Maritime News Update Week 30/2018 - Recent News - Tan Cang – Cai Mep International Terminal

Maritime News Update Week 30/2018

Ports along Sai Gon River to be relocated

All ports along the Sài Gòn River will be relocated by the end of the year to reduce pressure on transport in HCM City, according to a report from the Transport Ministry submitted to the Government. The report reviews the results of a plan to relocate Group No 5 ports and ports in the Cai Mep – Thi Vai region.

Group 5 ports include ports in the southeastern region (HCMC, Dong Nai and Ba Ria – Vung Tau) and ports on the Soai Rap River in Long An Province.

Since 2013, HCMC, Dong Nai and Ba Ria – Vung Tau have not licensed the construction of new ports and has not accepted investment for port expansion

In addition, efforts have been taken to relocate ports in HCM City. Nguyen Xuan Sang, the general director of the Việt Nam Maritime Department, said for the Port Group No 5, the Ministry of Transport and several agencies have made efforts to relocate the Ba Son Shipyard and ports along the Sai Gon River.

Last year, the Tan Cang – Sai Gon Port in Binh Thanh District was moved to Cat Lai in District 9. The Sai Gon Port JSC has completed construction of major works of the Sai Gon – Hiep Phuoc Port project, so that it can handle vessels and cargo from Nha Rong – Khanh Hoi Port in District 1.

Port operations have been transferred to Sai Gon – Hiep Phuoc Port in Hiep Phuoc Industrial Park in Nha Be District, and work on the relocation of the port is scheduled to be completed within the second quarter of this year, according to Mr. Sang.

The relocation of these ports from inner districts helps distribute sources of cargo, and help reduce congestion through traffic flow and better relocates port groups in HCMC.

NYK Line Downgrades Profit Forecast

Japanese shipping company NYK Line has lowered its forecast for the interim and full year consolidated financial results.

Based on the previous forecast for the interim results covering April-September 2018 period, NYK Line said its anticipated revenue was JPY 905 billion and a profit of JPY 8 billion (around USD 72 million). However, these figures have been cut to JPY 890 billion worth revenues and a profit of JPY 3 billion, down by 62.5 percent.

For the full year ending March 31, 2019, the revenue has been downgraded from JPY 1.805 trillion to JPY 1.260 trillion, while the full year profit forecast was cut from JPY 29 billion to JPY 12 billion, down by 58.6 percent.

NYK Line ascribed the revision to, among other things, higher than expected one-off costs related to the launch of the Ocean Network Express with K line and MOL. The JV signaled the termination of NYK Line’s liner business.

In addition, the group’s airline business Nippon Cargo Airlines (NCA) temporarily suspended all of its aircraft operations from June 17, 2018, to confirm the airworthiness of the company’s aircraft.

COSCO Shipping Lines Falls Victim to Cyberattack

COSCO Shipping Lines confirmed that it has been hit by a cyberattack impacting its internet connection within its offices in America.

As such, local email and network telephone were not working properly and the company decided to shut down the connections with other regions for further investigation.

Based on the information released so far, the incident that took place on Tuesday, July 24, was described as a ransomware attack.

The Chinese shipping and logistics company said that its vessels were not impacted and that its main business operation systems were performing stably. However, COSCO’s terminal at the Port of Long Beach was affected.

“We are glad to inform you that we have taken effective measures. Except for above regions affected by the network problem, the business operation within all other regions will be recovered very soon. The business operations in the affected regions are still being carried out, and we are trying best to make a full and quick recovery. We will keep you updated of the latest progress through various channels,” the company said.

Even though the impact was not as severe as the one experienced by Maersk Group in June2017, companies are encouraged to boost their cyber security if they want to avoid the scenario that cost Maersk around USD 300 million.

CMA-CGM announces Asia-Africa rate hikes and low water surcharge

French shipping line CMA-CGM has announced intra-Asia and African rate increases and a low water surcharge that applies to cargo in eastern Canada.

The rate increase - US$200 per TEU and $400 per FEU - is effective August 1 and applies to cargo from China, South Korea, Taiwan, Southeast Asia and Bangladesh bound for Kenya and Tanzania.

There will also be new FAK rates on cargo originating in India and Pakistan bound for north European and Mediterranean base ports from August 1.

Again new FAK rates will apply on cargo from Asia to Red Sea ports at $300 per TEU from South Korea, Taiwan, South-East Asia and Bangladesh to Kenya and Tanzania.

CMA CGM also announced a low water surcharge from North Europe to Canada's east coast and from east coast Canada to north Europe of $150 per container regardless of size. Again from August 1.