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SHIPPERS ON INTERMODAL: CHANGES NEEDED FOR GROWTH OPPORTUNITIES

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Archives, Global Trade Daily, Ocean Carriers, Stories, Trucking

SHIPPERS ON INTERMODAL: CHANGES NEEDED FOR GROWTH OPPORTUNITIES

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The intermodal transportation sector is experiencing an interesting shift as of lately. The combination of disruptions from the pandemic while others are caught playing catch up to adequately refill warehouses and distribution centers has posed new questions for a variety of sector leaders. For the intermodal sector, however, a new question is present in the minds of leaders and players in this arena: What is needed to leverage opportunities for growth post-pandemic and moving forward with the “new normal” we keep hearing about?

The answer to this question is not found within one single solution or technology offering. In fact, there is no single answer at all. The perfect mix of artificial intelligence, increasing capacity and creating more visibility and agility within operations will ultimately be the key to reviving and maintenance.

The COVID-19 pandemic has challenged all parts of the supply chain, from operations and compliance to technology integration, and although many players have successfully restarted operations, it is important to consider the ways transportation has been forever impacted to better prepare for future disruptions. But in what ways has the pandemic impacted the intermodal industry? Doug Punzel, president of Celtic Intermodal, explains exactly how the pandemic has impacted the sector and how methods are shifting to accommodate continued movement.

“As COVID-19 continues to impact the supply chain and logistics across industries, some areas have limited access to trucks,” explains Punzel. “The truck shortage has increased demand for intermodal transportation. In fact, beginning the third week in April, we have begun to see surges in volume–especially in California, Texas and Mexico. We are seeing shortages of box and train capacity in some areas, as shippers with expanding needs are caught up and filling warehouses. At the same time, many markets in the United States have plenty of box, drayage and train capacity.”

Utilizing a robust technology toolbox further supports the industry, although some sectors are slower to adapt than their partners. The key to remember here is not how much tech is being used, but what challenges are solved through their implementation and how they are customizable for specific customer needs.

“AI, machine learning and other software advancements allow real-time visibility of end-to-end supply chain operations to keep a pulse on the business,” Punzel says. “The ultimate goal is to reduce risks, capture more competitive freight pricing, and identify optimal routes for the greatest cost savings.

“With today’s volatile current events that threaten to disrupt the supply chain on a regular basis, flexibility is vital for business success. For many shippers, intermodal transportation has incredible potential to be a reliable and affordable component of logistics strategy. Technology innovations are supporting real-time visibility, mitigating risks, and optimizing transportation costs.”

Celtic Intermodal, a Transplace company, offers a unique solutions portfolio for customers seeking the perfect solutions, offering flexibility and visibility while keeping an eye on the unexpected. Celtic focuses on what the customer needs are throughout the process while identifying areas of improvement both operationally and financially. The company offers customers Strategic Capacity Solutions, Door-to-Door Intermodal, 53-foot Containers, 40-foot Containers, Cross-border Intermodal and International Drayage in addition to managing more than 20,000 40-foot container shipments each year. Celtic’s robust network of steamship lines and dray provider partners further support consistent capacity to meet the needs of their global customer network.

“We implement dynamic solutions to our customers’ transportation needs by providing exceptional customer services, capacity, reliability and expertise,” Punzel says. “With access to over 70,000 containers every day and strong relationships with major rail providers, including Union Pacific, Norfolk Southern, CSX, BNSF, CN, CP, and KCS/KCSM, our dedicated account team focuses on our customers–providing the best combination of rates and routes.

“Our cross-border intermodal services bypass border-crossing issues and congestion,” he continues. “We enhance the security of customers’ shipments while reducing overall transportation spend with our door-to-door intermodal services across Canada, Mexico and the U.S.”

The unique relationship Celtic has with its Class 1 Railways network offers customers competitive options in transportation that others cannot. Punzel points out two specific pros to working with Celtic that keep shipments moving and customers satisfied.

“We are strategically located near our customers and where rail ramps are located,” he says. “We can be more effective with short-haul moves within five to 800 miles because we are closer to rail ramps. And in case of derailment or tunnel outage or another type of outage, we leverage our relationships to remain in close communications with Class 1 Railways and be more collaborative to support our customers’ needs. We conduct network analysis to help customers identify modal conversions and scale up or down with volume. With well-integrated intermodal transportation, overall shipping costs are greatly reduced.”

Punzel goes on to explain that the simplicity of scheduling is a significant factor to promoting growth for the intermodal sector. It goes directly back to predictability and the constant need for progression within the industry. The relationships developed and utilized by Celtic provides added security for customers in case of the unpredictable. This is especially important in today’s “new normal,” where measures in safety and regulation seem to change without much notice. The supply chain does not have time to stop and companies such as Celtic present solutions for issues before they happen.

“Customers with over-the-road freight are open to conversion to intermodal only if the schedule is predictable,” Punzel explains. “Over the past three years, all railroads have improved service by maintaining reliable, scheduled, on-time performance, which is key to growth.”

So, what exactly needs to occur for progression and growth within the intermodal sector? In simple terms, the perfect mix consisting of the right technology that provides accurate and timely visibility, advanced predictions analytics, integrated communications, and removing inefficiencies that create unplanned costs. This perfect mix is not as hard to attain when customers are paired with the right partners for the job. As we learned with Celtic, strategic locations and competitive offerings make a significant difference in offering the best options and supporting the bottom line.

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Doug Punzel is the president of Celtic International, to which he brought more than three decades of transportation experience. He joined Celtic in 2014 and has been instrumental in the company’s growth. Throughout his tenure in the industry, he has served in a number of roles, including sales, customer service, operations and leadership. Prior to Celtic, he was a leader within the intermodal sales division at Schneider National.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers

DON’T LOOK SOLELY AT THE LARGEST SHIPS IN GLOBAL SUPPLY CHAINS

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When it comes to ocean transportation, some might automatically think of massive container vessels carrying loads upon loads of cargo with ease. Vessels such as the OOCL Hong Kong, COSCO Shipping Taurus or Madrid Maersk are on the list of the largest shipping vessels across the globe. Although these and other large-scale shipping vessels significantly contribute to the movement of goods in the supply chain, there are quite a few smaller vessels and ships that are just as important and continue contributing to the transportation of goods and fulfilling other purposes for those on the water.

Our goal is to give these smaller vessels credit where it is rightfully due, all while examining their position in the ocean transportation industry and where they are headed.

