BEACON » Shipping News http://www.cosmizen.com Business Economy And Commerce Online News Fri, 11 Apr 2014 08:36:40 +0000 en-US hourly 1 http://wordpress.org/?v=3.8.2 New Shipping Invention to Empower Fruit Exporters http://www.cosmizen.com/2009/11/new-shipping-invention-to-empower-fruit-exporters/ http://www.cosmizen.com/2009/11/new-shipping-invention-to-empower-fruit-exporters/#comments Wed, 04 Nov 2009 15:33:15 +0000 http://tradetimes.wordpress.com/?p=640 Continue reading]]> Fruits can now reach farther markets as a leading shipping company has introduced StarCare, a new generation of Controlled Atmosphere (CA) containers which would preserve the fruits from ripening and decaying in their long transportation period. Bananas, the fourth most widely consumed food of humans after rice, wheat and corn, will largely benefit from the latest transportation invention, and the resultant longer shelf life would likely help them to take larger share of the global food market.

Maersk Line, the world’s largest container shipping company that has integrated these containers to its fleet, stated in its official website, the StarCare offers shippers and consignees the efficiencies and flexibility of containerised transport – even enabling one to ship small quantities of bananas to remote markets. The shipping firm claims the special design and advanced membrane technology of the CA containers allow the fruits to stay fresh for up to 45 days maintaining outstanding product quality.

The new containers regulate temperature, humidity levels and the mixture of oxygen, carbon dioxide and nitrogen to keep the products fresh all the way to the consumers of any distant market. This transportation medium is even claimed to do away with the expensive Banavac packaging process thus saving time and money to the exporters.

Through the StarCare shipping process which allows small volumes to be freighted, even Ecuador is in a position to explore the distant markets of the Middle East, Japan, China, Russia and New Zealand. The Costa Rican exporters now have access to the valuable markets in Russia and the East Coast of South America. Similarly, the banana producers in the Philippines are now able to export their produce to the Middle East, while the African exporters can now ship to the Mediterranean Sea and to the Northern Europe.

The level playing field created by this new freighting system is expected to help banana exporters across the world to increase profitability and cut transit losses. The breaking down of barriers through extended market reach is likely to usher in a new wave of competition in the international food market, perhaps, even tinker with the consumers’ dietary habits.

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Free Fall in Shipping Rates to Devastate Industry http://www.cosmizen.com/2009/09/free-fall-in-shipping-rates-to-devastate-industry/ http://www.cosmizen.com/2009/09/free-fall-in-shipping-rates-to-devastate-industry/#comments Tue, 01 Sep 2009 13:06:30 +0000 http://tradetimes.wordpress.com/?p=570 Continue reading]]> A Bloomberg survey by six analysts and fund managers predicts that the rate for leasing capesize vessels will reach as low as $18,000 from its current price of $37,865 per day. It should be recalled the rates for capsize ships or ultra large vessels reached an all time high of $234,000 a day in June last year as demand for commodities rose exponentially in the global market.

However, after reaching a high of about 12000 at Baltic Dry Index (BDI), a scale to assess global trade and freight rates, the market collapsed within the next quarter to hit the low as international trade diminished with fears of global downturn. The survey forecasts the shipping industry is in for more problems with China’s likely reduction of raw-material imports and entry of many pending new ships into the freight arena.

Although many developed countries and emerging economies are showing mixed signs of recovery, the shipping rates are heading for lower operational cost. If global trade does not take off from here on, the shipping industry will have more troubles particularly due to the infusion of 146 capesizes to the existing fleet this year, equal to 28 percent of the fleet, according to Fearnley Consultants A/S. BDI which includes four types of vessels including capesizes, more than tripled this year.

Nippon Yusen K.K of Japan, one of the largest shipping companies has forecast its first full-year loss in 23 years last month, citing lower demand for container shipping. Similarly, China Cosco Holdings Co., another large operator has reported that its commodity ships had lost money in the first half. Rates for capesizes have witnessed huge swings, more than 50 percent several times in the past eight years.

London-based Drewry Shipping Consultants Ltd claims that even at rates of $18,000 a day, most owners should make money, with daily operating costs estimated at $7,555. If world economy rebounds it will largely benefit the shipping industry as ships carry about 90 percent of world trade.

The latest data from the Netherlands Bureau for Economic Policy Analysis indicate the global trade rose 2.5 percent in June. Nevertheless, fears persist on the full recovery of the global economy as some economists envisage that it would take a long time to see V-shaped rebound.

