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HMM to Join THE Alliance as a Full Member
South Korean container shipping major Hyundai Merchant Marine (HMM) will join THE Alliance as a full member.
In addition, the members of THE Alliance have also decided to renew their cooperation and to extend the duration of the partnership for ten years until 2030.
The corresponding documents were endorsed in Taipei on June 19, 2019. Subject to the necessary regulatory approvals, the new contract between the four lines will officially start on April 1, 2020.
“HMM is a great fit for THE Alliance as they will provide a number of new and modern vessels, which will help us to deliver better quality and be more efficient – and it will help us also to further reduce our emissions,” Rolf Habben Jansen, CEO of Hapag-Lloyd, said.
HMM has ordered twelve 23,000 TEU vessels which will be delivered in the second quarter of 2020. Additionally, eight 15,000 TEU newbuildings will join HMM’s fleet in the second quarter of 2021.
HMM’s 23,000 TEU newbuildings will be deployed in the Far East – North Europe trade and will further strengthen THE Alliance’s service portfolio.
The addition to the membership will significantly strengthen the competitiveness of THE Alliance towards the other two alliances – especially on the Trans-Pacific trades, according to the parties.
“Being a full member of THE Alliance gives us a lot of pride. We are convinced that we will be successful and generate additional value for our customers, employees and shareholders with combined experience, strategic skills, competitive fleet and strong focus on our clients’ needs,” Jae-hoon Bae, President and CEO of HMM, said.
Hyundai Merchant Marine is currently tied to a cooperation deal with the 2M carriers, Maersk Line and MSC. The three containership majors signed the strategic cooperation agreement in March 2017, which has a length of three years.
Hapag-Lloyd and Ocean Network Express join blockchain-enabled platform TradeLens
Hamburg, 2 July 2019 - Rapid adoption of TradeLens across the global shipping supply chain continues as Hapag-Lloyd and Singapore-based Ocean Network Express (ONE) Pte. Ltd announced they will join the blockchain-enabled digital shipping platform, jointly developed by A.P. Moller - Maersk and IBM.
Hapag-Lloyd and ONE, the world’s fifth and sixth largest carriers respectively, join CMA CGM and MSC Mediterranean Shipping Company, both of which recently announced they are joining TradeLens. With these additions, the scope of the platform now extends to more than half of the world’s ocean container cargo.
“Expanding digital collaboration is critical to the evolution of the container shipping industry,” said Martin Gnass, Managing Director Information Technology at Hapag-Lloyd. “TradeLens has made significant progress in launching a much-needed transformation in the industry, including its partnership model. Now, with five of the world’s six largest carriers committed to the platform, not to mention many other ecosystem participants, we can collectively accelerate that transformation to provide greater trust, transparency and collaboration across supply chains and help promote global trade.”
The addition of these two global carriers will help drive further adoption of TradeLens around the world now that TradeLens customers have access to major carriers in all three leading global vessel sharing alliances on the platform. With an already significant presence in Asia, ONE is further strengthening and expanding its coverage through joint cooperation with TradeLens to help meet the challenging demands of the crucial Asia market.
“We believe this innovative approach based on open standards and open governance can benefit the entire industry while ultimately benefitting our customers who rely on the world’s shipping industry to transport global container volume of more than 120 million TEU across international borders each year,” said Noriaki Yamaga, Managing Director, Corporate & Innovation, Ocean Network Express. “The opportunities to drive greater innovation across the shipping supply chain are enormous and we are excited about the opportunity to provide our leadership and insight to help the platform continue to evolve.”
TradeLens was launched to help modernize the world’s supply chain ecosystems. Many of the processes for transporting and trading goods are costly, in part, due to manual and paper-based systems. Replacing these peer-to-peer and often unreliable information exchanges, the platform enables participants to digitally connect, share information and collaborate across the shipping supply chain ecosystem.
