Did you know that 80% of the global goods trade is transported over sea? Given the scale of human consumption, this requires an enormous number of shipping containers, as well as ships to carry them.
At an industry level, container shipping is dominated by several very large firms. This includes Maersk, COSCO Shipping, and Evergreen. If you live along the coast, you’ve probably seen ships or containers with these names painted on them.
Generally speaking, however, consumers know very little about these businesses. This graphic aims to change that by ranking the 10 largest container shipping companies in the world.
Each year, thousands of ships travel across the globe, transporting everything from passengers to consumer goods like wheat and oil.
But just how busy are global maritime routes, and where are the world’s major shipping lanes? This map by Adam Syminton paints a macro picture of the world’s maritime traffic by highlighting marine traffic density around the world.
It uses data from the International Monetary Fund (IMF) in partnership with The World Bank, as part of IMF’s World Seaborne Trade Monitoring System.
Data spans from Jan 2015 to Feb 2021 and includes five different types of ships: commercial ships, fishing ships, oil & gas, passenger ships, and leisure vessels.
FIATA is proud to bring its members a pragmatic solution to move from paper documents to paperless FIATA BLs, which can be issued directly through their everyday tools. The FIATA solution improves the level of security of the FIATA BL in comparison to the paper version, making use of blockchain technology to authenticate the documents and provide an audit trail. Conscious of the various challenges which remain to be overcome to achieve worldwide adoption and legal recognition of electronic exchange of data, the paperless FBL is an answer to the needs of the industry for improved access and exchange of trade documents. The document issuer can decide in which format (s)he wishes to share the original unaltered document with its stakeholders: in paper form or as a PDF. Based on its eFBL data standard, FIATA has developed an API service, available free of charge to all software providers, allowing them to connect with FIATA to create secured paperless FBLs.
As of today, seven software providers have already signed an agreement with the Federation to implement the solution: AKANEA, Cargowise, CargoX, edoxOnline (Global Share), InfoSysTech-IST, Nabu and Usyncro. We are very pleased to announce that the paperless FBLs can start to be issued as of today with edoxOnline, InfoSysTech-IST and Usyncro who have already finalised the implementation.
FIATA encourages all TMS’s, eBL providers and other software providers to join them and implement their solution to offer this new service to their customers. All technical specifications are available on FIATA’s GitHub repository.
The solution, developed by FIATA partner Komgo, will help to reduce fraud risks, as each document is recorded on an immutable ledger and will be verifiable at any time by all stakeholders interacting with the document. Stakeholders will be able to either scan the QR code at the top right of the document, or directly upload the PDF on FIATA’s verification page to access the document audit trail which will
certify the validity of the document,
the identity of its issuer, and
the integrity of its content.
Souleïma Baddi, CEO of Komgo, when asked to comment on the paperless FBL launch said: ‘Documents are the bedrock of international trade, but they don’t operate like we need them to and they’re susceptible to fraud and forgery, that happens quite often.
Trakk is the digital ecosystem of trust for trade documents. I am thrilled to see FIATA joining all companies, financial institutions, warehouses and others who are using Trakk to protect their documents against fraud.’
‘WiseTech Global congratulates FIATA on the launch of their electronic bill of lading.’ The company continued: ‘This initiative will support transparency and security across the supply chain and will help companies to accelerate their digitalisation efforts. It was a pleasure to work with FIATA on this initiative. CargoWise customers will be able to request a connection to FIATA’s eFBL from June 2022.’
‘FIATA is very excited to embark on this important milestone of its digital journey which paved the way for great opportunities for the future of freight forwarders’, said FIATA Director General Stéphane Graber.
The 26th/27th Meetings of the SAFE Working Group (SWG) were held successfully from 11 to 14 April 2022. The virtual meetings brought together more than 260 delegates representing Customs administrations, the Private Sector Consultative Group (PSCG), other international organizations and academia.
