T.Ward Shipping

Wed, 22 Feb 2012

Sir, regarding last week’s rate increases on the Asia-Europe trade, the comments by EVO, shippers and a number of your readers display a remarkable lack of understanding of business basics.

It should be clear to anybody involved in container transport that the rates charged for transport are unsustainable and below cost.

The fact that the lines do not generate profits will negatively impact the whole industry because investments in new, more efficient and more environmentally friendly solutions will simply not be made.

With no research and no investment the industry leaves it to governments and international bodies to force through rules which eventually increase cost over and above what the industry could have established by itself.

The cost of freight has gradually decreased over the years as lines have, due to healthy competition in the industry, passed on efficiency gains to the shipper.

This has not come in a straight line but more by fluctuation so it should be clear that there are no free lunches – what is lost over one period has to be gained in another.

Evaluating profitability for the liner industry over the last 25 years, however, shows that the returns are a modest 5-7%. Not really what any business school would call a great result.

For shippers, and especially NVOCCs, it is quite a different model. Whatever the transportation cost is, it is marginal in relation to the cargo and resale value. NVOCCs that make a cut on the freight rate without carrying investment risk do better when freight rates are high, but are instrumental in pressing rates down in order to capture business from their competitors.

I think it is time for shippers to take a realistic view on this market and understand that by crying their eyes out to anybody who will lend them an ear, including Brussels and the FMC, they actively participate in reducing the number of independent service providers and thus consolidate their choice of suppliers to the level that competition is minimal or completely gone.

And this, as anyone who has the slightest economic understanding knows, will only increase the cost of services rendered.

Captain Franck Kayser,
MD, The Containership Company

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David Badger | Wed, 22 Feb 2012

Project to double container capacity at UK port moves on with completion of groundworks

PD Ports has taken the next step in its programme to almost double its container handling capacity at Teesport, with the completion of the ground works.

The terminal operator has invested over £16 million as part of a £29 million project to expand the container terminal capacity from 235,000 to 450,000teu and position Teesport as the second largest container port in the north of the UK.

The work, which took a year, involved the reconstruction of more than 5ha of the container terminal area with heavy-duty paving designed to withstand the increased loads of container stacks and new rubber-tyre gantry cranes.

“We are very pleased with the progress so far,” said David Robinson, CEO of PD Ports Group.

“We are also well advanced in testing and implementing a new terminal operating system, which remains on schedule to be operational this summer.”

Teesport is also launching a fast gate service in April, to reduce waiting times for containers moved from ship to warehouse, to boost service to customers including Asda and Tesco.

PD Ports said it continued to see container volumes rise, despite the global economic downturn, and believed its promotion of the port-centric concept had contributed significantly to its success.

The concept involves establishing distribution centres and importing goods through ports closer to the final customer.

Unpacking, storing and picking goods at the port for onward delivery to stores directly benefits the supply chain at multiple levels. By eliminating road miles travelled from southern ports to distribution centres often based in the Midlands and the north of England, the environmental footprint and fuel consumption of the entire supply chain is reduced.

The operator added that the recent announcement that Clipper Logistics Group was to open a purpose-built distribution centre within the port hinterland would further support the port-centric operations and drive increasing volumes after it opened in the autumn.

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The loss by NOL Group of US$478 million – most of it attributed to its APL container line – has been described by the company’s chief executive as “disappointing”.

Reporting its 2011 results today, Singapore-based NOL has suffered a collapse in profitability after a reasonably healthy 2010, when the group made a net profit of $461 million.

The company said unsettled economic conditions, high fuel costs and lower freight rates had impacted the 2011 results, adding that while volumes had risen by 5%, prices had fallen by 10% and bunker fuel costs had risen by a third.

“The performance of container shipping is disappointing,” said CEO Ng Yat Chung. 

“Overcapacity and higher fuel costs have negatively affected the whole container shipping industry. We are urgently addressing costs and all other factors under our control to improve our performance.”

