IMO 2020 silver lining for shippers and carriers alike, Shenzhen TPM conference told

PostTime:2019-10-11 08:25:24 View:917

TOP flight shipping analysts largely agreed on challenges that confront world shipping in the next years, saying the news was not all bad - even the draconian IMO 2020 low sulphur fuel regulation would help bring stability to the sector. "It's not as though the industry has not seen fuel prices like this before," said McKinsey & Co partner Steve Saxon, who also had a good word for the current wave of mergers and acquisitions that has consumed the industry in recent years. "Usually, M&As bring about benefits for shippers. The bigger the carrier, the more profitable it tends to be. I think we shall see a few more mergers in the coming years. They are good for all concerned." Next in line for a merger, one panelist mentioned "Taiwan", and there was a murmur of agreement. But Mr Saxon noted there were often barriers to merger because various countries felt it was important to maintain a national flag carrier or they had difficulty accepting that a carrier from one particular country taking over. Drewry Supply Chain Advisors top analyst Philip Damas said IMO 2020, which will enforce a new costly low-sulphur fuel rule from January 1, said this would likely drive up fuel costs between 35 to 40 per cent. But this would not affect freight rates because it could be handled in fuel surcharges, or BAFs as they are called, bunker adjustment factors. HSBC shipping analyst Parash Jain said he doubted prices of fuel itself would go up nearly as much as forecast as the supply seemed to be adequate to provide for expected needs. He expected 66 per cent of ships would be using low-sulphur fuel, said to put engines at risk of failure, and 33 per cent would install scrubbers. Hardly any appear to be built for sulphur-free LNG. IHS Markit shipping analysis Rahul Kapoor, in a discussion of compliance with the new fuel rules, agreed with others that there would be little problem in liner shipping and that non-compliance would be small scale and confined to regional services in third world countries.

China Merchants 5G intelligent port innovation lab inaugurated at Shenzhen

PostTime:2019-06-27 08:14:32 View:842

China Merchants Port Group, a subsidiary of China Merchants Group, has signed co-operation agreement with China Mobile and Huawei for 5G port industry development, and opened its 5G intelligent port innovation lab at Shenzhen. The three parties held the inaugural ceremony for the lab at Haixing container terminal in Shenzhen.  According to a statement, the lab aims to provide demonstrations to local port industry and help Shenzhen develop a centre for innovation within the Guangdong-Hong Kong-Macao Greater Bay Area. In addition, the partnership is expected to support the development of ports that are participating in China’s Belt and Road Initiative (BRI). The Haixing container terminal, located at Shenzhen Qianhai, started its upgrading project in September 2017, with an investment of RMB4.37bn and a designed annual handling capacity of 1.55m teus. The terminal expects to start operations in 2020.  Last month, Guangzhou partnered with Huawei to develop 5G mobile technology for Guangzhou port and Great Bay area. 

Ningbo-Zhoushan overtakes Shenzhen to be 3rd largest box port globally

PostTime:2019-01-21 08:42:42 View:1011

CHINA's Ningbo-Zhoushan port handled a total of 26 million TEU in 2018 to become the world's top three container port for the first time. The throughput handled by Ningbo-Zhoushan surpasses Shenzhen, which reported a throughput of 25.74 million TEU last year. To improve container throughput, Ningbo-Zhoushan port has been actively co-operating with shipping alliances on shipping routes deployment and local resources expansion and strengthening its position as a hub port for international shipping business. The port operates 246 shipping routes at the end of 2018, reports Seatrade Maritime News of Colchester, UK. The fast growing of sea-railway combined transportation in Ningbo-Zhoushan port has greatly driven the increasing of its container throughput. The port opened nine sea-railway combined routes last year, including seven routes with over 5,000 TEU volume monthly. In 2018, the port completed over 600,000 TEU sea-railway cargo volume, a growth of 50 per cent year on year. Ningbo-Zhoushan port handled 24.64 million TEU in 2017, and is also a hub port for domestic iron ore, crude oil, coal and liquid chemical products transit and storage.  

