Russia wants to increase trade, commercial ties with Pakistan

ISLAMABAD: Russia considers Pakistan an important country of the region as it has great economic potential and wanted to increase bilateral trade and cooperation with Pakistan in diversified areas of economic activity. 

Strong bilateral trade and larger cooperation between Pakistan and Russia would bring prosperity and integrity to the region.

Yury M Kozlov Trade Representative of the Russian Federation in Pakistan at Islamabad Chamber of Commerce and Industry (ICCI) said, “Russia eyes Pakistan as a significant market and many Russian investors are taking interest to explore Pakistan for joint ventures and investment”. 

He said previously Russia participated in some big projects in Pakistan including Pakistan Steel Mills and now there was a renewed interest to enhance trade and economic ties with Pakistan in multiple areas. 

Kozlov said negotiations are in process with Pakistan for energy projects and cooperation in science and technology. He said a Russian company has already offered $1 billion financial and technical assistance for rehabilitation and upgradation of Pakistan Steel Mills. He said Russia was also ready to implement 500-600 megawatts coal-fired thermal power projects near Muzaffargarh and Jamshoro and also to modernise and convert some other power projects in Pakistan to coal. 

He briefed the local businessmen about the upcoming trade exhibitions in Russia and invited them to participate in these exhibitions for exploring new areas of business cooperation.

Zafar Bakhtawari President Islamabad Chamber said Pakistan was now focusing on Central Asia for trade and exports and developing strong economic relations with Russia was vital for tapping huge markets of this region. 

He said Pakistan was occupying a key economic location in the region and Russia should provide support to Pakistan to get the membership of Shanghai Cooperation organisation.

He said the bilateral trade of $542 million between the two countries was far less as Pakistan and Russia has the potential to take bilateral trade up to $4 billion for which serous efforts are required to be made by both sides. 

He said many Pakistani products including food, fruits and vegetables, livestock, leather products, surgical equipment and sports goods have the potential to meet Russian consumers’ needs and private sectors of both countries should be facilitated for direct contacts to tap all untapped areas of mutual cooperation. 

He stressed for direct air flights between Islamabad and Moscow and soft visa policy for promoting trade up to potential.

Russia is the third largest textile importing country of the world importing textile products of $20 billion annually and Russian textile importers should avail quality textile products of Pakistan, which are very competitive and affordable. a
He said the government in Pakistan was determined to undertake big infrastructure development projects including roads and railway network and invited Russian investors to take active part in these projects.

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Russia to build three new-generation ice-breakers for Northern Sea Route

Russia will float out a new-generation nuclear ice-breaker by 2017 with two more to follow in 2020 under a government program to ensure commercial shipping along the Northern Sea Route (NSR) – a 6,000-km Arctic waterway stretching from the Barents Sea in the west to the Bering Strait in the east. Russia is the only country with a nuclear-powered ice-breaking fleet. By the early 2020s, the NSR is expected to start recouping its cost.

The NSR is currently operational all year round. As cargo traffic increases, Russia will need more ice-breakers to cut the way for commercial ships. At present, Russia has five ice-breakers in its Arctic waters. But by 2021, four of them will be decommissioned.

In former Soviet times, the NSR was closed for military reasons. Now that foreign commercial ships are allowed to use it, more and more companies are seeing it as an effective transport corridor connecting Europe and Asia, said Yuri Shcherbanin from the Institute for Economic Forecasts of the Russian Academy of Sciences.

"The distance between Northern Europe and Northeast Asia is much shorter than the traditional route through the Far East and the Suez Canal. Cargo transportation along the Northern Sea Route has grown considerably over the past two years. More than 45 commercial ships sailed through it last year, including a liquefied gas tanker that brought over 66,000 tons of LNG from a Statoil plant in Norway to Japan."
In 2012, The Norwegian-flagged Marika tanker shipped more than 65,000 tons of aviation fuel produced from Sakhalin oil from Korea to Finland.

Within a few years, Russia will start developing oil and gas deposits on its Arctic shelf. The Novatek company is launching the construction of the Sabetta port and an LNG refinery in the Gulf of Ob. Future LNG exports both to Europe and Asia will require more ice-breakers, Mikhail Babenko, a gas environmental policy coordinator at the World Wildlife Fund (WWF), told the Voice of Russia.

"It’s absolutely evident that no diesel-powered ship can manage to sail the whole length of the NSR without refueling. A diesel-powered ship can’t cut its way through ice as efficiently as a nuclear ice-breaker. Another big advantage of nuclear ice-breakers is the absence of soot emissions."
New-generation ice-breakers will surpass their current analogues over a whole range of parameters, said Alexander Voznesenksy, Director of the Baltiysky Zavod shipyard.

"The new ice-breaker will have a draft of between 8.5 m and 10.5 m. Thanks to its unique design, it can be operated both at the Northern Sea Route and in the estuaries of Siberian rivers. Its width – 34 m – means that it can cut the way for tankers with a dead weight of 100,000 tons."

New-generation ice-breakers will be equipped with advanced security and navigation systems.

Source: http://voiceofrussia.com/2013_08_25/Russia-to-build-three-new-generation-ice-breakers-for-Northern-Sea-Route-9892/

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EU to enter talks with China on ending its anti-dumping wine probe

CHINA and the European Union continue to negotiate anti-dumping probe of European wine exports which amounted to 257.3 million litres in 2012, valued at US$1 billion, half of which were from France. 

A decision to drop the wine anti-dumping probe is unconfirmed with a latest report from Reuters citing law firm's continued investigation into the Chinese industry association's complaint. However, discussion is a sign that Europe's most important trading partner is willing to ease tensions. 

The threat of duties on European wine from France, Italy and Spain appears a symbolic move, particularly centred on the two countries, France and Italy, most in favour of hefty fines on Chinese solar panels. 

