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C.I.S.Co.
Council of Intermodal Shipping Consultants
Via Garibaldi, 4
16124 Genova GE (Italia)
Tel. 010 2518852
Fax 010 2518852
e-mail [email protected]
www.ciscoconsultant.it
C.I.S.Co. Newsletter March 31st 2015
YEAR XXXIII
Issue of March 31st 2015
PORTS AND TERMINALS
BLACK SEA CONTAINER TERMINALS OF UKRAINE, ROMANIA, RUSSIA, GEORGIA
AND BULGARIA HANDLED 2,610,623 TEUS IN 2014 ...............................................
Page 3
MARITIME TRANSPORT
CONTAINER SHIPPING ALLIANCES COULD BE THE KEY TO SURVIVAL
FOR MID-SIZE OCEAN CARRIERS ...................................................... ..................
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RAIL TRANSPORT
FIRST CENERI BASE TUNNEL BREAKTHROUGH ….....................................................
ROAD TRANSPORT
TELLISYS PRESENTS A TRANSPORT CONCEPT WITH ULTRA-LOW FLOOR
INCREASING CARGO VOLUME BY 20% ..................................................................
INTERMODAL TRANSPORT
RAIL-AIR FREIGHT COULD BE THE SOLUTION FOR SHIPPERS GOING
FROM ASIA TO THE AMERICAS .............................................................................
LOGISTICS
FREIGHT SECTOR COULD BE SET FOR NEW WAVE OF M&AS - PANALPINA CHIEF ...........
LAW & REGULATION
JOINT INDUSTRY STATEMENT ON THE MID-TERM REVIEW
OF THE EU’S MARITIME TRANSPORT POLICY .............................................................
PROGRESS & TECHNOLOGY
BREAKTHROUGH BENEFITS ....................................................................................
C.I.S.Co. Newsletter March 31st 2015
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STUDIES & RESEARCH
CONTAINER SHIPPING TRADE GAP BETWEEN NORTH AMERICA
AND THE MED GETTING WIDER .............................................................................
Page 23
CONFERENCES
KUEHNE + NAGEL CEO AT TPM: SHIPPERS WILL PAY FOR MORE RELIABLE SERVICE .......
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ON THE CALENDAR ..............................................................................................
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March 31st 2015
The content of the C.I.S.Co. Newsletter is also published in the newspaper "Informare"
accessible on the Internet site http://www.informare.it
C.I.S.Co. Newsletter January 31st 2015
3
PORTS AND TERMINALS
BLACK SEA CONTAINER TERMINALS OF UKRAINE, ROMANIA, RUSSIA,
GEORGIA AND BULGARIA HANDLED 2,610,623 TEUS IN 2014
Black Sea container terminals of Ukraine, Romania, Russia, Georgia and
Bulgaria handled 2,610,623 TEU in 2014, including empty containers,
excluding transshipment.
This review observes only full containers of the region – 1,854,623 TEU.
Total growth reached by these five countries for the period is 0.56% compared
to the same period last year.
The largest increases were in Georgia and Romania.
Ukraine had a decrease of turnover in the first half of 2014 and after third and
fourth quarters of 2014 its turnover still was decreased compared to 2013.
FULL CONTAINERS TURNOVER BY COUNTRIES, TEU
Country
2014, TEU full
2013, TEU full
Growth,%
Ukraine
552,284
634,359
-12.94%
Russia
475,679
460,570
3.28%
Romania
415,743
381,135
9.08%
Georgia
255,958
225,756
13.38%
Bulgaria
154,959
142,461
8.77%
Total
1,854,623
1,844,281
0.56%
During this period, 58.51% of the full containers handled were imported, with
41.49% of the volume being exported.
It is estimated that 71.04% of the containers were full and 28.96% were
empties.
58.51% of Black Sea volumes is import.
C.I.S.Co. Newsletter January 31st 2015
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Export volumes from the aforementioned countries increased by 7.85%
relative to 2013.
The highest export growth was reached by Georgia – 32.16% and Russia –
16.17%.
In Bulgaria, Romania and Ukraine there was a slight increase.
Imports to the region decreased by 4.04%, mainly because of Ukrainian import
volume drop -24.44%.
Import volumes for the period increased almost in all countries except Ukraine
and Russia.
Georgia had a record
increase of full export
volumes – 32.16%.
Thus the percentage of
volume
handled
by
each
country
distributed as follows:
Ukraine
–
29.78%,
Russia (Black Sea) –
25.65%, Romania –
22.42%, Georgia – 13.80%, Bulgaria – 8.35%.
The top-five container terminals of the region in 2014 changed their positions
in total volumes handled: DPW (Constanta, Romania) still was on the first
place, HPC Ukraine (Odessa, Ukraine) moved from the second to the fifth
position, APMT Poti (Georgia) moved from the third to the second position,
Novoroslesexport (Novorossyisk, Russia) and NUTEP (Novorossiysk, Russia)
took third and fourth place respectively.
All of them showed drop with the exception of DPW (Constanta, Romania) and
APMT Poti (Georgia).
As for the lines in the region, the leaders remained the same: MSC, Maersk
Line, CMA CGM, ZIM and ARKAS.
CMA CGM took the third place in 2014 and ZIM became fourth, while in 2013
CMA CGM was fourth and ZIM was third.
Mentioned carriers control 71.58% of this market.
(from: hellenicshippingnews.com, March 25th 2015)
C.I.S.Co. Newsletter January 31st 2015
5
MARITIME TRANSPORT
CONTAINER SHIPPING ALLIANCES COULD BE THE KEY TO SURVIVAL
FOR MID-SIZE OCEAN CARRIERS
To remain competitive and have any hope of returning to consistent
profitability, mid-sized container shipping lines need to undertake a deeprooted internal transformation and form alliances.
According to a report released last week by Boston Consulting Group (BCG),
around $1bn of savings could be shared
by partners in each “midsize alliance”.
This equates to 2.5-3% of the overall
cost base of current alliances, if carriers
joined forces on a whole range of cost
