JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Saturday - April 05,
2025
Today’s
Exchange Rates
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
85.23 |
-0.219994 |
-0.257453 |
85.05 |
85.45 |
84.9475- 85.34 |
|
|
1.1017 |
-0.0035 |
-0.316694 |
1.1052 |
1.1052 |
1.0965- 1.1108 |
|
|
110.714 |
-1.806305 |
-1.605315 |
111.3482 |
112.5203 |
110.5917- 111.6071 |
|
|
93.6427 |
-0.602303 |
-0.639082 |
94.4295 |
94.245 |
93.542- 94.518 |
|
|
145.473 |
-0.58699 |
-0.401883 |
146.06 |
146.06 |
144.553- 146.551 |
|
|
1.2985 |
-0.0115 |
-0.877863 |
1.31 |
1.31 |
1.2963- 1.3114 |
|
|
102.51 |
0.438004 |
0.429112 |
101.985 |
102.072 |
101.54- 102.641 |
|
|
0.5824 |
-0.0019 |
-0.325168 |
0.5849 |
0.5843 |
0.5818- 0.5859 |
/// Sea Cargo News ///
US, China increases stakes in Panama Canal ports row
China's fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say.
Hong Kong conglomerate CK Hutchison this
month sold 43 ports in 23 countries -- including operations in the vital
Central American canal -- to a group led by giant asset manager BlackRock for
$19 billion in cash.
After two weeks of rhetoric, Beijing hardened
its response on Friday and confirmed that antitrust regulators will review the
deal, likely preventing the parties from signing an agreement on April 2 as
planned. Speaking before the review was announced, experts told AFP that
the deal allowed US President Donald Trump to claim credit for "taking
back" the canal as part of his "America First" agenda.
The US created a political issue at China’s
expense and then has been able to declare victory and that doesn’t feel good in
Beijing” said a former US Diplomat. Some of the ports being sold are in nations
that participate Beijing’s Belt and Road Initiative (BRI) – a global
development framework championed by Chinese President Xi Jinping.
Jet Geng, a Senior Partner at the Beijing
office of law firm Dentons, said China’s antitrust laws can be applicable
outside its borders, similar to those of the US and EU. Once a deal meets
China’s reportability threshold, a declaration is required even if the
transaction takes place abroad, as long as the parties involved had substantial
operations in mainland China, he said.
Firms that fail to declare may be fined for
up to 10% of their operating income from the preceding year, Deng added. Hung
Ho-fung, a political scientist at Johns Hopkins University, said Beijing risks
spooking “cautious” foreign firms that have already lowered their business
exposure in Hong Kong. If the deal crumbles under Chinese pressure, people may
believe that Hong Kong is converging with mainland China where “ national
security considerations are of utmost importance in any business deal”, Hung said.
Maersk not concerned by Trump hostility to green fuels for ships
Maersk’s environmental agenda will be driven
by customers over administrations, amid the increasing uncertainty surrounding
government commitments, particularly the US Trump administration, to green
policies.
At an event marking the launch of Maersk’s
latest dual-fuel vessel, Adrian Maersk, chief commercial officer
Karsten Kildahl said: “We are not so concerned by what an administration says,
rather we have made our focus the concerns of our customers.”
He added: “The fact is we have plenty of
customers who buy green fuel, Nike in the US for instance, and we can use these
fuels on the transpacific routes, although we are not doing so
presently”. Echoing Mr Kildahl, the carrier’s president of its North
America region, Charles van der Steene, said the challenge in the US was
“uncertainty”.
But, he added:” This has been the rule for
the last decade, and if you look at this space the customers we have are
unwavering in their commitment to green. Regardless of the political
environment, the green transition is still heavily progressing”. Asked whether administration hostility to
certain fuels could put the Gemini Cooperation hub and spoke model at risk, by
reducing access to methanol, Mr. Kildahl said it was not an issue.
