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 - July 28, 2025
Today’s Exchange Rates
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/// Sea Cargo News ///
Wan Hai 503 remains under tow off India
The burned-out boxship Wan Hai
503 remains under tow and awaiting a confirmed port of refuge,
according to Indian shipping authorities. When - Wan Hai 503 suffered
a cargo explosion and fire off Kerala on June 9, few expected that the salvage
effort for the small container ship would be so protracted.
The fire burned through almost all cargo bays forward of the deckhouse, leaving only smouldering wreckage - and the last hot spots have still not been fully extinguished.
39 days later, small amounts of gray
smoke and elevated temperatures in Bays 33-37 suggest that pockets of
smouldering material remain, though the situation is contained and under
control. Temperature readings in the holds suggest a cooling trend.
Sanmar Group enters VLCC market
Chennai-based Sanmar Group has taken its
first step into the VLCC segment, acquiring the 321,000 dwt Maran
Canopus from Greece’s Angelicoussis Shipping Group in a deal valued by
brokers as between $48m and $50m.
The 2007-built Daewoo Shipbuilding tanker
has been renamed Sanmar Herald. This milestone reflects Sanmar’s steady
fleet expansion strategy. A few years ago, the privately owned tanker operator
committed to growing its fleet to 20 ships.
Since then, the fleet has expanded from
10 to 16 vessels, including LR and MR tankers and two liquefied ethylene gas
(LEG) carriers. The company also established a Singapore base to boost its
foreign-flag operations and global reach.
The Sanmar Herald purchase
stands out against a comparable transaction this week: Korea Asset Management
Corp sold the 307,000 dwt Atlantic Loyalty, a 2007-built Chinese VLCC, for
approximately $44m.
Analysts attribute the USD 4 Million
premium for Sanmar Herald to its Korean build quality and the
absence of an immediate dry dock, unlike its Chinese built counterpart which is
due for docking in October.
Chinese shipyards' market share drops from 72% to 52% amid USTR concerns
"In the first half of 2025, China’s share of newbuilding contracting fell to 52% from 72% in the previous six months. Growing concerns over USTR port fees on Chinese ships in US ports likely contributed to a decrease in contracting in China.
This trend was further amplified by a
drop in global ship contracting and a shift in the types of ships being
ordered,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO. USTR
port fees, set to take effect in October 2025, will impact both Chinese owners
and operators, as well as ships built in China.
Smaller Chinese-built ships will be
exempted from fees, depending on sector-specific criteria, along with
exemptions for short haul voyages. Global newbuilding contracting in terms of
Compensated Gross Tonnage (CGT) dropped 54% y/y during the first half of 2025.
Contracting slowed significantly for bulkers, tankers and gas carriers amid
weaker freight rates. Container and cruise ships were the only large sectors
where contracting expanded.
China holds a leading position in the
global shipbuilding industry, absent only from the cruise ship sector. In 2024,
gas carriers were the only sector where China came second to South Korea.
However, so far this year, South Korea has also surpassed China in crude tanker
shipbuilding.
Yang Ming books LNG-fuelled boxship series at Hanwha Ocean
Taiwanese shipping line Yang Ming Marine
Transport has lined up a series of containership newbuilds at South Korean
shipbuilder Hanwha Ocean, continuing its fleet renewal programme with a focus
on dual-fuel technology.
The company has booked seven LNG
dual-fuel 15,500 teu vessels in a deal valued between $1.36bn and $1.53bn, with
delivery scheduled in 2028 and 2029. The move follows a previously stated
plan to bring in as many as 13 new vessels ranging from 8,000 to 15,000 teu.
In March, Yang Ming signed a separate
agreement with Shoei Kisen for three 8,000 teu methanol dual-fuel-ready ships,
also due for delivery in 2028–2029.
Yang Ming, currently ranked 10th globally
among liner operators and second in Taiwan after Evergreen, operates a fleet of
around 100 ships.
Five LNG dual-fuel 15,500 teu ships from
HD Hyundai Heavy Industries are already on order, with delivery beginning in
2026.
