CHILE's main ocean carrier, CSAV, the world's 20th largest, posted a widening first quarter net loss of US$202.9 million against the $182 million lost in the first three months of last year.
But its EBIT (earnings before interest and tax) operating loss was smaller at $175.3 million than the $197.3 million lost in the first three months of the previous year.
The carrier handled 499,800 TEU in the first three months, down 43 per cent. Its average freight rates were up 5.3 per cent to $1,684 per TEU in the same period.
"If discontinued operations are ignored," said London's Containerisation International, "the net loss in first quarter would have only reached $175.6 million, ie, slightly down on its loss in the same period of last year."
Shipping Gazette - Daily Shipping News
THE China Newbuilding Price Index (from April 15 to 30) fell 0.4 per cent to 905 points and a four per cent fall compared to 939 points earlier this year, Xinhua reports.
The index was first released in July 1 last year with 1,000 points as its base value. But since then, the index has been falling, especially in the field of dry bulk ships. The latest dry bulk ship price is 880 points, 10 per cent lower than when first published.
Worse than falling price is shrinking order book. According to the statistics from the China Association of the National Shipbuilding Industry (CANSI), during the first quarter, China was getting a total of 5.59 million deadweight tonnes' order, down 48.7 per cent year on year. And there's no evidence of getting any in April.
Besides decreasing price and order, Chinese shipyards are facing fierce competition from Korean rivals. From January to April, 35 medium oil tankers have been ordered. But most of them are ordered from Korea. The domestic container shipbuilding market is also depressed with Korea's Hyundai Heavy Industries has been given the order of ten 13,800-TEU ships from Evergreen.
Experts pointed out that, compared to Korea, where government unites banks, shipyards and ship management companies, the China's ship building industry lacks support from the government. Private shipyards are even left to die. CANSI president Zhang Guangqin has been appealing for domestic banks to increase lending to ship sellers and buyers.
During the first quarter, the total of the world's ship finance plunged 60 per cent year on year and 68 over the previous quarter to US$5.9 million. Experts noted that as ship finance in the western world slows down, Chinese banks should take the opportunity to support the domestic shipyards and fleet's development towards higher added value and technology.
Shipping Gazette - Daily Shipping News
US containerised imports grew 9.2 per cent in April from March and by per cent year on year, reports trade intelligence company Zepol.
Imports from China increased by 18.7 per cent from March to April with volume from Hong Kong rising by 22.4 per cent, said the report from the Minnesota-based company.
But European imports were down 3.1 per cent in April with Belgium showing the deepest plunge at 16.2 per cent and mighty Germany off by 5.9 per cent.
Data used came from bills of lading entered in the Automated Manifest System, April has shown the highest number of imports, with over 1.52 million TEU imported, and the second largest number of shipments, with 756,000 processed.
While April imports were high, and summer numbers expected to be higher still, the trend for the past five years has shown further increases in May as well as spikes in July and August, said the report.
The Port of Savannah posted a 17.7 per cent increase, its biggest gain since September 2011. The Port of Los Angeles increased 14.7 per cent and Newark and New York were up 11 per cent when figures are combined.
Every top carrier experienced rises in shipments with Danish giant Maersk Line up 19.4 per cent in March 2012, MSC was up 2.5 per cent and APL in an increase of 20.5 per cent, the largest increase in the top 10.
Shipping Gazette - Daily Shipping News
SHIPPING price fluctuations are a necessity despite carriers being "painted as the bad guys", said Mitsui OSK Lines (MOL) UK managing director Adrian Jones at logistics costs seminar in Birmingham.
"Calculating a realistic price for a container movement can be very complex - it depends on how full the ship is, the price of fuel, how fast it sails, how long a container might stay in the port and so on," said Mr Jones.
As cargo flows differ the carrier must deal with empties in one area and a surplus in another, and then to reposition them elsewhere in the world, which makes it impossible to offer cheaper rates, he said.
When shippers switch lines to get the best rates it opens up with risks of operational failure with newer partner and ends up raising administration costs. By working closely with carriers on longer-term price deals, shippers can be prioritised at times of capacity crunch.
A give and take relationship can cut costs. "Everyone specifies a delivery at 8am - whether they need the goods then or not. If they agreed to receive the container in the afternoon, the delivery cost could well be cheaper," he added.
Shipping Gazette - Daily Shipping News
THE Port of Taicang, in eastern China's Jiangsu province, posted a year-on-year increase of 15.6 per cent in the mainland-Taiwan direct shipping cargo volume to 11,000 TEU.
