Trade Update Review - February 24, 2022

Asia

MOL successfully operates group bunkering vessel on biodiesel fuel

• At a time when there is a lot of clamour for decarbonisation in the shipping industry, Japanese Mitsui O. S. K.Lines (MOL) recently successfully operated group bunkering vessel Techno Starowned by MOL Techno Trade with biodiesel fuel (BDF). ‍

ZIM inks pact with Navios Maritime Partners for 13 vessels

• Israeli shipping giant ZIM Integrated Shipping Services entered into an agreement with Navios Maritime Partners which involves chartering a total of 13 container vessels, including five second-hand vessels and eight new-build ships. The charter hire consideration is estimated to be around $870 million.

Abu Dhabi Customs & Tradelens to explore blockchain capabilities in the documents flow

• Abu Dhabi Customs and Tradelens have joined hands to work with importers and exporters to explore the possibilities of embedding blockchain technology in documents flow.

All-inclusive rates on North Asia-to-North America lane flat

• According to S&P Global Platts, all-inclusive rates in the week ending February 11 on the North Asia–to–North America lane were largely flat against signs from last week, considering the demand after the Chinese Lunar Year has begun to pick up even as market participants are expecting potential rises in late February and March.

New maritime tariff published in Turkey

• Directorate General of Coastal Safety, Turkey has published a new tariff for pilotage, towage and other services. The new tariff has come into force from February 15.

ONE unveils VGM input on a mobile app

• Singapore headquartered Ocean Network Express (ONE) unveiled a feature on its mobile app itself which enables customers to submit their Verified Gross Mass (VGM) information.  

EmiratesSky Cargo enhances connectivity to US Midwest

• Aimed at strengthening its connectivity to the US Midwest, EmiratesSky Cargo started freighter flights to Chicago Rockford International Airport from February 1, 2022.

Persisting Transpacific vessel pressure

• Sea Intelligence, a leading provider of research and analysis, data and advisory services to the global supply chain industry noted that Transpacific vessel pressure is continuing. It expects that vessel scheduled to depart Asia and arrive at the American West Coast to rise by 40 percent compared to the pre-pandemic normal conditions.
• It also anticipates a 60 percent jump in the number of vessels on the Asia –North America East Coast trade lane in the forthcoming months, even as carriers are expected to circumnavigate port congestion on the West Coast.

The Alliance reconfigures network for comprehensive coverage

• The Alliance, one of the shipping line groupings comprising Hapag – Lloyd, NYK, Yang Ming, MOL and K-Line, which is 241 ships and 3.3 million TEU strong has reconfigured its network to ensure comprehensive port coverage. The new service setup will be effective from the spring of 2022.

End-to-end supply chain solution CARGOES FLOW is widely available now

• ‍CARGOES FLOW, an end-to-end visibility platform from DP World for tracking intermodal shipments across the land, air and sea is now widely available, irrespective of the carrier and shipping lanes.

America

World Shipping Council identifies six critical pathways to zero-carbon shipping

• Washington D. C. - headquartered World Shipping Council recommended six critical pathways to zero-carbon shipping, which include Global Carbon Price, New Building Standards, Fuel Life Cycle, Fuel Supply Development, Green Corridors and R & D Investment. ‍

Europe

MSC is the world’s top feeder provider in the maritime industry

• According to Dynamar, a 41-year-old Dutch maritime reports company that also offers consultancy, marine investigation and vessel tracking, Mediterranean Shipping Company (MSC) has emerged as the world’s top feeder provider in its latest transhipment analysis.
• Feedering means transhipment of merchandise from one vessel to another for onward transport to a central container terminal using smaller boats called feeders or feeder ships.

Container lines schedule reliability slumped to a historic low in 2021

• Due to the Coronavirus pandemic, Suez Canal blockade and other disruptions, container shipping reliability dropped to historic lows in 2021. As reported by Seatrade Maritime News citing Sea Intelligence, reliability declined to 35.8 percent in 2021 when compared to 63.9 percent in 2020 and 78 percent in 2019.

