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 May 11,
2026
Today’s
Exchange Rates
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94.47 |
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128.6461 |
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111.2041 |
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1.3628 |
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/// Sea Cargo News ///
India Plans
Acquisition of 437 Vessels by 2042 to Expand Maritime Fleet
India has set an ambitious long-term plan to procure 437 vessels by 2042 as part of a broader strategy to expand and modernize its maritime fleet, strengthen shipping capacity, and reduce dependence on foreign-flagged tonnage.
The proposed fleet expansion is
expected to cover a range of vessel types, including cargo ships, tankers, bulk
carriers, container ships, and specialized vessels to support energy, trade,
and offshore operations.
The initiative aligns with
India’s goal of building a more self-reliant and globally competitive shipping
ecosystem. By increasing domestic fleet capacity, India aims to enhance control
over critical trade routes, improve logistics resilience, and reduce foreign
exchange outflows currently spent on chartering and shipping services from
overseas operators.
The plan also supports the
country’s growing export-import volumes, driven by manufacturing expansion,
energy demand, infrastructure development and rising consumption. A larger
national fleet would help ensure greater availability of shipping capacity during
global disruptions and peak trade cycles.
Industry stake holders note
that such a large scale procurement drive could significantly benefit domestic
shipbuilding yards, maritime equipment suppliers and allied industries,
creating jobs and boosting industrial output.
The strategy is also expected
to align with global trends toward greener shipping with newer vessels likely
incorporating fuel-efficient designs and alternative fuel capabilities.
If executed successfully, the
437 vessel expansion plan could transform India’s maritime profile over the
next two decades, strengthening its position in global shipping and trade
networks.
Shipping Corporation of India
has invited bids for the construction of four methanol dual-fuel ready Aframax
tankers at domestic shipyards in a deal valued at approximately $340 million,
signalling a major push toward fleet modernization and greener shipping
capabilities.
The tender covers the local
construction of Aframax-class crude and product tankers designed to be methanol
dual-fuel ready, allowing future operation on conventional marine fuels as well
as cleaner alternative fuels such as methanol.
The move aligns with the global
shipping industry’s transition toward lower-emission vessels and compliance
with tightening environmental regulations. Building the tankers locally is
expected to support India’s shipbuilding sector, generate skilled employment,
and strengthen indigenous maritime manufactur -ing capabilities under the
country’s self-reliance and industrial development initiatives.
Aframax tankers are widely used
for medium haul crude oil and petroleum product transport, making them a
strategic asset for both domestic energy logistics and international trade
routes. Adding modern, fuel-flexible vessels could improve Shipping Corporation’s
competitiveness and operational efficiency.
Industry observers note that
methanol ready ships are gaining traction as owners seek future proof
investments amid uncertainty over the long term dominant marine fuel of the
future. Such vessels provide flexibility to adopt cleaner fuels as bunkering infrastructure
expands.
The $340 Million project also
reflects increasing demand for sustainable tonnage and renewed investment in
tanker fleets as energy trade patterns evolve. If completed successfully, the
order would mark an important milestone for India’s maritime sector, combining
green fleet renewal with domestic shipbuilding growth.
Tuticorin Port and ABB
Partner to Develop Shore-to-Ship Power Technology
V.O. Chidambaranar Port
Authority (Tuticorin Port) has entered into a collaboration with ABB to develop
shore-to-ship power technology, aiming to reduce emissions and improve
sustainability in port operations.
The initiative will enable
vessels berthed at the port to draw electricity from the shore instead of
running onboard diesel generators. This “cold ironing” or shore power system is
expected to significantly cut carbon emissions, reduce noise pollution, and
improve air quality in and around the port area.
Under the partnership, ABB will
support the design and implementation of the required electrical
infrastructure, including high-voltage shore connection systems that allow
different types of vessels to plug into the port’s power grid safely and
efficiently.
Tuticorin Port, of India’s key
cargo handling hubs on the east coast, handles a wide range of cargo including
containers, bulk commodities and breakbulk shipments. The adoption of
shore-to-ship power aligns with broader efforts to modernize port infrastructure
and align with global environmental standards.
Industry experts note that shore power systems are becoming increasingly
important in major ports worldwide as shipping companies and regulators push
for decarbonisation across maritime supply chains. The technology also helps
vessels reduce fuel consumption while docked, lowering operational costs.
The collaboration is expected
to pave the way for cleaner port operations and could serve as a model for
other Indian ports looking to adopt green energy solutions.
If successfully implemented,
the project will mark a significant step toward sustainable maritime
infrastructure development in India.
