JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Friday - November 29,
2024
Today’s Exchange Rates
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
84.49 |
0.029999 |
0.035518 |
84.45 |
84.46 |
84.45- 84.51 |
|
|
1.0549 |
-0.0017 |
-0.160886 |
1.0566 |
1.0566 |
1.0528- 1.057 |
|
|
106.8931 |
0.451797 |
0.424457 |
106.9602 |
106.4413 |
106.8545- 107.0256 |
|
|
88.995 |
0.183105 |
0.206172 |
89.1381 |
88.8119 |
88.9604- 89.2183 |
|
|
151.523 |
0.432999 |
0.286583 |
151.09 |
151.09 |
150.929- 151.951 |
|
|
1.2676 |
-0.0004 |
-0.031542 |
1.268 |
1.268 |
1.2645- 1.2683 |
|
|
106.367 |
0.282997 |
0.266767 |
106.161 |
106.084 |
106.102- 106.416 |
|
|
0.5562 |
-0.0012 |
-0.215278 |
0.5588 |
0.5574 |
0.5562- 0.5595 |
/// Sea Cargo News ///
The six workers unions at state-owned major ports have threatened to go on an indefinite strike from December 17 if the government fails to implement wage revision and a productivity linked reward scheme before December 15.
On September 27, the labour federations at
major ports deferred a planned strike after a settlement on revision of wages
and other service conditions including pensionary benefits was signed with the
Chairman, Bipartite Wage Negotiation Committee (BWNC) and the Managing
Director, Indian Ports Association in the presence of Regional Labour
Commissioner in Mumbai.
“Unfortunately, after having signed the settlement agreement, the management could not so far implement the settlement for reasons known to them alone,” the six workers federations said. The decision to resort to industrial action including indefinite strike from 17 December was taken at a meeting of the National Coordination Committee of the Port and Dock Workers held in Goa on November 23.
Benapole transport owners announce
indefinite strike, disrupting cross-border travel
The long-route transport owners of Benapole
have announced an indefinite strike starting Saturday morning, leading to
severe hardships for passengers on both sides of the border. Bablur Rahman
Babu, president of the Benapole Transport Association, said that a recent
meeting between local and transport authorities addressed the ongoing traffic
congestion in Benapole.
As a result of the congestion, authorities
ordered bus owners to relocate operations from the check post terminal to the
Kagoj Pukur terminal, located 4 kilometres away from Benapole, which has caused
significant inconvenience for travellers.
“In response to these changes, the Transport Owners Association has decided to halt all bus services between Dhaka and Benapole,” he added. For the past 20 years, buses traveling from Dhaka and Chattogram have been dropping passengers directly at the port’s checkpost terminal, with empty buses then parking at the terminal. However, recent changes now require these buses to drop passengers at a more distant terminal, causing security concerns and delays.
ZIM’s
financial recovery continues with strong Q3 results
ZIM President & CEO Eli GlickmanIsraeli ocean carrier ZIM has announced a net income of US$1.13 billion in the third quarter of 2024, while the company reported a US$2.27 billion loss in the same period last year.
Similarly, ZIM achieved EBITDA of US$1.53 billion in the third quarter, representing a year-over-year increase of 626% and operating income (EBIT) of US$1.23 billion, compared to an operating loss of US$2.28 billion in the third quarter of 2023.
Eli Glickman, ZIM President & CEO,
commented, “ZIM delivered strong third-quarter results, as we again achieved
record carried volumes contributing to our outstanding financial performance.
We are pleased to share our success with our shareholders and declare a special
dividend of US$100 million on top of the regular 30% of quarterly net income
dividend payout of US$340 million, for a total dividend of US$440 million, or
US$3.65 per share.”
“We’ve continued to see incremental benefits
from our strategic investment in our operated capacity as new larger, more
modern, cost-effective vessels join our fleet,” added Glickman.
