Drewry: Shipping Container prices drop in challenging market October 25 , 2019

LONDON: Prices for new and second hand shipping containers as well as lease rates fell in the third quarter of 2019 as factory stocks continued to build up and prospects for container shipping cooled, according to shipping consultancy Drewry.

Container shipping remains challenged by rising geopolitical uncertainty and a slowdown in the global economy. In response, Drewry recently cut its forecast for global container port throughput in 2019 from 3% to 2.6%. Add to this the growing number of boxes stockpiled in depots around China, estimated to be over one million TEU, and “it’s no surprise that the container manufacturing and leasing sectors posted disappointing results” in the quarter.

Dry box prices fell 5.5% over the quarter while reefer values remained stable. Drewry’s Dry Shipping Container Newbuild Price Index, which tracks values of new 40ft high cube containers, dropped four points in the quarter to a value of 82, representing an annual decline of 20%.

But the reefer price index, based on the prevailing value of new 40ft high cube reefer containers was unchanged at 89, having declined just 3% over the year. However, container resale prices remained broadly stable.

For the second quarter in succession transport operators purchased more reefers than lessors with Ocean Network Express and Hapag-Lloyd among those carriers taking delivery of a substantial amount of new equipment. Both lines are expanding their reefer services and needed the additional boxes to satisfy expected demand in the fourth quarter of 2019 and early 2020.

However, over the medium term Drewry still expects lessors to increase their share of the global container pool as shipping lines’ priorities lie elsewhere, notably in upgrading their IT systems and door-to-door service offering.

“A glut of newbuild dry box containers and falling values forced manufacturers to slash output which fell over 50% in the quarter, although reefer production remained stable,” Drewry said, adding that total shipping container production “will end the year having fallen 36% compared to 2018.”

ndia & Bangladesh stakeholders stress on Port Connectivity October 25 , 2019

GUWAHATI: Water resources management and port connectivity are critical in boosting commercial relationship between India and Bangladesh, stakeholders of the two countries asserted recently.

 

India and Bangladesh share a total of 54 rivers and historically, the two countries have shared riverine routes for trade, commerce and movement of people, speakers said at a session over ‘Port Use Agreements’ held on the concluding day of the India Bangladesh Stakeholders’ Meet here. The session was jointly coordinated by Bangladesh Ministry of Shipping Secretary Md Abdus Samad and Inland Waterways Authority of India Chairperson Dr Amita Prasad.

 

In recent times, India and its neighbours have realised the immense potential of rivers as trade-transport- connectivity routes, both within and across borders. Recent developments and policy thrust of the countries in the region show emphasis on re-harnessing that connectivity and enhancing trade contacts, the speakers said.

 

Coordinators of both the countries pointed out the developments in terms of maritime, coastal and inland waterways connecting the region, and said some of these relate to neighbouring Nepal and Bhutan as well. Prasad said the Indian Government has been putting increasing emphasis on better management and governance of water resources for trade, transport, tourism, domestic and industrial purposes.

As many as 106 new national waterways were declared in 2016 in addition to the five that already existed, she added.

Kolkata & Bengaluru to be included in World Bank's Doing Business report

NEW DELHI: The World Bank will now include Kolkata and Bengaluru, besides Delhi and Mumbai, for preparing Ease of Doing Business report to provide a holistic picture of business environment of the Country, an official has said.

 

"The Country of the size of India was not properly represented by just two cities, and now with the inclusion of Kolkata and Bengaluru, Indian ranking in the World Bank's report will present a much better picture," the official said.

 

The report ranks 190 nations based on ten parameters, which includes ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.

The official added that the exercise to include these two new cities has already been initiated and would be included in the World Bank's ranking in the years to come.

DP World reports 1.1% gross like-for-like volume growth in 3Q 2019 October 25 , 2019

DUBAI: DP World PLC handled 17.7 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in 3Q2019, with gross container volumes growing by 1.1 % year-on-year on a like-for-like basis. On a nine-month basis, like-for-like gross container volumes grew by +0.7% year-on-a year to 53.5 million TEU.

 

Jebel Ali (UAE) handled 3.6 million TEU in 3Q2019, down -1.0% year-on-year, as volumes stabilised following a shift of low-margin cargo. Growth in Asia and India remains robust with strong growth in ATI (Philippines), Qingdao (China). Growth in India has been driven by Cochin, Mundra and NSIGT (Mumbai). Decline in reported volumes in Asia Pacific & Indian Subcontinent is due to discontinued operations in Surabaya (Indonesia) and Tianjin (China).

 

At a consolidated level, our terminals handled 10.3 million TEU during 3Q 2019, a +0.8% improvement year-on-year on a like-for-like basis. The strong reported growth of +93.7% in Americas and Australia region is due to the consolidation of Australia and acquisition of the two terminals in Chile.

 

Group Chairman and Chief Executive Officer Sultan Ahmed Bin Sulayem commented: “Our portfolio continues to deliver a steady volume performance which is encouraging given the challenging macro backdrop caused by the global trade dispute. However, despite this uncertainty, it is encouraging to see robust growth in key markets such as Asia Pacific and Indian Subcontinent, while growth in west coast of Americas remains solid. In Europe, London Gateway continues to deliver strong growth due to market share gains. While we have seen volumes stabilising in Jebel Ali (UAE), the outlook remains uncertain given the regional geopolitics and we remain focused on profitable origin & destination cargo.’’