“The addition of more leading carriers to TradeLens will help global supply chain customers expand and explore the benefits of digitization and deliver new opportunities to the increasing number of TradeLens ecosystem participants across the global supply chain. As a neutral industry platform, TradeLens offers supply chain visibility, ease of documentation and the potential of introducing new products on top of the platform. These attributes bring new opportunities for the Maersk transformation towards becoming an end-to-end container logistics company improving the experience and services we offer the customers,” said Vincent Clerc, Chief Commercial Officer, A.P. Moller - Maersk.
Members of TradeLens gain a comprehensive view of their data and can collaborate as cargo moves around the world, helping create a transparent, secured, immutable record of transactions.
The attributes of blockchain technology are ideally suited for large networks of disparate partners. Blockchain establishes a shared, immutable record of all the transactions that take place within a network and enables permissioned parties’ access to secured data in real time.
“Blockchain for the enterprise is solving previously unsolvable problems,” said Bridget van Kralingen, Senior Vice President, Global Industries, Clients, Platforms & Blockchain, IBM. “Through improved trust, simplicity and improved insight into provenance, blockchain solutions such as TradeLens are delivering proven value across business processes for our clients and their ecosystems. Massive new efficiencies in global trade are now possible and we’re seeing similar effects across the food industry, mining, trade finance, banking and other industries where the value of blockchain is more apparent than ever before."
Hapag-Lloyd and ONE will each operate a blockchain node, participate in consensus to validate transactions, host data, and assume a critical role of acting as Trust Anchors, or validators, for the network. Both companies will be represented on the TradeLens Advisory Board, which will include members across the supply chain to advise on standards for neutrality and openness.
About Hapag-Lloyd
With a fleet of 235 modern container ships and a total transport capacity of 1.7 million TEU, Hapag-Lloyd is one of the world's leading liner shipping companies. The company has around 12,800 employees and 398 offices in 128 countries. Hapag-Lloyd has a container capacity of approximately 2.6 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 121 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.
About Ocean Network Express (ONE)
Ocean Network Express (ONE) was incepted on July 7, 2017 following the liner service integrations of Kawasaki Kisen Kaisha (“K” LINE), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK). The new entity functions from its global headquarters in Singapore, supported by regional headquarters in Hong Kong, Singapore, the United Kingdom, the United States and Brazil. ONE is the world’s sixth largest container carrier with a fleet size of approximately 1.55 million TEU. Operating more than 210 vessels, it offers an expeditious and a reliable international network of over 120 services to 120 countries and beyond. ONE is a member of THE Alliance (THEA), a global ocean carrier consortium.
About TradeLens
The TradeLens platform has been jointly developed by Maersk and IBM. TradeLens is an open and neutral industry platform underpinned by blockchain technology and supported by major players across the global shipping industry. The platform promotes the efficient, transparent and secure exchange of information in order to foster greater collaboration and trust across the global supply chain. www.tradelens.com
ZIM enhances cooperation with 2M Alliance, launching two new services
ZIM announces a further expansion of its Strategic Cooperation with the members of the 2M Alliance, Maersk & MSC, to the Asia – US Gulf Trade. The new agreement includes two new strings:
ZGC – ZIM US Gulf Central China Xpress – 10×6500 TEU vessels with the following rotation:
Ningbo, Shanghai, Busan, (Panama Canal Transit), Houston, Mobile, Miami, Freeport, (Panama Canal Transit), Araijan, Busan.
First Sailing: Ningbo, August 18th.*
ZGX – ZIM US Gulf South China Xpress – 10×4500 TEU vessels with the following rotation:
Xiamen, Yantian, Busan, (Panama Canal Transit), Houston, Mobile, Tampa, Manzanillo, (Panama Canal Transit), Balboa, Busan.
First Sailing: Xiamen August 16th.*
The new services, catering for both Central and South China and South Korea, offer significant advantages for customers, including direct connections to major ports in Asia and the US Gulf; best-in-market transit time with reliable dedicated service; Two weekly cutoffs in Houston & Mobile to better serve growing US exports requirements.