In his opening remarks, Mr. Pranab Kumar Das, WCO Director of Compliance and Facilitation, highlighted that the SWG had reached an important juncture as the new three-year SAFE review cycle 2021-2024 was about to enter into discussions. It was pointed out that 17 years after it was first published, the SAFE Framework of Standards (FoS) had garnered substantial interest from WCO Members. During the meetings, Guyana became the 172nd WCO Member to express its interest in implementing the SAFE FoS.
With a view to continued enhancement of the AEO criteria and provisions to strengthen the SAFE FoS, WCO Members made several new proposals to revise the Framework. The SWG also received feedback from the private sector on the urgent need to enhance the harmonization of SAFE and AEO implementation. In this context, the SWG heard a presentation by the WCO Anti-Corruption and Integrity Promotion (A-CIP) Programme on maintaining the integrity and transparency of AEO implementation.
On this occasion, the SWG reviewed and adopted the new Work Plan for 2022-2024, which reflected the critical activities the SWG will carry out over the next two years until 2024, in parallel with the SAFE review cycle. The SWG also received an update on the development of new features for the Online AEO Compendium (OAC) and the other extensive work underway in collaboration with other international organizations in the areas of security and facilitation.
Against the backdrop of the WCO’s theme for 2022, the panel discussion on “Scaling up Customs Digital Transformation by Embracing a Data Culture and Building a Data Ecosystem” attracted significant interest from Members and the private sector. The experienced speakers from Member Customs administrations, the private sector and the Secretariat enriched the discussions by sharing their best practices on using data for enhancing risk management and monitoring AEO programmes.
As a way forward, the SWG agreed that efforts will be reserved for a comprehensive review to assess and monitor SAFE implementation for greater harmonization of AEO programmes globally.
China has mandated a strict “zero COVID” policy since the onset of the global pandemic, which has led to tight lockdowns across the country whenever cases have started to spike.
Recently, lockdown restrictions have been enacted in major cities like Shenzhen and Shanghai, as China deals with one of its worst outbreaks since Wuhan in December 2019.
These cautionary measures have had far-reaching impacts on China’s economy, especially on its supply chain and logistics operations. Shanghai’s port system, which handles about one-fifth of China’s export containers, is currently experiencing significant delays as a result of the recent government lockdown.
Shipping volume has dipped drastically since early March this year, right after partial lockdowns began in Shanghai. By the end of March, as restrictions continued to tighten up, shipping activity dipped nearly 30% compared to pre-lockdown levels. And while activity has recently picked up, it’s still far below average shipment volumes prior to the recent lockdown.
While the port is still technically operating, shipping delays will likely cause hiccups in the global supply chain. That’s because the Shanghai port is a major hub for international trade, and one of the largest and busiest container ports in the world.
How Bad is the Back-Up?
Here’s a closer look at satellite imagery that was captured by the Sentinel-1 satellite, which shows the current congestion at Shanghai’s port as of April 14, 2022. In the image, a majority of the white dots are cargo ships, many of which have been stuck in limbo for days.
Traffic has been building up at the Shanghai terminal. As of April 19, 2022, over 470 ships are still waiting to deliver goods to China. If you’d like to check out the Shanghai ports most up-to-date traffic, this live map by MarineTraffice provides real-time updates.
Much of these delays are due to transport issues—an estimated 90% of trucks that support import and export activities are currently offline, which is causing dwell time for containers at Shanghai marine terminals to increase drastically.
Wait times for at Shanghai marine terminals has increased nearly 75% since the lockdowns began. Delays at the Shanghai terminal have sent ships to neighboring ports in Ningbo and Yangshan, but those ports are beginning to get congested as well.
The global impacts of this current bottleneck are still pending, and depend greatly on the length of Shanghai’s lockdown. According to an article in Freight Waves, this could turn into the biggest supply chain issue since the start of the pandemic if China’s marine shipping congestion isn’t cleared up soon.
Last year, the ports and the private sector moved a historic amount of goods with record holiday sales and delivery times below pre-pandemic levels. Currently, real retail inventories excluding autos are six percent higher than at the end of 2019 and products at grocery and drug stores are 90 percent in stock, just 1 percentage point below pre-pandemic levels.
