QINGDAO port's throughput is expected to increase to 400 million tonnes from last year's 370 million tonnes while its container movement to hit 14.5 million TEU over last year's 13 million TEU this year, the port group's president Chang Dechuang told Xinhua.

The port will put a 400,000-tonne ore terminal into operation this year with an annual capacity of more than 40 million tonnes. Moreover, the port will start construction of an oil terminal and coal terminal with a capacity of 300,000 tonnes.

Source Shipping Gazette - Daily Shipping News

TRANSNET, South Africa's state-owned freight and logistics company, plans to invest a further ZAR10 billion (US$1.32 billion) in the development of Ngqura Port over the next decade.

The announcement comes as South African President Jacob Zuma opened the new deep water Port of Ngqura just outside Port Elizabeth in the Eastern Cape earlier this month.

The additional investment in the port would be used to raise the annual container handling capacity from 500,000 TEU at present to two million TEU. According to Port Technology International, this move would help ease the long-term problem of insufficient container handling capacity in Africa.

The report said Transnet has already invested over ZAR10 billion in the development of the facility, which is said to have been in construction for the past 12 years. The port is a green fields project.

It said the extra investment of ZAR10 billion would finance the construction of two more berths at the port's container terminal, a liquefied natural gas (LNG) facility as well as a bulk and break-bulk berth. Furthermore, the funds would be used to relocate Transnet's manganese export facility to the port from its current location in the Port Elizabeth harbour.

The first two container berths at the Ngqura Container Terminal have been in operation for the last two years.

President Zuma was cited as saying the Ngqura Trade Port would boost South Africa's trade with other countries in the region while supporting the government's long-term economic development plan.

"The planning of the Ngqura has been integrated with that of the Coega Industrial Development Zone, and this will ensure increased benefits for the province and business," said President Zuma. "It has also made it possible for the province to participate in the country's minerals sector."

Source Shipping Gazette - Daily Shipping News

APM TERMINALS, the container port operator unit of AP Moller Group, is to open a EUR150 million (US$198 million) container terminal at Savona-Vado, Italy, west of Genoa and east of Monaco in the first half of 2016.

The public-funded EUR400 million project aims to boost annual capacity to over 800,000 TEU by building a 700-metre long berth with 20 metres alongside with 21 hectares of yard space, serviced by six super post-panamax cranes.

Despite delays caused by "bureaucratic process and public approvals" it has passed the necessary environmental hurdles, said the terminal operator's Vado Ligure manager, Cargo Merli.

Outside of a minor dredging test opposed by local municipality to be brought to court in May, the project will go ahead following test adjustment.

"There are definitely no more 'game-stoppers' at the legal level for the project. We are looking at the creation of 400 jobs when the terminal enters service, rising to around 600 when it reaches full capacity," said Mr Merli, according to UK's Port Technology International.

Source Shipping Gazette - Daily Shipping News

GLOBAL supply chain provider, CEVA Logistics, has signed a five-year contract with specialist retailer of sports clothing and equipments, Forum Sport, to manage 18,000 products and handle about 10,000 orders annually for delivery to stores and homes in Spain.

Forum Sport sells its products through its own stores as well as online and has entrusted CEVA with the management of all its logistics activities. CEVA will be responsible for inbound and outbound logistics, warehouse management, shipment preparation and reverse logistics within Forum Sport's 6,000 square metre warehouse located in Basauri, close to Bilbao and their newly opened 13,000 square metre automated warehouse in Jundiz Business Park, in the city of Vitoria-Gasteiz, Spain.

In order to manage growth in demand, the sporting equipment and clothing retailer has invested in expanding its warehousing capacity to better serve its customers in Iberia.

Diego Llorente, operational director of Forum Sport, said: "We have entrusted the development and management of our logistics activities to CEVA because of their solid experience in the Retail sector and their focus on continuous improvement. This makes CEVA the best partner to support us in making our logistics operations one of the cornerstones for business growth."

