Maritime News Update Week 41/2019

Panama Canal posts 6.2% increase to hit record tonnage in FY 2019 

Panama Canal ended the 2019 fiscal year (FY19) with a record tonnage of 469m Panama Canal tonnes (PC/UMS), a 6.2% increase compared to FY2018.

The volume exceeded the 450.7m PC/UMS tonnes projected for FY2019, as well as the record tonnage of 442m PC/UMS tonnes registered in the previous fiscal year.

During FY19, transits for the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) segments rose by 37.6% and 6.9% respectively, representing the largest gain across all segments. Additional segments with significant transit increases included crude product tankers with a 5.6 % increase and vehicle carrier/ro-ro with a 5.5% increase, compared to 2018.

In terms of tonnage, the container segment continued to dominate with 164.87m PC/UMS tonnes during FY 2019, of which 126.2m PC/UMS tonnes transited through the neo-panamax Locks. Leading segments also include bulk carriers at 76.5m PC/UMS tonnes, vehicle carrier ro-ro at 53.1m PC/UMS tonnes, chemical tankers at 44.3m PC/UMS tonnes, LNG vessels at 43m PC/UMS tonnes, LPG vessels at 37.8m PC/UMS tonnes, crude product tankers at 22.6m PC/UMS tonnes and passenger’s vessels at 9.9m PC/UMS tonnes.

The main routes using the Panama Canal by cargo tonnage in FY19 include between the U.S. East Coast and Asia, followed by the US East Coast and the West Coast of South America, Europe and the West Coast of South America, the US East Coast and the West Coast of Central America, and the US inter-coastal route. The main users of the waterway during FY19 were the United States, China, Japan, Chile and Mexico.

Samsung Heavy to Build Six Evergreen Boxships Giants 

South Korea’s Samsung Heavy Industries has signed shipbuilding deals for Evergreen’s latest ultra-large containerships, valued at a total of USD 920 million.

The order was placed for the construction of six of the world’s largest container ships, with a capacity of 23,000 TEUs, by May 2022.

The giants will feature a length of 400 meters and a width of 61.5 meters. They will be capable of transporting 23,764 twenty-foot containers at once.

The order exceeds Samsung Heavy’s previous ultra-large container ship, that can transport 23,756 containers, delivered to Mediterranean Shipping Company (MSC) in July 2019.

Samsung Heavy said the vessels will be equipped with its latest smart ship technologies for low fuel consumption and safe sailing.

“The demand for ultra-large containerships is expected to continue as global ship owners have reduced cost through an economy of scale,” a SHI official said, adding that the shipbuilder is therefore expected to “keep leading the ultra-large boxships market.”

The latest contract has pushed Samsung Heavy’s orderbook to USD 5.1 billion so far this year. It now includes 35 vessels, meeting 65 percent of the shipbuilder’s annual target of USD 7.8 billion.

In September 2019, the Taiwanese shipping major Evergreen confirmed its plans to build a total of ten 23,000 TEU containerships at three shipyards.

Apart from the units ordered from SHI, the company said that China’s Jiangnan Shipyard and Hudong Zhonghua Shipbuilding would construct another two ships each. The value of the entire order stands between USD 1.4 billion and USD 1.6 billion.

Europe’s largest port now ready for larger ships 

The project to deepen the Nieuwe Waterweg waterway and the Botlek area at the Port of Rotterdam has been officially completed, allowing Europe’s largest port to accommodate ever-larger ocean-going vessels.

One of the busiest waterways in the Netherlands has been deepened by a meter and a half across a distance of 25 kilometers.

The EUR 70 million (USD 76.9 million) undertaking was kicked off in March 2018 with the aim of allowing vessels with a depth of 15 meters to access Rotterdam port’s Botlek area.

“Big, bigger, biggest. We’re talking here about the Aframax, Suezmax and Panamax, mammoth vessels that sail cheaper, more sustainably and safer,” Cora van Nieuwenhuizen, Dutch Infrastructure & Water Management Minister, commented.

“In the port sector, big is not only a matter of honor, but it’s also a condition for survival in today’s cut-throat competitive world. That is certainly true for the port of Rotterdam.” 

“Port Authority investments are eliciting a wide range of port business sector investments. This confirms our aim to continue to strengthen existing port industry, while also working hard to develop entirely new activities, for instance by investing in the energy transition and digitization,” Ronald Paul, the Port of Rotterdam Authority’s Chief Operating Officer, added.