NOL said overall 2011 revenue decreased 2% to $9.2 billion while the group reported a core loss, before interest and taxes, of $377 million for the year. Much of that fell in the fourth quarter.

APL, the group’s container line business, reported 2011 revenue of $7.9 billion, down 5% from 2010, and a loss of $446 million, despite a 5% year-on-year volume increase.

“The volume increase was offset by downward pressure on freight rates and high fuel costs,” said APL President Kenneth Glenn. 

“We must continue to drive-down costs and make better cargo selection decisions in the face of this industry-wide trend.”

On a somewhat brighter note, NOL’s supply chain management business, APL Logistics, reported a record performance in revenue and earnings.

The division boasted revenue of $1.4 billion, up 12% from 2010 and core earnings before interest and tax of $69 million – both all-time highs for the business.

Divisional President Jim McAdam cited growth in auto logistics and a strong first half in international logistics as the main factors contributing to the results.

Article source: http://www.ifw-net.com/freightpubs/ifw/article.htm?artid=20017941195&src=rss

Tue, 21 Feb 2012

Maritime services provider opens first of a network of offices to meet growing Latin America demand

Maritime services provider Inchcape Shipping Services (ISS is set to capitalise on local and global customer demand for services in Venezuela. 

ISS, which has worked in Venezuela for many years through sub-agents, has opened an office in Puerto La Cruz.

Juan Carlos Trujillo, of ISS Venezuela, said: “The Venezuelan economy is steadily expanding and we are now well-positioned to service the needs of shipowners and operators using its ports.

“This will be the first of a number of new offices in Venezuela and across South America.”

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David Badger | Tue, 21 Feb 2012

Weekly service gives hauliers the chance to bypass continental Sunday driving ban

This week, ferry operator Transfennica will add the Essex port of Tilbury as a direct call on its weekly service from Bilbao, Spain.

The Friday evening sailings from Bilbao will call at Tilbury on Sundays at 2pm and, after discharging, the vessel will head for Zeebrugge.

The operator said; “The direct connection has many advantages, as Transfennica offers a very fast transit time from Spain to the London area. The end of the week is traditionally very busy for exports to the UK.

“In addition to driver-accompanied, unaccompanied and containers, the direct service to Tilbury is also perfectly suited for out-of-gauge, heavy and hazardous cargo.”

In early January, Transfennica replaced two smaller chartered vessels for two owned ConRos with capacity for 195 trailers, 12 drivers and 640teu.

Michael van den Heuvel, Director of Transfennica, explains: “Legislation is an increasing problem for international hauliers and by providing a direct connection to the UK this enables our clients to bypass the weekend driving restrictions.”

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David Badger | Tue, 21 Feb 2012

US east coast gateway handled more volumes in 2011 than it did pre-recession

The US port of New York/ New Jersey set an all-time record for cargo handling last year.

The 5.5 million teu handled at the port was almost 4% up on 2010 volumes, beating the previous record, set pre-recession in 2007.

The port’s on-dock rail system, ExpressRail, also set a new record in 2011, handling 422,144teu – 12% up on 2010.

Port Authority Chairman David Samson said: “These records demonstrate that despite these challenging economic times, our commitment to establishing stronger import/export trade relations, retaining and attracting the highest quality operators and investing in state-of-the-art facilities with the latest technology is working.

“Over the coming years we will continue to make significant investments in our port related infrastructure: US$1 billion for raising the Bayonne Bridge, as well as port road improvements and harbour deepening.”

The port of New York and New Jersey is the largest on the US east coast and the third largest in the country, behind Los Angeles and Long Beach.


Its plan to raise the road bed of the Bayonne Bridge will allow the new, larger post-panamax containerships to access the port terminals.

Currently the bridge’s navigational clearance cannot accommodate the largest of these ships, which are expected to serve the port when the Panama Canal widening is complete.

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Tue, 21 Feb 2012

Maritime services provider opens first of a network of offices to meet growing Latin America demand

Maritime services provider Inchcape Shipping Services (ISS is set to capitalise on local and global customer demand for services in Venezuela. 