Tonnage of these cargo grew 12.5 per cent to 157,000 tonnes. The number of direct shipping vessels increased 20 per cent to 55, according to Xinhua.
In December 2008, Taicang became one of the first ports operating mainland-Taiwan direct shipping services. This year, the port's direct service to Taiwan will be upgraded to one sailing a day.
Taicang is situated at the south bank of the Yangtze River estuary in Suzhou city up upstream from Shanghai. Suzhou is the one of the most heavily invested cities in mainland by Taiwan investors with over 9,500 Taiwanese invested companies.
Shipping Gazette - Daily Shipping News
SEA ports in southeast China's Fujian province handled 4.64 million tonnes of transshipments from other provinces during the first quarter of this year. This was an upswing of 127.3 per cent compared to the same period in 2011, Xinhua reports.
Cargo transshipped via sea-rail intermodal service from port of Xiamen to other provinces climbed 10.9 per cent to 4,322 TEU. International cargo transshipped via Xiamen increased 26.3 per cent to 69,000 TEU.
During the first three months, Fujian's seaports handled 88.44 million tonnes, up 9.4 per cent. Foreign trade cargo grew 15.3 per cent to 36.99 million tonnes. Container throughput increased 9.1 per cent to 2.25 million TEU.
Shipping Gazette - Daily Shipping News
THE "dry port" facilities of Tianjin port, established by the port in hinterland regions and offers intermodal service to vie for cargo, handled 41,400 TEU in the first quarter of, 11.4 per cent more year on year, Xinhua reports.
So far, Tianjin has established "dry ports" in 21 cities in neighbouring provinces and distant regions, including Hebei province's Shijiazhuang and Inner Mongolia's Baotou. Tianjin has also set up three regional marketing centres in Yinchua, Xian and Baotou to manage these facilities.
This year, Tianjin will have four "dry ports" in Baoding, Handan, Yinchuan and Zhangjiakou city operational to speed up the building of another three in Bayannagur, Chifeng and Xingtai.
Shipping Gazette - Daily Shipping News
US CUSTOMS and Border Protection has opened two of its latest import centres, one with an automotive and aerospace focus in Detroit and the other with petroleum, natural gas and mineral focus in Houston.
Following a year-long pilot scheme, opening two "Centres of Excellence and Expertise (CEE)", one in Los Angeles, specialising in electronics and another in New York, focussing on pharmaceuticals, customs finds it can increase volumes handled so now plans six more centres by 2015.
In a written statement CBP acting commissioner David Aguilar said CEEs will facilitate trade compliance by using specialist teams for specific industries, reported American Shipper. "These centres bring all of CBP's trade expertise to bear on a single industry in one strategic location," he said.
By centralising the import process for imported shippers, those of the Customs-Trade Partnership Against Terrorism or Importer Self-Assessment programmes, the CBP hopes to avoid unnecessary delays. It can then check compliance on overall accounts for certified traders as opposed to every shipment and focus on real risk for safety, intellectual property or trade violations.
Shipping Gazette - Daily Shipping News
A UN-backed labour groups have complained that Deutsche Post DHL avoids unionisation where it can and has been fined for health and safety regulations in the United States.
A document entitled Corporate Irresponsibility, Deutsche Post DHL's Global Labour Practices Exposed, the group said the company avoided unionisation outside Europe and employed too many temporary or agency workers.
The UNI Global Union and the ITF (International Transport Workers' Federation) said workers are fearful of retaliation if they try to organise unions. In many countries, including Malaysia, Indonesia and India, subcontracted workers have been paid substantially less than regular workers while doing exactly the same work.
The company has also been fined for health and safety violations, notably earlier this year in the US where DP-DHL subsidiary Excel has been fined almost US$300,000, without mentioning the specific offence.
The Wikipedia entry said it was a fine from the US "Department of Labor's Occupational Safety and Health Administration, which fined Excel almost $300,000, for wilfully failing to record and report on-the-job injuries for four years.
Such violations, says the union group contradict DP-DHL's own corporate responsibility policies and its commitment to the principles of the United Nations Global Compact, which it signed in 2006.
The report provides a whole raft of evidence holding the company to account and demanding it meet its aspirations as a responsible enterprise in every country where it operates, not just in its home base, Germany. The 175 million member International Trade Union Confederation (ITUC) is supporting the campaign.