Eli Glickman, ZIM President and CEO said:“This is the third phase of our tightening cooperation with the 2M Alliance, now extending to four major trades. I’m confident in our strategy, which gains momentum while our customers reap the benefits!”
Nissim Yochai, ZIM EVP Pacific Trade commented:“We are very pleased to further strengthen our portfolio and enhance our strategic cooperation with the 2M Alliance on this important trade, in which ZIM will be a vessel operator. The two new lines offer better port coverage in the growing US Gulf market, excellent transit time both for Imports and Exports together with our ZIM’s signature premium customer service.”
The new cooperation follows previous agreements in the Asia – US East Coast, operating since September 2018, and on the Asia – Pacific North West and the Asia – Mediterranean Trades, operating since March 2019.
Sumitomo invests in Vietnam port operator
Japanese trading house Sumitomo has invested $37 million in a major port operator to take advantage of Vietnam’s growing logistics demand.
SSJ Consulting Vietnam Llc, a company in which Sumitomo Corp owns a 51 percent stake, has acquired a 10 percent stake in Gemadept Corp, according to the Ho Chi Minh Stock Exchange.
SSJ Consulting was established recently by Sumitomo and two other Japanese companies.
Sumitomo operates three industrial parks near Hanoi and owns a logistics company in the country, while Gemadept operates six ports and handles 1.7 million containers a year.
Stock brokerage MBS said in a recent report that Vietnam would see more demand for logistics services since exports are set to grow by 10 percent a year for the next three to five years.
Last year its ports handled 524.7 million tons of goods, up 19 percent from 2017, according to the Vietnam Maritime Administration.
Vietnam has 1,600 ships with a total capacity of 7.8 million tons, the fourth highest in Southeast Asia, it added.
First Blockchain Container Shipped to Rotterdam
The first paperless, instantly financed and fully door-to-door tracked container made its way from Korea to the warehouse of Samsung SDS in Tilburg via Port of Rotterdam on blockchain-based platform DELIVER.
ABN AMRO, Port of Rotterdam and Samsung SDS demonstrated that blockchain technology enables interoperability, and that integrated container tracking and tracing, required cargo documentation processing and financing can all be done in a trusted, secure and paperless way.
As demonstrated in a Proof of Concept (PoC), a comprehensive supply chain management system with paperless integration of physical, administrative and financial flows is now truly feasible, the Port of Rotterdam explained.
The Proof of Concept has shown that DELIVER can support cross-supply chain end-to-end visibility for multi-modal cargo transport via ocean carrier, truck and inland barge shipping, as well as streamline access to finance.
As logistics service provider, Barge Terminal Tilburg organised and executed the haulage of the sea container from the Port of Rotterdam to the warehouse in Tilburg.
“The first shipments to use the platform gave us a good insight into the possibilities of large-scale implementation. As cargo recipient, we benefitted from real time information and advance availability of digitized cargo documentation. We can re-design our processes more efficiently, enabling us to act based on real-time events and trusted data,” Robert van der Waal, Deputy President of Samsung SDS EU/CIS, DELIVER, said.
With the Proof of Concept phase completed, partners ABN AMRO, Port of Rotterdam and Samsung SDS have signed an extended collaboration agreement for the next phase of the DELIVER project.
The goal of this new phase is to conduct pilot projects with multiple shippers from various industries operating in different trade lanes, with the ultimate objective of reaching an open, independent and global cargo shipping platform.
Container market faces increasing uncertainty: Drewry
The container market is facing “a series of existential fears” that could dent shipping demand in the future, according to Drewry, prompting the consultant to downgrade its growth forecast.
Drewry has highlighted concerns of a slowing global economy stoked by the US-China trade war, escalating geo-political tension in many regions of the world and an industry grappling with challenging new emission regulations.
