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Source: Commodity Online
Global maritime container traffic is projected to reach about 411.7 million TEUs by the year 2015. Growth in the market is especially driven by factors such as an increase in exchange of services and goods worldwide, increase in demand for imported goods, liberalization of transportation sector, and technological improvements such as e-commerce and containerization, according to a new report, Maritime Containerization: A Global Strategic Report released by Global Industry Analysts (GIA).
Worldwide maritime container traffic (empty and loaded) nearly tripled in volume during 1995 through 2008. The persistent long-term growth in maritime container freight indicates the sustained global economic activity. The up tick in the worldwide maritime container traffic is credited to a number of other factors including volume of merchandise trade transported via containers, rising trade with Asian trading partners, and the rising importance of merchandise trade to global economic activity. The maritime containerization sector is sensitive to economic cycles, as international globalization and trade is economically driven. Sales volume and revenues of manufacturers is directly proportional to general economic conditions and loaded container TEUs. A nation's GDP stands out as a key growth driver in the container shipping industry, and historic analysis shows definite correlation between economic cycles and container maritime trade. In fact, the container trade tends to be more erratic than GDP trend. The recovery of economy and favorable merchandise imports-exports scenario will cause a resurgence of container throughput at worldwide seaports. US maritime container traffic accounts for nearly 9.7% of the total global market estimated in 2009.
Despite the deteriorating business conditions in the shipping industry in Asia-Pacific, the region promises higher growth than in comparison with the Western countries, which are presently bearing the brunt of the subdued world economic climate. Container shipping in emerging nations such as China and India showcases a stabilized picture, and promises a quick rebound in terms of container traffic, and new builds. The maritime container traffic posts positive growth patterns for the upcoming years, backed largely by increasing use of containerization for shipping bulk cargo, use of advanced computer technology for automating processes and activities, key partnerships among terminal operators, and incremental advancements in technologies governing alternative fuels, and pollution control systems. The growing awareness of energy efficient and environment friendly products among the shippers and consumers along with the government initiatives and legislation are set to generate more opportunities in the market.
Bombardier Transportation completes 100th MOVIA metro car
Bombardier Transportation's new railway vehicle manufacturing site in India has completed this week the production of its 100th MOVIA metro car. Inaugurated in November 2008, the new plant represented a 33 million euros investment and was designed and built from scratch following the most modern industrial standards worldwide. Presently the site is executing the production of a contract to deliver 424 MOVIA metro cars to Delhi Metro Rail Corporation (DMRC).
The new production site can represent 700 new direct jobs dedicated to railway vehicle production, including stainless steel carbody and bogie manufacturing and final assembly activities. In addition, a further 2000 indirect jobs are created in India to respond to the activity increase at Bombardier's local supplier base. All this investment underlines the long-term commitment of Bombardier Transportation to the Indian market with which it has been associated for almost 35 years.
This new site resulted in broader industrial development of the country due to the production requirements requested by Bombardier for its local vendors. In addition, the most advanced manufacturing techniques were here installed, such as spot-welding robots, making Bombardier the first railway company in India to use robotic welding technology for carbody manufacturing.
Bombardier Transportation has been present in India for over 35 years. It has supplied Indian Railways with technologically advanced rail products, such as the WAP5 and WAG9 electric locomotives for passenger and freight applications and the Mumbai Traffic Management System. This system controls the 60-km rail stretch around Mumbai - one of the world's heaviest rail commuter traffic areas - on which the Western Railways runs an impressive number of 1,000 trains everyday on time and safely.
Hamburg Sud survives downturn
German shipping line, Hamburg Sud is planning a capital expendtirue of euros 700 mn in capital expenditure on ships and containers for the next three years. It has survived the crisis of 2009 well, even though its turnover fell 28% to euros 3.2 bn compared to 2008.
Against the backdrop of declining shipment volumes, its container pool was significantly reduced by the return of leased containers and the sale of old owned boxes. In contrast, the slot capacity of deployed vessels, at 304,000 TEU, remained roughly constant. The number of container ships, however, fell by 13% to 96 units due to its replacement of smaller charter vessels by larger new-builds. The fleet operated by the Hamburg Süd Group, with the inclusion of 52 vessels in the tramp division, comprised 148 units, 36 of them Group-owned.