Germany and Britain opposed the move with Germany as they would be hurt by tariffs in China, a major exporter of polysilicon, a raw material used in making solar-energy devices. 

Source: http://www.schednet.com/home/index.asp?area=seacargo

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Seaport operations company loads landship during training

JOINT BASE LANGLEY-EUSTIS, Va. - With clear, blue sky above and the hot afternoon sun shining down on the Vissering Landship Training Facility here, the 390th Seaport Operations Company out of Ceiba, Puerto Rico, is hard at work. The soldiers of the 390th SPOC are conducting their yearly Extended Combat Training exercise to learn new skills and refresh current skills as Army cargo specialists.

The training at the Vissering Landship is unique since it gives soldiers the chance to practice loading and unloading cargo and vehicles from a sea vessel while remaining on land. 

The types of training we are doing here is called a Logistics–Over-The-Shore operation, said Sgt. Carlos Garcia, a cargo specialist with the 390th SPOC. Garcia explained that the training involves loading and unloading cargo onto a watercraft, and roll-on and roll-off training for the vehicles being loaded onto a vessel. This is just one of many exercises they will be doing in preparation of the final live exercise, he said. 

The 390th SPOC leadership will be busy training their soldiers in all aspects of their job during this training event as cargo specialists. 

“We specialize in transporting cargo and personnel in planes, trains and sea vessels,” said Pvt. Richard Paul Lopez, a cargo specialist with the 390th SPOC. With so many aspects in which to train, the 390th SPOC will be working hard to give every soldier the best possible experience. Garcia said they are constantly rotating their training, and they will soon be training on tactical maneuvers while on convoys. With so much to learn and do, soldiers are constantly being challenged, he said. 

“So far it’s been great,” Lopez said. “It’s great, because the training never gets repetitive.” 

This training exercise gives the Soldiers a chance to work with equipment they don’t have access to back at their home station in Puerto Rico, said Sgt. 1st Class Luis Gonzales, a cargo non-commissioned officer with the 390th SPOC.

At the training site, the 390th SPOC continually emphasizes the importance of safety, especially for the junior-enlisted soldiers. Garcia said that safety is the main priority as well as refresher training. He said the training is important because it goes down to the basic soldier skills, from discipline to situational awareness, and that is why safety is so important. 

Along with safety, the need to know the job well and be able to perform is important. Gonzales explains that safety is a big part of this training, but we also have to take advantage of all the knowledge the instructors here have and learn from the experience of all the soldiers.

With so much to brush up on, and the need to train more than 150 Soldiers in land, air and sea cargo loading operations, the 390th SPOC is well on its way to guide all their soldiers to success. 

The chance to work with new equipment and being able to utilize the experience of instructors has the 390th SPOC running like a well-oiled machine.

Source: http://www.dvidshub.net/news/111180/seaport-operations-company-loads-landship-during-training#.UftMeORHL_I#ixzz2amzpMWOi

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Piracy and its Effect on Global Trade

Dr. Jamal Sanad Al-Suwaidi, Director General of the Emirates Center for Strategic Studies and Research (ECSSR), contends that over the last ten years, the Gulf of Aden and the Arabian Sea have reached high levels of piracy, lending to increased risk for the maritime shipping industry. At Tuesday’s international symposium entitled: ‘The Challenges of Piracy in the Gulf of Aden and the Arabian Sea,’ he highlighted the issue.

“The risks of such crimes taking place are exacerbated by links to organizations involved in international terrorism. Undoubtedly, the volume of global trade that passes through the Gulf of Aden and the Arabian Sea makes this region an indispensable economic artery and maritime corridor for world security and stability,” he is quoted as saying.

However, aiming for a balance in his rhetoric, he also accentuated how the United Arab Emirates (UAE) have shown their commitment over the past ten years to reducing piracy and related activities in the region. These actions by the UAE have shown positive results, as well as a commitment to working against international terrorism and the collateral crime manifests itself as a bi-product of it.

Acknowledging the notion that piracy is largely a bi-product of weak government as well as ties to terrorist organizations, Dr. Al-Suwaidi is later quoted as saying: “In response to maritime piracy activities in the Gulf of Aden and the Arabian Sea, the UAE is following a two-track approach. On the one hand it provides support for international efforts to confront maritime piracy gangs and on the other hand it supports political ties aimed at enabling the Somali state to control its territory.” Lending credit to the nations in the region for exhibiting their best efforts to curb the phenomenon of piracy is a major step forward into the realm of significantly cutting down on the problem.

The symposium held on Tuesday reflected the issue of piracy in the region, while also seeking solutions through various panels to combat the problem in the future. Overall, it will contribute to safer shipping lanes and economic activity in the region to be reflected in the coming months/years.

Source: http://globalseafreight.com/piracy-and-its-effect-on-global-trade/

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GMS Offers Valuable Service for Retired Vessels

Being as controversial as it is, the practice of shipbreaking is relinquishing its role to more productive means of retiring used vessels. One of these means is ship recycling. One of the most prominent companies in this industry is GMS LeaderShip, a company with a global office disposition that conducts cash buys of ships in order to recycle them or sell them to other companies that do.

So far, GMS has negotiated the recycling of about 2,000 vessels, making them the premier company in the industry worldwide. They operate out of offices ranging from Bangledesh, India, Pakistan, Turkey, and Shanghai to Dubai and Romania. GMS stands out due to its exceptional Corporate Social Responsibility Standards (CSR). It has exhibited these many times over through its deals with other companies and its innovative solutions to ship recycling.