Kamarajar Port Sets
New Container Handling Record with Maersk Vessel
In a significant boost to
India’s maritime efficiency, Kamarajar Port has achieved a record-breaking
milestone in container operations. The port successfully handled 10,487 TEUs on
board the vessel M.V. Maersk Gibraltar at the Adani Ennore Container Terminal.
The feat was accomplished in
just 67 hours on April 25, 2026, surpassing the previous record of 10,007 TEUs,
marking a new benchmark for operational efficiency at the port. This
achievement underscores the strong coordination among terminal operators, port
authorities, and logistics stakeholders.
It also highlights the growing
capabilities of Indian ports in handling large container volumes with speed and
precision. The milestone further reinforces the port’s commitment to faster
turnaround times, enhanced productivity, and strengthening India’s maritime
trade infrastructure.
Union Withdraws
Opposition to HMM Relocation to Busan
A labor union has withdrawn its
opposition to the planned relocation of HMM operations to Busan, clearing a
major obstacle for the move and paving the way for the South Korean shipping
company to strengthen its presence in the country’s leading maritime hub.
The decision is expected to
support HMM’s efforts to consolidate operations closer to Busan Port, one of
the world’s busiest container gateways and a key center for shipping,
logistics, and maritime services in Northeast Asia.
Relocating functions to Busan
could improve coordination with port terminals, reduce operational costs, and
enhance supply chain efficiency. HMM, South Korea’s flagship container carrier,
plays a central role in the nation’s export-driven economy and global trade
network.
A stronger operational base in
Busan may help the company improve competitiveness as carriers face evolving
market conditions, fluctuating freight rates and growing pressure to optimize
networks.
The union’s reversal suggests
progress in negotiations over employee concerns, workplace conditions or
transition arrangements linked to the relocation plan. Labour cooperation is
seen as important for ensuring a smooth implementation process and minimizing
disruptions.
Industry observers note that
deeper integration between HMM and Busan’s maritime ecosystem could benefit
cargo owners, logistic service providers and regional trade flows through
improved service coordination.
With opposition withdrawn, the
relocation move is expected to proceed more smoothly, reinforcing Busan’s
status as a strategic shipping hub and supporting HMM’s long term operational
strategy.
Taiwan Carriers Seek
Government Support to Release Trapped Container Ships
Taiwanese shipping carriers are
calling for government support to help free container ships that have become
trapped amid ongoing regional disruptions, highlighting growing concerns over
delays, rising costs, and supply chain instability.
The affected vessels, carrying
containers on key international trade routes, have reportedly faced movement
restrictions and operational bottlenecks that are disrupting schedules and
cargo deliveries.
Shipping lines are seeking
diplomatic, regulatory, or logistical assistance to expedite the release of the
stranded ships and restore normal operations. Taiwan is home to several major
global container carriers that play a critical role in east-west and intra-Asia
trade lanes. Prolonged vessel disruptions could impact exporters, importers and
manufacturers relying on timely delivery
of raw materials and finished goods.
Industry experts note that
trapped ships can lead to cascading effects across global logistics networks,
including equipment shortages, port congestion, increased freight rates and
re-routing expenses. Delays are especially
significant for time-sensitive sectors such as electronics, retain and
automotive supply chains.
Government interventions could
involve coordination with foreign authorities, support for alternative routing
solutions, or measures to reduce commercial losses for affected operators.
As maritime trade faces renewed
geopolitical and operational challenges, Taiwan’s carriers are urging swift
action to minimize disruptions and protect the reliability of regional shipping
networks.
Container Lines’
Return to Suez Would Open ‘Release Valve’ for Overcapacity
A return by container shipping
lines to the Suez Canal route could act as a crucial “release valve” for
mounting vessel overcapacity, helping rebalance supply and demand across the
global liner market.
Since many carriers diverted
services around the Cape of Good Hope to avoid disruptions in the Red Sea,
voyages between Asia and Europe have become significantly longer. The extended
transit times have absorbed a large amount of global fleet capacity by keeping
ships tied up for more days at sea, temporarily tightening vessel supply.
If carriers resume regular Suez
transits, voyage durations would shorten substantially, releasing ships back
into the market faster and effectively increasing available capacity. Analysts
warn that this could expose the industry to renewed overcapacity pressures,
especially as a wave of newly built container vessels continues to enter
service.
Greater vessel availability
could intensify competition among carriers, place downward pressure on freight
rates and challenge profitability on major trade lanes. At the same time,
shorter transit times would benefit shippers through faster deliveries, lower
fuel consumption and improved schedule efficiency.
