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Shipping industry sets ambitious Co2 reduction goals
Jun 22, 2017- (ICS) Four major international trade associations – BIMCO, INTERCARGO, International Chamber of Shipping (ICS) and INTERTANKO – have made a joint proposal to the UN International Maritime Organization (IMO) concerning ambitious CO2 reductions by the international shipping sector, which is responsible for transporting about 90% of global trade and 2.2% of the world’s annual man-made CO2 emissions. The IMO Marine Environment Protection Committee will meet in London this July to begin the development of a strategy for the reduction of the sector’s CO2 emissions aligning the international shipping sector response to the 2015 Paris Agreement’s call for ambitious contributions to combat climate change. In a detailed submission, the industry bodies have proposed that IMO Member States should immediately adopt two Aspirational Objectives on behalf of the international shipping sector: To maintain international shipping’s annual total CO2 emissions below 2008 levels; and To reduce CO2 emissions per tonne of cargo transported one kilometre, as an average across international shipping, by at least 50% by 2050, compared to 2008. In addition, the industry associations have suggested that IMO should give consideration to another possible objective of reducing international shipping’s total annual CO2 emissions, by an agreed percentage by 2050 compared to 2008, as a point on a continuing trajectory of further CO2 emissions reduction. The industry associations assert that it is important for IMO to send a clear, unambiguous signal to the global community that shipping’s regulators have agreed to some ambitious objectives for reducing the sector’s CO2 emissions, in the same way that land-based activity is now covered by government commitments under the Paris Agreement. The shipping industry wants IMO to remain in control of additional measures to address CO2reduction by international shipping and to develop a global solution, rather than risk the danger of market-distorting measures at the national or regional level. Importantly, acknowledging concerns of developing nations about the possible impacts of CO2reduction for trade and sustainable development, the industry submission emphasises that any objectives adopted by IMO must not imply any commitment to place a binding cap on the sector’s total CO2 emissions or on the CO2 emissions of individual ships. The industry associations also highlight that dramatic in-sector CO2 reductions alongside increasing trade would require substantial and sustained research into the development of alternative fossil-free fuels and new technologies – something which they say needs to be identified by the IMO strategy. ——- The full shipping industry submission to IMO can be read here: http://www.ics-shipping.org/docs/default-source/Submissions/IMO/elements-for-inclusion-in-the-imo-strategy.pdf?sfvrsn=0 The 2014 IMO GHG Study identified that, in 2012, 2.2% of the world’s man-made CO2 emissions can be attributed to international shipping. However, the IMO study also estimated that the sector’s total CO2 emissions declined by over 13% between 2008 and 2012 due to technical and operational fuel efficiency measures, despite increasing maritime trade. Source: http://www.ics-shipping.org/news/press-releases/view-article/2017/06/22/shipping-industry-unites-to-propose-ambitious-co2-reduction-objectives-to-global-regulator
Drewry: Charter rates will strengthen because demand will grow faster
According to the shipping consultancy Drewry, dry bulk shipping rates will keep recovering, since the demand will grow faster than fleet supply. The recovery rates will become more prominent in 2019 and 2020, when the International Maritime Organization (IMO) regulations will be implemented, said the London-based firm. The report Dry Bulk Forecaster says that tone mile demand will grow around 3% annually over the next five years. At the same time, fleet supply is expected to grow just about 1% a year over the same period, due to a thin order book and high demolitions resulting from environmental regulations. Demand is likely to improve with the strengthening of iron ore, coal, grain and minor bulk trades. The rise in infrastructure activities in China will support imports of iron ore and other minor bulk commodities. India’s market will also play an important part in the future of dry bulk market, since iron ore exports stand at the forefront and this year is expected to reach 30 Mt, from 4Mt in 2015. “We believe India’s return to the seaborne iron ore market will have wide implications for the dry bulk trade in the coming quarters,” commented Rahul Sharan, Drewry’s lead analyst for dry bulk shipping. “Iron ore exports from India to China that resumed at a fast pace, could reclaim a part of their lost share from Brazil and Australia.” Drewry also said “Indian ports have been dredged further to accommodate Capsizes, but a large part of the ore will still be carried on smaller vessels, providing employment and higher utilization to smaller segments,” added Sharan. Source: http://www.bulkmaterialsinternational.com/htm/w20170802.771444.htm?platform=hootsuite
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Hanjin Shipping on the verge of extinction
