Friday, August 17, 2018
WFS said Oslo Airport is the fastest growing airport in cargo traffic, increasing its volume 36 per cent last year to 185,000 tonnes. Much of that traffic - 90,000 tonnes - is seafood exports, which is one of the top exports of the Norwegian economy behind petroleum products.Airport cargo chief Martin Langaas said the facility - which will accommodate 250,000 tonnes of capacity annually - will "increase the competitiveness of Norwegian seafood globally" toward the goal of becoming "the preferred cargo hub in Northern Europe."
The carrier added 14 new aircraft and opened eight new international routes, namely Geneva (Switzerland), Chicago (US), Bahrain, Kaduna (Nigeria), Buenos Aires (Argentina), Kisangani and Mbuji-Mayi (Democratic Republic of Congo) and Nosy-Be (Madagascar).The airline is expected is to experience further cargo volume growth after it ordered four Boeing 777 freighters in the second half of last year, reported London's Air Cargo News.In addition, it leased two Boeing 737-800 freighters due to arrive in June, although at the moment they are not listed as part of its fleet on its website.Ethiopian Cargo is currently the largest network cargo operator in Africa with six B777 freighters and two B757 freighters.
The coverage of electronic-air waybills at the airport rose to 60.6 per cent in May, a sharp increase compared to 14 per cent in March 2015, the year Shanghai started to promote the use of electronic-air waybills."Shanghai Pudong Airport is one of the most important hubs for China Southern Airlines Cargo and we have more than 110 outbound air cargo flights per month here, with a monthly volume of 13,000 electronic-air waybills," said China Southern Airlines officer Yi Wangjun. "We began to use electronic-air waybills at Shanghai Pudong Airport in 2016 and now e-AWBs account for 99 per cent of the total air waybills," he said, reported Shanghai Eastday"Paper-based air waybills waste a lot of paper and require meticulous management of documents," he said. "Moreover, it consumes a lot of time and effort for forwarders and agents to collect, print and transfer the air waybills. "It is even more troublesome to handle the loss of air waybills. Cargo has to wait for the replacement of the lost air waybill during its journey before moving on. Now, the serial number of an air waybill is the "passport" for the cargo and all the amendment, supplement and communication processes can be handled online."
The higher duty will be collected on top of any special rate of duty applicable pursuant to existing US free trade agreements or trade preference programmes.Mr Trump also said US relations with Turkey "are not good at this time," after the Office of the US Trade Representative earlier last week had announced it was reviewing Turkey's eligibility for the Generalized System of Preferences based on concerns regarding the nation's market access for US products.US Customs said importers must now report Harmonised Tariff Schedule (HTS) Subheading 9903.80.02 for the 50 per cent ad valorem duty rate for iron and steel products imported from Turkey, in addition to reporting the regular classification for such goods under HTS chapters 72 and 73.The White House proclamation said that domestic steel capacity utilisation has improved but is still below what Commerce Secretary Wilbur Ross recommended, noted American Shipper."Although imports of steel articles have declined since the imposition of the tariff, I am advised that they are still several percentage points greater than the level of imports that would allow domestic capacity utilisation to reach the target level," Mr Trump said in the proclamation.Said Mr Ross: "Doubling the tariff on imports of steel from Turkey will further reduce these imports that the [Commerce] Department found threaten to impair national security as defined in Section 232."
Following the rule relaxation India has seen an uptick in transshipment volumes and if the trend continues it would emerge as a transshipment hub, according to Shipping Secretary Gopal Krishna, reported Chennai's Hindu daily. "Diversion of Indian cargo for transshipment to neighbouring foreign ports has definitely come down and its impact will be visible by the end of the fiscal and is bound to substantially come down in the next fiscal," said Mr Krishna."The transshipment volumes in India have risen to 16,543 TEU in July from 11,589 TEU in June. This is a 43 per cent jump in a month," said Container Shipping Lines Association (CSLA) which represents 31 container shipping lines.CSLA chairman Deepak Tewari added: "The policy reform has been very encouraging for containership lines and we are confident [of taking] the 16,543 TEU volumes recorded in July to 200,000 TEU within six to eight months."
This sentiment was echoed by MIDF Research which said: "As we factor in the lower quantum of tariff hike and the revised period of its implementation, we are tweaking our total container revenue per TEU assumption for the 2018 and 2019 financial years to MYR154.28 (US$33.46) and MYR156.53 [from MYR158.35 and MYR160.55] respectively."PKA has instructed Westports to delay the scheduled 13 per cent gateway tariff hike by six months to March 1 2019, after it was originally scheduled to be implemented on September 1, reported The Edge Financial Daily, Kuala Lumpur.
HHLA also posted a 1.2 per cent increase in container traffic throughput to 3.6 million TEU, which was driven largely by stronger Asia traffic.Revenue in the container area alone increased 2.2 per cent. But container transport declined 4.2 per cent, which matched pre-result projections.Said company chairwoman Angela Titzrath: "HHLA's positive performance in the first half of the year gives us confidence that we will achieve the targets announced for the financial year."HHLA has the knowledge and experience to cope with the challenges of a volatile market."Working closely with our customers and being a reliable partner to them, all while offering exceptionally good service and a high degree of professionalism, is a decisive factor in this regard," she said.
"There is a risk of a further escalation of the ongoing trade conflicts that could lead to a vicious cycle of tit-for-tat measures between the US and other major economies," the trade ministry said. "Should this happen, there could be a sharp fall in global business and consumer confidence, and in turn, investment and consumption spending," said the official statement.Services, which make up 65 per cent of the economy, expanded 0.4 per cent in the second quarter from prior three months. Manufacturing grew 1.8 per cent, while construction plunged 15.4 per cent.In a separate release, Enterprise Singapore raised its forecast for non-oil exports this year to 2.5 to 3.5 per cent.