Shipping demand could be further dented by the regionalisation of manufacturing supply chains and growing momentum behind a low carbon, environment-first campaign that has the potential to fundamentally change global consumption habits.
These reasons have led to Drewry downgrading its forecast for global port throughput growth in 2019 to 3%, from its previous prediction of 3.9%.
“We remain confident that world trade will rebound in 2020, but much will depend on developments outside of carriers’ control,” said Simon Heaney, senior manager, container research at Drewry.
“Further spreading of protectionist policies could stunt growth, particularly if the US aims its tariff target at other trading partners. However, there could be some upside for trade if more manufacturing production is relocated outside of China. The Asian export powerhouse has progressively reduced its requirement for foreign inputs, choking off demand for intermediate goods, so any shift to less self-reliant economies should give trade a bit of a kick-start,” Heaney said.
In such unpredictable times, Drewry believes the risk of temporary supply disruption is heightened.
In the transpacific market, for example, differences of opinion over the strength of the third quarter peak season have led to divergent strategies from carriers. Some lines are placing extra loaders into the trade, indicating they expect a repeat of last year’s cargo rush, while others are more circumspect, announcing blanked sailings to protect load factors and spot freight rates.
“Carriers can be forgiven for not having all of the answers in such times. There will undoubtedly be some errors along the way and the risk of temporary supply issues has undoubtedly been raised, either from too many cancelled sailings or misplaced capacity transfers between trades,” Heaney said.
Hapag-Lloyd orders 13,420 new reefers
Hapag-Lloyd has ordered 13,420 new refrigerated containers, bringing its reefer fleet to more than 100,000 containers with delivery set for November 2019 in time for reefer season when the harvest begins in southern hemisphere countries.
Production of 970 20-ft containers and 12,450 40-ft containers is already scheduled to commence in July.
The carrier expects to primarily transport fruits and vegetables – such as blueberries, cherries and avocados from Chile, Peru and elsewhere – but also fish and meat that will be making their way to consumers in these containers.
Hapag-Lloyd reefers are also used worldwide to transport goods that are sensitive to high temperatures, such as pharmaceuticals and blood plasma.
Niklas Ohling, senior director of container steering at Hapag-Lloyd, said: “With this new order, we will be expanding our transport capacities for our customers.
“They will now have at their disposal over 100,000 state-of-the-art refrigerated containers with a total capacity of 210,000 teu, some of which will be equipped with the latest Controlled Atmosphere technology, which slows the ripening process during transport, thereby extending the shelf life of fruit and vegetables.”
The production of the reefer containers will also be the starting signal for the fleet-wide equipping of reefers with the latest Internet of Things (IoT) monitoring technology.
The resulting customer products will be marketed under the name Hapag-Lloyd LIVE. Its features will gradually be made available to customers as the installation of the equipment proceeds will offer real-time GPS positioning, information on the temperature inside the container, and systems for notifications and alarm management.
Samsung Heavy delivers largest container ship
Samsung Heavy Industries has delivered the world’s largest container ship to its Swiss client, the Mediterranean Shipping Company (MSC), the local shipbuilder said Monday.
Named the MSC Gulsun, the ship can carry up to 23,756 twenty-foot equivalent units (TEUs) at once.
The ship measures 400 meters (1,312 feet) in length, 61.5 meters in width and 33.2 meters in height - which Samsung Heavy describes as the “largest container ship in the world.” The previous largest container ship, also made by Samsung Heavy Industries, had a capacity of 21,413 TEUs and was delivered to Hong Kong-based shipper OOCL in 2017.
After completion, the MSC Gulsun embarked from Samsung Heavy’s shipyard in Geoje, South Gyeongsang, last Saturday, three weeks ahead of schedule. This was the first container ship delivered from MSC’s order for six 23,000 TEUs, placed in September 2017. The remaining five will be delivered by February 2020.
