Archives For containerisation

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A new collapsible 20ft container, which is currently in development, promises to save operators both money and space both at the terminal and in the supply chain, according to Port Strategy.

Navlandis’s ZBox claims to be able to take the place of empty containers, which take up around 25% of sea traffic, slashing both logistics and transportation costs.

This is because five folded units can fit into the space occupied by a current standard container potentially reducing operating costs by up to 50% and CO emissions by up to 20%.

This container has the same strength as conventional containers. In addition, it can be handled with the same machinery at all freight ports and with minimum human resources, which will make operating costs much more competitive.

The technology is still at prototype stage but reportedly has the backing of the Port of Valencia. Navlandis said that a good number of shipping companies have shown interest too.

Navlandis said that the 20-foot container complies with all ISO and CSC certifications, ensuring all loading, resistance and watertightness requirements of the logistics industry, with the same dimensions as a standard container. In addition, it is manufactured with the same parts as the standards require. Source: Port Strategy

Saldanha Bay South AfricaRecently while reading of Transnet’s terminal capex expansion plans, I came across this interesting if not highly improbable plan featured in an article by Harry Valentine on Maritime Executive. I say improbable given the current economic and labour situation prevailing in South Africa at this time, not to mention the fact that the Transnet controlled Port of Ngqura is considered South Africa’s transhipment hub. Nonetheless, I think its admirable that such ideas are conceived and with a bit of thought and application are presented for consideration. From a Customs’ perspective such plans – in particular the notion of a floating terminal – could pose some interesting challenges (err opportunities) for SARS particularly given impending new compliance, licensing and reporting requirements contained in the new Customs Control Act. 

The Port of Los Angeles has welcomed its first 18,000-TEU ultra-large container ship, and Brazil, with a population almost as large as the U.S. and with future prospects of increased trade with Asia, could see such ships arriving via South Africa.

The projected future volume of container traffic that will pass through Brazilian ports would warrant future operation of ultra-large container ships between Brazil and major Asian transshipment terminals. However, it would take much investment and likely many years before a Brazilian port and terminal would be able to berth and service these vessels. One option would be to develop a transshipment port in South Africa that could serve as a terminal for ultra-large container ships that sail from such ports as Busan, Inchon, Shanghai and Hong Kong carrying containers destined for South America.

South Africa offers two bays capable of accepting ultra-large container ships. Richards Bay in the Northeast offers a draft clearance of 19 meters, while Saldanha Bay just north of Cape Town offers a draft of 21 meters. Bulk and ore freight terminals operate at both locations. Saldanha Bay is larger than Richard’s Bay, located near the large City of Cape Town and is closer to the shipping lane between South America and the Far East. It is also close to St. Helena Bay where waiting vessels may drop anchor.

When Richards Bay is at capacity, alternative areas where waiting vessels may drop anchor with a measure of protection from stormy seas are located at much greater distances. The Port of Durban is still Africa’s busiest container port and regularly operates at near-capacity. However, Durban and companion ports at Maputo, Port Elizabeth, Coega, East London and Cape Town have insufficient depth to accommodate ultra-large container ships. Saldanha Bay is a natural inlet that offers the necessary depth and has available space to develop a transshipment terminal to the south of the ore terminal.

There are tentative plans to borrow a precedent from Egypt and anchor a floating LNG storage tanker in Saldanha Bay, perhaps near the southern end of the inlet, to serve a variety of customer requirements. Tanker vessels could regularly carry LNG from Mozambique, Tanzania and Angola to the floating storage terminal. Operational precedents established at the Port of Durban could ensure smooth operation of maritime vessels entering and leaving Saldanha Bay, especially with excess vessels being able to drop anchor in St. Helena Bay as well as nearby Table Bay at Cape Town some 60 nautical miles away.

Future ultra-large container ships of 22,000 TEUs would offer savings in terms of average cost per container on the segment between Saldanha Bay and distant East Asian ports at or near the South China Sea. Automated terminal operations that include transfer of containers among vessels could contribute to competitive transportation costs to a variety of destinations along South America’s Atlantic coast as well as several South African ports, perhaps extending as far north as Nigeria on the Atlantic Coast (Asia – Africa trade), Tanzania on the East Coast (Africa – South America trade), as well as domestic Africa -Africa trade.

