25 March 2022 • 20 min read
Trade Update Review - March 17, 2022
The first week of March in the world of shipping started off with MOL completing 100 percent acquisition of Utoc Corporation, Oracle introducing new logistics management capabilities and DB Schenker & CMA CGM teaming up to offer regular emission-free ocean freight. However, the Russia – Ukraine war has emerged as a major dampener for global trade, raising shipping costs and disrupting manufacturing.
MOL completes 100 percent acquisition of Utoc Corporation
- MOL on Wednesday completed 100 percent acquisition of Utoc Corporation.
BSI awards another ISO certification to Bahri
- The British Standards Institution (BSI) awarded ISO 22301:2019 certification toBahri, a logistics and transportation heavyweight, for complying with the latest standards of Business Continuity Management System (BCMS) and establishing excellent business continuity strategies.
Oracle introduces new logistics capabilities
- The Global software behemoth Oracle has introduced new logistics management capabilities, Oracle Fusion Cloud Supply Chain & Manufacturing(SCM), aimed at bolstering the efficiency and value of organisations’ global supply chains.
DB Schenker & CMA CGM team up to offer regular emission-free ocean freight
- Taking a major step towards decarbonized ocean freight, global logistics and transportation services major DB Schenker has teamed up with French shipping powerhouse CMA CGM to offer green container transport.
- DB Schenker converted all its less than container load (LCL) volumes with CMA CGM into carbon free production by signing a purchase contract of over 2,500 tons of biofuel with the carrier.
IMO secretary general calls for the safety of seafarers amid Ukraine – Russia war
- International Maritime Organization (IMO) secretary general Kitack Lim called for the safety of seafarers amid ragingUkraine – Russia war, highlighting that maritime shipping and seafarers cannot be collateral victims of larger military and political crises.
Russia – Ukraine crisis increasing global shipping costs
- Following Covid-induced inflated shipping costs, the global shipping landscape is bracing for another round of freight rate hikes in the light of Russia – Ukraine war.
XSI Public Indices highlights long term ocean freight rates on the rise again
- Oslo-based Xeneta Shipping Index (XSI) PublicIndices highlighted that long term ocean freight rates are on the rise again due to congestion, demand and geopolitical uncertainty.
UK bans Russian vessels amid Ukraine war
- The United Kingdom (UK) government banned Russian flagged, controlled, registered, owned, chartered or operated vessels from its ports due to the invasion of Ukraine.
BIC and FIATA join the Cargo IntegrityGroup
- Bureau International des Containers (BIC) and the International Federation of Freight Forwarders Associations (FIATA) have joined the Cargo Integrity Group, which brings together international freight transport and cargo handling organisations with various roles in the supply chain industry to enhance security, safety and environmental performance.
ICC fears Russia – Ukraine war will disrupt global manufacturing
- Among several other fears, the International Chamber of Commerce (ICC) recently noted that the Russia – Ukraine war runs the deeper risk of disrupting manufacturing on a global scale over a broad range of sectors.
Abu Dhabi Ports Group (AD Ports)acquires Divetech Marine Engineering Services
- AD Ports Group recently acquired Divetech Marine Engineering Services, a United ArabEmirates (UAE)-based topside – subsea solutions provider which operates in the space of installation, inspection, maintenance of ports, repair and other maritime organisations.
Shipping Minister inaugurates mobile container scanning facility at Visakhapatnam Port
- Union Shipping Minister Sarbananda Sonowal recently inaugurated a mobile container facility at VisakhapatnamPort in Andhra Pradesh.
Indian exporters exercising caution over shipments to Russia amid Ukraine war
- Amid Russia’s invasion of Ukraine, Indian exporters are exercising caution over shipments to Russia and executing existing orders. Exporters are also delaying the execution of fresh order over fears of delay in payments.
‘Indian economy growing at quickest pace among large nations’
- According to the Monthly Economic Review of the Union Finance Ministry, Indian economy is poised to grow at the fastest pace among large nations powered by 2022 – 23 budget initiatives.
‘Indian textiles exports can touch $100 billion in the next five years’
- Textiles secretary Upendra Prasad Singh noted that Indian textile exports can touch $100 billion in the next five years at the 44th foundation day of Apparel Export Promotion Council(AEPC).
Leather exports expected to cross $6billion in 2022 – 23
- India’s leather exports are expected to cross $6 billion in 2022 – 23, enabled by rising demand in the United States of America (USA) and newer markets like the Middle East, Latin America and Africa.
Commerce Ministry sets up help desk for traders amid Russia – Ukraine war
- Indian Commerce Ministry has set up a help desk for Indian exporters and importers to reach out in the event of any issues rising up amid Russia – Ukraine war.
Indian Register of Shipping completes CAP certification for four vessels
- Indian Register of Shipping has completed the condition assessment programme (CAP) certification for four vessels of MOL Tankship ManagementPte Ltd, Singapore. It issued the certifications to two very large crude carriers (VLCCs) and two liquefied gas carriers.
Export curbs on remdesivir, APIs removed
- Amid falling Coronavirus cases in India, the Directorate General of Foreign Trade (DGFT) removed export curbs on remdesivir and active pharmaceutical ingredients (API).