The US government is also focused on addressing the longer-term weaknesses in our nation’s supply chains, the result of decades of underinvestment, outsourcing, and offshoring instead of investment in long-term security, sustainability, and resilience. The Bipartisan Infrastructure Law (BIL) is now making a generational investment in our ports, highways, and other parts of our physical infrastructure, which will help speed up the movement of goods and lower costs. But we can further strengthen our goods movement supply chains by making a similarly bold improvement in a digital infrastructure to connect the supply chain.
To take the first step toward addressing this challenge, the US government is announcing the launch of Freight Logistics Optimization Works (FLOW), an information sharing initiative to pilot key freight information exchange between parts of the goods movement supply chain.FLOW includes eighteen initial participants that represent diverse perspectives across the supply chain, including private businesses, warehousing, and logistics companies, ports, and more. These key stakeholders will work together with the Administration to develop a proof-of-concept information exchange to ease supply chain congestion, speed up the movement of goods, and ultimately cut costs for American consumers. DOT will lead this effort, playing the role of an honest broker and convener to bring supply chain stakeholders together to problem solve and overcome coordination challenges. This initial phase aims to produce a proof-of-concept freight information exchange by the end of the summer.
Recent supply chain disruptions have raised national awareness of the need for improved information exchange. Supply chain stakeholders deserve reliable, predictable, and accurate information about goods movement and FLOW will test the idea that cooperation on foundational freight digital infrastructure is in the interest of both public and private parties. FLOW is designed to support businesses throughout the supply chain and improve accuracy of information from end-to-end for a more resilient supply chain.
Resiliency—the ability to recover from an unexpected shock—requires visibility, agility, and redundancy. The lack of digital infrastructure and transparency makes our supply chains brittle and unable to adapt when faced with a shock. The goods movement chain is almost entirely privately operated and spans shipping lines, ports, terminal operators, truckers, railroads, warehouses, and cargo owners such as retailers. These different actors have made great strides in digitizing their own internal operations, but they do not always exchange information with each other. This lack of information exchange can cause delays as cargo moves from one part of the supply chain to another, driving up costs and increasing goods movement fragility.
Blockchain may one day eliminate inefficiencies and lack of transparency in supply chains. While slow in coming, this revolution would benefit not only customers and brands, but the “invisible” workers who power global trade.
In this episode of Bloomberg’s System Shock, we explore how cumbersome, paperwork-bound supply chains—like one stretching from kitchen refrigerators in Europe and the U.S. all the way back to a small farmer in Ecuador—are being transformed by that most modern of technologies.
The Minister of Transportation, Chibuike Amaechi, has urged contractors of the Lekki Deep SeaportProject to speed up work to enable the government approve all the necessary processes before the next election.
Mr Amaechi made this known in a statement on Saturday while inspecting the ongoing construction of the Lekki Deep Seaport Project in Lagos.
He, however, commended the contractors for the progress of work done so far stating that in less than five months, a lot of civil work had been done.
“I want to congratulate you for the very huge progress. By the time we came here, there were no civil works; it was just pure sand. You have tried.
“I am suggesting that if you work day and night you will go far and complete the work before commissioning. If the President sees it, approval will be easier.
“You need to speed up the work so we can get approval from the government side before election, process of election will be completed in July.
“This is because by law, six months to election people start politics and if you wait till that time, you won’t meet anyone in the office,” he said.
Mr Amaechi, however, said that the port should be automated to avoid all forms of physical contact.
Speaking during the tour, the Chief Technical Officer, Lekki Port, Steven Heukelom, explained that construction work on the project was on course and as scheduled.
He noted that dredging and reclamation works had reached 89.93 per cent completion, Quay Wall 85.65 per cent completion, Breakwater 79.66 per cent completion, and the landside infrastructure development 67.82 per cent completion.
He added that this brings total works carried out on the project to approximately 80 per cent completion stage.
Mr Heukelom also informed the minister that work had commenced on the marine services jetty, which the NPA would use to carry out their marine services obligation.
He commended the Acting Managing Director, Mohammed Bello-Koko, for the support and partnership in preparing the port to start operations.
