Friday, March 22, 2019
He made the remarks at the IATA 13th World Cargo Symposium in the aftermath of the Ethiopian Airlines' disaster that claimed the lives of all 157 people on board their aircraft, Xinhua reported.The recent tragic incidents are reminders that the quest for zero accidents and zero fatalities in aviation continues, the IATA chief noted.When accurately labelled and packaged, lithium batteries can be shipped safely in line with global standards, however, the standards are sometimes ignored by shippers and are not enforced by the governments, he said.Mr Juniac is now urging governments and industry stakeholders to go to greater lengths to ensure air cargo safety.In another development, Singapore's Senior Minister of Transport Lam Pin Min said the city state will continue to innovate and transform Changi Airport to meet the evolving demands of the air cargo sector.According to Mr Lam, Singapore's Changi Airport Group (CAG) plans to expand its east wing as part of the future Changi East Industrial Zone, which will double the handling capacity for cargo upon completion.Its future air freight terminals will be highly automated and data-driven, he said, adding that the air cargo community is collaborating with CAG and the government to redesign air cargo operations, improve productivity and raise the efficiency of the sector.
Speaking to IATA's World Cargo Symposium in Singapore, Mr Crabtree told an audience at IATA's World Cargo Symposium in Singapore: "Freighters will remain the backbone of the world air cargo industry. Passenger lower-hold capacity, while plentiful, is not sufficient to meet air cargo traffic demand."Most passenger belly capacity does not serve key cargo trade routes, while twin-aisle passenger schedules often do not meet shipper timing needs and freight forwarders prefer palletised capacity, which is not available on single-aisle aircraft," he said."Passenger bellies cannot serve the hazardous material and project cargo sectors, while payload-range considerations on passenger airplanes may limit cargo-carriage."Mr Crabtree said that analysis of the global trade regime suffered from a lack of data, but Boeing has invested in a number of consultancies, including the London-based maritime specialists Clarksons which estimates that the maritime sector transports 12 billion tonnes of freight every year, of which only about 1.9 billion tonnes is put on containerships.Citing over-enthusiastic reporting of the threat to air cargo from boxships, Crabtree said: "There is this big bogeyman of the containership that was going to take all of our cargo traffic, not only on freighters but also passenger bellies."If you were to read the trade press you would believe that these containerships were made with a mythical material called Unobtainium and that they were so incredibly fast and you could waterski behind them."Nothing could be further from the truth, and we have been studying the containership industry as much as we have been studying the air cargo industry, so we really understand that this is a niche industry on many different levels."Part of its research efforts has seen Boeing revise the oft quoted figure that air cargo accounts for 1 per cent of transported global freight tonnages, with Mr Crabtree saying that it is "much less than one per cent" while agreeing with the consensus that more than one-third of freight by value goes by air."Freighters are vital, and I cannot ever emphasise this enough, they are vital to the functioning of the air cargo industry," he said.He said that airlines operating freighters generated nearly 90 per cent of industry revenues in air cargo. He used 2017 statistics that split the $100.2 billion in total airfreight revenues into four sectors: express carriers at $42.9 billion, combination carriers at $36.3 billion, all-cargo operators at $9.1 billion and passenger bellies-only at $11.9 billion."If you want to make money in the air freight industry, freighters are required for roughly three of the four major business models."