factors.
BCG described the container shipping
industry as “a dangerous combination
of fragmentation and overcapacity that
has fuelled a downward spiral that has
decreased earnings”.
It said this had allowed just two types of shipping lines to flourish in recent
years: the largest deepsea carriers such as Maersk and CMA CGM, with hugely
competitive economies of scale and “a laser-sharp focus on operational
improvements in response to persistently decreasing freight rates”; and niche
specialists that have developed in a specific region catering for particular cargo
interests, such as Wan Hai.
Most of the remaining top-20 carriers are mid-sized deepsea lines that have
been trapped in a vicious cycle since the onset of the recession, posting losses
and destroying chunks of shareholder value.
And while the dramatic fall in bunker costs could see many carriers at least
exit loss-making territory, “this will be a temporary profit windfall that will
erode quickly, and it could give unwary carriers a false sense of sustainable
profitability”.
There are grounds for optimism, however, suggests BCG, arguing that with
wide-ranging internal transformation, such carriers could improve their
C.I.S.Co. Newsletter January 31st 2015
6
operating margins by five to seven percentage points within two to three
years.
Secondly, more work needs to be done to realise the full benefits of alliances,
which continue to have large amounts of strategic value untapped – the
potential benefit is another two to three percentage point improvement in
operating margins.
“A value-added alliance model can unlock far
more substantial value in the form of cost
synergies, gained through joint procurement,
joint operations and equipment pools.
Integrated alliances can build on those gains,
adding consolidated back-office functions and
joint development of IT solutions,” says BCG.
“Of course, such tightly knit alliances aim to generate competitive advantage
and value for the long run, because those partners will find it harder to
separate from these arrangements than from looser kinds of alliances.
“Our investigations with speciality lawyers and former European and US
maritime commissioners suggest that carriers face limited legal hurdles in
building such operating models – provided that alliances don’t exceed certain
size thresholds or distort competition.
Many elements of the value-added and integrated alliance models are already
in place in some currently filed alliance
agreements.
“Moreover, some regulations allow a
wide range of synergy opportunities for
alliances, including joint operations,
equipment pools and IT development.”
How this is likely to be received by shippers and regulators remains open to
question.
The proposed P3 alliance of Maersk, MSC and CMA CGM was rejected by
China’s Ministry of Commerce on the grounds that a joint operations centre,
much like that suggested in the BCG report, represented a merger rather than
alliance.
The UK-based Global Shippers Forum (GSF) today said that alliances should
develop a set of key performance indicators (KPIs) to monitor and ultimately
improve schedule reliability.
C.I.S.Co. Newsletter January 31st 2015
7
At a conference in Gdansk, GSF secretary general Chris Welsh said: “Shipping
alliances need to take responsibility for monitoring, measuring and
benchmarking their performance on key trade routes to demonstrate enhanced
alliance performance, and make that information transparent to regulators and
their customers as evidence of their
commitment to showing the procompetition
benefits
of
improved
alliance services.”
Mr Welsh argued that such a move could
pave the way for disbanding the liner
conference systems still prevalent in
many maritime jurisdictions.
“The alliance lines leadership should
take the ultimate confidence-building
step of pulling out of all conference and
discussion agreements to give assurances that the exchange of sensitive
information – including pricing information – on a regular basis within alliances
does not lead to abuses of their market power or erect barriers to market
entry.
“While we recognise that the world’s main regulators and competition
authorities have different regulatory approaches, there is some commonality
and convergence in outcomes: namely preventing anti-competitive conduct by
ensuring that unreasonable higher shipping costs are not imposed on shippers
through information exchanges or manipulation of capacity,” he said.
He added that sharing monitoring data between Chinese, US and European
anti-competition regimes would further prevent possible abuse within alliances.
(from: theloadstar.co.uk, March 23rd 2015)
C.I.S.Co. Newsletter January 31st 2015
8
RAIL TRANSPORT
FIRST CENERI BASE TUNNEL BREAKTHROUGH
After one final blast, at exactly 12:00 noon today, Tuesday, March 17, 2015,
the miners in the Ceneri Base Tunnel could shake hands.
Thirteen months ahead of schedule, the first breakthrough to the south took
place in the west tube of the Ceneri Base Tunnel.
The final breakthrough to the north is planned for the beginning of 2016.
The Ceneri Base Tunnel will become operational at the end of 2019.
In his address, Renzo Simoni, Chief Executive Officer of AlpTransit Gotthard
Ltd, spoke of his great pleasure at the efficient progress on construction and
expressed his thanks to everyone involved, especially the miners.
"This first breakthrough in the Ceneri Base Tunnel is a further important
milestone
in
the
construction of the New
Rail Link through the
Alps.
Only with
the
15.4kilometres-long
base
tunnel
under
Monte
Ceneri will the continuous
flat route from Altdorf to
Lugano become reality."
Around 400 metres away
from the south portal at Vezia, in the presence of the Director of Construction