Mr Bello-Koko reaffirmed the agency’s readiness to provide marine services for the port’s operations.
To this end, he disclosed that NPA was procuring tug boats and other necessary infrastructure for the smooth take-off of the Port.
In his remarks, the Chief Operating Officer of Lekki Port, Laurence Smith, reaffirmed the company’s commitment to delivering the project by the fourth quarter of 2022.
He noted that the EPC Contractor, China Habour Engineering LFTZ Enterprise, was working day and night to make this commitment a reality.
Mr Smith expressed confidence that the Port, upon completion, would be a world-class port and would become a regional distribution and transhipment hub for the African region.
The News Agency of Nigeria reports that Lekki Port is being developed by Tolaram and China Harbour Engineering Company.
The Lagos State Government and NPA are also shareholders in the project company.
The port is scheduled to start port operations by the end of 2022.
Former SpaceX engineers banded together to create a new startup looking to make electric and autonomous railway vehicles to revolutionize rail-based freight transport. They have a big task ahead of them.
The railway business is a tough one to break into. It’s a static oligopoly dominated by a few giants sitting on their railroad rights and making minimal investments to maximize profits.
Over the years, railroads were privatized in North America, and the businesses have no issues closing smaller railroads. They often close smaller railroads when they can’t find a way to make money off of them and focus on the most profitable routes with longer trains – often as long as 3 miles.
Despite those issues, freight trains have remained a good solution since they are about four times as efficient as trucks. But, with trucks expected to become electric and autonomous in the coming years, they are going to close the efficiency gap with trains.
Now Matt Soule, a former long-time SpaceX engineer, has partnered with former colleagues at Elon Musk’s space company to launch a new startup, Parallel Systems, developing new electric and autonomous vehicles.
The company just raised $50 million in a Series A funding round and came out of stealth mode with an article in Fortune. The idea is to create small autonomous electric-powered rail vehicles that can enable a different way to use railroads.
As for the vehicle itself, Parallel Systems vehicles can carry 128,000 pounds, which is more than twice the capacity of a semi-truck. The vehicles have a range of 500 miles on tracks and can charge in about an hour.
Visit Elecktrek’s webpage for the full article and related media.
Unlike the previous versions where the WCO DM was made available on the WCO Members’ website in a downloadable format, version 3.11.0 of the WCO DM is being released on a new publication platform: the WCO DM app. This app interactively displays WCO DM components and aims to enhance the user experience of working with the WCO DM. In so doing, it helps users navigate through different WCO DM data objects, such as classes, data elements and information models, more easily.
The publication of version 3.11.0 in December 2021 marks the culmination of the maintenance process undertaken by the DMPT in its meetings held from September 2020 to April 2021.
In addition to incorporating changes requested by Members through the regular maintenance procedure, version 3.11.0 introduces two new Message Implementation Guides (MIGs) – for implementing the IMO Compendium and WCO-UPU Joint Message Standards.
The MIGs offer practical guidance and additional technical information useful for implementation of the DM, in addition to the semantic definitions available in the Base Information Packages (BIPs) and/or Derived Information Packages (DIPs).
The IMO MIG includes technical information for implementing ship reporting formalities outlined in the Convention on Facilitation of International Maritime Traffic (FAL Convention). This MIG is the result of the joint efforts of the WCO and the IMO in updating the IMO Compendium on Facilitation and Electronic Business.
The UPU MIG contains technical information relating to primary electronic message formats, namely CUSITM, a message for a postal operator to transmit mail item information to its local Customs authority, and CUSRES, a message to respond to a CUSITM message.
In accordance with the Council Decision of December 2020, the WCO DM package published in the DM app is available free of charge to all interested parties, including Members, partner international organizations and private-sector stakeholders. All those interested in accessing the WCO DM will be able to take advantage of the app after accepting the WCO DM use terms and conditions. The app is accessible at http://datamodel.wcoomd.org.
The fire on board the X-Press Pearl is reported under control at an anchorage off the coast of Colombo, Sri Lanka, but fire-fighting efforts are continuing, according to the vessel’s operator.