Shipping Gazette - Daily Shipping News
ETIHAD Rail, the master developer and operator of the UAE's national railway network, has announced the signing of a Memorandum of Understanding (MoU) with DP World for the development of an intermodal rail terminal in Jebel Ali Port.
Representing an important step towards the development of the rail network, the agreement was signed by chairman of Etihad Rail Nasser Al Sowaidi and chairman of DP World Sultan Ahmed Bin Sulayem.
The intermodal rail terminal at Jebel Ali will enable the more efficient transfer of containerised freight arriving at the port, and is expected to bring substantial benefits to logistics companies and the UAE economy.
A joint statement said that DP World has already earmarked a strategic potential plot for the intermodal rail terminal, which is to be located adjacent to Jebel Ali Maritime Terminal 1 and close to Terminal 2.
DP World will oversee the building and operation of the loading and unloading facilities at the rail terminal, while Etihad Rail will build and own the railway infrastructure and manage the rail services to and from the terminal.
"The rail terminal and the Etihad Rail network as a whole will add to the efficiency we offer customers at our flagship Jebel Ali port," said Sultan Bin Sulayem.
"With state-of-the-art facilities at Jebel Ali, able to serve the largest vessels in the world, supported by the latest e-trade technology, and the Dubai Logistics Corridor linked to the Dubai World Central airport, Jebel Ali will be fully multi-modal, connecting sea-road-rail-air," he said.
"This will add enormously to the efficiency of the supply chain and reinforce Dubai's status as both a regional hub and a gateway for cargo for the UAE and the wider Middle East, the subcontinent and East Africa," he said.
The shift from truck to rail transportation will reduce truck traffic at the port terminal and on the roads surrounding Jebel Ali, while also being more cost effective for businesses over long-haul moves. One train can carry 260 TEU, which by road transportation would require at least 130 trucks.
By 2030 it is expected that the Jebel Ali intermodal rail terminal will have a capacity to handle the transfer of five million TEU per annum.
Shipping Gazette - Daily Shipping News
THE Panama Maritime Authority has approved plans to build a new US$600 million container terminal at Colon on the Atlantic side of the Panama Canal that will be able to handle two million TEU per annum.
A report by London's Port Technology International said the 92-acre terminal on the site of a former US naval base will be developed by a consortium of Asian developers under the name of Panama Colon Container Port LLC (PCCP). Chicago-based Jones Lang LaSalle (JLL) has been appointed the project advisor, according to media reports.
The design calls for four berths to be built at the Colon terminal, with two to handle super post-Panamax vessels, one for the handling of post-Panamax vessels, and a 522-foot berth for the accommodation of multipurpose and breakbulk vessels.
The terminal will be equipped with eight super post-Panamax cranes and two Panamax cranes to handle ships up to 18,000 TEU; and a 36,000-TEU capacity container yard, with additional space for 800 reefer slots. It is slated for completion in the third quarter of 2014.
The consortium is also reported to be in the final stages of discussions with "one of the world's largest terminal operators" over the day-to-day operation of the terminal.
"This will be the first terminal in Panama designed from the ground up for the post-Panamax era," the head of JLL's global port infrastructure group, John Carver, was quoted as saying. "This will be a big needle mover for Panama, one entirely built by private developers."
He added, "We just did the bidding for the dredging and land reclamation two weeks ago, and we're expecting to start construction in July."
The developers are also reported to be considering whether to build a new logistics centre, including warehouses and cold storage, next to the new terminal site.
Shipping Gazette - Daily Shipping News
IAG Cargo, the cargo arm of the International Airlines Group (IAG), the holding company of British Airways and Iberia, have recorded a EUR1 million (US$1.29 million) year-on-year revenue growth to EUR291 million in the first quarter, up 0.3 per cent as volumes dropped 2.2 per cent.
Total first quarter revenues from both cargo and passenger services for the whole group were up 7.8 per cent to EUR3.9 billion.
Despite the revenue growth in IAG Cargo, the group suffered an operating loss of EUR249 million in the first quarter compared to the EUR102 million loss one year ago. And loss before tax for the quarter widened to EUR263 million against a loss of EUR47 million in the same period last year.
IAG chief executive Willie Walsh attributed the operating loss to a "EUR281 million, 24.9 per cent rise in fuel costs, the reduced impact of hedging and emissions charges. The Iberia pilot strike cost EUR25 million in this quarter.
