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SAL Heavy Lift Confirms Fleet Additions for 2020

SAL

SAL Heavy Lift Confirms Fleet Additions for 2020

Three new vessels will make their debut for SAL Heavy Lift beginning in 2020. The fleet additions boast an 800t lifting capacity and will ultimately support the Harren & Partner Group member’s clients along the main trade lanes between Europe and the Far East in addition to the Africa service, all while furthering SAL’s position in heavy lift and project cargo sectors.

“The Type 171 vessels come with certain technical features such as ice class E3, equivalent to Finnish/Swedish 1A – amongst the highest in the industry,” said Karsten Behrens, Director, SAL Engineering. “The vessels also have very high crane pedestals which provide a much greater lifting height, in fact amongst the best in our fleet. In combination with the strong hydraulic hatch covers and large box-shaped holds with multiple tween deck configurations, it gives us an array of options when taking breakbulk cargo onboard.”

These vessels were confirmed in the announcement to be of the P1 Type design with an impressive amount of lifting capabilities (up to 800 tons) thanks to two 400t SWL cranes and one 120t SWL crane. Names have also been officially announced for the fleet additions: “MV Hanna”, “MV Klara” and “MV Lisa.” These names were selected after the family members of former owner and current technical ship manager, Heino Winter Group.

“I am very happy that we have been able to add these vessels to our heavy lift fleet,” added Dr. Martin Harren, CEO, SAL Heavy Lift. “This way SAL will be able to service clients who may at times look for ships that can take larger volumes of cargo in combination with heavy lift items. With SAL Engineering providing the engineering solutions and our SAL crew manning the vessels, we continue to offer our well-known SAL quality and know-how, but on a larger scale – something that I am sure clients, both new and existing, will come to appreciate.”

Image provided by SAL Heavy Lift

ocean

A Tough Year on the Water Hasn’t Dampened Innovation for these Ocean Carriers

To say that 2019 has been challenging for ocean carriers would be an understatement. The year began with the National Retail Federation forecasting a decline in year-over-year growth, echoing World Bank chatter of a slowing global economy.

And don’t forget the tariff wars between the U.S. and China (heck, the U.S. and just about anyone). Managing capacity on ships has also been an issue, and then there is the potential biggest bogeyman of all: the International Maritime Organization’s low-sulfur fuel mandate taking effect Jan. 1, 2020.

Sure, we could dwell on the gloom and doom, but that would not be very Global Trade magazine of us, now would it? We here in our silky ivory tower like to spotlight the positive, which we reveal with these ocean shippers we love.

MSC

Mediterranean Shipping Co. this year watched the world’s largest container ship, the MSC Gülsün, complete its maiden voyage from northern China to Europe. With a width of 197 feet and a length of 1,312 feet (!), the Gülsün was built by Samsung Heavy Industries at the Geoje shipyard in South Korea. It can carry up to 23,756 TEUs shipping containers on one haul. That capacity can include 2,000 refrigerated containers for shipping food, beverages, pharmaceuticals or any other chilled and frozen cargoes. That’s a lot of snow cones!

MOL

Mitsui O.S.K. Lines sees MSC Gülsün and raises you the MOL Triumph, which achieved a new world load record this year. Departing Singapore for Northern Europe on THE Alliance’s FE2 service with a cargo of 19,190 TEU. That surpassed the previous load record achieved in August 2018, when Mumbai Maersk sailed from Tanjung Pelepas to Rotterdam with 19,038 TEU onboard. Yes, you are correct, that’s a pretty slim margin of victory, and analysts suspect the MOL Triumph record won’t last long given the 23,000 TEU ships being introduced.

HYUNDAI MERCHANT MARINE 

Speaking of THE Alliance, current members Hapag-Lloyd, ONE and Yang Ming will be joined in April 2020 by Hyundai Merchant Marine (HMM). The South Korean carrier recently signed an agreement to join THE Alliance and then passed the pen to the founding members, who extended the duration of their collaboration until 2030. “HMM is a great fit for THE Alliance as it will provide a number of new and modern vessels, which will help us to deliver better quality and be more efficient,” said Rolf Habben Jansen, Hapag-Lloyd’s chief executive. 

HAPAG-LLOYD

Oh, speaking of the fifth-largest container shipping company in the world, Hapag-Lloyd is piloting an online insurance product as part of a digital offering to try to overcome the widespread practice of shippers relying on the limited cover provided under the terms of carriers’ bills of lading. While Hapag-Lloyd says it takes the utmost care in transporting cargo, company officials acknowledge things can and have gone wrong. Thus, the introduction of Quick Cargo Insurance, which is underwritten by industrial insurer Chubb in Germany and is limited to containerized exports from that country, France and the Netherlands. However, the carrier says it plans to expand the offer.  