Summary of Key Financial and Operational
Results
|
Q3-24 |
Q3-23 |
9M-24 |
9M-23 |
|
|
Carried volume (TEUs) |
970,000 |
867,000 |
2,768,000 |
2,496,000 |
|
Average freight rate (US$/TEU) |
2,480 |
1,139 |
1,889 |
1,235 |
|
Total revenues (in million US$) |
2,765 |
1,273 |
6,260 |
3,957 |
|
Operating income (loss) (EBIT) (in million
US$) |
1,235 |
(2,276) |
1,870 |
(2,457) |
|
Profit (loss) before income tax (in million
US$) |
1,133 |
(2,342) |
1,604 |
(2,678) |
|
Net income (loss) (in million US$) |
1,126 |
(2,270) |
1,591 |
(2,541) |
|
Adjusted EBITDA1 (in million
US$) |
1,531 |
211 |
2,725 |
859 |
|
Adjusted EBIT1 (in million
US$). |
1,236 |
(213) |
1,891 |
(373) |
|
Net income (loss) margin (%) |
41 |
(178) |
25 |
(64) |
|
Adjusted EBITDA margin (%) |
55 |
17 |
44 |
22 |
|
Adjusted EBIT margin (%) |
45 |
(17) |
30 |
(9) |
|
Diluted earnings (loss) per share (US$) |
9.34 |
(18.90) |
13.17 |
(21.19) |
|
Net cash generated from operating activities
(in million US$) |
1,498 |
338 |
2,600 |
858 |
|
Free cash flow (in million US$) |
1,454 |
328 |
2,470 |
791 |
|
|
SEP-30-24 |
DEC-31-23 |
|
|
|
Net debt (in million US$) |
2,698 |
2,309 |
|
|
Regarding the first nine months of the year,
ZIM’s total revenues have climbed to US$6.26 billion, primarily driven by both
an increase in freight rates as well as carried volume.
ZIM carried 2,768,000 TEUs during this period
with an average freight rate per TEU of US$1,889.
The company’s EBIT for the first nine months of
2024 was US$1.87 billion with the growth primarily driven by the
above-mentioned increase in revenues and the impairment loss recorded in the
third quarter of 2023. For the same period, ZIM reported a net income of
US$1.59 billion, while net cash generated from operating activities was US$2.6
billion, compared to US$858 million for the first nine months of 2023.
The Company increased its guidance for the full
year of 2024 and now expects to generate adjusted EBITDA between US$3.3 billion
and US$3.6 billion and adjusted EBIT between US$2.15 billion and US$2.45
billion.
ZIM’s boss stated, “Also contributing to our
strong Q3 was a decision we made earlier in the year to increase our exposure
to spot volumes in the Transpacific trade. A key differentiator for ZIM is our
commercial agility and we intend to continue to leverage this strength to
capitalize on market opportunities moving forward. Based on results that have
exceeded expectations to date and improved outlook for the fourth quarter of
2024, we have increased our full year 2024 guidance.”
Glickman concluded, “We will close out the year
with the final delivery of the remaining four out of 46 newbuild containerships
that we secured, which include 28 LNG-powered vessels. Entering 2025, we will
be operating a fleet that is both well-equipped to meet emissions reduction
targets and well suited to the trades in which we operate. Supported by our
declining unit costs, we believe ZIM is well positioned to deliver profitable
growth over the long term.”
Strategic
stockpiles and peripheral ports in Chinese trade mindset
Port of Lazaro CardenasStrategic inventories have a profound impact on
the shipping sector by influencing operations, logistics planning, and even the
configuration of global shipping routes.
As Container News reported,
Peter Sand, chief analyst at Xeneta, highlighted Mexico, Latin America, and the
Middle East as critical markets for China’s exports, pointing out that Chinese producers have been amassing “strategic stockpiles” to mask the origins of their goods in case tariffs are
implemented.
Ports that handle these strategic stockpiles
may witness heightened activity, requiring advanced logistical solutions to
manage greater throughput volumes. Additionally, the need for nearby
warehousing and storage solutions might stimulate infrastructure investments or
modifications in port logistics services to support longer storage periods.
ONE announces intra Europe trade SCX & IBC service revamp
Ocean Network Express is pleased to announce
the launch of SCX (Scandinavia Express) and IBC (Iberia
Europe) Services, tailored to enhance operational efficiency and schedule
reliability. These revamped services
reflect the commitment to optimizing their network and providing you with
reliable shipping solutions.
