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Hong Kong August export value falls 13.9pc, imports off 9.8pc
MOL warning: Sees 7.9pc quarterly loss, not 5.85pc as forecast
Pirate attacks increase in South China Sea, says IMB
Shenzhen falls 20pc to 11.39 million TEU in eight months
China's longest urban highway - 187 kilometres - opens in Beijing
Mobile phone man Trond Westlie takes over as Maersk CFO
NYK wins 'ship of year' award for its solar green machine
Safmarine draws up maternity leave as women go to sea
China shippers find planning hard with rate volatility
Dubai World appoints new CEO and COO
PPG freight forwarders skill building course Oct 28-29
Air China Cargo offers thrice weekly Vienna service
New Qantas planes to be named after famous antipodeans
Riga forwarder Spedair re-branded Greencarrier Latvia
The five great errors carriers make (part 1)
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Highlights
Figures point to market recovery in 09
Major carrier charges extra money for extra space, others are looking to follow
Capacity crunch forecast at YRD ports as PRD faces oversupply woes
Liner consortia proposed legislation potentially dangerous, says ELAA
Today's Feature
The five great errors carriers make (part 1)
THERE are many intelligent people in the container industry, but all too often this intelligence is rendered irrelevant when the pressure is on.
Panic sets in and mistakes are made.
Reversing this unfortunate trend in our industry was one of the primary motivating factors behind the launch of The Container Shipping Manager back when we first launched in July 2006.
In this article we will take a look back over some of the fundamental mistakes carriers make and the consequences lines will reap if they fail to adjust their focus.
For this edition we have narrowed these mistakes down to five. Why?
[Read More]
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Hong Kong August export value falls 13.9pc, imports off 9.8pc
HONG KONG's export value fell 13.9 per cent while import value declined 9.8 per cent in August year on year, reports the Census and Statistics Department.
August export value, including re-exports, decreased to HK$213.3 billion (US$27.5 billion) year on year. Within this total, the value of re-exports decreased 13.2 per cent to HK$208.3 billion while the value of domestic exports decreased 37.3 per cent to HK$5 billion.
The value of imports decreased 9.8 per cent year on year to HK$235.1 billion in August 2009, after a year-on-year decrease of 17.8 per cent in July 2009.
For the first eight months of 2009, the value of exported goods dropped 17.2 per cent year on year. Within this total, the value of re-exports decreased 16.3 per cent, while the value of domestic exports fell 41.5 per cent.
The value of imports decreased 17.4 per cent. A visible trade deficit of HK$121.2 billion, equivalent to 7.3 per cent of the value of imports of goods, was recorded in the first eight months of 2009.
Comparing the three-month period ending August 2009 with the preceding three months, the value of exports rose 2.6 per cent. Within this total, the value of re-exports increased three per cent, while the value of domestic exports went down 13.0 per cent, said the statement.
Comparing August 2009 with August 2008, total exports to Asia as a whole went down 10.7 per cent. In this region, substantial decreases were registered in the values of total exports to most major destinations, in particular Malaysia (-33.6 per cent), Thailand (-24.7 per cent), Singapore (-14.9 per cent), the mainland of China (the Mainland) (-11.1 per cent) and Korea (-8.9 per cent).
Apart from destinations in Asia, decreases were also registered in the values of total exports to some major destinations in other regions, in particular Germany (-22.9 per cent), the United Kingdom (-21.8 per cent) and the US (-14.6 per cent).
Over the same period, decreases were registered in the values of imports from most major suppliers, in particular Japan (-17.9 per cent), the United States of America (-17.3 per cent), Korea (-13.2 per cent) and the Mainland (-12.1 per cent).
For the first eight months of 2009 as a whole, distinct year-on-year decreases occurred in export values to all major destinations, in particular Singapore (-28.3 per cent), Korea (-22.5 per cent), the United Kingdom (-22.3 per cent), the United States of America (-21.5 per cent), Germany (-17.0 per cent) and the Mainland (-13.8 per cent).
MOL warning: Sees 7.9pc quarterly loss, not 5.85pc as forecast
TOKYO's Mitsui OSK Lines (MOL) has announced a downward revision of its outlook of minus 7.94pc net profit loss in the second quarter of FY2009, ending March 31, 2010, from the minus 5.85pc decline forecast in late July.