REEFER SHIPS (AND CONTAINERS)

Known for being smaller in size and scale, the reefer ship serves a special purpose in transporting goods, specifically perishable goods including food and other items requiring specific cooling capabilities. The major differentiator among these ships is their unique design exclusively for transporting cold items. These ships are typically equipped with specific access points and pallets capable of holding reefer containers (usually twenty-foot TEUs). Port Technology has appropriately referred to these reefer containers as “large fridges carried by containerships.”

Among the types of cargo commonly found on one of these reefer ships, bananas are considered the most important over fruits, meats, and even blood and other expensive types of cargoes, according to Port Technology. Other items include pharmaceuticals, flowers and other perishable food varieties. Without the capabilities of these reefer ships to ensure proper temperatures are maintained during transport, many parts of the supply chain would suffer.

The reefer ship does have its competition, however. The previously mentioned “large fridges” are becoming savvier and offering more in terms of temperature variations during transport. Port Technology reports that in 2018, only eight total reefer transport specialist companies existed out of the original 20+ back in 2000. These upgraded reefer containers are cited as the main culprit of this.

BARGE VESSELS

Known for its unique “raft” appearance and functions, the barge vessel stands out by offering much more than what meets the eye. This special type of transport method requires some powering from another source, meaning it does not have its own engine to keep it moving. Although there are some self-powered barges in the modern market, the classic barge in known for relying on a tugboat to move from point A to point B successfully. The barge maintains its position for inland transportation through its environmentally friendly benefits such as reduced fuel usage while transporting more in fewer miles compared to trucks.

According to a report from the American Maritime Partnership, more than 750 million tons of cargo are moved by the famous tug-and-barge combination every year, in addition the $30 billion economic impact in America. The barge industry is not exempt from disruptions, however. Last year proved to be a difficult time for the industry due to extreme flooding and trade tensions, directly impacting the agricultural sector. The Waterways Journal reported that 19.8 million acres went without planting in 2019 due to flooding.

“While some freight rates have appreciated, we still face downward pressure in agricultural and coal markets that need significant improvements in demand before the barge industry can realize a true recovery from what we have seen in the last three to four years,” commented Mark Knoy, president and CEO of American Commercial Barge Line (ACBL) in the report.

TUGS

Think of tugs (or tugboats) as a “part two” of the barge vessel. The tug holds its own in the maritime world, however, and is not solely confined to pulling the barge in its lifetime on the water. Whether it is an ocean, sea, rescue or harbor tug, these much smaller helpers on the water work alongside non-powered vessels or other watercraft, including some sizeable ships that needs assistance when in trouble.

These small-but-mighty supporters have a decent range of displacement anywhere from 300 to 1,000 tons, depending on which type (ocean, rescue, harbor). Large tugs are of great importance to global navies. One of the largest of these types of tugs is the Russian Navy’s Vsevolod Bobrov, which boasts a 9,700-ton displacement and the ability to break ice when needed.

CHEMICAL TANKERS

Think of these tankers as the hazmat vessels of the maritime shipping world. Ranging from S1, S2 and S3 rankings of ships, the chemical tankers on the ocean vary in degrees of safety measures based on the types of chemicals onboard and their requirements outlined by the International Bulk Chemical Code (IBC). These tankers vary in size but are typically anywhere from 5,000 dwt all the way up to 50,000 dwt, although the larger tankers are not as frequently seen. These ships come equipped with individual deep well pumps, pipelines and other systems to ensure minimum risk of exposure and potential contamination.

Chemical tankers are a different breed of ships as they come with an increased set of risks from the liquids they transport. Among common risks, cargo compatibility, cargo spillage, toxicity and flammability all pose potential problems for those onboard and the environment. Compliance simply cannot be subpar in efforts when it comes to transporting chemicals and leading chemical carriers such as Odfjell Tankers, Fairfield Chemical Carriers, and B+H Shipping continue to make waves in the transport of chemicals and other related liquids across the globe.

These are just a few of the various types of watercraft supporting the global supply chain. Without these ships guiding the way, many of the things needed to keep domestic and global economies afloat would not be as easily accessible, transportable, or available. As containerships and other mega-vessels continue to challenge the ocean shipping landscape, it is important to consider the ways these smaller ocean vessels and ships can transform to better meet market demands while supporting sustainable operations. At this point in time, these smaller players in ocean shipping are here to stay.

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Archives, Features, Global Logistics, Global Shippers 101, Ocean Ports

AMERICA’S LEADING PORTS FROM COAST TO COAST

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What makes a well-functioning port? Let us count the ways. There are a number of factors that contribute to the success of a port. First is location. A port should be in a region with natural resources, access to transportation and enough space for future growth. Second, it should have access to funding through government or private investment. Without this, infrastructure that facilitates the transport of goods can’t be built—tanks, cranes, quays and jetties, for example.

Third, a port should be able to accommodate ships. Does the port provide easy access during low and high tides? How well are the facilities maintained, particularly during flooding, droughts, or in extreme weather? Great ports also have the resources needed to function, including piers, stacking yards, and warehouses. And last, for the ports with an eye toward the future, they should also have access to land that will help with expansion. It will provide easy access to transport—river, rail, road.

A great port is the rare amalgam of art and science—like these leading American ports from coast to coast.

1. Port of New York and New Jersey

With 72 percent of the first port of calls on the East Coast, the Port of New York and New Jersey is the busiest in the region. It has contributed to the New York City area becoming an affluent commercial district nationally and globally. The largest port on the East Coast is also the third-largest in the United States.

It supports 400,000 jobs and has generated almost $8.5 billion in local, state, and federal tax revenues. It has facilitated more than 85 million tons of cargo worth more than $211 billion. Its top exports are wood pulp, wood and articles of wood, and plastics. Top imports are beverages, plastic and machinery parts. New York and New Jersey is No. 3 nationally for the total volume of exports, the highest on the East Coast, behind the West Coast ports of Long Beach and Los Angeles.

2. Ports of Tacoma and Seattle

The Port of Seattle and the Port of Tacoma—both located in Washington State and jointly operated by the Northwest Seaport Alliance (NWSA)—is the fourth-largest container gateway. The NWSA, by way of the Port of Seattle and the Port of Tacoma, also ships bulk, breakbulk, project/heavy-lift cargos and vehicles. These ports provide a gateway for major distribution points in the Midwest, Ohio Valley and East Coast.