GMS has achieved numerous milestones over the last three years. These include: negotiating more than 100 ship buying deals over the last nine years, delivered 300 ships in one year, developed a Green Ship Recycling Program, and delivered 24 vessels in one month. For more information on GMS’ accomplishments, visit the following site: http://www.gmsinc.net/gms/aboutus.php.

In the coming years, GMS will be a significant partner for companies who want to exercise CRS and engage in disposal of vessels in a way that will not be harmful to the environment or the people who work to dispose of them or recycle them.

Source: http://globalseafreight.com/gms-offers-valuable-service-for-retired-vessels/

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Future Expansion of Malaysian Ports

Kuantan Port in Malaysia is expected to grow exponentially in the coming years. A partnership between IJM Corp Bhd and its subsidiary Kuantan Port Consortium Sdn Bhd (KPC), as well as China’s Guangxi Beibu Gulf International Port Group will facilitate the expansion.

The final design of the project is due in October; the partners have agreed to expand the facility with 16 extra meters of draft alongside the new facility’s berths to help support trade to and from the adjacent Malaysia-China Kuantan Industrial Park. Kuala Lumpur, Malaysia’s major gateway near the capital, is also slated for expansion. Rumors of a third major port being built have also circulated via the Port Klang Authority; this would be in response to rising demand. Westport and Northport currently handle container traffic at Klang.

This presents an issue because these ports also have their own ambitions for expansion, being hindered in their endeavours as long as Port Klang continues to use their facilities. Northport’s plans to increase capacity include means of purchasing larger container-handling equipment, while Wesport plans to raise funds for new developments through a proposed initial public offering. Westport’s goal is to have this complete within the calendar year.

The expansion in Malaysia means more access of maritime shipping to the Asian market, especially due to the connections between Malaysia and China. This is an expansion project that companies will want to be familiar with in the coming months, as its development will affect access to the region.

Source: http://globalseafreight.com/future-expansion-of-malaysian-ports/

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Peak Season Surcharge for All Imports to Vostochniy, Russia

The shipping industry experienced a flux of increased freight rates.  This is due to the year before showing exceptionally low freight rates where shipping companies lost billions of dollars due to overcapacity.  The consequence of this was a 2012 that saw many companies looking for ways to increase their rates to meet costs on ocean freight.

This phenomenon has manifested itself in many companies increasing previously implemented or implementing peak-season surcharges.  One of the most recent to adopt this measure is MCC Transport.

MCC Transport is a regional specialist handling all Intra-Asia containerized cargo for the A.P. Moller – Maersk Group in addition to providing feeder services for a wide range of regional and global shipping lines.  Their rates, going into effect on 15 July 2013 for all dry cargo imports, will be as indicated in the following table:

TYPE	PEAK SEASON SURCHARGE
	20’	40’	40’HC	45’
DRY	USD 50	USD 50	USD 50	USD 50

Source: http://globalseafreight.com/peak-season-surcharge-for-all-imports-to-vostochniy-russia/

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Georgia ports set multiple freight records

Georgia’s ports set records during the last fiscal year for tonnage, bulk cargo, auto and machinery units, and freight moved by intermodal rail, the Georgia Ports Authority(GPA) announced Monday.

In the year ending June 30, the ports moved 27.23 million tons of cargo, a 2.4 percent increase over fiscal 2012.

“Our overall tonnage increase has been fueled by the strength of U.S. exports and the GPA’s varied cargo spectrum,” authority Executive Director Curtis Foltzsaid.

For the second year in a row, the GPA achieved a record for auto and machinery units with an 11.7 percent increase over fiscal 2012. The Port of Brunswick is the third busiest port in the U.S. for total roll-on/roll-off cargo and the second busiest for imports of such cargo.

Bulk cargo movement soared by 61.8 percent, while the authority moved a record 314,623 containers by rail, up 4,600 containers over fiscal 2012.

Source: http://www.bizjournals.com/atlanta/news/2013/07/29/georgia-ports-set-multiple-freight.html

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Freighters and belly cargo conference 2013

This year's Freighters and belly cargo Conference will be held at the Park Hyatt Hotel on Sadiyaat Island, Abu Dhabi from 29 September to 1 October 2013.

This is the 13th consecutive year we have held the Freighters World Conference – and this year we have included topics on belly cargo.

This two-day conference presents fantastic opportunities to network and socialise. Attended by delegates and speakers who can make things happen, make a difference and make change, you will not be disappointed.

Park Hyatt Abu Dhabi Hotel in the United Arab Emirates is an exclusive sanctuary for the discerning business and leisure traveller, located on a nine-kilometre stretch of environmentally protected beach on Saadiyat Island. The resort is adjacent to the famous Saadiyat Beach Golf Club, minutes from the city’s prime business district, the Abu Dhabi Corniche, and 25 minutes from Abu Dhabi International Airport. The island is only a 40 minute taxi journey from the business district of Dubai.

Source: http://www.aircargonews.net/events/book-event-form.html

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Cargo Airline of the Year 2014

The 31st anniversary of Air Cargo News awards evening, Cargo Airline of the Year, will take place at the Lancaster London Hotel on Saturday, 26th April 2014. If you need any further information about this Air Cargo News event, known throughout the airfreight world as the ‘Oscars’ of the air cargo industry, then please contact Patricia Cooper, General Manager of the Events Division on p.cooper(at)aircargonews.net or telephone +44 (0) 1784 255000

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Three new container freight stations mooted

VISAKHAPATNAM: Three new Container Freight Stations (CFS) are expected to be set up in the Port City around the end of the year. Currently, the Container Corporation of India (Concor), Sravan Shipping Services Private Limited, Gateway East India Private Limited and CWC-SICAL have one CFS each in Visakhapatnam.