 

“On our broader portfolio, we continue to make progress in strengthening our product offering, allowing us to connect directly with end customers to deliver a range of unique logistic solutions. We are seeing positive signs of progress in our new businesses that give us encouragement for the future. The near-term focus is on integrating our recent acquisitions, managing costs and disciplined investment to cement DP Worlds position as the logistics partner of choice. Overall, we remain well placed to deliver full year market expectations.’’

KICT honoured as Fastest Growing Terminal in 2018-19

GANDHIDHAM: Kandla International Container Terminal (KICT) has received an award in the ‘Fastest Growing Terminal’ category for 2018-19 at the 33rd Deendayal Port Trust (DPT) Awards held on October 5, 2019 at the Gandhidham Chamber of Commerce and Industry in Gujarat. On behalf of KICT and the J. M. Baxi Group, the award was received by Mr Amardeep Singh Parmar, Terminal Head of KICT from Mr Mansukh Mandaviya, Union Minister of State for Shipping (Independent Charge) and Union Minister of State for Chemicals and Fertilisers, informed a release. 

 

A total of 43 port users were recognised and awarded for their contribution towards making Deendayal Port the numero uno Major Port for the 

12th consecutive year by handling 115.40 million tonnes of cargo during 2018-19.

 

Along with Mr Mansukh Mandaviya, others who graced the occasion were DPT Chairman, Mr Sanjay Mehta, IFS; Director, Ministry of Shipping, 

Mr Arvind Chaudhary, MP; Mr Vinod Chawda, MLA; Ms Maltiben Maheshwari; Mr Vasanbhai Ahir; Gandhidham Municipality President, 

Mr Kanjibhai Bharya; Kandla Timber Association Head, Mr Navnit R. Gajjar, and other leading members of the trade, the release added.

Höegh Autoliners transport critical Breakbulk cargo from Mumbai to Ghana

MUMBAI: When critical equipment needed to be transported urgently from Mumbai for an infrastructure project in Ghana, OM Freight Forwarders chose Höegh Autoliners’ unbeatable direct liner service and experience in transporting breakbulk cargo. Recently Höegh Autoliners India was presented an opportunity to transport equipment and track laying machines that would be used in the development of a rail network from Tema to Akosomba. 

 

The challenge posed was that the customer needed one hundred sensitive breakbulk units to be shipped urgently for a project deadline.

 

Unbeatable liner service

With the customer’s strict time constraints, Höegh Autoliners’ regular and direct liner service from India to Africa offered the most competitive transit time in the market. In addition, with a fixed departure time, it meant the customer could plan and prepare their cargo for transportation in advance.

Capt. Atuldutt Sharma of Höegh Autoliners India says; With the equipment being an essential part of the project, the customer could not afford any delays. Höegh’s India to Africa service offered the best possible transit time of 25 days from Mumbai to Tema, which ensured the customer keep to their tight deadline. 

 

Dependable equipment

Transporting sensitive equipment like this is a precise operational process that requires experienced personnel and dependable equipment. 

The cargo handling team were put to the test, when the shipment consisting of 100 breakbulk pieces of varying sizes and shapes, needed to be transported on the same vessel. Using Höegh’s diverse fleet of rolltrailers, the team devised a plan to strategically place the 100 breakbulk units on 15 select rolltrailers. This ensured all units fit inside the vessel, and would reach the destination in time for the project

Mr. Vishal Joshi, OM Freight Forwarders says; We were extremely pleased with Höegh’s professional team that provided a customised solution for our shipment. With the competitive transit time offered, and equipment provided on such short notice, Höegh ensured our critical cargo reached its destination on time.

 

Safer with RoRo

By rolling the cargo on and off the vessel, it eliminates the need for crane lifts in both load and discharge port. This reducing the risk of damage to the cargo and ensures a safer operation.  Once inside the vessel, the rolltrailers are secured to designated lashing points underdeck, safeguarding the sensitive equipment from humidity or seawater.

 

Atuldutt continues; Keeping to the customer’s deadline, the cargo was safely transported on board Höegh Amsterdam ready for its journey to Tema. These types of breakbulk shipments demonstrate how our dedicated Breakbulk Team around the world, in their quest for excellence offer our customers timely, reliable, safe, professional and cost effective services, said a company release.

IMF sees Indian economic growth rebounding to 7 % next fiscal

GENEVA: The International Monetary Fund (IMF) sees Indian economic growth rebounding to around 7 per cent in the next financial year, supported by measures like monetary policy stimulus and corporate income tax cuts. We see the Indian economy rebounding from our projected 6.1 per cent growth this fiscal year to something like 7 per cent in the next fiscal year (2020). We see the factors that will support growth, including monetary policy stimulus, working their way through the pipeline, Jonathan Ostry, Deputy Director, Asia Pacific Department at the IMF, told reporters.

 

The recent tax cuts, Government's progress in addressing lingering weaknesses in the financial sector and measures to support growth sectors as seen as factors underpinning growth in the near term, Ostry said.

 

Talking about the slowdown in Indian economy in recent quarters, he said: indeed (it) took many of us by surprise, including the IMF.

"There wasn't a single cause for the slowdown there were many different causes at work including corporate and regulatory environmental uncertainties, the stresses in the non-bank financial sector, (and) stresses in the rural sector, among others," he said.