“Over a BILLION USD Collected over the past four years for our clients”
“More than 400 employees stationed globally”
Mexico registered a historic trade surplus with the United States
Mexico reported a historical trade surplus with the United States by achieving an accumulated growth of 9.6% between January and November 2017, the highest growth in that period of any country with respect to the United States. The data, released by the US Census Bureau, places Mexico in the second position of trade surplus regarding the United States with 65,683 million dollars in the first 11 months of 2017. The 2017 is the highest positive balance of the Aztec country since 2007, when a balance of 68,131 million dollars was reported. Mexico exports to the United States between January and November totaled 288,594 million dollars, while purchases from the neighboring country totaled 223,270 million dollars. However, it maintained its share of the total of imports from the United States: 13.4%. Only in November, the trade surplus of Mexico with the United States was 5,98 billion dollars, a growth of 2.1% compared to the same month of 2016. The United States accumulated a trade deficit of 513,600 million dollars in the first 11 months of the year, a growth of 11.6% with respect to that recorded in the same period of 2016. The country with the largest trade surplus with the United States is China, which registered a positive balance of 344,419 million dollars and a growth of 7.8% between January and November of 2017. In third place was Japan, with a trade surplus of 63,320 millions of dollars. The results of the US trade balance are given a few weeks from the start of the sixth round of negotiations of the North American Free Trade Agreement, which will take place from January 23 to 28 in Montreal, Canada. Sources: https://www.eleconomista.com.mx/empresas/Mexico-marca-superavit-comercial-historico-con-EU-20180107-0070.html https://www.opportimes.com/comercio/mexico-aumento-10-4-superavit-comercial-estados-unidos/
Logistics and Transport Events Calendar 2016
Are you a fan of logistics, transport or maritime industry? Do you or your company plan to attend different events this year to get some exposure? Then, this is the right calendar for you. Check it out!
Maersk and Alibaba join forces
(Vía Splash 24/7) In a revolutionary first for container shipping, Denmark’s Maersk Line has teamed up with Alibaba, China’s online purchasing equivalent to Amazon. Chinese customers will now be able to book space on Maersk ships, a first for the industry and one that potentially removes many freight forwarders as middlemen. Maersk told Reuters today that it had begun offering the service to Chinese shippers on Alibaba’s OneTouch booking website from December 22. Acquired by Alibaba in 2010, OneTouch is aimed at small and medium-sized Chinese exporters with online services such as customs clearance and logistics. Source: http://splash247.com/maersk-alibaba-join-forces/
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Why does CMA CGM wants to buy NOL?
Since December 2015 world’s third largest container shipping company CMA CMG made an offer of $2.4 Billion to acquire Neptune Orient Lines Limited (NOL) the largest SouthEast Asia’s container shipping company. The deal would allow the French company to consolidate its market position in strategic shipping routes like the Transpacific, Intra-Asia and Indian subcontinent. The new fleet of 563 vessels would have a capacity of 2.35 thousand TEU’s and a market share of 11.5%. Offering all aspects of global transportation, NOL and its core business APL is the largest shipping line listed on the Singapore’s exchange. On its 2015 Annual Report, NOL’s chairman Kwa Chong Seng justified NOL’s sale. Given the poor macroeconomic conditions, the acquisition of NOL by CMA CGM comes at the right time: The combination of a weak demand growth with overcapacity and the drop of freight rates has led to a disappointing forecast for the Singapore-based company. “To get back to sustainable growth and profitability on its own, NOL needs to achieve a better cost position through greater economies of scale. This would require significant additional equity investment at a time when returns in the industry are weak,” said NOL’s chairman. The CEO also explained that the decision was made after a thorough consideration and with the vision of improving NOL’s core liner business. On 2015 APL carried 13% less volume and its revenue fell 24% to US$5.4 Billion. The company keeps its focus on saving costs at all levels by reducing fuel consumption, increasing productivity and vessel operations. APL key numbers on 2015 Annual Report According to the Wall Street Journal, if consummated, the deal would rank as the biggest shipping consolidation since 2005, when the Danish shipping conglomerate A.P Möller-Maersk acquired P&O Nedlloyd for about $3 billion. Here is an infographic that sums up everything you need to know about CMA CGM- NOL merger: Sources: http://www.mundomaritimo.net/noticias/cma-cgm-confirms-takeover-of-nol https://www.nol.com.sg/wps/wcm/connect/a655b534-c9d4-490e-bff0-531c3dcf1217/Full+Annual+Report+2015.pdf?MOD=AJPERES http://www.wsj.com/articles/french-shipper-cma-cgm-to-make-offer-to-buy-neptune-orient-lines-1449454066