According to sources, Concor and Sravan Shipping Services plan to set up one more CFS each in the near future. The central government too plans to set up one CFS in Vizag to cater to the increasing demand for container services. "The Balmer Laurie CFS is being undertaken as a joint venture between the central government and Visakhapatnam Port Trust (VPT). "We are finalising the joint venture," said the senior port official. The proposal was made three years ago but could not be implemented because of land related issues. "The handling capacity details will be released once the formalities are completed," said the official.

Phase 1 and 2 of the Concor CFS is expected to come up across 80 acres and is likely to handle around half-a-million TEUs (Twenty-foot Equivalent Units), according to a senior port official."The new (phase 1) Concor facility will be built with a terminal built across 55 acres adjacent the Aiyappa temple. We have transferred the land and it will be operational by October," said the official.

Sravan Shipping chief executive G Sambasiva Rao said the firm aims to handle 10,000 TEUs per month with a CFC built across 30 acres from December. "Container cargo is the future. More than 70% of the commodities in the developed world are switching to container cargo. In some places, even iron ore and coal are being transported through containers. Though container cargo in vizag is just 5% of total cargo handled, it is expected to increase provided there is improved infrastructure in place," he said.

"People are looking at better viability. Earlier, lorries used to be used to transport marble slabs from Rajasthan which was expensive. However, now with domestic and exim (export import) facility available at the ports, businesses are looking at container traffic," said a source.

VPT handled 45.54 lakh tonnes of container traffic in terms of tonnage and 2.48 lakh tonnes in terms of TEUs in 2012-13 as compared to 42.14 lakh tonnes and 2.34 lakh tonnes respectively in 2011-12.

source: http://timesofindia.indiatimes.com/city/visakhapatnam/Three-new-container-freight-stations-mooted/articleshow/21436552.cms

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Indore domestic freight charges- July 26

July 26 (Reuters) - Freight rates from Indore, the key wholesale soybeans
market in central India, to other destinations in India :

    --Charges for WET CARGO, in rupees per 10,000-litre tanker--


 
                      Friday's            Previous
    Indore to
    Abohar       ---               33,000-33,500       33,000-33,500
    Alwar        ---               24,500-25,000       24,500-25,000
    Ambala       ---               31,500-32,000       31,500-32,000
    Amritsar     ---               34,000-34,500       34,000-34,500
    Banglore     ---               32,000-32,500       32,000-32,500
    Bulandshahar ---               23,500-24,000       23,500-24,000
    Chennai      ---               36,000-36,500       36,000-36,500
    Chandigarh   ---               33,500-34,000       33,500-34,000
    Delhi        ---               25,000-25,500       25,000-25,500
    Faridabad    ---               24,500-25,000       24,500-25,000
    Gaziabad     ---               22,500-23,000       22,500-23,000
    Hedarabad    ---               21,500-22,000       21,500-22,000
    Hisar        ---               27,000-27,500       27,000-27,500
    Jaipur       ---               20,500-21,000       20,500-21,000
    Jalandhar    ---               34,000-34,500       34,000-34,500
    Jammu        ---               40,500-41,000       40,500-41,000
    Kanpur       ---               22,500-23,000       22,500-23,000
    Karnal       ---               30,000-30,500       30,000-30,500
    Ludhiana     ---               34,500-35,000       34,500-35,000
    Mumbai       ---               14,000-14,500       14,000-14,500
    Modinagar    ---               23,000-23,500       23,000-23,500
    Pathankot    ---               38,500-39,000       38,500-39,000
    Rajpura      ---               33,000-33,500       33,000-33,500
    Sangrur      ---               33,500-34,000       33,500-34,000
    Sarhanpur    ---               29,500-30,000       29,500-30,000
    Sikandarabad ---               23,000-23,500       23,000-23,500

    --Charges for DRY CARGO, in rupees per 10-tonne truck load--


    Indore to:
    Ahmednagar   ---               12,500-13,000       12,500-13,000
    Ahmedabad    ---                9,500-10,000        9,500-10,000
    Amritsar     ---               30,000-30,500       30,000-30,500
    Aurangabad   ---               12,000-12,500       12,000-12,500
    Baroda       ---                8,500-9,000         8,500-9,000
    Bedi Bunder  ---               10,000-10,500       10,000-10,500
    Bhavnagar    ---                9,500-10,000        9,500-10,000
    Bangalore    ---               25,000-25,500       25,000-25,500
    Chandigarh   ---               25,500-26,000       25,500-26,000
    Delhi        ---               20,000-20,500       20,000-20,500
    Dhulia       ---                8,500-9,000         8,500-9,000
    Faridabad    ---               20,500-21,000       20,500-21,000
    Jaipur       ---               18,500-19,000       18,500-19,000
    Jalandhar    ---               29,000-29,500       29,000-29,500
    Jammu*       ---               36,500-37,000       36,500-37,000
    Kandla       ---               11,500-12,000       11,500-12,000
    Karar        ---               16,000-16,500       16,000-16,500
    Karnal       ---               23,000-23,500       23,000-23,500
    Kolhapur     ---               17,000-17,500       17,000-17,500
    Ludhiana     ---               26,000-26,500       26,000-26,500
    Malegaon     ---               10,000-10,500       10,000-10,500
    Mumbai port  ---               14,500-15,000       14,500-15,000
    Mundra       ---               12,000-12,500       12,000-12,500
    Nashik       ---               10,000-10,500       10,000-10,500
    Nanded       ---               13,000-13,500       13,000-13,500
    Navlakhi     ---               12,000-12,500       12,000-12,500
    New Bombay   ---               13,500-14,000       13,500-14,000
    Okha         ---               12,000-12,300       12,000-12,300
    Porbandar    ---               11,000-11,500       11,000-11,500
    Pipawa       ---               11,500-12,000       11,500-12,000
    Pune         ---               14,500-15,000       14,500-15,000
    Satara       ---               15,500-16,000       15,500-16,000
    Sangli       ---               16,000-16,500       16,000-16,500
    Solapur      ---               15,000-15,500       15,000-15,500

    * 9 tonnes

source: http://in.reuters.com/article/2013/07/26/indore-freights-idINL4N0FW2RK20130726

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Giant Logistics Group Falls Foul of Freight Forwarding Ownership Law

FedEx Proposes to Continue Operations Despite Being Ruled Out of Public Utility Contract 


PHILIPPINES – When the judiciary comes up against state in virtually any country, casual observers can often sit back and enjoy the ensuing row. After effectively being kicked out of the country this week when a Court ruled that its government-issued freight forwarding licence was invalid, FedEx has apparently vowed to continue operations whilst awaiting the final decision of the Supreme Court after two native logistics firms won a wrongful practice suit.