of the Canton of Ticino, Claudio Zali, more than 600 miners and project
participants followed the first breakthrough of the Ceneri Base Tunnel.
In the southbound west tube, breakthrough took place with great accuracy: at
two centimetres horizontally and one centimetre vertically, the deviation was
extremely small.
Breakthrough in the southbound east tube is scheduled for the end of March
2015.
C.I.S.Co. Newsletter January 31st 2015
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Driving in the northbound tubes is still progressing at full speed.
Until the breakthrough point at Vigana, the distance remaining to be excavated
in the west tube is around 1,500 metres and in the east tube around 2,000
metres.
All being well, final breakthrough of the Ceneri Base Tunnel will take place at
the beginning of 2016.
(from: railwaybulletin.com, March 20th 2015)
C.I.S.Co. Newsletter January 31st 2015
10
Numero del 15 Ottobre 2012
ROAD TRANSPORT
TELLISYS PRESENTS A TRANSPORT CONCEPT
FLOOR INCREASING CARGO VOLUME BY 20%
WITH
ULTRA-LOW
With a vision to further increasing intermodal container transportation
efficiency, TelliSys presents a prototype of a tractor-semi-trailer-combination
with an ultra-low fifth-wheel position that leads to 20% more cargo volume.
Significant savings in fuel consumption and CO2 emissions per ton/kilometer
are therefore possible within intermodal container transportation.
TelliSys is a partnership between the IMA of the RWTH Aachen University, the
European Intermodal Association, DAF, GEFCO, Goodyear, WECON and WESOB
and aims to make possible the transport of containers with an internal height
of 3 meters.
As a result, 3 so-called ‘metre-trays ‘ can be stacked in a container, so that
load volumes up to
100
m3
can
be
realized.
85
cm
fifth-wheel
height
within
the
TelliSys
consortium,
DAF has developed a
Super
Low-Deck
tractor.
By lowering the chassis
behind the engine and
by the use of a very
compact rear wheel
suspension in combination with 22.5″ wheels on the driven axle, a fifth wheel
height of only 85 cm is achieved.
In addition, the special Low-Deck tractor has a lightweight 4.0-tonne trailing
axle with 17.5″ wheels to achieve a GVW of 44 tonnes.
For the project Goodyear has developed special new low profile tyres for the
steered and driven axles.
C.I.S.Co. Newsletter January 31st 2015
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These tyres are characterized by a very low height with high load capacities.
New generation of containers elaborating on the DAF Super Low-Deck tractor’s
fifth wheel height of only 85 cm, WECON developed a special lightweight trailer
of just 3,830 kg.
Just as important is the development of a new generation of 40 and 45 foot
containers, of which the floor is considerably thinner while maintaining loadbearing capacity and torsional stiffness.
On the prototype, WECON has fitted a folding curtain to underline the
versatility of the TelliSys Intermodal Technology Concept.
Start of field test obviously, in the development of the concept truck not only
dimensions and load capacities have been taken into account, but full attention
was also given to maneuverability, comfort and operational effectiveness.
The TelliSys combination will now start an extensive field test with logistics
partner GEFCO, in which truck, trailer and container will be used intensively
within its intermodal transport operations by road, rail and water.
“TelliSys has shown that it is possible to achieve 20% greater efficiency for
container transportation,” said intermodal consultant Heiko Sennewald, who is
both partner and initiator of the project.
“The field test performed by GEFCO will have to prove the practicality of the
system.”
The results will determine whether market introduction is feasible, also
depending on market interest.
In order to gauge this we will exhibit the TelliSys Intermodal Technology
Concept in early May (5th till 8th) at the Transport Logistics exhibition in
Munich.
It is important to stress that this technology concept won’t be on the market
on short notice.”
The “Intelligent Transport System for Innovative Intermodal Freight Transport”
(TelliSys) promotes the EU’s objective of optimizing the performance of
intermodal logistics chains and provides smooth and cooperative interactions
between different modes of transport.
The project has started in December 2012 and is funded within the 7th
Framework Programme (FP7) of the European Union for a period of three
years.
(from: eurift.eu/ukhaulier.co.uk, March 21st 2015)
C.I.S.Co. Newsletter January 31st 2015
12
NNO XXX
INTERMODAL TRANSPORT
RAIL-AIR FREIGHT COULD BE THE SOLUTION FOR SHIPPERS GOING
FROM ASIA TO THE AMERICAS
Rail-air freight is becoming an increasingly feasible option for shippers looking
for more sustainable long-haul routes.
Problems on the rail link between China and Europe have mostly been solved,
speakers from DHL Global Forwarding and DB Schenker told delegates at the
World Cargo Symposium in Shanghai this morning.
“Rail is becoming an important solution in the industry,” acknowledged Nover
Jin, DHL GF’s product head, air freight for east China.
“It will replace some sea freight and take over some air freight.
It is flexible, can meet business peaks and has on-demand performance.”
There had been concerns over security, different rail gauges in different
countries and the weather on the rail link between Chongqing and Duisberg.
But for the most part, these had been solved, said Mr Jin.
Both DHL GF and DB Schenker are using temperature-controlled containers or
insulated containers for
goods unable to contend
with the severe cold in
winter.
tracking had improved security.
Eight
different
rail
companies across the
