“Over a BILLION USD Collected over the past four years for our clients”
“More than 400 employees stationed globally”
Key trends to watch at Intermodal Europe 2016
You cannot miss some events this year if you are interested in getting up to date information about the future of container industry. Intermodal Europe 2016 (15 -17 November) is one of those occasions. Not only because it gathers some of the most important players in the global shipping industry, but also because of this year the event is taking place in Rotterdam, (Netherlands), home of the largest and smartest port in Europe. Without a doubt, the Port of Rotterdam is a perfect scenario for Intermodal Europe 2016 due to its innovation ecosystem. As a leading port, in Rotterdam, you will find the latest technology trends related to sustainable energy generation, automation, modern infrastructure and design, startups and the list goes on. This year, Tim Power, Head of Maritime Advisors at Drewry will discuss the ‘World Outlook for the Container Shipping Market’, followed by Mike Garratt, who will present an analysis of European container shipping market. Another relevant topic of this event is the wave of consolidations and alliances between container lines. Michel Looten, Director of Maritime at Seabury Cargo Advisory will examine how these changes can help carriers continue with their operations in spite of the market pressures. Intermodal Europe 2016 promises to deliver the trends in international trade, container shipping strategy, and transport logistics with the support of more than 70 experts from all over the world. Container innovation is also one of the most interesting topics that this event will focus on with conferences about “Big Data Tracking and Internet of Things”, “Cold Chain Solutions” and “Container modification and innovation”. “With a dramatically changing business landscape, our three-day conference programme will provide executives with the practical tools they need to stay ahead” explains Sophie Ahmed, Event Director. “They’ll be discussing the hottest topics in the industry which I’m sure will spark insightful debate and provide attendees with knowledge that can be applied to future business strategies.” The exhibition brings together over 140 exhibiting companies, thousands of professional visitors and numerous exhibition features, including an outdoor container park. If you want to participate or attend Intermodal Europe 2016, you just need to register on the event’s website here. Sources: http://www.intermodal-events.com/intermodal-europe-2015-press-releases
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.
What’s the maximum permissible weight for containers?
If you are new to exporting, surely there will be doubts about the maximum amount of cargo that you can load into a shipping container. The maximum container weight is a very important detail to take into account. An excess of cargo weight could lead to extra costs because the cargo will need to be stripped and re-stuffed into two containers, inland costs, etc.at the expense of the shipper’s account. With the SOLAS Convention currently in force, the measures taken against containers overweight have become stricter. SOLAS amendments say the shipper has the responsibility to provide the proper weight verification in order to load the packed container abroad a vessel. The maximum container weight varies depending on the manufacturer and material. The capacity and dimension details can be found in container’s doors and CSC plate. The most common type of dry containers is the 20´and the 40’ made of steel or aluminium. According to the logistics and transport company DVS, the maximum weight for these is approximate: – 20’ DV Container: Tare Weight (Empty shipping container): 2.300 kg/5.071 lb Payload (Maximum cargo weight that acontainer can carry): 25.000 kg/ 55.126 lb – 40’ DV Container: Tare Weight: 3.750 kg/8.268 lb Payload: 27.600 kg/ 61.200 lb High Cube Containers (HC) are used when an extra foot in height is necessary. These are ideal containers to transport light and voluminous cargo. The maximum weight is: -Contenedor de 40’ HC: Tare Weight: 3.940 kg/8.687 lb Payload: 28.560 kg/ 62.974 lb – 45’ HC Container: Tare Weight: 4.820 kg/10.628 lb Payload: 27.860 kg/ 61.431 lb To comply the SOLASregulation, the shipper must provide the verified actual gross mass of the container, which is the total weight of the cargo plus the tare weight of the container. Sources: http://www.dsv.com/ http://www.aralits.com/