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http://www.cosmizen.com/2009/09/free-fall-in-shipping-rates-to-devastate-industry/feed/ 0 Slowdown and Piracy Sink Suez Canal Revenues http://www.cosmizen.com/2009/07/slowdown-and-piracy-sink-suez-canal-revenues/ http://www.cosmizen.com/2009/07/slowdown-and-piracy-sink-suez-canal-revenues/#comments Mon, 27 Jul 2009 14:13:51 +0000 http://tradetimes.wordpress.com/?p=533 Continue reading]]> Suez Canal, Egypt’s major foreign currency earner and world’s busiest international trade routes has slashed its revenue by 7.2 percent owing to decline in traffic triggered by global economic crisis and piracy scare re-routing. The 191km long man-made waterway allows vessels to bypass without travelling around Africa to reach destinations across the continent.

The Suez Canal Authority Chairman Ahmed Fadel announced at a press conference Canal’s revenue in the 2008-09 fiscal year which ended on June 30, crimped to $4.74bn from its all-time high of $5.1bn of the previous year. However, Fadel claimed it was the downturn that had resulted in lower revenues rather than the piracy as piracy remained a bane to many other parts of the world.

Fadel also indicated that the impact on shipping from piracy in the Gulf of Aden off the Horn of Africa had been exaggerated. The pirate attacks in the Gulf of Aden, a key route to the canal, had scared off many ship owners to divert their vessels through the old route of Cape of Good Hope.

The Canal’s revenue loss is cited has the major reason for the slower 4.7 GDP growth of Egypt as compared to 7 percent of the past three years. This fiscal, 19,354 ships passed through the waterway which connects the Indian Ocean and the Mediterranean Sea with regards to 21,080 in 2007-08. About 811.4mn tons of goods passed the canal during the same period, down 8.9 percent from 890mn tons of the previous year.

Fadel stated that the government had taken number of steps to attract higher traffic including keeping the toll unchanged and infrastructural improvements to accommodate all kinds of ships. The authority had almost completed work on dredging and deepening of the Canal which when finished would allow to handle ships over 240,000 tons, up from the current 200,000 ton limit. Besides, the deepening of the Canal from 62 feet to 66 feet is expected to pave way for 64 percent of the world’s oil tanks and 99 percent of the cargo ships to transit through the water way by this year end.

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Blue-tongue Virus Scare Forces the UAE to Impose Restrictions http://www.cosmizen.com/2009/05/blue-tongue-virus-scare-forces-the-uae-to-impose-restrictions/ http://www.cosmizen.com/2009/05/blue-tongue-virus-scare-forces-the-uae-to-impose-restrictions/#comments Tue, 19 May 2009 13:29:24 +0000 http://tradetimes.wordpress.com/?p=435 Continue reading]]> The World Organisation for Animal Health’s (OIE) report on the resurfacing of the blue-tongue disease among animals in some countries of Europe has alerted the UAE to take preventive measures to contain the virus from entering the country. On reports of the disease from its import destinations, Rashid Ahmed bin Fahad, the minister of environment and water of the UAE has issued a directive to allow only livestock and related imports that fulfilled certain parameters set by the ministry.

A large portion of animal imports to the UAE come from the European countries including the UK, Portugal and Austria. There are several cases reported in the last one year from countries such as – Germany, Italy, Norway, Greece, Spain, Israel, Sweden, the Czech Republic, Denmark, Algeria and Austria.

Blue-tongue virus is non-transmittable to humans and non-contagious among animals. The disease is characterised by changes to the mucous membranes of the tongue and nose, and certain types of midges are vectors of this animal disease. The ruminants including camels, cattle and sheep are chiefly susceptible to the virus.

According to new regulation, every animal arriving from blue-tongue affected countries will be individually inspected. Prior to the directive, only a random sample of about 10 per cent of each shipment had undergone inspection.

Besides, the animals should not be stung by the midges for a period not less than 28 days from the date of shipping. Regarding import of sperm, embryos and ova, the donating animals should be immunised against stings of midges for a period not less than 60 days before and during the process of collecting the sperm, ova and embryos.

However, OIE is surprised by the timing of the UAE’s move to clamp restrictions to animal imports particularly because these strains have been reported for more than a decade in Europe and the Mediterranean. Glaieul Mamaghani, deputy director of communications at the OIE asserted that the virus could not be transmitted to humans. The UAE ministry said that the effective date for the new regulation would be made known in a few days’ time.