Colombian exports jumped in first six months of 2017
According to the National Administrative Statistics Department of Colombia (DANE), the exports ended the first semester of the year 2017 with a positive balance, rising by 20.4%. The agency explained that the total in USD is 17,462 million. For the same period of last year, the Colombian exports reached $14,498.2 million, with a variation of -25.1%. Between January and June 2017, the export of fuels and mining products reported $9,178.2 million, a variation of 33.1%. This result was driven by a strong growth in external sales of oil and oil-derived products. In terms of food and beverages, the exports volume reported a variation of 7%, getting close to the $3,765.5 million. The main products were raw coffee (decaffeinated or not) and coffee husks. The exports in the manufacturing sector reached the $3,518 million. The DANE indicated that the main destiny of Colombian exports was The United States, which had a participation of 30% until June 2017. Other export destinations were Panama, China, Turkey, Ecuador, Brazil, and Netherlands. In June 2017, $2,777.4 million were exported, with an annual variation of 0.8%. This behavior could be explained by a positive trend in four groups of products: manufactures (5.7%), agricultural business, foods and beverages (6.4%), and other sectors (116.7%). According to the President of ProColombia, Felipe Jaramillo, the June numbers “are encouraging results to continue the search of more companies interested on internationalization to markets that are buying more from Colombia, like USA, Costa Rica, Ecuador, Peru, Brazil, Argentina and the European Union”. Sources: https://portalportuario.cl/exportaciones-colombia-aumentan-204-primer-semestre/ http://www.portafolio.co/economia/exportaciones-colombianas-primer-semestre-de-2017-508338 https://www.elheraldo.co/economia/exportaciones-crecieron-204-en-primer-semestre-388691
Panalpina recorded volume growth in Ocean Freight in the first half-year of 2017
The international logistics company Panalpina recently published its results for the first semester of the year, highlighting a robust growth in air and ocean freight. The company said that higher freight rates and margin pressure is continuously changing the market environment, which led to the increase of Panalpina’ EBIT from 34.7 million to 42 million, and a consolidated profit from CHF 21.8 million to CHF 29.9 million for January to June 2017. “Thanks to strict cost management we improved EBIT quarter-on-quarter in the first half-year of 2017 and restored profitability in Ocean Freight in the second quarter,” says Panalpina CEO Stefan Karlen. “With the successful implementation of our new IT system in the key market Germany, we also gained further momentum in our operations transformation program. Panalpina Group: Results for the first half of 2017 The group gross profit decreased 9%, from 736.3 million in 2016 to 673.1 million in the first half of 2017. At the same time, operating expenses fell 6% to 609.8 million. Reported EBIT reached CHF 42.0 million compared to CHF 34.7 million a year before (adjusted HY 2016: CHF 60.8 million) and the EBIT-to-gross-profit margin stood at 6.2%, up from 4.7% (adjusted HY 2016: 8.3%) last year. The reported consolidated profit increased from CHF 21.8 million (adjusted HY 2016: CHF 47.9) to CHF 29.9 million. Air freight volumes increased 7% in the first half of 2017, as the demand for this services pushed up rates. The gross profit overall resulted in 294.6 million, compared to 304.5 million in 2016. Reported EBIT in Air Freight increased from CHF 33.1 million to CHF 39.1 million. In Ocean Freight, Panalpina’s volumes in the first half-year increased 5% year-on-year, which was above an estimated market growth of about 4%. However, gross profit per TEU decreased 12% to CHF 283, resulting in a gross profit overall of CHF 214.6 million. The group’s Logistics gross profit decreased 18% to CHF 163.9 million in the first half-year, but profitability increased further in the meantime: Logistics posted a reported EBIT