IATA chief economist Brian Pearce painted a bleak picture for air cargo in Asia over the next few months, saying the US-China trade dispute has already put pressure on the region. He said the fall in intra-Asia cargo volumes reflected a decrease in components being exported to China for assembly lines as exports across the transpacific declined, reported London's Air Cargo News.Mr Pearce said: "It is true that the situation is going to get worse before it gets better. I think we know this just because of the export orders that are in the pipeline."We can see that the export order numbers are down and they lead what we see in air cargo by two or three months."The last [export order] figures in February were down at their lowest level at least since 2016 so that would suggest to me that the next couple of months, we are going to see a further decline in air cargo volumes."He said that IATA has predicted global growth of two per cent this year, however, Asia is expected to slip behind.However, he was more positive looking to the future, pointing out that China continues to pour money into the economy to boost growth."Our baseline expectation is that there will be a [US-China] deal and there will be a turnaround but of course that is a matter of debate," he said."The expectation amongst the economic forecasts is not that we are facing a crisis here. In terms of where the trend is going in this region, it seems to be pretty positive for most economies."A panel discussion led by Seabury Consulting managing director Marco Bloeman explored how the trade war was affecting air cargo in Southeast Asia.Mr Bloeman said that half of air cargo flown between China and the US is now subject to tariffs and if a deal cannot be reached, this could to increase to each and every shipment."So, what have companies done in terms of moving away from China to other gateways?" he questioned.Singapore Airlines senior vice president of cargo Chin Yau Seng said: "As a result of the uncertainty and the concerns over the tariffs, there has indeed been some movement of [manufacturing] activities coming out of China into the likes of Southeast Asia countries like Vietnam, Thailand, Malaysia."China is a huge manufacturing centre and you can't expect a big chunk of it to move overnight - supply chains cannot adjust that quickly."What we have seen is that where companies were already thinking of moving manufacturing from China, that case has picked up as a result of the situation."Fortunately, we have a strong presence in Southeast Asia so we are benefitting from some of those moves even though this is coming at the expense of some of the China traffic," pointed out Mr Seng.Vietjet Air vice president of cargo Do Xuan Quang agreed that manufacturers had been expanding their use of Vietnam, especially hi-tech firms, Japanese companies and some US retailers.However, he was concerned that the US could introduce tariffs on Vietnam in a bid to tackle the trade imbalance there.Association of Asia Pacific Airlines (AAPA) director general Andrew Herdman said the main driver causing manufactures to move production to Southeast Asia is lower cost labour."People are diversifying their risk in terms of where they are sourcing as they look at making their supply chains more resilient."From an air cargo perspective, we have to respond to that. We have assets that are moveable, but you need traffic rights, you need support on the ground, you need logistics, you need market contacts so you need to cultivate those," Mr Herdman said.
The contract, which includes an option for an additional two World class vessels, represents the fifixth and 6th BIO-SEA ballast water treatment systems ordered by the Swiss-Italian owner, the world's largest privately-owned cruiseship operator. The first two Worldclass vessels, scheduled for delivery in 2022 and 2024, respectively, will be MSC Cruises' first cruiseships configured to use liquefied natural gas as marine fuel.They will each be fitted out with one BIO-SEA B02-0300 skid-mounted unit capable of treating ballast water flows of 300m3/h. The BIO-SEA skids will also feature an embedded power management cabinet for ease of operation. While containership owners are set to receive a charter market boost from the forthcoming IMO 2020 regulations, as some incumbent vessels are taken out of service for up to 40 days for the installation of scrubbers and will thus require temporary cover, it is generally in the larger sectors that carriers will be seeking replacements.
Head of digital learning Ted Bailey comments: "This course is a great addition to our international portfolio. Ballast water management is hugely topical right now and is set to significantly impact the future of the shipping industry. "Clear, insightful guidance on the implications of the Convention and how it will affect shipping operations is still needed - this course will provide delegates with all they need to know."Split into six modles, the course focuses on ballast water management, the Convention and why it's needed. It will highlight how the environmental concerns are addressed, as well as the role different job functions can and will play in the process of managing ballast water, Hellenic Shipping News Worldwide reported.Course director for the Certificate of Ballast Water Management, Niels Bjorn Lindberg Mortensen explains: "Starting in September 2019, 40,000+ existing ships around the world will, over the next five years, need to have designed, integrated and commissioned a ballast water management system. "There are many pitfalls to avoid and I'm looking forward to engaging with delegates to impart my knowledge and expertise and help them successfully navigate through this complex regulation."
Panama Canal Administrator Jorgen Quijano and IMO Secretary-General Kitack Lim at the Panama Maritime World Conference and Exhibition on March 18. The alliance is a public-private partnership initiative of the International Maritime Organisation (IMO) under the framework of the Global Maritime Energy Efficiency Partnership (GloMEEP) Project, which is a Global Environment Facility (GEF)-United Nations Development Programme (UNPD)-IMO project comprised of maritime industry leaders working to improve energy efficiency and reduce greenhouse gas (GHG) emissions in international shipping. "Today's announcement marks a proud milestone for the Panama Canal and its long legacy as the Green Route of world maritime trade," said Mr Quijano. "Given our roots in sustainability and innovation, this partnership reaffirms the canal's commitment to leading our industry to a cleaner and more efficient future," he said.
Many other universities, including Harvard University, the University of Illinois at Urbana-Champaign, the University of Chicago, the University of California-Los Angeles and the Massachusetts Institute of Technology, have yet to reveal the status of their ties with the Chinese tech giant.Huawei and the Confucius Institutes, reporting to a Beijing-linked body that promotes Chinese language and culture, have been targeted by some US lawmakers and federal departments in the belief that both organisations undermine US interests in various ways.Huawei's chief connection to American universities is through the Huawei Innovation Research Programme (HIRP), which the company calls a global initiative "to identify and support world-class, full-time faculty members pursuing innovation of mutual interest."