network were working
better together and DPS
“As soon as a container door is opened a signal is generated,” explained Lothar
Moehle, director air security standardisation for DB Schenker.
“We have to allow for an option for Customs to open a container, but if a
shipper requires it, a signal can be generated that alerts a security company
connected with the police.”
C.I.S.Co. Newsletter January 31st 2015
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He did acknowledge that both the reefer options and security cost shippers
more, but the rail-air link to the Americas from China could speed up journey
times significantly: from 50-55 days by sea, westbound, to 23-25 days by rail
and air.
“We use rail as a base to add on air,” said Mr Moehle.
”Customers got caught out a few years ago.
Air freight become too expensive while ships started slow-steaming, and that
opened a gap for a solution.”
Noting that at first it had seemed counter-intuitive to go eastbound for what
had been a transpacific service, Mr Moehle explained that containers leave
China and arrive in Duisberg, where they are taken by truck to an air hub,
such as Frankfurt, Amsterdam or Luxembourg.
The container is then unpacked and transferred into several air shipments, and
flown to the destination in the Americas.
DB Schenker had started the route for a European electronics customer
wanting a faster service from China to Sao Paulo.
“It wanted to reduce transit times and this service had an economic
advantage.”
The freight cost, capital cost and time can make rail-air an efficient option.
Rail worked for most commodities, said Mr Moehle, including hi-tech,
automotive, manufacturing, consumer goods and telecoms.
He added that it also had an environmental benefit over air freight.
Forwarders consolidate where possible along the route, but Deutsche Bahn
does offer an LCL service.
“This is a sustainable business, provided the political situation [across the
countries] allows it.
It’s early days, but it could be a regular alternative,” argued Mr Moehle.
The service could be facilitated by China’s forthcoming acceptance of the TIR
trucking licence scheme.
In January it started the process of joining the TIR, which can be applied to
any journey that includes trucking, even if it is only the first or last mile.
C.I.S.Co. Newsletter January 31st 2015
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“In theory, TIR means a container on rail wouldn’t need to be opened, but you
can’t stop a Customs official with suspicions,” said Marek Retelski, TIR and
head trade facilitation at the International Road Union.
“But when China joins TIR we will be able to use trucks in a faster and cheaper
way.”
Other countries signing up to the scheme include Afghanistan, the UAE, and
Pakistan, while there is also interest from Argentina, Brazil, Iraq, Saudi Arabia
and several countries in Africa.
(from: theloadstar.co.uk, March 11th 2015)
C.I.S.Co. Newsletter January 31st 2015
15
LOGISTICS
FREIGHT SECTOR COULD BE SET FOR NEW WAVE OF M&AS
PANALPINA CHIEF
-
Panalpina’s CEO believes the freight forwarding and logistics market may be
set for a new wave of mergers and acquisitions (M&As), but said his own
company would not participate until at least the end of 2016.
Speaking during a conference call earlier this week, Peter Ulber, said: “Some
of the recent deals in Japan, to mention just two, could ce fixing them one by
one rtainly be the beginning of another wave (in M&As).
There are some companies in this business who are not doing very well and
some which were almost taken over.
So clearly there is some activity in the market.
“We have said before that it would not be responsible on our part to make a
major acquisition right now
while we are putting in the
new (IT and management)
systems
across
the
company.
That would take too much
focus
away
(from
this
work).
“But at the end of 2016, we
want to be in a position and
in a situation where we can take part in the consolidation (in the industry).”
He underlined that while it was unlikely Panalpina would be getting involved in
M&A before the end of next year, this did not imply that the group was not
currently in a position to do so.
“We are certainly able now (to make acquisitions).
We've not solved all of the issues (facing the company) but by now we know
where the various issues are, and step-by-step we are fixing them one by one.
C.I.S.Co. Newsletter January 31st 2015
16
So we're certainly looking at tactical opportunities for bolt-on acquisitions when
and where they become available,” he said.
Ulber’s views reinforce some of the conclusions within a report earlier this year
by Transport Intelligence (Ti), which said that despite the weak state of the
European economy, the conditions were right for a significant upturn in
mergers and acquisition activity.
Its ‘European Logistics: Mergers & Acquisitions 2014’ report said the deals
would be driven by a number of micro-economic factors: technology; changes
in the retail sector; fast-growing sectors such as healthcare and
pharmaceuticals; and nearsourcing.
The report also suggested that European logistics companies would also be
targeted as stronger, profitable Asian companies expand their networks into
Europe.
Major acquisitions already announced this year include the planned US$5.1bn
takeover of Toll Group by Japan Post and Kintetsu World Express’s US$1.2
billion purchase agreement for NOL’s logistics business, APL Logistics.
(from: lloydsloadinglist.com, March 6th 2015)
C.I.S.Co. Newsletter January 31st 2015
17
LAW & REGULATION
JOINT INDUSTRY STATEMENT ON THE MID-TERM REVIEW OF THE EU’S
MARITIME TRANSPORT POLICY
In June 2014, the Council invited the European Commission to present a midterm review of the EU’s Maritime Transport Policy until 2018 and outlook to