He explained : “ On the Europe-Asia rotation,
we can bunker in Rotterdam, sail to China and then on to Singapore, where we
top up to get back to Europe”. Added to
this, Mr. Van Der Steene said, regardless of the administ ration, Maersk
remained confident it would be bunkering green fuels in the US, and stressed
the level of commitment from customers on this front.
Tighter EU import requirements proving 'a challenge' for forwarders
“Stricter Customs regulations” from the EU’s
ICS2 will see “stricter enforcement”, Hapag-Lloyd has warned, and European
forwarders “have encountered significant challenges”.
From April 01, the EU is ramping-up its
Import Control System 2 (ICS2) – an advance cargo information system designed
to improve supply chain security – on requirements for all non-EU
imports. It will become mandatory for all house-level filers (freight
forwarders, importers, ground handling agents, etc) to connect to ICS2 and
submit entry summary declarations (ENS), filings for shipments they
handle.
The pre-arrival Customs process will also now
apply to all transport modes, including road and rail, in addition to the
existing air, maritime, and inland waterway requirements.
Nicolette van der Jagt, Director General of
Forwarder’s Association CLECAT said, European freight forwarders has
“diligently prepared”. “ However, she added, “despite preparation, freight
forwarders have encountered significant challenges”. Technical complexities have posed
considerable obstacles, particularly regarding system integration and
compatibility with new ICS2 requirements. The level of support from national
authorities help desks has often been insufficient, or delayed, complicating
efforts for timely compliance.
IMO releases interim guidelines for ammonia-fuelled ships
The International Maritime Organization
(IMO) has released interim guidelines (MSC.1/Circ.1687) for the safety of
ships using ammonia as fuel, marking a key step in regulatory support for
alternative fuels.
Finalised by the CCC Sub-Committee and
approved at the Maritime Safety Committee (MSC) 109, the guidelines provide
goal-based provisions, with room for future updates. The Baltic and
International Maritime Council (BIMCO) has actively contributed and
continues to support the safe adoption of alternative fuels
for sustainable shipping.
The interim guidelines provide a goal and
function-based safety framework covering ship design, equipment,
operations, bunkering, toxicity mitigation, and crew protection. While
non-mandatory, the guidelines align with the IGF Code and SOLAS principles,
providing a consistent reference for ammonia-fuelled projects.
They aim to ensure ammonia-fuelled systems
match the safety and reliability of conventional oil engines, addressing
ammonia’s hazards like toxicity controls and emergency systems, as operational
experience grows.
Recently, the IMO announced that it is
developing a comprehensive strategy to leverage emerging technologies and drive
efficiency, safety and sustaina-bility in the shipping industry.
Panama deregisters 107 sanctioned vessels from its Registry
The Panama Maritime Authority (PMA) has
officially deregistered 107 Panamanian-flagged vessels listed under
international sanctions, according to Consulate General of the Republic of
Panama. An additional 18 vessels are currently undergoing the deregistration
process.
This action follows Executive Decree No. 512
of October 18, 2024, which grants the PMA the authority to unilaterally cancel
the registration of vessels, registered individuals, and shipowners that appear
on international sanctions lists issued by OFAC, the European Union, and the
United Kingdom.
Historically, the deregistration of vessels
involved in illicit activities took approximately three months under the
General Merchant Marine Law (Law No. 57), Article 49. Executive Decree No. 512
was enacted to expedite this process, enabling the immediate deregistration of
ships whose owners or vessels appear on the specified international sanction
lists.
The Panamanian Government aims to prevent sanctioned vessels and shipowners from operating under its flag while respecting maritime mortgages and the legal rights of involved parties.
The Panama Maritime Authority (PMA) has
officially deregistered 107 Panamanian-flagged vessels listed under
international sanctions, according to Consulate General of the Republic of
Panama. An additional 18 vessels are currently undergoing the deregistration
process.
This action follows Executive Decree No. 512
of October 18, 2024, which grants the PMA the authority to unilaterally cancel
the registration of vessels, registered individuals, and shipowners that appear
on international sanctions lists issued by OFAC, the European Union, and the
United Kingdom.