This compares with just 48 vessels for 88,000 TEU sent to breakers' yards last year, reports London's Loadstar.With the IMO 2020 low-sulphur rule looming January 1, shipowners are keen to unload as many older vessels as possible, with the current high scrapping rates providing added incentive.Braemar ACM reports on three recent demolition sales in the container sector: the 4,992-TEU 2004-built Piraeus, sold 'as is' in Singapore at $445/Ldt; the 2,020 TEU 1991-built MSC Pylos, sold for $450/Ldt; and the 1989-built 1,800 TEU Oriental Mutiara, sold for $468/Ldt, for delivery to Bangladesh.The sale of the 15-year-old Piraeus is indicative of the overcapacity still prevalent in the panamax sector. Indeed, in its last idle tonnage report, Alphaliner said there were around 40 panamax vessels looking for employment, and the situation "remains worrying for owners".Panamax vessels had a temporary reprieve last year as strong demand doubled daily hire rates to around $10,000, but rates have since fallen back to around $8,500 and, with the large number of ships on the spot market chasing cargo, look likely to fall further."Some owners have started addressing the oversupply issue by scrapping tonnage," said the consultant.
Singapore, China and Fujairah in the UAE have banned the use of the cleaning systems, called open loop scrubbers when the UN's International Maritime Organisation (IMO) rules come into force.The growing number of destinations imposing stricter regulations than those set by the IMO are expected to be costly. They might have to pay for new equipment and extra types of fuel and adjust their routes.Reuters has learned that individual ports in Finland, Lithuania, Ireland and Russia, have all banned or restricted such equipment, according to interviews with officials and reviews of documents by Reuters. One British port has occasionally imposed restrictions.Norway is also working on open loop scrubber bans around its world heritage fjords, an official with the climate and environment ministry told Reuters. A ban on all types of scrubbers is also proposed, the official added.The IMO rules will prohibit ships from using fuels with sulphur content above 0.5 percent, unless they are equipped with exhaust gas cleaning systems. The open loop scrubber wash out the sulphur and some industry experts believe they are the cheapest way to meet the new global rules.Companies that invested in open loop scrubbers will be unable to use them while sailing through those port waters. They also fear the IMO rules could change again and ban open loop scrubbers altogether.Ships with open loop scrubbers docking or sailing through those ports would need to store waste in tanks until it could be discharged elsewhere or avoid the ports.The other option is to use a scrubber with a "closed loop", which stores the waste until it can be treated on land. There are also hybrid scrubbers with a loop that can be open or closed.Shipowners could also choose another energy source such as low sulphur fuel or liquefied natural gas (LNG). Some experts say there will be enough low sulphur fuel available to avoid fitting scrubbers.Data from Norwegian risk management and certification company DNV GL shows there will be a total of 2,693 ships running with scrubbers by the end of 2019 - based on current orders - and over 80 per cent of them will be open loop devices, compared with 15 per cent using hybrid scrubbers and two per cent opting for closed loop scrubbers.Initial research to date into the environmental impact of open loop scrubbers has produced a range of results. The ports and authorities that have banned them have acted in anticipation of studies that conclusively show the discharge is harmful, environmental groups say.Gothenburg port said it recommended shipowners in their waters not to use open loop scrubbers as a precautionary principle to "avoid discharges of scrubber wash water in coastal waters and port areas".Businesses are waiting to see if the IMO rules will change."What is terrible for business is uncertainty in regulation and changes which are not broadcast well in advance," said Hamish Norton, president of dry bulk shipping group Star Bulk Carriers, among the biggest investors in scrubbers.
