Friday, July 10, 2020
This adds to the of design faults that have plagued the engine since 2016. The glitch concerns the cracking of discs in the model's low-pressure turbine as they rub against nearby seals. The European Union Aviation Safety Agency said it plans to issue an airworthiness directive on the matter, which could lead to damage and reduced control over the aircraft if not fixed.Faults with the Trent 1000 have resulted in more than a billion dollars in charges and helped General Electric win a larger share of engine orders on the 787. Rolls-Royce said it aims to reduce Trent 1000 groundings for remedial work to no more than 10 at a time as flights resume after coronavirus lockdowns. The London-based company said the new problem shouldn't affect that goal."We do not anticipate it will cause any significant operator engine maintenance burden," a spokeswoman said. "We are developing a design solution which will remove the need to inspect these parts."
The latest figures from TAC Index show that air freight rates from Shanghai to North America last week fell 4.3 per cent compared with the previous week to US$4.50 per kilogramme.From Shanghai to Europe prices slipped by 2.4 3 per cent week on week to $3.21 per kilogramme.Prices from the Chinese hub have been declining rapidly over recent weeks after they surged in March, April in May due to urgent demand for personal protective equipment and the loss of bellyhold capacity.But the decline has slowed over the last couple of weeks and prices are still above the figure for the same week a year ago, when carriers were charging an average of $2.42 per kilogramme to Europe and $3.38 per kg to North America.Meanwhile, prices from Hong Kong to North America last week declined by 18.5 per cent to $4.55 per kilogramme, while to Europe they were down 15.8 per cent to $3.25 per kilogramme.
The airline will also cut 1,000 administrative jobs amid a slump in travel demand caused by the coronavirus. The airline? plan to scale back on deliveries will reduce spending on new jets by half.Lufthansa last month got shareholder approval for the biggest German bailout package outside of banks and financial institutions in years, but the refinancing means debt will swell and shareholders will be diluted by a 20 per cent stake handed to the government.The airline has the biggest fleet of any in Europe and the highest labour cost, and will have to reduce both to pay back borrowings before coupon payments rise. The company says it has 22,000 surplus full-time positions but will avoid firing staff wherever possible.
The online "MV Neptune Cyber" ship, powered by creative agency VisMedia, allows visitors to go on a virtual exploration of a vessel and understand potential cyber risks.In June 2017, the UN's International Maritime Organisation laid out its "Guidelines on Maritime Cyber Risk Management". Shipowners and managers now have until January 1, 2021 to build cyber risk management into their ship safety initiatives - or risk having their ships detained, said the press release.Ships and other maritime vessels have become highly connected and dependent on computer systems. IT and OT systems on many vessels are vulnerable to compromise, which has already led to a number of highly expensive cyber incidents, it said."Our quick-start guide includes clear action steps to help you prepare for the new IMO regulations. Depending on the complexity of your vessel more steps may be needed to adequately protect against cyber attacks," said Neptune Cyber CEO Gwilym Lewis. "Cyber security is often seen as a dark art that's difficult to understand, particularly in the marine sector. Our tool is designed to address this and uses our extensive industry knowledge to highlight potential risks in a clear and easy way," he said."This will particularly help owners, operators and non-technical people in the sector understand their cyber risks more clearly and start to know how to mitigate them," Mr Lewis said.
This was done by many if not most shore-based workers working from home, he said. CMA CGM had half he shore-based worker working remotely. In South America, it was 90 per cent."Right now, shore-based employees successfully ensure supply chain continuity despite having to work from home. However, in the longer term they are facing a development where there will be fewer of their jobs available," he said.Automating the entire end-to-end flow of data and documents will now move faster, said Mr Jensen, writing in Newark's Journal of Commerce. This means a reduced need for back-end customer service staff to handle these tasks.Setting aside seafarers who unable to perform crew changes have worked months beyond their contracts, Mr Jensen focused on staff ashore.Carriers were able to have most of their employees work remotely. This also means that over the past five months, the land-based employees have proven how adaptable and valuable they are in a time of crisis. "But this is where, for them, the potential troublesome outlook also begins." he said.How much will the workforce be reduced. Hapag-Lloyd in 2010, shipped 4.9 million TEU and had 5,457 shore-based personnel at the end of the year. This means, as a simple average, that each employee had a productivity of 17.4 TEU per person per week.In Q1 2020, Hapag-Lloyd's productivity using this measure was 21.6 TEU per person per week. Hence, the productivity improvement had reduced their total workforce by 2,590 people compared with a situation without such improvement. Hapag-Lloyd has a global market share of 7.2 per cent. If all other carriers have undergone a similar productivity improvement since 2010, this means the industry has shed 36,000 jobs over the past decade. If the other carriers have not yet seen such improvement, the digitisation will push them in that direction and the job reductions will follow, he said."How much additional improvement will we then see going forward as a consequence of the digitisation? If we move from 21.6 TEU per person per week to, say, 25 or 30 TEU per person per week, this would mean an elimination of an additional 20,000 to 42,000 shore-based jobs in the coming years," Mr Jensen said.
