Volumes of dry bulk cargo rose 16.4% y-o-y to 11.5 million tonnes. The growth should be primarily attributed to increased exports of coal to 8.6 million tonnes (+20.2%) and grain to 2.6 million tonnes (+24.4%). In the reporting period, the company also increased exports of ferrous-based alloys to 144,400 tonnes (+160.2%). Transshipment of pet coke totaled 117,400 tonnes.

Transshipment of general cargo rose 4.6% to 6.4 million tonnes including 5.9 million tonnes of ferrous metal (+13.5%). In the general cargo segment, the company increased exports of pellets by 42.2% to 290,700 tonnes amid the EU energy policy focused on pellet fuel.

The last quarter of 2017 saw a continued decline in handling of equipment and mineral fertilizers which had a negative impact on the year-end results (down to 24,700 and 103,900 accordingly). Downward trend in mineral fertilizer volumes is attributed to the client's partial shifting of this cargo flow to other sea terminals of the Baltic States. Transshipment of equipment fell following a reduction of procurement from foreign countries and redirection of some cargoes to other terminals of Russia.

Exports / imports share of the company's total throughput in 2017 was 99.6% / 0.4%, accordingly.

In 2017, the company's services on sea tonnage charter totaled 1 million tonnes.

About Universal Forwarder
Universal Forwarder LLC is a logistic services provider within the international transportation group UCL Holding. The Company is headquartered in Moscow and has offices in St.Petersburg, Tuapse, Taganrog and Ust-Luga. The range of services includes handling of project, general, Ro-Ro and other types of cargo at sea and river ports in Russia and elsewhere, as well as forwarding, agency, sea/river charter services and rail cargo delivery.

Press Release Date 12 February 2018

"We must get to grips with Industry 4.0, with digitalization and how this will change supply chains. We must develop the port to enable it to play a prominent role," Frank Horch, Hamburg's Senator for Economics, Transport and Innovation, said.

"We will improve the infrastructure, implement the fairway adjustments and secure good general conditions," Horch added.

Once the adjustment to the Elbe fairway is finalized, the port will be able to handle more containers and bulk cargo.

"Terminals and other port facilities are well prepared for growth. Increased draft on the Elbe and simplification of manoeuvring by the construction of a passing zone on the Elbe downstream from Hamburg will facilitate more efficient use of hold capacities and crucially simplify passing for ultra-large vessels," Ingo Egloff, HHM Executive Board colleague, added.

In the last business year, the port saw a stable handling result comparable with the previous year.

At 136.5 million tons, in 2017 seaborne cargo throughput in Hamburg, comprising general and bulk cargoes, was stable at a high level. A slight downturn occurred in handling of containerized general cargo at 8.8 million TEU, being one percent lower. At 44.7 million tons, the bulk cargo total was at the previous year's level.

In 2017 Hamburg received 102 calls by ULCVs in the size bracket 18,000 to 20,000+ TEU, a rise of 52.2 percent.

Furthermore, Egloff informed that positive effects on the flow of imports via the Port of Hamburg are expected from the revamping of Import VAT agreed in the current coalition deal in Berlin.

This would eliminate a long-standing disadvantage vis-à-vis the Netherlands, with importers in future able to deduct Import Tax immediately.

In Germany Import Turnover Tax has so far been paid immediately and only later allow for in advance notification of Turnover Tax.

February 15, 2018 by WorldMaritimeNews

Total cargo throughput rose by 1.3%, with the port returning to the growth trend seen before 2016, while total tonnage increased from 461 million to 467 million. The rise in containers was offset by a fall in dry bulk of 2.6% and in wet bulk of 4.1%, as break bulk went up by 7%.

"The port of Rotterdam has had a good year. Led by the container sector, goods throughput rose to a record level," Allard Castelein, CEO of the Port of Rotterdam Authority, commented.

"In financial terms, 2017 was a good year for the Port Authority, with higher turnover and a higher result before tax. As a result, we were able to maintain our high investments in, among other things, improvements to the port infrastructure," Paul Smits, CFO Port of Rotterdam Authority, said.

The high level of investment will allow the port to facilitate new and existing customers even better, Castelein said, adding that the port is also making progress in the field of digitalisation.

Container throughput rose by 10.9% to 13.7 million TEU and, by weight, by 12.3% to 142.6 million tonnes. In the second half of the year, tonnage throughput was 14.1% higher than in the same period in the preceding year.

Most growth was seen for Asia and South America and traffic from North America. Feeder volume in particular grew strongly (21% in TEU) for all European shipping areas and in particular Scandinavia and the Baltic states.

Regarding liquid bulk, the throughput of crude oil increased by 2.3% to 104.2 million tonnes, mainly due to the higher utilisation rates for the refineries.

Dry bulk fell 2.6% to 80.2 million tonnes, while Roll on/Roll off sector grew by 6.2%.

The Port Authority expects the throughput volume to increase further in 2018, with growth in the container sector being lower than the exceptional growth in 2017.