The NWSA is also a key trade partner with Asia. International trade generated was worth $75.3 billion in 2017. Domestic trade, which includes routes through Puget Sound on the way to Alaska, generated $5.4 billion in 2015, according to the NWSA. The No. 1 gateway for refrigerated exports, the NWSA ports helped generate more than $4.3 billion in revenue for Washington State.

3. Port of Los Angeles

The Port of Los Angeles isn’t quite located in the city of Los Angeles but is 25 miles south in the San Pedro Bay. Nonetheless, the Port of LA is the No. 1 container port in the U.S. in terms of cargo volume going in and out of the port. It includes 7,500 acres of land and 43 miles of waterfront. The Port of LA has passenger and cargo terminals that accommodate containers, cruise lines, automobiles, dry and liquid bulk, breakbulk and warehouse stage space.

Also, the No. 1 container port in the Western Hemisphere since 2000, the Port of LA moved more than 9.5 million twenty-foot equivalent units (TEUs) in 2019. The port is currently undergoing a $2.6 billion infrastructural redevelopment project to strengthen its economic arm and cargo efficiency. The gateway for trade with Asia has a diverse array of exports ranging from avocados and zinc.

4. Port of Long Beach

The Port of Long Beach is the No. 2 busiest container seaport in the U.S., which is fitting because it operates in concert with its numero uno neighbor the Port of Los Angeles. Long Beach’s port supports one in five jobs in its city and contributes to $200 billion in trade annually. The port handled more than 8 million TEUs in 2018, its busiest year. Its Middle Harbor Redevelopment Project is pioneering sustainable practices through a 10-year construction program. It will redevelop two older terminals to create a more advanced, greener container terminal.

A western gateway to Asia, the port has more than 90 percent of its shipments bound for East Asian countries. The Port of Long Beach boasts 3,520 acres of land, 4,600 acres of water, 10 piers, 62 berths and 68 post-Panamax gantry cranes. It also handles 82.3 million metric tons of cargo per year.

5. Port of Houston

Houston might not be the first city that comes to mind when you think “international city,” yet the Gulf Coast location serves as a gateway to various countries. That explains why its port is built for international trade—to the point that it’s the No. 1 U.S. port in total foreign waterborne tonnage, with imports and exports combined.

The Port of Houston contributes 20 percent of the GDP for the state of Texas, worth $339 billion. With 69 percent of all U.S. Gulf Coast container traffic, the Port of Houston is the largest container port. It also prioritizes air quality in the local region through the use of alternative fuels and low-emission equipment and vehicles.

6. South Carolina Ports

Here are two winning statistics: the South Carolina Ports boast more crane moves per hour than any other U.S. port (37), and it also exported more than 194,000 vehicles in 2019. Opened in 1942, the South Carolina Ports Authority consists of public maritime terminals at the Port of Charleston, the Port of Georgetown, and inland ports in Dillion and Greer.

Deep channels accommodate vessels up to 48 feet, and ships are two hours sailing distance from open ocean to South Carolina Ports. Turnaround times for trucks at the gates are 23 minutes with nine minutes at the interchange gate. Transportation is also amenable with interstate access within two miles of all South Carolina Ports, and rail access through CSX and Norfolk Southern railroads.

7. Port of Oakland

The Port of Oakland waters are 50 feet deep to accommodate vessels that hold capacities of up to 18,000 TEUs. This up-and-coming port has transportation partners that include Union Pacific and BNSF Railway. International accounts for 92 percent of the port’s trade, with 78 percent being with Asia, 11 percent with Europe and 2 percent apiece with Australia/New Zealand and Oceania and other foreign countries. The Port of Oakland is one of the three major container ports in California that account for more than 50 percent of total U.S. cargo volume.

The port contributes to more than 73,000 jobs in the Oakland region, and more than 827,000 in the United States. Growth With Care, a five-year growth plan the port released in 2018, aims to bring in more business, with a goal of 2.6 million TEUs and an 8 percent increase in containerized cargo volume by 2022. Investing in large projects and focusing more on sustainable practices throughout the port are also part of the growth plan.

8. PortMiami

The Port of Miami (a.k.a. PortMiami) is the U.S. container port that is closest to the Panama Canal. It provides global access to Florida and much of the rest of the United States. It’s also the closest East Coast port to Mexico.

More than $1 billion was invested in 2019 to make PortMiami even more accessible globally. It has a deeper dredge to welcome large cargo vessels, and on-port rail provides alternative transportation. The port also has an underwater tunnel that connects to the interstate to keep port traffic off of the highway. PortMiami is located strategically at the nexus of north-south and east-west trade lines.

9. Port of South Louisiana

This 54-mile long port sits at the intersection of the Gulf of Mexico and the Mississippi River, which provides easy distribution for products at the domestic and international levels. The Port of Louisiana has three main interstates that connect to the port. It is also served by six major gas and oil lines, transporting more than 1.1 million barrels of crude oil per day.

In 2019, the Port of Louisiana had 3,495 calls from oceangoing vessels, and 54,921 barge calls. The total throughput for the year totaled more than 258 million tons of cargo through vessels and barges. Port of South Louisiana’s Foreign Trade Zone 124 was ranked No. 1 by Merchandise Magazine based on admitted products worth $51.8 billion. The port, which is also ranked No. 1 domestically for total throughput tonnage, boasts the largest grain port in America. Air cargo is accessible through the Louis Armstrong International Airport.

10. Port of Corpus Christi

Operating since 1926, this 36-mile Texas port provides a 47-foot deep channel for domestic and international trade. It provides access through rail and road, connecting to two major interstate highways (37 and 181) and three railroads (BNSF, Kansas City Southern and Union Pacific). It is the third-largest port domestically and No. 2 for crude oil exports.

With a warm climate that allows for easy operation year-round, the Port of Corpus Christi is also a part of the Intracoastal Waterway that stretches from Brownville, Texas, to Boston, Massachusetts, along the Atlantic Coast. The port also implements renewable energy practices by using wind energy for breakbulk and heavy-lift cargo.

11. Port of Mobile

The Port of Mobile carries more than $22.4 billion in economic value to Alabama. The only deepwater port in the state, it sits on the Mobile River. It houses 5 million square feet of warehouse and open-yard space and has a channel depth of 45 feet. Its tonnage in 2018 totaled 26.8 million tons.

Major imports for the Port of Mobile include heavy lift and oversized cargo, containers, coal, aluminum, iron and steel. Major exports include heavy lift and oversized cargo, containers, coal, lumber, and plywood. The port has 1,500 miles of inland and Intracoastal waterways. It serves the Gulf of Mexico, the Ohio and Tennessee river valleys and the Great Lakes. It is owned and operated by the Alabama State Port Authority.

