HMM’s 24,000 TEU boxship fleet is complete

Picture: HMM

South Korean container shipping line HMM has has completed its fleet of mega-ships with the unveiling of the 24,000 TEU HMM St Petersburg

The announcement marks the end of a two-year journey for HMM to provide “efficient and stable services” by using larger containerships. In an online update the carrier said all 12 of the vessels will be deployed on the Asia-Europe service.

The HMM St Petersburg was built by Samsung Heavy Industries (SHI) and delivered on September 11. Five of the vessels were built by SHI with the other seven by fellow Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME). 

Additionally, it will receive eight 16,000 TEU containerships from Hyundai Heavy Industries (HHI), due to be delivered in the second quarter of 2021. This will take its new fleet to 20. 

The 12 24,000 TEU vessels have been fitted with scrubbers and an optimised hull design that cuts emissions and increases fuel efficiency. 

The first vessel of the mega-ship fleet, the HMM Algeciras was unveiled in April 2020 and remains the largest in the world. 

South Korea’s maritime industry, in particular its shipbuilding sector, has suffered substantially since Hanjin Shipping went bankrupt in 2017.

Source: Port Technology, 15 September 2020

Indonesia, 12 cross-region countries agree to keep supply chains open

Top diplomats from 13 countries of a cross-regional network, including Indonesia, Singapore and Canada, have agreed on key principles of keeping transportation links and supply chains open to cushion the impacts of COVID-19 on global trade and economy.

Facilitated by Canada, the informal network called the International Coordination Group on COVID-19 (ICGC) consists primarily of half of the G20 countries — Brazil, France, Germany, Italy, Mexico, South Korea, Turkey and the United Kingdom — with the addition of Morocco, Peru and Singapore. It was recently established to look for a shared commitment to “promote and protect free trade” and other selected measures to tackle COVID-19.

The fresh declaration was made by foreign ministries of ICGC in a Friday evening teleconference, after it was deliberated at a recent senior officials meeting.

Going forward, Indonesian Foreign Minister Retno LP Marsudi said, any future cooperation “must be action-oriented” which would bring tangible benefits to the general public worldwide.

The declaration, despite its nature as a non-legally binding political declaration, aims at bolstering international norms and actions in handling the COVID-19 pandemic and to manage its social economic impacts. It identified a number of areas for concrete collaborative actions, outlining commitments to maintain an open flow of trade and investment, facilitate repatriation of stranded travelers, and to look for efforts to restore the post-pandemic global economy.

“We will continue to promote and protect free trade,”  the ministers said in the declaration, as quoted from a press statement on Saturday. “[…] and we agree that emergency measures designed to tackle COVID-19, if deemed necessary, must be targeted, proportionate, transparent and temporary, and that they do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO [World Trade Organization] rules.”

Singapore’s Foreign Minister Vivian Balakrishnan said on Facebook on Saturday that the ICGC ministers had reiterated the importance of maintaining global connectivity, “such as transport and supply chain links, which will help all our economies recover more quickly when the pandemic eventually subsides”.

The WTO had sounded the alarm on Wednesday that global trade could plummet by a third this year due to the coronavirus pandemic, warning the deepest recession “of our lifetimes” could be on the horizon.

North America and Asia would be hardest-hit and could see their exports plunge by 40 and 36 percent respectively, while Europe and South America could see declines of more than 30 percent, the WTO said. Keeping markets open to international trade and investment would help economies recover more quickly, we will see a much faster recovery than if each country goes it alone.

Following the declaration, the ICGC would now strongly advocate for other countries to take similar steps, with South Korea leading a conversation on best practices for emerging from the COVID-19 crisis.

“The COVID-19 pandemic is a global challenge. Maintaining strong coordination with our international partners is critical to mitigate the repercussions of the ongoing challenges we face,” Canada’s Foreign Minister François-Philippe Champagne said in a statement. “Keeping people, goods and services moving is key in both addressing these issues and ensuring the transition to a strong recovery.”