Management commented that the sharp fall in bunker prices relieved the pressure on costs and results. Fuel expenditure fell to roughly $700m, $400m less than in the previous year. Of this figure, approximately three-quarters was attributable to lower bunker prices, and one quarter to reduced consumption as a result of slow steaming and the restructuring of the fleet to larger and fewer units.
Despite the comparatively positive performance of dry tramp shipping, Hamburg Süd was not able to post a profit in 2009
Cargotec receives orders worht Euro 11 mn
Cargotec has received orders worth around Euro 11 million to supply loose container lashings for 17 container ships being built at Samsung Heavy Industries in Korea. Delivery of lashing systems is scheduled to start at the end of 2010, Motorship.com reported.
Cargotec is supplying loose container lashings for two series of mega-sized container ships. The first contract came from United Arab Shipping Company (S.A.G.) with Gulf Co-operation Council, for its newbuilding order of nine 13,100 TEU container vessels. The second contract came from China Shipping Container Line (CSCL), and requires Cargotec to supply eight ship-sets of loose container lashings for CSCL's series of 14,100 TEU container ships.
Motorship.com quoted Tommi Keskilohko, Sales Manager, container ships at Cargotec that both of these orders are extremely important for the company and the CSCL order is the biggest single deal we have won so far in the China area for our lashing business.
.External explosion caused sinking of South Korean naval vessel
A South Korean naval vessel that sank in waters near North Korea likely went down due to an "external explosion," an investigator said in Seoul last week. The stern of the 1,200-ton South Korean Navy corvette Cheonan, which sank March 26 in the Yellow Sea near the maritime border with North Korea, was salvaged Thursday. Reports said the ship was split by an explosion before it went down, leaving 46 of its 104 sailors missing. The other 58 were rescued.
"Rather than an internal explosion, the possibility of an external explosion is very high," Yoon Duk-yong, co-head of the state investigation team looking into the incident, said Friday, Yonhap news agency reported. "But for a final conclusion, it is necessary to make a detailed analysis while leaving all possibilities open."
Yoon, a noted scientist, said the likelihood was low that the explosions resulted from other causes, such as a collision with a reef or "metal fatigue," the report said.
South Korean Defense Minister Kim Tae-young was quoted as saying his government sees the Cheonan incident as "a grave national security issue."
The report said 36 of the missing sailors were found in the recovered stern. Two others had previously been confirmed dead, leaving another eight unaccounted for. Yonhap said experts from the United States and other nations have joined in the investigation of the incident
Nigeria impounds container ship
Nigeria impounded a container ship of unclear ownership and origin that was allegedly laden with toxic waste, customs officials in Lagos said last week.The crew and its agents aboard the vessel, identified as the MV Nashville, docked at the Tin Can Island Port at Lagos, were also arrested and detained, pending an investigation, the officials said.
The MV Nashville, whose ownership and nation of origin were unclear late Friday, was alleged to be carrying 70 used lead batteries and broken televisions, officials cited by the allAfrica.com news Web site said. Mike Zampa, vice president for corporate communications of Singapore's Neptune Orient Lines, told United Press International the ship was in no way related to his company, despite earlier reports it was.
"It is not our ship. We do not own a ship by that name. We have no vessel service to Nigeria. It's wrong information," he said in a phone interview from Singapore. He said he had no idea whose ship it was. UPI was unable to immediately determine the ship's owner, operator, origin or destination. Such ships typically carry their loads in truck-size containers that are sealed intact.
The batteries aboard the MV Nashville were classified as code A1180 under the 1992 Basel Convention, an international treaty designed to reduce hazardous waste movements, specifically from developed countries to less developed countries. The United States is one of three countries that signed the treaty but failed to ratify it. The two others are Afghanistan and Haiti.
A 1988 dumping of 3,500 tons of toxic waste by an Italian firm in a remote Nigerian coastal town Koko in southern Delta State caused death and injury to people and animals and contaminated lakes and rivers. Only after environmental groups and Nigerian officials protested that the industrial world was improperly dumping chemical waste in developing countries did Italy order the toxic waste picked up and returned to Europe.