The timing of any return to
Suez will depend largely on security conditions in the Red Sea and surrounding
region, along with insurance cost and risk assessments by carriers.
Industry observers say a full
reopening of the Suez route would mark a major turning point for global
container shipping, easing transit disruptions while simultaneously reviving
concerns over excess fleet capacity in the market.
MSC Adds Itajaí Call
to Gulf–South America East Coast Service
MSC has updated its Gulf–South
America East Coast (SAEC) service by adding a new port call at Itajaí, Brazil,
enhancing network coverage and improving connectivity for cargo flows between
the Middle East Gulf region and South America.
The new rotation introduces
Itajaí as an additional gateway between Paranaguá and Santos, expanding access
to southern Brazil’s industrial and agricultural export regions.
The change is designed to
strengthen service reliability and provide shippers with greater flexibility in
routing cargo across key transcontinental trade lanes.
According to MSC, the inclusion
of Itajaí will improve cargo distribution efficiency within Brazil and support
growing demand for trade between South America and Gulf markets.
The adjustment is part of
ongoing network optimization efforts to align services with evolving patterns
and customer requirements.
The updated service will begin
with the MAERSK CHAMBAL voyage 618A/623R, marking the official integration of
the new port call into the rotation.
Industry observers note that
South Americal-Middle East trade has been expanding steadily, driven by demand
for agricultural products, refrigerated cargo and industrial goods with
carriers increasingly fine tuning services to capture emerging opportunities.
By adding Itajai, MSC aims to
enhance port coverage in southern Brazil while maintaining competitive transit
times and improving schedule reliability across the service network.
/// Air Cargo News ///
Noida
International Airport to Launch Commercial Operations from June 15
Noida International Airport is set to begin commercial operations from June 15, marking a major milestone in India’s aviation infrastructure expansion and adding new capacity to serve the fast-growing Delhi-NCR region.
The launch of passenger services is expected to ease congestion at existing airports in the National Capital Region while improving connectivity for travelers and cargo operators. Once operational, the airport will provide an additional gateway for domestic and international airlines seeking access to one of India’s busiest air travel markets.
Located in Greater Noida, the airport is positioned to support both passenger traffic and freight movement through modern facilities, multimodal connectivity, and planned future expansion phases. It is expected to play a significant role in boosting regional economic development, logistics activity and employment generation.
Industry analysts view the airport as a strategic addition to India’s broader aviation growth story, driven by rising passenger demand, fleet expansion and increasing cargo volumes. Enhanced airport infrastructure is also critical for supporting e-commerce, express freight and export oriented industries in northern India.
The phased rollout of operations is likely to include progressive route additions, airline onboarding and expansion of terminal capacity over time.
With commercial services commencing from June 15 2026, Noida International Airport is poised to become an important new hub for mobility and investment in the region.
AirAsia Co-Founder Tony about to give
the world a new airline
AirAsia X Bhd. co-founder Tony Fernandes is preparing to launch a new airline, signalling an aggressive expansion push even as the aviation sector grapples with elevated oil prices. According to a Bloomberg report, Fernandes said the new carrier is expected to be announced within the next one to two months.
Speaking in a video interview with the news agency from Montreal late Wednesday, Fernandes said the group is reallocating aircraft for the upcoming venture, though he did not disclose further operational details. The move comes as the low-cost Southeast Asian airline group looks to scale up amid volatile market conditions.
The
move follows AirAsia’s multibillion-dollar aircraft order that Canadian Prime
Minister Mark Carney described as the largest ever purchase of Canadian-made
commercial planes. The deal covers 150 Airbus SE A220 jets and is part of a
broader strategy to operate smaller aircraft aimed at increasing connectivity
across Asia.
“Why waste a crisis? There are opportunities in a crisis,” Fernandes, 62, told
Bloomberg. “We can’t control what happens in the Middle East, but we have to
take a view that it’s not going to last for two years.”
AirAsia’s approach continues to stand out in the industry, particularly its decision not to hedge fuel costs. That stance has contributed to a roughly 35% drop in the company’s shares since the Iran war began, making it the worst performer on the Bloomberg World Airlines index during that period.
Fernandez
remained firm on the strategy. To fund
its expansion plans, AirAsia is preparing a bond sale of up to $600 million and
is also in talks with Malaysian banks for what Fernandes described as a “quite
a large” refinancing package aimed at lowering borrowing costs. The company is
also engaging with Canadian pension funds to attract investment.
In the near term, Fernandes acknowledged financial pressure, saying the airline
is unlikely to meet its initial profit target, which will be announced soon. Revenue
for the year, however, is expected to remain broadly in line with earlier
projections.
