Trade Update Review - April 5th, 2022

Asia

New service between China & India’s east coast by a consortium of three ocean carriers

• A consortium of three ocean carriers, Regional Container Lines (RCL), Pacific International Lines (PIL) and Inter Asia Line(IAL), have launched a new service between China and India’s east coast, Chennai & Visakhapatnam, which will commence from April 22.

MOL begins promoting used ship equipment sale from Turkey’s demolition yards

• Japanese Mitsui O. S. K. Lines Ltd (MOL) has embarked on an endeavour to promote recycling and reducing waste emerging from used ship equipment from demolition yards in Turkey. It has launched a cross border e–commerce site to sell them to customers across the world.

Wan Hai orders five 13,200 boxships from HHI

• Taiwanese shipping line Wan Hai has ordered five 13,200 TEU capacity boxships from SouthKorea’s Hyundai Heavy Industries (HHI) at a cost of $550 million.

Americas

World Shipping Council (WSC) says US Ocean Shipping Reform Act, 2022 does not address the root cause

• WSC, counting shipping industry’s heavyweights such as MSC, Maersk, CMA CGM, Hapag - Lloyd and others as its members has noted that the new Ocean Shipping Reform Act of 2022 does not address the root cause of ports congestion in the United States of America (USA).

TIACA launches BlueSky program to evaluate air cargo industry’s progress towards sustainability

• The International Air Cargo Association(TIACA) has launched BlueSky program, which is an industry specific tool aimed at recognising and measuring members’ progress towards sustainability.
• BlueSky will validate and verify to track progress in sustainability journey, including benchmarking against peers and also quickening the industry’s metamorphosis.

Europe

IMO’s legal committee approves circular on guidance for two seas

• The London-based International Maritime Organization (IMO) has approved a circular on guidance on the impact of the situation in Azov Sea and Black Sea on insurance or other financial security certificates.  

Global shipping lines rake in more than $110 billion operating profit in 2021

• According to Sea Intelligence, a leading provider of research and analysis and data and advisory services to the global supply chain industry, global shipping lines raked in an astounding operating profit of over $110 billion in 2021.
• For comparison, the decadal operating profit of the industry from 2010 to 2020 amounted to just $37.5 billion. In just one single year, 2021, the operating profit of shipping lines tripled.

Middle East & Africa

FFFAI & NAFL sign pact for mutual benefit and cooperation

• The freight forwarders’ association in India (FFFAI) and United Arab Emirates (UAE) based national association of freight& logistics (NAFL) have signed an agreement for mutual benefit and cooperation.

Maersk & Egypt to explore green fuel production

• Danish shipping major Maersk and Egyptian authorities have inked a pact to explore the setting up of large green fuel production facilities in the North African country.
• General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt forInvestment and Development (TSFE) have forged the partnership with Maersk.

Amid port congestions, ZIM updates service structure

• Aimed at securing highest possible service reliability amid port congestions, Israeli shipping heavyweight ZIM Integrated Shipping Service Ltd (ZIM) has updated its previously announced new Asia – Pacific North-West and Asia East Mediterranean services.

ZIM announces new chartering transaction for six new vessels

• Israeli shipping line ZIM entered into a new charter transaction agreement with a group of investors for six 5,500 TEU wide beam new build vessels at a charter hire consideration of $600 million for a period of seven years.
• These vessels will be built by Korean shipyard HJ Shipbuilding & Construction to be delivered between May 2023 andFebruary 2024.

‍

India

Flagship Sagarmala completes seven years

• India’s flagship Sagarmala programme which enabled reducing port turnaround time by 40 percent has completed seven years recently. Sagarmala powered Indian ports to become more efficient, slashed container turnaround time and ushered in more benefits to the ports.
• From 44.70 hours in 2013 – 14, containers turnaround time fell to 26.58 hours.

Mechanisation investments slash container turnaround time

• Sarbananda Sonowal, Minister for Ports, Shipping and Waterways noted that container turnaround time in India got slashed to 25.6 hours from 45-odd hours in 2013 – 14 due to investments in mechanisation.

CMA CGM begins block train service from Mangalore Port to Nhava Sheva

• Aimed at catering to shippers preferring direct mainline options offered by Nhava Sheva, French shipping line CMA CGM has started a block train service from New Mangalore Port (NMPT) to Nhava Sheva in association with the Container Corporation of India (CONCOR).

ICRA reduces Indian economic growth owing to rising commodities prices

• Ratings agency ICRA has reduced India’s economic growth forecast from 8 percent to 7.2 percent for the financial year 2022 – 23 due to rising fuel and commodities prices amid Russia – Ukraine war.

‘Indian businesses’ highly optimistic to move freight through train’

• According to data and business analytics company Dun & Bradstreet’s survey Railway Freight Activity Optimism Index (RFAOI), Indian businesses are more optimistic to move freight through railways in Q1, 2022 than last year.

JNPA handles 5.68 million TEU in 2021– 22, highest ever‍

• Jawaharlal Nehru Port Authority (JNPA) has handled 5.68 million twenty-foot equivalent units (TEU), highest, in fiscal 2021 – 22, witnessing a growth of 21.5 percent.

Startup Wiz Freight raises funds from global investors‍

• Cross-border supply chain startup Wiz Freight has raised investments worth Rs 275 crore in the form of both equity and debt from Tiger Global, along with participation from Alteria Capital, Stride Ventures, Arali Ventures, Foundamental and Axilor Ventures.

Honda enters marine outboard business in India with four-stroke engines ‍

• Eyeing India’s long coastline and market potential, HondaIndia Power Products has entered into the marine outboard business with its four-stroke engines. Honda aims to cater to commercial fishing and taxi boat services, maritime border security players and boat operators among others.

Indian government released a list of waterways feasible for cargo and passenger movement

• The Ministry of Ports, Shipping and Waterways has released a list of 26 national waterways (NWs) feasible for cargo and passenger movement.

European Union is the second major destination for Indian organic food products

• According to the Ministry of Commerce &Industry, the European Union (EU) is the second biggest destination for organic food products from India. Exports to the EU under National Programme for Organic Production (NPOP) accounted for $356 million.