The last time trade deficit was wider was in May 2013 at $19.1 billion, according to data compiled by Bloomberg.Commerce Ministry data showed retail inflation was up 4.17 per cent in July, slower than the 4.5 per cent median estimate in a Bloomberg survey of economists.India's current account gap has come under pressure and is expected to widen to 2.4 per cent of GDP in the financial year to March 2019, from 1.9 per cent in the October-December period.
As surging production runs up against limited pipeline space, Western Canada Select's discount to West Texas Intermediate (WTI) widened to US$31 a barrel in August from an average of $13 a barrel last year, Bloomberg data showed. The larger discount is needed to incentivise shipping by rail.While the pipeline bottleneck is expected to ease up next year, the UN's International Maritime Organisation rule that goes into effect in 2020 will keep heavy crude at a discount of $31-$33 a barrel against WTI, according to a July report by the Canadian Energy Research Institute (CERI), reported Bloomberg."We think you get a double whammy effect" in 2020, said IHS Markit director Kevin Birn. "You have prices set by rail and compounding that is the IMO" rule.Under the new rules, ocean-going ships globally will be required to use a fuel that has 86 per cent less sulphur. The resulting increase in demand for lighter crude will push more crude towards the complex North American refineries that currently turn heavy Canadian oil into higher-value fuels such as gasoline and diesel, putting downwards pressure on heavy crude prices, according to CERI.There's still reason for optimism, however, as diminishing heavy oil production from strife-torn Venezuela and Mexico could help raise prices for Canada's crude.
WH Group shipped more pork from the US to Japan and Korea in the first half and will continue to change its trade flows should tensions remain, said CEO Wan Long. Lower hog prices in China boosted consumption of domestic meat, while tariffs on American pork further eroded the competitiveness of imports, the company said in a statement.China is the world's biggest pork producer, consumer and importer and boosted duties on US pork to 37 per cent in April and then to 62 per cent in July. That's left American producers seeking ways to make up for trade-war losses and led to a 21 per cent slump in American pork exports to China in the first half, said Bloomberg. Even without the tariffs, surging domestic production lowered the competitiveness of American pork, according to WH Group.Said Smithfield Foods CEO Kenneth Sullivan: "True, our volumes to China dropped 20 to 30 per cent, but our volumes to Korea they went up 50 per cent. "It's really a question of finding the market for this need. Because if you produce it, you don't throw it away, you ultimately sell that meat. It's a sell-it-or-smell-it business. Meat will get distributed," said Mr Sullivan.Average pig prices fell 25 per cent in the first half, before rebounding 23 per cent and were at CNY14.07 (US$2.04) per kilogramme this week, according to Shanghai JC Intelligence data. Hog prices may average between CNY13.3 and CNY13.5 this year, said Ma Xiangjie, president of WH Group's Shuanghui Development unit.
Spot container rates from Asia-to-US west coast are at US$2,000 per FEU, up from $1,140 per FEU at the beginning of July, according to New York's FreightWaves' SONAR data. The Asia-to-US east coast rates also exceeded $3,000 per FEU from mid-August, up from $2,200 per FEU at the beginning of July. London's Drewry Maritime container research manager Simon Heaney highlighted in a report by FreightWaves that US east and Gulf coast ports achieved 10 per cent volume growth by the end of the second quarter.Import data shows the strength continued into the third quarter with the Georgia Ports Authority registering 13 per cent throughput growth at the port of Savannah to 378,767 TEU, and the port of Charleston saw volumes increase by 10 per cent year on year to reach 200,594 TEU in July. Mr Heaney noted that US east coast ports are being helped by shifting trade patterns due to the expansion of the Panama Canal, resulting in east coast gateways clocking up higher growth than the west coast.Asia-to-US east coast trade lanes are seeing capacity utilisation of 95 per cent compared to the 85 per cent utilisation level seen on containerships on the Asia-to-US west coast trade, Mr Heaney said.Despite the demand growth, shipping lines are being cautious over injecting more capacity along the US east coast, further underpinning the rate rise.Of the 19 Asia-US east coast container service offerings only three have weekly shipping capacity of 10,000 TEU or more, according to PR News Service director Paul Richardson."All these ports along the US east coast - Newark, Savannah, Charleston - got ready for larger ships," Mr Richardson said. However, carriers are still running ships in the 6,000 to 9,000-TEU range for their US east coast service "because the market demand is not there yet," Mr Richardson said.US east coast service also saw some further rationalisation as Israel's Zim Shipping Services announced it would align service offerings with the 2M Alliance, effectively reducing sailings to the US east coast from seven to five.On the US west coast, the transpacific container trades have seen heftier capacity cuts going into the third quarter, which has helped bolster rates. The Ocean Alliance shelved one weekly transpacific sailing that removed 10,000 TEU of capacity. THE Alliance also ended a transpacific service and put a smaller ship on another line lowering capacity 22 per cent.Mr Heaney also pointed out the emergency surcharges to deal with higher fuel costs became effective for US trades at the start of the third quarter.Rates are also strengthening as shippers try to front-run the potential for higher tariffs on imported consumer goods.
"Danaos Investment Limited remains the company's largest stockholder following the transaction," said the company statement, reported St Petersburg Port News. The refinancing reset financial and certain other credit facility covenants, modified interest rates and amortisation profiles and extended debt maturities by five years. Danaos Investment Limited has made various financial and operational commitments as part of the refinancing transactions, including a capital contribution to the company for which it did not receive any shares, but facilitated the transaction, said the company statement.