ISS, which has worked in Venezuela for many years through sub-agents, has opened an office in Puerto La Cruz.

Juan Carlos Trujillo, of ISS Venezuela, said: “The Venezuelan economy is steadily expanding and we are now well-positioned to service the needs of shipowners and operators using its ports.

“This will be the first of a number of new offices in Venezuela and across South America.”

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Article source: http://www.ifw-net.com/freightpubs/ifw/article.htm?artid=20017940755&src=rss

David Badger | Tue, 21 Feb 2012

Weekly service gives hauliers the chance to bypass continental Sunday driving ban

This week, ferry operator Transfennica will add the Essex port of Tilbury as a direct call on its weekly service from Bilbao, Spain.

The Friday evening sailings from Bilbao will call at Tilbury on Sundays at 2pm and, after discharging, the vessel will head for Zeebrugge.

The operator said; “The direct connection has many advantages, as Transfennica offers a very fast transit time from Spain to the London area. The end of the week is traditionally very busy for exports to the UK.

“In addition to driver-accompanied, unaccompanied and containers, the direct service to Tilbury is also perfectly suited for out-of-gauge, heavy and hazardous cargo.”

In early January, Transfennica replaced two smaller chartered vessels for two owned ConRos with capacity for 195 trailers, 12 drivers and 640teu.

Michael van den Heuvel, Director of Transfennica, explains: “Legislation is an increasing problem for international hauliers and by providing a direct connection to the UK this enables our clients to bypass the weekend driving restrictions.”

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Article source: http://www.ifw-net.com/freightpubs/ifw/article.htm?artid=20017940757&src=rss

David Badger | Tue, 21 Feb 2012

US east coast gateway handled more volumes in 2011 than it did pre-recession

The US port of New York/ New Jersey set an all-time record for cargo handling last year.

The 5.5 million teu handled at the port was almost 4% up on 2010 volumes, beating the previous record, set pre-recession in 2007.

The port’s on-dock rail system, ExpressRail, also set a new record in 2011, handling 422,144teu – 12% up on 2010.

Port Authority Chairman David Samson said: “These records demonstrate that despite these challenging economic times, our commitment to establishing stronger import/export trade relations, retaining and attracting the highest quality operators and investing in state-of-the-art facilities with the latest technology is working.

“Over the coming years we will continue to make significant investments in our port related infrastructure: US$1 billion for raising the Bayonne Bridge, as well as port road improvements and harbour deepening.”

The port of New York and New Jersey is the largest on the US east coast and the third largest in the country, behind Los Angeles and Long Beach.


Its plan to raise the road bed of the Bayonne Bridge will allow the new, larger post-panamax containerships to access the port terminals.

Currently the bridge’s navigational clearance cannot accommodate the largest of these ships, which are expected to serve the port when the Panama Canal widening is complete.

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Article source: http://www.ifw-net.com/freightpubs/ifw/article.htm?artid=20017940760&src=rss

Mon, 20 Feb 2012

Dredging plan will make port more accessible to larger containerships

The Dutch Ministry of Infrastructure and the Environment is expanding the Maasgeul to prevent waiting times for ships entering the port of Rotterdam.

This navigation channel to the North Sea is the access route for sea-going ships that have a draught of more than 14.3 metres.

More and more of these ships come to Rotterdam because of the increase in scale and because the load factor of ocean-going ships continues to grow.

The Maasgeul is six miles long and 500-600 metres wide. It is being widened by another 240 metres so that by the summer, large ocean-going ships will be able to pass each other.

Harbourmaster René de Vries broke the news as he announced the nautical figures for 2011. The lower number of ships – 33,681 sea-going ships compared with 34,404 in 2010 – with an increase in throughput (from 430 to 435 million tonnes) pointed to that increase in scale and more heavily laden container ships.

De Vries also made a case for more national and international legislation for the use of liquefied natural gas (LNG) as a fuel for both ocean-going ships and inland shipping.

He said: “Research shows that LNG provides an opportunity to make inland shipping and ocean shipping more sustainable with financial gains.”

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