of CHF 5.4 million for the first six months of 2017, compared to CHF 0.3 million for the same period of last year. Panalpina CEO said the company is confident that the profitability levels will improve, but will keep controlling expenses: “We expect ocean carriers and airlines to be much more disciplined than in previous years in managing transport capacity and sustaining freight rates,” says Karlen. “While we are confident that we can improve unit profitability in Ocean Freight in the second half of the year, unit profitability in Air Freight will remain under pressure. We will therefore concentrate on what we can influence directly: controlling cost very effectively and pushing ahead with our operations transformation program.” Source: Panalpina http://panalpina.com/www/global/en/home/newsroom.html#/pressreleases/increased-volumes-and-higher-reported-profits-2074723
‘Connecting Ships, Ports and People’ is the World Maritime Day theme for 2017
“Connecting Ships, Ports and People” has been selected as the World Maritime Day theme for 2017 following a proposal by Secretary-General Kitack Lim to the IMO Council. Addressing the IMO Council, meeting for its 116th session at IMO Headquarters in London, Mr. Lim said the theme would provide an opportunity to work with developed and developing countries, shipping and public and private sector ports with a view to identifying and promoting best practices and building bridges between the many diverse actors involved in these areas. Key objectives will include improving cooperation between ports and ships, and developing a closer partnership between the two sectors; raising global standards and setting norms for the safety, security and efficiency of ports, and for port and coastal State authorities; and standardizing port procedures through identifying and developing best practice guidance and training materials. “The maritime sector, which includes shipping, ports and the people that operate them, can and should play a significant role helping Member States to create conditions for increased employment, prosperity and stability ashore through promoting trade by sea; enhancing the port and maritime sector as wealth creators both on land and, through developing a sustainable blue economy, at sea,” Mr. Lim said. “The aim is to build on the World Maritime Day theme for 2016, “Shipping: indispensable to the world”, by focussing on helping Member States to develop and implement maritime strategies to invest in a joined-up, interagency approach that addresses the whole range of issues, including the facilitation of maritime transport, and increasing efficiency, navigational safety, protection of the marine environment, and maritime security,” Mr. Lim said. In this way, IMO will be contributing to achieving the United Nations’ Sustainable Development Goals (SDGs) which are a broad response to the challenges facing the world today – increasing world population; climate change; threats to the environment; unsustainable exploitation of natural resources; threats to food security; societal threats posed by organized criminals and violent extremists; and instability leading to mixed migration. “Ultimately, more efficient shipping, working in partnership with a port sector supported by governments, will be a major driver towards global stability and sustainable development for the good of all people,” Mr. Lim said. __________ IMO – the International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. Web site: www.imo.org Press release
Norwegian company focused on autonomous maritime transport is created
Willhelmsen sailing group and tech firm Kongsberg created a joint venture called Massterly, the first sailing company that will focus on autonomous maritime transport, through which they intend to offer a complete value chain for ships with these characteristics, from design and development to systems of controls, logistics services and operations. Thomas Wilhelmsen, Whillhelmsen CEO, noted Norway has taken a leading position in the development of autonomous maritime transport: “through the creation of the new company called Massterly, we take the next step in this path by establishing infrastructure and services to design and operate ships, as well as advanced logistics solutions associated with autonomous maritime operations”. This service will be provided through the establishment of ground control centers to monitor and operate autonomous vessels in Norway and other countries. Geir Håøy, Kongsberg CEO, noted Norway has taken a leading position in the development of autonomous maritime transport: “by creating the new company called Massterly, we take the next step in this path by establishing