PIL’s fleet attains Environmental Ship Index (ESI) Certification August 27 , 2019

SINGAPORE: Pacific International Lines (PIL), Singapore’s leading containership operator, has successfully attained Environmental Ship Index (ESI) certification for its fleet comprising of half a million TEUs.

This is a major milestone for the Singaporean shipowner ahead of the transition towards the Global Sulphur Cap 2020 from 1 January next year.

ESI certification is an on-going initiative by the World Ports Sustainability Program (WPSP) and it is a voluntary program for ship owners to enroll their vessels – attesting that their vessels exceed the basic standard set by the International Maritime Organization (IMO).

To qualify for certification, vessels have to demonstrate that their emission level of Nitrogen Oxide (NOx) and Sulphur Oxide (SOx) and Carbon Oxide (CO2) is well below what is allowed by the IMO. This is a perfect indicator of the environmental performance of the ocean-going vessels and will encourage the adoption of green vessels. 

Many leading shipping lines have since participated in this program and this effort is well-recognised by many leading ports in the world including US, Europe and Asia.

The International Association for Ports and Harbours (IAPH) set up the WPSP in 2017, with the aim of enhancing and coordinating future sustainability efforts of ports worldwide as well as fostering international cooperation with partners in the supply chain.

Mr Teo Siong Seng, Executive Chairman and MD of PIL said: “Sustainability will remain a key part of how we conduct our business and we take protecting our maritime and port environment very seriously. We are doing this not just for ourselves but for the next generation who will be inheriting this earth from us. PIL is proud to be part of the program and we will continue to engage with business, governmental and societal stakeholders to create sustainable value-add to the local communities and beyond.”

 

Mansukh Mandaviya inaugurates various projects at VOC Port August 27 , 2019

TUTICORIN: An Export-Import Industrial Park, which can provide employment to a few thousand people, will come up on 702 acres of land close to the VOC Port, Union Minister of State for Shipping Mansukh L. Mandaviya said recently.

The Union Minister was inaugurating new projects completed with an outlay of Rs. 193 crore and laying the foundation stone for several new projects to be taken up with an outlay of Rs. 13.87 crore, here.

Mr. Mandaviya said the proposed Export-Import Industrial Park would be established on 702 acres of land close to the harbour  employees’ quarters. It would house garment manufacturing units, automobile components manufacturing and oil refinery units and the “master plan” for the project had been prepared.

Besides generating employment to a few thousand people, the Export-Import Industrial Park would ensure increased cargo handling at the VOC Port, he said.

Steps had been taken to deepen and widen the entry point of VOC Port to receive bigger vessels with more number of containers, which were now being shipped from Colombo International Container Transhipment Terminal that handles 2.50 million containers a year. Once the deepening and widening works were completed, the bigger “mother vessels” could take the containers directly from VOC Port to international destinations, the Minister said.

Mr. Mandaviya boarded a tugboat for inspecting the ongoing development works off the VOC Port.

He inaugurated a rail track laid between Hare Island and Marshalling Yard at the cost of Rs. 58.30 crore, coal jetty I upgraded on an outlay of Rs. 50.12 crore and North Cargo Berth established at the cost of Rs. 36.52 crore.

The Minister laid the foundation stone for widening entry point of the seaport from 153 metres to 230 metres at a cost of Rs. 13.11 crore and installation of 140 KW solar power panels at the cost of Rs. 76 lakh.

Chairman of VOC Port T.K. Ramachandran, Vice-Chairman N. Vaiyapuri, former Union Minister of State for Shipping Pon. Radhakrishnan, Traffic Manager Prabhakar and senior officials of the seaport were present.

CMA CGM will not use the Northern Sea Route

MARSEILLE: CMA CGM has decided that none of its 500 vessels will use the Northern Sea Route along Siberia, which is now open due to climate change.

Additionally, the company said it would give priority to liquefied natural gas (LNG) to power its future ships in order to further protect the environment.

“With this decision, CMA CGM makes the resolute choice to protect the environment and the planet’s biodiversity despite the major competitive advantage this route represents for shipping companies,” Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said.

The Northern Sea Route, which runs the length of the Siberian Coast, connects Asia to Europe today. The route has been made navigable due to the effects of global warming.

“The use of the Northern Sea Route will represent a significant danger to the unique natural ecosystems of this part of the world, mainly due to the numerous threats posed by accidents, oil pollution or collisions with marine wildlife,” according to CMA CGM.

