LUFTHANSA CARGO has posted net losses of US$17 million in 2011, down from its record profit of $1.5 billion in 2010, due to cost burdens from the valuation and the sale of its UK-based British Midland Airways (BMI).

Despite revenue increase of $37.9 billion to $35 billion its operating profit plunged 18 per cent to $1.1 billion. It met a net profit of $380 million during its first nine months and as yet has not announced its fourth quarter or full-year earnings due on March 15.

The drawn-out sale by British Airways' parent International Airlines Group (IAG) for Lufthansa's BMI, the second-largest airline at London's Heathrow Airport, was agreed in December 2011 at a sale price of $272 million on the back of 56 valuable landing slots.

The UK's Office of Fair Trading (OFT) has declined to review deal under competition rules which means the decision will be made by the European Commission.

Source Shipping Gazette - Daily Shipping News

AIR FRANCE-KLM posted 5.1 per cent year-on-year decline in February cargo despite a slight decrease in capacity of 0.8 per cent, and a load factor was down four percentage points to 63.7 per cent.

The carrier group experienced deepest losses in revenue-ton-kilometre (RTK) in routes to Americas at 12.5 per cent and a load factor decline of eight per cent year on year, partially offset by a minimal capacity reduction of 1.8 per cent.

Africa/Middle East regions declined by 8.7 per cent year on year on a capacity reduction of four per cent. Europe also dropped by three per cent in RTK against slight capacity increase. Caribbean volume showed an uptick of 4.2 per cent while Indian Ocean traffic increased three per cent.

Passenger growth was led by the Americas with African/Middle East and European networks improving. Traffic was up slightly at 1.1 per cent for the Caribbean/Indian Ocean.

Europe's third largest cargo carrier is relying on a freight boost in its relaunch of a freight service to Hartsfield-Jackson Atlanta International Airport after exiting the service three years ago.

It hopes the twice-weekly 747F flights route to Atlanta from Paris-Charles de Gaulle will generate volumes when it starts on March 17. It is estimated to impact metro Atlanta and the southeast's economy by US$8 million to $12 million annually, said a company statement.

Source Shipping Gazette - Daily Shipping News

LEADING cross-border express services provider, DHL, has launched two direct flights from its Hong Kong hub to Ho Chi Minh City and Chengdu.

The company said its new Hong Kong-Chengdu route will ensure evening pick-up and next-day delivery for shipments to Chengdu and other economic centres in south western China, such as Chongqing, Kunming and Guiyang.

This route is operated in cooperation with Yangtze River Express Ltd, a Chinese all-cargo airline, operating a Boeing 737-300 freighter flying five times per week. High value and formal export shipments, dependent upon customs clearance, are expected to benefit from a previously unavailable same-day uplift service.

An additional direct flight was launched earlier this year, which connects Hong Kong to Ho Chi Minh City. The introduction of five Boeing 727F flights per week, each with a payload of 22 tonnes, is operated by its joint venture partner airline, Air Hong Kong.

The new direct flight, which replaces the existing flight transiting in Bangkok, shortens the transit time between Vietnam, the US and Europe by two hours. As a result, customers will now have extra time to package their goods before sending them abroad with latest courier pick-up at 2200 hrs for next day delivery.

Source Shipping Gazette - Daily Shipping News

DESPITE industry concerns of the negative health effects of pilots being exposed to high levels of radiation over the North Pole owing to a thinning of the ozone layer, Russia's AirBridgeCargo Airlines has operated its first flight over the North Pole en route from Chicago to Krasnoyarsk.

The Boeing 747-400 freighter operating the flight was said to be carrying a very special load - 175 Angus-bred heifers, weighing a total of 104,000 kilogrammes. The animals landed safely at Krasnoyarsk's Emelyanovo Airport from where they were transported to a local breeding farm.