infrastructure and services to design and operate ships, as well as solutions advanced logistics associated with autonomous maritime operations”. “Autonomy and remote operations are an important development for the maritime industry and Norway has been possible thanks to the close cooperation between the Norwegian maritime group and the Norwegian authorities,” Håøy added. Wilhelmsen noted that the company, currently beginning the development process, sees a significant market for autonomous maritime transport services and digitization of infrastructure and operations in the near future. With information from: https://portalportuario.cl/empresa-que-desarrollara-naves-autonomas-entrara-en-operaciones-en-agosto/ http://mundomaritimo.cl/noticias/massterly-la-primera-empresa-focalizada-en-el-transporte-maritimo-autonomo-se-establece-en-noruega https://sectormaritimo.es/noruega-transporte-maritimo-autonomo
Maersk to buy Hamburg Süd
(Splash247)- Maersk Line has announced that it has reached an agreement with Oetker Group to acquire German line Hamburg Süd. While financial details of the transaction are yet to be revealed, Hamburg Süd has a fleet of around 130 boxships totaling some 600,000 teu in its fleet which VesselsValue estimates is worth $1.4bn. After the completion of the acquisition, Maersk Line says it will have container capacity of around 3.8 million TEU and 18.6% global capacity share. The combined fleet will consist of 741 vessels with an average age of 8.7 years. Søren Skou, CEO of Maersk Line and the Maersk Group, commented: “Today is a new milestone in Maersk Line’s history. I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Süd. Hamburg Süd is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers. Hamburg Süd complements Maersk Line and together we can offer our customers the best of two worlds, first of all in the North – South trades.” Both Hamburg Süd and Aliança will continue as separate brands and serve customers through their local offices. “Hamburg Süd and Aliança have competitive and attractive customer value propositions, which we want to preserve and protect. We wish to maintain the personal touch and engagement they offer their customers. In short, Hamburg Süd and Aliança customers will also be Hamburg Süd and Aliança customers in the future,” said Skou. Maersk has recently said it is after acquisitions rather than ordering new ships. Its last containerline acquisition was back in 2005 when it bought P&O Nedlloyd. The acquisition is subject to final agreement and regulatory approvals, with the deal expected to be closed by end of 2017. Source: http://splash247.com/maersk-announces-acquisition-hamburg-sud/?utm_source=dlvr.it&utm_medium=twitter
CMA CGM launches Black Sea Med Express
The CMA CGM Group is launching the new service Black Sea Med Express, which will offer a weekly connection between the main ports of the Black and Aegean seas with the North of Morocco (Tangier and Casablanca) and Algeria (Annaba) in order to develop the activity between the Mediterranean Sea and the Black Sea with short lines. The route was specifically created in order to respond to increasing trade between the Black Sea countries, Turkey, Algeria and Morocco. A global service offering multiple service possibilities to the countries of Southern and Eastern Europe and transshipment to world markets. CMA CGM offers some of the best transit times between: Constanta connected to Casablanca (Morocco) in 16 days, Ambarli (Turkey) to Annaba (Algeria) in 6 days, Malta to Odessa (Ukraine) in 4 days and Izmir (Turkey) to Malta in 2 days. The Black Sea Med Express service will begin on 21 August in Malta with a fleet of four vessels with a capacity of 1,700 TEU, which will operate in Casablanca, Tangier, Malta, Odessa, Constanta, Ambarli, Izmir, Malta and Annaba. The implementation of the Black Sea Med Express service is directly in line with the CMA CGM Group’s strategy for the development of short lines in the Mediterranean and Black Sea. Sources: http://www.cma-cgm.com/news/1702/cma-cgm-launches-direct-service-to-link-morocco-and-algeria-to-the-black-sea?lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3BUA0KBnAzSQeCGFwUlIs%2FHg%3D%3D
Glossary of shipping terms