Antonio Fondevilla, business development director for CEVA in Iberia, said: "We are delighted that Forum Sport has awarded us the contract to manage their supply chain. Our collaboration with Forum Sport is based on a commitment to supporting their business growth by optimising their supply chain, through continuous improvement and operations excellence."

Source Shipping Gazette - Daily Shipping News

DB SCHENKER Rail has linked the greater Paris area more closely to its European network with the opening of another rail logistics centre on the outskirts of the city in Blanc Mesnil where the company now offers integrated rail logistics solutions for its customers in the steel processing industry.

The collection point for shipments from Germany is Saarbrucken, with services initially running twice a week to the DB Schenker Railport in Survilliers-Fosses, around 30 kilometres north of the centre of Paris. "It is only a short distance from here to the greater Paris area (Ile-de-France), with the final delivery by truck as required by the customer," the company said.

The new service makes use of DB Schenker Rail's European network and, with shipments through France handled by Euro Cargo Rail (ECR), a wholly owned subsidiary of DB Schenker Rail. "It is ideal for the shipment of paper, but also for palliated goods, such as consumer goods and construction materials. Numerous well-known companies from the paper industry and construction materials industry have already shown interest and are now using the new service," the company added.

DB Schenker Rail expects to carry up to 100,000 tonnes of rail freight on this corridor before the end of the year. As a result, the company is already planning to increase the number of trains per week.

Source Shipping Gazette - Daily Shipping News

HONG KONG's Executive Council, the territory's appointed upper house, has endorsed a plan to construct a third runway at Hong Kong International Airport at a cost of HK$136 billion (US$17.5 billion).

The Airport Authority Hong Kong had sought permission to build a third runway in a bid to keep up with the rapid growth in air traffic. The airport's two existing runways are forecast to reach capacity by 2020.

"The Executive Council has approved in principal the airport authority's recommendation to adopt the three-runway system as the future development option for its next stage of planning," said Secretary for Transport and Housing Eva Cheng, according to Reuters.

Ms Cheng said the airport authority has been granted permission to proceed with an environmental impact assessment and draw up plans for the design and financing of the project. The assessment is expected to take two years.

In response to public concerns about the impact of the third runway at Hong Kong International Airport, the Transport Secretary said the government has asked the airport authority to conduct the environmental study in a "strict and professional manner, looking at marine ecology, noise and air quality".

Ms Cheng said the government wants the authority to complete the assessment, design and financial options by the end of 2014, in order for the runway to be built by 2023.

A high-level steering committee will be set up to work with the authority on the project, along with a dedicated team led by the associated policy bureau.

Ms Cheng also emphasised the need for long-term planning for the airport, as air traffic last year already reached the forecast demand for 2013, as stated in the Master Plan 2030.

In response to the government announcement, Hong Kong Air Cargo Terminals Limited (Hactl), the major air cargo handler at the airport, has strongly welcomed the decision to build a third runway at the airport.

Hactl invested US$1 billion in the construction of its SuperTerminal 1 facility at the new airport in 1998 and now handles 70 per cent of general air cargo movement in Hong Kong. It said in a statement that its annual cargo throughput (three million tonnes) already exceeds SuperTerminal 1's original design capacity.

Hactl managing director Mark Whitehead said: "The global air freight market, and the market in this region in particular, is expected to grow in leaps and bounds in the next two decades. HKIA needs to grow to meet the increases in volumes, otherwise its status as the world's No 1 air cargo hub will be under threat."

Mr Whitehead said that the third runway at the airport would mean "airlines will have the room they need to grow here, bringing jobs and prosperity. The density of aircraft movements can be maintained at safe levels, and the avoidance of air traffic congestion will reduce the impact on the environment."

Hong Kong's Cathay Pacific has also praised the government's decision. "We firmly believe the third runway is of critical importance to the sustainability of the Hong Kong economy and, therefore, to the long-term prosperity and well-being of Hong Kong's people. Connectivity with the rest of the world has made Hong Kong what it is today so we must be clear on how we can maintain and grow these links to our future," said Cathay's CEO, John Slosar.

