The International Air Transport Association (IATA) called upon governments to work together and with the aviation industry to maximize aviation’s ability to sustainably drive global economic development and job creation.

“Governments and industry share a common interest in aviation’s success. Aviation is a business and a driver of economic and social development that is vitally important to governments. About 3 billion people fly annually. And the nearly 50 million tonnes of cargo transported by air represents some 35% of the value of goods traded internationally” said Tony Tyler, IATA Director General and CEO while speaking at the International Civil Aviation Organization (ICAO) International Air Transport Symposium.

Aviation is a highly regulated industry at the national, regional and global levels. “Sustainability depends not only on what airlines do for themselves but also the policies adopted by governments,” said Tyler. “Regulation that is neither coordinated nor mutually recognized brings a high cost of compliance without corresponding benefits, while maintaining restrictions on airlines’ access to global capital and to markets has kept airlines financially weak,” said Tyler noting the important role of ICAO in delivering solutions to ensure aviation’s sustainability in the broadest of terms.

Tyler cited four areas where policy efforts are needed to ensure aviation’s financial sustainability:

  • Infrastructure:  Modernization of air traffic management is needed to reduce delays, save fuel and cut CO2 emissions.
  • User Charges:  Effective regulation of monopoly suppliers is required to ensure sufficient infrastructure, reasonable returns for operators and cost-efficient prices for airlines, in line with ICAO-agreed principles.
  • Fees and Taxes:  Policies are needed that re-invest aviation tax receipts back into the industry and to ensure that aviation is treated as an economic catalyst not a cash cow.
  • Regulation:  An approach is needed that resists the urge to micro-manage competition, allows airlines to explore different business models and enables market forces to play out.

Additionally, Tyler noted the need for a globally coordinated approach among governments to managing aviation’s 2% contribution to manmade CO2 emissions. “Aviation has committed to three targets, the most ambitious of which is to cut net emissions in half by 2050 compared to 2005. We cannot do that without government cooperation. As aviation is a global industry, that cooperation must be coordinated through ICAO.

That is why Europe’s inclusion of international aviation in its emissions trading scheme is counter-productive. The regional approach distorts markets. And it will not have the positive impact on sustainability of globally coordinated measures through ICAO. On top of that, the unilateral and extra-territorial approach is seen by non-European states as an attack on their sovereignty,” said Tyler.

“Nobody wants a trade war. And I am confident that if Europe participates whole-heartedly at ICAO—being prepared to find solutions with the international community beyond its current plans—ICAO will successfully facilitate a durable solution for environmental sustainability,” said Tyler.

“Aviation connectivity is the infrastructure of our global community. A key component of sustainability must be a pragmatic and comprehensive policy approach focused on building competitiveness to maximize aviation’s economic and social benefits,” Tyler said.

A recent Oxford Economics study reported that aviation globally is responsible for 56.6 million jobs and $2.2 trillion in economic activity—3.5% of global GDP.

IATA

Softlink’s Logi-Sys Enables Delight Logistics’ to Augment its Operational Capability and Service-Level for More Efficient, Cost-Effective Customer Service

Softlink today announced that a leading logistics company, Delight Logistics Pvt. Ltd. is using its enterprise logistics management software Logi-Sys to augment its operational capabilities and service level. Delight logistics deployed the integrated software to improve the efficiency and cost-effectiveness of its logistics operations and enhance service levels

Delight is a leading Logistics company that employs innovative processes & methods with emphasis on excellence and professionalism. The company possesses expertise in Forwarding and Custom Clearing Services, Multi modal transportation & distribution, and Warehousing. Delight is dedicated to making logistics easier for its customers, and as such has placed an emphasis on prioritizing service delivery and the customer experience. Delight started using Logi-Sys since December 2011.

Mr. Vijayan Nambiar, Director, Delight Logistics Pvt. Ltd. says, “Logi-Sys has enabled us to fulfill our commitment to provide the highest standards of customer service and optimized performance across our operations. The advanced monitoring tools, in-built alerts and notifications system of Logi-Sys has enabled us to manage our business efficiently and adhere to timelines at all times.

“Logi-Sys is well-suited for helping logistics companies like ours improve performance and efficiency in a challenging market and I am confident that it will help us in achieving our goals. Using Logi-Sys we are benefiting from its advanced features superb reporting systems that helps us execute our operational strategy, and further advance our business plans” Says Mr. Rajendran, Director, Delight Logistics Pvt. Ltd.