SCX (Scandinavia Express) – Service Rotation
Rotterdam - Gothenburg - Helsingborg - Aarhus - Copenhagen – Rotterdam.
IBC (Iberia Europe) – Service Rotation
Rotterdam - Leixões - Lisbon - London Gateway - Bremerhaven -Rotterdam.
Service Details and Launch Schedule
- SCX (Scandinavia Express): Relaunch
effective from M/V CPFT0018N/S.
- IBC (Iberia Europe): Relaunch effective
from M/V WGGT0066N/S.
Ocean Network Express is believes these
re-launches will significantly enhance their logistics planning and strengthen
their partnership.
Port of Los Angeles exceeds 900,000 container units
The Port of Los Angeles handled a record 905,026 Twenty-Foot Equivalent Units (TEUs) in October, a 25% increase over the previous year. It's the first time the Port has exceeded 900,000 TEUs for four consecutive months.
Ten months into 2024, the Port of Los Angeles has moved 8,491,420 TEUs, 19%
ahead of its 2023 pace.
"These robust, sustained volumes will likely continue in the coming months
with strong consumer spending, an early Lunar New Year, importer concerns about
unresolved East Coast labor issues and the possibility of new tariffs next year
that could drive up shipping costs," said Port of Los Angeles Executive
Director Gene Seroka.
"I'm grateful to our dockworkers, truckers, terminal operators and others
who handle these record levels of cargo every day. They have done it with
speed, efficiency and without a single ship backed up at sea," Seroka
said.
Mary E. Lovely, a Senior Fellow at the Peterson Institute of International
Economics, joined Seroka at today's media briefing. Lovely discussed the
potential impact of additional tariffs against products made in China and other
countries that are expected to be implemented by President-elect Donald Trump.
October 2024 loaded imports landed at 462,740 TEUs, a 24% increase compared to
the previous year. Loaded exports came in at 122,716 TEUs, a 1% increase
compared to 2023. The Port processed 319,570 empty containers, a 38% jump
compared to 2023.
/// Air Cargo News ///
The
Indian electronics sector is pushing for major expansions in airport cargo
handling to support a forecasted boom in device exports. According to the India
Cellular and Electronics Association (ICEA), India's existing airports are near
capacity, creating bottlenecks in export logistics.
ICEA
Chairman Pankaj Mohindroo highlighted delays in customs processing as a
significant issue, noting that in India, export take-off occurs on Day 2
compared to Day 1 in China. The industry also faces challenges with inadequate
cargo operations facilities at current airports.
With
electronics manufacturing expected to achieve USD 500 billion by 2030, airport
expansions and new infrastructure developments, such as Noida International
Airport and greenfield airports, are deemed essential. Strategies include tax
incentives and aviation fuel price rationalization to foster growth.
Land parcels examined for new Srikakulam airport
A
five-member team from the Airport Authority of India (AAI) visited Srikakulam
district to assess suitable locations for the proposed airport
construction. The airport initiative was initially proposed by chief
minister Nara Chandrababu Naidu during his recent district visit.
The
AAI delegation, headed by DGM Parvinder and accompanied by Malkit Singh, KP
Venkata Raman, Sunil Kumar, and Sheik Abdul Azeez, examined the land parcels in
five villages in Mandasa and Vajrapukotturu, that the district administration
had shown them.
Palasa
RDO Venkatesh and tahesildars Hymavathi (of Mandasa) and Sitarramaiah (of
Vajrapukotturu), joined the delegates and inspected several potential land
parcels in these mandals.
The
district officials reported that the team visited several villages including
Ganguvada, Betalapuram, Lakshmipuram, Bidimi in Mandasa mandal, and Anakapalli
and Onkuru in Vajrapukotturu mandal.
Delay in clearing imports hits India’s medical industry
Prolonged
delays in clearing imports of essential components has resulted in disruptions
in the manufacture of medical devices, people in the business said, adding that
this could affect the government’s Make-in-India scheme in the long run.
“Despite
full regulatory compliance, a lack of policy clarity among regulatory
authorities has led to stalled shipments, severely affecting production
timelines and jeopardizing health care services,” said a manufacturer of X-ray
device, requesting anonymity.