The government, under the auspices of the Civil Aeronautics Board (CAB), issued FedEx with the 5 year licence in May 2011 following a Department of Justice authorisation some years earlier that exempted freight forwarders from the national requirement to only grant public utility contracts to companies owned and operated by Filipinos.

The appellate Court begged to differ however saying, having made the original decision to disqualify FedEx (and any other forwarder affected by similar licence arrangements) that the Justice Department had no authorisation to overturn its ruling. Three justices all agreed on this after a case was brought by two Philippine companies, Merit Freight International Inc. and Ace Logistics Inc., aiming to prove that FedEx is a foreign corporation.

There was precedent for the prosecution in that one company, Royal Cargo, apparently previously 70% owned by Filipinos and with a foreign president but married to a native, exchanged their president for a German national which caused the CAB to rescind their licence to operate unless a further change of presidential status was effected within one month.

It is difficult to see how FedEx can win this particular argument and certainly there may be some residue of distaste after the events of February 2009 when the logistics giant pulled out of its contract to operate a 300,000 square foot cargo terminal in the Subic Bay International Airport. The closure, despite an agreement stretching into 2010, was due to FedEx’s desire to reposition its main Asia Pacific hub to China’s Guangzhou Baiyun International Airport, the first time the US company had ever closed a main cargo hub. The move cost over seven hundred Filipino jobs and followed a move the previous year when FedEx pulled the plug on the operations of Corporate Air which also had a presence at Subic.

It is presumed that the FedEx appeal will centre on the money the US corporation says it is has earmarked to invest in the expansion of its facilities in the country, which was to include new offices and freight terminals supposedly at a cost exceeding $11.5 million. In a statement a spokesman for FedEx (Philippines and Indonesia) said:

“FedEx is operating under the international freight forwarder licence issued by the CAB as an independent entity in the Philippines. The licence was issued on May 2, 2011 and is valid until May 1, 2016. Pending the final decision of the Supreme Court, the CAB has confirmed that FedEx (together with all of the 30 plus other foreign-owned air freight forwarders) can continue to operate under the licence.”

source: http://www.handyshippingguide.com/shipping-news/giant-logistics-group-falls-foul-of-freight-forwarding-ownership-law-_4791

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VAT on China freight charges

New rules have been issued by the Ministry of Finance and State Administration of Tax in their Cai Shui no.37 (Circular 37) regarding application of VAT to ocean transport services. The majority of carriers have confirmed that they will start to debit 6 % VAT on all charges payable in China.

---

There is a great deal of uncertainty about the application of the new rules and some carriers are seeking clarification with Ministry of Finance and State Administration of Tax. We understand that until those carriers receive clarification of the rules and their application to ocean shipping, existing invoicing arrangements will remain unchanged.

As is often the case with changes to regulations in China there will be some contradictory statements and we cannot make definitive statements regarding implementation at present.

We have compiled the below information from carrier notices:

The following carriers have indicated that they will apply the 6% VAT charge on all invoices payable in the PRC from 1st August 2013based on the issuance date of the VAT invoice.
 
OOCL, Hamburg Sud, MSC, MOL, NYK Lines, CSAV, China Shipping Container Lines

The following carriers have stated that existing invoicing arrangements will remain unchanged until they have obtained clarification with the Chinese Authorities

Evergreen, Maersk, MCC

Source: http://www.bifa.org/content/popmessage.aspx?sec=2&id=3642

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Why cars and rough seas don't mix

It is not uncommon for cars to spend weeks on cargo ships en route to their destination - but sometimes the cars simply don’t make it.
That scenario played out on a ship that experienced rough seas on a chaotic ocean crossing from Japan to Russia by the Cambodian vessel, Astongate.
According to the description of the dramatic vision uploaded to YouTube, the ship was carrying 64 used cars to Vladivostok, but following a storm and enormous swells, only 12 made it to the end. Further investigation suggests the incident may have actually occurred in February 2012, according to The Maritime Bulletin.
The vessel is described as being a Roll-on, Roll-off (RO-RO) ship, which are commonly used for shipping cars. In most cases, however, the vehicles are secured in the hull of the ship, meaning they won't be exposed to the elements. In this instance, however, the cars were on the top-deck.

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The video shows several cars falling over the edges of the ship, and it appears there are broken tie-down straps littered over the deck.
The person who paid for the cars to be carried on the top deck of the ship reportedly signed a document acknowledging the risks involved.
There have been two well-documented incidents involving RO-RO ships, including the sinking of the MS Herald of Free Enterprise in 1987, and the capsize of the TEV Wahine in New Zealand in 1968.
And even cargo ships with the cars secured in the hull can experience significant problems at sea. For example, the Norwegian carrier MV Tricolor sank in the English Channel in 2002, taking 2800 cars with it. And in 2006, a ship with nearly 5000 Mazdas on board tipped onto its side in rough seas.