The biggest South Korean container shipping line, Hanjin Shipping, decided this Wednesday to file for bankruptcy protection after its creditors closed the door to the possibility of a financial assistance plan. This could be the biggest fall in the history of maritime industry since the United States Lines case in 1986. The announcement was made just after Hanjin’s main creditor; Korea Development Bank (HKD) rejected the shipping lines’ proposition in order to reduce its debts. Meanwhile, the second biggest container shipping line in the country, Hyundai Merchant Marine, indicated that Korea’s government wants them to buy some assets from its rival company, including vessels and crew. The global trade crisis has severely affected maritime sector and Hanjin had a very difficult first semester with losses of 473,000 Million Won or 381 Million Euros. Additionally, China, USA, and Spain ports had blocked access to Hanjin vessels because of concerns that they wouldn’t be able to pay fees, according to a Hanjin representative. “It means one less competitor but it really won’t change the fundamental problem the industry is facing,” said Park Moo Hyun, an analyst at Hana Financial Investment Co. in Seoul. “There will still be the same number of ships. What we really need is a way to cut down on capacity.” Hanjin Shipping is part of Hanjin Group, which is also the owner of Korean Air Lines Co. the third cargo airline in the world. In 2014 Korean Air Lines became the main shareholder with 33% of the shares, but this time, the help has been discarded. The decision of Hanjin’s future is now in the hands of Seul Central District Court. The process could take a couple of months according to Reuters information. Hanjin is part of The Alliance, a group of shipping lines formed in May to compete with the alliance between Maersk Line and Mediterranean Shipping Co. also known as 2M. Sources: http://www.eleconomista.es/empresas-finanzas/noticias/7794888/08/16/El-armador-surcoreano-Hanjin-quiebra-y-expone-la-crisis-de-la-industria-naviera.html http://thestandard.com.ph/business/214861/hanjin-seeks-court-rehab.html http://www.wsj.com/articles/troubled-hanjin-shipping-to-sell-healthy-assets-to-rival-1472611190
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
Top 10 Shipping Lines
Each year there’s a new Shipping Line Top 10, even though it’s of common knowledge that a few manage the world’s shipping volumes, it’s interesting to know about the fleet and cargo movements they hanlde in order to define which would be number 1 every year. In Veconinter we are proud to say that 7 Shipping Lines from the Top 10 work with us, providing them with a high quality service where its effectiveness strengthens the relations each day as the countries were we work together. According to the Top 100 elaborated by Alphaliner, Maersk, MSC, CMA-CGM, Evergreen Line, Cosco Shipping and Hapag-Lloyd are the shipping companies within the first steps of this fierce industry. The APM Maersk Group occupies the first global position, controling the market with 15.3% of a total of 597 ships and a capacity of 2,597,536 TEUs. Follows Mediterranean Shipping Company (MSC), who handles 13.6% of the global market with its 477 ships and a capacity of 2,312,612 TEUs; while the third is CMA CGM Group, with 8.4% and 416 ships that provide a supply of 1,421,686 TEUs.
Is Maersk Line looking to buy Hamburg Süd?
According to the Wall Street Journal, the Danish shipping company Maersk Line is interested in the acquisition of its German peer Hamburg Süd, in order to boost its global presence. “Maersk will be looking into Hamburg Süd should it go on sale,” one person with direct knowledge of the matter said. “They are interested in acquiring the brand, which involves Hamburg Süd’s ships, customers and staff, rather than just cherry picking some vessels.” Hamburg Süd, part of the Oetker Group, is the seventh-largest container-shipping operator world-wide in terms of capacity. The company has 3% share of global container capacity and moves about 600,000 containers in 70 ships. According to different media sources, other potential buyers are the Asian company COSCOCS and Germany’s Hapag-Lloyd. Sources: http://www.wsj.com/articles/maersk-line-looking-to-buy-german-container-shipping-operator-hamburg-sud-1480339168
Latin American port executives project recovery of the sector by 2018
Executives and port authorities from Latin America agreed that a recovery in the Latin American port sector should begin in 2018 after several years in which the concepts “instability” and “uncertainty” were part of the common language in the sector. Mauricio Suarez, first vice president of the Ports and Docks Association, said that Latin American ports could record growth of more than 5% this year if the economic projections for the region are met. Suarez said that ports serve as links to domestic or foreign trade and are mainly due to the growth of Latin American economies. He also mentioned the projections of economic growth of the continent for this 2018 published by CELAC as a dynamic that would increase the movement of cargo through ports, which could reach 5% during 2018. William Elliott, chief of operations, said this year the growth will be moderate in Latin American ports and predicted that the demand will increase investments in infrastructure. Elliott explained that the year 2018 is projected as a period of moderate growth in port activities in Latin America