"The financial performance of our business continues to be undermined by government actions. In addition to the UK government increasing the world's highest aviation tax - Air Passenger Duty - by double the inflation rate, the Spanish government plans to increase departure taxes from Spain by up to 10 euros per passenger."
IAG completed the purchase of bmi in late April, which now enables British Airways to manage a wider Heathrow slot portfolio, such as launching a new route to Seoul later this year, said Mr Walsh.
"Airports across the UK and beyond have contacted us about starting services and, subject to reaching satisfactory agreement with them, we plan to also launch flights from Heathrow to Leeds-Bradford, Rotterdam and Zagreb and increase frequencies to existing key destinations," he said.
"Consultation continues with bmi [Regional] mainline staff and their trade unions about plans to integrate the business into British Airways.
IAG officials recently agreed to sell bmi Regional, which operates 18 Embraer jets throughout the UK and northern Europe, to Sector Aviation Holdings for GBP8 million (US$12.8 million), according to a report by Atlanta-area Air Cargo World.
Shipping Gazette - Daily Shipping News
ZURICH-based Swissport, the global groundhandler, will acquire Flightcare Spain and Flightcare Belgium from FCC Versia pending regulatory approval, thus expanding to become a full-service provider at Brussels Airport and expanding into Spain.
The acquisitions of the Flightcare businesses in Spain and Belgium, which combined handled over 24 million passengers and 287,000 tonnes of cargo in 2011, and employing around 3,000 staff, are "great additions to Swissport's network", said a company statement.
"Spain is a very attractive market, where Swissport has been providing ground handling services since 2000, and the addition of Flightcare's operations in Barcelona, Malaga, Fuerteventura, Valencia, Alicante, Jerez and Almeria will broaden Swissport's ground handling network," said the statement.
Said Swissport CEO Per Utnegaard: "Both these markets offer great potential to Swissport. These are essentially bolt-on acquisitions in two existing core markets for Swissport that perfectly complement Swissport's existing activities in Spain and Belgium and will enable us to grow the business most effectively. We look forward to working with staff, airport operators, and our customers to ensure a seamless transfer of the businesses, and to continue expanding our product portfolio in Spain and Belgium by applying Swissport's highly recognised standards and processes."
Shipping Gazette - Daily Shipping News
SWISS global logistics provider Panalpina is the first warehousing company to operate a cold chain unit at Amsterdam's Schiphol airport under a Good Distribution Practice (GDP) certificate issued by the Dutch Ministry of Health, the company has announced.
GDP ensures that medicinal products are distributed to pharmacists and others without alteration of their properties. Medicinal products need to be stored apart from other goods and under the conditions specified by the manufacturer in order to avoid deterioration, said a company statement.
Panalpina continues to obtain GDP (Good Distribution Practice) certifications at various locations around the world.
Pharmaceutical companies face increasing challenges with official and country-specific rules for storing and transporting temperature-sensitive products, said the Panalpina statement.
The company is operating the only facility for cross-docking and interim storage with airside access at Amsterdam Schiphol Airport with an official GDP certification.
"This is a strong signal to our customers that they can rely on our services. As a GDP certified provider we adhere to the highest quality standards and make it very easy for all of our customers to prove that they have mitigated their risk," said Panalpina global healthcare chief Thomas Berger.
Panalpina's facility at Amsterdam Schiphol Airport has temperature-controlled cells for two to eight and 15 to 25 degrees Celsius. It also offers re-icing services, as well as packaging services for pharmaceutical customers.
Shipping Gazette - Daily Shipping News
DURING the first three months, northern China's Shijiazhuang airport posted a robust year-on-year growth of 21.8 per cent in its cargo throughput to 7,710.5 tonnes, Xinhua reports.
Civil Aviation Administration of China's statistics shows that during the first quarter, China's air cargo throughput fell 7.4 per cent to 1.2 million tonnes. In contrast, Shijiazhuang is thriving with capacity shortage. The airport's outbound domestic cargo increased 10.84 per cent to 2,692 tonnes.
The report said, the airport's satisfactory performance is a result of its efforts in promoting its services in local express and logistics companies and in cooperating with airports in other cities on transshipments. For example, transshipping shipments bound for Guangzhou and Shenzhen via Ningbo and Xiamen airport, those bound for Lhasa via Chengdu. This is said to have been an effective solution to the airport's lack of direct services.
Shipping Gazette - Daily Shipping News
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