The shipping industry seems to have its own language from the outsiders perspective. Sometimes it can be tricky to differentiate some confusing terms, like the difference between demurrage and detention. Here we have some of the most relevant definitions that we took from specialized dictionaries and that will clear a doubt or two: Bill of Landing (B/L): Unique B/L Identifier: U.S. Customs’ standardization: four-alpha code unique to each carrier placed in front of nine digit B/L number; APL’s unique B/L Identifier is “APLU”. Sea-land uses “SEAU”. These prefixes are also used as the container identification. Cargo Manifest: A manifest that lists all cargo carried on a specific vessel voyage. Carrier: Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes. 2.Owners or operators of vessels providing transportation to shippers. The term is also used to refer to the vessels. Consignee is the party shown on the bill of lading or air waybill to whom the shipment is consigned. Need not always be the buyer, and in some countries will be the buyer’s bank. Demurrage: A fee levied by the shipping company upon the port or supplier for not loading or unloading the vessel by a specified date agreed upon by contract. Usually, assessed upon a daily basis after the deadline. Detention: A penalty charge against shippers or consignees for delaying carrier’s equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. Free Time: That amount of time that a carrier’s equipment may be used without incurring additional charges. Freight Forwarder is a person or corporation who arranges transport of goods on behalf of either the seller or buyer. In many cases, the freight forwarder will also consolidate several small shipments into one larger one to take advantage of better freight rates. In most cases the freight forwarder will assume the legal liabilities of acting as a carrier Intermodal: Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems. Non-Vessel Operating Common Carrier (NVOCC): A cargo consolidator in ocean trades who will buy space from a carrier and subsell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service. Notify Party is the person or company to be advised by the carrier upon arrival of the goods at the destination port. Shipper is the person or company who is usually the supplier or owner of commodities shipped. Also called Consignor. Sources: http://www.marineterms.com/ http://www.kkfreight.com/ http://www.dayshare.org/gerasir/glossary-of-shipping-terms-47326199
MSC wins best Asia-Europe shipping line award
Mediterranean Shipping Company (MSC) was awarded as the Best Shipping Line Asia-Europe at the Asian Freight, Logistics and Supply Chain Awards, held in Singapore Marine Bay Cruise Centre. According to MSC press release, the event was hosted and organised by Asia Cargo News, which surveyed about 10,000 readers to find out the best logistics and supply chain companies, based on excellence in customer service, innovation and quality of service. The shipping line said is honoured and grateful for the endorsement, and indicated that this award underlines the company’s strong position in the region. “The award reflects the healthy volume growth of MSC’s services between Asia and Europe, and we are thrilled to share this news with our customers and business partners,” said the statement. MSC is one of the largest shipping lines worldwide, with 480 offices in 155 countries and over 70,000 employees. The carrier has an established fleet of 490 container vessels with a capacity of 3.1 million TEU.
Cosco reveals financial results for Q2 2017
COSCO Shipping International Company Limited announced its financial results for Q2 2017, reporting that the group turnover decreased by 32.2% to $524.7 million from $762.9 million in Q2 2016. At the end of June, turnover from shipyard operations decreased by 31.6% to $516.1 million in Q2 2017, from $754.6 million in Q2 2016; mainly owed to lower revenue contribution from ship repair, ship building and marine engineering Turnover from dry bulk shipping and other businesses increased by 4.7% from $8.3 million in Q2 2016 to $8.7 million in Q2 2017 as the current short-term rates were higher than the charter rates in Q2 2016. Other income increased by 21.4% to $17.9 million in Q2 2017, mainly due to higher interest and rental income. Administrative expenses decreased by 93.2% to $0.9 million. Mr. Gu Jing Song, Vice Chairman and President of the Company said, “The Company’s management has commenced and is actively reviewing potential investment opportunities and the Company will provide updates as necessary at the appropriate time.” As at 30 June 2017, the Group’s gross order book stood at approximately US$5.8 billion with progressive deliveries up to 2020. This order book continues to be subject to revision from any new, cancellation, variation or scheduling of orders that may arise. New orders received in Q2 2017 include 1 FRSU module, and 3 container vessels. The Group expects operating margins on new ship building and offshore contracts to continue to be subject to severe downward pressure as these conditions continue to prevail. Source: COSCO