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Foldable Shipping Container. The solution of the future?
Foldable shipping containers have been developed for the past few years in order to reduce the inconveniences of dealing with a large amount of empty containers that accumulate in the port facilities. The cost of transport for empty or full containers are not very different, which means that moving the unloaded containers represent a significant cost, adding the extra CO2 emissions. With that in mind, one of the companies that decide to take a step further to solve this situation was Holland Container Innovations, based in Netherland, which began its project as a start-up in 2008. The company designed a 40’ HC foldable container that could reduce its volume by a 25%. In March 2013, HCI obtained the ISO certification and started the production in Asia, with the name 4Fold. In Spain, the firm Navlandis developed another project to create a prototype of a foldable 20’ container called Z Box. The container reduces the storage space by 80% and folds in a “Z” shape. Navlandis says that a 25% of all shipping containers are now empty. Consequently, their solution allows decreasing by 50% the time of storage. Photo: Navlandis ZBox containers can be collected in sets of 5 in the same space that a regular container would occupy, which reduces operations costs by 50% according to the company: “This container will have the same resistance than traditional containers. Additionally, it will be possible to manipulate the units with the same port equipment and with the minimum of human resources, which will make operational costs more competitive,” said Miguel Navalón, CEO of Navlandis. In the US, Staxxon has developed a shipping container that folds into an accordion shape instead of horizontally, which allows the units to be collected in sets of 5 and still meet the ISO standards requirements. This technology saves between $100 and $125 per unit and $500 for 5 units set in transport costs. The company also ensures that these foldable containers are easier to maintain and repair. Photo: Staxxon Are foldable shipping containers the solution for shipping’s future? For more information visit: http://www.navlandis.com/ http://hcinnovations.nl/4fold/ http://staxxon.com/ Sources: http://www.finchandbeak.com/1039/foldable-containers-revolutionary-logistics.htm
Suez and Panama Canals affected by shipping crisis
The sharp decline of oil prices in the last moths has affected the container traffic through Suez Canal and the Panama Canal, in a bid to avoid the high costs generated by the transit through this routes. According to Reuters, in the last 12 months the oil prices have dropped 45% and experts estimate that this year´s prices average will keep around $40 per barrel. This trend is allowing cargo vessels to take the long way round Cape of Good Hope, localized in the southern tip of Africa. New Hope route A report by the firm SeaIntel Maritime Analysis, based in Copenhagen, revealed that since October of 2015, 115 cargo vessels from Asia to the north of Europe and US East Coast travelled around Africa instead of going through Suez Canal. The firm assured that some shipping lines saved as much as $235,000 taking this action. In addition, it doesn´t represent a budget difference during the trip. In the case of the Panama Canal happens the same way. Jorge Quijano, Administrator of the Authority of Panama Canal (ACP) said that in recent times with a high oil price, shipping lines reported that the fuel cost represented a 60% of the operation cost, but now, that percentage has dropped to 20%. The strategy of ACP is focused now on the improvement of port capacity in order to provide an added value to this route. Sources: http://www.cnbc.com/2016/02/26/cargo-ships-could-save-thousands-by-skipping-the-suez-canal.html http://www.panamaamerica.com.pa/economia/el-canal-de-panama-pierde-negocio-por-baja-del-petroleo-1015872
Maersk shares fell 9% after reporting a substantial drop in profits
Weak freight rates and low oil prices environment affected the expectations of Danish giant Maersk Group for last quarter results. The company reported a 43% drop in net profit and early this Wednesday; Maersk shares fell about 9%. The Danish group reported a net profit loss of $326 million compared to last year when the company accomplished a net profit of $755 million. Additionally, the revenue fell 9% to $9,18 billion, staying below the expectations of $9,39 billion. “Maersk Line continues to face challenging market conditions and as a testimony to the situation the container industry saw its first major bankruptcy in 30 years,” the company said, referring to Hanjin’s bankruptcy. Despite Maersk’s efforts to improve operations and reduce costs within their business units, the group’s underlying profit also fell from $622 million in 2015 to $426 million. Maersk Line, the biggest