The airline has been making significant investments at its Hong Kong hub, including more than 90 new aircraft on order for delivery up to the end of the decade with a list price of HK$190 billion, a HK$5.7 billion cargo terminal that is scheduled to open in early 2013 and more than HK$3 billion on new products in the air and on the ground.

Sister airline Dragonair's CEO Patrick Yeung agreed: "We believe that Hong Kong as a whole will benefit from the enhanced capacity in our home hub, further boosting the development of the aviation industry which makes such a significant contribution to the city's economy."

Source Shipping Gazette - Daily Shipping News

HOLLYWOOD's biggest stars have chosen to fly with Virgin Atlantic ever since its first commercial flight over 27 years ago and now stars of the big screen of a different breed are being welcome onboard by Virgin Atlantic Cargo too.

Uggie, the 10-year-old Jack Russell Terrier and star of the Oscar-winning silent movie, The Artist, climbed aboard with Virgin Atlantic Cargo for a flying visit between Los Angeles and London to appear on several British television programmes including The Graham Norton Show, BBC News, Channel 5 News, Blue Peter and Newsround.

Since 2003, when Virgin Atlantic was the first airline to fly pets directly from the USA to London Heathrow under the Pet Travel Scheme, their dedicated team has successful managed the travel arrangements for over 14,000 dogs and cats to and from destinations across their international network, including the United States, Dubai, Hong Kong, South Africa, the Caribbean and Australia.

Helen Evans, shipping manager for Virgin Atlantic Cargo, said: "We treat pets with the same special care and attention we give to our passengers. We know how important our furry travellers are to their owners and we pride ourselves on offering a service second to none which is why we get many repeat bookings.

"My team ensure pets and their owners are looked after from start to finish, that is why we only fly pets within Virgin's own network and, in the UK, it's my team that take care of all documentation and customs clearance requirements to make sure pets are safely reunited with their owners as quickly as possible."

Source Shipping Gazette - Daily Shipping News

GLOBAL supply chain provider, CEVA Logistics, has acquired a 42,735 square-metre facility in Southern California and has signed on its first customer by inking a multi-year contract with Masco Corporation, one of the world's largest manufacturers of brand-name consumer products for the home and family.

The company said the facility is strategically located within three miles of the Ontario airport and one mile of major interstate arteries, making it an ideal hub for west coast distribution. It can currently handle 300 trailers with its 50 doors and there are plans for expansion.

As the first customer at this facility, Masco Corporation has signed a multi-year contract with CEVA to manage west coast distribution and logistics services for several Masco subsidiaries in the US.

Rick Thomas, CEVA's senior director of business development, said: "This facility is really top-notch and our partnership with Masco signifies a true win-win for all who are involved. The solution our teams have come up with provides Masco with the best combination of service, capability and cost."

"Our team has worked diligently to ensure that we're providing Masco a unique value proposition and the level of service Masco was looking for. This opportunity builds a strong footprint for CEVA providing a significant growth opportunity in consumer and retail goods distribution," said Andy Allen, director of business development for CEVA.

Source Shipping Gazette - Daily Shipping News

With vessel designs for 22,000 TEU capacity vessels now drawn up, Crane & Engineering Services Managing Director Halfdan Ross suggests quay solutions at TOC Asia Conference.


Hong Kong - APM Terminals Crane & Engineering Services’ Managing Director, Halfdan Ross, discussed solutions to the challenges presented by the latest and future generation of Ultra-Large Container Vessels (ULCV) that confront port and terminal operation and design at the TOC Container Supply Chain Asia Conference in Hong Kong.

Addressing the topic “Terminal Planning & Operations: Driving New Performance Efficiencies”, Mr. Ross examined issues and solutions applicable to quay cranes intended to accommodate the larger vessels entering into service in the global container fleet, as well as the design or reinforcement of the quays themselves.