Source: http://news.drive.com.au/drive/motor-news/why-cars-and-rough-seas-dont-mix-20130726-2qp1r.html

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Project Freight Forwarding Logistics Simpler with Modern Technology

CAD and Predictive Software Makes Designs for Tricky Cargo Movements Easier


WORLDWIDE – According to Per Thornblom, the planning of difficult freight movements using modern technology is allowing logistics providers to set new standards of value and efficiency. Thornblom, Group Project Logistics Manager for the GAC Group, will be addressing the PowerLogistics Asia 2013 conference this October where he will explain why he is embracing the new tools available to shippers with such enthusiasm.

Thornblom recounts how Computer Aided Drawing (CAD) is emerging as a vital element in planning how to load and store complex shipments. Lashing calculations identify the best way to secure cargo on a vessel whilst on-board stability and weather routing software help plan a safe and efficient voyage. In his speech the GAC man will outline the key advantage that dedicated software brings to the planning of heavy lift projects, and how the smart application of technology facilitates the engineering of detailed solutions to ensure timely, safe and on-budget execution. He explains how the availability of these new instruments, plus the wise utilisation of a trained workforce can ensure success, saying:

"Project logistics is a diverse and demanding field, in which having the right skills, knowledge and experience is essential. Project skills are built on practical experience and a solid background in shipping and logistics – and we now have new tools to enhance that expertise.

“Within GAC, wherever we can, we aim to bring existing employees into the heart of project logistics operations - as and when required - and train them in the specific skills they need. Our staff can also enhance their knowledge through a range of theoretical and practical courses offered by the GAC Corporate Academy. Staff with a practical background, who have served at sea or who have been involved in heavy lift logistics operations, are always a good fit.”

Many of the world's leading project forwarding professionals and their clients from the EPC (Engineering, Procurement & Construction), oil & gas, energy and mining sectors will gather at the Singapore's Marina Bay Sands Hotel for PowerLogistics Asia 2013. Participants from throughout the Middle East, Indian Subcontinent, Asia and Australia will include industry giants such as Chevron, Technip, Jacobs Engineering, Mammoet, Jumbo Shipping, SAL Heavy Lift, Panalpina, JAS Forwarding and many more.

Source: http://www.handyshippingguide.com/shipping-news/project-freight-forwarding-logistics-simpler-with-modern-technology_4788

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The mother of all ports...

A Superport is in the prcess of creation  in the North West. Liza Helps investigates.

Work has started on Peel Ports’ £300 million in-river deep sea container port Liverpool 2 – an integral part of the puzzle that makes up the ambitious multi billion pound Liverpool Superport in the North West, but can port centric development really work in the region?

It doesn’t seem possible driving along the ramshackle pot hole-laden road to Peel Ports’ Port of Liverpool headquarters on an unseasonably wintry day close to Easter. But Global Institute of Logistics chief executive officer Kieran Ring is of a more optimistic frame of mind. Talking at the CILT Conference on Logistics Clustering he says the plans have potential: “As fuel costs rise the need to move goods, domestically and internationally, far more efficiently becomes much more important than ever, both from an economic and an environmental viewpoint.”

Mark Basnett, executive director of Liverpool City Region LEP, a key partner in the development of the Superport agrees: “The trends of increased imports of consumer goods from low cost economies and export back to those economies, increased road transport costs and increased focus on more sustainable logistics for retailers and manufacturers, will drive business towards port centric and multi-modal logistics solutions close to large centres of population.”

Ring adds that when companies locate in the same place and share opportunities, synergies are created that can provide more efficient supply chain solutions than if the same companies were to work alone.

He points out that with globalisation the need for clustering at ports becomes paramount as more and more goods are imported around the globe. “The nearer you are to the port the better chance you have of keeping costs low.”

It is just that point that Stephen Carr, head of business development at Peel Ports Mersey (which operates Port of Liverpool and the Manchester Ship Canal) is keen to reiterate: “Currently 90 per cent of deep sea cargo enters the UK from the south, yet over 50 per cent of the UK container market is based in Birmingham northwards. Indeed 70 per cent of all goods that come within a 150 mile radius of the Port of Liverpool enter the UK via southern ports – with the on-going journey to the North of England by road and rail adding extra strain on the country's overburdened transport networks and the environmental impact of unnecessary CO2 emissions.”

Richard Butcher chief executive officer of Stobart Estates agrees and notes: “The majority of containers spend most of their lives empty but someone, somewhere is paying for that – there are about a million empty containers a year being moved out of the North West to the Southern Ports at a cost of £400 per container: that’s £400 million of waste. Any cuts to that cost must be welcomed.”

Carr goes on: "Liverpool is the most centrally positioned deep-sea port in the UK, meaning it is ideally situated to serve all cargo bound for Northern Britain by optimising the supply chain.
"By looking at the integrated ‘Ship-to-Door’ logistics, we not only optimise the transport leg from port to store, but also offer an efficient onward transport journey as Liverpool is closest to the consumer.”

According to the Liverpool LEP 17 million people live within two hours’ drive of Liverpool making it the largest population centre outside London.

Razi Khan, a buyer and supply chain manager at Typhoo, imports tea to the UK from around the globe. He says that by using the Port of Liverpool, as opposed to the southern UK ports, Typhoo has been able to make substantial cost savings and meet its targets for reducing carbon emissions.

Khan says: “We save around £500/40ft by bringing our cargo into the UK through Liverpool, including customs and storage. In 2010 we imported just 20 per cent of our tea through Liverpool. We currently have around 60 per cent coming through the port, and our target is to have 100 per cent entering the UK market through the Port of Liverpool within the next five years.”