MAERSK

To navigate new environmental regulations, A.P. Moller-Maersk A/S is considering going old school. We mean really old school by using a modern version of the old-fashioned sail to help power its ships. Currently being tested on one of Maersk’s giant tankers, the sails look less like the flapping silk you know from Johnny Depp movies and Jerry Seinfeld’s puffy shirt and more like huge marble columns. But they are nothing to laugh at as two 10-story-tall cylinders can harness enough wind to replace 20 percent of the ship’s fossil fuels, according to their maker, Norsepower Oy Ltd. 

MOL, THE SEQUEL

While we’re getting all green up in here, it’s worth also pointing out that Mitsui O.S.K. Lines Ltd. This year joined three other Japanese companies— Asahi Tanker Co., Exeno Yamamizu Corp., and Mitsubishi Corp.—in teaming up to build the world’s first zero-emission tanker by mid-2021. Their joint venture e5 Lab Inc. will power the vessel with large-capacity batteries and operate in Tokyo Bay, according to a statement the foursome released on Aug. 6. Thanks to the onslaught of legislation to improve environmental performance, other companies are also looking to battery power. Norway’s Kongsberg Gruppen is developing an electric container vessel, and Rolls-Royce Holdings last year that started offering battery-powered ship engines.

AMAZON

No, this is not a leftover strand from a different story in this magazine about moving packages on the ground. “Quietly and below the radar,” USA Today recently reported, “Amazon has been ramping up its ocean shipping service, sending close to 4.7 million cartons of consumers goods from China to the United States over the past year, records show.” While other ocean carrier leaders prepare for the bald head of Jeff Bezos, his move really should be no surprise given Amazon’s attempt to control as much of its transportation network as possible. (See my September-October issue story “Air War: Fast, Free Shipping has UPS, FedEx and Amazon Scrambling in the Air”). Of Amazon now floating into the sea, Steve Ferreira, CEO of Ocean Audit, a company that utilizes data and machine learning to find ocean freight refunds for the Fortune 500, told USA Today: “This makes them the only e-commerce company that is able to do the whole transaction from end-to-end. Amazon now has a closed ecosystem.” 

intermodal

HOW TO BE AN INTERMODAL SHIPPER OF CHOICE

Fluctuating capacity and freight rates along with increased focus on efficiency and sustainability have led to substantial growth in the intermodal market in recent years. As more companies now compete for intermodal capacity at competitive rates, it is important for shippers to set themselves apart from the competition by being attractive partners to their intermodal carriers. 

By being a “shipper of choice” and implementing flexible and efficient practices, companies can build collaborative, mutually beneficial relationships with their intermodal carriers. This better positions them to secure capacity at stable, competitive pricing and enhance service levels and improve overall performance. 

Why It’s Important to be an “Intermodal Shipper of Choice” 

While being a “shipper of choice” has been a hot topic in recent years, the focus has primarily been placed on over-the-road shipping. And while there are many similarities between the two modes, there are also some nuances that must be considered to be an “intermodal shipper of choice” in particular. 

First, because loads are tied to the equipment instead of to an individual driver, there must be an equal (if not greater) focus on equipment management and efficiency in addition to driver efficiency. By placing equal focus on implementing “carrier-friendly” tactics for intermodal freight, shippers can strengthen carrier relationships and better control costs. This, in turn, ensures enhanced intermodal service performance–increasing the ROI of utilizing the mode.

Here are some strategies organizations can use to become an intermodal shipper of choice:

Engage in annual renewals with incumbent carriers rather than annual RFPs. While annual RFPs can yield savings, they also increase uncertainty and risk for both shippers and carriers. By focusing on long-term commitments with incumbent carriers through annual renewals, shippers and their core carriers can continuously foster a relationship of mutual trust and ongoing success. Through this relationship, the carrier and its drivers become intimately familiar with the shipper’s network, freight and business, and the shipper gets to know the carrier’s operations and the drivers responsible for picking up and delivering their loads.

Accurately forecast freight volumes. The ability to forecast freight volumes and seasonal swings allows shippers and carriers to proactively plan (and reposition) equipment and drivers to provide adequate capacity. Sharing this information not only helps provide more consistent service but can be beneficial for both sides on an ongoing basis. 

Consistent freight volumes. Having consistent volume spread out throughout the week, month or year makes appointment scheduling and equipment planning easier for the carrier. And if shippers do ship heavier at certain times, it is important to set and manage expectations with carriers. 