because the economies of these countries will experience 2.2% growth. Rommel Troetsch, former president of the Panama Maritime Chamber, said the good performance at port level in the region will come hand in hand with a greater exchange with Asia and by the economic recovery of some countries. Marcos Baptista, president of the Complexo Industrial e Portuário de Suape, shares the views of Troetsch: “Expectations for 2018 are the best and we believe that the economy will continue to grow”. Edgar Patiño, president of the National Port Authority of Peru, analyzed that the increase in raw materials prices and the greater exchange with the exterior will boost port traffic in Latin America, as well as growth prospects of the world economy and international trade. Enrique Brito, general manager of the Port Terminal Guayaquil, shared Patiño’s idea that the increase in the value of raw materials will have a positive impact on port operations. As a reaffirmation of these positive visions for 2018 for Latin American ports we can observe the movement of Mexican ports at the beginning of this year. Mexican ports started 2018 operating 518,539 TEUs in January, which means an increase of 9.1% compared to 475,080 TEU’s registered in the same month. According to figures from the Ministry of Communications and Transportation, the Pacific ports reached 377,937 TEUs, which represents an increase of 13.5% compared to the 332,947 TEUs handled in 2016. Manzanillo port grew 8.1% with the movement of 239,082 containers, while Lázaro Cárdenas increased its participation by 25.5% with 110,321 units, according to the same Ministry. Sources: http://www.nuestromar.org/65899-02-2018/ejecutivos-portuarios-latinoamericanos-proyectan-recuperaci-n-sector-en-2018 https://portalportuario.cl/puerto-mexicanos-incrementan-91-movimiento-contenedores-enero/
Cosco Shipping Leo will start operating April 10
Cosco Shipping Line, looking to expand their lines, is planning the Cosco Shipping Leo to start operating on April 10 and to join the routes between the Far East and Europe (AEUR3), enabling Cosco Shipping Line to optimize its global maritime routes planning and improve its maritime transport service. The naming ceremony for the Cosco Shipping Leo, ultra-large containership (ULCS) of 20,000 TEU built by Nantong COSCO KHI Ship Engineering Co., Ltd. (Nacks), was held in Nantong, China, on March 22th. The construction period for the ULCS set a new record of these type of containerships for Nacks. Chairman and Party Secretary of Cosco Shipping, Capt. Xu Lirong, Executive Vice President, Mr. Yu Zenggang, and Vice Mayor of Nantong Mr. Lu Weidong, as well as guests and representatives from Cosco Shipping, Cosco Shipping Lines, Cosco Shipping Heavy Industry, Lloyd’s Register, and China 3 cut the ribbon. AEU3 port rotation, in which Cosco Shipping Leo will participate, is Piraeus (Greece), Rotterdam (the Netherlands), Hamburg (Germany) and Antwerp (Belgium). It will offer rapid and stable shipping service from North China, East China and Southeast Asia to the Mediterranean and Northwest Europe. Cosco Shipping Leo, as a sister ship of the previously delivered Cosco Shipping Aries, is the second UCLS in the serial vessels built by Nacks forCosco Shipping Lines. Cosco Shipping Leo started sea trials on March 27. Over just two months, the sister ships were successfully delivered and named. It demonstrated the extraordinary competitiveness of Cosco Shipping in building mega ships in the world. With information from: https://portalportuario.cl/cosco-shipping-leo-comenzara-a-navegar-a-contar-del-10-de-abril/ https://www.marineinsight.com/shipping-news/cosco-shipping-names-its-new-20000-teu-container-ship-leo/ http://www.mundomaritimo.cl/noticias/el-ldquocosco-shipping-leordquo-se-une-a-la-flota-ulcs-de-ldquo0000-teus-de-cosco-shipping-lines
Denmark’s giant Maersk is splitting in two
Reuters– Denmark’s A.P. Moller-Maersk will split into separate transport and energy divisions under a keenly-anticipated revamp announced on Thursday. The 112-year-old conglomerate will focus on its core transport and logistics businesses, comprising Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry. It said it would look for solutions for its oil and oil-related businesses within 24 months. They are to be separated from the main company either individually or in combination “in the form of joint-ventures, mergers or listing.” Maersk Line chief executive Soren Skou, promoted to CEO of the entire company in June, will lead the restructuring and the company has appointed a new group chief financial officer, Jakob Stausholm, effective from 1 December. “Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets,” Chairman Michael Pram Rasmussen said in a statement. “Both face very different underlying fundamentals and competitive environments.” Maersk Line, the world’s biggest container shipping business, is suffering from record low freight rates as growth in global trade has failed to keep pace with a big expansion in shipping fleets. Meanwhile, the group’s oil business is struggling with a 60% drop in crude prices since mid-2014. In August, the group posted a second-quarter net profit of $101 million, lagging the $196 million expected by analysts. Maersk shares have risen more than 20% since June in ahead of the company’s strategic review. At 0718 GMT, the shares were trading up 3.2% at 10220 crowns.