12. Port of Greater Baton Rouge

The Port of Greater Baton Rouge sits where the Mississippi River and Gulf Intercoastal Waterway converge. Its 45-foot shipping channel is upheld by the U.S. Army Corps of Engineers. This port also offers access to intermodal transportation via connections to interstate highways.

The Midwest and other U.S. regions can be accessed through the Port of Baton Rouge’s 15,000 miles of inland waterways. The port also provides access to the Gulf of Mexico, Latin America and the Panama Canal. Its bulk and breakbulk cargo include asphalt, aggregates, limestone, barite, carbon black, coal and coffee.

13. Port of Plaquemines

Twenty miles south of the Port of New Orleans (and also in Louisiana) is the Port of Plaquemines, which boasts of more than 100 miles of deep-draft access, with a minimum of 45 feet. It’s within the same Plaquemines Parish where you will find the unincorporated community of Venice, which supports oil and gas tonnage. Venice has pipelines, petroleum infrastructure and draft wharfage with both deep and shallow water to support vessels carrying oil supply.

The Port of Plaquemines, which can be accessed by 33 U.S. states, has annual tonnage exceeding 55 million tons. Popular imports include coke, carbon black feedstock, crude and fuel oil. Exports include coal, grain-corn, soybean and wheat.

14. Port of Metropolitan St. Louis

That is how the city of St. Louis, Missouri’s port authority refers to the important trade hub in the Midwest. The 70-mile port is the second-largest inland port in the U.S. Its cargoes include grain, coal, chemicals, and petroleum products.

Metro St. Louis is also the 17th largest port in the U.S., with an intermodal transportation system that includes six Class One railroads, seven interstates, and two international airports. It has access to two foreign trade zones and contributes to thousands of jobs in Missouri and Illinois. The Port of Metropolitan St. Louis ships more than 36 tons of freight annually. It has 16 public terminals and more than 130 piers, wharves, docks, and fleeting.

15. Port of Portland

Oregon’s Port of Portland may be on the West Coast, but it is a central trade hub for the Midwest, having shipped more than 4 million tons of grain worldwide in 2017. It has been an auto gateway since 1953, importing and exporting vehicles manufactured by Ford, Toyota, Hyundai and Honda. More than 300,000 automobiles were imported or exported through the Port of Portland’s terminals in 2019.

This port’s intermodal transportation includes rail and interstate highways. With three airports, four terminals, and five business parks, the Port of Portland has also helped generate more than $6.4 billion a year for the region. It has also helped spur the creation of 27,000 jobs and contributes to more than $1.8 billion in wages.

16. Port of Pascagoula

More than 32 million tons of cargo pass through this Southeastern Mississippi port each year. The Port of Pascagoula is Mississippi’s largest seaport. This port provides easy access for shipment through the Gulf of Mexico. Shipping lanes can be accessed within two hours from open ocean, and the channels are 42 feet deep.

The Port of Pascagoula is operated by the Jackson County Port Authority. Popular imports are forest products, crude oil, and chemicals. Exports are forest products, paper products, petroleum products, chemicals and project cargo. It ranks No. 23 in total trade—domestic plus international—with a volume of 27 million tons in 2018, according to statistics from the U.S. Army Corps of Engineers.

Each of these ports fulfills different factors that help them to successfully function in their respective regions. Whether it’s the depth of the channels to allow for varying size ships to dock or easy access to transportation, these ports help to facilitate domestic and international trade. In turn, they help spur the creation of jobs and stronger local, state and national economies. Overall, these ports are helping to shape the United States economy for the better—one import, one export, at a time.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

SURVEY: RISK MANAGEMENT CONCERNS RISE AT PORTS AROUND THE WORLD

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The deadly spread of COVID-19, and the economic and trade disruption the pandemic has caused, is prompting port managers to examine new ways to improve risk management and digital processes.

Those are the conclusions in the latest biennial global ports survey conducted by Remy InfoSource, which was established in 2001 in the Netherlands to provide artificial intelligence diagnostic solutions to the high-tech and transportation industries. The lifecycle contract management specialist is now based on Australia.

The “2020 iSpec Ports Industry Survey” was undertaken during the height of worldwide economic lockdowns in the second quarter of 2020 and on behalf of iSpec, the world’s leading web and mobile-based software procurement solution for buyers of capital intensive outsourced projects such as ports.

The survey revealed that 51 percent of port executive respondents now identify risk management as the key area they would like to improve on in the future, up from 32 percent in the previous iteration of the iSpec Ports Industry Survey in 2018. That year, the top two areas for improvements noted by ports and terminal executives were shorter lead times and more standardization.

“I think it’s no surprise that in such an uncertain world the importance of risk management has increased dramatically,” says Pieter Boshoff, CEO of Remy InfoSource. “Disruption to supply chains has increased across the globe causing operational and investment uncertainty and, with social distancing rules, also changing the way we all conduct our business.

“Managing that risk has become a major challenge at ports, particularly when it comes to managing outsourced equipment tender and procurement projects that are often complex in nature and frequently involve multiple vendors.”

Port operators represented 71 percent of the respondents to the 2020 iSpec Ports Industry Survey, up from 58 percent in 2018. More than two thirds of respondents are responsible for the procurement of quay cranes, reach stackers and trailers.

Asked how the COVID-19 lockdown had affected the way ports were conducting business, 41 percent of global respondents said the pandemic had required a shift to more digital collaboration, 49 percent said more projects were now on hold, and 62 percent said they were now working from home more often.

The 2020 iSpec Ports Industry Survey also found that “quality” has become the leading reason for customer/supplier disputes. In the 2018 survey, “delays” was cited most often as the cause of customer/supplier disputes.

“No matter what the business, the spread of coronavirus has forced executives to find new ways of conducting business and for the most part this means turning to digital solutions,” Boshoff explained. “There is no doubt in my mind that this is a trend that will accelerate in the future. It is becoming abundantly clear that for many businesses there are benefits and efficiencies in the new online and outsourced methods they have developed during the pandemic. I think many of the work processes adopted during lockdowns, particularly around communication, will outlast the coronavirus crisis and become part of our normal way of working.”

