Maritime News Update Week 18/2019

ONE Takes Delivery of New 14,000 TEU Vessel “ONE APUS”

24 Apr 2019 – Singapore – Kure in Hiroshima, Japan - Ocean Network Express (ONE) announced that ONE APUS, with a carrying capacity of 14,000 TEU, was successfully delivered at Kure Shipyard of Japan Marine United Corporation.

The sublet owner is Nippon Yusen Kaisha. This is ONE’s second delivery this year, and the 6 th of a series of seven newly built 14,000 TEU magenta containership, after ONE GRUS (delivery date on 1 st of February 2019). Equipped with outstanding safety and environmentally-friendly capabilities such as structural arrest technology and highly efficient welding technology, ONE APUS employs a hull form with minimized engine-room space to improve cargo-loading efficiency. Furthermore, ONE APUS is fitted with the world’s first “dual rating system” technology in the main diesel engine to facilitate flexibility in operations and boost fuel efficiency to significantly reduce greenhouse gases. The Crack Arrest Technology is also implemented to strengthen and provide excellent structural safety. With the Integrated Navigation System (INS), the navigation bridge consolidates functions of vessel systems to efficiently reduce the workload of operators. Additionally, for safety improvement, a wide window is also newly adopted for widened visibility, aiding the view of vessel operators from the wing of the vessel’s bridge when berthing and unberthing.

She will be deployed on East Coast 4 (EC4) service (Asia to US East Coast), under THE Alliance (THEA). Port Rotation Kaohsiung - Hong Kong - Yantian - Cai Mep - Singapore - New York - Norfolk - Savannah - Charleston - New York - Singapore - Kaohsiung

AFEX to call at Vung Tau, Vietnam during the cashew nuts season

CMA CGM is to upgrade the quality of its AFEX service connecting West Africa to Asia for the export of cashew nuts from Benin and Ghana.

To respond to our customers’ needs for a direct weekly service from Benin and Ghana to Vietnam, Vung Tau direct call will be inserted in the rotation, effective May 11th, 2019 with m/v KMARIN AZUR voy. 08Y2WE1MA.

This additional call in Vietnam is planned for the entire season of the cashew nuts, expected to end in Ghana and Benin late June / beginning July. The last call in Vung Tau is scheduled ETA August 3rd, 2019.

Transit times to Vietnam are premium. Vung Tau is reached from Tema in 32 days, from Cotonou in 35 days. Ho Chi Minh will be served by barge via Vung Tau with an additional 3 days.

Rotation Eastbound: Lome – Tema – Cotonou – Walvis Bay – Tanjung Pelepas – CMIT – Shanghai - Ningbo – Fuqing/Fuzhou – Kaohsiung – Nansha – Singapore – Tanjung Pelepas – Lome


COSCO Shipping Lines Names Its Third 21,000 TEU Boxship Giant

China’s COSCO Shipping Lines has named its latest 21,000 TEU containership at compatriot Jiangnan Shanghai Changxing shipyard.

The naming ceremony for COSCO Shipping Galaxy was held in Shanghai on April 18, 2019.

The ultra large container vessel (ULCV) — the group’s third ship of this size — has a length of 400 meters, a width of 58.6 meters and a maximum draft of 16 meters.

With a deadweight tonnage of 198,500 dwt, the boxship can reach a speed of 22 nautical miles.

As explained, the BTWS-equipped COSCO Shipping Galaxy features energy-saving and low-emission technologies, complying with the latest environmental regulations.

Following the delivery planned for May 2019, the newbuild will be deployed in the AEU1 service, according to COSCO.

The 215,553 GT COSCO Shipping Galaxy currently has a market value of USD 142.13 million, VesselsValue’s data shows.


HMM’s CEO Seeks to Strengthen Ties with 2M Alliance

The new CEO of South Korean shipping company Hyundai Merchant Marine (HMM) revealed plans to “consolidate the relationship” with 2M carriers, Maersk Line and Mediterranean Shipping Company (MSC). 

Jae-hoon Bae, who was appointed as HMM’s President and CEO last month, will be visiting Denmark and Switzerland, the countries where the 2M partners are headquartered, this week.

The purpose of the CEO’s visit is reportedly the extension of a strategic deal with 2M. Bae wants South Korean shipping company to become a full 2M member next year, the Wall Street Journal cited a person with knowledge of HMM’s efforts as saying.