Source: Article by Dian Septiari, The Jakarta Post, 19 April 2020

As Maersk Line’s Triple E, The World’s Largest Cargo Ship, Preps For Maiden Voyage, Many Ports Can’t Handle It

5_triple-eThe world’s largest cargo ship is leaving its shipyard this week to prepare for its July 15 maiden voyage, but much of its cargo space will be under-utilized as many ports don’t have the ability unload the 20-story-high container stacks the vessel can lug between Asia and Europe.

The ship, a $185-million, 1,300-foot long behemoth with a capacity of 18,000 containers, is a gamble for the vessel’s owner, Danish group A.P. Møller-Maersk A/S. Freight, which has been so battered by the recent global economic downturn that at one point it had hundreds of cargo ships sitting idle in Singapore. The ship is so big, it’s essentially leap-frogged over many ports’ ability to off-load it when it’s at full capacity.

“We will operate it as a smaller ship for the first few months while ports upgrade their cranes,” Lars Jensen, head of Maersk Line’s Asia-Europe operations, told Dow Jones Newswires.

The problem is that ports lack gantries — those giant square-shaped cranes that slide over loaded cargo ships and pick up or drop off loaded containers — that can accommodate a fully loaded Triple E. So before Maersk can utilize the ship’s full capacity at major ports, many of those ports have to invest in upgrading, a process that could take years.

Dow Jones says 16 ports on the ship’s route are certified to handle it, but “several” lack the adequate crane ability to handle it when it’s fully loaded. So for now, the ship will have to haul less, which eats into the company’s potential profit. It will embark on its first journey on July 15 from Busan, South Korea, to Europe, after a stop at Singapore. Source: Seanews.com and International Business Times

 

Reform by Numbers – a reference work on Customs reform

The word ‘reform’ is a constant in the daily life of a customs officer. No customs administration among the 177 members of the World Customs Organization has not had a reform program in progress or planned. This is ultimately quite normal.A new World Bank publication “Reform by Numbers” will no doubt appeal to customs and tax reform experts and change agents.

It was written in the context of new and innovative policies for customs and tax administration reform. Eight chapters describe how measurement and various quantification techniques may be used to fight against corruption, improve cross-border celerity, boost revenue collection, and optimize the use of public resources. More than presenting ‘best practices’ and due to the association of academics and practitioners, the case studies explore the conditions under which measurement has been introduced and the effects on the administrative structure, and its relations with the political authority and the users. By analyzing the introduction of measurement to counter corruption and improve revenue collection in Cameroon, two chapters describe to which extent the professional culture has changed and what effects have been noted or not on the public accountability of fiscal administrations. Two other chapters present experiments of uses of quantification to develop risk analysis in Cameroon and Senegal.

By using mirror analysis on the one hand and data mining on the other hand, these two examples highlight the importance of automated customs clearance systems which collect daily extensive data on users, commodities flows and officials. One chapter develops the idea of measuring smuggling to improve the use of human and material resources in Algeria and nurture the questioning on the adaptation of a legal framework to the social context of populations living near borders. Finally, two examples of measurement policies, in France and in South Korea, enlighten the diversity of measurement, the specificities of developing countries and the convergences between developing and developed countries on common stakes such as trade facilitation and better use of public funds.

The “gaming effect” is well known in literature about performance measurement and contracts performance, because there is a risk of reduced performance where targets do not apply, which is detrimental to the overall reform. It is crucial to keep in mind that, by themselves, indicators “provide an incomplete and inaccurate picture” and therefore cannot wholly capture the reality on the ground. Measurement indicators must be carefully chosen to ensure that knowledge is being uncovered.

Measurement, for purposes of reform, should not be “copied and pasted” from one country to another. Due consideration must be given to the varying aims of the customs service and the specific political, social, economic, and administrative conditions in the country.

Measurement applied to experimentation is also about how donors, experts, and national administrations work together. On the one hand, national administrations in developing countries ask for technical assistance, standards, and expertise that are based on experiences of developing countries and use experts from such countries.These requests encourage the dissemination of such models. On the other hand, reforms of customs or tax administrations are represented as semi-failures in terms of the initial expected outcomes set by donors and politicians – usually the end of a reform is the time when donors and local administrations become aware of the gaps of their own representations of success.

While scientific and academic in approach, lets hope it means more than just miserable experimentation in target countries.

The book is available for free reading online – www.scribd.com or you can purchase from amazon.com.