ICD) in Mundra is anticipated to enhance CMA CGM’s inland logistics
capabilities at Mundra Port, thereby, meeting international standards to cater
to the growing demands of customers.
The facility, with its
cutting-edge facilities, is expected to handle approximately 155,000
twenty-foot equivalent units (TEUs) annually. This strategic development aligns
with Mundra Port’s impressive growth trajectory, which saw a 34% volume
increase in the fiscal year 2023-24, reinforcing its status as one of India’s
largest and fastest-growing ports.
India, Russia discuss new initiatives for Northern Sea
Route
India and Russia last week
discussed a wide range of issues, including the training of Indian sailors for
polar navigation and joint projects for Arctic shipbuilding, at the first
meeting of their working group for cooperation on the Northern Sea Route, according
to a statement from the Russian side.
The decision to establish a
working group on the Northern Sea Route under the bilateral intergovernmental
commission on trade, economic, scientific, technical and cultural cooperation
was made during Prime Minister Narendra Modi’s summit meeting with Russian
President Vladimir Putin in Moscow in July.
The first meeting of the
working group, held in New Delhi on October 10, discussed several issues,
including targets for Indian and Russian cargo transit along the route, joint
projects for Arctic shipbuilding, and possible training of Indian sailors for
polar navigation, the Russian statement said.
The working group drafted a
memorandum of understanding between the governments of India and Russia for the
“development of cooperation in cargo shipping in the waters of the Northern Sea
Route”, the statement said.
The Northern Sea Route will
help India meet its requirements for coal, Liquified Natural Gas (LNG),
Fertilizers and other container cargo. Besides, Indian public sector companies
such as ONGC are invested in oil and gas assets in Sakhalain and Tomsk region
of Siberia.
The corridor can help them
bring equity oil to Indian ports instead of selling the same due to
transportation issue, the second official said.
/// Air Cargo News ///
Air Incheon becomes IATA member
Air Incheon has become the first cargo airline in the Republic
of Korea to obtain full membership of the International Air Transport
Association (IATA). The airline said it was awarded the certification on
October 8.
This follows the airline being awarded IATA Operational Safety
Audit (IOSA) certification on April 5, after passing an assessment evaluating
its operational safety and quality against international
standards. Seung-Hwan Lee, chief executive of Air Incheon, said: “We are
honored to officially become the sixth IATA member airline in South Korea.
This achievement is an important milestone in Air Incheon’s
growth and solidifies our commitment to providing world-class air cargo
solutions.
Starting from July 01, 2025, Air Incheon will also take over and
integrate Asiana Airline’s Cargo business.
In June, it was announced that Air Incheon had been named as the
preferred bidder for the sale of Asiana’s cargo business as part of Korean
Air’s acquisition of Asiana Airlines.
The airline expects the acquisition to expand its network in
both domestic and international cargo markets and the IATA membership to
support this expansion. “Air Incheon plans to successfully lead the integration
of Asiana’s cargo operation by 2024” said the airline.
DHL Express lights up diwali with up to 50% off for India's international shipments
DHL Express, the global leader in international express
services, is adding to the festive cheer of Diwali by offering customers
discounts on international and domestic outbound shipments.
This limited-time offer, valid until 02nd November,
2024, allows customers to share festive greetings and gifts with their loved
ones across the world while enjoying up to 50% off on international shipments
and up to 40% off on domestic shipments.
Visit express-resources.dhl.com/Diwali2024_DHLExpress.html to
receive the promotion code and avail the offer. As one of India’s most
widely celebrated festivals, Diwali, the festival of light, is an occasion for
families to come together and exchange sweets and gifts. DHL Express recognizes
the importance of togetherness during these times.
It aims to bring loved ones together despite being miles apart,
by providing customers with reliable and cost-effective shipping solutions.
Customers can enjoy up to 50% off on international shipments weighing between 3
kg and 25 kg; while a 40% discount is offered on domestic shipments weighing
between 2kg and 10kg. The offer is available at over 650 DHL Express service
points across India.
Cargolux renews partnership with Unilode
Luxembourg-based cargo airline Cargolux and Unit Load Device
(ULD) provider Unilode Aviation Solutions have renewed their longstanding
partnership. Cargolux first awarded the management of its ULD fleet to
Unilode in 2009.
Unilode, which now has a fleet of 172,000 ULDs, provides a
dedicated customer success management team based in Luxembourg, plus network
planning through its operations control centre in Bangkok. Maintenance and
repairs are undertaken at 50 Maintenance, Repair, and Operation (MRO)
facilities worldwide.
Unilode said its pooling concept and digital capabilities will
further support Cargolux through its new digital developments such as the E-ULD
app and customer portal.