Equipment pool requirements in line with volume. Pool requirements that are in line with volume allow shippers to turn boxes on a regular basis and keep loads moving at a consistent pace. This helps maximize equipment utilization while minimizing equipment costs.

Inbound and outbound volume. Setting consistent inbound and outbound volume out of facilities allows drivers to pick up loads immediately following a drop-off. This reduces empty miles and improves both driver and equipment utilization. These efficiencies will ultimately result in better rates from carriers. 

Utilize drop and hook freight capabilities. Drivers want to be able to get in and out of a facility in an efficient manner, at any time. Drop and hook freight capabilities create load flexibility, reducing congestion in the yard and maximizing driver utilization by minimizing detention time. 

Flexible pick-up and delivery appointments. For customers that require pick-up and delivery appointments, it is important to make them as flexible as possible. This drives further efficiencies for both the carrier and the shipper.

Reasonable payment terms. Shippers should have timely freight payment terms (often 30 days or fewer) and keep to those terms. It is also important to have a system in place to quickly resolve any discrepancies.

Provide driver amenities at the facilities. By providing driver amenities at their facilities (such as bathrooms or waiting lounges), shippers help make the pick-up and delivery process easier and more comfortable. These simple comforts show that the shipper views the carrier (and its drivers) as a valuable part of their operations versus a commodity. 

Utilize facilities in close proximity to intermodal terminals. Facilities that are located near intermodal rail terminals allow rail to be a more competitive option for a shipper. While this is not always possible, shippers looking to build new facilities should consider placing them near rail ramps in order to take advantage of more intermodal opportunities. 

Intermodal Presents Significant Opportunity for Shippers

Intermodal continues to be a cost-effective, efficient and sustainable way to move freight and should be a key piece of any strategic modal mix. And as more shippers compete for capacity and competitive rates, it’s important for shippers to best position themselves to be attractive partners to intermodal carriers. This will allow them to better take advantage of intermodal while helping to control costs and enhance service performance. 

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Doug Punzel is president of Celtic Intermodal, Transplace’s intermodal business unit. David Marsh serves as Celtic Intermodal’s chief operating officer and helps oversee all daily operations. 

HKSPA

World’s Largest Container Vessels Arrive at HKSPA Terminal

Hong Kong Seaport Alliance announced the successful arrival of the OOCL Hong Kong and ten additional OOCL and Cosco Shipping Lines Ltd. mega vessels at the HKSPA Terminal 8 facility this week, just six months following the alliance’s formation. OOCL Hong Kong- known as one of the largest container vessels in the world, deployed along with the other mega vessels at the end of June for the OCEAN Alliance’s Asia-North Europe Service, which included Hong Kong as a port of call.

Hong Kong, despite being small in size, has been in the league of the world’s top ten ports for the past 30 years or so. This is an enviable achievement not easy to accomplish. Credits must go to our port operators for the provision of highly efficient and professional services to the international shipping community,” said Angela Lee, Commissioner for Maritime and Port Development and Deputy Secretary for Transport and Housing (Transport).

“Coupled with our sound fundamentals built over the years, including our free port status, strong international connectivity, trusted common law system, and a level playing field for business, I am confident that our port would be able to further leverage on new opportunities presented by the Greater Bay Area Development, the Belt and Road Initiative and the New Land-Sea Corridor, and continue to thrive as a regional transshipment hub,” Lee added.

The massive OOCL Hong Kong container vessel boasts 21,413 TEU capacity and holds the title as the first in the world to exceed the 21,000 TEU capacity threshold. There are currently only 12 container vessels that can boast capacity of this size, and eight of them are among the mega vessels deployed during the OCEAN Alliance’s Asia-North Europe Service, including Cosco Shipping’s GALAXY. 

“As a Hong Kong company deeply rooted in the city, OOCL HONG KONG’s maiden call has a very special place in many of our hearts, said Andy Tung, Co-Chief Executive Officer of OOCL. “Containerships like the OOCL HONG KONG are important ambassadors of world trade and as a home carrier, we are very proud to have this vessel carry the name of Hong Kong, flying the flag of Hong Kong, and continue serving the industries of Hong Kong. OOCL is very blessed to call Hong Kong our home and being an integral part of the city’s vibrant business community over the last 50 years, providing a vital link to global trade. We like to thank the HKSPA for the wonderful hospitality and celebrating this milestone event together with us.” 

“We are proud of being ranked as the World’s Best Transshipment Port by COSCO SHIPPING this year,” said Hanliang Zhu, Managing Director of the Asia Container Terminals Limited (ACT) during the welcoming reception. “We will keep on working closely with the carriers as well as the shippers and other logistics providers to maintain Hong Kong as a reliable transshipment hub in the region.”