Shenzhen Maritime Bureau inks order for electric vessel at Huangpu Wenchong Shipyard

PostTime:2018-11-28 08:50:26 View:897

CSSC Huangpu Wenchong Shipyard has signed shipbuilding contract with Shenzhen Maritime Bureau to build an all-electric battery-powered service ship. The vessel is for deployment by the maritime bureau in LNG area of Shenzhen port. The ship, designed by CSSC 708 Research Institute, is 78 m in length, 12.8 m beam and 5.5 meters in depth. It is designed to have a top speed is 18 knots above with a range of 1,000 miles. It will be equipped with two sets of 650 kilowatt hour high performance battery packs to fully supply the vessel with electric power. The service vessel will monitoring of other ships, dangerous cargo handling operations and maritime safety, and accident emergency command at Dapengwan LNG hub port area. By 2020, LNG volumes at Dapengwan in Shenzhen port will reach 20m tons annually. To secure and safe port operations, Shenzhen Maritime Bureau decided to build a battery-powered service and emergency command ship. Huangpu Wenchong Shipyard, affiliated to China State Shipbuilding Corporation (CSSC), is focused on the construction of naval vessels, specialist vessel types and offshore engineering.

DHL sell Chinese supply chain to Shenzhen's SF Holding for US$796 million

PostTime:2018-10-29 08:35:25 View:833

GERMANY's Deutsche Post DHL Group has agreed to sell its supply chain operations in China to Shenzhen-based SF Holding for US$796 million. Thus DHL sells its supply chain business on the mainland, Hong Kong and Macau, while it retains its business activities in international express, freight transport and e-commerce logistics solutions in China, reported American Shipper. DHL will also receive an upfront payment of CNY5.5 billion (US$792.1 million) and a revenue-based partnership fee for 10 years.  Thus, SF Holding will have access to Deutsche Post DHL Group's supply chain services, management expertise, transportation and warehousing technology. The co-branded organisation will operate under the leadership of Yin Zou, the current CEO for Greater China for DHL Supply Chain, along with his existing management team. Said DHL group CEO Frank Appel: "SF's local market expertise has real advantages for our customers across all industries including technology, healthcare, retail, automotive and e-commerce. Combined with our global operation, the agreement provides a foundation to explore opportunities in China in coming years."  Said SF Holding chairman Dick Wong: "This will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs."    

Shenzhen Qianhaiwan Free Trade Port readies as LCL transshipment hub

PostTime:2018-10-10 08:32:29 View:881

THE Shenzhen Qianhaiwan Free Trade Port that is operated by China Merchant Bonded Logistics (member of China Merchants Port Holdings) has set its sights on becoming the next less-than-container load (LCL) consolidation transshipment hub in Asia. This comes as JNC Line (S) Pte Ltd has entered into a memorandum of understanding (MOU) with China Merchant Bonded Logistics (CMBL) to partner with FS International Hong Kong to establish a Multi-Country Consolidation (MCC) service platform (Fox Service Limited) at the Qianhaiwan Free Trade Port. CMBL manages the warehouse facilities at the Qianhaiwan free trade port where it has a 12,000-square metre container freight station (CFS), support from customs and provides a platform for international LCL consolidators. From the port, the company performs MCC transhipment, direct import/export deconsolidation and consolidation services. Port activities are expected to increase in the free trade zone due to shippers and consignees in South China having access to direct import and exports services via this port in Shekou which offers 170 vessel sailings per week by major carriers. One advantage of using the free trade port is that direct shipments to the port will not have to pay a cargo duty. The MCC services offer the fastest transit time for shipment to and from Qianhaiwan port, which provides fast customs clearance. The Qianhaiwan MCC platform is one of the main government-backed projects in Guangdong province (Experimental Plan of Intensive Co-operations in The Greater Bay Area) at present that is part of the Greater Bay Area, a master plan to integrate Hong Kong, Macau and nine cities in southern Guandong province through a strong network.  

Shenzhen's SF Holding forms cargo joint venture with SF China Railway

PostTime:2018-09-06 08:32:39 View:811

SHENZHEN's SF Holding and Beijing-based China Railway Corp have formed a cargo venture to draw in the private sector to bolster state firms' competitiveness, Bloomberg reports. Cargo subsidiary China Railway Express will hold a 55 per cent while SF, the country's biggest parcel-delivery company, will own the rest of the venture.  The pact with SF is part of China's efforts to let railways account for a larger share of cargo transportation to counter rivals in road haulage and increase rail freight 30 per cent by 2020.  It is China Railway's second tie-up with a private firm following the sale of a stake in a unit offering wi-fi on bullet trains to Tencent Holdings and Geely Automobile Holdings in June.  