The Port of Rotterdam Authority booked a turnover of EUR 712.1 million in 2017, an increase of 4.6% by comparison with 2016. Net profit amounted to EUR 187 million, a fall of 16.6% due to the fact that the Port of Rotterdam Authority was subject to corporation tax with effect from January 1, 2017.

February 15, 2018 by WorldMaritimeNews

The port’s steady growth over the past five half years has meant that Rotterdam's share of the container market is now at its highest level since 2000 at 31% for 2017 through to Q3.

In its results, Port of Rotterdam stated that it expects the throughput volume to increase further in 2018, with growth in the container sector being lower than its growth in 2017.

Throughput on Maasvlakte 2, Port of Rotterdam’s most sustainable and automated terminal, rose sharply and volume increased at almost all other terminals.

Loaded containers coming through the port increased by 12.1% TEU, which outstripped the 6.1% rise in empty containers.

Rotterdam also handled more weight in 2017, upping its figure by 12.3% to 142.6 million tonnes.

In the second half of the year, tonnage throughput was 14.1% higher — 12.4% in TEU, than in the same period in the preceding year.

Rotterdam gained most of its growth from Asia and South America and traffic from North America.

The ports feeder volume grew 21% in TEU for all European shipping areas and in particular Scandinavia and the Baltic states.

Growth in short sea amounted to 10.2% TEU, with a sharp throughput increase for services to and from the Mediterranean and ScanBaltic.

The hinterland volume also rose by 6.3%.

This growth and the increase in feeder volume confirm the strong position of Rotterdam in the networks of container shipping companies and major alliances.

Allard Castelein, CEO of the Port of Rotterdam Authority, said: “The port of Rotterdam has had a good year.

“Led by the container sector, goods throughput rose to a record level.

“The container sector is particularly important because it plays an essential role in creating added value such as employment in the port and the hinterland.

“I am also satisfied with the high level of investment because it will allow us to facilitate our new and existing customers even better.

“And we can be happy with the pace at which we are implementing our plans for the energy transition and digitalisation.

“The Port Authority supports the goal stated in the Dutch coalition agreement to reduce CO2 emissions to 49% of the 1990 level by 2030.

“To make this happen, we are now appraising a large number of projects.

“We are also making progress in the field of digitalisation.

“Together with customers, our partners in the chain and digital platforms, we are making sure that the most promising digital innovations are being developed in Rotterdam.

“The Port Authority assumes an active role in the collection of data and information, and in making them available.

“The ultimate goal is to make the port and the logistics chains smarter and to safeguard the seamless throughput of traffic and goods.

“The port will also be faced with the inevitable challenges in 2018, with preparations for Brexit being one of the most important.”

February 16, 2018 by PortTechnology

Of this amount RUB 643.6 million (EUR 9 million) was spent for the purchase of handling equipment, expansion of the fleet of vehicles and modernization of the terminal's technological equipment.

In 2017, CTSP put into operation three new Konecranes RTG cranes, a Kalmar reach stacker with lifting capacity of 45 tonnes, Kalmar terminal tractors with lifting capacity of 65 tonnes and Toyota fork lift trucks of different capacity. The company also expanded its fleet of load gripping equipment.

Allocations for the development of the terminal's CCTV and security system and improvement of its IT infrastructure exceeded RUB 13.8 million (EUR 193,900). In particular, the technological transport was fitted with GPS sensors and fuel control sensors, new handling equipment was fitted with FWT units.

To improve its work with clients and facilitate execution of orders the company expanded the range of services in the part of electronic document management and added more web-services.

In 2017, CTSP retained its leadership among container terminals of Russia through systematic work on developing all aspects of production and business process.

About Container Terminal Saint-Petersburg
Container Terminal Saint-Petersburg CJSC (a company of UCL Port, stevedoring division of the international transportation group UCL Holding) is a modern container handling facility in the 4th cargo handling area of Big Port St. Petersburg. In 2017, the company handled 643.700 TEUs.

Press Release Date 16 February 2018

Under the deal, ING and EIB will each contribute EUR 150 million to the facility.

The facility is intended for clients with significant European interests, and can be used for projects with a green innovation element ranging from the construction of new vessels to retrofitting of existing vessels. It applies to both inland shipping and seagoing operators.

The EUR 300 million will be invested gradually over the next three years, with ING's shipping team leading and managing the commitment. The deal also benefits from the guarantee of the European Fund for Strategic Investments (EFSI), according to ING.

"I think it's no secret that the shipping sector is a major contributor to CO2 emissions. Climate action is one of the EIB's top priorities, and this type of financing should be seen as an incentive for shipowners to consider doing things differently, " EIB President Werner Hoyer said.

"The facility was set up after numerous discussions with Dutch counterparts from the public and private sector and aims to help the shipping sector transition to a greener future."

"This agreement helps us support our shipping clients into making changes to their business models by adapting for the future in increasingly sustainable way, and supports them throughout their green journey," Isabel Fernandez, Head of Wholesale Banking at ING, added.