Historically, the deregistration of vessels
involved in illicit activities took approximately three months under the
General Merchant Marine Law (Law No. 57), Article 49. Executive Decree No. 512
was enacted to expedite this process, enabling the immediate deregistration of
ships whose owners or vessels appear on the specified international sanction
lists.
The Panamanian Government aims to prevent sanctioned vessels and shipowners from operating under its flag while respecting maritime mortgages and the legal rights of involved parties.
Trump tariffs: Lower airfreight demand and
China de minimis end date set
Donald
TrumpLast
night saw US president Donald Trump reveal a slew of new tariffs and also
confirm the date from which Chinese goods will no longer benefit from the
de minimis exemption. In what the president has dubbed ‘liberation day’, Trump
announced a universal 10% tariff on imports into the country, while certain
nations are subject to higher levels.
A
chart highlighting the tariff changes on a country-by-country basis showed that
imports from China would be subject to tariffs of 34%, the European Union 20%,
Vietnam 46% and Taiwan 32%. These are due to come into force on 9 April while
the universal tariffs are due on 5 April, giving countries little time to
negotiate with the US.
According
to forwarder Flexport, China's tariffs are on top of section 301 tariffs, the
20% tariff implemented in early March, and baseline US tariffs.
Last week, the Trump administration also announced a 25% tariff on autmobiles that starts today, along with a 25% tariff on automobile parts due to come into force in May. He has also previously implemented a 25% tariff on all Canadian and Mexican imports that are not covered by the North American free-trade agreement.
Market
analyst Xeneta said it is not expecting the tariffs to result in an immediate
jump in airfreight rates but could result in demand decreases as a result of
lower consumer demand due to higher prices.
Niall
van de Wouw, Xeneta chief airfreight officer, said: “We saw an uptick in
air cargo rates from China and Europe to the US at the end of March but nothing to
set alarm bells ringing. The more likely scenario is a decrease in air cargo
rates if tariffs result in higher prices and lower consumer demand.
“We
could also see lower demand for US exports if there is growing anti-US
sentiment across consumers in regions hit by the tariffs. Consumer sentiment
has the potential to be even more powerful than tariffs.
“We
should also consider there will be more capacity added to these trades in the
coming weeks as airlines start summer schedules, which will also put downward
pressure on rates.”
According
to Xeneta figures, air cargo spot rates currently stand at $4.16 per kg from
Shanghai to US, down from the peak season high of $5.75 per kg in the week
ending 10 November. Spot rates from western Europe to the US stand at $2.16 per
kg, down from the peak season high of $3.51 per kg in the week ending 15
December.
US
retailers are expecting the tariffs to hit US consumers' spending power and
warn the sudden implementation will create issues. “Tariffs are a tax paid by
the US importer that will be passed along to the end consumer,"
said National Retail Federation executive vice president of government
relations David French. "Tariffs will not be paid by foreign countries or
suppliers.
“Even
more so, the immediate implementation of these tariffs is a massive undertaking
and requires both advance notice and substantial preparation by the millions of
US businesses that will be directly impacted."
De
minimis update
Amongst
the various executive orders issued by the White House yesterday was an update
on the end of the de minimis exemption for imports from China.
The
US had tried to end the exemption that allows packages worth less than $800 to
enter the country tariff-free and with minimal customs scrutiny in February.
But
the country was forced to
backtrack on its plans when it became
clear customs did not have the systems in place to process the millions of
packages that arrive from China every day.
However,
the White House yesterday issued an update, saying that it planned to remove
the exemption for China packages from 2 May. Packages that are sent through
international postal networks will be subject to a different set of duties than
those that are sent by other modes of transport.
"Imported
goods sent through means other than the international postal network that are
valued at or under $800 and that would otherwise qualify for the de
minimis exemption will be subject to all applicable duties, which shall be
paid in accordance with applicable entry and payment procedures,” the White
House said.