2020.
Eager to provide the Commission with valuable input, ECSA, ECASBA, ETA,
EuDA, CLIA Europe, Interferry and WSC have decided to make the review
exercise the cornerstone of the European Shipping Week 2015.
Following the very fruitful discussions held in the context of the week’s flagship
conference entitled “Charting the route of EU shipping policy: an input to the
EU maritime transport strategy review”, the main representative bodies of the
shipping industry have adopted the following statement.
Shipping is a global industry faced with increasingly fierce competition.
Shipowners need a stable and predictable EU fiscal regime and a regulatory
framework in accordance with international rules in order to maintain their
competiveness and ensure shipping’s beneficial impact to the EU economy and
society, while maintaining a global level playing field.
These international rules, including environmental and safety regulations,
which need to be adopted by the International Maritime Organisation in order
to be global, should promote the highest standards for worldwide quality
shipping, in line with the interests of our industry.
The EU discourse surrounding the industry’s sustainability should be reevaluated.
Shipping is the most efficient form of commercial transport as it emits far less
per tonne/km than other modes and carries around 90% of goods worldwide.
When it comes to CO2 emissions, far from being the root cause of the problem,
shipping is and should be viewed as part of the solution.
By shifting more cargo and passengers to the sea, the EU can thus exploit the
superior energy-efficiency of shipping to reduce its global CO2 emissions.
C.I.S.Co. Newsletter January 31st 2015
18
The shipping industry does not rest on its laurels and is actively pursuing the
reduction of its carbon footprint, and indeed those of other gas emissions for
example SOx and NOx, but in order to do so effectively, EU environmental
standards should be aligned with those at global level.
The shipping industry needs skilled labour as it plays an integral part not only
on-board ships but also, and perhaps more importantly, in the wider maritime
cluster.
Without a new generation of seafarers and shore-based shipping personnel,
the whole maritime cluster
stands to lose its know-how.
The key objective must be the
improvement
of
the
attractiveness of the seafaring
profession,
which
can
be
achieved,
among
others,
through the reduction and
streamlining of administrative
formalities and the fight against
the risk of criminalisation of
seafarers following maritime
accidents or discriminatory restrictions on shore leave.
Furthermore, the internal market has not yet delivered its full potential for
shipping, as significant administrative burdens and customs hurdles remain
throughout Europe, preventing the EU from reaping the fruits of a truly
European Maritime Transport Space without Barriers.
Customs procedures are burdensome and place shipping at a disadvantage
when compared to other modes of transport, resulting in huge productivity
losses and placing unnecessary stress on maritime professionals.
Addressing any potential abusive restrictions on market access to port services
and/or inefficiencies observed in European ports would also be mutually
beneficial to the EU economy and the EU shipping industry.
By making waterborne transport more attractive to shippers, the EU also
stands to make strides in its efforts to reduce its CO2 emissions.
For shipping to remain a facilitator of trade, a provider of jobs and a dynamic
sector of the economy, the EU must carry on with what it does best: continue
its role as a commercial heavyweight.
Free Trade Agreements are mutually beneficial to the EU and the shipping
industry as they ensure the prosperity of the Union, by relying on the services
of the industry.
C.I.S.Co. Newsletter January 31st 2015
19
Consequently, it is vital to keep the open seas secure and eliminate all threats
of piracy and armed robbery that put human life as well as the global logistics
chain at risk.
The EU institutions should also ensure a more efficient deployment of adequate
Port Reception Facilities in all EU ports and facilitation of the seafarers’
movement from third countries within the Schengen Area, as well as other
measures that allow the cruise industry and other sectors of the shipping
industry to continue supporting the sustainability of coastal communities
through trade and marine tourism.
Finally, special reference is made to a recent topic that has been causing much
concern to the industry: migrants at sea and in particular the recent events
relating to the growing refugee and migrant crisis in the Mediterranean.
The industry will never shy away from its obligation of assisting any person at
sea faced with serious danger.
It must be recognised, however, that in spite of their best efforts, crews are
not trained in humanitarian operations and ships are scantily equipped to deal
with dozens or hundreds of distressed people, including women and children.
The EU and Member States must find a solution to this ever deepening crisis,
taking steps to ensure that migrants found at sea can be taken ashore at the
earliest possible opportunity in order that they can be given the correct and
necessary humanitarian and medical care and support under the best possible
conditions, and these are only available ashore.
It should be understood that, as in the case of piracy, the shipping industry
should not be relied upon to execute tasks and undertake initiatives that
should be the sole prerogative of governments and international bodies.
The organisations endorsing this statement are:

ECSA, the European Community Shipowners’ Associations;

CLIA, Cruise Lines International;

ECASBA, European Community Association of Ship Brokers and Agents;

ETA, the European Tugowners Association;

EuDA, European Dredging Association;

Interferry;

WSC, the World Shipping Council.
(from: hellenicshippingnews.co,/ecsa, March 5th 2015)
C.I.S.Co. Newsletter January 31st 2015
20
PROGRESS & TECHNOLOGY
BREAKTHROUGH BENEFITS
The ports sector is a pretty conservative industry and not known for rushing to
try out new technologies.
And, to be fair, nanotechnology isn't exactly a mainstream topic for most of us.
But ask the experts and they will point out a myriad of nanotechnology
applications that are clearly relevant to the maritime world - and, indeed,
identify some already in use.
Looking at what could be achieved through nanotechnology, the benefits
include saving fuel, reducing pollution, improving maintenance/operations,
protecting equipment from corrosion, incorporating sensors for various
functions, creating more efficient lighting, and enabling new security
measures.
Recently, GE Global Research announced the development of new RFID-based
sensors for detecting chemicals used in explosives or other hazardous
materials at ports.
The penny-sized, battery-free RFID tags are coated with a sensing material
that
responds
to
explosives
and
oxidisers and could be
placed on the outside
of a container or on
other surfaces.
If the presence of an
explosive or oxidiser is detected, the sensing material will change its electronic
properties and trigger the RFID tag to send an alert to a reader.
These sensors could dramatically increase the accuracy and improve the limits
of detection of dangerous chemical threats, says Radislav Potyrailo, GE's
principal investigator on the project.
“Fast and accurate chemical detection and quantification are vital to help
ensuring the safety of cargo that passes through our nation's ports.”
C.I.S.Co. Newsletter January 31st 2015
21
Other ongoing developments have ranged from an underwater robot for port
security to nanotechnology-based solutions for oil spills, including nanodispersants, oil-absorbing robots and magnetic materials.
Port plus
“There will be situations all over the place in a port where you already have
nanotechnology and don't know it,” says Terry Wilkins, chief executive of the
NanoManufacturing Institute, a Leeds-based organisation that acts as a conduit
between academia and industry.
“Think of the hidden and embedded microchips in all the computerised
transistors and diodes.
Nanotechnology is in all of our lives - for example, in the microchips in our cell
phones, which contain billions of tiny transmitters 100,000th the width of a
human hair.
Or touch screens, which are covered with a film containing nano-particles,
which change the electrical properties of the surface of the screen.”
He believes we have now gone through the 'nano-hype' phase of 'just about
everything was possible and was going to happen'.
“We are now at a point where we can understand nanotechnology and see
where it can be useful
and where, frankly, it
might be a waste of
time.
And that's the key understanding
which
stuff is worth investing
in to create products and
processes in industry.
We have started the journey into realism.”
What, then, might that deliver for the ports industry?
“It is a case of looking at where you could make shipping more efficient,
reduce environmental impact and reduce energy consumption,” he says.
“What would make a crane more efficient and more effective? Reducing power
consumption, for a start.
“Then there is a lot of work being done on corrosion - for example, on oil
drilling platforms.
C.I.S.Co. Newsletter January 31st 2015
22
There are potential surface treatments using nanotechnology or even
bionanotechnology to inhibit and prevent corrosion and prevent antifouling clearly applicable to shipping.
And as well as antifouling and anti-rust coatings, nanotechnology is also
delivering self-cleaning surfaces, which work on glass, too.”
Engine aid
Nanotechnology is being applied to prolong the life of hard-working engines using 'nano-layers' on the wearing parts to provide a hardened surface that
doesn't wear very much and also works with new generation engine oils
effective over the range of temperatures and power.
It is also delivering more efficient burning of fuel, says Mr Wilkins.
By adding nano-particles to the fuel, savings of between five and nine per cent
have been demonstrated.
Nanotechnology is also delivering ever more minuscule and cheaper sensors offering opportunities for increased automation and also the capture of
performance information on equipment, to allow for more preventative
maintenance and longer running between maintenance stops.
Solar cells are another major area of focus, together with all forms of power
generation.
“Nanotechnology supporting energy production, transmission and storage
would make a big impact,” says Mr Wilkins.
“Solar power will be so much better.”
Another area coming to the market is polymer composites - reinforced plastics
created to be thin, lightweight and stronger, at the same time possessing extra
electrical and thermal properties - described as a new category of hybrid
materials.
Nanostructured composites are used in aerospace and the automotive
industry.
“We probably won't have plastic ships but perhaps there could be plastic
containers,” says Mr Wilkins.
“Perhaps a rigid frame, with the rest reinforced plastic - the lighter weight
would provide cheaper shipping.”
C.I.S.Co. Newsletter January 31st 2015
23
Some areas of nanotechnology are moving at a faster pace than others, he
says.
“But nanoscience has today become part of mainstream science - the difficulty
is
supporting
smaller
companies in initiatives
and growth.”
Scientists and academics
can deliver great ideas,
but
these
have
to
translate effectively into
the real world and be
cost effective, he says.
No
matter
how
marvellous an invention might be, take-up is unlikely if it's more expensive
than the traditional, proven method it seeks to replace.
Cost criteria
Andrew Penfold, project director at Ocean Shipping Consultants, agrees: “The
first issue is going to be the cost versus the benefits.
A port or terminal will have to see tangible benefits to undertake the
investment.
There is primary, essential investment, such as in the key infrastructure cranes, quay, etc., which is necessary to remain competitive and to retain and
attract traffic.
So, on this basis an assessment of the need [to invest] will always be an initial
take on the subject by a port operator or authority.
The ports/maritime sector is generally quite conservative, but at the same time
I've always felt that it is open to new technology - once it can be proven - if it
can improve their operation and effectiveness to customers.”
If there are definite benefits to be derived, such as reducing pollution or