The Sri Lankan Navy continued its response to the incident over the weekend with three tugs from the Sri Lankan Ports Authority on site conducting cooling operations on containers near the fire. At times, the fire flared up with visible flames (see photo below) coming from containers above deck, the Navy said over the weekend.
The fire on board the X-Press Pearl was first reported Thursday as the ship was awaiting entry to Colombo harbor at an offshore anchorage.
The Navy said the ship is carrying 1,486 containers, including 25 tons of Nitric Acid and other chemicals which it had loaded at the port of Hazira, India on May 15. Preliminary investigations indicate the fire started due to a chemical reaction of the hazardous cargo.
All 25 crew members are reported safe, the ship’s operator reported Monday. Meanwhile a salvage team from SMIT has boarded the vessel for an assessment.
“Fire/smoke still remain on board the vessel but is currently under control. More firefighting tugs have been deployed and they will continue to fight the fire. The salvage team with fire experts and firefighters are already on board the vessel and are carrying out the risk assessment. They have already taken steps to stop the spreading of fire into other areas,” X-Press Feeders said in its update.
“We have been advised that special firefighting equipment will arrive tomorrow. We therefore remain hopeful that the fire will be put out by the salvage team at the soonest time possible,” it added.
Trade solutions multinational DP World has completed the first transit import through the DP World Maputo port, in Mozambique, to DP World Komatipoort, in South Africa.
This is a significant milestone as it demonstrates that the Maputo port can be seamlessly used as a gateway to South Africa, the company says.
International container imports landed in the Maputo port and destined for the South African hinterland can be moved under bond to Komatipoort where full customs clearance can be provided and made ready for delivery across South Africa.
“The Komatipoort facility as a bonded container depot is a game changer for the Maputo Corridor. The success of the trial brings DP World a step closer to enabling a more cost effective, seamless and efficient user experience for our local customers and enhances trade linkages for countries in the Southern African region,” DP World Maputo CEO Christian Roeder says.
Currently, in South Africa, 69% of maritime imports are transported through the Port of Durban. Local customers now have the option to consider using the Maputo port as a gateway to transport their international freight to Komatipoort where it can be cleared more easily and efficiently for customers based in and around Gauteng.
DP World Komatipoort has a full-service offering and links via the Maputo Corridor to DP World Maputo’s modern and efficient container terminal where there is no vessel and port congestion, as well as fixed berthing windows available to major shipping lines, which provides customers with transport savings and avoids delays for consignees in Mpumalanga, Limpopo and Gauteng.
Once a shipment is retrieved at the DP World Maputo port, the organisation handles the entire supply chain process from there to Komatipoort without delay and beyond to various areas in the hinterland. While the cost of this service varies per user, the service is estimated to be equivalent in costs or cheaper compared to traditional routing through Durban.
However, it is more efficient, especially for the northern areas of the country, DP World note.
MSC Mediterranean Shipping Company, a global leader in container shipping and logistics, is officially introducing the electronic bill of lading (eBL) for its customers around the world, following a successful pilot phase, using a solution on an independent blockchain platform WAVE BL. The eBL enables shippers and other key supply chain stakeholders to receive and transmit the bill of lading document electronically, without any change or disruption to day-to-day business operations.
WAVE BL is a blockchain-based system that uses distributed ledger technology to ensure that all parties involved in a cargo shipment booking can issue, transfer, endorse and manage documents through a secure, decentralised network. Users can issue all originals, negotiable or non-negotiable, and exchange them via a direct, encrypted, peer-to-peer transmission. It’s also possible for users to amend documents. WAVE BL’s communication protocol is approved by the International Group of Protection & Indemnity Clubs, and meets the highest industry standards for security and privacy.
“MSC has chosen WAVE BL because it is the only solution that mirrors the traditional paper-based process that the shipping and cargo transportation industry is used to,” says André Simha, Global Chief Digital & Information Officer at MSC. “It provides a digital alternative to all the possibilities available with traditional print documents, just much faster and more secure.”