"This type of flight requires a high level of expertise from the crew because it differs from regular flight operations. Transpolar traffic is subject to zero wind conditions and can face satellite navigation system errors, radiation hazards and disrupted radio contact," a company statement said.

"Given these challenges, AirBridgeCargo chose one of its most experienced pilots for the operation, chief pilot Oleg Trotsenko, who has participated in cross-polar flight tests since 1997," said the company.

"For each pilot, opening and deployment of this new air path is a challenge. At AirBridgeCargo we have an experienced team of highly-skilled flight crew capable of undertaking such flights," Captain Trotsenko said.

According to the cargo airline, the commencement of transpolar flights from Russia will boost the "transit potential of our country. This route allows for savings in both time and fuel consumption and we do hope that it will be popular with our customers," said company president Tatyana Arslanova.

Source Shipping Gazette - Daily Shipping News

Undergraduate and postgraduate students of environmental and fisheries science will be able to further their studies with the assistance of a new scholarship research program, launched today.

The Marine Stewardship Council (MSC) will award one travel and study scholarship annually, up to the value of £4000. The scholarship program is open to undergraduate and postgraduate students worldwide.

To qualify for consideration, projects will have as their objective the study of some aspect of environmental improvement, performance or best practice in fisheries management, or fish product supply chain management. This may be direct study of one particular fishery or a comparative study of fisheries problems or management. Direct linkage to a fishery certified or wishing to become certified by the MSC is not a requirement, although this is an additional point of interest for the MSC.  The project must be completed within 12 months of the start date stated on the application form, and the final project report must be submitted within 15 months of the start date.

MSC standards director, David Agnew said: “The new MSC scholarship will complement our existing program of extensive scientific research. We already fund a number of research projects each year to inform our policy development, monitor our performance and measure the environmental impacts of MSC certified fisheries. This scholarship program will fund research of direct interest to the MSC and research that goes beyond the immediate requirements for policy development. We hope to encourage research on a wide range of fisheries topics in both developing and developed countries. Thus its aim is to not only provide recipients with an excellent career opportunity, but to contribute to the wider global research effort on fisheries. ”

The closing date for applications is Monday 23rd April 2012.

Further information, frequently asked questions and the application form can be found at

Source MSC

COMMERCE Minister Chen Daming has criticised a US bill that would place punitive duties on subsidised goods from China and Vietnam that nullifies a court ruling that forbid the US Commerce Department from imposing countervailing duties on subsidised goods.

Protested the minister: "The US Government has subsidised companies, like the three big automakers, but China did not criticise these moves or start massive countervailing actions," he said.

"We follow the rules of the WTO [World Trade Organisation], but we have no obligation to follow domestic laws or regulations in any country that go beyond international rules," Mr Chen told a news conference on the sidelines of the National People's Congress meeting in Beijing, said Reuters.

Beijing will not adjust the yuan's value to help the US solve its trade deficit problem, he said, adding that keeping the yuan from a free market float was not the cause of the trade imbalance. The yuan, he said, is near its fair value.

Mr Chen said China's trade surplus was reduced to 2.1 per cent of GDP in 2011, while the US trade deficit remained at 4.8 per cent and that China's trade surplus was only $150 billion, but its trade surplus with the US was $200 billion.

US President Barack Obama has agreed to sign the bill into law to allow duties to be imposed on subsidised goods from China and Vietnam, which the White House says this will protect American jobs.

The consensus view of a Reuters poll is that China's annual export and import growth enjoyed a sharp rebound in February from a year earlier.

The White House recently announced setting up an Interagency Trade Enforcement Unit to investigate compliance with trade rules, targeting China and Vietnam.

Source Shipping Gazette - Daily Shipping News

THE Ports of Auckland has signed a deal with two independent stevedoring companies to replace 300 striking dockers it sacked by signing contracts with Drake New Zealand and AWF Group to provide new hires.