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Shipping Company Prays for New US Law to Arm Ships against Piracy http://www.cosmizen.com/2009/05/shipping-company-prays-for-new-us-law-to-arm-ships-against-piracy/ http://www.cosmizen.com/2009/05/shipping-company-prays-for-new-us-law-to-arm-ships-against-piracy/#comments Wed, 06 May 2009 12:55:04 +0000 http://tradetimes.wordpress.com/?p=414 Continue reading]]> While testifying before a Senate subcommittee over the pirate attack on one of his vessels last month, Philip J. Shapiro of Liberty Maritime Corp. appealed to the Congress to pass a legislation allowing ships to carry firearms to defend them from piracy. He pointed out that the law dating back to 1819 allowed all US-flagged ships the right to self-defence but recently enacted State Department arms export regulations effectively prohibit the arming of vessels.

On the contrary, the Maersk chairman John Clancey had told the subcommittee last week that arms on ships could make the seas even more dangerous. He had added arming merchant sailors might result in the acquisition of ever more lethal weapons and tactics by the pirates making them furthermore defenceless.

Though heads of both leading shipping companies have contrasting views about arming their ships against sea piracy, according to sources, the military has admitted that guarding the Gulf of Aden about four times the size of Texas would be a gargantuan task. Navy Vice Adm. James A. Winnefeld said it would put a “large dent” in the Navy’s capacity and funding if it had to assign a military security force to each ship in the region.

Shapiro’s call comes in the wake of an aborted attempt on his ship which was on a humanitarian ‘food for Africa’ relief mission and a series of piracy at the Somali waters including the failed attack on the cargo ship Maersk Alabama. It should be recalled while rescuing the mariners of Alabama three pirates were killed. He said the Maersk Alabama incident had become a game-changer as the pirates wanted to avenge the killings of their accomplices, and had now issued direct threats against the US merchant sailors.

At the hearing, Shapiro also opposed the government’s official advice in discouraging ransom as it would only jeopardize the lives of the US mariners. Since the law would take its own time for implementation, until then, the president and CEO of Liberty Maritime wanted the authorities to urgently sanction government security teams or naval escorts for all US-flagged vessels on high-risk transits.

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Foldable Shipping Containers All Set to Reduce Logistic Cost http://www.cosmizen.com/2009/04/foldable-shipping-containers-all-set-to-reduce-logistic-cost/ http://www.cosmizen.com/2009/04/foldable-shipping-containers-all-set-to-reduce-logistic-cost/#comments Sun, 05 Apr 2009 03:02:40 +0000 http://tradetimes.wordpress.com/?p=172 Continue reading]]> Avinder Bindra, who shared 26 years of his professional life with Citigroup Inc. and later four years at HSBC, approached Indian Institute of Technology (IIT), Delhi with a project of inventing collapsible containers, four years ago. Prof. Anup Chawla and Prof. Sudipto Mukherjee took up the challenge and produced logistically cost-saving container which will soon replace more than half a century old Malcolm Mclean containers. The project was funded by Avinder himself and was completed in little more than three years.

Twenty-foot Equivalent Unit (TEU) is the standard size of a container in the logistic business. The team was able to invent a collapsible container that is one-fourth of the standard-sized container when folded. The shipping industry spent a lot of time and money in transporting empty containers after unloading, especially from ports where equivalent amount of goods were not available to be shifted. It is estimated, more than 30-40 percent of shipping is done for the movement of the empties. In 2003 alone, $11 billion has been spent just for repositioning the empties and these figures are excluding the storage costs. It is quite common to hire an entire ship for repositioning and Ocean Carriers, one of the majors of the industry stated, they have spent $16 billion last year on the same.

The IIT duo’s amazing new design can carry four containers in the space occupied by one of the present containers. It opens upward to allow top loading of both soft and hard commodities. The expansion and folding could be done in less than 5 minutes and is not complicated either. However, the initial cost of the new container will be 10-15 percent more than the current one, which costs about $2000. The container has already received positive feedback from leading shipping companies such as Maersk Line, logistic firms and port operators.

Once the certifications from global agencies, Lloyds Register and Bureau Veritas are completed, a requirement for any marine equipment; the invention will soon streamline the shipping industry in the coming years. As Chawla puts it, it would also bring down traffic, reduce pollution and not to mention, a drastic cut in oil usage. The surcharges levied from the exim firms on the empties could also be reduced, which would ultimately bring down the prices of the commodities shipped. According to Drewry Shipping Consultants Ltd., the global container traffic is estimated to reach 350 million TEUs by 2024. Therefore, such a simple, awesome invention by two Indian professors will give much needed fillip to the global logistic industry that has already run aground by ever-rising crude prices.

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