“This implementation of a Logi-Sys from Softlink is part of our initiative to create the highest level of operational efficiency and customer service,” said Mr. Rakesh Pillai, Director, Delight Logistics Pvt. Ltd. “We are very much convinced that the use of such advanced technology will enable greater capabilities to achieve accelerated business growth.”

Logi-Sys helps logistics companies integrate, automate and simplify their freight forwarding, clearing, transportation and warehouse activities providing visibility into operation’s processes. The organization implemented the solution in November and now plans to leverage its strategic planning, performance management, and process. The customized system for electronic data interchange with customers, developed by Softlink, will help Delight to cut delays and ensure faster deliveries. Managers can use Logi-Sys’s advanced functionality to observe patterns in workflow and process, manage adherence to schedules, and identify and rectify activities that adversely impact service levels and handle times.

“We’re pleased to extend our relationship with an existing customer by providing our specialized solution for their logistics service,” says Amit Maheshwari, CEO, Softlink. “Logi-Sys offers valuable features that make logistics processes more streamlined and economical, while also helping the organization maintain its high standards of customer service.”

Delight Logistics Pvt. Ltd.

Sophisticated seismic team trainer deployed at Vestfold University

A cutting-edge new system, designed to train engineers and crew in seismic streamer deck handling has been installed at Vestfold University College in Norway. The Seismic Streamer Deck Operation Trainer was developed as part of Kongsberg Maritime’s leading Offshore Vessel Simulator, in co-operation with Petroleum Geo-Services (PGS) following an agreement signed Q4 2010. The system passed its Site Acceptance Test at Vestfold University College in March 2012 and is now fully operational.

A highly advanced training tool in its own right, the Seismic Streamer Deck Operation Trainer also uniquely utilises the KinectTM for Windows motion sensing device. It is equipped on student stations and tracks their movements in order to display them on a highly realistic depiction of the stern streamer deck. This enables students to physically walk around the deck area, completing set tasks according to the specific exercise. They are equipped with a virtual toolbox presented on a touch screen close by and two are also equipped with a winch/block control device, which is a physical device worn around the waist, allowing them to select and control the correct winch/block for the job – exactly as in real life.

The new Seismic Streamer Deck Operation Simulator is based on the PGS seismic vessel, Ramform Viking. It features an accurate hydrodynamic model, 3D hull design and realistic stern streamer deck to ensure that students relate to the simulated vessel environment during training. The detailed hydrodynamic model behaviour is an important aspect for vessel navigators and operators on the streamer deck, as the operation of winches changes according to conditions and vessel motion.

A typical simulation scenario involves three students; one is assigned supervisor, responsible for controlling winches, using a real winch control terminal interfaced to the simulator. The other two students operate auxiliary winches and are equipped with the virtual toolbox, with all equipment needed to complete the operation simulated on screen. For the streamer deck crew it is important to know the different procedures and to learn what type of tools from the toolbox are needed to dismount the streamer equipment.

“Back-deck operations have been increasing in complexity over the years and personnel are getting less exposure to these critical operations, so we decided that simulator training was a natural step to ensure safety and efficiency,” comments Einar Nielsen, Vice President Projects, Marine Acquisition PGS. “This has been an interesting and challenging project for both parties and I would say the techniques employed with the system represent a step change in simulator training for the offshore environment.”

The installation at Vestfold University College consists of two Instructor stations, one navigation bridge, winch and block control terminals, a common info station for all three students and three streamer deck crew operator stations (student stations). Each student station consists of three 65” TFT-LCD screens mounted vertically, which displays their simulated position on the streamer deck and the actions they are carrying out with the virtual toolbox. The centre display units are fitted with touch screens, allowing the student to open and close valves and winch locks, power on/off winches and blocks together with enabling lines on the helper winches in the scene.

“Seismic streamer deck operations simulator training has been made possible as a result of an extensive R&D effort with PGS, which has resulted in an incredibly life-like depiction of working on a streamer deck,” comments Geir Lilje, Product Manager, Kongsberg Maritime. “The project is part of our on-going development of the Kongsberg Offshore Vessel Simulator, which is driven by direct customer requests and demand for new training possibilities to meet the changing needs of the offshore oil & gas industry.”

Saltwater

Finnair and TAP Portugal announced today the companies will start code-share cooperation on flights between Portugal and Finland. Cooperation begins on April 20, 2012, and customers can immediately make reservations on these new flights.  

With this code-share agreement, Finnair’s code will be added to TAP’s direct flights between Lisbon and Helsinki. This is an attractive additional destination for Finnair customers, including customers flying to Europe via Helsinki from Finnair’s eleven Asian destinations.   