Hyundai Merchant Marine to hire Hanjin staff
The South Korean shipping company Hyundai Merchant Marine will hire about 200 workers from its competitors, Hanjin Shipping Co. after the company filed for bankruptcy last year. According to information from PortTechnology, from February 220 former Hanjin employees, including onshore, offshore and overseas staff, as well as ship managers, will be part of HMM workforce. HMM CEO, Yoo Chang-Keun said that the candidates were selected through an individual interview process. He also indicated that the company would provide all the support to the former Hanjin employees to help them in the adaptation process into a new corporate culture. Last December Hyundai declared its intention to increase its market share from 2.2% to 5% for the year 2021. This would be accomplished through different methods that will allow HMM rising revenues and services quality in a period of 2 to 3 years. This includes the agreement settled with 2M alliance, formed by Maersk and MSC. Chang Keun also said that in a medium to long run, the expectations would take HMM to specialize in Asia- US routes, based on previous experiences to promote its influence on the market. Sources: https://www.porttechnology.org/news/hmm_aim_for_5_market_share_by_2021 https://www.porttechnology.org/news/hmm_hiring_hanjin_staff
Demand for shipping containers increases during 2017
According to an article posted by Reuters on Tuesday, shipping containers prices are at the highest levels since October 2015, which can be considered as a clear signal of international trade growth. Shipping rates have increased by a 40% this year with 439 points, according to the Harpex Shipping weekly index. Among the possible causes for this rebound are an overcapacity cut, Hanjin shipping’s recent bankruptcy and the recovery of international trade, which have caused a shipping containers shortage. “The market seems tight… (and) we are urging liners to release more box,” said Willy Lin, chairman of the Hong Kong Shippers’ Council, which represents manufacturers and cargo owners. On the other hand, Asian economies –China, Japan, and India- are rapidly growing as well on this first season of the year. The average export volumes on East Asia (Japan, South Korea, Taiwan and Singapour) increased about 5% in comparison to February 2016, Capital Economics said in a report. In this sense, Rene Pedersen, Asia/Pacific representative in Singapore for the giant Danish carrier AP Moeller-Maersk, said his company expected global container demand this year will rise between 2 percent to 4 percent, compared with just 1.5 percent to 2 percent growth in 2016. “Economies in Europe and the U.S are (also) picking up,” Maersk’s Pedersen said. Read the full article here: http://www.reuters.com/article/us-container-shipping-idUSKBN1750LV
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
Throughput of containerized cargo in Latin America falls 0.9% in 2016
The Economic Commission for Latin America and the Caribbean (CEPAL) released its latest ranking this week, which shows a loss of activity in the ports of the region in 2016, which represents the biggest loss since 2009. On its “Maritime and Logistics Profile,” the UN body revealed an activity deceleration, shaped by five countries mainly: Brazil (-4.4%), Panama (-9.1%), Colombia (-3.6%), Argentina (-6.1%) and The Bahamas (-14.3%). On the other hand, there are the nations that contributed to raising the total volume: Mexico (3.2% rise), Chile (4.8%), Peru (8.4%), Ecuador (4.5%), the Dominican Republic (8.3%), Guatemala (8.8%), Costa Rica (7.3%) and Uruguay (9.5%). The total volume