For 2021, the IMF sees a rebound, although the 5.8 per cent growth projection from April has been revised down to 5.4 per cent. "This means that, should these figures hold true, 2021 will see us back at the 2019 levels of GDP growth. This is materially worse than the projection in April, which had 2021 up by 2.6 per cent over 2019," said Sea-Intelligence CEO Alan Murphy.From a container shipping perspective, a few elements are particularly important, he said. The IMF contraction in world trade that was previously projected at -11 per cent is now down to -11.9 per cent for 2020, with the 2021 rebound revised down from 8.4 per cent to 8.0 per cent. "The euro area saw GDP growth projections drop from an already low -7.5 per cent to -10.2 per cent. This is especially concerning since the region will drive demand to fill the newest generation of ultra-large container vessels. "The IMF projection - if it turns out to be correct - is telling us that the current low demand levels are likely to persist for a while," he said. Consequently, the high levels of capacity withdrawals are also likely to persist. This is a view that is also backed up by the actual capacity withdrawals thus far seen in Q3.
The cranes are due at Oakland International Container Terminal on September 14, according to terminal operator SSA Terminals.At 300-feet-high, they would be the tallest in North America when they commence operations in January, reports London's Port Technology International."As ships keep getting bigger, SSA and ZPMC continue to help us keep ahead of the industry," said Port of Oakland executive director Danny Wan. "We're very excited and grateful for the partnership."The cranes can lift containers 174 feet above the dock, enabling them to stack boxes 12-high on ships. They can reach 125 feet across a ship's deck, spanning 24 rows of containers. They will be delivered by ship and require five days to be transferred from vessel to dock.SSA placed a US$30 million order for its new cranes in February 2019. In 2018, it completed a project to raise the height of four other ship-to-shore cranes.
As a result, the Port of Wilmington set a new record for refrigerated container volume in April 2020 as it did by docking one of the largest container vessels operating on the Atlantic seaboard.The 10-year old Hyundai Hope, a 13,154-TEU ship docked at Wilmington, making it the largest biggest vessel to call as she made her way from Cartagena, Columbia to New York.
She noted that in addition to the China's rising costs and the trade war with the US, the pandemic is going to be yet another "push factor" reducing China-centric procurement models."Major Chinese and international manufacturers have been increasingly seeking alternative locations in Southeast Asia which offer potential labour cost-savings in the range of 20-80 per cent," Ms Hadland said during a recent webinar.However, she also cautioned that the opportunity for diversification into the region was limited by the available workforce. "China's workforce is almost two-and-a-half times larger than that of all the major Southeast Asian economies combined, which isn't going to change."And in terms of port capacity, Drewry estimates China has some 267 million TEU available, compared with just 159 million TEU in the SE Asia region.The gap is much smaller, however, when comparing TEU capacity pro rata to workforce: Vietnam, Thailand and the Philippines are all close to China's 334 TEU per 1,000 workers. Singapore and Malaysia, meanwhile, have significantly more container port capacity by the same measurement."Indonesia, Myanmar and Cambodia fall below the China benchmark level, and Drewry estimates almost $13 billion investment is required to increase international port capacity in these countries by more than 30 million TEU," Ms Hadland said.The region's ports are also less well connected to the deepsea trades than their Chinese counterparts, she noted. This is due to their geography, the spread of volumes across a wide range or terminals and a lack of capacity to handle mainline vessels, reports London's Loadstar.For example, she said, in China there are 40 terminals at 18 ports that can handle 14,000-TEU ships, whereas in South-east Asia there are just 13 at six ports."Drewry estimates that, to reach to a comparable level, there will be 24 million TEU of existing port capacity requiring upgrades across the region, and some of this is already in progress," Ms Hadland said.Indeed, the ones to watch, in terms of new deepwater capacity demand, are Vietnam and the western areas of Indonesia, she added."There will be mismatch if large-scale production moves to Vietnam or to western areas of Indonesia, which aren't very far from the main east-west trade lanes, and then still having very high volumes transshipped in Singapore or Malaysia, which would start to become inefficient."Large amounts of foreign direct investment (FDI) started moving into Vietnam and Indonesia even before the coronavirus pandemic, Ms Hadland pointed out, noting that a high proportion of this was actually coming from China."We are seeing Chinese influence across the region growing," she said. "It's not just the multinationals leading this charge, it's very much a Chinese-led project to outsource their own production."For example, if you look at the Pearl River Delta, this area is moving into more of a service sector and hi-tech economy, as it's no longer competitive to do low-cost manufacturing there, These Chinese companies are under exactly the same pressures to cut costs."