improving maintenance/operations, then that would be a deciding factor in
how much a nanotechnology-based initiative would gain traction, says Mr
Penfold.
“Operating expense is, of course, a major factor in the operation of any port or
terminal and the ability to reduce it and gain a longer working life out of
equipment without compromising the level of operational efficiency and service
to customers will no doubt appeal greatly.
C.I.S.Co. Newsletter January 31st 2015
24
I see the challenge as seeing the proof - once there is definite proof that there
are benefits then I'd expect operators to be interested in learning more and
how they might benefit.”
(from: portstrategy.com, March 9th 2015)
C.I.S.Co. Newsletter January 31st 2015
25
STUDIES & RESEARCH
CONTAINER SHIPPING TRADE GAP BETWEEN NORTH AMERICA AND
THE MED GETTING WIDER
The trade gap between the Mediterranean and North America has widened
significantly, according to recent analysis from Drewry.
The analyst says steady growth on the headhaul westbound leg has been
marred by “sliding backhaul activity”.
Drewry noted that December saw year-on-year growth of 8.4% on the
westbound leg, a “stark contrast” to the 19.8% decline on the backhaul
eastbound trade.
Indeed, with the stronger conditions westbound, Maersk Line today announced
a $300 per container general rate increase from the Med to North America to
begin on 1 April.
According to Drewry’s 12-month rolling average data, the fall in eastbound
trade
was
particularly
pronounced in September
and October – around the
time it became apparent
that
the
19-member
Eurozone was moving from
a negative deflationary
mode towards stagnation.
Drewry said that with the
peak
season
looming,
carriers needed to pin their
hopes on a Eurozone
recovery to address the
weaker eastbound leg.
According to the analyst, vessel utilisation levels from North America to the
Mediterranean fell to a lowly 38% by December, compared with around 50% at
the beginning of 2014.
And the immediate outlook for the trade remains pessimistic.
C.I.S.Co. Newsletter January 31st 2015
26
According to data from its Container Freight Rate Insight, Drewry said: “The
average all-in rate charged by forwarders for spot cargo from New York to
Genoa sank to $1,120 per 40ft in January 2015, down 8% month-on-month.”
Moreover, if carriers are increasingly obliged to scratch around for cargo to fill
eastbound slots, the chances that spot rates will spiral downwards increases.
The widening trade imbalance, says Drewry is illustrated by the supplydemand ratio between the Mediterranean and North America in December:
estimated monthly capacity was 156,000 teu, with demand in the westbound
direction at 104,000 teu and eastbound at just 60,000 teu.
Since the end of last year, the euro’s value has fallen by about 15% against
the dollar to around $1.08, prompting some economists to predict parity by
the summer.
Consumers and industries in southern Europe, already challenged by austerity
measures, now face paying higher prices for US goods than previously, thus
further denting trade prospects.
This week, the European Central Bank finally launched its €60bn per month
quantitative easing programme, which aims to increase consumer spending by
pumping money into the troubled Eurozone.
It is a strategy that generally worked for the US and UK economies in the
aftermath of the financial crisis, but economists are divided as to whether
printing money in an unwieldy Eurozone will have the same impact, not least
due to the continuing Greek debt saga that is overshadowing events.
The four major east-west vessel sharing alliances will need to keep a close eye
on the impact of the QE programme and be prepared to adjust their capacity
between Mediterranean and North American ports accordingly to mitigate
freight rate erosion.
Meanwhile, according to the latest data from Container Trade Statistics,
volumes between Asia and Europe declined year-on-year by 2.9% in January
to 1.4m teu, no doubt also reflecting softer demand from European consumers
for Asian goods.
(from: theloadstar.co.uk, March 10th 2015)
C.I.S.Co. Newsletter January 31st 2015
27
CONFERENCES
KUEHNE + NAGEL CEO AT TPM: SHIPPERS WILL PAY FOR MORE
RELIABLE SERVICE
The chairman of Switzerland-based Kuehne + Nagel, Karl Gernandt, says
there's a demand for premium container service and that shippers would pay
for more reliable transit times.
Today, carrier schedule reliability ranges from 65-85 per cent and "this is only
the case in good years," Mr Gernandt said in a keynote address at TPM, the
transpacific maritime conference in Long Beach, California.
"Getting services up to at least 90 per cent reliability, or at least multiple
product offerings with one level providing 90 per cent or better at an
appropriate price would be a win-win for shippers and carriers."
But this was contradicted by Maersk Line CEO Soren Skou at the same
conference, who said the recent demise of the much ballyhooed Daily Maersk
showed that customers would not pay extra for the 95 per cent on time rate
that Daily Maersk provided.
Still Mr Gernandt insisted: "Shippers would get higher reliability that will bring
down supply chain cost and
carriers would get the financially
appropriate rate given the
service provided.
These higher rates would need
to
support
the
added
investment and cost required to reach the higher level of reliability."
He said part of the reason why container services have poor reliability lies in
the level of service carriers can justify given their ability to earn a return on
the assets they have deployed, American Shipper reported.
Mr Gernandt said various studies have estimated that carriers have an
unsubsidised cost of capital of 10-12 per cent while carrier industry returns are
less than five per cent over the business cycle.
C.I.S.Co. Newsletter January 31st 2015
28
The result of this disparity, he said, is a flow of US$10 billion annually from
carriers and suppliers of capital to the users of ocean transportation services.
"This system is not going to work for long.
Essentially the users are paying a discounted price for discounted services,' Mr
Gernandt said.
While this might make sense for some shippers, "modern supply chains require
higher reliability and customers are asking for it,' he said.
"It is time to offer a new solution, to be more flexible - to offer products
discounted and enhanced.
I'm not saying that the current level of service needs to end, but what I'm
saying is current reliability arrangement seems to work for many customers,
and much of the cargo that moves, but not all of them.
"There needs to be a higher service choices.
Would the people who ultimately pay the bill, the BCOs (beneficial cargo
owners) be willing to pay for more reliable service choice.
I think they would."
(from: chineseshipping.com.cn/shippingazette, March 9th 2015)
C.I.S.Co. Newsletter January 31st 2015
29
Numero del 15 Ottobre 2012
ON THE CALENDAR