"All
relevant postal items containing goods that are sent through the international
postal network that are valued at or under $800 and that would otherwise
qualify for the de minimis exemption are subject to a duty rate of
either 30% of their value or $25 per item (increasing to $50 per item after
June 1, 2025).
"This
is in lieu of any other duties, including those imposed by prior orders.”
The
different rules depending on how items are sent is likely to differentiate
between small-scale shippers and e-commerce giants such as Shein and Temu which
have such large volumes that they are able to charter aircraft and create
direct commercial agreements with airlines to move their goods.
The
impact of the removal of the de minimis exemption on e-commerce volumes, which
has helped fuel a boom in air cargo in recent years, is debated.
Some
are expecting it to have a large impact on the market, while others argue that
the goods are so cheap anyway that adding a
few extra dollars on top won't make too much of a difference.
Others,
however, say the need for customs to process packages will slow delivery times
and make the overall proposition less attractive to consumers.
There
are also expected to
be changes to e-commerce supply chains, with Chinese firms utilising a more
traditional distribution setup, with warehouses in the US to store goods and an
increased use of ocean shipping.
They
could also export from countries that are still able to benefit from the de
minimis exemption or go through Mexico and Canada.
Shipping
upside
While
the latest developments are likely to be a blow to air cargo demand
expectations, there is one geopolitical development that is expected to result
in increased volumes if it is implemented.
The
Office of US Trade Representatives (USTR) has proposed a fee ranging from
$500,000 to $1.5m per US port call by any Chinese carrier, Chinese vessel, or
other carrier that has Chinese vessels as part of their global fleet.
Ocean
container carriers are expected to try and avoid the fees by calling at fewer
ports, which could cause major congestion and delays to the US.
Xeneta's
van de Wouw said: “The proposed fees on Chinese vessels and carriers
entering US ports could have a more significant impact if congestion in ocean
container supply chains causes shippers to move more goods by air.
“With
around 98% of the world’s goods transported by ocean, it doesn’t take much of a
percentage shift to have major implications for air freight, as we saw during
Covid-19 and the Red Sea crisis.”
DHL boosts pharma logistics with
CRYOPDP acquisition
CRYOPDPDHL
Group has acquired 100% of specialist pharma courier CRYOPDP
from Cryoport and signed a strategic partnership with Cryoport to
strengthen supply chain service offerings for the global life sciences and
healthcare sector.
CRYOPDP
specialises in providing white-glove logistics services for clinical
trials, biopharma, and cell & gene therapies. With operations in 15
countries, CRYOPDP handles over 600,000 shipments per year, serving customers
and patients in over 135 countries worldwide.
The
acquisition is expected to help strengthen DHL Group’s established life
sciences and healthcare business, which generated over €5bn in global
revenue in 2024.
DHL
Supply Chain now aims to further build the potential of its pharma specialised
network solution by leveraging the specialty courier expertise of CRYOPDP and
the global air capabilities of DHL Express and DHL Global Forwarding.
The
acquisition aligns with DHL Group’s Strategy 2030, which emphasises the
importance of temperature-controlled networks, first and last mile specialty
courier coverage and integrated solutions.
Additionally,
the strategic partnership with Cryoport will bring together DHL’s global health
logistics capabilities with Cryoport’s expertise in providing specialised
solutions in a fast-growing life science and healthcare market segment.
It
also deepens DHL’s relationship with all the Cryoport business units with
respect to specialized pharma, said DHL.
For
Cryoport, the partnership with DHL will enable it to better execute its
business in EMEA and APAC with a stronger focus on its core business in these
regions, creating even greater opportunities to offer highly targeted, top-tier
services in answering market demand for its services and products.
Oscar
de Bok, chief executive of DHL Supply Chain, stated: “The acquisition of
CRYOPDP is a pivotal move for our supply chain business as we aim to expand our
Pharma Specialized Network to meet the evolving needs of clinical trials,
biopharma and cell & gene therapies, in addition to further increasing our
footprint in the conventional pharma and life science healthcare segment.