“While none have been ordered yet, studies have been completed on the feasibility of constructing containerships with a 22,000 TEU capacity” noted Mr. Ross, adding “so planning for crane and other infrastructure support to accommodate such vessels and their container volumes is a very necessary exercise for any major hub port”.

As of February 1st there were 153 containerships on order with capacities in excess of 10,000 TEUs, including 20 of the 18,000 TEU capacity EEE Class vessels ordered by Maersk Line, the first of which is expected for delivery next year. There are currently 121 vessels of 10,000 TEU capacity and above in service.

“There are issues of structural stiffness, weight, visibility and wind load which all must be taken into account with cranes of such dimensions, along with the question of upgrading existing equipment or installing new cranes entirely” explained Mr. Ross.

Improved engineering, camera-assisted and remote control of the crane operations were some of the solutions presented, though increased power requirements may also pose obstacles, particularly in emerging market areas with power generation or supply issues.

CES has been playing a major role in maintaining the readiness of the APM Terminals Global Port and Terminal Network for handling ULCVs such as the EEE Class vessels at key load centers and hub facilities.

“The point is that ultra-large vessels are already in service, and even larger vessels will follow, and so the time to prepare the necessary terminal and quay infrastructure is now” said Mr. Ross.

Source APM Terminals

Following record profits in 2010, the year 2011 began initially very positively. In the course of the year, however, demand declined significantly. The airlines struggled against eroding demand, especially in the major airfreight markets in China and India. “Lufthansa Cargo turned in an outstanding result in a demanding market environment,“ emphasised Chairman Karl Ulrich Garnadt. That success is chiefly attributable to cost discipline, a broad product range and flexible capacity steering dictated by demand. In the past business year, Lufthansa Cargo increasingly switched capacities from Asia to North America and included new and attractive destinations in its route network. On the back of those measures, the cargo carrier significantly boosted revenues and tonnage. Earnings rose by 5.3 per cent to 2.9 billion euros. The operating profit amounted to 249 million euros, the second-best in company history.

Chairman Karl Ulrich Garnadt pointed out that investment in new products and a strong focus on quality had also contributed to company success. “We raised our quality level markedly again during the year and attained top marks anew in all areas. We will stay on that path and further expand our quality lead.“ That is evidenced for example by our investment in the Lufthansa Cargo Cool Center for temperature-controlled shipments at Frankfurt Airport, he said.

With the “Lufthansa Cargo 2020“ programme launched last year, the company has clearly defined its long-term strategy, explained the Chairman. With orders for new Boeing 777 freighters, the upgrading of the IT platform, plans for a new logistics center in Frankfurt to replace the existing 30 year-old facility as well as other long-term projects, the key markers are in place to ensure that the company remains industry leader also in 2020.

At the same time, Lufthansa Cargo CEO Karl Ulrich Garnadt was emphatic about huge challenges confronting the airfreight industry in the coming years. The EU’s unilateral stance on emissions trading is notably hitting European airlines and distorting competition. The continuing lack of uniformity in global security standards in the air cargo business as well as the slow certification of known consignors in Germany are threatening to inhibit growth.

With all that, the principal challenge facing Lufthansa Cargo is still the possibility of a permanent ban on night flights at Frankfurt Airport. “There is a real danger of Frankfurt losing its position as the best and most attractive airfreight hub in Europe,” emphasised Garnadt. A blanket
night-flight ban of six hours, daily, would severely disadvantage the competitive standing of companies operating at the Frankfurt base. Round-the-clock handling of express cargo is imperative for those companies. A permanent night-flight ban would deprive Lufthansa Cargo alone of major express connections and cost the company a yearly 40 million euros. “Germany and the Rhine-Main region around the airport live from exports and international trade,“ Garnadt remarked. “Severing the world’s seventh biggest air cargo airport and major express hub for a quarter of a day from international goods flows would have a drastic impact on producing companies and the entire logistics industry. The victims are companies based in Frankfurt and thousands of employees.”