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Archives, Global Logistics, Global Shippers 101, Global Trade Daily

How to Improve Your Company’s Shipping Process

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Having international shipping capabilities has practically become a must for any serious online store. At the very least, you need to have a solid shipping service within your country if your company is going to grow and properly sell your product. So, it stands to reason that having an overall efficient shipping service is something you really ought to invest in. Luckily, we are here to give you a couple of ideas on how to improve your company’s shipping process.

Why is it important to have an efficient shipping process

The shipping process is, in essence, delivering goods from point A to point B. So, why should you spend your time and money on improving this basic service? Well, to put it simply, it is because people have grown to expect efficient shipping. Now, you can opt for outsourcing your shipping, but this is often the more expensive, less efficient way. With a bit of research and investment, you can organize your own e-commerce shipping process, and therefore have the necessary freedom to improve it.

Ways to improve your company’s shipping process

There are literally thousands of different ways to improve your company’s shipping process. Depending on where your shipping services are at now, you can be looking at smaller improvements like boosting your navigation process, to larger ones like implementing a major overhaul of your logistics equipment. So, before you decide on any of these upgrades, we suggest that you take a closer look at your company. More often then not, there is at least one improvement that will give you huge value for your investment. So, plan long and hard before you implement anything.

Streamline shipping orders

A surprising number of shipping issues have nothing to do with bad navigation or poor equipment. Most of them are due to poor internal communication and bad optimization of the beginning of the shipping process. So, if there is one place we suggest you start, it’s at the beginning. Try to pick up on the little details that make the shipping process needlessly long. These details may look insignificant on their own, but once they pile up and combine, they can easily take up a lot of time and energy. Go through the whole process both as a shipping coordinator and a customer. If you don’t have much experience with shipping, you can always hire a professional to go over your process and give you tips on how to improve.

Improve communication

In order to have an efficient shipping service, you need to have a top-notch communication system within your company. This means that your workers need to be able to communicate with each other whenever, wherever. If this is not the case currently, make it so. There are a ton of mobile apps that can make communication easier. Among the ones we can recommend are:

-Slack

-Chanty

-Troop Messenger

-Brosix

Be sure to try out a couple and to read reviews before you opt for one. To make communication more efficient, you can even look into digitalizing your shipping process as much as possible. Recent events with COVID-19 have certainly incentivized shipping companies to adopt digital shipping solutions.

Use tracking technology

One of the ways to both improve your company’s shipping process and keep your customers happy is to utilize tracking technology. Being able to have a live feed of where your shipments are will make the whole process much easier to handle. And, if you can give that info to your customers, you will effectively make them happier. In fact, most customers have grown to expect shipment tracking. This is why, sooner or later, you will probably have to implement it within your shipping process.

Be aware of courier services

When it comes to international shipping, you can rarely afford to work on your own. More often than not, you will have to coordinate with other shipping companies and courier services in order to ship efficiently. So, our advice is to prepare for your international shipments and look for local courier companies in advance. While you may have an easy time finding a shipping company in the U.S., finding one in Europe or Asia can prove to be a time-consuming process. Especially if you have to overcome the language barrier in order to set up a shipping agreement. So, do yourself a favor and prepare the groundwork for different areas before you start shipping internationally.

Prepare for customs clearance

Another way to make international shipping more efficient is to prepare for customs clearance. Keep in mind that your shipments will spend a lot of time at customs, especially if you don’t have the necessary paperwork and you don’t follow the strict guidelines. So, before you ship off your goods, ensure that the person in charge of them has everything necessary for smooth customs clearance.

Keep your customers informed

The final way in which you can better your shipping process is to always keep your customers informed. Issues and hiccups do happen, even with the most efficient shipping companies. So, while you should do all that is possible to improve your company’s shipping process, don’t expect to have a full-proof system. If and when a delay does happen, you shouldn’t shy away from informing your customers. In the long run, this act will ensure that you have better reviews.

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Jonas Myers has worked as a professional shipping coordinator for over 20 years. During that time he helped companies like U. Santini Moving and Storage improve their shipping capabilities and increase their travel efficiency. He now focuses on raising his daughters, woodworking, and on writing helpful articles about shipping.

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Archives, Global Trade Daily, Ocean Carriers

Vessels for Life: Here are the Ships that Make Our Lives more Livable

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It’s amazing how interconnected we are as a world—from delivering goods along the supply chain to your local grocery store to the social distancing that has helped to control what we’ll unlovingly refer to as “The Outbreak.” As much as it can be sometimes difficult to be connected, it is this interconnectedness that also allows us to subsist in our day-to-day lives. Toilet paper, cars, and even oil are goods that we can access thanks to the Svengali-esque magic—or organization, rather—of the global supply chain. One could say that it, in fact, makes the world go ‘round.

So today, we’d like to introduce some of the power players in this arena, the unsung voices that help us to have access to different goods each and every day. And these unsung voices are ships, the carriers that are key to our worldwide supply chains.

What follows are five major carriers and eight individual vessels that play an important role in shipping vehicles, cargo containers for manufacturers and other goods and equipment of all sizes that make our lives more livable each day.

MSC Gülsün (MSC)

The MSC Gülsün is a ship in the fleet of the Mediterranean Shipping Co. (MSC), a world leader in container shipping. The MSC Gülsün is the largest container ship in the world, with a max capacity of more than 23,000 TEUs. (Try that on for size!) It has more than 2,000 refrigerated containers; a hybrid exhaust gas cleaning system; a dual-tower firefighting system; 35 cabins; and double-hull protection.

The MSC Gülsün also has an eye for sustainability, increasing the efficiency of the CO2 emitted by 48 percent. With a hybrid exhaust gas cleaning system (EGCS), this ship is also self-cleaning. The vessel can carry 8 million solar panels, more than 47,500 cars, 223 million bananas, nearly 3 million washing machines and 386 million pairs of shoes, MSC boasts.

The ship was built in South Korea at Samsung Heavy Industries. The MSC Gülsün is 400 meters long and 60 meters wide. Despite its size, its engineering reduces resistance from the wind, which leads to lower fuel consumption.

Venus Leader (NYK Line)

The Venus Leader is a vehicle carrier with the Nippon Yusen Kaisha (NYK) Line, a global shipping and logistics company. The roll-on/roll-off (ro-ro) division of NYK is the largest worldwide. Built in 2010, the Venus Leader sails under the Japanese flag. It carries up to 15,301 t DWT (tanker deadweight tonnage). Her draught is 7.1 meters. The Venus Leader has a length of 186.03 meters and is 28.2 meters wide.