Additionally, new connection opportunities between Helsinki and Lisbon will be made available through new combined code-share services over intermediate points in Europe, such as Brussels, Amsterdam, Geneva and Zurich, with TAP code added to the flights between Helsinki and these cities, and Finnair code added to the flights to and from Lisbon.    

The new code-share services will bring further convenience to customers of both airlines by giving access to a wider flight selection range, one-ticket itineraries, consecutive boarding pass issuance and baggage through check-in.   

TAP started direct operations between Lisbon and Helsinki on June 2010.    

Nasdaqomx

MARSEILLES' shipping giant CMA CGM has announced the reshuffling of its Asia - South Africa and Mozambique services as well as changes to its services from Asia to South Africa and Mozambique in partnership with Maersk.

From April 24, the new CMA CGM Asia -South Africa service network will be covered by the following loop called the New SHAKA2 and will rotate through Shanghai, Ningbo, Fuzhou, Shenzhen-Yantian, Tanjung Pelepas, Port Louis, Durban, Port Elizabeth, Ngqua, Port Louis, Singapore and Guangzhou Nansha New Port. The service will the deploy eight vessels in the 6,500 TEU range and be operated by CMA CGM and Maersk.

From May 8, the new CMA CGM Asia - Mozambique service network will be covered by the New MOZEX2 service, against run by CMA CGM and Maersk with vessels, this time in the 2,200-TEU range and rotating through Tanjung Pelepas, Port Kelang, Point des Galets, Toamasina, Maputo, Beira, Nacala and Port Louis.

"These two new services will replace the current Shaka and Mozex services operated by CMA CGM," said a statement from the company. "This reorganisation is part of CMA CGM's commitment to keep providing its customers with the best quality of service on the Asia - South Africa/Mozambique trades," said a company statement.

CMA CGM is the world's third largest container shipping company and is ranked number one in France. Operating a fleet of 394 vessels, it serves more than 400 ports and has a presence in 150 countries through its network of 650 agencies and branch offices. CMA CGM employs 18,000 people worldwide.

Shipping Gazette - Daily Shipping News

DANISH shipping giant, Maersk Line, has "relaxed" its four-week old booking embargo on the North Europe-Asia trade while warning rates will rise shortly, reports London's International Freighting Weekly.

But the next round of general rate increases (GRI) expected to be US$400-$450 per TEU on the Asia-Europe trade, are planned for May 1.

The suspension of bookings, announced on March 20 and blamed this on a lack of space, was controversial, given the route's status as a less used backhaul route.

In an email to customers, Maersk Line warned customers that "strong space pressure" was expected to continue through April and May, implying that pressure would also apply to prices.

Meanwhile, the wider industry's general restoration of freight rates showed little overall sign of letting up, although the key Asia-Europe component of the Shanghai Containerised Freight Index (SCFI) did slip US$26 to $1,744.

The World Container Index showed no signs of change on the Rotterdam-Shanghai backhaul, which held steady at $608 per FEU, but that did not reflect Maersk's reinstatement of backhaul services, said IFW.

Ahead of the recent transpacific general rate increase (GRI), the SCFI's Shanghai-US west coast and Shanghai-US east coast components saw far bigger moves, with rises of $257 and $309, respectively.

Transpacific carriers had previously proposed a $400 increase to take effect later this month. Ben Gibson, a container rate derivatives broker at London's Clarkson Securities, said market participants still doubted that current demand for freight space was sufficiently high to ensure rate increases would hold.

"The increases follow the pattern already exhibited by the Asia-westbound routes, as carriers seek to restore profitability to the mainline trades," he said.

"Our analysis follows some of the supply trends that have underpinned these rises, but there is a growing feeling in the market that such strength is unsustainable, given current levels of demand," said Mr Gibson.

Shipping Gazette - Daily Shipping News

EMIRATES Shipping Line has announced a rate increase of US$300 per TEU for all cargo from the Far East to the Middle East from May 1.

Emirates Shipping, registered in Dubai and commercially run from Hong Kong, said the increase was made in light of "market developments".

Shipping Gazette - Daily Shipping News

DURING the first three months of this year, seaports in southeast Fujian province handled 2.24 million TEU, an 8.9 per cent year on year increase, reported Xinhua.

Port of Xiamen's throughput increased 10.1 per cent to 1.5 million TEU. Fuzhou port's climbed 2.9 per cent to 384,400 TEU. Meizhou Bay ports handled 363,700 TEU, up 10.8 per cent.

In the same period, Fujian's ports recorded a throughput tonnage of 87.41 million tonnes, up 8.1 per cent year on year. Xiamen handled 36.93 million tonnes, up 2.1 per cent. Fuzhou's throughput increased 11.2 per cent to 22.95 million tonnes. Meizhou Bay ports handled 27.52 million tonnes, up 14.4 per cent.