Moreover, Peter Gerber, Lufthansa Cargo Board Member Finance and Human Resources, pointed out that only financially healthy operators are in a position to invest in new technologies, such as quieter aircraft. “The prerequisite for that are commensurate operating conditions, allowing companies to plan long-term on a reliable basis.” Lufthansa Cargo has done its homework and is not resting on the laurels of past success. The SCORE earnings improvement programme, now underway across the entire Lufthansa Group, is also an essential lever underpinning Lufthansa Cargo’s efforts to improve the company’s cost base. “Our aim is to raise earnings by a minimum of 70 million euros yearly from 2015, Gerber announced. That will furnish the foundations for Lufthansa Cargo’s ambitious future plans.

In the initial months of the present year, Lufthansa Cargo has also found – in the Chinese Unitop logistics group – a partner for restructuring the Chinese joint-venture carrier, Jade Cargo International, in which Lufthansa Cargo holds a 25 per-cent stake, Gerber noted.

In the current year, Lufthansa Cargo will continue to concentrate on its core business, Gerber told the press conference in Frankfurt. Last year, the cargo carrier divested its stakes, among others, in Traxon Europe, a provider of electronic solutions for airlines, and LifeConEx, an expert in temperature-controlled logistics.

For the year as a whole in 2012, Lufthansa Cargo is assuming that business will develop on a positive note and is again anticipating an operating result in the region of thee-digit millions. However, it will in all probability not replicate the very strong results attained in 2011.

Key figures in fiscal 2011:

Lufthansa Cargo         2011    2010    Change in %    
Revenues        In €m   2,943   2,795   +5.3   
Operating result        In €m   249     310     -19.7  
Operating margin        %       8.5     11.1%   -2.6 pp
Employees as of 31.12.  Number  4,624   4,517   +2.4   
Freight and mail (tonnes)       In thousands    1,885   1,795   +5.0   
Available tonne-kilometres      In millions.    13,647  12,564  +8.6   
Revenue tonne-kilometres        In millions     9,487   8,905   +6.5   
Cargo load factor       %       69.5    70.9    -1.4 pp

Source Lufthansa Cargo AG


Cargo carrier offers flights to 303 destinations in 99 countries


Lufthansa Cargo is offering customers flights to 303 destinations in 99 countries in the summer flight schedules, beginning on 25 March. New in the cargo carrier’s global network is Chongqing. The Chinese metropolis will be served with four flights weekly operated by Lufthansa Cargo’s MD-11 freighters. Other newcomers in the timetable - also thanks to the expansion of the network of Lufthansa passenger services - are Shenyang in northeastern China and Qingdao (Tsingtao) in Shandong province.

Flights to Detroit are to be stepped up to twice-weekly connections. Services to the US automotive capital commenced initially in January with a once-weekly flight in the Lufthansa Cargo freighter network.

In South America as well, Lufthansa Cargo customers will have a wider choice of destinations and freighter connections. Twice-weekly MD-11 flights ex Frankfurt will be available to Montevideo, capital of Uruguay.

Back in the timetable is Kolkata (Calcutta). Flights were operated to the Indian metropolis last summer but were discontinued in recent months. Once-weekly direct flights from Frankfurt are now available again in the summer flight schedules.

“We have selectively extended our route network and brought new and attractive growth markets into the timetable,“ noted Lufthansa Board Member Product and Sales Dr. Andreas Otto. “We are expanding our presence in China, the world’s biggest airfreight market, and now laying on freighter connections to a total of six Chinese destinations.”

Lufthansa Cargo is furnishing customers with around 9,000 flights weekly to choose from in the summer flight schedules. The cargo carrier’s freighters will be serving a total of 51 destinations, 25 of them in Asia alone and eight in North America.

All freighter flights out of Germany will be operated from Frankfurt. The flights to North America and Asia, which were relocated to Cologne/Bonn temporarily in the winter timetable, will also depart from Frankfurt.

Source Lufthansa Cargo AG


APM Terminals’ Director of Business Development and Infrastructure Investments for the Africa-Middle East Region, Reik Mueller described a new model for transportation planning and development in West Africa in which port and terminal operations shift focus from “container lifts” toward “integrated container transport solutions” at the 3rd Annual Africa Ports, Logistics & Supply Chain Conference which opened March 19.