Furthermore, the company explained that today LNG offers the best proven solution available to significantly reduce the environmental footprint of maritime transport. The use of LNG reduces emissions of sulphur and fine particles by 99%, nitrogen oxides emissions by 85% and carbon dioxide emissions by up to 20%.

CMA CGM would use LNG to power its ultra-large ships that are designed to carry up to 23,000 containers. The first ship in this fleet of nine container vessels are scheduled for delivery as early as 2020. By 2022, the company will have 20 LNG-powered vessels in its fleet.

The shipowner added that it continues research into other energy sources after a successful test of biofuel oil at port of Rotterdam aboard the 5,095 TEU containership CMA CGM White Shark in March 2019. CMA CGM is also establishing research partnerships to develop hydrogen as a potential long-term energy solution.

During the meeting, Saadé is to deliver to the President of France, Emmanuel Macron, on behalf of the maritime industry, the SAILS (Sustainable Actions for Innovative and Low-impact Shipping) Charter, formalized on the initiative of the Ministry for the Ecological and Inclusive Transition.

Through this charter, ten French signatory shipping companies, including Brittany Ferries, CMA CGM, Corsica ferries, Corsica Linea, Express des îles, Jifmar, La Méridionale, LDA, Orange Marine, PONANT, all members of Armateurs de France, commit to implementing specific actions in the reduction of emissions of air pollutants and greenhouse gases, whale protection, vessel energy optimization and performance, and strengthening of relations with the scientific community.

Between 2005 and 2015, the group reduced its CO2 emissions per container transported by 50% and has a target to further reduce these emissions by a further 30% by 2025.

“We make these decisions for the future, to leave our children a cleaner planet,” Saadé said, inviting the entire industry, competitors, partners and customers, “to join us.”

 

India's GDP expansion much higher than Global growth: Finance Minister August 27 , 2019

NEW DELHI: Seeking to dispel doubts over the economy and Government's growth agenda, Finance Minister Nirmala Sitharaman has recently said the India's GDP continues to grow at a faster pace than the global economy and any other major economy. 

Addressing a press conference, she said reform is a continuous process for her Government and it tops the agenda. Global GDP growth may be revised downwards from the current estimate of 3.2 per cent, she said adding that globally the demand was going to be weak. 

But the Indian economy was growing faster than the global average and all other major economies, Sitharaman added. 

As a result of US-China trade war and currency devaluation, very volatile situation has developed in global trade, she said.

Commerce Ministry to soon come out with new Foreign Trade Policy August 26 , 2019

NEW DELHI: The Commerce Ministry will soon come out with a new Foreign Trade Policy, which provides guidelines and incentives for increasing exports for the next five financial years 2020-25, an official said.
The Ministry is giving final touches to the new policy as the validity for the old one will end on March 31, 2020.
“We have taken views of all stakeholders. The new policy is likely to be announced by September-end or early-October,” the official said.
The Ministry’s arm Directorate General of Foreign Trade (DGFT) is formulating the policy.
Recasting incentives
The new policy would focus on simplifying procedures for exporters and importers, besides providing incentives to boost outbound shipments.
At present, tax benefits are provided under the ‘merchandise export from India’ scheme (MEIS) for goods and ‘services export from India’ scheme (SEIS).
In the new policy, changes are expected in the incentives given to goods as the current export promotion schemes are challenged by the US in the dispute resolution mechanism of the World Trade Organisation (WTO).
In this backdrop, the Government is recasting the incentives to make them compliant with global trade rules.
The Commerce Ministry has also floated a cabinet note for a new export incentives scheme — Rebate of State and Central Taxes and Levies (RoSCTL) — that would be compliant with the WTO norms.
The RoSCTL scheme is available for exports of garments and made-ups.
It would now be proposed to extend it to all exports in a phased manner.
The new scheme would replace the existing MEIS, which was challenged by the US last year in the WTO. It would ensure refund of all un-rebated Central and State Levies and taxes imposed on inputs that are consumed in exports of all sectors.
Major un-rebated levies are: State VAT/ Central excise duty on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, purchases from unregistered dealers, embedded CGST and compensation cess coal used in the production of electricity.
Promoting R&D
Exporters are demanding incentives based on research and development, and product-specific clusters under the new policy.
Ludhiana-based Hand Tools Association President SC Ralhan said the new policy should have provisions for refund of indirect taxes like on oil and power, and state levies such as mandi tax. “Sectors like engineering should be promoted as they create huge number of jobs. There should be relaxation for obtaining licence under Export Promotion Capital Goods for modernisation of industry,” Ralhan said.
Assistant Professor and expert on agriculture economics Chirala Shankar Rao said the policy should look at ways to promote agri-exports as it holds huge opportunities.
During April-July 2019-20, the Country’s exports dipped 0.37 per cent to USD 107.41 billion.
Since 2011-12, India’s exports have been hovering at around USD 300 billion. During 2018-19, overseas shipments grew 9 per cent to USD 331 billion.
The Government is targeting to increase the exports to USD one trillion in the coming years.
 