container operator reported an underlying loss of $122 million from an underlying profit last year of $243 million. However, not all were bad news. APM Terminals recorded 7.0% higher volumes and Maersk Line showed a significant volume growth of 11% with a strategy focused on maintaining unit cost below 2000 USD per FFE (Forty-Foot Equivalent). Maersk Group CEO Søren Skou commented briefly on the situation of each Maersk’s business unit: “The Maersk Group delivered an underlying profit of USD 426m in the third quarter of 2016. The result is unsatisfactory, but driven by low prices. We generally perform strongly on cost and volume across businesses. Maersk Line for the second quarter in a row reported a loss due to continued low freight rates, down 16% y-o-y. Freight rates were however up 5.5% q-o-q, for the first time since Q3 2014. Maersk Line performed strongly on volume and unit cost. APM Terminals delivered a result below last year, as we continued to be challenged by low volume growth on a like–for-like basis. For the second quarter in a row Maersk Oil delivered a positive result driven by strong cost performance and production efficiency. Also, Maersk Drilling delivered strong profits, driven by termination fees and good cost performance. The implementation of the new strategic direction and the restructuring of the Group is progressing, and we look forward to sharing further details at the Capital Markets Day on 13th of December,” says Skou. The Group expects a result significantly below last year (USD 3.1bn) and specifies an expected underlying result below USD 1.0bn, according to the press release. Sources: http://www.maersk.com/en/the-maersk-group/press-room/press-release-archive/2016/11/interim-report-q3-2016 http://www.wsj.com/articles/maersk-shares-sink-after-profit-hit-by-weak-freight-rates-oil-prices-1478076992 Photo: Arnold Maersk. Pixabay
10 Must-Have Apps for every maritime industry fan
Technology has become crucial for every aspect of human life, and smartphones play a major role in the how we connect with the digital world. According to the specialized agency for Information and Communication Technologies-ICT (ITU) there are 7 billion mobile devices right now, almost as much as the population of the world. The maritime and logistics industry hasn´t escaped from this trend. Today most of the big companies dedicated to transport and supply chain offer technological tools for more efficient services and immediate control over key information. That´s why we bring you a compilation of some of the must-have apps that every person connected to the maritime industry must have: 1)Lloyd´s List: Lloyd´s List allows users to get the latest news about the shipping industry, markets, insurance, among another topics for free. If you have an active subscription on the website, you will be able to use it as well. Available on: Itunes Store: https://itunes.apple.com/cy/app/lloyds-list/id423725172?mt=8 2) Shipping Advisory: Compiles many useful tools such as: container tracking, statistics, news, etc. All in one click. Available on: Google Play: https://play.google.com/store/apps/details?id=com.shippingAdvisoryApp&hl=es 3) Ship Finder: Ship Finder will allow you to monitor the movement of ships worldwide, including maps and in real time. Available on: Google Play: https://play.google.com/store/apps/details?id=com.pinkfroot.shipfinder&hl=es Itunes Store: https://itunes.apple.com/mx/app/ship-finder-live-vessel-tracking/id319726819?mt=8 4) Rules of the Road: It could be used even without an internet access. Is an effective tool to learn or reinforce your knowledge about navigation rules and procedures. The app was created by experts and has amazing graphics. Available on: Google Play: https://play.google.com/store/apps/details?id=com.iglimpse.rulesofroad&feature=related_apps 5) Shipping Dictionary: Is great for any doubts about the correct definition of any term or acronym from the maritime industry. With a minimalistic and friendly design for the user to enjoy. Available on: Google Play: https://play.google.com/store/apps/details?id=in.blue_whale.dictionary 6) Marine Traffic: Great app for monitoring ships and yatchs in real time, wind reports, port activity. You will also have the option to identify ships on a specific perimeter with augmented reality. Available on: Google Play: https://play.google.com/store/apps/details?id=com.marinetraffic.android 7) iHanjin: With a modern and easy to use design, the app from the korean company Hanjin Shipping is an example of how the shipping industry plays along with this type of technology offering the best information to its clients. With this app, you can visualize all the information related to an specific vessel or container, demurrage and detention rates, events, contact information, etc. Available on: Google Play: https://play.google.com/store/apps/details?id=com.hjs.android 8) Shipping manager: With this