Traxens: First Standards for Smart Container Data Exchange Developed

French provider of container tracking solutions Traxens has led the development of the first standards for smart container data exchange published by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT).

“We are proud to pave the way to better data integration and advanced smart container services by bringing the shipping industry together around a common standard,” Mathieu Friedberg, Senior Vice President – Commercial & Agencies Network, CMA CGM Group, said.

“Such standardized solutions are key to advance digitalization and to seize all the opportunities offered by smart containers.”

Although many smart containers are already in use, there are no global standards in place to capture and communicate consistently and multimodally the array of data they generate.

Business Requirements Specifications (BRS) delivers internationally standardized messaging to facilitate the use of smart container data.

Initiated in October 2017, the ‘Smart Containers BRS’ project aims to provide clear global standards for the exchange of data to ensure interoperability and easy integration within different systems. Data will be generated once and shared between multiple stakeholders, platforms and systems, improving data exchange, automated workflow and alert generation, according to Traxens.

As explained, the new standards will be the basis for API development, bringing technology into every aspect of the supply chain and providing innovative tools.

“This technology can be combined with other innovations such as blockchain, big data or data pipelines to provide even more uses in the trading community. In all of these cases, though, we see that creating clear, unambiguous message exchange standards will unlock the further potential of enhanced data,” Jacques Delort, managing director of Traxens, commented.

“Thanks to smart containers standardized messages, the computer representation of the supply chain will become synchronized with the physical world, increasing the speed and accuracy of decision-making, the automation as part of transport and logistics execution and the … collaboration between stakeholders,” Hanane Becha, innovation & standards senior manager at Traxens, said.

“Enhanced data will improve visibility and predictability for stakeholders as well as for regulatory agencies who need detailed information on consignments before they arrive at the border.”

Earlier this year, Danish shipping major Maersk decided to join its counterparts CMA CGM and the Mediterranean Shipping Company (MSC) as a key shareholder and customer of Traxens.

The company agreed in May to invest capital in Traxens, order up to 50,000 Trazens devices and have similar shareholder rights as the two other abovementioned shipping companies.

Standards for Smart Container Data Exchange Published

France-based company Traxens has led the development of the first standards for smart container data exchange now published by the United Nations Centre for Trade Facilitation and Electronic Business. 

Although many smart containers are already in use, there are no global standards in place to capture and communicate consistently and multi-modally the array of data they generate. Initiated in October 2017 under the leadership of Hanane Becha, innovation & standards senior manager at Traxens, the project aims to provide clear global standards for the exchange of data to ensure interoperability and easy integration within different systems. Data will be generated once and shared between multiple stakeholders, platforms and systems; improving data exchange, automated workflow and alert generation. The new standards will be the basis for API development. 

Smart container technology can be combined with other innovations such as blockchain, big data or data pipelines. “Thanks to smart containers standardized messages, the computer representation of the supply chain will become synchronized with the physical world, increasing the speed and accuracy of decision-making, the automation as part of transport and logistics execution and the seamless collaboration between stakeholders. Enhanced data will improve visibility and predictability for stakeholders as well as for regulatory agencies who need detailed information on consignments before they arrive at the border,” said Hanane Becha, innovation & standards senior manager at Traxens.

Traxens' Internet-of-Big-Things technology provides comprehensive, real-time information for managing logistics assets anywhere in the world. The company's solution received the Frost & Sullivan’s Technology Leadership Award in 2019. Based on its recent analysis of the European smart container solutions market for ocean freight, Frost & Sullivan recognized Traxens because it enables a data sharing economy and offers ocean freight industry participants, such as shipping lines, freight forwarders, cargo owners, cross-border agencies and port authorities, with advanced cargo monitoring. It also supports dangerous goods and asset management with a focus on real-time alerts, idle cargo and process planning.

Traxens offers its cloud-based services but also its own telematics devices to enable seamless integration with smart devices. Traxens devices use a patented IoT LowPower mesh network to increase visibility and optimize cellular or satellite network access. Traxens’ IoT platform uses a global positioning system and cellular networks to offer full global coverage and transfer data from even the most remote places. 

Traxens has already achieved mass deployment of its digitalized containers, supported by CMA CGM and Mediterranean Shipping Company. By the end of 2019/early 2020, it is expected to have equipped approximately over 100,000 smart containers worldwide.