Accellos says 3PL providers able to manage diverse needs of clients
Accellos, a leading provider of supply chain execution software solutions, has released a case study of its customer Sulco Warehousing and Logistics. The case study illustrates how the third-party logistics provider is able to manage the diverse needs of more than 80 customers in multiple warehouses using Accellos’ third-party logistics software solution, Accellos One 3PL.
Study findings-
Clerical needs were reduced by 50% for receipts and 75% for shipments for the “go-live” account through use of RF and EDI
Direct labor time was reduced by 22% for receipts and 34% for picking/loading orders
Shipping accuracy increased from 92% to 99.8% on movement of up to 650 tons (outbound on a busy day)
Inventory accuracy increased from sub-90% to 99.5%
Inventory control hours dropped by 85%
Billing 80% of receivables with direct data transfer from Accellos to QuickBooks eliminated 10 hours per week of data entry
“With 80-plus customers, we must deal with change constantly, and Accellos now provides us with the flexibility we need to keep up with them,” said Sulco Vice President Tim Amalfa. “In fact, we are able to anticipate changes and put inventory tracking processes in place before our customers complete their own new initiatives. Equally important, we can operate more effectively and economically while we do it.” The full case study can be read at http://www.accellos.com/sulco.
Accellos, headquartered in Colorado Springs, Colorado, is a global provider of logistics, warehouse, third-party logistics, transportation and mobile fleet management software solutions.
OOCL New Zealand and the era of bigger container ships
Exporters welcomed the arrival of the 260 m container ship OOCL New Zealand on Easter Sunday as it cruised into Auckland Haron, the first port on her maiden voyage to New Zealand, according to a report in New Zealand Herald.
Capable of carrying 4578 containers, she is the largest freighter conducting regular services to New Zealand. Shipping companies have drastically slashed services to this country as they try to stem crippling losses - estimated at more than US$20 billion ($28 billion) globally last year.The shortage of space means exporters are having to book up to eight weeks in advance and orders are being bumped and left on the dock during the peak season, which ends next month. Goods are also taking a day or two longer to reach their destination thanks to a shipping company go-slow policy aimed at saving fuel, reducing the shelf life of perishable goods.
So the introduction of OOCL New Zealand's huge capacity is a boon. But she is also a troubling sign of changes in the industry that pose a direct threat to this trading nation's ability to earn its way in international markets.Exporters' fates, and therefore New Zealand's, are tied to the shipping trade, say port bosses. The unacceptable fact, they say, is that trade is being constrained to drive up container occupancy in an attempt to make the route profitable.Another solution to shipping line solvency is bigger vessels. And ships are getting much bigger than OOCL New Zealand.
In December the 5042-container-capable Maersk Detroit docked in Auckland, the port's largest container ship yet. Sixteen vessels with a capacity of more than 5000 containers apiece make their maiden voyages this month, reports the Journal of Commerce Online. The upsizing is driven by economics - bigger ships mean more cargo per vessel and a better price per unit to shipping companies that are haemorrhaging red ink.
Peter Casey, chief executive at Ports of Auckland's owner Auckland Regional Holdings, says it will not be many years before ships such as the monster 11,000-plus-container Emma Maersk are a common sight in the Tasman and the Pacific.
Yet most New Zealand ports can't handle such behemoths. Just two years ago the average size ship was 1500-1800 containers. Several billion dollars needs to be spent to bring the national port infrastructure up to scratch.That's not a bill the nation, let alone the individual ports, can afford. Ports are capital intensive entities requiring huge investment. And yet, port executives concede, that money currently earns a return that is less than the risk-free rate, New Zealand Herald report said.
Ash clouds force businesses to explore other options
With the disruption of flights due to ash clouds, business that rely on just-in-time airfreight in Europe are examing a combination of air, ship and truck as they seek to minimise commercial damage from the flight an across much of northern Europe, according to Financial Times.
The electronic and pharmaceutical industries are among the worst hit by the lack of air transport, and there are likely to be -shortages of some perishable goods, including cut flowers and premium vegetables, FT report said. The disruption will also lead to further escalation of container shipping costs. Businesses would look at the possibility of flying goods to Dubai, often used as a point to transfer goods between air and sea. Goods would then go by ship to Marseille in France Koper in Slovenia or other Mediterranean ports for road transport. (With inputs from IndiaPRWire, PRWeb,WireNews and OfficialWire)
Global maritime container traffic is projected to reach about 411.7 million TEUs by the year 2015. Growth in the market is especially driven by factors such as an increase in exchange of services and goods worldwide, increase in demand for imported goods, liberalization of transportation sector, and technological improvements such as e-commerce and containerization, according to a new report, Maritime Containerization: A Global Strategic Report released by Global Industry Analysts (GIA).