Projects should be presented to ING and will be subject to ING's financial and non-financial risk acceptance criteria.

The facility is being set up under the umbrella of the Green Shipping Guarantee (GSG) Program, which is supported by the EU's Connecting Europe Facility (CEF) Debt Instrument and the European Fund for Strategic investments (EFSI).

The program is designed both for general fleet renewal and the retrofitting of ships with sustainable technologies (such as LNG, ballast water, energy efficiency, etc.).

February 19, 2018 by WorldMaritimeNews

It concerns a 8,000 tonnes GBF which was floated off the semisubmersible barge and towed to the installation location where the heavy lift vessel Rambiz in combination with an in-house designed ballast module set the structure down onto the seabed. The second GBF, weighing 10,000 tonnes, will be installed as soon as possible, depending on the weather conditions.

Once the foundations have been installed the most recent multipurpose vessel of Jan De Nul, Adhémar de Saint-Venant, will start with ballasting and scour protection works.

Both foundations were constructed by Jan De Nul Group on a barge in the Port of Ostend in Belgium. The barge was towed to Denmark on 8 January 2018.

About the Kriegers Flak Contract of Jan De Nul Group and Smulders
Jan De Nul Group and Smulders joined forces to build two Gravity Based Foundations (GBFs) for the high voltage station of the Danish offshore wind farm Kriegers Flak. Both foundations consist of a concrete part (GBF) and a steel structure on top. Jan De Nul Group was responsible for the design and construction of the concrete GBF, while Smulders took care of the design and construction of the steel shafts and decks placed on top. Jan De Nul Group is in charge of the installation of both GBFs, the ballasting and the placement of scour protection in the offshore wind farm Kriegers Flak in Denmark.

About the wind farm
The Danish wind farm Kriegers Flak, located in the Baltic Sea, will consist of two parts. Kriegers Flak A, the west section, will have a total capacity of 200 MW. The east section, Kriegers Flak B, will have a total capacity of 400 MW. Each section will dispose of its own substation, serving both for the future Krieger Flaks offshore wind farm as well as an interconnector between the Danish and German power net. By 2022, Denmark's to date largest offshore wind farm will start generating CO2-free electricity for approx. 600,000 households. The interconnector project is funded by the European Energy Programme for Recovery.

Press Release Date 19 February 2018

Namely, the sale of fuel for shipping in the Rotterdam bunker port was at 9.9 million m3, down from 10.1 million m3. At the same time, the volume of bunkered LNG surged from less than 100 tonnes to 1,500 tonnes.

The increase in LNG bunkers was mainly due to the world's first container ship, the Wes Amelie, that was converted to LNG propulsion. The vessel regularly bunkers at the City Terminal at the Prins Willem Alexanderhaven.

Last year, oil major Shell also put the ocean-going vessel Cardissa into use. The ship, which has Rotterdam as its work location, will supply customers throughout Europe with LNG from the Gate terminal in Rotterdam.

Around 1 to 1.5 million m3 of bunkered fuel oil consists of so-called 'ultra-low sulfur fuel oil' with a sulfur content lower than 0.1% (ULFSO). Ultra-low sulfur fuel oil has been used since 2015. At that time, the permissible sulfur content in fuel oil went from 1.0 to 0.1% in the ECAs (emission control areas) of the North Sea, the Baltic Sea and the coasts along the United States.

February 20, 2018 by WorldMaritimeNews

"We want our customers, the people who ship goods from one end of the earth to the other, to be able to do that while just dealing with Maersk," said CEO Soren Skou at an investor presentation. "We want to be able to carry the box from one port to the other, we want to be able to provide the inland service, customs house brokerage, finance the goods, insure the goods, and any other relevant services." Ultimately this business model would look much like the logistics service that consumers get from UPS or FedEx, he suggested.

Maersk also hopes to improve the bottom line by generating synergies of $400 million over the next two years. It foresees increased utilization at its APM Terminals division by directing more business from Hamburg Sud and Maersk Line. (Recently-acquired Hamburg Sud will operate on a joint network, but it will remain a separate brand.) Maersk Group will also combine the warehousing and depot infrastructure for its freight forwarder, Damco, with facilities for APM and Maersk Line.

APMT will not expand

At APM Terminals, revenue has been falling since 2015, and Maersk reported that some of its 74 terminals are financially weak. APMT has five new facilities under development - Moin, Costa Rica; Tema, Ghana; TM2, Tangier; Vado, Italy; and Abidjan, Ivory Coast - and it noted that these investments are not yet generating income and are weighing on APMT's return on invested capital. "We are working to complete the terminals that we have ongoing," said APMT CEO Morten Engelstoft. "We have no plans to initiate new greenfield projects anytime soon, and we are serious about our commitment to reduce the [capital expense] in our business."