amusing simulator, you will be able to create and manage your own shipping company anywhere in the world. Buy new vessels, create new navigation routes, negotiate contracts, manage the staff and more. Available on: Google Play: https://play.google.com/store/apps/details?id=dk.xombat.shippingmanager 9) SOLAS Consolidated: Contains the principles of the International Convention for the safety of Life at Sea (SOLAS) which is one of the most relevant international documents about safety at sea. Given the importance of this instrument, this app could become a basic tool for you. Available on: Google Play: https://play.google.com/store/apps/details?id=com.ort.solas2new 10) First Aid at Sea: This is a useful emergency guide for first aids in case of unexpected events offshore. It contains information about what to do in case of fire, engine fail, helicopter rescue, etc. Available on: Google Play: https://play.google.com/store/apps/details?id=com.safeskipper.FAAS Special mention: 11) VecoGo!: We would like to make a special mention to the app developed by Veconinter C.A, the only company specialized in administrative services for the maritime industry that offers to its clients state- of- the- art technology to access precise information about their operations: demurrage and detention, equipment control, rates and free days, etc. Available on: Google Play: https://play.google.com/store/apps/details?id=codefuel.veconinter.main Itunes Store: https://itunes.apple.com/ve/app/veco-go!/id1033764371?l=en&mt=8
CMA CGM acquires one of Brazil’s container shipping leaders
CMA CGM and Maersk Line announced that they have entered into a binding agreement whereby CMA CGM would acquire Mercosul Line, one of the leading players in Brazil’s domestic container shipping market. With the addition of Mercosul Line, CMA CGM expects to strengthen its service offering to and from South America, most notably in Brazil. The French group intends to develop intra-regional sea transportation links and complementary services such as logistics. Rodolphe Saadé, Chief Executive Officer of CMA CGM, declared: “The acquisition of Mercosul represents a milestone in CMA CGM’s development strategy in South America. It is a well-managed company and we will leverage this platform to expand our footprint and service offerings to and from Latin America, seizing opportunities linked to the high growth prospects in this region. As a result, CMA CGM will be able to propose complete door-to-door services continue providing best-in-class services to its customers.” “Mercosul is a highly respected and well-run company with an excellent fleet and customer value proposition. Its dedicated talents are well regarded both internally and externally. CMA CGM is a good fit for Mercosul and we are confident that they will continue to develop the company going forward,” says Søren Toft, Chief Operating Office, Maersk Line. The deal is subject to Brazilian regulatory approval and the closing of Maersk’s Hamburg Süd acquisition. At the earliest, the integration of Mercosul within CMA CGM will start at the same time as the Hamburg Süd integration, which is expected in Q4 2017. Until then, Mercosul Line will continue business as usual. The parties have decided not to publicly disclose the price of the sale. About Mercosul Line Launched in 1996 and acquired by Maersk in 2006, Mercosul Line is a specialist in the Brazilian internal transport market. Its fleet of four ships operates in Brazil and South America. Mercosul employs 92 land based staff and 160 seafarers. The company reported revenues of 128 million USD in 2016 and offers strong profitability. About CMA CGM CMA CGM, founded by Jacques R. Saadé, is a leading worldwide shipping group. Its 445 vessels call more than 420 ports in the world on all 5 continents. In 2016, they carried 15.6 million TEU (twenty-foot equivalent units). Now headed by Rodolphe Saadé, CMA CGM enjoys a continuous growth and keeps innovating to offer its customers new maritime, terrestrial, and logistical solutions. With a presence in 160 countries and through its 600 agencies network, the Group employs 29,000 people worldwide, including 2,400 in its headquarters in Marseilles. Source: https://www2.maerskline.com/news/2017/06/14/cma-cgm-acquire-mercosul
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Four advantages of sea transport and its importance for world trade