Hapag-Lloyd Ships Will Not Use Arctic Sea Routes

German shipping major Hapag-Lloyd will not use the Arctic shipping passages which are now open as the sea ice in the Arctic is melting.

“Hapag-Lloyd does not use the Northwest Passage or the Northeast Passage as shipping routes right now, nor are there any plans to do so in the future,” Jörg Erdmann, Senior Director Sustainability at Hapag-Lloyd, pointed out.

With its stance on the possible route through the Arctic, the German carrier joins French container shipping company CMA CGM. In August, CMA CGM said that none of its 500 vessels would use the Northern Sea Route along Siberia as it would represent “a significant danger to the unique natural ecosystems”.

“The particles produced by the combustion of carbon-based fossils and fuels contribute to global warming, which can in turn harm our ecosystems. As long as there are no guarantees that these passages can be navigated without negatively impacting the environment, using them is out of the question for Hapag-Lloyd, as well,” Erdmann explained.

According to Erdmann, the significance of the above sea passages for container shipping is still limited as the window of time during which ships can navigate through the Arctic region continues to be relatively narrow. At present, it would be difficult to use these routes regularly.

“What’s more, since container ships operate in liner services, we must take a long and hard look at whether the time one might save from the shorter distances offered by using the Northwest Passage and Northeast Passage would result in genuine economic benefits, especially when taking into account the draughts of larger ships or the fact that ships would likely need to have the appropriate ice classes,” he continued.

“Thus, all things considered, the desirability of using these passages much be very carefully weighed from both the ecological and economic perspectives.”

With shipping routes across the Arctic being significantly shorter than the traditional ones, more and more shipping companies are investing in ice class vessels that are able to operate without icebreaking assistance.

At the beginning of September 2019, the first working meeting of the NSR Public Council was held at the 5th Eastern Economic Forum (EEF) in Vladivostok. During the meeting, Rosatom director revealed that about 80 million tons of goods is planned to be shipped annually via the Northern Sea Route by 2024.

No Damage to Cargo Aboard ONE’s Ship after Collision in Greece

No damage was reported to the cargo aboard the 14,000 TEU containership ONE Blue Jay following a September 26 collision in Greece.

Shipping company Ocean Network Express (ONE), the vessel’s charterer, confirmed that ONE Blue Jay has since departed the Port of Perama on September 27 and is deployed in MD2 service.

The ultra large container vessel (ULCV) “came into contact” with a chemical tanker in the vicinity of Port of Perama, Piraeus, Greece, at around 1409 hours local time, ONE earlier said.

As World Maritime News earlier reported, the vessel crashed into the starboard side of the 6,285dwt tanker Gunece, which was berthed at the time. The tanker reportedly suffered major damages while two of the 13 crew aboard the unit were injured.

ONE noted that the 23 crew members of the 2016-built ONE Blue Jay were safe, adding that there were no reports of pollution from the vessel.

MSC LAUNCHES TWO NEW SERVICES FOR INTRA-ASIA NETWORK

MSC Mediterranean Shipping Company continues to expand and enhance its intra-Asia network with two new services, beginning mid-October 2019.

We are bringing new capacity into the market at a time when customers are showing increasing demand for new services to move cargo between key locations in Asia.

The Orchid service and Lang Co Express service will bring six vessels into our intra-Asia network, offering comprehensive port coverage and competitive transit times between Greater China, Vietnam, Singapore and Tanjung Pelepas.

Our new services will link seamlessly to our other intra-Asia services and to our global ocean liner network, as well as to our overland and barge services within southeast Asia.

The first voyages on the Orchid service will be:

MSC MANU – voyage number: HD 939R
ETD Hong Kong 8 October 

BOMAR ROSSI – voyage number HD 941R
ETD Singapore 12 October

The first voyage on the Lang Co Express will be:

SPIRIT OF KOLKATA – voyage number: HZ941A
ETD Singapore 12 October

The full rotations will be:

Orchid

Qingdao – Fuzhou – Shantou – Hong Kong – Shekou – Haiphong – Singapore – Tanjung Pelepas – Haiphong – Qinzhou – Yantian – Hong Kong – Qingdao

Lang Co Express

Singapore – Tanjung Pelepas – Da-Nang – Hong Kong – Qui Nhon – Vung Tau (SSIT) – Singapore

(Source: World maritime news; Seatrade maritime; American Shipper)