MOL, rated the world's 12th largest container shipping line, blamed operating costs in the containership segment including bunker prices and terminal handling charges, which rose more than expected.
The company said it was reviewing the full-year outlook for FY2009, and plans to announce it when second quarter results are announced October 27. While operating costs were unexpectedly high, the company said freight rate recovery and trade volume growth were as anticipated.
Pirate attacks increase in South China Sea, says IMB
PIRACY is a present danger in the South China Sea, ranging from Singapore to Taiwan, where copycat Somali pirate attacks with pirates armed with gun and knives numbered 19 last month, an increase from 17 year on year, reports the International Maritime Board.
Noel Choong, head of the IMB's piracy reporting centre told Agence France-Presse that alerts were sent to vessels in May of the danger in this body of water, which makes up the trunk line from Asia to Europe via the Gulf of Aden.
"These vessels should mount anti-piracy watches because once pirates are spotted, they do not attack unlike Somalia sea robbers. The shipping lane is to be monitored closely between Malaysia, Indonesia and the eastern Singapore Straits. While well below the frequency of attacks off Somalia, an increase in attacks is possible without anti-piracy operations in place, he added.
Shenzhen falls 20pc to 11.39 million TEU in eight months
SHENZHEN port's container throughput fell 19.9 per cent year on year to 11.39 million TEU in the first eight months, while overall cargo volume dropped 15.4 per cent to 122.4 million tonnes, reports Xinhua.
But the city's urban freight volume grew 10.8 per cent to 136.7 million tonnes in the same period. Cargo turnover slid 0.6 per cent to 68.5 billion tonnes per kilometre.
The city's airport mail cargo declined 7.5 per cent to 373,400 tonnes while its airport passenger volume grew 13.3 per cent to 16 million in the first eight months. Mail throughput saw a great increase in August after a marginal rebound happened in July, indicating the city's air freight sector is rising again.
In August, Shenzhen airport registered 17,300 flight departures and arrivals with a 12.3 per cent hike year on year, transporting 121 passengers (up 23.7 per cent) and 53,400 tonnes of mails (up 11.5 per cent). Its mail volume ended consecutive decreases over the past 13 months by undergoing a light one per cent hike to 51,900 tons in July.
China's longest urban highway - 187 kilometres - opens in Beijing
BEIJING's 187-kilometre (116 miles) Sixth Ring Road, China's longest city expressway, has been opened to traffic with completion of its western section, reports Xinhua.
The 38.28 kilometre section _link_ing Liangxiang and Zhaikou was the last phase of construction project which started in December 1998 and now accounts for more than 20 per cent of Beijing's expressway lengths and is accessible to most of the city's population, said Beijing Municipal Committee officials.
The road connects major outbound highways and also allows easier access to peripheral cities such as Chengde in Hebei province and the suburban Pinggu county, they said.
As Beijing is a vital transportation hub between northwestern China and the northern sea ports, officials said that the Sixth Ring Road would not only ease downtown traffic pressure and improve the city's air quality but also facilitate passenger and cargo transportation from the north and the west to the east and the south.
A separate report from the Institute of Comprehensive Transportation of the National Development and Reform Commission (NDRC) has estimated that the benefits brought by the Sixth Ring Road in 20 years could reach CNY184.5 billion (US$26.98 billion), 10 times as much as its cost. Moreover, reduced traffic pressure and fewer tie-ups could help cut automotive exhaust by three per cent.
Mobile phone man Trond Westlie takes over as Maersk CFO
TRONDE Westlie will take over as CFO of Danish shipping and energy giant AP Moller-Maersk Group on January 1 and join its executive board.
Mr Westlie, 48, is currently CFO of Telenor Group, Norway, one of the world's largest mobile telephone operators.
Before that he was CFO of Aker Kvaerner, a Norway-_base_d global provider of engineering and construction services, technology products and integrated solutions.
As of January, the executive board of AP Moller-Maersk will consist of Nils Andersen, Claus Hemmingsen, Eivind Kolding, Soren Skou, Jakob Thomasen and Trond Westlie.
NYK wins 'ship of year' award for its solar green machine
NYK pure car truck carrier, the Auriga Leader, weighing in at 60,213 gross tons, has been recognised as the ship of the year at the Lloyd's List Global Awards 2009 held recently in London.
The accolade is awarded to vessels that are said to have set over the past year a new benchmark in terms of design, innovation and efficiency.