Back in 2017, HMM signed the agreement with Maersk and MSC, launching the parties’ strategic cooperation on East-West trades. The three-year strategic cooperation is set to expire in April 2020 but has an extension option.

The deal includes a series of slot exchanges and slot purchases on the abovementioned route, as well as 2M taking over a number of charters and operations of vessels currently chartered to HMM.

Last year, industry analysts expressed their concerns that HMM would part its ways with 2M once the deal expires. The strategic cooperation was described as disadvantageous to HMM as the South Korean company is not a full member of the alliance.

What is more, HMM is not the only 2M Alliance strategic partner. In July last year, Maersk and MSC inked a strategic agreement with shipping company ZIM, deciding to swap slots on five loops on the Asia-US East Coast trade. The carriers expanded their cooperation in January 2019 as they agreed to share slots on select 2M services also on the Asia-US West Coast and Asia-Mediterranean trade lanes.

In December 2018, HMM was still not sure what course its relationship with 2M would take. The company, however, told World Maritime News that it maintained good ties with the alliance partners.

During his European tour this week, HMM’s CEO will be also visiting the European headquarter of HMM, located in London. Furthermore, Bae will meet Kitack Lim, the Secretary-General of the International Maritime Organization (IMO), to share opinions and views on the IMO 2020 environmental regulation and upcoming regulatory measure on CO2 emissions.


CMA CGM Rolls Out New Digital Solution

French container shipping and logistics company CMA CGM has launched CMA CGM eSolution, a digital system aimed at enhancing the customer experience.

The system comprises an online agency and other e-commerce channels such as Electronic Data Interchanges (EDI) and Application Programming Interfaces (API) which allow the digital transmission of relevant information and data between the company and its clients.

A large majority of the CMA CGM Grou’s bookings have been made via its eCommerce solutions, among which half are made through the group’s web platform. The new solution now enables a 100% digital journey when clients choose CMA CGM to transport their goods.

For several years, CMA CGM has developed and launched a whole set of digital solutions such as schedule research, quotation request, booking, shipping instructions, documentation, shipping dashboard and tracking.

The group is now strengthening its digital customer experience by offering its clients a new sales channel. New features are currently available at a regional or global level and will be gradually rolled out on the different platforms of the group’s brands. They include ePricing, eBooking, eBill of Lading, ePayment, eTracking and eCharges.

More features will be launched in the coming months, CMA CGM said.

As part of its eSolutions, CMA CGM will now offer priority boarding to its customers using its digital platform, allowing them to secure space on board. First offered by CMA CGM from India to Europe, priority boarding will be gradually offered to other countries and carriers within the CMA CGM Group.

Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM, has defined digitization as a key strategic priority for the group’s development.

During 2018, the group accelerated its digital transformation through the development of IoT and Artificial Intelligence, as well as partnership agreements related to blockchain.

In addition, CMA CGM opened an incubator in Marseilles, ZEBOX, which will house 30 startups from around the world by the end of 2019.


ONE reports $586 million loss in 2018-19 fiscal year

Ocean Network Express, the container shipping company owned by NYK, MOL and “K” Line, forecasts a profit in the current fiscal year.

Japan’s three largest shipping companies — NYK, MOL and “K” Line — reported financial results for their 2018-19 fiscal years, including the financial results for the container carrier Ocean Network Express (ONE) they jointly own.
ONE had a loss of $586 million in the fiscal year ending March 31 and revenue of $10.88 billion. It is ONE’s first year of operation, and no comparison for past performance of the liner operations of the three owners was given. However, ONE did forecast that in the current fiscal year, which runs from April 1 to March 31, 2020, it will have a profit of $85 million on revenue of $12.7 billion.
ONE said that in the final quarter of its fiscal year — the first three months of 2019 — the eastbound transpacific route trade was relatively weak after the Chinese New Year, due “in part to a backlash downturn from the earlier rush demand ahead of additional U.S. tariffs on China.” Freight rates slightly declined from Q3 because of a decrease in demand.

ONE said it is expected profits to gradually recover throughout the first half of its fiscal year with improved container volumes that will recover to the levels before NYK, MOL and “K” Line integrated their liner operations. ONE said that volumes that dropped due to teething problem when it began its services last spring have been restored.
“Measures will be taken to improve revenue and reduce expenditures such as improving the cargo portfolio, reducing fuel oil costs and cutting overhead costs,” said ONE. It added that it plans to “improve profit by optimizing the combination of front-haul and backhaul cargoes.”