AirAsia has also been exploring expansion in Vietnam, as per Bloomberg citing
people familiar with the matter. The group currently operates across Malaysia,
Thailand and Indonesia, with a fleet of about 250 mostly single-aisle Airbus
aircraft. Its latest order will expand its backlog to around 550 jets.
Separately, AirAsia has announced plans to begin flights from Bahrain, with
longer-term plans to establish a local unit in the Gulf island nation.
Xeneta: The worst may be over after air
cargo prices surge in April
Airfreight rates may have peaked following the Middle East conflict after they increased by more than 30% year on year in April, according to data provider Xeneta.
The latest monthly figures from Xeneta show that last month airfreight demand was up 2% year on year, capacity declined by 1% and the dynamic cargo load factor increased by three percentage points to 62%.
However,
the standout figure for the month was the 30% year-on-year increase in average
spot prices to $3.34 per kg.
The increase reflected the conflict in the Middle East, which pushed up the cost of jet fuel, resulted in the reconfiguration of supply chains with more direct flying, pushed up transit times as carriers had further to fly and put pressure on capacity.
However, Xeneta said the worst could be over for shippers as capacity returns on the routes most affected by the conflict and market fundamentals “start to regain control of airfreight pricing”.
“Now
capacity is coming back, rates will come down, but not as quickly as they went
up,” said Xeneta chief airfreight officer Niall van de Wouw. “Ultimately,
market fundamentals will prevail.”
He added that freight rates don’t necessarily need to increase just because jet fuel prices have risen. “Recent developments regarding Transatlantic prices are a case in point. These rates have declined in recent weeks, despite the jump in jet fuel prices.
“The all-in cost a freight forwarder pays an airline is more driven by demand and supply than it is by fuel costs. We’ve been advising shippers not to have a fuel charge in their pricing mechanism, even though we hear that many surcharges are negotiable,” he said.
Van de Wouw also felt that air cargo would escape largely unscathed from airline moves to cut routes in light of the increased cost of fuel.
He explained that long-haul routes – which carry the most cargo – were less likely to face cuts than domestic or regional flights.
Xeneta figures show that rates on certain routes are already starting to fall. South Asia rates appear to have peaked in the week ending 12 April and edged down by single digits in the final week of April, the data firm said.
Southeast Asia corridors have followed, if less dramatically: Spot rates from the region to the Middle East and Europe rose 43% and 61% from the pre-Iran conflict levels to $3.78 and $5.12 per kg, respectively, while rates to North America climbed 33% to $6.46 per kg.
However: “Europe and North America-bound rates from the region now appear to be plateauing, though Middle East rates have yet to stabilise.”
Northeast Asia lagged its neighbours with outbound rates to the Middle East, Europe, and North America reaching “new highs of $5.25, $5.63, and $5.54 per kg respectively in the week ending 26 April”.
However, Xeneta added that percentage increases from this region “remained modest” compared with South and Southeast Asia.
“The
lag likely reflects the delayed pass-through of jet fuel surcharges, which
track actual fuel price movements with a delay; spot fuel prices themselves
peaked in early April,” Xeneta said.
Image: ©
While rate growth from Asia is either slowing or plateauing, prices from Europe to North America fell 17% compared with pre-conflict levels to $2.57 per kg.
“Despite rising jet fuel prices, airlines switching to summer schedules have flooded the corridor with additional passenger belly capacity, pushing cargo load factors down ten percentage points month-on-month and dragging rates with them,” Xeneta said.
Market
outlook
For the rest of the year, van de Wouw is expecting a tough period due to rising inflation and concerning figures showing a 9% year-on-year fall in e-commerce volumes out of China in March.
Some of this volume may have shifted into air freight consolidations and, therefore, be excluded from this data, van de Wouw said but added the downward trend seen over the last four months ex-China indicates that, for airfreight demand, “the B2C e-commerce growth seems to be over”.
“Everything that has happened in the last few weeks was against a backdrop of a not-too-rosy outlook for 2026,” he said.
“Overall, we do think we have seen the peak for global airfreight rates, and we expect them to go down on more lanes, but, based on recent experience, there will undoubtedly be an underlying concern about what’s next in terms of trade disruption.”
Amazon expands third-party logistics offering
Amazon has continued to expand its third-party logistics offering with the launch of Amazon Supply Chain Services (ASCS) in a move seen as a threat to established players UPS and FedEx.
The expansion means that any business can now move, store and deliver everything from “raw materials to finished products”.
The e-commerce giant said that major firms Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters, are among the first to sign up for ASCS.