Joep Brujis, Sr. VP Global Logistics, Cargolux said “Unilode’s
continuous support and ULD management expertise has played a pivotal role in
ensuring that Cargolux has the ability and agility to meet our everyday ULD
needs”.
Ross Marino, CEO Unilode added “We are delighted to extend our
longstanding partnership with Cargolux and their trust in Unilode team and our
services makes us extremely proud”.
Shippers told to delay air cargo tenders until after peak season turmoil
Air cargo shippers have been told they should delay their 2025
tenders until after what is expected to be a tumultuous peak season.
In a series of recommendations on how to manage current market
conditions, Xeneta chief airfreight officer Niall van de Wouw said companies
should make sure terms and conditions (T&Cs) are firmed up, avoid air hubs
sensitive to the e-commerce boom, take advantage of the lack of backhaul
demand, utilise data and delay tenders to avoid the upcoming peak season.
“Current market sentiment influences both sides of the
negotiating table and vendors will understandably use the peak season turmoil
to paint a gloomier picture for 2025,” he said on the latter point.
“Recency bias gives greater importance to the most recent event,
so both shippers and vendors discussing the market in 2025 are going to be
influenced by what is happening around them in the here and now.
“As long as you have your T&Cs in place, you can bide your
time and wait out the storm. The market may look very different in early 2025
and you will be much better placed to enter negotiations with clarity and
decisiveness”. On T&Cs, van de Wouw
said that if these are agreed and in place it will avoid “moving goalposts” and
allow both sides to work in partnership to navigate the expected peak season
storm.
“A storm is coming for the air freight market…”
Storm clouds are gathering as the air freight market heads
towards what is expected to be an extremely challenging year-end peak season,
according to the latest update from Xeneta.
"The storm has been building since Q42023 when a surge in
demand resulting from the Red Sea Crisis and massive growth in ecommerce in
China took shippers by surprise. Since then, the market has witnessed
spiralling freight rates in many Asian air cargo corridors – even during the
traditionally slacker summer period.
"The full force of the storm is yet to hit but global
dynamic load-factor – Xeneta’s measurement of capacity versus cargo flown - is
already four percentage points higher than 2023 with freight rates out of Asia
Pacific up 25-40 percent. When the storm arrives, there are serious concerns
whether air supply chains will be able to meet demand, leaving shippers in a
precarious position."
How will the storm hit?
In August, outbound China e-commerce trade value hit its second
highest level on record, falling just 7% short of the all time high of USD 8.7
Billion in December 2023 (Source : China Custom), the update added.
“E-commerce volumes out of China during the upcoming peak season
should be expected to set new records as consumers in the West look to the Far
East for low cost goods in the run up to Christmas and New Year.
“Meanwhile, conflict in Red Sea is still impacting ocean
container services, meaning the mode shift to air freight will remain and add
to the perfect storm”. With the expected
surge in Air freight rates, airlines will redeploy capacity to the most
profitable trades as Qatar Airways and Air France KLM have done recently by
cancelling flights to Latin America and putting them on Asian routes where
there is massive e-commerce demand.
“This will result in reduced capacity to and from Latin America
& Africa to the benefit of Asian markets, but to the detriment of shippers
on the secondary corridors where there will likely be an inflationary impact on
air freight rates”.
China's ecommerce giants revamp strategy to get round new US rules
The ecommerce titans are quickly adapting their business models
in the face of greater regulatory oversight and heavy competition.
Executive action, announced by the White House last month, to
tighten scrutiny of ecommerce and de minimis shipments has triggered
changes by Chinese platforms – although implementation of some new rules has
been delayed.
Law firm Sandler, Travis & Roseberg last week noted the plan
to reject “vague cargo descriptions” in Air Cargo Advance Screening submissions
would be postponed until 12 November.
US Customs & Border Protection (CBP) said it would extend
the ‘warning period’ – an email is sent pointing out ‘vague’ descriptions such
as “gift”, “parts” or “daily necessities”. After 12 November, the warnings stop
and shipments described like that will be rejected.
“This is a big revenue opportunity for Temu. Amazon earned $140
bn in fees from 3rd party sellers. It will be interesting to see how this plays
out, but one third party sellers. It’ll be interesting to see how this plays
out, but one thing is clear: increase competition in the 3rd party seller space
is a win for US SMB ecommerce retailers”.
The news comes as Temu, according to data from Earnest
Analytics, saw a 25% fall in shopper activity in August, compared with January.
Amazon, meanwhile is copying Temu’s strategy and is developing a direct to consumer from China option, as well as promoting its fulfilment by Amazon service, which it claims cost two-thirds less than deliver services.
I hope you have enjoyed reading the above news letter.
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
Branches :
Chennai, Bangalore, Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New
Delhi, Kolkatta, Cochin & Hyderabad.
Thanks to : Container News, Indian Seatrade & Air Cargo News.
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