“Dry ports and inland markets are the untapped, overlooked opportunity markets of the future in Africa” Mr. Mueller stated as he addressed the topic of “Dry Ports and Inland Corridors” on the opening day of the two-day event.

APM Terminals, a leading port and terminal operating company in Africa, currently operates  nine port facilities in eight West African countries, as well as Morocco’s Tanger-Med port, and Egypt’s Suez Canal Container terminal and 35 Inland Services facilities.

Although the International Monetary Fund has projected a 5.5% economic growth rate for  sub-Saharan Africa this year, and a 5.3% increase for 2013, obstacles to trade, particularly concerning cargo movements between neighboring countries, will prevent the full benefit of such economic progress from being felt across the African population.

Nearly one in three African countries is landlocked, accounting for 26% of the continent’s landmass, and 25% of the population, or more than 200 million people, Mr. Mueller noted, indicating that current population growth trends, including the development of population megacities distant from coastal locations will become powerful drivers of inland markets.

“Ports will compete to become preferred gateways to move goods efficiently to inland cities and landlocked countries” said Mr. Mueller, adding “The future prosperity of these nations depends on access to the global economy and new markets; high-growth markets need inland infrastructure and logistics capabilities along development corridors. The ports that can provide the best and most efficient connectivity to those Inland markets will be the winners.”

Citing the success in reducing port congestion through Inland Container Depots (ICDs) now in operation outside of the APM Terminals operated port of Luanda, Angola, the Meridian Port Services joint venture in Tema, Ghana, and the ICD which was opened four km from APM Terminals Apapa, the busiest container terminal in Nigeria and all of West Africa, Mr. Mueller made the case for integrated transportation solutions.

“Importers are not going to wait for improved infrastructure; the cargo will simply move  to other ports” said Mr. Mueller.

Source APM Terminals

Amid high-caliber research output and citation impact, analysis reveals region has unfilled potential to accelerate dementia cure

Philadelphia, PA, London, UK, March 20, 2012 - The Intellectual Property & Science business of Thomson Reuters today announced findings that the quality of dementia research in the United Kingdom (UK) is second in the world only to the United States, despite the low number of scientists working in this field, and that finding a cure can be accelerated by increasing the number of dementia researchers and investment, according to work done using the Thomson Reuters Web of Knowledge(TM). The findings are featured in an Alzheimer's UK Research Report "Defeating Dementia."

The results from the analysis reveal the UK published more research on dementia than any other country except the United States and ranks second in the world after Sweden in citation impact, which is the number of times UK research is referenced in dementia studies around the globe. Despite its high performance and influence, dementia research capacity in the UK is low when compared to cancer, stroke and heart disease. For every dementia research scientist there are six who work on cancer.

"Research output and citation impact in scientific literature is an ideal way to measure the quality and capacity of dementia research," said Karen Gurney, manager of bibliometric reporting at Thomson Reuters and analyst of this report. "This project illuminated an interesting dementia-research landscape in the UK, where this region is clearly playing an influential role despite its size."

The research study was commissioned by the UK's leading dementia research charity, Alzheimer's Research UK, in an effort to raise awareness and increase investment for the underfunded field. The data measuring the quality and size of dementia research in the UK was compiled by Thomson Reuters. Issued by Alzheimer's UK, the report, Defeating Dementia, also outlines 14 recommendations to the UK government based on feedback from scientists working in the field.

"The data provided by Thomson Reuters have been extremely valuable in allowing Alzheimer's Research UK to uncover the facts about dementia research output and quality in the UK," said Simon Ridley, head of research at Alzheimer's Research UK. "We wanted to dig deep into the issue of UK research capacity in this field. The work carried out by Thomson Reuters enabled us to do this and make a strong case for more investment in dementia research."