CMA CGM Group will stop carrying plastic waste on board from June 1

• French shipping powerhouse CMA CGM  declared that it will stop carrying plastic waste aboard its vessels from June 1st, 2022 worldwide. This is aimed at protecting the oceans and biodiversity.

Maersk extends NEU – Transatlantic Winter Plan

• Due to severe weather across the Atlantic at the end of 2021, Maersk ran a winter schedule on its North Europe to North America routes, aimed at reducing disruption and raising reliability.
• Because of the current bottlenecks being witnessed across the North American network, the Danish shipping line has decided to continue an extended winter schedule (cycle 3) designed until April 2022.

A new rail link between Port of Antwerp and Ottmarsheim, France

• Starting January, 2022 a new rail link between the Port of Antwerp and Ottarsheim (France) will offer new transport opportunities to the three-country point of France, Switzerland and Germany. This will also lead to a faster connection between Antwerp and the Alsace region.

TradeLens completes first end-to-end paperless trade finance transaction

• TradeLens, a digital platform unveiled by AP Moller Maersk and IBM recently completed its first end-to-end paperless trade finance transaction, which involved the shipment of agrichemicals from South Korea to Bangladesh with a letter of credit financed by HSBC.

FIATA forms alliance with DCSA, ICC, BIMCO and SWIFT for digitalisation

• Geneva-headquartered International Federation of Freight Forwarders Associations (FIATA) has entered into an agreement with the Digital Container Shipping Association (DCSA), International Chamber of Commerce (ICC), BIMCO and the Society for Worldwide Interbank Financial Telecommunications (SWIFT) to standardize digitalisation of international trade.

UNECE and ICAO complete new digital air cargo technical specifications for global recovery

• Aimed at speeding up global recovery and safer and resilient supply chains, the United Nations Economic Commission for Europe (UNECE) and the International Civil Aviation Organisation (ICAO) have completed a new digital air cargo technical specifications guidance.

Three-fold rise in awareness and acceptance of shipper owned containers among top freight forwarders

• According to a survey by ContainerxChange, there is a three-fold rise in the awareness and acceptance of shipper owned containers (SOCs) among the top 50 freight forwarders.

Generational changes at the board of A. P. Moller – Maersk

• As part of a generational change in the composition of the Maersk board, Robert Maersk Uggla has been nominated as the new chair and Marc Engel as the new vice-chair.

CMA CGM to levy surcharge from Novorossiysk to multiple locations

• Starting March 1, 2022, French shipping giant CMA CGM will levy overweight surcharge (OWS) from Novorossiysk, Russia to North-East Asia, South East Asia, Hong Kong & Macau SAR, Middle East Gulf, Indian Subcontinent & Red Sea.

Global trade touches $28.5 trillion in 2021

• Geneva-headquartered United Nations Conference on Trade and Development (UNCTAD) highlighted that the global trade in 2021 touched a record high of $28.5 trillion.

India

India forms an interdisciplinary task force to address containers shortage

• The Government of India has formed an inter-disciplinary task force to look into the pressing issues of additional shipping and container capacity, enhanced import of empty containers and others.
• In a written reply in the Rajya Sabha, Shipping Minister Sarbananda Sonowal said that regular interaction with shipping lines and their association led to increased availability of empty containers, including 1.84 million twenty-foot equivalent units (TEU) being repositioned by them.

India logs record rice exports in 2021

• According to the Directorate General of Commercial Intelligence and Statistics, in 2021, India logged a record 21.4 million tonnes (MT) of rice exports, marking a rise of 46 percent on the year. Bangladesh was the largest buyer, which procured a quantum of 2.48 MT, followed by Nepal, Benin and China.

Adani Ports and Special Economic Zone (APSEZ) to upgrade berth at Haldia Dock Complex

• APSEZ received a letter of award to upgrade a berth at Syama Prasad Mookerjee Port in Kolkata, which is a riverine port. APSEZ will upgrade and mechanise berth number – 2 at Haldia Dock Complex.