The solar-power-assisted Auriga Leader, which is equipped with 328 solar panels, was used to experiment with propulsion systems that run in part on solar power. The systems have been jointly developed by NYK and Nippon Oil Corporation.
A statement issued by the Japanese shipping company said that "solar power was able to afford 0.05 per cent of the ship's propulsion power and one per cent of the electricity used for everyday onboard needs such as cabin lighting and kitchen work. This change will reduce fuel consumption and the consequent CO2 emission."
Safmarine draws up maternity leave as women go to sea
AS women seafarers become more numerous, Maersk unit Safmarine, is working out a maternity leave scheme to deal with a shipping industry phenomenon, reports The Associated Press.
Capt Louise Angel, 30, has been appointed Safmarine's first ship's master, and the Belgium-_base_d container carrier is now drafting a maternity scheme for mariners, who want to care for children ashore and not lose their jobs.
The Women's International Shipping & Trading Association (WISTA), says membership is 40 per cent up in two years, and now has 1,000 individual members. There are five German female masters on German-flagged merchant ships out of 1,400. South Africa's navy has appointed a woman as commander of a patrol vessel. In 2007, Royal Caribbean International named the first female captain of a cruise.
In a 2003 report, the Geneva-_base_d International Labour Office (ILO) said one or two per cent of the world's 1.25 million seafarers were women, most of them cooks and waitresses on ferries and cruise ships. The ILO said there had been little change since.
But the prospect of months away from home with small crews of 20 in cramped quarters prompt doubts about the viability of women at sea, not to mention the extra costs of maternity leave imposes in an industry which values cost cutting above all else. Female mariners also quit their jobs to have families, fuelling arguments against investing in training for those so likely to leave the industry.
China shippers find planning hard with rate volatility
SHIPPERS are seeing record increases in container freight rates as part of another swing in an increasingly volatile container shipping spot market, reports Xinhua.
"The extreme volatility of the spot container shipping market is an industry issue not just for shippers, who cannot forecast their transport costs or their products' total landed costs, but also for container shipping companies and forwarders," said Philip Damas, director of Drewry Supply Chain Advisors.
In the past year, Drewry's regional container freight rate index for European imports plunged from US$3,169 per FEU in July 2008 to a low point of $1,071 in March, before shooting up to $1,812 in July 2009, according to Drewry's latest Container Freight Rate Insight report, which gathers "all-in" spot freight rates globally on 312 trade lanes.
Similarly, in the past year, Drewry's global freight rate index for container shipping has fluctuated between a maximum of $2,727 per FEU in July 2008 and a minimum of $1,536 in May 2009.
Recently, on the Far East-Europe route, most all-in spot rates increased by more than 50 per cent between May and July, although from a very low _base_, Drewry's said.
"This volatility looks even more acute than that of the stock market, and makes it extremely difficult for shippers to know what a fair price is in today's spot market," Mr Damas said.
The removal of capacity by carriers in the Asia-to-Europe trade has led to capacity shortages, roll-overs and a complete shift in the bargaining power of spot shippers and carriers on this route. Carriers are exploiting the potential to negotiate rate increases in return for peak-season capacity guarantees.
Between May and July, the two regional price indices for America (US import rates and US export rates) stabilised overall after a period of decline, and Drewry recorded large increases in transpacific eastbound spot freight rates in early August.
Dubai World appoints new CEO and COO
DUBAI World has announced the appointments of Jamal Majid Bin Thaniah as group chief executive officer, and Maryam Sharaf as group chief operating officer. The company has not specified a date for assuming these positions.
"Both the posts are newly created as part of initiatives to streamline the group's overall business operations in view of the global financial crisis, and to usher in a new economic era," a statement from the group said.
It said Mr Bin Thaniah is currently executive vice chairman of DP World and group CEO of Ports and Free Zone World, and has headed an internal management task force that reviewed the business plans of group companies.
In line with this decision, group companies will report directly to the group CEO. In his new capacity as group CEO, Mr Bin Thaniah will work closely with the chairman and the Board of Directors to oversee on-going business restructuring measures, execute investment strategy and be responsible for managing the holding company's business.
Maryam Sharaf, presently the group's chief financial officer, in her new position will be responsible for the group's overall investment and operational management, including that of Dubai World's shared services such as IT, Human Resources, Legal Affairs, Palm Utilities and Imdaad. She will retain her role as group CFO until a replacement is appointed.