Port leaders say that the tensions between Donald Trump's administration and Beijing were partly responsible for the boost: American importers front-loaded shipments from China in order to bring goods into the country early, ahead of an expected round of tariffs, reported Fort Lauderdale's Maritime Executive. However, the trajectory of the port's growth suggests that its performance isn't primarily about short-term geopolitical factors. Its volumes have been growing steadily since 2010 when the economy began to recover from the recession and its most recent cargo forecast suggests that total TEU numbers at LA and Long Beach will double within two decades, from 17.5 million TEU to 41 million TEU. To handle all of this new volume, Long Beach is pumping in billions of dollars in upgrades: US$870 million on-dock rail terminal to cut down the number of trucks at its gates, a replacement for the freeway bridge that serves its main terminals and will combine two of its existing terminals into a new 300-acre, all-electric facility. At Pier B, a new rail yard will add space for rail car staging, which will improve efficiency by giving trains an out-of-the-way place to wait, says programme manager Mark Erickson. It will also enable the port to handle trains of 10,000 feet in length, reducing costs for rail lines and shippers. This project serves the long-term goal of handling half its cargo by rail since intermodal transport has such a strong competitive advantage for long distance shipments into the American heartland - Chicago, St Louis, even points east of the Mississippi River. This comes as some of the San Pedro Bay ports' competitors have made inroads in this market using fast rail connections. It is anticipated that improving the speed and cost of service will help Long Beach retain its edge.On-dock rail also lowers congestion at the gate, reduces traffic on local roads and takes hundreds of diesel-powered trucks out of operation, cutting down emissions. Given that ten per cent of the port's container throughput is currently trucked to off-site rail yards for loading, the Pier B terminal will also lower the environmental impact of current rail operations. As ships get bigger and economies of scale become more important, Long Beach is redeveloping Piers D, E and F to make one giant three-million-TEU terminal. The $1.5 billion project will feature green innovations like electric rail-mounted gantry cranes in its stacking yard, shore power connections, LEED environmental standards for buildings, solar panels and storm water pollution prevention infrastructure. By incentivising ship slowdowns, investing in shore power and banning older diesel trucks from its gates, Long Beach has achieved significant improvements. By 2017, diesel particulates were down by 88 per cent, sulphur oxide (SOx) was down 97 per cent and nitrogen oxide (NOx) was down 56 per cent relative to 2005 levels despite traffic growth. According to port executive director Mario Cordero, these long-term achievements can be credited to the port's decision to change the way it works with (and for) the community. Eventually, Long Beach wants to achieve zero emissions by switching to electric vehicles and equipment. It's already working on a trial at Pier T, where the California Energy Commission is helping to fund the installation of fast-charging infrastructure and the purchase of four battery-powered yard tractors. It will be the world's first heavy-duty, DC fast-charging system for off-road vehicles at a seaport - and it's one more step towards sustainable growth at America's "green port."
Imports at Los Angles declined by 9.08 per cent to 348,316 TEU, while exports contracted by 9.5 per cent to 142,554 TEU. Empty containers, on the other hand, rose 16.3 per cent to 214,436 TEU in February."After the busiest seven months in the history of our port, the anticipated ease in cargo volume provides an opportunity for us to regroup with our stakeholders," said port of Los Angeles director Gene Seroka in a statement. "With an uneven trade flow, we will be closely evaluating next steps for enhancing supply chain efficiencies."At the port of Long Beach, total volume came in at 596,616 TEU in February, which marked a 9.8 per cent year-on-year drop. Imports were down 11.5 per cent at 302,865 TEU and exports contracted by 19.6 per cent to 105,287 TEU. Empty containers, at 188,465 TEU, remained flat.Like POLB, POLA officials pointed to what it called a lull in shipping connected to the timing of the Lunar New Year, which fell later this year in February, coupled with coming off of a record-breaking January. Even with that backdrop, POLB's February volume was its second busiest for the month in its 108 years of operations."Overall, our volumes have increased and cargo flow has become more consistent as retailers constantly replenish inventory in the e-commerce economy," port of Long Beach director Mario Cordero was cited as saying. "Last year set high standards. We had our busiest months and year ever but we are still expecting modest growth in 2019."On a cumulative basis, POLA and POLB volumes were down 10 per cent annually, and 14 per cent compared to January, observed KeyBanc Capital Markets analyst Todd Fowler in a research note."Looking ahead, we expect volumes to potentially rebound sequentially in March as the impact of the Lunar New Year subsides combined with additional Easter/spring merchandise, and continue to build ahead of the summer shipping peak," Mr Fowler said.
US officials have warned Berlin that if it does not exclude hardware made by Huawei from its 5G infrastructure, they will no longer share sensitive information with Germany.Germany has acknowledged the challenges in regulating 5G and has decided to create universal standards that companies bidding to build the nation's 5G infrastructure have to meet.
Robert Lighthizer, the US Trade Representative, and Steven Mnuchin, the Treasury secretary, are expected to meet with Chinese vice-premier Liu He, to work towards making a final deal by the end of April.The US and China have been negotiating the enforcement of a possible trade deal, the status of existing tariffs on Chinese goods, the scale of purchases of US goods by China, the depth of Chinese concessions on structural reforms and the protection of intellectual property rights. Mr Lighthizer warned the Senate finance committee last week that "major, major issues" still needed to be resolved in the US-China talks, regardless of the headway that had been made in key areas over the past few months.