FreightBro and JOC.com hosted their 1st India Logistics Technology Summit

MUMBAI: FreightBro, India’s first freight forwarder facing platform, associated with Journal of Commerce (https://www.joc.com), a go-to portal providing information on international container shipping & logistics hosted their first ‘India Logistics Technology Summit’ at the Centre of Incubation and Business Acceleration, Navi Mumbai.
The summit witnessed sessions on how software can make key ocean freight processes and capabilities more efficient and less costly, potentially positioning India as the key growth market for world trade in the coming years.
Mr. Raghavendran Viswanathan, CEO & Co-founder, FreightBro, said, “The acceptance curve of the freight forwarding industry for digitization will be gradual and eventually inevitable. There will come a point when the freight forwarder will make decisions looking at dashboards rather than just using it as a price comparison tool. We are glad to contribute to the logistics industry by co-hosting industry led events with the presence of a rich mix of professionals who are working towards digitizing freight forwarding.”
Mr. Eric Johnson, Senior Editor - Technology, JOC.com, said, “It is an interesting phase as we witness logistics networks moving towards supply chain networks with front end and back end technology working seamlessly. We are glad to partner for our first event in India with FreightBro, a key enabler in using cutting edge technology to scale up operation management for the freight forwarding community.”
The panel discussion brought up interesting conversations and observations; plug and play software start-ups offer a layer of flexibility and standardization to the freight forwarding community, the technology platforms act as salespersons reducing customer acquisition costs and older players are opening up to technology once they realize that it is enabling them in all possible ways.
The event showcased the potential of technology to completely change the landscape of international freight movement by reducing reliance on manual processes and paper-based documentation for freight forwarders.

Alphaliner: HMM to add 34 Ships to THE Alliance’s Network in 2020

LONDON: South Korean Container shipping major Hyundai Merchant Marine (HMM) is expected to add some 34 ships to THE Alliance’s network in 2020, according to data provided by Alphaliner.
Citing deployment plans revealed earlier by HMM, the shipping analyst said that the company would add up to 519,000 TEU to the network once it joins THE Alliance as a full member on April 1, 2020.
Although the alliance members have not yet disclosed their new network plans for the next year, Alphaliner noted that the Korean carrier’s ships are expected to be deployed on the following routes:
– Asia – North Europe route, where twelve 23,000 TEU newbuildings are scheduled for deployment from the second quarter of 2020;
– Asia – Med or Asia – US East Coast route would feature ten of the company’s 13,000 TEU ships, including three vessels currently chartered out to the 2M Alliance;
– Asia – Pacific Southwest (USWC) route, where HMM would send six 10,000 TEU units, all of which are currently chartered out to the 2M;
– Asia – Pacific Northwest (USWC) route, where the company would deploy eight of its 8,600 TEU vessels.
Additionally, another eight HMM 15,000 TEU newbuildings are expected to be deployed on the Asia – US East Coast route from the second quarter of 2021.
Alphaliner further said that HMM is expected to cooperate with THE Alliance partners on the Far East – Middle East routes, although its participation in the trade is to be downgraded from the 13,000 TEU scale to tonnage of 5,000 to 6,600 TEU.
Apart from the newbuildings that the South Korean major would receive in 2020 and 2021, its fleet will be strengthened in April 2020 by redeliveries of nine 10,000 – 13,000 TEU ships currently (sub-)chartered out to Maersk and MSC. The charters were among  the conditions set for the 2M-HMM agreement that was signed in March 2017. It resulted in the withdrawal of HMM tonnage from the Far East – North Europe, Far East – Med and Far East – USEC routes.
The new arrangement with THE Alliance will allow HMM ships to return to the Far East – Med and Far East – USEC routes. At the same time, the carrier will be able to gradually replace the 5,000 TEU classic Panamax ships that it started to send onto the Far East – North Europe route in 2018, with 23,000 TEU giants as of April 2020.