Worldwide maritime container traffic (empty and loaded) nearly tripled in volume during 1995 through 2008. The persistent long-term growth in maritime container freight indicates the sustained global economic activity. The up tick in the worldwide maritime container traffic is credited to a number of other factors including volume of merchandise trade transported via containers, rising trade with Asian trading partners, and the rising importance of merchandise trade to global economic activity. The maritime containerization sector is sensitive to economic cycles, as international globalization and trade is economically driven. Sales volume and revenues of manufacturers is directly proportional to general economic conditions and loaded container TEUs. A nation's GDP stands out as a key growth driver in the container shipping industry, and historic analysis shows definite correlation between economic cycles and container maritime trade. In fact, the container trade tends to be more erratic than GDP trend. The recovery of economy and favorable merchandise imports-exports scenario will cause a resurgence of container throughput at worldwide seaports. US maritime container traffic accounts for nearly 9.7% of the total global market estimated in 2009.
Despite the deteriorating business conditions in the shipping industry in Asia-Pacific, the region promises higher growth than in comparison with the Western countries, which are presently bearing the brunt of the subdued world economic climate. Container shipping in emerging nations such as China and India showcases a stabilized picture, and promises a quick rebound in terms of container traffic, and new builds. The maritime container traffic posts positive growth patterns for the upcoming years, backed largely by increasing use of containerization for shipping bulk cargo, use of advanced computer technology for automating processes and activities, key partnerships among terminal operators, and incremental advancements in technologies governing alternative fuels, and pollution control systems. The growing awareness of energy efficient and environment friendly products among the shippers and consumers along with the government initiatives and legislation are set to generate more opportunities in the market.
Bombardier Transportation completes 100th MOVIA metro car
Bombardier Transportation's new railway vehicle manufacturing site in India has completed this week the production of its 100th MOVIA metro car. Inaugurated in November 2008, the new plant represented a 33 million euros investment and was designed and built from scratch following the most modern industrial standards worldwide. Presently the site is executing the production of a contract to deliver 424 MOVIA metro cars to Delhi Metro Rail Corporation (DMRC).
The new production site can represent 700 new direct jobs dedicated to railway vehicle production, including stainless steel carbody and bogie manufacturing and final assembly activities. In addition, a further 2000 indirect jobs are created in India to respond to the activity increase at Bombardier's local supplier base. All this investment underlines the long-term commitment of Bombardier Transportation to the Indian market with which it has been associated for almost 35 years.
This new site resulted in broader industrial development of the country due to the production requirements requested by Bombardier for its local vendors. In addition, the most advanced manufacturing techniques were here installed, such as spot-welding robots, making Bombardier the first railway company in India to use robotic welding technology for carbody manufacturing.
Bombardier Transportation has been present in India for over 35 years. It has supplied Indian Railways with technologically advanced rail products, such as the WAP5 and WAG9 electric locomotives for passenger and freight applications and the Mumbai Traffic Management System. This system controls the 60-km rail stretch around Mumbai - one of the world's heaviest rail commuter traffic areas - on which the Western Railways runs an impressive number of 1,000 trains everyday on time and safely.
Hamburg Sud survives downturn
German shipping line, Hamburg Sud is planning a capital expendtirue of euros 700 mn in capital expenditure on ships and containers for the next three years. It has survived the crisis of 2009 well, even though its turnover fell 28% to euros 3.2 bn compared to 2008.
Against the backdrop of declining shipment volumes, its container pool was significantly reduced by the return of leased containers and the sale of old owned boxes. In contrast, the slot capacity of deployed vessels, at 304,000 TEU, remained roughly constant. The number of container ships, however, fell by 13% to 96 units due to its replacement of smaller charter vessels by larger new-builds. The fleet operated by the Hamburg Süd Group, with the inclusion of 52 vessels in the tramp division, comprised 148 units, 36 of them Group-owned.