Sultan Ahmed Bin Sulayem, chairman, Dubai World, said: "I am pleased to announce the appointment of some of the most efficient and experienced leaders in Dubai World to these key positions. These officials have succeeded in their roles because of their outstanding skills and I am confident that their expertise will add value to the growth of Dubai World.
Separately, Abdul Wahid Al Ulama has been named the new vice chairman of Retail Business, Dubai World. In addition, Hamza Mustafa will join Istithmar World from Nakheel as managing director, Real Estate.
PPG freight forwarders skill building course Oct 28-29
PROJECT Professionals Group are staging Certificate of Achievement in Project Cargo Management course in Bremen, Germany from October 28-29 in a bid to develop skills urgently needed in the forwarding business, said Kevin Stephens, PPG general manager.
The course has five further spaces and is open to all companies associated with supply chain management and logistics with a training focus on case studies. A study tour of the local port and operations of Beluga Chartering is planned.
More information about the course programme and testimonials from previous participants is available at
www.ppgprojects.com, or contact Kevin Stephens at
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Air China Cargo offers thrice weekly Vienna service
AIR China Cargo began flying to Vienna International Airport last Wednesday with a Boeing 747 Freighter.
It was the first air cargo service between China and Austria and the third between China and Europe, behind services from Beijing to Frankfurt and Copenhagen.
The new service operates from Shanghai to Milan, Italy, via Beijing and Vienna, and back to Shanghai.
The carrier offers thrice weekly service with a single carriage capacity of 110 tonnes.
Set up in 2003, Air China Cargo operates nine B747-400 freighters and has exclusive use of the freight capacity on 247 passenger aircraft of affiliate Air China.
It flies to 81 cities in China and 44 destinations around the world.
New Qantas planes to be named after famous antipodeans
QANTAS will name new aircraft after those who cemented strong _link_s between Australia and New Zealand with its first new plane to operate on the Auckland-Sydney-Melbourne route.
Its first new Boeing 737-800 to add to the fleet will be named after Jean Batten, a pioneer flier who set the women's record in 1934 in an England to Australia flight and made the fastest run from England to South America in 1935, also the fastest crossing of the South Atlantic. A year later she made the fastest flight from England to New Zealand, a record she held for 40 years.
The remaining two aircraft will be named after Sir William Hudson, engineer of the Snowy Mountains Hydro Electric Scheme, and the acclaimed author Katherine Mansfield, and will be operated by NZ-_base_d pilots and crew on the trans-Tasman Sea routes from mid-October. The remaining aircraft is to arrive by 2011, said Grant Lilly, Qantas' regional general manager for New Zealand in a company statement.
"It is undeniable that Jean Batten, Sir William Hudson and Katherine Mansfield, were pioneers in exporting New Zealand skills and culture on a global scale," said Mr Lilly on presenting the plaque to 22 relatives present at the commemorative naming of the first three aircraft.
The new aircraft boast 12-seat business class and 156-seat economy configuration with _style_d seating design with a 22 inch width and 37 inch seat pitch in business, 17 inch width and 20 inch width seat pitch in economy.
Riga forwarder Spedair re-branded Greencarrier Latvia
THE Latvian forwarder Spedair, acquired by the Gothenburg's Greencarrier International in September 2008, has been renamed Greencarrier Latvia.
Established in 1998, Riga-_base_d Spedair has subsidiaries in Kiev and Minsk as well as a worldwide network of agents. Spedair has enabled Greencarrier International to strengthen its position in Eastern Europe and the Baltic region, providing air, road, ocean and rail freight forwarding, multi-modal transportation, warehousing and storage services, and customs brokerage services, said a company statement.
Renaming the company will take this process an important step forward, said Greencarrier International CEO Niklas Olsson.
"Spedair has enabled us to expand our operations and we feel now is the right time to re-brand, so taking the Greencarrier name into new market areas. It will also emphasise the fact that shipments entrusted to our care are under Greencarrier's control from door to door. We are providing a one-stop shop product with a single contact point for the customer," said Mr Olsson.
Greencarrier International is the logistics arm of the Gothenburg-_base_d Bjork.Eklund Group, one of Sweden's largest privately owned logistics and transportation companies.
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