February 20, 2018 by Maritime-Executive

Its evolving transition scenario, which assumes that government policies, technologies and societal preferences evolve in a manner and speed similar to the recent past, also predicts:

• Fast growth in developing economies will drive up global energy demand a third higher.
• Renewables will be by far the fastest-growing fuel source, increasing five-fold and providing around 14 percent of primary energy.
• Demand for oil will grow over much of Outlook period before plateauing in the later years.
• Natural gas demand will grow strongly and overtake coal as the second largest source of energy.
• Oil and gas together will account for over half of the world's energy.
• Global coal consumption will flatline, and it seems increasingly likely that Chinese coal consumption has plateaued.
• The number of electric cars will grow to around 15 percent of the car parc, but because of the much higher intensity with which they are used, they will account for 30 percent of passenger vehicle kilometers.
• Carbon emissions will continue to rise, signaling the need for a comprehensive set of actions to achieve a decisive break from the past.

The new Outlook was launched in London by Spencer Dale, group chief economist, and Bob Dudley, group chief executive. "We are seeing growing competition between different energy sources, driven by abundant energy supplies, and continued improvements in energy efficiency. As the world learns to do more with less, demand for energy will be met by the most diverse fuels mix we have ever seen," said Dale.

All the demand growth for oil comes from emerging economies. The growth in supply is expected to be driven by U.S. tight oil in the early part of the Outlook, with OPEC taking over from the late 2020s as Middle East producers adopt a strategy of growing market share.

The transport sector will continue to dominate global oil demand, accounting for more than half of the overall growth. Most of the growth in energy demand from transport, which flattens off towards the end of the Outlook, is expected to come from non-road (largely air, marine and rail) and trucks, with small increases from cars and motorbikes. After 2030, the main source of growth in the demand for oil is from non-combusted uses, particularly as a feedstock for petrochemicals.

Natural gas grows strongly over the period, supported by increasing levels of industrialization and power demand in fast-growing emerging economies, continued coal-to-gas switching and the increasing availability of low-cost supplies in North America and the Middle East. By 2040, the U.S. is expected to account for almost one quarter of global gas production, and global LNG supplies will more than double. The sustained growth in LNG supplies is expected to greatly increase the availability of gas around the world, with LNG volumes overtaking inter-regional pipeline shipments in the early 2020s.

Coal consumption flatlines over the Outlook period, with falls in China and the OECD offset by increasing demand in India and other emerging Asian economies. China is expected to remain the largest market for coal, accounting for 40 percent of global coal demand to 2040.

Renewable energy is expected to grow over 400 percent and accounts for over 50 percent of the increase in global power generation. This strong growth is enabled by the increasing competitiveness of wind and solar. Subsidies are expected to be gradually phased out by the mid-2020s, with renewable energy increasingly able to compete against other fuels. China is expected to be the largest source of growth, adding more renewable energy than the entire OECD combined, with India becoming the second largest source of growth by 2030.

All the growth in energy consumption is expected to be in fast-growing developing economies: China and India account for half of the growth in global energy demand to 2040. Through the period China's energy growth slows as it transitions to a more sustainable pattern of economic growth. India's slowing in demand growth is less pronounced and by the early 2030s it overtakes China as the world's fastest growing market for energy. In the latter stages of the Outlook, Africa also plays an increasingly important role in driving energy demand, contributing more to global demand growth from 2035 to 2040 than China.

In the Outlook's evolving transition scenario, carbon emissions rise by 10 percent by 2040. While this is far slower than the rates seen in the past 25 years, it remains higher than the sharp decline thought to be necessary to achieve the Paris Agreement.

"We need a far more decisive break from the past," concluded Dudley. "In BP, we continue to believe that carbon pricing must be a key element as it provides incentives for everyone to play their part – from consumers using energy more efficiently to producers providing more low-carbon forms of energy."

February 20, 2018 by Maritime-Executive

The European Commission said today that it had found that the Chilean maritime carrier CSAV, the Japanese carriers "K" Line, MOL and NYK, and the Norwegian/Swedish carrier WWL-EUKOR participated in a cartel concerning the intercontinental maritime transport of vehicles.

"All companies acknowledged their involvement in the cartels and agreed to settle the cases," the commission said.

The decision is related to an investigation launched back in September 2012, when EU Commission officials raided the premises of several providers of maritime transport services for cars and construction and agricultural rolling machinery.

The investigation has found that for almost 6 years, from October 2006 to September 2012, the five carriers formed a cartel in the market for deep sea transport of new cars, trucks and other large vehicles such as combine harvesters and tractors, on various routes between Europe and other continents, the commission added.

In addition, the investigation revealed that the carriers' sales managers met at each other's offices, in bars, restaurants or other social gatherings and were in contact over the phone on a regular basis.

"In particular, they coordinated prices, allocated customers and exchanged commercially sensitive information about elements of the price, such as charges and surcharges added to prices to offset currency or oil prices fluctuations," the commission said.

"The carriers agreed to maintain the status quo in the market and to respect each other's traditional business on certain routes or with certain customers, by quoting artificially high prices or not quoting at all in tenders issued by vehicle manufacturers."

The cartel is said to have affected both European car importers and final customers, as imported vehicles were sold within the European Economic Area (EEA), and European vehicle manufacturers, as their vehicles were exported outside the EEA.