The NYK line has a fleet of 118, which carries more than 3.4 million cars each year. In addition to cars, the NYK ro-ro division also carries agricultural machinery, plant equipment and specialty cargos such as boilers, transformers and yachts. The company has sustainability goals. For instance, by 2050, it aims to have a zero-emissions ship, the NYK Super Eco Ship.

M/V Liberty (ARC)

The M/V Topeka was re-flagged to American registry and re-named the M/V Liberty on Jan. 31, 2017, to be consistent with the practice of owner American Roll-on Roll-Off Carrier (ARC) to name its ships after American values. M/V Liberty is now among the most capable and militarily-useful vessels in the U.S.-flag commercial fleet, able to carry tracked vehicles, helicopters, trucks, and other military and high and heavy project cargoes. The vessel is 199.99 meters long with a beam of 32.26 meters, a stern opening of 15.2 meters wide and 5.4 meters high, and a stern ramp rated for cargo up to 237 metric tons.

Vessels in the ARC fleet are known for their ramp access and system optimization, which helps with quick reconfiguration that allows for maximum lift capacity. That explains why, besides military cargo, ARC ships carry commercial breakbulk as well as agricultural and construction equipment for developing countries. Considering itself one of one part of its partners’ supply chains, ARC also works with the warehousing capabilities of other countries.

Actuaria, ACX Crystal, ACX Diamond (ONE)

The top three vessels with Ocean Network Express (ONE), based on TEUs, are the Actuaria, ACX Crystal and ACX Diamond. Built in 2009, the Actuaria holds up to 6,589 TEUs and flies under the Portugal flag. Built in 2008, the ACX Crystal carries up to 2,858 TEUs and flies the Panama flag. And built in 2008, the ACX Diamond can handle 2,858 TEUs and flies the flag of Singapore. They are but three of 225 vessels in ONE fleet that travels to more than 120 countries and can handle a total of more than 1.5 million TEUs.

The sixth-largest carrier worldwide as of January 2020, ONE operates under four core values: “Lean & Agile” to be a new definition of what a new reality can be; “Teamwork” that builds new value; “Best Practice” through the collaboration of its partners; and “Challenge” that takes strengths to face challenges without being afraid to fail.

Magleby Maersk and Munich Maersk (Maersk)

Two of the biggest ships of Maersk—the Denmark-based logistics giant—are the Munich Maersk and the Magleby Maersk. The Munich Maersk, which has a TEUs capacity of 19,630, was built in 2017 and sails under Denmark’s flag. It has a draught of 7.1 meters with an overall length of 399 meters and a 58.6-meter width.

The Magleby Maersk, which can handle up to18,270 TEUs, is 398 meters long, 33 meters deep and 73 meters high. Built in the Daewoo Shipbuilding and Marine Engineering shipyard, the ship is engineered with two low-revolution and two long-stroke engines. Each packs 9,785 horsepower. According to Vessel Tracking, Maersk operates 538 container ships, which can ship more than 3 million TEUs.

In short, these are a handful of ships that are making waves in transportation and logistics, playing a major role in moving the goods that keep us going each day. Onward!

port
Archives, Features, Global Trade Daily, Ocean Ports, Stories, Top Ports

PORT CITY REVIEW: THESE 20 SEAPORT COMMUNITIES HELP DRIVE THE U.S. ECONOMY

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Ports are “crucial to the economy,” Texas economist Ray Perryman wrote in 2017. “Ports generate substantial business activity through their operations, but those benefits are dwarfed by the huge importance of water transportation to other industries.” In this survey of 20 U.S. port cities, we look at various engines of economic development and see how they tie into the seaport.

TAMPA, FLORIDA

Since 2009, the Tampa Bay Economic Development Council (EDC) has acted as the is the lead designated economic development agency for Hillsborough County as well as the cities of Tampa, Plant City and Temple Terrace. The EDC offers a variety of incentives (infrastructure, workforce training, targeted industry and special opportunities) and tax breaks for companies that create high-wage jobs in high-value industries. Companies can also apply for workforce training grants and tax exemption programs. In addition, the Tampa Bay EDC also aids those wishing to take advantage of real estate opportunities at Port Tampa Bay (the largest deepwater port in the state), Port Redwing and Port Ybor.

BALTIMORE, MARYLAND

The Baltimore Development Corporation (BDC) serves as the administrator of that city’s Foreign Trade Zone (FTZ). The FTZ offers duty-free treatment for companies importing and exporting goods, and it saw nearly $20 billion worth of shipments in 2017. Much of that passed through the Port of Baltimore, which is one of the 10 busiest in the nation. According to the BDC, “With merchandise such as cars, paper and steel, 2017 saw the total FTZ international revenue rise from $44 million in 2016, to more than $396 million in 2017.” The BDC also provides a number of programs for entrepreneurs, small businesses and tax credits for supermarkets willing to open or renovate in targeted areas of the city.

MATAGORDA COUNTY, TEXAS

Matagorda County’s two shallow draft ports—Port of Bay City and Port of Balacios—are part of what makes the area’s location so desirable, according to the Matagorda County Economic Development Corp. (EDC). Both ports have nearby parcels available for long-term lease and development. Those wishing to do so may qualify for a host of incentives offered by the Matagorda County EDC, including tax abatements, an industrial revenue bond program, the Texas Enterprise fund for job creation, permit assistance, special discretionary loans, sales and use tax exemptions and various other training and capital funds.

VENTURA COUNTY, CALIFORNIA

Starting in 2019, the Port of Hueneme began a partnership with the Ventura County Economic Development Collaborative (EDC), Matter Labs and Naval Base Ventura County known as MAST (Maritime Advanced Systems & Technology). MAST is a laboratory at the port to incubate new technology and attract venture capital. “By leveraging the unique geographic, operational and environmental assets located at the Port of Hueneme, MAST invites entrepreneurs with an optimized solution a surrounding for sustained research, experimentation and test programs,” port officials say. This fits in perfectly with the EDC’s mission of promoting job growth through start-up assistance, special financing packages and workforce training programs.

SAVANNAH, GEORGIA

The Savannah Economic Development Authority (SEDA) provides a dizzying array of tax incentives to companies wishing to locate or expand in Savannah. The organization’s Business Retention Action Team (BRAT) also offers workforce training, assistance on decreasing energy use, logistics and engineering information and even free pre-OSHA audits. Because the need for warehousing space to accommodate the ever-growing Port of Savannah was consuming so much land, in 2019 SEDA developed the 719-acre Savannah Manufacturing Center. To attract tech firms, the project includes a host of county and city tax exemptions, according to an Oct. 23, 2019, story in Worth.