There are currently more than 50,000 Indian seafarers stranded at sea, working beyond their contract lengths, thanks to travel restrictions put in place following the spread of coronavirus around the world. Cochin's southerly location and its deepwater port makes it an attractive destination for crew change diversions as ships do not have to head too far off course from their normal routes to get there.India has developed standard operating procedures for crew changes of Indian seafarers in local waters during the pandemic but is still grappling with how to repatriate the thousands of crew overseas.
The decline in container throughput in May is the biggest one-month volume drop since the virus began slowing the global economy.The port has now seen a 13 per cent decline for its calendar year to date (from January through May) and a 6.4 per cent drop for its fiscal year to date (from July through May). However, the full effect of the virus remains to be seen, since most of the impact in those statistics comes from a limited number of months, the port said.The decline is reflected in almost every area of the operation: truck moves, rail volume, breakbulk tonnage and the amount of cargo being handled at Virginia Inland Port. The amount of cargo the port is moving by barge and volumes at Richmond Marine Terminal, however, grew, 3.4 per cent and 24 per cent, respectively."It is a significant loss in volume that is being felt throughout the organisation and the situation is similar across the entire maritime industry," said Virginia Port Authority CEO John Reinhart."We are forecasting that this trend will continue through the end of summer because our customers are telling us that the blank sailings will continue into early September. The blank sailings were supposed to subside in early August, but the ocean carriers are telling us the volume just isn't there yet. Our economy is re-awakening and we are optimistic about the future, but the recovery is going to take time and patience."The spread of the virus is slowing, and the port is maintaining the precautionary processes it has been using to keep colleagues and its labour partners safe. Use of masks, social distancing, workplace cleaning and working from home, when possible, continue."The Port of Virginia Team and our labour partner, the International Longshoremen's Association, have been very fortunate and come through this largely healthy and intact," Mr Reinhart said. "It's important to recognise their professionalism and thank them for their dedication."Despite the pandemic's impact on cargo volume, progress on the expansion of Norfolk International Terminals' (NIT) south-side container stack yard, the 55-foot channel project and Orsted's offshore-wind project at Portsmouth Marine Terminal (PMT) continue.In May, the final group of automated stacking cranes arrived at successfully ending just over two years of constant deliveries of the machines that are the centrepieces of the expansion at that terminal; NIT's expansion will be complete this fall. The dredging project that will make Virginia home to the deepest port on the US East Coast is running ahead of schedule and PMT is preparing for the arrival of Orsted in late 2020."Our focus is on building a modern, efficient port that serves as an economic engine for all of Virginia and provides long-term value for our customers and the cargo owners that choose the Port of Virginia," Mr Reinhart said.
"Economic indicators show that the recession brought on by the pandemic may be easing, but retailers are being conservative with the amount of merchandise they import this year," said federation vice president Jonathan Gold."The outlook for imports is slowly improving, but these are still some of the lowest numbers we've seen in years." he said. Said Hackett Associates CEO Ben Hackett: "US imports are performing like a yo-yo, up one month and down the next with no apparent cause that can realistically point to either a crashing or booming economy. We're starting to go out to eat and buy clothing again, but the danger is that the rising number of virus infections is leading to renewed restrictions, which may cause demand to weaken again."US ports covered by Global Port Tracker handled 1.53 million TEU in May, the latest month for which after-the-fact numbers are available. That was down 4.8 per cent from April and down 17.2 per cent year on year. June was estimated at 1.69 million TEU, down 5.8 per cent year-over-year. July is forecast at the same 1.69 million TEU, down 14.1 per cent from last year; August at 1.69 million TEU again, down 13.3 per cent; September at 1.64 million TEU, down 12.3 per cent; October at 1.7 million TEU, down 9.9 per cent and November at 1.68 million TEU, down 0.6 per cent.With imports usually trailing off in November and December after the bulk of holiday merchandise has arrived, the 1.7 million TEU figure for October is likely to be the busiest month of the traditional July-to-October "peak season" for shipping. If so, it would be the lowest peak since 1.61 million in September 2014.The outlook is about the same as a month ago, with some months higher and some lower. Imports for the six-month period from May through October are expected to total 9.94 million TEU, a 0.7 per cent improvement from the amount forecast a month ago.The first half of 2020 is forecast to total 9.5 million TEU, down 9.3 per cent from the same period last year but better than the 10 per cent decline expected last month. Before the extent of the pandemic was known, the first half of the year was forecast at 10.47 million TEU.Imports during 2019 totalled 21.6 million TEU, a 0.8 per cent decrease from 2018 amid the trade war with China but still the second-highest year on record.