In 2016, some 3.4 million motor vehicles were imported from non-EU countries, while the EU exported more than 6.3 million vehicles to non-EU countries in 2016, the commission's data shows. Almost half of these vehicles were transported by the carriers that have been fined today.

"The three separate decisions taken today show that we will not tolerate anticompetitive behavior affecting European consumers and industries. By raising component prices or transport costs for cars, the cartels ultimately hurt European consumers and adversely impacted the competitiveness of the European automotive sector, which employs around 12 million people in the EU," Commissioner Margrethe Vestager, in charge of competition policy, said.

MOL received full immunity

Japanese shipping company MOL received full immunity in the case since the start of the investigation because it revealed the existence of the cartel, thereby avoiding a fine of EUR 203 million.

CSAV, "K" Line, NYK and WWL-EUKOR benefited from reductions of their fines for their cooperation with the commission.

WWL-Eukor was hit with the highest fine worth EUR 207 million, NYK's fine amounts to EUR 141.8 million, "K " Line was fined with EUR 39.1 million and CSAV received a fine worth EUR 7 million.

"Whilst I deeply regret the outcome, we are pleased that the EC investigation has concluded. WWL group are committed to honest and fair business practices; this is an unfortunate part of our past and we must ensure it cannot occur again," WWL's CEO, Craig Jasienski, said.

The company said that it had made a provision for the outcome of the investigation, adding that the fine would not have a profit and loss effect.

During its investigation, the commission cooperated with several competition authorities around the world, including in Australia, Canada, Japan and the US.

The investigation has also resulted in finning of two suppliers of spark plugs with EUR 76 million, and two suppliers of braking systems with EUR 75 million, for taking part in cartels, in breach of EU antitrust rules.

February 21, 2018 by WorldMaritimeNews

The consortium includes dredging company Royal Boskalis Westminster from the Netherlands and construction companies Penta-Ocean Construction Company from Japan and Hyundai Engineering & Construction Company from South Korea.

As informed, the contract value is around SGD 1.46 billion (USD 1.11 billion).

Boskalis said it has received a letter of award from the Maritime and Port Authority of Singapore (MPA) for the project also referred to as Tuas Terminal Finger Pier 3. Boskalis' share in the consortium is 30% with a corresponding contract value of approximately EUR 300 million.

The contract is expected to be finalized in the next few weeks after the Chinese New Year.

The Tuas Terminal Phase II development is a part of the Tuas Port project and includes the design and construction of 387 hectares of land reclamation works bounded by 9.1 kilometers of caisson walls. The nearly 30 meter high caissons designed for this project will be amongst the largest ever used in the world, according to Boskalis.

Boskalis will do dredging and civil engineering works within the above scope. The dredging and land reclamation activities will be executed with a combination of a medium-sized trailing suction hopper dredger, grab and backhoe dredgers and long-distance bulk carriers.

The activities will commence in the coming weeks. The construction activities will take place over a 9-year time frame and are expected to be completed in 2027, Boskalis added.

The Tuas Terminal project includes four phases scheduled to be completed in 2040. The first phase of the construction began in April 2016 and is still ongoing.

The project is a centerpiece of Singapore's next-generation port vision entailing the consolidation of container port activities at all city terminals at Tanjong Pagar, Pasir Panjang, Keppel and Brani.

With a total capacity of up to 65 million TEUs, Tuas Terminal is expected to be the largest container terminal in the world able to accommodate mega-ships.

February 21, 2018 by WorldMaritimeNews

The recovery the container sector made last year is fragile and improved freight rates are likely to become a short-lived trend.

Specifically, as gains are starting to be reaped from the industry-wide efforts to bolster earnings, worries have emerged that a massive wave of tonnage influx may ensue since owners are rushing to the yards to rejuvenate their fleets ahead of the 2020 Sulfur Cap and BWMC implementation.

Namely, liner majors have broken the ordering silence from December 2015 seeing that companies such as Evergreen and Yang Ming have announced investments in 20-strong batches of boxships each.

The ordering spree was kicked off in the third quarter of 2017 when two container shipping giants, MSC and CMA CGM, ordered a total of twenty 22,000 TEU mega boxships at Korean and Chinese shipyards.

What is more, the ordering flurry is likely to continue as Hyundai Merchant Marine (HMM) readies to announce details of its mega-ship order.

However, according to Hapag-Lloyd's CEO, Rolf Habben Jansen, there is no room for overcapacity fears.

"I don't think we have to fear massive overcapacities again. If you count in that container shipping is still a growth industry at 4 or 5 percent per year, we might soon have a pretty balanced situation," Jansen said.

The figures correspond to BIMCO's demand growth forecast of 4.0- 4.5 pct against a fleet growth of 3.9 pct in 2018.

Hence, demand is still high enough to potentially improve the fundamental market balance.

Hapag-Lloyd, fresh from completing the integration of its business with United Arab Shipping Company (UASC), has no need to order new tonnage as UASC provided it with modern tonnage influx.