CMA CGM launches new mobile app for customers
CMA CGM app allows its customers to access schedules and plan their shipments The French shipping group CMA CGM marks a further step towards the digitalization of shipping industry with the launch of the new version of its mobile application. The app will allow the carrier’s customers to track shipments, access to all line schedules and the latest company news. The new version is a redesign to make the navigation more intuitive and easy to use. Another important feature is the possibility to get access to customer services. Michel Foulon, Vice President for CMA CGM’s Direction of IT Systems said: “The first version of the CMA CGM application was downloaded more than 16,000 times since its launch in 2015. This new version allows customers to have in their hands new tools that greatly ease their shipments of goods.” The application also allows customers to: Follow their shipments from the port of loading to the port of unloading Access schedules of specific ships or trips in order to plan their shipments Obtain one or more shipping routes between two points, selected optimally by the app out of more than 200 shipping lines and more than 400 vessels from the Group’s fleet Follow CMA CGM Group’s corporate news including new services and rate information This innovation is available on Android and IOs systems and exists in five languages: English, French, Chinese, Spanish and Portuguese. Video: CMA CGM To download the app, visit CMA CGM’s website: https://www.cma-cgm.com/products-services/ecommerce/mobileapp
INFOGRAPHIC: 5 Principles of container weight regulation
container weight verification To get more information about this and other maritime news, we invite you to go to the following websites: http://www.worldshipping.org/ http://www.imo.org/en/Pages/Default.aspx If you want to contact us, write an email to us: firstname.lastname@example.org
Maersk welcomes the largest containership in the world to its fleet
The danish giant Maersk Line’s new addition is the world’s largest container vessel in the world: Madrid Maersk, delivered by the South Korean Daewoo Shipbuilding & Marine Engineering (DSME). According to Alphaliner, the new boxship has a capacity of 20,568 teu, dethroning MOL’ mega-ship “Triumph” just a few weeks later from its release. In a press release issued on March 28th , the Japanese carrier was announcing that the world’s largest containership, MOL Triumph has been delivered from Samsung Heavy Industries Co., Ltd., the first of a fleet of six 20,000 TEU-class containerships for the company. Triumph is equipped with various high-tech, energy-saving technologies that could reduce fuel consumption and CO2 emissions per container moved by about 25-30% when compared to 14,000 TEU-class containerships and also the vessel has also was designed with the retrofit option to convert to LNG-fueled ship. In the case of Madrid Maersk, is the first of eleven Triple E Mark II ships, the last of them will be delivered by the end of 2018. These new ships will be able to stow 24 bays of containers in length and 23 more rows of containers across the deck, increasing the nominal capacity by 12% compared with the previous versions. However, the competition for the largest containership in the world is far from the end. Samsung Heavy Industries will deliver the OOCL Hong Kong very soon to compete with these companies. Sources: http://www.mol.co.jp/en/pr/2017/17018.html Maersk Line quietly adds the world’s largest boxship to its fleet
Copenhagen unveils new container system
Copenhagen Malmö Port (CMP), the container terminal in the Copenhagen Port, has announced the launch of a new logistics system that will provide a better, faster service in the future of the port’s customers. The new Terminal Operating System is called PIC and will allow the clients to connect their own processes with the terminals system and make available all the information about transports/loads for all parties in the transport chain. According to a press release, the CPM’s system went live this morning in the container operations of the Copenhagen port. Povl Dolleris Røjkjær Ungar, COO Port & Terminal Operations in the Copenhagen Malmö Port showed his excitement for the new system´s implementation: “We have been looking forward to the implementation, and are delighted that it is now under way. We are convinced that PIC TOS will enable CMP to offer both customers and collaborative partners even better and more efficient handling in the terminal in the future,” said the COO. PICit, the system’s supplier, will be on site to make sure the operations run perfectly during the transition period: “A large number of parties are affected by a TOS implementation, and it is important that we deliver a satisfactory transition from implementation project to operation which satisfies everybody involved”, says Henrik Højen Andersen, CEO, Sales & Customer Services, PICit. Additional personnel will also be on-site, according to Povl Dolleris Røjkjær Ungar: “As with all changes of the system, some challenges can arise in the initial phase, but we are well prepared and hope that any delays in the coming days will meet with understanding. We will do all we can to ensure that the transition is as smooth as possible for our customers and collaborative partners.” CMP is one of the biggest port and terminal operators in the whole Nordic Region and one of the largest Northern European cruise-ship ports. The company is the major port operator in the Øresund Region and meets demands for the transport of consumer goods, new cars, aviation fuel, building materials, passengers, etc.