While South Africa’s economy may presently be under-performing, South African authorities have the option of inviting foreign investors and developers to explore the option of developing a transshipment super port at Saldanha Bay. Future trade through Saldanha Bay would include containers sailing to and from East Asian transshipment terminals such as Port of Colombo and Port of Singapore to connect into the combination of West Coast Africa – Asia and Atlantic Coast South America -Asia trade. Such combined trade enhances prospects for potentially viable transshipment port and terminal operations at a South African bay.

A transshipment super port at the southern end of the African continent would mostly transfer containers that originate from and be destined for foreign ports. Only a minority of the containers would originate from or be destined for domestic South African ports. South African exporters and importers would benefit from lower transportation costs per container compared to the transportation costs per container aboard smaller vessels.

It’s an idea worth considering.

Floating Islands

Cape Town is at the crossroads of ships that carry the trade between Asian nations and nations along the Atlantic Coast of South America and sub-Sahara West Africa. There may be future scope for an offshore, floating transshipment terminal built at Saldanha Bay and assembled either at Cape Town or St Helena Bay to reduce per-container transportation costs along this trade route. Such a terminal would attract interest from overseas. A floating hotel partially surrounded by breakwaters and permanently anchored offshore near a coastal city could be connected to the mainland using floating bridges and water taxi service.

There may be scope to expand upon the technology to develop multiple floating structures in a calm water area, with bridges connecting between them at strategic locations to maintain navigable canals between them. While water taxis could shuttle visitors between mainland and an offshore floating island, semi-floating bridges could also connect between mainland and such islands that may include business districts and even residential areas.

Coupled floating structures may also serve as an airport with a runway for commuter size of aircraft and perhaps even comparable size of wing-in-ground effect vehicles that provide service between coastal cities.

Source: article by Harry Valentine.

Container weighingThe responsibility for verifying the gross weight of loaded containers under next year’s new box-weighing rules will in many cases rest with freight forwarders, logistics operators or NVOCCs, according to freight transport insurance specialist TT Club.

Welcoming the initiative of the World Shipping Council (WSC) in its recent publication of guidelines to the industry in relation to implementing the SOLAS requirements that become mandatory on 1 July 2016, TT Club noted that unlike the CTU Code, which forensically seeks to identify the chain of responsibility for everyone involved in the movement of freight, the amendment to the Safety of Life at Sea Convention (SOLAS) mandating the verification of gross mass of container overtly only names the ‘shipper’, the ‘master’ and the ‘terminal representative’, and – by implication – the competent authorities.

TT Club said the complex nature of logistics means that the term ‘shipper’ may encompass a range of people involved in the contracting, packing and transporting of cargo. However, as stated in the WSC guidance, it said the key commercial relationship in question is with the person whose name is placed on the ocean carrier’s bill of lading.

“Thus, in many cases, the responsibility for actual ‘verified’ declaration will rest with a freight forwarder, logistics operator or NVOC. This means that often reliance will have to be placed on others to have adequate certified methods to provide verified gross mass – particularly for consolidation business,” TT Club said.

It noted that of course many suppliers of homogenous shipments will already have advanced systems, which merely require some form of national certification, adding: “Apart from having a sustainable method by which the gross mass is verified, the shipper also needs to communicate it (‘signed’ meaning that there is an accountable person) in advance of the vessel’s stow plan being prepared.

“The information will be sent by the shipper to the carrier, but with joint service arrangements there may be a number of carriers involved, with one taking responsibility to consolidate the manifest information, in addition to communication with the terminal.”
It said the ‘master’ comprises a number of functions within the carrier’s organisation.

“Implicit in the SOLAS amendment is that the carrier sets in place processes that ensure that verified gross mass is available and used in planning the ship stow,” TT Club said. “Arguably, each carrier will need to amend systems and processes to capture ‘verified’ information.