"These are partnerships that will contribute to innovation and the development of Ports of Auckland as a customer focussed, aspirational port, which delivers for Auckland," said port CEO Tony Gibson, according to New Zealand's Voxy News.

But the dockers, members of New Zealand's Maritime Union (MUNZ), say the port authority is acting illegally and are seeking legal advice, reported London's Containerisation International, adding that the they are also talking to Auckland City Council, which would have to pay some of the NZ$12 million (US$9.9 million) needed in redundancy pay.

Said union president Garry Parsloe: "They have kicked all of us out the door. And Tony Gibson thinks we'll all run back and work for half the money."

Meanwhile, Gary Withers, general manager of Drake New Zealand stevedores said his company will deliver high quality workers. "We look forward to working with Ports of Auckland as it implements its move to competitive stevedoring," he said.

Said AWF Group CEO Mike Huddleston: "We are very pleased to partner with Ports of Auckland to provide stevedoring services. We will bring a motivated, skilled team to the wharf."

Source Shipping Gazette - Daily Shipping News

PORT of Taicang, 60 miles upstream from Shanghai on the Yangtze, is aiming to complete handling four million TEU and overall 120 million tonnes by the end of this month, Xinhua reports.

The eastern China port, once home to now defunct The Containership Company, also plans to invest CNY5.43 billion (US$860.6 million) on development projects, and launch 16 to 24 new lines to raise the total to between 115 and 123. It will also seek to increase its client base in Suzhou by 200 to 300 shippers to raise the total to 1,500 companies.

Source Shipping Gazette - Daily Shipping News

MANZHOULI, China's largest overland customs checkpoint on Sino-Russian border registered an import and export value of US$570 million in January, reports Xinhua.

The export value increased 22.8 per cent year on year to $90 million. Export cargo mainly were vegetables, steels, textile products and automobile parts.

The overland port exported 32,000 tonnes of vegetables, up 140 per cent with a value of $20 million, 8,030 tonnes of steel, up 430 per cent with a value of $7.55 million, textile products valued at $4.56 million with a 25.6 per cent increase, automobile parts in value of $849,000, up 49.7 per cent, and 1,955 tonnes of granite and stone, up 100 per cent with a value of $669,000.

Source Shipping Gazette - Daily Shipping News

NORTHWEST China's overland checkpoint bordering Kazakhstan, Alataw Pass, moved 1.99 million tonnes of cargo in January, growing six per cent year on year, reports Xinhua.

Imports increased 1.5 per cent to 1.52 million tonnes while the exports grew 24.5 per cent to 363,600 tonnes with a total trade value of US$1.41 billion, up 23.6 per cent.

The import value grew 6.6 per cent to $1.09 billion while the export value increased 177 per cent to $316 million.

The imports mainly are bulk cargo such crude oil and iron ore while the exports focus on construction material, chemical products and industrial machinery.

Source Shipping Gazette - Daily Shipping News

THE Philippines Ports Authority (PPA) has experienced a 6.3 per cent increase in overall 2011 cargo volume to 162.2 million tonnes year on year, also posting 4.8 million TEU at its four ports in Luzon and Mindanao.

Domestic container growth was most pronounced at 17.53 per cent to 1.9 million TEU, but only increased 1.19 per cent to 74.86 million tonnes year on year.

International container volume was up 4.52 per cent to 2.98 million TEU against a robust uplift in cargo tonnage of 6.10 per cent to 102.48 million tonnes. Ship calls to ports dropped by 3.04 per cent to 335,580 from 345,096 year previous.

Growth increases were most marked at Surigao with 21.64 million tonnes while PMO in Puerto Princes, Palawan's growth rate was the highest at 56.8 per cent, said a statement from PPA.

Declines were the steepest at Iligan, down 19.97 per cent; Iloilo, down 19.6 per cent; Legazpi, down 13.6 per cent; Tacloban, down 10.7 per cent; Zambonga, off 9.96 per cent, with the smallest drop - 9.45 per cent - at Manila's North Harbour.