As disclosed earlier, Jensen believes that the consolidation in the sector would continue, further reducing the number of largest shipping firms as they merge their businesses, bringing the total to nine out of former 20 largest shipping companies.

February 22, 2018 by WorldMaritimeNews

Liners were the most successful at maintaining higher freight rates on the US-bound trade lanes, both east and west coast. On the other high-volume trades into the Mediterranean and North Europe, the announced General Rate Increases (GRI) lifted freight rates too, but to a smaller extent.

Liners always push for higher freight rates going into January. But, as fleet growth had overtaken demand by a large margin in the latter third of 2017, rates had been falling for six months going into January. Nevertheless, exports ahead of Chinese New Year in mid-February 2018, boosted demand to such an extent that rates into the US East Coast went up at the start of January 2018 and kept rising.

Most containers are moved on shorter hauls intra-Asia. For the full year of 2017, data provider CTS counted 40.9m TEU being transported between different Asian ports (+4.3% Y/Y). On the most important long-haul trades, CTS counted 18.5m TEU going from the Far East into North America (+7.3% Y/Y) and 15.8m TEU on the routes from the Far East into Europe (+3.7% Y/Y).

Demand also grew on the Far East to Sub-Saharan Africa trades, +5.9% for the full year of 2017 (2.8m TEU). Another ”lower volume trade” that grew strongly in 2017 was the Far East to South and Central America trade lanes – shipping 3.6m TEU during 2017, up by 10.7% on last year.

Either way you look at it 2017 was a strong year.

We always focus a lot on the front hauls – for good reason. Cargoes on the back hauls often only provide a bit of revenue to cover some of the costs of bringing the containership back to the Far East for another profitable pay load.

On 1 January 2018, a Chinese ban on specific imports came into effect. The ban covers the import of 24 types of waste – including waste paper and waste plastics. Commodity categories like “ores and scrap”, “pulp & waste paper” and “plastics in primary forms” often feature now amongst the top 5 commodities on many trades, with Asian-bound trades dominating.

At least for a while, the ban has turned the attention of industry and shippers back to the back-haul cargoes.

On the trade from North America to Asia, the number one commodity – by a margin – is “pulp & waste paper” accounting for 1.46m TEU in 2017 (source: MDST), with an estimated global total of 4-5m TEU that could be affected by the Chinese ban (source: Drewry). The volumes are not expected to be an outright loss. Much of the affected cargo seems to be heading for Indonesia, Taiwan and Vietnam. However, not all this type of cargo can expect to land there, as the now “unavailable” waste handling capacity in China is much bigger than the other waste handling facilities in the Far East combined.

Supply

The containership fleet has already expanded by 1.2% in the first month of 2018 – equal to the entire fleet expansion of 2016.

A flurry of new ships has been delivered in January. Not since July 2010 has such a massive inflow of capacity taken place in one month – 254,173 TEU. This includes plenty of feeder ships but also five ultra-large 20,000+ TEU ships. On the demolition side, three ships have been removed (a 320 TEU ship built in 1981, a 976 TEU ship built in 1990 and a 3,802 TEU ship built in 1998).

2017 saw a total of 398,000 TEU demolished, a level which is bound to decrease in 2018. BIMCO expects that 250,000 TEU will leave the fleet as the year progresses. Bringing a fleet growth of 3.9% as the newbuilt delivery is forecast to reach 1.05m TEU.

In 2018, the focus will be on the deployment of ultra-large containerships. 53 ships larger than 13,500 TEU are scheduled for delivery – we expect around 40 of them to be launched. In 2017, 55 ships of the same size were scheduled for delivery but only 43 were delivered.

New orders are also being placed at an increasing pace. The break in ordering from December 2015 through August 2017 was one to cherish.

The idle containership fleet has almost disappeared. Alphaliner counts only 65 ships on their list with a combined capacity of 191,441 TEU as of 5 February 2018. In real terms, this means that nominal fleet growth will have a bigger effect on the market balance, as the temporary idling and re-activation of ships becomes negligible.

Owners and investors were busy in the second-hand market in 2017. In fact, it was the busiest year on record. 297 ships changed hands, valued at USD 4,178m (source: VesselsValue). Panamax ships were in demand, more due to price than anything else – with 93 ships changing hands in total. Purchasing prices were equal to the demolition values of many of the ships, meaning there was little downside risk from the purchase. Since mid-2017 both demolition prices and second-hand values have gone up.

It all depends on timing – a 2009-built panamax ship (4,275 TEU) was valued at USD 13.7m in July 2016, USD 5.6m in January 2017 and USD 10.9m in January 2018. At the same time, the demolition value of the same ship was USD 4.6m, USD 5.6m and USD 8.1m. Meaning that deals done at January 2017 prices were equal to demolition values.