Up to 90% of world’s merchandise are carried by sea and the reason is that there are multiple benefits for foreign trade compared with air, rail or road transport. In an ever-growing globalized economy, the necessity for shipping bigger volumes of cargo in the less time possible is increasing. This has led to the construction of the so-called mega vessels, with the capacity to carry huge amounts of goods into thousands of shipping containers at once. This dynamic benefits the economy of scale and foreign trade, import, and export of all kinds of merchandise and raw materials. “Today, around 90 percent of world trade is carried by the international shipping industry. Without shipping the import and export of goods on the scale necessary to sustain the modern world would not be possible. And seaborne trade continues to expand, bringing benefits for consumers across the world through competitive freight costs. Yet the fact remains that most of the world’s population is not aware of the vital role shipping plays in their everyday lives,” said Koji Sekimizu, Secretary-General of IMO when he announced the theme for International Shipping Day 2016: “Shipping: indispensable to the world”. In this sense, shipping is present in the development of our daily lives, even if we are sometimes unaware of this fact. To help you understand why shipping is the favorite way of transport, here we will show you four reasons: It´s cheaper: Shipping industry has the most competitive freight costs, as is one of the most cost-effective ways of goods transportation through long distances. It´s the ideal way to move big volumes of cargo: Vessels are built to carry huge amounts of goods and raw materials in comparison with the capacity of airplanes or trucks. In addition, shipping allows the movement of liquids, gas and dangerous cargo. For this matter, there are certain regulations to keep the safety of the vessel, the crew, and the cargo. It´s safe: The percentages of losses caused by incidents during transport by sea have dropped until it lowest since a decade according to reports from Allianz. It’s eco-friendly: In comparison with the road transport, the maritime industry is less dangerous for the environment. The shipping industry is responsible for only 12% of the total of pollution generated by human economic activities. Sources: http://marcotradenews.com/noticias/la-importancia-de-la-industria-del-transporte-maritimo-en-el-comercio-internacional-19866 http://www.imo.org/es/MediaCentre/PressBriefings/Paginas/47-WMD-theme-2016-.aspx
Port of Santos expects to set record movement in 2017
The largest port complex in Latin America, the Port of Santos –Brazil– has very positive expectations to move a record 120.6 million tons of cargo in 2017, according to data offered by Santos Port Authority, Companhia Docas do Estado de São Paulo (CODESP). The CEO of the port authority, Alex Olivia, said in a statement that this forecast implies an increase of 6.3% compared with 2016 results when the cargo movement totaled 113,475 million tons. If this goal is accomplished, it will be third largest result ever recorded, behind the results registered in 2015 (119,931 million tons) and 2013 (114,077 million tons). The Port of Santos expects to benefit from the increase of 2016/2017 grain harvest and sugar production. In this sense, Cleveland Lofrano –CODESP director- said that the international demand and favourable climatic conditions will be key factors to increase by 9% the soybean harvest in 2017, part of which will be exported through Santos Port.The information also explains that Santos expects to increase exports and imports by 8.2% and 1.3% respectively in 2017. The bulk solid products are estimated to increase 12.1%, while bulk liquids are expected to increase by 1.2%. The general cargo is also expected to increase by 0.99%. The information also explains that Santos expects to increase exports and imports by 8.2% and 1.3% respectively in 2017. The bulk solid products are estimated to increase 12.1%, while bulk liquids are expected to increase by 1.2%. The general cargo is also expected to increase by 0.99%. “This volume, despite representing a reduction of 5.4 percent in comparison with the one calculated in 2015, mainly due to the significant decrease in corn shipments, was conducted in an adverse global economic scenario, showing the good performance of the Port of Santos, even in adverse situations,” concluded Oliva. Source: Rio Times Online
Transport & Logistics events calendar 2017
The most relevant events for the shipping and logistics sector in one place! We know that if you have a company that offers products or services for the shipping industry, supply chain and logistics, events such as expos, forums and summits are your best chance to build a professional network and get updated information. If that’s your goal, there are some events in 2017 that you cannot miss. They are the most important worldwide and all the eyes are on them. Here’s our new 2017 events calendar for you. Below you will find the links to every event in case you are interested to know more: Download our calendar on PDF! 2017 events calendar Transport & Logistics events calendar 2017: Intermodal Asia +Info http://www.intermodal-asia.com/ Intermodal South America +Info http://www.intermodal.com.br/en/ Break Bulk Europe +Info http://www.breakbulk.com/ Supply Chain & Logistics Summit Expo +Info http://www.sclsummit.com/ Expo Cargo Week +Info http://www.expo-carga.com/ Intermodal Expo 2017 +Info http://intermodalexpo.com/ Africa Logistics Network Annual Meeting +Info http://africalogisticsnetwork.com/ Break Bulk Americas 2017 +Info http://www.breakbulk.com/ Expologística 2017 +Info http://www.expologistica.org/ Intermodal Europe +Info http://www.intermodal-events.com/
