26 October 2020

Latest Updates - Maritime Shipping - 26th October 2020

Latest Updates - Maritime Shipping - 26th October 2020
ZIM heads to the UAE In another landmark moment in the reshaping of ties in the Middle East, Israeli carrier ZIM will start calling at Jebel Ali port in the United Arab Emirates (UAE). Israel has opened diplomatic and trading ties with old foes, Bahrain and the UAE in recent weeks with Dubai terminal operator DP World looking at investing in the Israeli port of Haifa. Two existing ZIM services will now offer service to and from Jebel Ali port in the UAE. Historically, all ZIM vessels have avoided calling at any Arab countries. Kuehne+Nagel India Announces Move Of Its India Head Office Kuehne+Nagel India announced its move of its India Head Office to AIPL Business Club at Golf Course Extension Road, Gurgaon. Designed to reduce the building’s carbon footprint, the AIPL Business Club uses solar panels and efficient double glazing with less solar gain. It also uses 100% recycled water for landscaping. By merging the New Delhi head office and operation office into one location, this further promotes collaboration within the Kuehne+Nagel India teams on delivering solutions that meet customers’ needs. It also enables the company to make a more significant impact on sustainability. Additionally, the choice of the office is very much in line with Kuehne+Nagel’s Net Zero Carbon programme and its commitment to actively contribute to the reduction of CO2 in transport and logistics worldwide. Kuehne+Nagel India is looking forward to help customers deliver on their promises through its suite of digital solutions such as eShipAsia and eTrucknow with on-ground support by its local experts. Exporters Petition Govt. on Freight Increase The Federation of Indian Exporters Organizations (FIEO) has written to the Shipping Ministry citing “monopolistic and unfair practices” by shipping companies which has led to an unprecedented increase in freights for overseas destinations. FIEO President, in a letter to Director General Shipping has said that the shipping lines have again increased their freight to main European ports. It is about 60% increase within a week. Similarly freight to Latin American ports have been increased by 50% and for US ports are also being increased regularly. “This has an unprecedented increase and a clear indication of monopolistic and unfair practice”, he said. The FIEO President said in the letter that availability of containers has further worsened even from regular ports such as Mundra and JNPT. The situation in inland container depots (ICDs) is still worse, he added. The letter said that while it is true that imports have reduced but shipping lines can easily bring empty containers with negligible cost from Dubai and other ports. The major carriers have consolidated and have almost monopolized the container freights and are abruptly increasing the freights, without any proper justifications, by forming cartels and actions should be initiated against such monopolistic practices,” the FIEO concern to the Shipping Ministry. Delays In Customs Clearance Crippling India’s Import-Export Industry Customs clearance delays continue to cripple the Indian industry as they have extended from the earlier 15-20 days to 25-30 days, and in some cases clearance is being given after over a month, sources told CNBC-TV18. The industry and custom brokers are citing the poor rollout of faceless assessment for the delays. The sectors that are being impacted by the delay has expanded. Earlier, delays were faced primarily by automobiles, auto ancillary, electrical machinery, metals, chemicals and medical equipment. However, now labour intensive sectors and domestic manufacturing are also getting impacted, due to the delay in release of goods. According to export agencies, the delay is worsening the situation as the current period is peak business time ahead of the Christmas break. Export agencies have claimed that there are no containers available and freight rates have shot up substantially. They believe that there is an urgent need for regulatory body to regulate the operations. Moreover, exporters have said that the farmer protest in Punjab has held up 5,000 containers, which is creating a lot of issues for the sectors involved. Shipping Ministry Throwing Its Weight Behind Vizhinjam Box Transshipment Port The Shipping Ministry is throwing its weight behind the under-construction container transhipment port at Vizhinjam in Kerala in a bid to raise the level of Indian cargo transhipped at local ports to over 75 per cent by 2030 from about 25 per cent. Currently, only 25 per cent of Indian cargo transshipment is handled by Indian ports resulting in $80-100 per twenty-foot equivalent unit (TEU) higher cost to exporters and importers for routing their containers through hub ports such as Colombo, Singapore and Jebel Ali. Adani Ports and Special Economic Zone Ltd, India’s biggest private port operating company, was awarded the rights by the Kerala government to build and run the facility in a public tender in 2015 for 40 years and extendable by another 20 years. A container transhipment port such as the one planned at Vizhinjam acts like a hub, into which smaller feeder vessels bring cargo which then gets loaded onto larger ships for transportation to final destinations. Larger vessels bring about economies of scale, and lower the cost of operations for shipping lines, which then translates into lower freight rates for exporters and importers. Sources: https://splash247.com/ https://www.hellenicshippingnews.com http://www.maritimegateway.com https://maritime-executive.com/

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