“The adoption of dual-fuel solutions for
the 15,000TEU vessels, alongside the five LNG dual-fuel containerships
scheduled for delivery beginning in 2026, will ensure stable service on East
West routes while achieving a 20% reduction in GHG emissions compared to
traditional fuel,” the company said in a statement.
MSC orders 3+3 LNG dual-fuel 22,000 TEU container vessels
Mediterranean Shipping Company (MSC), the
world’s largest container shipping line, has placed a firm order for three plus
three optional 22,000 TEU LNG dual-fuel container vessels at CSSC Haizhong
Industrial’s Nantong (Haimen) yard, with a total contract value exceeding USD
1.2 billion.
Haizhong Industrial is a wholly owned subsidiary of China Merchants Industry Holdings, specializing in the design, construction, and repair of high-end offshore and green vessels. Its core portfolio includes FPSOs, large-scale LNG carriers, PCTCs, and luxury cruise ships.
In recent years, the yard has delivered several world-first innovations in methanol dual-fuel propulsion and LNG shipping technologies. This new order marks Haizhong Industrial’s first entry into the ultra-large container vessel (ULCV) segment, a milestone for the yard’s development. Industry insiders report that the firm order for three ships is scheduled for delivery in 2027, with three additional options included in the contract.
China threatens to block Panama Ports deal unless COSCO gets a stake
China is threatening to block the
sale of more than 40 ports, owned by Hong Kong-based CK Hutchison, to
BlackRock and Mediterranean Shipping Company (MSC) if Chinese shipping
company Cosco does not get a stake, the Wall Street Journal reported on
Thursday, citing unnamed sources.
CK Hutchison, MSC, BlackRock and Cosco
did not immediately respond to Reuters’ requests for a comment, while the
Chinese government could not be immediately reached outside office hours.
Chinese officials have told BlackRock,
MSC and Hutchison that if Cosco is left out of the deal, Beijing would take
steps to block Hutchison’s proposed sale of the ports, the newspaper
said.
Tycoon Li Ka-shing’s CK Hutchison in
March announced it would sell its 80% holding in the ports business, which
encompasses 43 ports in 23 countries. The business has an enterprise value of
$22.8 billion, including debt.
After much scrutiny and criticism in
China, Hong Kong conglomerate CK Hutchison confirmed in May Italian billionaire
Gianluigi Aponte’s family run MSC, one of the world’s top container shipping
groups, was the main investor in a group seeking to buy the ports. BlackRock,
MSC and Hutchison are open to Cosco taking a stake, WSJ said.
However, the parties would likely not
reach a deal before a previously agreed upon July 27 deadline for exclusive
talks between BlackRock, MSC and Hutchison, the report added.
The proposed sale has also drawn the
attention of U.S. President Donald Trump, who has repeatedly expressed his
desire to reduce Chinese influence around the Panama Canal and termed the deal
a “reclaiming” of the waterway after it was first announced.
PSA Antwerp joins Zero Emissions Port Alliance
PSA Antwerp has become the latest
container terminal operator to join the Zero Emissions Port Alliance, an
organisation that seeks to accelerate container terminals’ journey towards net
zero.
Launched by DP World and APM Terminals at
COP28 in 2023, Zepa brings together terminal operators, equipment manufacturers
and ports to encourage the adoption of battery-powered container handling
units. PSAA said it is “evaluating” fully electric straddle carriers as a
way to decarbonise its operations.
PSA Europe, Mediterranean and Americas
sustainability head, Francis De Ruytter, said straddle carriers were
responsible for “the vast majority of our direct emissions in Belgium”.
But PSA Belgium managing director Edward
Tah said: “Equipment from different manufacturers often lacks full
interoperability, and there are very few standardised charging infrastructure
solutions available.
“On top of that, battery-electric port
equipment requires significant investments. Through this alliance, we aim to
accelerate the transition by working closely with other front-runners to scale
up zero-emission equipment. The unique collaboration across the entire value
chain – from terminals to manufacturers and ports – is key to making this
possible”.
PSAA said it aims to halve its carbon
emissions by 2030 on 2019 levels and achieve net zero operations by 2050.