Rebecca Wood, chief executive, Alzheimer's Research UK, concurs. "Alzheimer's Research UK relies on robust data to support its expertise. The data provided by Thomson Reuters allowed us to present an in-depth picture of UK dementia research in a global context over the last fifty years. It has been very well-received by a range of stakeholders, including government and other research funders."

To view the Alzheimer's Research UK report, Defeating Dementia, visit: www.alzheimersresearchuk.org.

Source Thomson Reuters, IP Solutions

Container shipping lines have idled about 5 percent of global fleet capacity, or 800,000 20-foot equivalent units, as demand for container shipping space slows, Maersk Line CEO Soren Skou said Thursday.

That figure could soon increase to more than 1 million TEUs, a level not seen since 2009, when trade was severely hit by the financial crisis, Skou said in Singapore on his first overseas trip as CEO.

He forecast container demand growth will slow to between 5 and 8 percent in the next few years compared to an average of 10 to 11 percent over the past 25 years as Western economies weaken, manufacturing activity in Asia slows, and products become smaller in size.

"Demand growth will be less than what it was in the past," Skou said in a report by Reuters. "We do not have any lay up ships at this point. But we are certainly not ruling out laying up ships over the summer if the market is growing less than what we expected."

Maersk has already removed 9.5 percent of its Asia-Europe capacity and has decided against ordering ten more Triple-E vessels, the world's largest container ships, to add to its current fleet of 20. Despite the cuts, Maersk Line maintains its dominant 15.5 percent share of the container market.

Maersk has the flexibility to reduce its global capacity by a further 9 percent as the contracts for 20 percent of its chartered vessels are due to expire this year, Skou said.

The container shipping industry, which lost an estimated $5.2 billion last year, according to Drewry Shipping Consultants, is starting to lay ships up in an effort to support the increase in freight rates it has been announcing on the major east-west trade lanes since the beginning of the year.

The overcapacity of containerships and weak demand have led container lines to slash rates in an effort to fill those ships and gain more market share, but this has led to substantial losses.

Last year, overall freight rates were 8 percent lower than 2010 while bunker prices rose some 35 percent, Maersk said.

The world's largest container firm, a unit of Danish shipping and oil group A.P. Moller-Maersk, last month reported a net loss of $504.59 million in 2011, and has forecast more losses in 2012.

Skou, who became CEO two months ago, reiterated the firm's main mission was to restore profitability and reduce market overcapacity by adjusting its fleet and reducing the speed of vessels.

"As an industry, we have been investing ahead of demand. As demand has been slowing down, we do expect to have a situation with excess capacity over the coming years," he said.

"We have to invest less. We have to stop trying to outgrow each other, building bigger and bigger ships."

Maersk Line forecast container demand to slow to between 5 and 8 percent in the next few years compared to an average of 10 to 11 percent over the past 25 years as Western economies weaken, manufacturing activity in Asia slows, and products become smaller in size.

Skou said the company does not have any acquisition plans and does not believe there will be much more consolidation in the industry in the near term

- Peter T. Leach, The Journal of Commerce.

Hanjin Shipping is expanding its operations in the trans-Pacific, adding two joint services, one connecting the U.S. West Coast with the Middle East and South Asia, and the other with Japan.

Hanjin will operate both services as vessel-sharing agreements with other carriers.

Beginning April 27, Hanjin and NYK Lines will deploy 11 vessels with 6,500 20-foot equivalent units of capacity in a new Pacific South & Gulf Service, a direct service from the Middle East and Southeast Asia to the U.S. West Coast. The PSG service will provide a 19-day transit time from Singapore to Los Angeles, 17 days from Laem Chabang to Los Angeles and 13 days from Yantian to the U.S. West Coast.

Hanjin will launch the Japan & Pacific South Express Service on May 10 with Grand Alliance carriers NYK, OOCL and Hapag-Lloyd. The VSA partners will deploy five 3,400-TEU ships in the JPX service, which will use Hanjin’s TTI Terminal in the ports of Long Beach and Oakland.

Source JOC Sailings
 

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