The
move is likely to be seen as a threat to established US express giants such as
FedEx and UPS. Indeed, the share prices at both of these companies fell by
around 10% each following the announcement.
Services offered through ASCS include freight, distribution, fulfilment, and parcel shipping solutions. The freight part of the offering includes Amazon’s transportation network covering ocean, air, ground, and rail freight, supported by a fleet of 80,000 trailers, 24,000 intermodal containers, and 100 aircraft.
There is a range of speed and service options, including time-sensitive shipments, simplified booking, customs clearance, and end-to-end shipment visibility.
The distribution and fulfilment offering allows companies to import inventory from overseas, store inventory in bulk, position inventory closer to demand and fulfil customer orders across their sales channels.
Finally, the parcel service covers orders placed across sales channels, with two-to-five-day delivery speeds and seven-day-a-week service with pickups from warehouses or third-party providers and delivery to customers’ doorsteps.
“These services were originally developed to power Amazon’s own retail operations and to support independent selling partners worldwide,” the company said in a press release.
“Over the past three years, hundreds of thousands of Amazon sellers have trusted the company’s logistics network to move, store, and deliver hundreds of millions of packages across third-party facilities, warehouses, and sales channels beyond the Amazon store.
“The launch of ASCS builds on this momentum, now supporting third-party logistics for businesses in industries such as healthcare, automotive, manufacturing, and retail.”
Procter & Gamble is using Amazon’s freight services to transport raw materials to production facilities and move finished goods across its distribution network.
3M is moving products from its manufacturing sites to distribution centres worldwide.
Lands’
End is using a unified inventory pool within Amazon’s network to fulfil orders
across multiple sales channels.
Finally,
American Eagle Outfitters is using Amazon’s parcel shipping network to deliver
online orders from its American Eagle and Aerie websites directly to customers
nationwide.
Peter Larsen, vice president of Amazon Supply Chain Services, said: “With the launch of ASCS, we’re confident we can give any other business access to the same cost efficiency, reliability, and speed that we’ve built for Amazon customers.”
Cirrus Global Advisors said the logistics services it will offer under ASCS have been in place for years. The challenge will be in convincing rival retailers and companies to place their volumes into the Amazon network.
“Amazon becomes disruptive to the broader logistics ecosystem only if enterprises meaningfully shift volume into its network. That transition is not guaranteed,” said Cirrus Global Advisors’ Derek Lossing in a blog post.
“Concerns around data access and competitive neutrality will remain top of mind for large retailers and brands. “The willingness to allow Amazon deep visibility into supply chain operations will depend on trust, governance, and clear separation between platform and competitor.
“Capacity prioritisation is another open question. In a shared network that serves both Amazon’s own retail operations and external customers, how capacity is allocated, particularly during peak periods, will influence adoption and long-term viability.”
The company has already gone through a similar launch in the air cargo market, when it introduced Amazon Air Cargo to the market in 2024.
Amazon Air Cargo has put in place several measures, including a no-bumping guarantee, to convince customers that products will be.
AF KLM Cargo sees volumes rise but
revenues fall in Q1
The first quarter of the year was a mixed bag for Air France KLM Martinair Cargo (AFKLMP) as cargo volumes were on the rise despite a dip in revenues.
The
Franco-Dutch group saw first-quarter revenues at the cargo business decline by
3.5% year on year to €600m despite cargo volumes increasing by 4% to 234,000
tons and cargo traffic improving by 3.8% to 1.8bn revenue tonne km.
Meanwhile, capacity increased by 2.9% year on year and, as a result of demand growing faster than supply and the cargo load factor improved by 0.4 percentage points to 49.4%.
The company pointed out that during the first quarter of last year, rates had been elevated as a result of the rush to move goods ahead of incoming US tariffs and that had boosted revenue performance in 2025.
Meanwhile,
its performance in March would have been boosted by the Middle East conflict.
Results would also have been affected by the weakening of the dollar over the past year.
“Unit revenue per available tonne km at constant currency was below last year’s level in January and February, which showed strong cargo demand due to front-loading of shipments and tariff-driven shifts,” the company said in a first-quarter results press release.
“In
March, the Middle East conflict reduced industry capacity and pushed the
Group’s yield and unit revenue above last year’s levels.”
Meanwhile, the overall company warned of a potential $2.4bn increase in its fuel costs this year.Air France-KLM now expects its total fuel costs to reach $9.3 billion this year – a jump of $2.4 billion over 2025.
While
this impact was not evident in the first quarter, the group expects a fuel cost
impact of $1.1 billion in the second quarter alone.
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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