Shipping Gazette - Daily Shipping News

GERMANY's Hamburg Sud has posted a seven per cent year-on-year increase in revenue to EUR4.8 billion (US$6.3 billion), largely attributable to nine per cent growth in its container business.

Container volume increased to 3.1 million TEU in 2011. Asian services grew well and satisfactory performances were experienced in inter-America and Pacific services. But Mediterranean operations "fell below expectations as did Brazilian exports", said the company.

Hamburg Sud said business "was not satisfactory in 2011." The company experienced six per cent growth to EUR4.2 billion because of a weak US dollar in 2011, "a gain out of the proportion to shipment volume".

"It remains to be seen whether the recovery of freight rates will be lasting, or whether drops will recur, especially with the end of seasonal trade on the Asia routes," said the statement from the company.

The company said 2011 bunker prices were 37 per cent higher in Rotterdam year on year. Serious challenges also included price increases in cargo handling and road and rail transport.

On the plus side, the carrier said it had added new connections between South America, the Mideast with new calls at Tangiers and at Cartagena in Colombia.

Hamburg Sud also signed a vessel sharing agreement with another shipping company last year, which is to be extended into 2012 on its Europe-eastern Mediterranean service. It also added capacity on promising trade lanes between Europe, India and Pakistan.

Looking ahead, the Germany's second largest container carrier, which also owns the Brazilian shipping company Alianca, said: "Even with a moderately positive development in the world economy and world trade, it will be one or two years before global cargo volume and slot capacity regains equilibrium.

But the company noted that carriers are cutting unprofitable services, idling ships, looking to scrap older ships sooner than expected and may well engage in more slow steaming, which will help trim excess capacity in the market.

Shipping Gazette - Daily Shipping News

CHINA's Three Gorges Shiplock facilitated the movement of 18 million tonnes of cargo in the first quarter, experiencing growth in container cargo, living supplies and agricultural materials, reports Xinhua.

Foreign trade container increased 7.6 per cent year on year to 1.83 million tonnes, while living supplies went up 21.9 per cent to 3.07 million tonnes, and agricultural materials increased 31.7 per cent to 2.27 million tonnes. But oil shipments remained flat at 1.09 million tonnes.

Cargo moving upstream to Chongqing came to 11.41 million tonnes, accounting for 63.4 per cent of the total. Upstream cargo was mostly of construction materials such as steels and cement and iron ore. Traditionally, downstream cargo is largely coal, though its volume dropped 50 per cent year on year to 2.7 million tonnes.

Shipping Gazette - Daily Shipping News

TIBET government's statistics show that the region moved 10.4 million tonnes of cargo in 2011, 6.2 per cent more than in 2010, Xinhua reports.

Road cargo traffic increased 2.8 per cent to 9.79 million tonnes. Railway cargo surged 62.5 per cent to 486,300 tonnes. Air freight dropped 17.7 per cent to 12,100 tonnes.

In the same year, the region registered a passenger volume of 39.38 million, which plunged 52.6 per cent. Road passenger volume fell 54.6 per cent to 36.59 million. Railway passenger numbers increased 8.7 per cent to 958,600. Air passenger numbers grew 18.9 per cent to 1.83 million.

As of the end of 2011, there have been 63,108 kilometres of roads in operation in Tibet, 4,859 kilometres more than in 2010.

Shipping Gazette - Daily Shipping News

CONTAINER volume increased one per cent to 30 million tonnes year on year at the Port of Rotterdam in the first quarter, but at the same time dropped four per cent to 2.8 million TEU, said port authorities.

"Economic conditions are putting pressure on imports of container cargo, mainly from Asia," said a port authority statement. "Exports of loaded containers are increasing, however," said the statement from the port.

Sixteen per cent fewer empties went back to the east. "As expected, ro-ro traffic remained stable, in line with the development of the British economy. The fall in general cargo can be attributed to the disappointing imports of steel slabs, raw steel from which semi-manufactured products such as steel plates are made," said the statement.

Overall, quarterly volume was up three per cent year on year at 110 million tonnes with agribulk down 15 per cent, iron ore and scrap were down 14 per cent, other dry bulk was down 19 per cent and other general cargo was off 19 per cent.

But coal was up 15 per cent, crude oil six per cent, mineral oil products up 13 per cent and other liquid bulk eight per cent. Imports of LNG and incoming ro-ro were stable.