of activity in 2016 reached approximately 47.5 million TEU, which means a drop of 0.9%. Globally, the container port traffic also experienced a decline in activity in 2016. The volumes in the world’s top 100 container ports rose just 1.8% in 2016, to 555.6 million TEU, according to Alphaliner. The causes of growth, deceleration or decline in activity in individual ports vary, says the report. For example, , the ports of Callao in Peru (8.1%), Guayaquil in Ecuador (6.9%), Caucedo in the Dominican Republic (11.1%), and San Antonio (10.0%) and Lirquén (60.1%) in Chile, showed the highest rises in volume due to the success of their projects and their commercial management. In contrast, the sharpest declines in volume of port activity were recorded by the terminals of Buenos Aires in Argentina (-5.7%), Kingston in Jamaica (-5.2%), Freeport in The Bahamas (-14.3%), Santos in Brazil (-6.9%), Cartagena in Colombia (-4.0%), and Colón (-8.9%) and Balboa (-9.2%) in Panama For more information please visit www.cepal.org
IMO rules in favour of 0.5% sulphur cap by 2020
The delegates at the IMO have thrashed out a deal to put a cap on sulphur emissions of 0.5% to be implemented by 2020 in a ruling that has massive ramifications for the global fleet. The ruling surprised many as debate earlier in the week at MEPC70 had dragged on. The decision on sulphur, however, came within three hours of debate this afternoon. The IMO is set to release further details on the ruling shortly. The news was greeted by delegates attending the Danish Maritime Forum in Copenhagen with a spontaneous round of applause. On hearing the news, Maersk Group tweeted: “Global regulations will help create a level playing field for the shipping industry”. Source: Splash 24/7
Blockchain Currency could reach shipping industry
The online magazine Maritime Executive informed that a Hong Kong-based company called 300cubits intends to replace U.S dollars with a token soon to be launched on an open-source, public, blockchain-based platform. The blockchain platform Ethereum runs smart contracts without any possibility of downtime, censorship, fraud or third party interference. It acts as a distributed ledger and can become digital money too, but unlike bitcoin, Ethereum is highly programmable and therefore designed to accommodate the construction of complex applications. “300cubits uses Ethereum to tackle problems in container shipping,” says co-founder Jonathan Lee. “The container shipping industry is a $150 billion industry, but it has been in constant distress since 2008. Unlike ticket booking in airlines, customers in container shipping do not bear any consequences for not showing up for bookings. Industry people complain about the lack of trust between liners and customers. We think the trust-free nature of Ethereum.” 300cubits plans to issue a token called TEU. These tokens will be use as booking deposits for container shipping where value could be lost if the customer does not turn up with a cargo or a container liner does not load a cargo according to a confirmed booking. The TEU tokens will be linked to the value of actual freight rates. In the long term, Lee says the TEU tokens may become a defacto settlement crypto currency in container shipping, much like U.S. dollars. “We see the TEU tokens being adopted as a settlement currency for the container shipping industry, which could move the whole industry’s transactions or even the entire logistics industry’s transactions onto the blockchain.” Lee also explained why the shipping industry will adopt the crypto-currency: “Industry practitioners will be incentivized to use the TEU tokens because the tokens are given to them for free; they have this so called “ghost booking” issue to fix and their ownership of TEU tokens will appreciate if they use them,” says Lee. “Their recognition and day-to-day use of TEU tokens will further enhance the value of the tokens.” Sources: http://maritime-executive.com/article/blockchain-currency-ready-for-container-shipping?src=ilaw
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.