Historically, Typhoo Tea routed 95 per cent of its cargo through southern UK ports and then road hauled to the North West. By importing through the Port of Liverpool they have significantly reduced road miles and therefore their carbon emissions as well as saved money. Peel Ports’ Liverpool 2 scheme is part of a wider £2 billion investment in the region which will see a transformation of the way logistics is carried out in the country or so its proponents boast.

Carr says: “There has already been an incremental growth in market share in 2009 to 2012 Liverpool had a one per cent market share – equivalent of 40-50,000 containers or 70,000 TEUs. Although the terminal at Liverpool 2 will open in 2015, it won't be up to full run rate capacity until 2020/21 but in that seven years it is expected to ramp up and broadly double the throughput of the port.

“But, it is not just the increase in market share. Peel Ports estimates show that by 2030 container traffic through the Port of Liverpool could experience a modal shift away from road haulage with five per cent of freight being taken by rail, ten per cent via the Manchester Ship Canal and 15 per cent by coastal shipping.”

In 2012 the figures were less than one per cent by rail, five per cent by Manchester Ship Canal and just 2.5 per cent by coastal shipping.

Construction work on Peel Ports’ Liverpool 2 project will create a 16.5 metre berthing pocket allowing two vessels of up to 13,500 TEU at a time to call directly at the port when it becomes operational in 2015.

The scheme will see the construction of an 854-metre quay wall and the creation of 44 acres of land for the container terminal which will be served by ship to shore quay cranes and modern cantilever rail mounted gantry cranes (CRMGs). It will be one of the UK’s most modern container terminals.

Douglas Coleman, programme director for the Liverpool 2 project, explains: “CRMGs are a highly-efficient use of space. We have given this great thought, and the adoption of CRMG technology also means that ships are going to be serviced very quickly. They are more modern than our current straddle carrier operation, and are a high-technology solution. This will be one of the UK’s most modern container terminals, and that includes the crane technology.”

The sheer scale of the Liverpool 2 project can be shown by the quantities of materials which are needed in the construction phase – with the quay wall requiring 30,000 cubic metres of concrete, 15,000 metres of steel piles and 6100 metres of new crane rails. Dredging of the berthing pocket will remove around one million cubic metres of material from the Mersey; and almost three million cubic metres of infill material will be required to create the new container area.

Associated infrastructure will require the construction of 3,500 metres of new road, 230,000 sq metres of surfacing and 2500 metres of fencing.

Liverpool 2 is the key project in the Mersey Ports Masterplan, the 20-year vision for growth and future developments at the Port of Liverpool and on the Manchester Ship Canal – launched by Peel Ports in 2010.

Liverpool 2 will connect directly to a number of port centric logistics hubs along the Manchester Ship Canal via barge – resulting in the development of the UK's first "green logistics hub" which will reduce costs, congestion and carbon footprint for businesses located in the North West of England, serving the North of the UK.

However, the £2 billion Superport project is not just about Liverpool 2 and the Manchester Ship Canal. Overall the project brings together 3MG (Mersey Multi-Modal Gateway), Port of Liverpool and Liverpool John Lennon Airport as well as Liverpool 2 and the Manchester Ship Canal.

Analysts Amion Consulting have forecast the potential for more than 21,000 new jobs and an additional £6.1 billion GVA (gross value added – a measure of economic output) by 2020, then nearly 30,000 jobs and another £18.3 billion of GVA by 2030.

But why has this all come about now? Much of it is about the economy and the government’s attempts to get it moving. This includes the mass injection of cash to pump prime infrastructure works throughout the country and the revision of the planning process.

 Butcher says: “The regeneration of brownfield sites has been helped by the revision of the planning process. When you look at the North West, land is cheaper than Midlands and the South - land costs, ownership and rents. Then, as you extrapolate, rates are lower. In addition labour rates are lower too.

Total package
“You have got to look at the total logistics package it is not just about the rental cost of the buildings – they are not the be all and end all of the deal. You have to put everything in the mix. The Golden Triangle may look good but you have got to look at how to service your market. The companies that win will be able to combine their business (online and traditional) with the lowest possible distribution cost.”

As well as the basic economics another reason why things are moving in the North West today has to be that for the first time in their history the Manchester Ship Canal and the Port of Liverpool are owned by the one company – Peel Ports.

“Up until recently,” says Stephen Carr, head of business development at Peel Ports, “the two entities were in competition with each other. Originally the Manchester Ship Canal was built by the traders of Manchester to bypass Liverpool and when one built something the other would try to outmatch it – it was a war so to speak.”

"We can now synergise them. That enables us now to hopefully punch our weight."

The canal is proving extremely popular with customers and Peel has had to invest in a larger ship just to keep up with demand. The new ship, MV Coastal Deniz, can carry 260 containers – 60 per cent more than its previous vessel Monica.

Stephen Carr says: “Deniz will move 20,000 containers in 2013. In 2009 we handled 3,000 containers, in 2011 this rose to 10,000 containers and in 2012 it carried 15,000 containers.
“Seven million tonnes of dry bulk cargo and petrol chemicals are also shipped annually.”


Rail links- Rail is key to multi-modal gateway
The rail terminal is key to Stobart Estates’ 1.4 million sq ft Stobart Park at 3MG in Widnes says Stobart Estates’ chief executive Richard Butcher.

“Many developers say they have rail connectivity, either possibly or in the future, but at Stobart Park it is alive and kicking with at present seven freight trains a day and a capacity to more than double that.”

Indeed it is a very slick operation directly linked to the West Coast Main Line handling up to 1,100 vehicles a day with a turnaround time of just 12 minutes.

It has the capacity to securely store 6,000 containers which are shifted around using four rail mounted cranes with automated container positional and recovery system and an advanced GPS and tracking system.