"The results are better than expected," said Rotterdam port CEO Hans Smits. "According to the prognosis at the end of 2011, there would be a slight fall in the first half, followed by recovery in the second half, with a stable or slightly increased end result.

"From this perspective, we 'laid on some fat' in the first quarter. Whether or not we'll need to draw on it depends on the German and Dutch economies. The former continues to develop positively, while the latter still gives little reason for optimism. Exports to countries outside the EU, the majority of which travel via Rotterdam, provide a ray of hope," said Mr Smits.

Shipping Gazette - Daily Shipping News

THE National Chambers of Commerce and Industry of Malaysia (NCCIM) is organising a trade mission to Chennai, India and Colombo, Sri Lanka from May 6 to 11.

This mission will be led by Tuan Syed Ali Mohamed Alattas, the president of NCCIM.

The objectives of the mission are: to explore business potentials in India and Sri Lanka; to obtain first-hand information on the practical aspects of doing business in these countries; to promote Malaysian products and services; and to promote joint ventures with local businessmen.

"Both India and Sri Lanka are developing at a rapid phase and thus offer ample opportunities for Malaysian companies in the field of export of merchandise and services, and also investment," a statement from NCCIM said.

Shipping Gazette - Daily Shipping News

SWISS forwarding giant Panalpina has admitted that the sector has earned its reputation for anti-competitive behaviour, but argues that the image is outdated, according to London's Financial Times.

The company, together with 13 others were recently fined EUR169 million (US$225 million) by the European Commission for participation in cartels in international air freight forwarding services.

Panalpina was fined EUR46.5 million, while Kuehne & Nagel, also based in Switzerland, was told to pay EUR53.7 million. Deutsche Bahn and subsidiary Schenker were fined 34.9 million. The various companies operated one of the international cartels based on meetings at an unpretentious Italian restaurant near London and used code words like "fresh marrow" and "asparagus" to disguise illegal surcharges.

In an interview, Panalpina's chief executive, Monika Ribar, admitted that her company and its peers had a record of cartels and other anti-competitive practices. "It is true our industry has gained a poor record, based on problems in the past. But companies have learned to deal much more seriously with the situation in recent years."

Mrs Ribar argued change had been triggered by much tougher laws in Europe and the US, and a greater emphasis on ethics among freight companies.

She pointed out that the latest EU fines reflected past problems that had taken years to investigate fully. "The EU Commission has taken five years to get somewhere. The whole story happened between 2000 and 2005. Our company has changed dramatically in the meantime."

Panalpina, which ranks itself fourth behind DHL, Kuehne & Nagel and Schenker, has had various brushes with regulators. In addition to the latest European crackdown, the group has previously paid almost $82 million in a deferred prosecution agreement under the US Foreign Corrupt Practices Act, after probes into its Nigerian activities prompted it to pull out of the country.

Panalpina has also lost business from government departments and big companies whose policies forbid them from trading with partners sanctioned for anti-competitive or corrupt practices.

"Now as a chief executive in freight you deal more and more with lawyers than with your core business", said Mrs Ribar. Among the changes she has instituted in the company include elevating compliance, with the appointment of a chief compliance officer reporting directly to the CEO, creating much bigger local compliance teams and increasing focus on corporate ethics.

"Companies have learned to deal much more sensibly with the situation," Mrs Ribar said. "At Panalpina, we haven't left a single stone unturned in re-examining the way we do business."

Shipping Gazette - Daily Shipping News

A SERIES of "catastrophic claims' has resulted in a plunge in profits at London transport insurer TT Club, according to its CEO Charles Fenton.

TT Club was much exposed to earthquake in Christchurch, New Zealand, the earthquake/tsunami in Japan, flooding in Thailand as well as facing substantial losses arising from the grounding of the 3,370-TEU Rena off New Zealand in October.

TT Club does 32 per cent of its business with ports and terminals, 23 per cent with ocean carriers and related service providers, containers and chassis equipment as well as 19 per cent with logistics operators.

These claims offset the TT Club's 8.5 per cent increase in premiums to US$181.7 million, compared with $167.4 million in 2010, and led to net profit falling 90 per cent to $1.2 million.

But Mr Fenton said the TT Club's combined ratio of 98.6 per cent remained under 100 per cent, thus payments and expenses were more than offset by income, reported London's Containerisation International.

Said TT Club chairman Knud Pontoppidan: "This is a very important and healthy position to be in, given market conditions as they are."

Mr Pontoppidan also took comfort in the TT Club's record $145.4 million reserves, its good underwriting results and stable financial position.

Shipping Gazette - Daily Shipping News
 

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International business magazine JŪRA MOPE SEA has been published since 1999
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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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