Maersk Line goes digital
Maersk Line, the world’s largest container carrier, has recently launched its mobile application to help costumers on the management and tracking of their cargo. The app allows users to get updated information about shipments, cargo tracking in real time and more. The app is compatible with IOS and Android devices. The key features include: Live Tracking – Keep up-to-date with up-to-the-minute information on all shipments. Enables you to keep track of your cargo on the go. Push notifications: The app will provide instant notifications over the phone, sharing live updates on the status of cargo. Unique guide to shipping: The app has a guide which will enable a new entrant to the market understand the systems and processes of Shipping. Share information: Will keep Maersk Line’s valued customers in the know by sharing all the latest information on shipments directly from the app. Information will be shared in real time, facilitating simultaneous communication to all the involved parties. Check schedules: With Maersk Line’s presence across the globe, the app will provide all the information regarding its services and schedules across the globe. This will facilitate effective planning and execution and help the customers reach new markets. Mr. Franck Dedenis, Managing Director, Maersk Line (India, Sri Lanka and Bangladesh) said the company is trying to provide logistical solutions to its customers: “We are excited to announce the launch of this mobile app which will help find and manage cargo in an instant. We constantly strive for improving and simplifying our interaction with our customers. This will enable customers to further strengthen their businesses and create a dynamic business platform to expand globally in a convenient and faster way. This is a continuation of our belief to constantly innovate and provide robust comprehensive logistical solutions in the market place,” said Dedenis. Source: Maersk Line
Panalpina reported volume growth and margins under pressure for Q1
Panalpina, the freight forwarding and logistics company with headquarters in Switzerland, issued a press release with the results for the first quarter of 2017 (Q1), stating that outperformed the air and ocean freight markets in terms of volume growth. In a press release, Panalpina detailed that the numbers corresponding to Q1 2017 stayed low compared to the same period in 2016. The swiss company reported an EBIT (earnings before interest and taxes) of 16.4 million CHF (Swiss francs) and a consolidated profit of 12.4 million CHF. The Gross Profit fell 9%, from 364,9 million CHF in 2016 to 332.7 million in 2017. The EBIT also decreases by 32%. Panalpina CEO, Stefan Karlen said that the company is facing a slow recovery: “In the first three months of the year, we succeeded in outperforming the markets with volume increases of 8% in Air Freight and 7% in Ocean Freight. As expected, margins remained under pressure; however, they are slowly recovering since we saw an upturn in unit profitability in both Air and Ocean Freight compared to the last quarter of 2016.” As Karlen said, the air freight volume increased 8% compared with the estimated 6% and maintaining the same profitability levels of 2016. On the another hand, the ocean freight volumes increased 7%, while the market grew only 4%. The report also highlighted that Transatlantic and Far East trade lanes contributed to achieving these results. However, the gross profit per TEU decreased 17%. In the logistics sector, the profits decreased 16% and reported an EBIT of 2.4 million CHF, achieving the best results to date in this matter. Karlen appointed that Panalpina’s expectations for the rest of the year are “cautiously optimistic” in spite of the hard market conditions. Sources: http://www.panalpina.com/newsroom#/pressreleases/panalpina-reports-higher-volumes-as-margins-remained-under-pressure-1926878
CMA CGM launches a reefer shipping service in partnership with Seatrade Group
CMA CGM, the container shipping leader, announced a collaboration with Seatrade Group, the company specialized in reefer transport, in a new vessel sharing agreement scheduled for October 2017. The new agreement will incorporate CMA CGM’ service known as PAD and Seatrade´ MERIDIAN in order to improve frequency and port coverage. The service will link Northern Europe, the East Coast of the United States, Central America, the Pacific Islands, Australia, New Zealand, Peru and the Caribbean on a weekly basis. According to the line´s information, the weekly service will have the following rotation: ZEEBRUGGE, LONDON GATEWAY, ROTTERDAM, DUNKERQUE, LE HAVRE, NEW YORK, SAVANNAH, KINGSTON, CARTAGENA, PAPEETE, NOUMEA BRISBANE, SYDNEY, MELBOURNE NELSON, NAPIER, TAURANGA PISCO, PAITA, KINGSTON PHILADELPHIA ZEEBRUGGE This new line will be the only one in the market to offer such coverage on a weekly basis, with a fleet of 13 geared ships (6 CMA CGM, 6 SEATRADE, and 1 MARFRET) and a nominal capacity between 2200 and 2500 TEUs. Each ship will have minimum 600 reefers on board to transport refrigerated goods such as fruits or meat. CMA CGM recently launched its new image and logo to promote its concept “Shipping the future”. Source: CMA CGM
QUIZ: How much do you really know about shipping?
In Veconinter, we always try to create interesting blog posts for all the key players in the shipping industry, logistics, and foreign trade. We love to investigate the business and its most shocking facts. That’s why we bring you this short quiz with 10 questions related to the maritime industry and container transport with facts that might surprise you. Test your knowledge with our test now here: http://pregunta2.com/quiz/d5d79404 Did you like it? Please share!