Russia – Ukraine war impacts tea exports and fertilizer imports
- The raging Russia – Ukraine war has impacted Indian tea exports and fertilizer imports. India is dependent on Ukraine, Russia and Belarus for fertilizers while tea exports to major markets Russia and Ukraine are disrupted.
IndiGo tests sustainable aviation fuel
- Indian airline IndiGo has recently tested sustainable aviation fuel (SAF) on a flight from Toulouse, France to Delhi. The test fuel comprised of a blend of 10percent SAF and 90 percent normal fuel.
GMR Hyderabad Air Cargo (GHAC) aiming to become largest in Central and South India
- GHAC is boosting its infrastructure to emerge as the largest air cargo hub in Central and Southern India. It witnessed 35 percent growth in domestic cargo volumes in 2021.
India to integrate national logistics portal with Unified Logistics Interface Platform (ULIP)
- Aimed at slashing logistics cost, Indian government is working towards integrating the national logistics portal with ULIP. As many as 24 digital systems of six ministries will be merged into ULIP.
FIEO urges exporters to follow wait& watch strategy amid sanctions on Russia
- A. Sakthivel, president of the Federation ofIndian Exporters Organisations (FIEO) urged exporters to follow a wait and watch strategy with respect to shipments amid US banking and financial sanctions onRussia due to the war with Ukraine.
CONCOR flags off first full rake of 40feet containers to Bangladesh
- In a first, the Container Corporation of India(CONCOR) recently flagged off its first batch of full rake carrying 40feet export containers from its CFS at Majerhat in Kolkata to Benapole inBangladesh. The containers were carrying assembly plant components and auto parts.
‘PM Gati Shakti plan will give a new direction for modern infrastructure’
- Prime Minister Narendra Modi recently said PM Gati Shakti plan will offer a new direction for the development of modern infrastructure in India through planning, implementation and monitoring among other efficiencies.
India’s farm exports to touch $50 billion in 2021 – 22
- Powered by growth in rice, marine, meat and poultry items, India’s farm exports are expected to touch $50 billion in 2021 – 22.
Indian tea exports prospects brighten as Australia opens up
- As Australia opens up after implementing some of the most stringent Coronavirus restrictions, Indian tea exports prospects to that country have brightened, considering the former is one of the highest paying buyers of the latter’s tea.
Deendayal Port Authority board meets and takes multiple decisions
- Approval for upgrading plots, roads and SWD in40-hectare area inside cargo jetty area and improving and upgrading parking yards situated on the north of the road leading to W. G. I & II outside cargo jetty area were among the several decisions taken by the board of Deendayal Port Authority which met on February 28th.
Gati Shakti National Master Plan can lower logistics costs to one of the lowest in the world
- Commerce and Industry Minister Piyush Goyal noted that the Gati Shakti National Master Plan can lower logistics costs in India to one of the lowest in the world and raise competitive edge in the global market.
ECGC coverage on export transactions to Russia not withdrawn
- India’s Export Credit Guarantee Corporation(ECGC) recently clarified that coverage on export transactions to Russia has not been withdrawn.
JNPT achieves all-time highest container handling feat
- Jawaharlal Nehru Port Trust (JNPT) has achieved the feat of handling the highest number of containers, 5.15 millionTEU, in its history in 2021 – 2022, compared to the 5.15 million TEU clocked in2018 – 19.
Deendayal Port Authority has 10projects worth Rs 3,159 crore under PM Gati Shakti
- Deendayal Port Authority (DPA) has 10 projects worth Rs 3,159 crore under PM Gati Shakti National Master Plan. Additionally, seven more projects worth Rs 6,685crore have also been envisaged at Rs 6,685 crore. In total, 17 projects worthRs 10,000 crore will add a capacity close to 100 MMTA.
DGFT provides relief to moong importers
- Offering relief to moong importers, DGFT relaxed some provisions of the foreign trade policy to enable them to import moong cargoes contracted prior toFebruary 11.
Revised berthing policy at Adani Hazira Port to begin from April 1
- The revised berthing policy and tariff structure (BPTS) for Adani Hazira Port’s terminal will begin from April 1.
CBIC slashes compliance requirements& introduces end to end automation
- Aimed at achieving Atmanirbhar Bharat and propelling ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) slashed some compliance requirements under Customs(import of goods at concessional rate of duty-IGCR, 2017) and also introduced end to end automation.
Finance Minister launches e – bill processing system
- Union Finance Minister Nirmala Sitharaman launched e – bill processing system as part of ease of doing business and digital India ecosystem, aimed at quickening payments processes and ushering in broader transparency.
Oil prices bigger worry for Indian than trade with Russia
- According to S&P Global CommodityInsights, rising oil prices is a bigger worry for India than the trade flows with Russia. Platts Analytics noted that high flat crude oil prices will cause inflationary pressure.
‘Mumbai will emerge as cruise capital of India’
- Mumbai Port Trust chairperson Rajeev Jalota highlighted that the western Indian city of Mumbai will emerge as the cruise capital ofIndia.
- He said Mumbai International Cruise Terminal(MICT) and Floating Storage Regasification Unit (FSRU) are the two major upcoming projects in the port.
- The cruise terminal can handle up to 6,000passengers at a time, even as 40 lakh cruise passengers are expected in India by 2041 – 42.
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