China State Shipbuilding signs for newcastlemax newbuilds
CSSC Shipping has moved to bolster its
dry bulk portfolio with a pair of newcastlemax newbuilds. The Hong
Kong-listed leasing arm of state-owned China State Shipbuilding Corporation
(CSSC) has struck a deal for the 210,400 dwt units with Qingdao Beihai
Shipbuilding and China Shipbuilding Trading.
Each vessel is priced at RMB528m
($73.5m), with deliveries scheduled by December 2027 and March 2028. The ships
will be taken on by two of CSSC’s special-purpose vehicles, Fortune Propulsion
and Fortune Prosperity.
CSSC Shipping, which is listed with more
than 30 bulkers, stated the transactions will enable it to optimise its fleet
profile. As all parties involved in the transaction fall under the CSSC group
umbrella, the deal remains subject to approval by independent shareholders, the
company said in a filing.
BYD decided at some point in recent years
that it would be more economical for it to buy some giant car-carrying ships
than to keep paying shipping companies to carry its cars to markets around the
world.
We covered BYD’s movement in this
direction in December 2023, and then again in January 2024 when it started
shipping its electric vehicles to export markets on Explorer No. 1. But,
as with many things, BYD grows fast. A few months ago, we covered BYD launching
its 6th car-carrying vessel. Now, BYD has just launched its
7th! BYD Zhengzhou is the name of this 7th vessel.
Like other vessels, it can carry up to
about 7,000 cars at once. Naturally, Zhengzhou, in the Henan province, is the
home of one of BYD’s largest production facilities. That is how BYD has been
naming its vessels lately.
The names of all BYD’s ships are : 1) BYD
Explorer No. 1, 2) BYD Hefei, 3) BYD Changzhou, 4) BYD
Shenzhen, 5) BYD Xi’an, 6) BYD Changsha
and 7) BYD Zhengzhou.
BYD has reportedly delivered more than
70,000 new energy vehicles around the world via its vessels now. “The cargo
ship was built by Guangzhou Shipyard International Co. Ltd and is a sister ship
to the BYD Hefei.
It is not surprising that BYD has
launched so many car carrying ships in just a year and half. The company’s
sales have been growing like grass in summer in Florida. Year over year, BYD
sales were up 42.5% in June, and in the first six months of the year, they were
up by 31.5%.
That’s after sales were up significantly
in 2024, too. The company delivered 2.146 Million vehicles in the first half of
the year, and while most of those were in China, more and more are abroad. As I
wrote two weeks ago, “BYD’s vehicle deliveries outside of China reached 90,049
units in June”.
Boeing moves forward on 777-8F with wing spar milestone
American
aircraft manufacturer Boeing has begun work on its next-generation widebody
freighter, the Boeing 777-8F, which is expected to enter service in 2028. The
company announced that it has completed the first spar, the long load-bearing
beam that forms a critical support structure, for the 777-8 freighter’s wing.
It said
that the team has also produced skin panels and stringers for the wings, which,
along with the spars, provide strength and shape to the wing structure. For the
777-8F, wing spars measure more than 100 feet (30.5 metres) long.
Boeing
and its key suppliers, including Mitsubishi Heavy Industries, Kawasaki Heavy
Industries, and Subaru, have begun producing major assemblies for the 777-8
freighter, supporting its planned first delivery in 2028.
“We’re
excited to be building wings for the new freighter and see this program
succeed,” says Dan Truong, process center leader. “I’m looking forward to
seeing the airplane fly, knowing we contributed.” A skin panel for the first
777-8 Freighter’s wing in the Composite Wing Center. (Marian Lockhart photo)
Engineers have completed more than 80% of the drawings that define the
configuration of the 777-8 freighter and are continuing the detailed design of
its systems and components.
The
manufacturer also mentioned that teams are testing systems in laboratories to
demonstrate that they perform as intended. Notably, progress on the Boeing
777-8 freighter was earlier highlighted by John Perdoch, Director, Product
Marketing Freighters at Boeing, in a panel discussion with The STAT Trade Times
during Air Cargo Europe and transport logistic 2025 in Munich.
He said
Boeing has begun producing major composite structures for the aircraft’s first
wings, with the first flight targeted for 2026. “The design phase is virtually
complete, and our supply chains are on board,” Perdoch said. The 777-8F offers
a payload capacity comparable to those aircraft, while delivering 30% lower
fuel consumption and emissions, 25% improved operating costs per tonne, and a
60% reduction in noise footprint.