According
to the manufacturers of critical devices such as X-ray and C -Arm machines,
even though they are equipped with valid so-called MD- 9 certifications as
required under India’s Medical Devices Rules, they are encountering unexpected
demands for additional import licenses.
“It
is being sought for components such as flat panel detectors (FPDs), which is
contrary to the certification’s established scope as these components are
integral to manufacturing and not standalone devices,” said the manufacturer
cited above.
These delays have persisted for nearly three months, causing production disruptions, missed delivery deadlines and restricted availability of life saving diagnostic tools etc the manufacturers claimed.
ACIA
Aero Leasing, a leading provider of regional aircraft leasing and lease
management services, announced the sale of an ATR 72-500 LCD freighter (MSN727)
to Canadian regional airline, Air Creebec.
The
aircraft is the airline’s first ATR to be introduced to its fleet. The aircraft
will enter operations in December 2024, serving Air Creebec’s multiple cargo
contracts throughout Canada.
Originally
converted to a bulk freighter in 2021, the aircraft has been upgraded with a
Large Cargo Door (LCD) at Empire Aerospace, in Idaho, USA.
“We
welcome Air Creebec as a new customer and are delighted they approached ACIA
Aero Leasing for their first ATR. The Canadian market represents multiple
opportunities for the ATR platform across both passenger and cargo requirements
and we see strong potential to further strengthen our customer base in this key
market.
The
fact that we were able to reconfigure the aircraft from standard BFC to LCD
variant, incorporating the large cargo door, maintenance and paint in under 6
months, reaffirms our leadership in the market for ATR freighter solutions,”
commented Mark Dunnachie, SVP Commercial, ACIA Aero Leasing.
“We
are delighted to be taking delivery of our first ATR aircraft from ACIA Aero
Leasing. The LCD variant will afford us greater flexibility in our cargo
operations as we improve essential access to food and necessities to our remote
clients in the far North.
As
the main airline in our region, Air Creebec needs to provide innovative
solutions to our vast variety of clients. With our new LCD ATR72-500 from ACIA,
we are proud to be the pioneer and leader in cargo transportation in our area
and are very excited to further develop our expertise” commented the airline’s
President and CEO, Tanya Pash.
DHL
Express and Shell, one of the world's largest energy companies, have signed a
deal to drive sustainable air freight at Brussels Airport. The 1-year deal
includes the delivery of 25 kt SAF into Brussels via pipeline to the airport.
The
SAF used is certified according to ISCC’s voluntary certification system
"ISCC Plus" and is expected to reduce GHG by 80 kt CO2e versus fossil
jet-fuel. It is produced in a fossil refinery by replacing fossil crude oil
with renewable feedstocks (co-processed SAF) and will be used to offer DHL
Express customers emission reduced air transportation services via DHL GoGreen
Plus.
"Our
customers benefit from our continuously increasing SAF coverage across
different regions, now including our investment in SAF at Brussels Airport.
Beside efficiency improvements, SAF is currently the most important way to
reduce GHG emissions in air transport.
Customers
can actively contribute to making their supply chains more sustainable by using
our GoGreen Plus service based on SAF", says Travis Cobb, EVP Global
Network Operations and Aviation at DHL Express.
"Our
collaboration with DHL at Brussels Airport reflects a joint commitment to
reduce emissions from air freight specifically, and across the entire aviation
value chain. Working together not only complements their efforts but also helps
advance our shared ambitions for a net-zero future.
By
supplying SAF, we are equipping the industry – and our customers – with low
carbon solutions that will support the transition toward sustainable
aviation", says Raman Ojha, President at Shell Aviation.
Insetting
through DHL Go Green Plus enables customers to reduce their Scope 3 emissions -
the indirect GHG emissions generated in a company's value chain, including
downstream transportation and distribution.
In
contrast to offsetting initiatives, DHL GoGreen Plus (insetting) reduces GHG
emissions within the logistics sector and can therefore be used by DHL
customers for voluntary emissions reporting based on the "book and claim
approach".
DHL
has set itself the goal of reducing all logistics-related emissions to net zero
by 2050. The GoGreen Plus service is designed to help achieve this goal. It
contributes to the interim target of using 30 percent SAF for all air
transportation by 2030.
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 1Branches : 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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