India& Australia are on the brink of sealing a trade pact

• Indian Commerce Minister Piyush Goyal recently announced that the country and Australia are on the brink of sealing a limited trade pact or so-called ‘early harvest agreement’.

CONCOR extends discount scheme for repositioning empty containers

• Container Corporation of India(CONCOR) has extended its scheme of up to 100 percent discount on rail freight for repositioning empty containers from across several inland container depots (ICDs), CFSs to hinterland terminals, port side terminals and gateway ports from April 1, 2022, to March 31, 2023.
• This scheme was launched in 2021 to slash the overall logistics cost of exports and also bolster India’s economy by helping ensure the availability of empty containers in the hinterland.

India sanctions funds for dredging transboundary Gomati river

• The Indian government sanctioned Rs 24 crore for dredging Gomati, a transboundary river between India and Bangladesh. It also includes setting up 10 jetties for the waterway project.

India’s basmati rice exports plummet to a four-year low

• Affected by slashed purchases from Iran, India’s basmati rice exports plummeted by 20 percent to 4 MT in 2021, a four year low. Top buyer Iran could not buy as much as it wanted as its rupee reserves fell drastically.      

APM Terminals Mumbai to invest $115 million to raise container handling capacity

• APM Terminals Mumbai, which is also known as the Gateway Terminals India (GTI) will invest $115 million in infrastructure to raise container handling capacity. APM Terminals will invest in three rails mounted gantry (RMG) cranes and six ship-to-shore (StS) cranes.
• With this investment, APM TerminalsMumbai’s container handling capacity will rise by 10 percent to 2.18 million TEU.

New Mangalore Port Trust to implement projects worth Rs 695 crore under PM GatiShakti

• Under PM Gati Shakti mega infrastructure plan, New Mangalore Port Trust (NMPT) is implementing projects worth Rs 695 crore, which include mechanization of berth number 14 for handling containers and other cargo on design-build finance operate transfer (DBFOT) mode in association with JSW among others.

Januarymerchandise exports rise by 27 percent

• India’s merchandise exports grew by 27.5 percent y to $34 billion in January.

Two Cochin Port projects included in PM Gati Shakti master plan

• Two projects of Cochin Port, the development of multi-user liquid terminal (MULT) and the reconstruction of the south coal berth, have been included in the central government’s Gati Shakti master plan.

Sixteen new airports to be built in Central India

• Jyotiraditya Scindia, Union Civil Aviation Minister recently said in a virtual PM Gati Shakti conference that 16 new airports will be built in five central Indian states.

Indians foreign drone imports with exceptions

• India’s Directorate General of foreign trade (DGFT) banned foreign drone imports with a few exceptions to boost local manufacturing.

Crude palm oil imports drop by 23 percent

• India’s crude palm oil (CPO) imports dropped by 23 percent while the import of RBD palmolein rose by 459 percent in January.

Tractor exports cross 1 lakh mark for the first time

• India’s tractor exports crossed 1 lakh mark for the first time in 2021.

India demonstrates multi-modal cargo movement harnessing river and seaway combination

• On Wednesday, Shipping Minister Sarbananda Sonowal flagged off the maiden sailing of barges bearing a consignment of 1,789 MT of finished steel products of Tata Steel to Pandu in Assam from Haldia through the Indo – Bangladesh Protocol Route (IBP – Route). This is the first voyage demonstrating multi-modal cargo movement harnessing the combination of both a river and the sea.

Agricultural and processed food products export expected to exceed the target

• Agricultural and processed food products exports through Agricultural and Processed Food Products Export Development Authority (APEDA) are expected to exceed the target of $23.7 billion in 2021 – 22, Commerce Ministry said.

APM Terminals Pipavav receives the largest vessel in its history

• APM Terminals Pipavav received the largest container vessel in its history, Hapag Lloyd MV Express Athens.

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