Outlook

The fact that demand growth slowed down towards the end of 2017 is also clear from the development in time charter rates, which peaked twice last year, around April/May and around mid-September 2017. Nevertheless, the upward trend was an encouraging one, as the dip following the second peak was not as low as the previous dip. For a 6,500 TEU ship, that development took time charter rates from USD 14,500 per day in April 2017, down to USD 10,000 per day in June and back up to USD 16,250 per day in September 2017. By early-February the rate was at USD 14,000 per day again. In all aspects time charter rates were mostly lossmaking – but 2017 did deliver considerably higher rates in comparison to the absolute lows of 2016.

What will the future bring? Overall demand growth is expected to be lower than in 2017, but still high enough to potentially improve the fundamental market balance. BIMCO forecasts demand to grow by 4.0-4.5% against a fleet growth of 3.9% in 2018. The IMF January update of its World Economic Outlook, significantly lifted expected GDP growth in advanced economies for 2018 and 2019, and growth in advanced economies is generally good for container shipping demand.

Watch out for the North American inbound loaded containers where we expect a change in 2018. We saw very strong growth in 2016 and 2017 for the US West Coast imports and in 2015 and 2017 for the US East Coast imports. We have yet to see the full effect of the elevated Bayonne Bridge allowing ultra-large containerships to pass and enter the New York/New Jersey (NYNJ) port. Loaded containerised imports into NYNJ were up by 6.0% for the full year of 2017 compared with the year before.

For the whole of the US East Coast in 2017, the amount of inbound loaded containers grew by 10.1%. It took the industry a while to embrace the expanded Panama Canal locks – but they are making use of them now. 2018 is likely to be the year where many container line networks calling the US East Coast will become fully up-scaled by deploying ultra large container ships.

February 22, 2018 by HellenicShippingNews

"The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World," the statement from the office of the President Ismail Omar Guelleh reads.

When approached by World Maritime News, DP World confirmed the contract termination, saying that the "Government of Djibouti illegally seized control of the terminal."

The decision comes on the back of a dispute between DP World and the government of Djibouti.

In 2014, Djibouti launched legal action against DP World for alleged bribing of Abdourahman Boreh, the head of the country's port and free zone authority, to secure the 30-year concession to run the DCT.

The port operator continued to operate the terminal during the court proceedings.

In February 2017, the London Court of Arbitration cleared DP World of all charges of misconduct in connection with the alleged bribery.

In 2006, DP World and the Djiboutian Government established a joint venture for the operation of DCT, located at the entrance of the Red Sea, in the second busiest shipping lane of the world.

DCT, launched in 2009, is capable of handling super Post Panamax containerships. The handling capacity of the terminal is planned to be extended to 3 million TEUs after the completion of Phase II.

February 22, 2018 by WorldMaritimeNews

The barge containing the GBF submerged, the heavy lift vessel Rambiz connected to the GBF through its crane hooks and towed out the structure once it started to float. An assisting tug subsequently towed the Rambiz together with the structure to its final installation location where the vessel in combination with an in-house designed ballast module set the structure down onto the seabed.

Both GBFs have been installed on a gravel bedding layer which has been accurately prepared by Jan De Nul Group's most recent multipurpose vessel Adhémar de Saint-Venant. As a result, this structure has been set down within a vertical accuracy of 0.01 degrees. A high-precision job under water.

The Adhémar de Saint-Venant will now start with the ballasting of the structures and the scour protection works around them.

Both foundations were constructed by Jan De Nul Group on a barge in the Port of Ostend in Belgium. The barge was towed to Denmark on 8 January 2018.

About the Kriegers Flak Contract of Jan De Nul Group and Smulders
Jan De Nul Group and Smulders joined forces to build two Gravity Based Foundations (GBFs) for the high voltage station of the Danish offshore wind farm Kriegers Flak. Both foundations consist of a concrete part (GBF) and a steel structure on top. Jan De Nul Group was responsible for the design and construction of the concrete GBFs, while Smulders took care of the design and construction of the steel shafts and decks placed on top. Jan De Nul Group is in charge of the installation of both GBFs, the ballasting and the placement of scour protection in the offshore wind farm Kriegers Flak in Denmark.

About the wind farm
The Danish wind farm Kriegers Flak, located in the Baltic Sea, consists of two sites: Kriegers Flak A, the Western section, with a total capacity of 200 MW, and the Eastern section, Kriegers Flak B, with a total capacity of 400 MW. Each section will dispose of its own substation, serving both for the future Krieger Flaks offshore wind farm as well as an interconnector between the Danish and German power net. By 2022, Denmark's to date largest offshore wind farm will start generating CO2-free electricity for approx. 600,000 households. The interconnector project is funded by the European Energy Programme for Recovery.

Press Release Date 23 February 2018

This is the findings of a Navis customer survey which found nearly 75% of terminal operators believe that automation in some form will be critical to stay competitive in the next 3-5 years.

"Within the next 20 years, I believe it's not only possible, but likely, that we'll see a fully autonomous transport chain. This could extend from loading and stowage of the container, autonomous sailing to its destination, unloading by automated cranes and then finally being loaded on to autonomous trucks and trains for the final destination," said Raj Gupta, CTO of Navis.