“However, the simplest might be to amend the booking process, so that the gross mass information is left blank in the system until ‘verified’ data are available. This will be effective if it is clearly understood by all partner lines and terminals with whom the line communicates.”

TT Club said the explicit obligation of the master was simply that he shall not load a container for which a verified gross mass is not available. “This does not mean that one with a verified gross mass is guaranteed to be loaded, since that would derogate from the traditional rights of a master,” the insurance specialist added.

Recognising the pivotal nature of the port interface, it noted that the ‘terminal representative’ has been drawn into the new regulation as a key recipient of information for ship stow planning “and, critically, in a joint and several responsibility not to load on board a ship if a verified gross mass is not available”.

It added: “There has been considerable debate as to whether terminals need to position themselves to be able to weigh containers, not least because of the cost of creating appropriate infrastructure, and amending systems and procedures, with uncertain return on investment. In addition there are commonly incidences of containers packed at the port, in which case the terminal activities could include assisting the shipper in producing the verified gross mass.

“The SOLAS amendment places responsibility on national administrations to implement appropriate standards for calibration and ways of certifying. The overtly named parties rely on this to work smoothly and, preferably, consistently on a global basis.”
TT Club said clarity of such processes needed to be matched by consistency in enforcement. “Talk of ‘tolerances’ is disingenuous,” it said. “SOLAS calls for accuracy. Everyone appreciates that some cargo and packing material may be hygroscopic, thereby potentially increasing mass during the journey, but that need not mask fraudulent activity, nor entice over-zealous enforcement.”

It said the UK Marine Guidance Note may be instructive here, stating that enforcement action will only be volunteered where the difference between documented and actual weight exceeds a threshold. TT Club concluded: “It is suggested that key measures of success of the revised SOLAS regulation will include not only safety of containerised movements, but also free movement of boxes through all modes of surface transport, and a shift in behaviour and culture throughout the unit load industry.”

TArtist's Illustration -DEME Grouphe Maritime and Port Authority of Singapore (MPA) has signed a milestone contract for the construction of the first phase of a new $1.82 billion mega port in Singapore.

The contract was awarded to a joint venture between the Dredging International Asia Pacific Ltd., a subsidiary of Belgium’s DEME Group, and South Korea’s Daelim.

The project, formally known as the Tuas Terminal Phase 1 Reclamation, Wharf Construction and Dredging Project, entails the construction of a new port terminal with 20 deep-water berths having a total capacity of 20 million twenty-foot equivalent units (TEUs) per annum. The Joint Venture will be responsible for the construction of an 8.6-kilometer quay wall and its foundation, the dredging of the fairway and basins, as well as the reclamation of 294 hectares of new land.

This major project is expected to complete within six years, and has been awarded to the Joint Venture for a Contract value of SGD 2.42 billion (or approximately US $1.82 billion).

Beginning in 2030, the Government of Singapore will start to consolidate its container port facilities at Tuas. New technology will be introduced at the greenfield site to create a hypermodern, innovative and largely automated logistics hub. The consolidation will also free up existing port land near the city centre for future urban redevelopment.

The Tuas Terminal Project is anticipated to ensure that Singapore’s leading global hub port continues to have sufficient capacity in the long term to meet industry demand.

Singapore ranks as the world’s second busiest container port handling 33.9 million 20-foot containers in 2014, according to the MPA. The Port of Shanghai ranks as number 1 with 35.2 million TEU in 2014. Source: Gcaptain.com

AlixPartners 2014 Outlook for Container ShippingThe 2014 outlook for the container shipping industry appears bleak. According to AlixPartners’ 2014 Container Shipping Outlook, the industry as a whole remains buried under a growing mountain of debt amid continued market turbulence. And this is hardly breaking news. With few exceptions, the industry has struggled for the better part of the past decade. What is new is the impact that that widespread financial distress is finally having on carriers and other key stakeholders: we are now seeing a number of profound structural changes to the industry—changes that may result in broad-ranging impacts on the major market participants.

For detailed analysis download the full report from AlixPartner’s website. Source: alixpartners.de