5 things to know about demurrage and detention charges
We give you the tools to understand and differentiate these two terms of the shipping industry: They are NOT the same thing: As they are both terms associated with the shipping container use, people tend to get confused about each word, but there’s a difference -Demurrage: The charges will be applied when the customer holds the container inside the terminal for longer than the agreed free days. -Detention: The changes apply to customers that hold the container outside the terminal longer than the agreed free time. Free time, Detention & Demurrage charges may vary from one country to another and from one company to another: You should always check the terms and conditions of the contract with your shipping line to get information about the free days and tariffs. Reefer and dry cargo usually have different rates. For demurrage, the charges start with the first day (calendar days) after free time expires. For detention, the free days start on the date the container leave the terminal gate. Free time days can be extended as per approval of the shipping line. You can also request it to your freight forwarding company. You could incur in port storage charges: If the container stays at the port facilities for longer than the free time (The free days and charges vary for each port), the charges are levied to the shipping line and the shipping line recovers the cost from the consignee. TIPS: Stay ahead of schedule: Knowing your free days in advance, having all your shipping document ready to use and keeping a good communication with your customs broker or freight forwarder will help you avoid these unplanned additional charges. Download our free app VecoGO! for clients and consignees to get all the information about free days, demurrage and detention charges on your smartphone. Sources: http://www.howtoexportimport.com/Difference-between-Demurrage-and-Detention-in-impo-132.aspx https://excelsior.ph/2016/10/19/importer-tips-avoid-shipping-storage-demurrage/ http://shippingandfreightresource.com/difference-between-storage-and-demurrage/
New Shipping line COSCOCS faces big challenges from day one
Just a few days after the official announcement of the new merger between Chinese shipping lines, COSCO and China Shipping, China Cosco Shipping Corporation (COSCOCS) faces big challenges according to some shipping experts who forecast one of the toughest years for the maritime industry. The consultancy firm Drewry expects a combined loss of $5 billion for the global shipping industry this year. Additionally, the shipping analyst Charles De Trenck said to Reuters that the new company must start to shrink in order to stay afloat. COSCOCS in numbers: -COSCOCS represents the 4th biggest container fleet worldwide. -$93,600 million in assets. -$40 million in combined profits from COSCO and CSCL. -4 entities were created based on: containers, finances, terminals and oil-gas. -7.7 percent share of the container market. Even though the shipping line COSCOCS has to date almost 180 thousand workers- which is more than double the workforce of Maersk- the enterprise dismissed layoffs or salary cuts. The market is also estimated to intensify pricing competition, based on previous post-merger experiences. To know more about this topic, read the full article in Reuters website. Sources: http://www.reuters.com/article/us-china-shipping-cosco-idUSKCN0VR0AK http://www.bloomberg.com/news/articles/2015-12-11/china-s-cabinet-approves-merger-of-cosco-group-china-shipping http://www.mundomaritimo.cl/noticias/de-la-fusion-de-cosco-y-china-shipping-surge-el-mayor-actor-del-transporte-maritimo-de-china#.VscLDI61qKc.twitter
Infographic: 4 shipping predictions for 2017
Let´s use this first month of the year to present you some predictions from experts of Talking Logistics about the shipping industry in 2017: More carrier consolidation: According to the logistics blog, the consolidation of shipping lines will continue to grow in 2017. This year, 90% of trans-pacific routes will be managed by the three main alliances: 2M, The Ocean Alliance and THE Alliance. This will also be the case for 96% of the Asia – Europe routes. Vessel Scrapping: About one million TEUs will be delivered this year, but scrapping will stay as a trend as well. Rate imbalance: After Hanjin’s fall, rates took a jump and decreased slowly. Now experts predict another upturn before the Chinese New Year. Bunker prices up: With the rise of oil prices, the expectations are that bunker prices will increase, affecting the rates.