The WAVE BL platform can be used free of charge throughout 2021 for exporters, importers and traders. Users only pay for issuing the original documents, and they do not need to invest in any IT infrastructure or make operational changes in order to use the service. They can simply sign up via MSC’s website: www.msc.com/eBL.
The European Union makes it a top priority to ensure the security of its citizens and single market. Every year trillions of Euros worth of goods are imported into EU, with the EU-27 now accounting for around 15 % of the world’s trade in goods. The European Union is implementing a new customs pre-arrival security and safety programme, underpinned by a large-scale advance cargo information system – Import Control System 2 (ICS2). The programme is one of the main contributors towards establishing an integrated EU approach to reinforce customs risk management under the common risk management framework (CRMF).
The pre-arrival security and safety programme will support effective risk-based customs controls whilst facilitating free flow of legitimate trade across the EU external borders. It represents the first line of defence in terms of protection of the EU internal market and the EU consumers. The new programme will remodel the existing process in terms of IT, legal, customs risk management/controls and trade operational perspectives.
The EU’s new advance cargo information system ICS2 supports implementation of this new customs safety and security regulatory regime aimed to better protect single market and EU citizens. It will collect data about all goods entering the EU prior to their arrival. Economic Operators (EOs) will have to declare safety and security data to ICS2, through the Entry Summary Declaration (ENS). The obligation to start filing such declarations will not be the same for all EOs. It will depend on the type of services that they provide in the international movement of goods and is linked to the three release dates of ICS2 (15 March 2021, 1 March 2023, and 1 March 2024).
Advance cargo information and risk analysis will enable early identification of threats and help customs authorities to intervene at the most appropriate point in the supply chain.
ICS2 introduces more efficient and effective EU customs security and safety capabilities that will:
Increase protection of EU citizens and the internal market against security and safety threats;
Allow EU Customs authorities to better identify high-risk consignments and intervene at the most appropriate point in supply chain;
Support proportionate, targeted customs measures at the external borders in crisis response scenarios;
Facilitate cross-border clearance for the legitimate trade;
Simplify the exchange of information between Economic Operators (EOs) and EU Customs Authorities.
For more information on the ICS2 programme, refer to the EU Webpage here!
In a statement, the IMO said the ‘Single Window for Facilitation of Trade (SWiFT) Project’ will develop a system in a pilot port to allow electronic submission, through one single portal, of all information required by various government agencies when a ship calls at a port.
The SWiFT project will be implemented by IMO in partnership with Singapore, the body said.
Regulations in IMO’s Facilitation Convention require electronic exchange of data, to ensure the efficient clearance of ships and the single window concept is recommended, to avoid duplication of effort.
Individual data elements should only be submitted once, electronically through a single point of entry, to the relevant regulatory agencies and other parties.
According to the IMO, the COVID-19 pandemic has emphasised the value of digitalisation and electronic exchange of required data is speedier, more reliable, efficient and COVID-secure than manual processes.
Under the pilot project, the selected country will be advised on the necessary legal, policy and institutional requirements for the MSW system. The port will then be provided with functional MSW software, hardware and/or IT services, configured to the country’s needs.
The pilot will be supported by Singapore via in-kind contributions and by IMO via the Integrated Technical Cooperation Programme (ITCP).
Kitack Lim, IMO’s Secretary-General, said, “Increased digitalisation supports greater efficiency which benefits the ship, the port and wider supply chain.
“We want to support countries in implementing the FAL Convention requirements for electronic data exchange, by supporting a pilot project which will show the way and result in know-how which can then be shared with others.”
Following the initial pilot and subject to funding availability, the aim is to replicate the pilot project in other IMO Member States in need of similar technical assistance, the IMO claimed.
Julian Abril, Head of IMO’s Facilitation Section, “Following implementation in the pilot port, the IMO-Singapore project endeavours to springboard countries in their digitalisation journey and unlock the full potential of their maritime sectors.
“It is only when most, if not all, ports undergo digital transformation, that the full benefits of digitalization can be realized by the maritime community.
“With support from IMO’s Department of Partnership and Projects, we envisage an increasing number of discussions with external partners and resource mobilization efforts to support an ambitious scaling-up plan for this pilot initiative.”