It looks mightily impressive and indeed it impressed Tesco so much so that they increased their presence on the park from an initial 628,000 sq ft to more than 770,000 sq ft.  Stobart Estates secured detailed planning for a 1 million sq ft warehouse with 40m eaves on the second phase of the development which is available on a build-to-suit basis through letting agents Jones Lang LaSalle and Cushman & Wakefield.

As an added incentive to prospective tenants on the site Stobart is also pushing ahead with a 20Mw biomass plant run on recycled wood.

“To get an idea of the power that it can produce,” says Butcher, “Tesco’s current electric needs at the park for its chilled store requires just 2.5Mw a year so there is more than enough power to supply potential occupier enquiries.”

Stobart calculates the potential savings at 35p per sq ft per year by having this green energy supply based on a one million sq ft ambient building that equates to £350,000 a year or £7 million saving in running costs on a 20 year lease.

The park is part of a larger development in conjunction with Halton Council known as the Mersey Multi Modal Gateway (3MG) that could see the development of up to 3.5 million sq ft of warehousing, 5,000 new jobs and the reclamation of 200 acres of contaminated land.

Earlier this year, Mersey Gateway was identified as one of the UK government’s Top 40 priority projects in the National Infrastructure Plan and it has been recognised by KPMG as one of the Top 100 infrastructure projects around the globe. 

Its centrepiece is a new six-lane toll bridge over the River Mersey linking Widnes to Runcorn.

Waterways- Cereal link via the canal
Kellogg’s has increased the volume of breakfast cereals it transports using Peel Ports' “Green highway network” – on the Manchester Ship Canal container shuttle service.

The Ship Canal shuttle service is considered one of the most environmentally-friendly bulk logistics solution on offer in the UK, and already serves other major retail names such as Princes Foods, Kingsland Wine, Tesco, Typhoo, and Regatta.

Approximately 2,500 TEU of Kellogg’s cereal product will be transported via the ship canal between the company's Manchester, Ireland and Iberia distribution hubs in 2013. The containerised product is transhipped at the Port of Liverpool on to a coastal feeder service to serve the Irish and Spanish markets.

In what is an added value logistics solution for the company, Kellogg’s has also taken advantage of the Port of Liverpool's flexible 'on demand' warehousing offering. The port-centric warehousing capacity further increases efficiency of the company's supply chain, with storage for up to 7,000 pallets of cereal product available at the Port of Liverpool when required.

Paul Blears, UK and Republic of Ireland export freight operations manager of Kellogg’s in Manchester, explains: “In general, many of our customers don’t hold stocks of cornflakes, so next day delivery is important, making the Manchester Ship Canal of little interest to us. But this has changed. Already, we have one customer in Dublin (Tesco) which requires between four and five 45ft HC’s a week, which wants us to use the environmentally friendly waterway.

“We were hesitant at first, but since trying the waterway, we have been very impressed with its reliability. There have been no nasty surprises. Truck deliveries to/from Irlam are very quick, and transit times are respected.”

Kellogg's use of the shuttle service will equate to an 85 per cent reduction in road miles for the supply chain: a reduction of 40,000 road miles and 61 tonnes of CO2 in the coming year.

Paul McCoy, business development manager for Containers and Barge at Peel Ports said: "We have developed a strong relationship with Kellogg’s and have a comprehensive understanding of their logistics needs and aspirations.

“Peel Ports is developing a series of mini ports and multi-modal logistics hubs at various locations along the Manchester Ship Canal, which means we can bring containerised products inland to exactly where the customer wants it.”

Source: http://www.logisticsmanager.com/Articles/20441/The+mother+of+all+ports.html

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Guardfreight joins MAN to launch new container lock

Birmingham-based Guardfreight International has signed a deal with the Midlands Assembly Network (MAN) to bring a new locking mechanism to market, which hopes to prevent $80 billion (£52.5 bn) of cargo going missing every year.

The E-Containerlock will be fitted to shipping containers to provide location updates as well as immediate alerts if entry is forced, thanks to an in-built GRPS tracking system.

Guardfreight says it is ideal for preventing theft of goods and for insurance purposes, as you can prove the exact location of a tampering or break-in.

Designed by industry expert Andrew Harrison, a working prototype of the product has already been developed, a small batch of which is now to be trialled by worldwide freight monitoring agencies.

Harrison said: “It’s early days, but we’re confident that this solution will change the way cargo is transported, with our business plan showing a £16m turnover by 2018 and the possibility of creating up to 50 jobs directly and in the supply chain.”

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Subs-free freight exchange launched at Logistics Link

shipntrak, a subscription free online freight exchange, has been launched at the Logistics Link Live exhibition in Birmingham.

The system, which uses smartphones to track shipments, has been designed for simplicity and is powered by global vehicle tracking company Simplytrak,

It connects shippers and hauliers on a subscription-free auction style platform and enables subscribers to match cargo with available space. It allows live tracking of the cargo from pick up to delivery, which the company reckons is a first for online freight exchange systems.

Users pay a transaction charge of 7.5 per cent of the agreed price.

Carriers can put details of vehicles on the system and relevant loads can be matched with suitable vehicles based on location, route and transport conditions.

shipntrak can be used without any additional tracking hardware fitted to vehicles.  Installation of the shipntrak app on any GPS enabled android/iOS device enables shippers to track their loads in real time and assists hauliers in vehicle management as well as providing an accurate delivery time to the receiver. 

The system alerts the shipper 15 minutes before the collection is due - the shipper can then track the progress of the delivery in real time.

The process has been designed to be self policing with both shippers and carriers rating each other in the same way as ebay buyers and sellers,

Ehab Allam, managing director of shipntrak said: "We are delighted that shipntrak is now live and are looking forward to introducing the system to the logistics community."

Source: http://www.logisticsmanager.com/Articles/20633/Subs-free+freight+exchange+launched+at+Logistics+Link.html

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