Ocean Network Express reports $126m profit in second quarter

SINGAPORE: Ocean Network Express (ONE) almost hit its target for profitability in the second quarter of its fiscal year, which ended 30 September, posting a positive result of $121m.

 

Thus, after six months, ONE is in the black to the tune of $126m, earned on revenue of $5.98bn. It said cost reductions and the fall in bunker prices had mitigated the impact of a drop in liftings due to “US-China trade issues and a deterioration in the supply-demand balance in the European trade”.

 

In terms of liftings, ONE’s biggest tradelane, headhaul Asia-North America, saw a utilisation level of 94% in Q2 and an overall 90% load factor for H1 at 1.44m TEU.The carrier’s second largest tradelane, Westbound from Asia to Europe, recorded a utilisation level of 95% in Q2, 

for a cumulative 91% for H1 at 947,000 TEU.

 

However, the outlook is rougher weather for the carrier. ONE said it now expected to report a loss of $66m on its trading in the second half of the year and, as a consequence, had downgraded its full-year profit forecast by $30m, to $60m.

 

It said this was a reflection of an expected deterioration in spot rates and concerns over a further slowdown in the global economy.

The forecast also assumes that the additional costs for compliance with IMO 2020 will be recovered in full by its OBS (One Bunker Surcharge) mechanism, adding that its “customers’ awareness” of the regulatory compliance was increasing.

AIRBUS and HAROPA - Port of Le Havre sign two partnership agreements

HAROPA: The security and fluidity of the movement of goods are strategic issues for the development of ports. The challenge requires continuous improvement to find digital solutions to simplify electronic processes, facilitate the development of international trade and secure the applications involved.

 

It is against this background and to accelerate its development that HAROPA - Port of Le Havre has adopted an industrial partnership approach with AIRBUS. Today the two partners signed an industrial and distribution agreement relating to a solution combining their respective software systems, STYRIS (Radar-VTS) and S-WiNG (digital port management service). The objective is to provide a powerful, advanced solution capable of improving the monitoring of shipping and optimizing port operations and port calls. These agreements allow AIRBUS to export the know-how to other international ports and to promote HAROPA's solutions.

 

A second agreement is part of the TIGA program and the Smart Port City project (*). One of the challenges of the "Smart Port City" project is to promote the integration of cybersecurity in port digitization, the increasing use of the Internet of Things (IoT), Big Data and Artificial Intelligence to benefit the environment of the port community in Le Havre, while supporting the emergence of cybersecurity in a framework of mutual trust between citizens and companies in the surrounding region.

 

Against this background, AIRBUS, the LE HAVRE SHIPPING AND PORT CONFEDERATION (UMEP), HAROPA - PORT OF LE HAVRE and SOGET have joined forces to collectively contribute their technological and human resources to the design and development of the strategy for a cybersecurity platform for use in ports, shipping and industry.

 

In particular, as part of an experiment, they will work together to define a technical, legal, administrative and financial framework designed to offer the services of a Security Operations Center (SOC). These services, made available to the citizens and corporations, SMEs and VSBs forming the economic fabric of the port of Le Havre, should constitute an operational solution allowing them to innovate, connect and develop, while making cybersecurity an asset for their development rather than a regulatory constraint.

For Evert DUDOK, Head of Communications, Intelligence and Security at Airbus: "Partnerships are in our nature. They fuel our growth and consolidate Airbus' position as a leading player in the maritime sector. They allow us not only to expand our maritime portfolio and create new services that can be exported and implemented in any port on the planet, but also to ensure the cybersecurity of ports, enhance security on the oceans and, more importantly, support port authorities in managing their daily challenges."

 

For Baptiste MAURAND, Managing Director HAROPA - Port of Le Havre: "These partnerships mean our existing solutions can more easily integrate major areas of innovation such as blockchains; they will also improve confidence in the quality of digital data and the traceability of upgrades. 

 

Our goal is to enhance our position as a major player in digitized, secure ports on the Seine corridor in France." For Hervé CORNEDE, President of the Executive Board of SOGET: "Cybersecurity is a key focus for us, as we deploy S)ONE, our fourth-generation Port Community System (PCS), developed in partnership with Microsoft, on all the ports of the Seine corridor, as well as in Jamaica and the Democratic Republic of the Congo. It is crucial to partner with leading experts such as Airbus to take us to the highest level of cybersecurity and deliver the best technology to our customers."

 

(*)HAROPA - Port of Le Havre and its partners are successful applicants in the TIGA program (the French acronym for "High Aim Innovation Regions"), the 3rd state-sponsored investment program for the future.

 

JNPT welcomes delegation from US Embassy in Delhi

NAVI MUMBAI: Shri Sanjay Sethi, IAS, Chairman, JNPT received Senior members from the U.S. Embassy in Delhi on 22nd October who were their visit to JN Port, to learn about the port infrastructure & SEZ project. They also discussed about the Indo Pacific Strategy.

MOL, K Line & NYK Line report Profits in first Half of fiscal year 2019 November 04 , 2019

TOKYO: Japanese big three shipping companies, Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Kawasaki Kisen Kaisha (K Line), wrapped up the first half of the fiscal year 2019 with a profit. As explained, the companies’ performance improved as their container shipping joint venture Ocean Network Express (ONE) returned to profitability from a significant loss suffered last year.

This was a result of service stabilization, recovery of liftings and space utilization as well as lower operational costs.

 

A significant boost in the containership segment helped MOL post a much higher net income. In the two quarters ended September 30, 2019, the company’s net income rose to JPY 25.6 billion (about USD 237 million), from JPY 5.7 billion seen in the corresponding period a year earlier.