“Customers
have a definite preference to choose Boeing – Boeing’s family of freighters
serves 90% of the global freighter market,” says Ben Linder, 777 and 777-8
freighter chief project engineer. “We’ve earned that, and customers are
counting on us to deliver the first 777-8 freighter to expand their operations
and replace retiring 747-400 freighters.”
Suppliers
are producing major assemblies for the first 777-8F. Clockwise from top left, a
wing center section at Subaru, a fuselage section at Mitsubishi Heavy
Industries and a keel beam at Kawasaki Heavy Industries.
Boeing’s
2025 Current Market Outlook projects a two-thirds increase in the global
freighter fleet by 2044, including approximately 885 large widebody freighters.
Since its launch in 2022, the 777-8 freighter programme has received 59 orders.
Qatar
Airways Cargo is set to be the launch customer. The rival to the Boeing 777-8
freighter, Airbus’s upcoming widebody freighter A350F, is also making steady
progress. Airbus recently reached a key milestone in the programme, with its
Broughton site completing the first-ever set of wings for the A350F. Airbus is
building two A350F test aircraft, which will undergo flight testing throughout
2026 and 2027. The company has secured a total of 66 net orders for the A350
freighter.
FedEx opens new air facility in Manchester
FedEx
has opened a new logistics facility close to Manchester Airport as part of its
efforts to upgrade its capabilities in the northwest of the UK.
The new
facility measures 38,000 sq ft, is located around half a mile from Manchester
Airport and features technologies such as an automated sorting system and x-ray
machines to increase “throughput, speed, and efficiency”.
”The new
facility is part of a relocation of Manchester operations, providing the
opportunity to upgrade and enhance FedEx capabilities in the Northwest region,”
FedEx said in a press release. Steve Johnson, managing director, UK air
operations at FedEx, said: “ The opening of our enhanced facility in Manchester
is a significant milestone for FedEx and our valued customers as we continue to
advance our freight capabilities in the UK.
ACIA Aero Leasing to sell first ATR 72-600 LCD freighter to FedEx
ACIA
Aero Leasing has signed an agreement to sell its first converted ATR 72-600
Large Cargo Door freighter to FedEx, marking the first conversion of this
passenger aircraft type into a freighter.
The
aircraft, MSN1239, will be delivered by December 2025 and will enter FedEx
operations afterwards. Mark Dunnachie, SVP Commercial at ACIA Aero Leasing,
said, “As market leaders in the ATR pax to freighter conversion, we wished to
reaffirm our position in this segment by delivering the world’s first converted
72-600 LCD.
In
partnership with our sister company IPRC, we are delighted to work with FedEx,
the world’s largest operator of ATR freighters, as the launch customer.” The
aircraft will include specific modifications unique to ACIA’s 72-600 LCD, such
as a large cargo door and a rear flip door designed by IPRC. Dunnachie added,
“It has
been a real pleasure to work with FedEx on this transaction, and we are excited
about continuing to develop our excellent relationship over the coming years.”
ACIA Aero Leasing, a subsidiary of ACIA Aero Capital, manages nearly 70
regional passenger and freighter aircraft leased to operators in more than 22
countries.
Challenge Group showcases new livery on its 767 freighter
Challenge
Group has unveiled the brand-new livery of its Boeing 767 freighter, registered
as 9H-CAH. The Boeing 767-300 freighter is 26.8 years old and was converted
into a freighter in August 2024. It entered service with Challenge Airlines on
December 24, 2024, according to data from Planespotters.net.
In a
LinkedIn post, Markus Fischer, Head of Network Planning, Alliances and Revenue
Management at Challenge Group, shared an update on the new livery unveiling. He
mentioned that the aircraft was painted at Aviation Cosmetics in Malta and is
now ‘ready to make a bold statement as it travels the skies worldwide.’
Challenge
Group currently operates a fleet of 10 aircraft, comprising six Boeing 747-400
freighters and four Boeing 767-300 freighters. In May this year, Challenge
Group launched its Boeing 777-300ERSF conversion programme and is set to
introduce the converted freighter into its fleet later this year.