Wide scope

The 'Challenges and Opportunities for Automation' TechValidate survey focused on current views on the importance of automation, future plans for automation projects, perceived benefits and challenges, as well as projected improvements to productivity and operational costs achieved through automation.

Respondents believe automation can help them realise increased operational safety (65%); better operational control and consistency (62%); lower overall terminal operational costs (58%); and increase operational productivity (53%). However, the challenges cited by respondents are the costs are too high (68%); there is lack of skills or resources to implement and manage automation (52%); challenges with labour unions (44%); and the time it takes to implement (30%).

Respondents were positive about the potential ROI overall, with 30% believing automation could increase productivity by 26-50%; 29% believing automation could increase productivity by 16-25%; 19% believing automation could reduce operational costs by more than 50%; 29% believing automation could reduce operational costs by 26-50%; and 33% believing automation could reduce operational costs by 16-25%.

March 14, 2018 by PortStrategy

Adjusted EBITDA grew 9.1 pct year-on-year and achieved an EBITDA margin for the full year of 52.4 pct, DP World said.

The port operator's revenue marked 13.2 pct increase year-on-year standing at USD 4.71 billion, driven by strong volume growth across the board.

"Encouragingly, our volumes have continued to grow ahead of the market with gross volumes growing 10.1 pct year-on-year, ahead of Drewry Maritime's full-year market estimate of 6 pct. Our portfolio has seen strong performance across all three regions benefitting from the improved trading environment and market share gains," DP World Group Chairman and CEO, Ahmed Bin Sulayem, said.

In 2017, the company invested USD 1.09 billion in the development of its portfolio, while for this year the planned capital expenditure stands at USD 1.4 billion.

The primary candidates for investments are the group's projects in UAE, Posorja, Ecuador; Berbera, Somaliland; Pusan, South Korea; Maputo, Mozambique and Sokhna, Egypt.

The gross global capacity for the year was at 88 million TEU, which is expected to grow to over 100 million TEU of gross capacity by 2020, subject to market demand.

Consolidated capacity was at 50 million TEU up from 42 million TEU in 2016 including the consolidation of Pusan (South Korea).

"In recent years, we have leveraged on our in-house expertise to extend our core business into port-related, maritime, transportation and logistics sectors with the objective of diversifying our revenue base and connecting directly with the owners of cargo and aggregators of demand to remove inefficiencies in trade, improve the quality of our earnings and drive returns. Going forward, we expect this trend to continue as we seek opportunities in complementary sectors in the global supply chain and also make use of new technology and data solutions," Bin Sulayem said.

In terms of the outlook for this year, DP World's CEO said the year started on an encouraging note, with current trading in line with expectations.

"As we look ahead into 2018, geopolitical headwinds in some regions pose a challenge but we expect to continue to grow ahead of the market and see increased contributions from our recent investments," he concluded.

March 15, 2018 by WorldMaritimeNews

The report by infrastructure advisory firm Moffatt & Nichol focuses on developments which have been announced in the press in the last 12 months and provides a snapshot of the potential scale of U.K. ports' investment in infrastructure. It's also likely that there are a many more privately financed infrastructure projects planned or underway all around the country, which haven't been discussed in public yet.

Mark Simmonds, the British Ports Association's Policy Manager, said: "Ports are doing their bit but we rely on Government to ensure that road and rail connections from the port gate are fit for purpose. The terrestrial and marine planning and consenting process is also cumbersome and costly and often holds back or even prevents some sustainable port development. We hope that this report helps Government to develop an accurate picture of the investment that industry is making when developing its policies and making its own investment decisions regarding infrastructure."

One major project is Aberdeen's £350 million ($490 million) new South Harbor project. Once completed, the facilities at the South Harbour will allow enhanced activity in the decommissioning and cruise industries, amongst others, thanks to 1,400 meters (4,600 feet) of new quay and a water depth of up to 10.5 metres (35 feet). The expansion will also create an additional 125,000 square metres of lay-down area, making it the largest berthage port in Scotland.

Other projects include the Port of Tyne's £38 million ($53 million) investment in support of a new biomass plant and the Port of Dover's new £15 million ($21 million) refrigerated cargo terminal.

March 15, 2018 by Maritime-Executive

Paulo Mata said that the repair and modernisation works of those docks had been awarded to Portuguese construction company Mota-Engil, under a contract costing US$64 million.

The project director, quoted by Mozambican daily newspaper Notícias, said that the works on dock number 9 will be the first to be completed, with the end scheduled for February 2019, and the work on docks 6, 7 and 8 will be completed in December of that year.

The port of Maputo processed 18.2 million tons of cargo in 2017, an increase of 22% compared to 14.9 million tons processed in 2016, following the deepening of the access channel, which was completed in January 2017.

The Maputo Port Development Company is a partnership between the state-owned Mozambican port and railway company CFM and Portus Indico, made up of Grindrod (South Africa), DP World (Dubai) and local company Moçambique Managers.

March 16, 2017 by Macau Hub