 

MOL’s revenue decreased to JPY 574.3 billion in the first two quarters of FY2019 from JPY 619.8 billion posted in H1 FY2018. This was due to negation of MOL’s non-consolidated revenue for the containerships, which was included in the results for the same period of the previous year, the company said.

 

Driven by major improvements in liner business, NYK returned to black by reporting a net income of JPY 11.1 billion in H1 FY2019, compared to a net loss of JPY 9.7 billion recorded in the same period last year.NYK’s revenue dropped to JPY 824.7 billion in the first half of this fiscal year from JPY 915.6 billion seen in the first two quarters of FY2018. According to NYK, the decrease was due to the sales of subsidiary shares as part of a business portfolio revision.

 

The bottom line of the third carrier, K Line, was also stronger, reflecting improved profitability of ONE. The company ended the first half of the current fiscal year with a net income of JPY 16.3 billion, against a net loss of JPY 24.6 billion suffered in the same period last year.

On the other hand, K Line’s operating revenues decreased to JPY 372.4 billion in H1 FY2019 from JPY 416.1 billion reported in the corresponding six-month period of FY2018.

IOC commences deliveries of IMO-compliant low sulphur furnance oil November 04 , 2019

NEW DELHI: State-owned Indian Oil Corp (IOC) said it has commenced delivery of fuel for ships that is compliant with International Maritime Organisation’s (IMO) low sulphur mandate.

 

In a statement, the company said it commenced deliveries of IMO-2020-compliant Low Sulphur Furnace Oil (LSFO) with 0.5 per cent sulphur as marine fuel at Indian ports.

 

‘The first such supply was made on October 26, 2019, to the LPG tanker Berlian Ekuator at Deendayal port,’  it said. IOC has made available LSFO 0.5 per cent S grade marine fuel for immediate deliveries at Deendayal and Kochi Ports. ‘Bunker fuel deliveries at other Indian ports Mumbai, Mangalore, Tuticorin, Chennai, Visakhapatnam, Paradip and Haldia shall start by mid-November,’ it said.

 

IOC had earlier unveiled two new IMO 2020-compliant marine fuel grades as well as a range of marine lubricants specifically formulated and complaint with IMO 2020 low sulphur marine fuel specifications in Mumbai.

1st Export preparedness Index to rank States, UTs likely in Jan 2020 November 04 , 2019

NEW DELHI: The Government is likely to release the first index to rank States and Union territories based on their preparedness to promote exports, an official said. The exercise would help in promoting healthy competition among States and UTs to work on parameters for promoting the country's exports, which is one of the key indicators for boosting economic growth.

 

The index will rank them on some key parameters such as business environment, infrastructure, transport connectivity, access to finance, export infrastructure and trade support, the official said. The index will rank them on some key parameters such as business environment, infrastructure, transport connectivity, access to finance, export infrastructure and trade support, the official said.

 

Both the Niti Aayog and the Commerce Ministry is working on this index. Besides overall ranking, it will also be there for Coastal States, Landlocked States and Hilly States. According to experts, the exercise would help in giving a direction to States and UTs to work on their policies and infrastructure to attract both investors and exporters.

 

"It would give an empirical tool to States and UTs for introspection for their export preparedness. Exporters will also get a direction and guideline," Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said. The Government is already carrying out similar exercise to rank states and UTs on the Ease of Doing Business.

 

Several steps are being taken to promote foreign trade as it constitutes 45 per cent of the country's economy. There is a target to increase share of the Country's exports in global trade. India's share in global merchandise exports and services was 1.7 per cent and 3.4 per cent, respectively.

 

The country's exports dipped by  2.39 per cent to USD 159.57 billion during April-September 2019-20. Since 2011-12, India's exports have been hovering at around USD 300 billion. During 2018-19, the shipments aggregated at USD 331 billion. Promoting exports helps a Country to create jobs, boost manufacturing and earn more foreign exchange.

More than 100 Containerships out of operation for scrubber retrofits: Alphaliner November 04 ,

LONDON: More than 100 containerships are out of action due to scrubber retrofits and over 500 others are scheduled for retrofitting over the coming 12 months, according to data from Alphaliner.

 

With IMO 2020 just around the corner, the world’s shipping fleet is gearing up to face the new regulation capping bunker sulphur content at 0.5%, or the continued use of high sulphur fuels will need the installation of a scrubber to bring the sulphur content down to the compliant level.

 

As at 29 October, the number of containerships that stay at repair yards for scrubber retrofits has reached 86, with at least 14 ships currently waiting for a yard slot to become available.

 

In addition, more than 500 containerships are scheduled to be retrofitted over the coming 12 months. Such a long retrofitting queue has led to congestion at various yards as the scrubber installation works have taken longer than anticipated. “Yard stays for the 79 ships that have completed retrofitting works so far this year averaged 62 days, compared to initial expectations of 40 to 50 days,” Alphaliner noted.

 

“The 62-day average does however include yard stays of ships that, in addition to having a scrubber installed, also underwent other repairs or conversions to increase the vessels’ container capacities,” the container analyst added. The more extensive work could consist of raising the deckhouse or installing higher lashing bridges.

 

The shipyard delays have so far forced carriers’ to postpone the scheduled liner service re-phase-in of some converted ships, and they have created queues for ships waiting to enter the yards, Alphaliner observed.

 

“In some cases, container vessels waited at anchor for two to three weeks until a yard slot became available,” it said, adding that the current yard congestion problems are expected to last for some time, well into next year.