Management commented that the sharp fall in bunker prices relieved the pressure on costs and results. Fuel expenditure fell to roughly $700m, $400m less than in the previous year. Of this figure, approximately three-quarters was attributable to lower bunker prices, and one quarter to reduced consumption as a result of slow steaming and the restructuring of the fleet to larger and fewer units.
Despite the comparatively positive performance of dry tramp shipping, Hamburg Süd was not able to post a profit in 2009
Cargotec receives orders worht Euro 11 mn
Cargotec has received orders worth around Euro 11 million to supply loose container lashings for 17 container ships being built at Samsung Heavy Industries in Korea. Delivery of lashing systems is scheduled to start at the end of 2010, Motorship.com reported.
Cargotec is supplying loose container lashings for two series of mega-sized container ships. The first contract came from United Arab Shipping Company (S.A.G.) with Gulf Co-operation Council, for its newbuilding order of nine 13,100 TEU container vessels. The second contract came from China Shipping Container Line (CSCL), and requires Cargotec to supply eight ship-sets of loose container lashings for CSCL's series of 14,100 TEU container ships.
Motorship.com quoted Tommi Keskilohko, Sales Manager, container ships at Cargotec that both of these orders are extremely important for the company and the CSCL order is the biggest single deal we have won so far in the China area for our lashing business.
.External explosion caused sinking of South Korean naval vessel
A South Korean naval vessel that sank in waters near North Korea likely went down due to an "external explosion," an investigator said in Seoul last week. The stern of the 1,200-ton South Korean Navy corvette Cheonan, which sank March 26 in the Yellow Sea near the maritime border with North Korea, was salvaged Thursday. Reports said the ship was split by an explosion before it went down, leaving 46 of its 104 sailors missing. The other 58 were rescued.
"Rather than an internal explosion, the possibility of an external explosion is very high," Yoon Duk-yong, co-head of the state investigation team looking into the incident, said Friday, Yonhap news agency reported. "But for a final conclusion, it is necessary to make a detailed analysis while leaving all possibilities open."
Yoon, a noted scientist, said the likelihood was low that the explosions resulted from other causes, such as a collision with a reef or "metal fatigue," the report said.
South Korean Defense Minister Kim Tae-young was quoted as saying his government sees the Cheonan incident as "a grave national security issue."
The report said 36 of the missing sailors were found in the recovered stern. Two others had previously been confirmed dead, leaving another eight unaccounted for. Yonhap said experts from the United States and other nations have joined in the investigation of the incident
Nigeria impounds container ship
Nigeria impounded a container ship of unclear ownership and origin that was allegedly laden with toxic waste, customs officials in Lagos said last week.The crew and its agents aboard the vessel, identified as the MV Nashville, docked at the Tin Can Island Port at Lagos, were also arrested and detained, pending an investigation, the officials said.
The MV Nashville, whose ownership and nation of origin were unclear late Friday, was alleged to be carrying 70 used lead batteries and broken televisions, officials cited by the allAfrica.com news Web site said. Mike Zampa, vice president for corporate communications of Singapore's Neptune Orient Lines, told United Press International the ship was in no way related to his company, despite earlier reports it was.
"It is not our ship. We do not own a ship by that name. We have no vessel service to Nigeria. It's wrong information," he said in a phone interview from Singapore. He said he had no idea whose ship it was. UPI was unable to immediately determine the ship's owner, operator, origin or destination. Such ships typically carry their loads in truck-size containers that are sealed intact.
The batteries aboard the MV Nashville were classified as code A1180 under the 1992 Basel Convention, an international treaty designed to reduce hazardous waste movements, specifically from developed countries to less developed countries. The United States is one of three countries that signed the treaty but failed to ratify it. The two others are Afghanistan and Haiti.
A 1988 dumping of 3,500 tons of toxic waste by an Italian firm in a remote Nigerian coastal town Koko in southern Delta State caused death and injury to people and animals and contaminated lakes and rivers. Only after environmental groups and Nigerian officials protested that the industrial world was improperly dumping chemical waste in developing countries did Italy order the toxic waste picked up and returned to Europe.