Apart from its massive size, the ship also comes equipped with Samsung Heavy’s latest technology like the “Svessel” smart ship system, which can analyze navigation data to suggest the most cost-efficient and safest sea route. Considering stricter regulations to come for sulfur oxide emissions next year, the ship is also equipped with a scrubber, a system that removes particulate matters from exhaust emissions after fuel combustion, and was structurally designed to be easily adapted to an LNG ship in the future.
Samsung Heavy has been pushing efforts to maximize the size of container ships starting with the development of a 6,200-TEU container ship in 1990, when 5,000-TEU ships were the norm in the industry. The shipbuilder went on to produce increasingly large vessels, hitting the 20,000-TEU milestone in 2015.
Promoting cooperation between Vietnam-UK Customs
VCN- On the afternoon of July 5, 2019, at the headquarters of the HM Revenue and Customs (HMRC), London, United Kingdom, Mr. Jim Harra, Second Permanent Secretary, Tax Assurance Commissioner, Deputy Chief Executive of HMRChad a working session with Minister of Finance Dinh Tien Dung and the General Department of Vietnam Customs, Nguyen Van Can to promote Customs cooperation between the two countries.
At the working session, Minister of Finance Dinh Tien Dung thanked Mr. Jim Harra for working with the delegation of the Ministry of Finance and the General Department of Vietnam Customs.
Minister Dinh Tien Dung appreciated the cooperation between the two Customs authorities in sharing information, supporting information verification and investigation to prevent customs offences.
In order to establish the legal framework for long-term and sustainable cooperation between the two Customs authorities, Dung asked the two Customs agencies to consider negotiating and signing the agreement on mutual administrative support at the Government level. The negotiation and signing of this agreement is also consistent with the strategic partnership and cooperation between Vietnam and the UK.
Dung also proposed the UK Government support in training human resources and sharing experiences in managing Customs duties and cross-border e-commerce, deploying National Single Window and applying advanced techniques and modern customs procedures.
Jim HarraappreciatedVietnam’s rapid development and the openapproachand said that trade facilitation is also one of the goals of UK Customs,in which cooperation between Vietnam and UK Customs will be a new directionto achieve this goal.
The HMRC is a Customs authority that has a professional force and experience in preventing tax fraud to ensure the State budget revenue and specializing in customs and tax operation. However, HMRC continues to modernize customs to meet the developments of trade and transformation.
For the proposal of Dung on supporting Vietnam Customs in tax administration,Jim Harra said HMRC is willing to cooperate with Vietnam, however, it is necessary to understand the specific needs of Vietnam to provide appropriate support.
Mr. Jim Harra, Second Permanent Secretary, Tax Assurance Commissioner, Deputy Chief Executive of HMRC and also the head of HMRC in negotiating with the EU on Brexit.
Hapag-Lloyd joining CMA CGM and APL in introducing risk surcharge for Middle East Gulf
Hapag-Lloyd is joining CMA CGM and APL in charging a war risk surcharge for cargo to and from ports in the Middle East Gulf.
Last month’s attacks on two tankers in the Gulf of Oman have resulted in soaring insurance premiums for vessels transiting the Straits of Hormuz and as a result container lines have started to add box surcharges to shippers.
Hapag-Lloyd is introducing a $42 per teu Vessel Risk Surcharge from 15 July for services in the Middle East Gulf region due to increased operating costs.
The surcharge covers cargo from/to and via Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia Eastern Province Ports Dammam & Jubail and the UAE.
For China the surcharge will be effective from 1 August, and for US/Canada cargo covered by the Federal Maritime Commission (FMC) contracts the date of implantation is yet to be announced.
CMA CGM and sister line APL have announced a $36 per teu surcharge to and from Oman, the UAE, Qatar, Bahrein, Saudi Arabia (Dammam + Jubail), Kuwait and Iraq, and all destinations from 5 July, excluding the US and China which will be effective from 1 August.
Source: Seatrade Maritime, Sea News, World Maritime News, Hapag-lloyd.com, Maersk.com