"This may be attributed to lesser exportation of coal, metal scrap, minerals, and importation of grains, cement and fertilisers" the PPA said.

Source Shipping Gazette - Daily Shipping News

INTERNATIONAL Container Terminal Services Inc. (ICTSI) plans to acquire a controlling interest of between 35 and 55 per cent in Pakistan International Container Terminal Ltd (PICT) that has an annual capacity of 750,000 TEU.

According to a Philippine Stock Exchange filing, the planned acquisition comprises 60.03 million ordinary shares at PKR10 (US$0.11) each. The company is listed with the Karachi Stock Exchange Guarantee Limited.

This comes as the Manila-bses global terminal operator posted 32.8 per cent growth in 2011's net income to reach US$130.5 million. The stronger performance was attributed to an increase in port revenues owing partly to the inclusion of earnings from ICTSI Oregon in the US and Adriatic Container Gate Terminal (AGCT) in Croatia.

Source Shipping Gazette - Daily Shipping News

HAMBURG's Kuehne Logistics University (KLU) is inviting entries for "Case Competition Focused on Humanitarian Logistics" for a scholarship at the university.

A statement from Swiss-based logistics giant Kuehne + Nagel announced that KLU is holding a second case competition for Bachelor (undergraduate) students.

"After last year's case study, this year's is firmly focused on humanitarian logistics and is being organised with the support of a reputable international aid organisation," it said.

At the end of April business studies students and graduates will be required to "cope with the logistics challenges posed by a humanitarian aid mission, using a genuine case", to demonstrate their decision-making skills, their solution-oriented approaches and their "professional" presentation.

The winning team will receive a scholarship at the KLU. No previous experience in humanitarian logistics is required. The closing date for applications is April 20. For more information, visit

Source Shipping Gazette - Daily Shipping News

INCHCAPE Shipping Services (ISS) has established a new office in Malta with a newly recruited management team, after ending a sub-agency agreement with local firm Thomas Smith.

The new ISS office will cover all ports in Malta with the new team drawn from large international shipping agencies and having experience of all vessel and cargo types, a company statement said.

The newly appointed ISS country manager is Ray Turban who joins the company from a local agency firm. With 25 years' industry experience, Mr Turban's expertise extends to all agency activities, covering all cargo commodity types, ship husbandry matters, crew logistic services, ship to ship, cruise, liner and vessel repairs. The Malta branch will continue to be supported by the company's Greek unit, based in Piraeus.

Said ISS Greek manager Christos Makrialeas: "Geographical expansion in the Mediterranean and beyond is a key strategic objective of ISS," adding that the same model will be followed in other countries in the Mediterranean region.

Source Shipping Gazette - Daily Shipping News

THIRD party logistics provider Damco has appointed international logistics professional, Martin Sieg, to take charge of ocean freight at a time when the company aims to achieve ambitious growth.

Since January 1, Mr Sieg took up the position of global head of ocean freight with overall responsibility for 600,000 TEU of ocean freight that the company manages each year.

The international freight expert is bullish about his new job in spite of market volatility. "The role of ocean transport, as a substantial part of the ever growing worldwide trade, will grow further," Mr Sieg said.

Having registered record profit growth of 29 per cent to US$97 million last year, the company is looking to grow more than the market average, to become one of the top five logistics providers in the world.

"It is extremely exciting to be in charge of one of the major products supporting this growth. Our Ocean Freight solutions will play a major role in our future development and we will further enhance our service scope to follow the customer demands," the new head of ocean freight said.

Mr Sieg was prior to joining the company the managing director of German logistics company SDV Geis and has previously held several managerial roles with Hapag-Lloyd.

Source Shipping Gazette - Daily Shipping News

The magazine SEA has been published since 1935
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The magazine JŪRA has been published since 1935.
International business magazine JŪRA MOPE SEA has been
published since 1999.

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