Accellos says 3PL providers able to manage diverse needs of clients
Accellos, a leading provider of supply chain execution software solutions, has released a case study of its customer Sulco Warehousing and Logistics. The case study illustrates how the third-party logistics provider is able to manage the diverse needs of more than 80 customers in multiple warehouses using Accellos’ third-party logistics software solution, Accellos One 3PL.
Study findings-
Clerical needs were reduced by 50% for receipts and 75% for shipments for the “go-live” account through use of RF and EDI
Direct labor time was reduced by 22% for receipts and 34% for picking/loading orders
Shipping accuracy increased from 92% to 99.8% on movement of up to 650 tons (outbound on a busy day)
Inventory accuracy increased from sub-90% to 99.5%
Inventory control hours dropped by 85%
Billing 80% of receivables with direct data transfer from Accellos to QuickBooks eliminated 10 hours per week of data entry
“With 80-plus customers, we must deal with change constantly, and Accellos now provides us with the flexibility we need to keep up with them,” said Sulco Vice President Tim Amalfa. “In fact, we are able to anticipate changes and put inventory tracking processes in place before our customers complete their own new initiatives. Equally important, we can operate more effectively and economically while we do it.” The full case study can be read at http://www.accellos.com/sulco.
Accellos, headquartered in Colorado Springs, Colorado, is a global provider of logistics, warehouse, third-party logistics, transportation and mobile fleet management software solutions.
OOCL New Zealand and the era of bigger container ships
Exporters welcomed the arrival of the 260 m container ship OOCL New Zealand on Easter Sunday as it cruised into Auckland Haron, the first port on her maiden voyage to New Zealand, according to a report in New Zealand Herald.
Capable of carrying 4578 containers, she is the largest freighter conducting regular services to New Zealand. Shipping companies have drastically slashed services to this country as they try to stem crippling losses - estimated at more than US$20 billion ($28 billion) globally last year.The shortage of space means exporters are having to book up to eight weeks in advance and orders are being bumped and left on the dock during the peak season, which ends next month. Goods are also taking a day or two longer to reach their destination thanks to a shipping company go-slow policy aimed at saving fuel, reducing the shelf life of perishable goods.
So the introduction of OOCL New Zealand's huge capacity is a boon. But she is also a troubling sign of changes in the industry that pose a direct threat to this trading nation's ability to earn its way in international markets.Exporters' fates, and therefore New Zealand's, are tied to the shipping trade, say port bosses. The unacceptable fact, they say, is that trade is being constrained to drive up container occupancy in an attempt to make the route profitable.Another solution to shipping line solvency is bigger vessels. And ships are getting much bigger than OOCL New Zealand.
In December the 5042-container-capable Maersk Detroit docked in Auckland, the port's largest container ship yet. Sixteen vessels with a capacity of more than 5000 containers apiece make their maiden voyages this month, reports the Journal of Commerce Online. The upsizing is driven by economics - bigger ships mean more cargo per vessel and a better price per unit to shipping companies that are haemorrhaging red ink.
Peter Casey, chief executive at Ports of Auckland's owner Auckland Regional Holdings, says it will not be many years before ships such as the monster 11,000-plus-container Emma Maersk are a common sight in the Tasman and the Pacific.
Yet most New Zealand ports can't handle such behemoths. Just two years ago the average size ship was 1500-1800 containers. Several billion dollars needs to be spent to bring the national port infrastructure up to scratch.That's not a bill the nation, let alone the individual ports, can afford. Ports are capital intensive entities requiring huge investment. And yet, port executives concede, that money currently earns a return that is less than the risk-free rate, New Zealand Herald report said.
Ash clouds force businesses to explore other options
With the disruption of flights due to ash clouds, business that rely on just-in-time airfreight in Europe are examing a combination of air, ship and truck as they seek to minimise commercial damage from the flight an across much of northern Europe, according to Financial Times.
The electronic and pharmaceutical industries are among the worst hit by the lack of air transport, and there are likely to be -shortages of some perishable goods, including cut flowers and premium vegetables, FT report said. The disruption will also lead to further escalation of container shipping costs. Businesses would look at the possibility of flying goods to Dubai, often used as a point to transfer goods between air and sea. Goods would then go by ship to Marseille in France Koper in Slovenia or other Mediterranean ports for road transport. (With inputs from IndiaPRWire, PRWeb,WireNews and OfficialWire)
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