ECLAC: Foreign trade in Latin America and Caribbean region has the worst performance in eight decades
New estimates from the Economic Commission for Latin America and the Caribbean (ECLAC) revealed that the value of the region’s exports in 2016 will fall for a fourth straight year and contract 5%. According to the organization, the reduction in the demand for the products and the growing uncertainty are two key factors that led to these results. However, the indicators did not drop as much as last year. The exports in 2015 fell 15% and imports this year will be reduced 9.4% in comparison with last year, which is similar to 2015 figures (-10%). Similarly, the reduction in intraregional trade is estimated at -10%, with an especially negative trade dynamic among South American economies. The ECLAC assures in its annual report Latin America and the Caribbean in the World Economy 2016, that the region’s dynamic in global exports of goods and services remain stable around 6% in the last 15 years, and even lost ground in sectors such as high-tech goods and business, financial and telecommunications services. The estimates for the period 2017-2020 remains positive, with a modest recovery of an average annual rate of around 3% both for exports (2.9%) and imports (3.1%). Among the recommendations, the report urges that the region’s countries advance with diversification, integration and continue with the mechanisms to facilitate commerce. “We must diversify the productive structure of Latin America and the Caribbean to drive economic recovery. We must continue betting on diversification, on value chains, on production chains as the foundation and on intraregional integration, which are more necessary than ever,” Alicia Bárcena, Executive Secretary of ECLAC, said in Santiago, Chile. The ECLAC also recommended applying industrial and commercial policies that are consistent with the technological revolution and an environmental big push. Source: www.cepal.org
Shipping Lines seeking to adapt to new Panama Canal expansion
Just a month away from the expanded Panama Canal’s inauguration, shipping industry seeks to adapt to this new reality with multi-million investments in port technology and orders for bigger vessels that now will be able to pass through the canal. According to Alphaliner, 214 Post-Panamax vessels will be especially designed to transit through the canal and the Wall Street Journal assures that 14 Panamax vessel have been dismissed so far this year. By the end of 2016, 40 more vessel will be scrapped. Likewise, the Chinese construction company Landbridge Group is planning to invest around $900 million in a new container port in Margarita Island and a logistics center. The project will be developed by China Construction Communication Company (CCCC) and is expected to be completed in 3 years. The new port will have a capacity to accommodate Neo-Panamax vessels and manage 2.5 million TEU’s in a year approximately. A logistics park is also considered to meet the growing demand of logistics services that the expanded Panama Canal will bring. Nowadays the Panama Canal generates 6% of the country’s GDP and a turnover of $1,030 million. USA is the leading country to move cargo through the canal with around 163 billion long tons, followed by China, Chile, Japan and Peru. Countries by cargo traffic through the Panama Canal in 2015. Source: The Panama Canal Authority New locks inauguration: A big event Panama Canal Authorities recently announced that new locks would start operations on June 26th. The country’s Ministry of foreign Affairs said that more than 70 Heads of State and Government heads are invited to the ceremony. “We will invite Heads of State and Governments heads from 70 countries, from the region and also those related to the Panama Canal commercial activities” said the Vice-Minister of Foreign Relations, Luis Miguel Hincapié. After 7 years of work, the spanish conglomerate Sacyr and its associates finished the Panama Canal with a total cost of $3,118 million, which consist on a new set of locks that will allow the transit of vessels with three times more capacity (From 5,000 to 12,000). Some key figures to understand what it takes to build one of the biggest engineering projects of 21st century according to EFE are: Expanded Panama Canal in Numbers: 55 meters- the width of the new locks, which will allow Post-Panamax vessels transit. More than 10 thousand workers of 40 different countries participated in the expansion works. 5 million Cubic meters concrete-Enough to build 2 Keops pyramids or 450 buildings of 20 floors. 220,000 tons of Steel– the same amount to build 22 Eiffel towers. Se estima que las remodelaciones generen a Panamá unos 1.400 millones de dólares durante el próximo año. The Panama Canal Authorities expect the expansion to generate around $1,4 million to the country during next year. Sources: http://www.embajadadepanama.com.ve/noticias/112-mandatarios-de-70-pa%C3%ADses-ser%C3%A1n-invitados-a-apertura-del-canal-ampliado-panam%C3%A1.html http://www.cadenadesuministro.es/noticias/la-ampliacion-del-canal-de-panama-se-inaugurara-el-26-de-junio/ http://www.larazon.es/economia/las-cifras-de-la-ampliacion-del-canal-de-panama-HF12712306#.Ttt1oGA4NNu3uad http://www.panamaamerica.com.pa/content/ampliaci%C3%B3n-del-canal-dispar%C3%B3-los-pedidos-de-barcos-postpanamax [wpdevart_like_box profile_id=”veconinter” connections=”show” width=”300″ height=”550″ header=”small” cover_photo=”show” locale=”en_US”]