MEMPHIS, TENNESSEE

Created in 2011, the Economic and Development Growth Engine (EDGE) for Memphis and Shelby County coordinates public resources and incentives for economic growth in those municipalities. EDGE manages Foreign Trade Zone 77, provides special business loans and tax incentives and also manages the Memphis Port Commission, which oversees the Port of Memphis. In November 2017, EDGE approved a $327,500 contract to develop a master plan for the port. Produced nearly a year later, that plan calls far a variety of infrastructure upgrades to ensure that the port will still be in use 20 to 50 years from now.

FORT LAUDERDALE, FLORIDA

The Greater Fort Lauderdale Alliance has long sought to strengthen and diversify that city’s economy through services and incentives aimed at helping companies expand or relocate there. The organization helps with business location, market research and workforce training. GFLA also supports various international trade initiatives, in hopes of increasing imports and exports in Fort Lauderdale. Port Everglades, which plays a key role in global trade initiatives and is the preeminent seaport in Florida in terms of revenue, was responsible for $34 billion in economic activity in 2018, according to the port authority.

NEW YORK CITY, NEW YORK

“We are New Yorkers, working for New Yorkers,” say the officials who run the New York City Economic Development Corp. (NYCEDC). The NYCEDC prides itself on helping to grow and help companies become more sustainable. In 2015, the NYCEDC took a big step in doing this by signing a lease agreement with the City of New York to develop the old South Brooklyn Marine Terminal at Port NYC. Three years later, in May 2018, NYCEDC announced that their new Sustainable South Brooklyn Marine Terminal would serve as a new and major shipping hub that would create 250 near-term jobs, expand future growth and job creation and eliminate the need for 11,000 truck trips every year.

LOS ANGELES, CALIFORNIA

The Port of Los Angeles is the busiest seaport in the western hemisphere. As such, the Los Angeles Economic Development Corp. (LAEDC) provides a number of services to ensure that the port—and those companies and workers who rely on it—continues to grow. It publishes a variety of reports each year on the city’s international trade outlook, assists companies in finding international trade opportunities, brings international investment into LA through its World Trade Center Los Angeles affiliate and helps ensure low-interest financing is available for projects.

WILMINGTON, NORTH CAROLINA

Since 1956, Wilmington Business Development (WBD) has worked to bring more companies to the region. It does this through market research, partnership development and technical assistance. There’s no better example of this than WBD’s recent partnership with Chesterfield LLC and the Port of Wilmington to construct a 425,000-square-foot, build-to-suit facility at the port, which will handle both imports and exports. As a marketing partner in the venture, WBD will promote the project and attract tenants.

PROVIDENCE, RHODE ISLAND

Through a partnership with the U.S. Department of Commerce and the John H. Chafee Center for International Business, the Rhode Island Commerce Corp. (RICC) assists Providence companies in entering export markets. This allows companies to join trade missions, learn how to market themselves internationally and get specialized training. Though the Port of Providence (ProvPort) is relatively small, it has been a commercial seaport since the 1600s, which is why RICC partnered with the port in 2017 to implement a bond measure that would expand the port’s size and influence.

MOBILE, ALABAMA

For the past three decades, the Economic Development Partnership of Alabama (EDPA) has worked to help companies grow in the state, and compete throughout the world. It offers assistance for start-ups on obtaining special credits, help with the various free trade zones around the state and information on the AlabamaSAVES loan program to make it easy to get energy efficient. EDPA also provides help for those companies wishing to compete globally—which is made vastly easier by the Port of Mobile, which is responsible for more than 134,000 jobs and more than $22 billion in economic impact.

NEW ORLEANS, LOUISIANA

The Port of New Orleans plays an outsized role in that region’s economic growth. It supports nearly 120,000 jobs and almost $30 billion in revenue, according to an April 15, 2019, article in Biz New Orleans. Greater New Orleans, Inc. (GNO), which has long assisted companies in the region that wish to grow or compete internationally, recognizes that New Orleans’ growth simply couldn’t happen without the port. “In recent years, the Port of New Orleans has emerged as not only a record-breaking cargo and cruise facility, but remains an economic development powerhouse,” said GNO President Michael Hecht in the Biz New Orleans article. “Thanks to the Port’s leadership and partnership, New Orleans is well on its way to reclaiming its economic and maritime preeminence.”

OAKLAND, CALIFORNIA

The East Bay Economic Development Alliance (EDA) has been assisting the Port of Oakland (which today handles 99 percent of the containerized goods that move through Northern California) to grow for the past three decades. The EDA supported the port’s need to dredge the harbor in 1991 and again in 2009, meeting with conservationists, shipping interests and others to build a consensus. In 2003, the EDA also met with stakeholders to resolve the transportation impacts created by the port’s growth. The result was a recommendation to move the transportation and distribution facilities that support the port.

NORFOLK, VIRGINIA

The Hampton Roads Economic Development Alliance (EDA) has long assisted both domestic and international firms wishing to invest in the Norfolk area. The EDA provides all manner of services and assistance in finding a location, banking, obtaining permits, staffing and auditing. The EDA can also provide help for those companies wishing to take advantage of the three lucrative tax incentives offered by the State of Virginia to firms that use the Port of Norfolk: the Port Volume Increase Tax Credit, Barge and Rail Use Tax Credit and International Trade Facility Tax Credit.

BROWNSVILLE, TEXAS

Since 1992, companies wishing to locate or expand in Brownsville have been able to call upon the services of the Brownsville Economic Development Corp. (BEDC). The BEDC offers qualifying firms job creation incentives that range from $2,000 to $10,000 per each job created. Bringing together business leaders, location consulting and permit assistance are some of the other services the BEDC offers to companies in Brownsville. Critical to the city is the Port of Brownsville, the only deepwater port on the U.S./Mexico border, which the port authority said was responsible for $3 billion in economic activity in 2018.

MIAMI, FLORIDA

The Economic Development Council (EDC) of South Miami-Dade formed in 1993, following the destruction wrought by Hurricane Andrew. In addition to assisting companies in moving to Miami or expanding their current location, the EDC provides firms with market information as well as assistance in qualifying for tax incentives. Another key role of the EDC is focusing on “the betterment of any deficiency in the regional infrastructure which is a hindrance to economic vitality.” PortMiami, one of the most important elements in the Miami economy, impacts more than 334,000 jobs and supports about $43 billion in overall economic activity.