21-22 Apr
TOC Asia Singapore

21-22 Apr
Port & Terminal Technology Conference & Exhibition Miami, USA

21-22 Apr
7th International Conference & Exhibition on Port & Terminal
Technology Miami, Florida, USA

21-23 Apr
Sea Asia Singapore

21-24Apr
9th International Chemical and Oil Pollution Conference and
Exhibition (ICOPCE 2015) Singapore

28-29 Apr
Inland Waterways & Shipping Conference Rotterdam, the
Netherlands

5-8 May
Transport Logistics, Munich

6-7 May
11th Trans Middle East 2015 Doha, Qatar

21-22 May
ESPO Conference 2015 Athens, Greece

28-29 May
4th Black Sea Ports & Shipping 2015 Istanbul, Turkey

6-9 Jun
3rd International Marine Exhibition of Iran Tehran, Iran

7-9 Jun
CMI Colloquium Istanbul, Turkey

9-11 Jun
TOC Europe in Rotterdam Rotterdam, Netherlands

24-25 Jun
13th ASEAN Ports and Shipping 2015 Jakarta, Indonesia

24-27 Jun
ECONSHIP 2015 Chios, Greece

7-11 Sep
PIANC-SMART RIVERS 2015 Buenos Aires, Argentina

17-18 Sep
10th Southern Asia Ports, Logistics & Shipping 2015 Mumbai, India

22-25 Sep
NEVA 2015 St. Petersburg, Russia

26-28 Oct
6th Global Free Trade & Special Economic Zones Summit Dubai,
UAE

29-30 Oct
13th Intermodal Africa 2015 Lusaka, Zambia
C.I.S.Co. Newsletter January 31st 2015
30

25-26 Nov
14th Intermodal Africa 2015 Lagos, Nigeria

8-9 Dec
TOC Middle East in Dubai Dubai, UAE
The Secretariat of C.I.S.Co. is able to
communicate detailed information on the
programs of all the events and how to
participate.
C.I.S.Co. Newsletter January 31st 2015