The
company has registered the first-ever Boeing 777-300ERSF in the EASA region
under a Maltese AOC (9H). The airline operates several key international
routes. These include daily flights from Tel Aviv (TLV) to Liege (LGG), a
twice-weekly service from Tel Aviv to New York John F. Kennedy (JFK), five
weekly flights from Liege to New York JFK, and weekly flights from Liege to
both Atlanta (ATL) and Houston (IAH).
It also
operates on routes such as Tel Aviv to Dubai World Central (DWC), Tel Aviv to
Nairobi (NBO), Tel Aviv to Zhengzhou (CGO), and Hong Kong (HKG) to Dubai World
Central. In May this year, the airline launched a new weekly service to
Bengaluru, India, adding to its existing routes to other Indian cities such as
Mumbai and Delhi.
Qatar Cargo: 777-8F delays behind order for 777 conversions
Mark
Drusch, Qatar Airways Cargo’s chief officer cargo. Photo: Qatar AirwaysOne of
the main reasons for Qatar Airways’ recent deal for converted Boeing 777
aircraft was delays to the delivery of the new 777-8F aircraft that the airline
has on order.
In 2022,
the airline placed an order for 34 of Boeing’s new 777-8F jet, with options for
16 more. However, the launch date for the new widebody freighter has been
pushed back from 2027 to 2028 at the earliest.
Qatar
Airways chief officer cargo Mark Drusch told Air Cargo News the
delay is one of the major reasons the carrier struck a deal with Mammoth
Freighters for five converted 777-200LR
freighters earlier this year.
”We were
expecting to take the 777 -8Fs sooner than we are going to get them,” said
Drusch. ”So that’s the first thing. Also, the availability of the factory 777Fs
is limited, so we had this opportunity and took it.
”The
conversions perform almost exactly like the factory aircraft. It’s amazing.
That is the guarantee we have.”
He
added: ”If it is hard to get more production aircraft and we can convert them
at a very attractive capital expenditure and with the same performance, or only
a marginally different performance, it is a no-brainer to give us capacity.”
Drusch
said the first of the converted freighters is due to be delivered this year. Earlier this year, the prototype 777
conversion, registered as N705DN, took to the skies following conversion at
Mammoth’s modification partner facility, Aspire MRO, in Fort Worth, Texas.
Currently,
Mammoth has seven 777-200/-300 aircraft undergoing
conversion: five at Aspire MRO in Fort Worth,
Texas, and two at STS Aviation Services in Manchester, UK.
Brian
McCarthy, vice president of marketing and sales at Mammoth, told Air
Cargo News in May that the first two 777-200LRFs will be
for Qatar, with the next going to DHL.
While
work continues on converting the aircraft, the company will also be attempting
to gain STC approval for the conversion programme from US authorities.
In May,
McCarthy said that smoke tests - where the smoke alarm systems are put through
their paces - were about to be carried out, and then the process would be
handed over to the Federal Aviation Administration (FAA) for STC approval.
Increased
network flexibility
Meanwhile, Drusch
also said that the current unpredictable market conditions meant it was
increasingly important to be flexible with the airline’s freighter fleet.
”You
need to be agile, you need to respond quickly,” said Drusch. ”So, what we have
changed is how quickly we look at moving the network; every three or four
days, if we need to, based on what’s going on in the market.
“It is
in the best interest of all of us for us to put capacity where it is needed and
take it out where it isn’t.”
He added
that the situation has calmed down in recent weeks and now changes are more
likely to take place every fortnightly, rather than every few days at the
height of the tariff announcements.
However,
Drusch also said it was important to maintain its network and the changes
related to frequencies, rather than closing markets.
”We have
had to take some capacity out of certain parts of Asia and we put capacity into
the transatlantic, we put capacity into Africa, we put capacity into the Indian
subcontinent, so we haven’t pulled any markets at all, we are just moving n+1
frequency because there isn’t as much demand. We haven’t shut anything down.”
He added
that, in fact, the airline had expanded its network with a new call at Erbil. ”So
where we have trimmed, nobody has lost, and where we have added, it is because
there has been more demand.”
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, Cargo Forwarder Global & Air Cargo News.
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