CLEVELAND, OHIO

Job creation in Northeast Ohio has been at the forefront of the Greater Cleveland Partnership (GCP) since its founding in 2004. The organization advocates for Cleveland businesses, while also providing them with vital assistance in getting access to capital, securing tax incentives and finding and retaining staff. In 2018, the GCP helped local companies create nearly 2,000 jobs, while retaining more than 12,000. The Port of Cleveland, which is the hub of about $3.5 billion in economic activity for the region, supports nearly 20,000 jobs.

PHILADELPHIA, PENNSYLVANIA

The Philadelphia Industrial Development Corp. (PIDC) has leveraged more than $25 billion in investment and helped create hundreds of thousands of jobs since its founding in 1958. It manages commercial and industrial real estate, delivers grant funding for development projects, provides resources for companies located in underserved, low-income parts of the city and sponsors investment opportunities in projects that qualify for the U.S. Immigration Investor Program. PhilaPort has been central to the growth of Philadelphia, returning more than $70 million in revenue to the city and providing more than 10,000 jobs.

ST. LOUIS, MISSOURI

It’s remarkable just how much the STL Partnership accomplishes in the name of economic development. The organization manages opportunity zones to encourage urban investment, provides workforce development, helps companies engage on the global market, provides tax incentives and loan assistance, runs innovation centers for startups and assists companies with site selection. The STL Partnership and the St. Louis County Port Authority have been partners since the Mississippi River flood of 1993. Then, they joined to develop the Lemay Comprehensive Plan, which helped redevelop the old National Lead site and establish a community reinvestment fund.

Dubai
Archives, Global Trade Daily, News

Dubai’s Latest Report Confirms Non-Oil Foreign Trade Increased 6 Percent in 2019

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In the latest report by the Government of Dubai, the region was confirmed its efforts to achieve its 2025 trade target of AED2 trillion helped spur growth in trade last year. The report also confirmed that non-oil external trade saw an increase of 19 percent in volume from 91 million tons in 2018 to reach 109 million tons in 2019. Re-exports rose by a record 48 percent to reach 17 million tons, while exports rose by 45 percent to 19 million tons and imports grew by 9 percent to 72 million tons. These figures capped a prosperous decade for Dubai from 2010-2020, during which external trade grew by 70 percent.

Dubai achieved exceptional external trade growth in 2019 despite the headwinds from an intensified global economic downturn. In terms of value, Dubai’s external trade surged 6 percent to AED1.371 trillion from AED 1.299 trillion in 2018. Exports skyrocketed 22 percent to AED155 billion, re-exports grew by 4 percent to AED420 billion and imports rose by 3 percent to AED796 billion. Over the decade (2010-2019), the value of Dubai’s external trade went up by 52 percent thanks to the agility, versatility and flexibility of the external trade sector in the emirate, which discovered alternative markets and trade paths to make up for sluggish growth in some markets.

“Dubai’s external trade has contributed significantly to the emirate’s economic achievements, further raising its status as a global hub for trade, business, and tourism, giving it a solid platform for growth in the next 50 years and creating the optimal conditions for more sustainable development across sectors,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of The Executive Council. “Inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai’s external trade sector is progressing steadily towards the 2025 trade target of AED2 trillion set by His Highness.

“All government entities are working seamlessly together to provide the best services, facilitate trade and foreign investments, and further develop infrastructure across the emirate, especially at airports and free zones, to galvanize its journey of excellence and enhance its role as a commercial bridge between the east and west. Furthermore, hosting mega-events such as EXPO 2020 will provide opportunities for the international trade sector to explore new possibilities and expand growth.”

Dubai’s foreign trade out of free zones in 2019 was a major contributor to the overall increase, accounting for AED592 billion, an 11 percent increase year-on-year. Direct trade saw a 2 percent growth to reach AED770 billion. Customs warehouse trade hit AED9 billion.

Land trade grew by 11 percent contributing to AED228 billion, air trade rose by 5 percent to AED641 billion and sea trade increased by 4 percent to AED502 billion.

Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation, said: “Growth in Dubai’s external trade is the fruit of dedicated and well-planned work over the last few years, which helped us establish global leadership in different sectors. The future is promising and there are no limits when it comes to our expectations. We will keep growing and developing based on the latest and most advanced innovations and breakthroughs in AI smart applications following the vision and directives of our leadership.

“Hosting major international events will give our organizations a greater voice on the world stage, backed by our presence and strong network out of the 80 terminals that DP World operates worldwide, and our bold economic initiatives including the Dubai Silk Road.”

Bin Sulayem added: “Free zones in Dubai are a key factor behind the emirate’s trade success. The sophisticated infrastructure of our free zones, especially Jebel Ali Free Zone (JAFZA), has helped businesses benefit from different incentives and facilities, and attracted more foreign investments over the years.”

Bin Sulayem said Dubai Customs is continuously evolving to facilitate greater trade and provide more exceptional service to its customers. The number of customs transactions completed by Dubai Customs grew by a record 34 percent in 2019 to 13 million from 9.7 million in 2018. As part of the Dubai Silk Road strategy, Dubai Customs launched the World Logistics Passport, which links Customs World, DP World, and Emirates Group to enhance connectivity through Dubai and, through sharing of expertise and process development directly between partner countries. Dubai Customs also launched the second phase of the productivity engine, an initiative developed in-house and approved by The Executive Council with the aim of boosting productivity by 8 – 10 percent.

China remained Dubai’s largest trading partner, contributing AED150 billion. India was the second-biggest trading partner, contributing AED135 billion, followed by the USA with AED77.7 billion, and Switzerland with AED60 billion.

Saudi Arabia maintained its position as Dubai’s largest Arab trade partner. The country was the emirate’s fifth-biggest partner globally, contributing AED56 billion.

The highest traded commodity by value in 2019 was gold, jewelry, and diamonds which contributed AED370 billion, a growth of 7 percent from 2018. Gold took the lion’s share of trade with AED169.5 billion, followed by phones with AED164 billion, an increase of 9 percent from the previous year. The third-highest traded commodity was jewelry at AED116.6 billion, followed by petroleum oils which contributed AED85.4 billion in 2019, a growth of 55 percent, and diamonds which accounted for AED83.9 billion.

*Republished with permission

SAL
Archives, Global Trade Daily, News

SAL Heavy Lift Confirms Fleet Additions for 2020

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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
Archives, Global Trade Daily, Ocean Carriers

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

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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.”