"The
acquisition of CRYOPDP and the extended partnership with Cryoport Inc. will
enable us to deliver integrated end-to-end solutions, enhancing our service
capabilities.”
Jerrell
Shelton, chief executive of Cryoport, commented: “We are indeed pleased to
build on our trusted relationship with the DHL Group. Working together we will
bring an enhanced set of supply chain solutions to meet companies’ and
patients’ critical supply chain needs.
"This
strategic partnership taps into the strong expertise of DHL’s Supply Chain and
CRYOPDP, presenting a substantial opportunity for Cryoport to further expand
its reach to global growth markets such as Asia Pacific (APAC) and Europe,
Middle East and Africa (EMEA).”
The
deal and the outlined partnership are subject to regulatory approvals.
IAG
Cargo looks ahead to additional capacity to Asia and the Americas
IAG
Cargo shipments loading on aircraft. Photo IAG CargoIAG
Cargo is hoping to benefit from the addition of new flights to Asia, North
America and South America as part of the airline group’s summer schedule.
The
cargo division of the IAG Group said a major highlight of the summer schedule -
running from April to October - was the return of daily flights to Kuala Lumpur
from Heathrow, which are due to start on 1 April utilising Boeing 787-9
capacity.
Meanwhile,
the group will also reinstate three-times-weekly services to San Francisco,
operating from both Madrid and Barcelona. Capacity across North America will
“grow significantly”, including the return of flights to Denver from Dublin as
well as additional services on routes such as Chicago, Vancouver and Washington
from Heathrow.
In
Latin America, services to Rio de Janeiro from Madrid will increase from four
to six flights per week, ”supporting growing demand in the region”. Asia
Pacific and Middle East networks will benefit from increased frequencies from
Heathrow to Doha, up from seven to 12 flights per week, while services between
Tokyo Haneda and Heathrow will grow from 10 to 14 weekly flights.
Camilo
Garcia Cervera, chief sales and marketing officer, IAG Cargo, said: “Our
summer 2025 schedule delivers capacity growth across key global markets. We are
particularly pleased to restart flights to Kuala Lumpur, Denver and San
Francisco, whilst increasing capacity into North America, Latin America, and
Asia Pacific. “Whether we are transporting electronic chips, pharmaceuticals or
perishable items via our wide range of specialist transportation
solutions."
In
total, IAG Cargo offers capacity on over 600 weekly widebody services from
London. Dublin serves as a key transatlantic gateway with more than 80 weekly
widebody rotations. Madrid and Barcelona provide over 240 weekly wide-ody
connections to North America, Latin America and the Caribbean.
Turkish Cargo returns to Maastricht
Turkish
Cargo is adding a new freighter flight to Maastricht Aachen Airport to
capitalise on the speed at which cargo can move through the facility.
The
flights will operate on a rotation of Quito, Miami, Maastricht, Istanbul twice
per week using one of the airline’s Boeing 777 freighter aircraft. The flights
are expected to carry flowers, other perishable goods and general cargo.
The
airline last operated flights to the airport in September 2024.
The
airport said its Authorized Economic Operator (AEO) status allows for
goods to move faster through its customs, due to the strict security procedures
and requirements in place.
Maastricht
added that it was known for its ability to move flower shipments to
the world’s largest flower auction in Aalsmeer, which is as quick as
Amsterdam Schiphol Airport.
Due
to Maastricht’s location directly next to the highway, and minimal dwell times,
flowers are being trucked within two hours after landing at the airport.
“Our
specialized in-house cargo hub was chosen for its fast and efficient service, a
one-stop shop model that bolsters our handling capacity and customised
provisions,” said Dean Boljuncic, head of commercial development at Maastricht.
“Our
customer-orientated approach along with our cooperation and operational
excellence are qualities that we pride ourselves in and we are proud that these
qualities have encouraged Turkish Cargo to rejoin,” he added.
The
airport also pointed out that it has no slot restrictions and expects to
“maintain steady cargo volume growth this year".
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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