The three companies are planning to transfer their terminal businesses outside of Japan to ONE during the current fiscal year. 
ONE said that by merging the liner arms of NYK, MOL and “K” Line, the companies will realize $1.05 billion in synergies. It added that 82 percent of those savings were achieved by March 31, an additional 14 percent will be achieved in the current fiscal year and the last 4 percent in fiscal 2020-21.
The synergies include:

 • $430 million in variable cost reductions on things such as rail, truck, feeder ship transport and terminal equipment; 
 • $370 million from reduced overhead such as information technology costs, rationalization of the organization and outsourcing;

 • $250 million from reduced operating costs on items such as fuel consumption and from product rationalization.


From May 1 goods exported to the US via Cat Lai Port must be scanned radiation

VCN- Nguyen Thanh Long, Deputy Manager of SaiGon Seaport Customs Branch of Zone I said that from May 2019, all goods exported to the US via cat Lai Seaport must be scannedfor radiation.

According to Long, from May 2019, the Branch and SaiGon New Port Corporation will deploy the operation of the Megaport system. All goods containers exported to the US at Cat Lai Port must be scannedvia this system to detect radiation.

The Megaport system is a scan system to detect illegal transport of nuclear materials and radioactive materials for imported and exported goods transported by container through the port.

The system is supported by the US government.

In 2014, this system was installed and operated at three ports under the management of the Ba Ria-Vung Tau Customs Department, including Tan Cang - Cai Mep Container Terminal (TCCT), Tan Cang-Cai Mep International Container Terminal (TCIT) and SP-PSA international port.

The implementation of the Megaport system affirms Vietnam's goodwill and cooperation in prevention of terrorism and global security protection, contributing to ensuring the security of each country, stability and security in the region and the world.


Alphaliner: Boxship Scrubber Retrofits to Surge Ahead of IMO 2020

The number of containerships taken out for scrubber retrofits is set to increase in the coming months as the date for the implementation of the IMO 2020 rule approaches, Alphaliner said.

Citing its survey of ships identified for scrubber retrofits, Alphaliner said that 16 ships ranging in size from 2,900 TEU to 18,000 TEU are believed to be undergoing retrofit work at various yards in the Far East.

“The number of containerships to be retrofitted this year will increase steadily, with up to 30 ships expected to be out of service each month in the second half of 2019. Most of these retrofits are scheduled to coincide with their regular drydocking dates in order to minimise the vessels’ downtime.”

The rate of scrubber uptake has continued to increase as more containership owners opt to install scrubbers, with the total number of scrubbers ordered so far estimated to have exceeded 700 units. Of this, about 200 units will be fitted on newbuildings, while the remaining 500+ units are expected to be retrofitted on existing ships. Just over 50 ships have completed, or are currently undergoing retrofitting, so far.

Given the large number of ships requiring retrofitting and the limited number of slots available at scrubber retrofit yards, less than half of them will be fitted before the January 1, 2020 sulphur cap implementation date.


COSCO England Collides with Another Ship at Port Kelang

COSCO England, a Neopanamax containership owned by COSCO Shipping Lines, collided with another vessel while berthing at a port in Malaysia.

The incident occurred at Port Kelang on April 21, 2019, according to a statement issued by Westports Malaysia.

As informed, the Hong Kong-flagged COSCO England and another, yet unnamed vessel collided while approaching the wharves of Westports through the South Channel.

“Both vessels were subsequently safely secured at our berths to commence their operations and, at the same time, the relevant authorities also commenced their investigation into the incident,” Westports said on April 22.

“As of now, both vessels are presently conducting relevant surveys and repairs at our berths and it is anticipated that we would be losing 600 meters of wharf space due to this for the next 7 days.”

In a separate update, OOCL said that there were no casualties or OOCL container damage as a result of the incident involving the 13,386 TEU COSCO England.

Westports added that it expects some berthing delays in the next week. However, the incident has not impacted channel and port operations.

“We continue to facilitate the requirement of both vessels to ensure safe sailing from here to their next destination,” Westports continued.


Souces: World Maritime News; American Shipper; Vietnam Customs News; ONE's Website; CMA-CGM's Website