Maersk Line scraps port call to Shanghai, Shenzhen due to congestion

PostTime:2017-12-19 09:15:47 View:977

DENMARK's Maersk Line is withdrawing in December one port call to Shanghai and another to Chiwan in Shenzhen, a decision prompted by severe congestion at the mainland China ports. "Our network is constantly being reviewed for improved reliability and commercial effectiveness," American Shipper quoted Maersk as saying. "We can confirm we are currently omitting one call in Shanghai and Shenzhen, respectively. This is due to recent frequent operational omissions in these ports - with the aim of improving our schedule reliability. Maersk Line has a very comprehensive service network covering both ports and remain dedicated to serving them with fully competitive products." According to Container Management, Maersk would remove the port calls from its AE2 and AE11 services. "From December 21, AE11 will not call at Chiwan in Shenzhen and from December 22, Maersk's AE2 service will no longer call at Shanghai," the media outlet said. Maersk Line operates 30 services that call at Shanghai and 13 of its services call at Chiwan, data compiled by BlueWater Reporting shows.  

DHL's Shenzhen-to-Minsk rail service along 'Belt and Road' route

PostTime:2017-05-26 08:12:29 View:1253

DHL Global Forwarding has commenced a less-than-container load (LCL) and full container load (FCL) rail freight service that uses primarily transportation networks spanning Shenzhen, China to Minsk, Belarus, as part of its Asia-Europe multimodal network.  The service covers new overland connections to several major cities along the proposed route for China's 'One Belt, One Road" initiative. The logistics provider is teaming up with China Brilliant, an integrated service provider in global manufacturing and consumption, to manage this Shenzhen-Minsk rail service. CEO Steve Huang of DHL Global Forwarding in Greater China said in a company statement that this new service is targeted at the electronics, industrial and automotive parts, and fresh foods industries located in both Eastern Europe and China. "Eastern Europe's economies are growing faster than almost any others worldwide, with significant export opportunities arising from the region's rising wages and disposable income levels," said Mr Huang.  "Minsk offers Chinese businesses an efficient gateway into the Baltic States and Nordic countries in addition to other major European destinations like Warsaw, Hamburg and Tilburg via Brest. "With Shenzhen's economy exceeding expectations to grow by nine per cent last year, the route also opens sizable opportunities for European exporters looking to sell to one of China's most vibrant trade and business hubs, or use it as an important gateway to Southeast Asia and the rest of the Chinese consumer market." Mr Huang continued: "Our newest route further supports strategic infrastructure projects designed especially to support the 'Belt and Road', such as the Great Stone Industrial Park, the largest joint project between China and Belarus that will span decades." The new service, he said, also lays the groundwork for further rail connectivity to the Nordic and Middle Eastern states involved in China's "One Belt, One Road" transport and infrastructure initiative. The new route will transit through the Alashankou-Dostyk rail juncture which already services several other multimodal services, including rail connections from Chengdu, Zhengzhou and Lianyungang to Europe.  As with its other "Belt and Road" routes, the Shenzhen-Minsk connection will offer customers real-time GPS tracking of containers and fully managed customs clearance. "The partnerships that DHL has with governments and businesses globally, coupled with our market strength in Shenzhen-based supply chains, have come together to create a solution that directly meets the needs of China's expansion-hungry manufacturers and producers," added the founder of China Brilliant Group, Zhang Chunhua. Details of the new rail route are as follows: The north corridor runs from Suzhou to Warsaw to connect China's engineering and manufacturing hubs to Europe in 14 days. The south corridor from Lianyungang and Chengdu to Istanbul, traverses Kazakhstan, Azerbaijan and Georgia, as well as two sea transit segments, before arriving at Istanbul in 14 days. The west corridor runs from Zhengzhou to Hamburg, Chengdu to Lodz and Shenzhen to Minsk. This connection will support Zhengzhou's electronics manufacturers, Chengdu's hi-tech and automotive industry, and Shenzhen's electronics and contumer industries by providing them with access into Europe. As for sea transits, Japan, Korea and Taiwan is connected to China via ferry services for onwards journey to Europe, as well as Shanghai to Europe via Piraeus, Greece. The road connection links manufacturing bases in Vietnam to Europe via China.  

Zim service starts calling at Shenzhen's Da Chan Bay terminals

PostTime:2017-04-27 08:46:13 View:918

SHENZHEN's Da Chan Bay Terminals (DCB) recently welcomed the arrival last week of Zim Integrated Shipping (ZIM)'s vessel Milano on her maiden West bound voyage of the new Mediterranean Pacific service (ZMP), which covers Asia, East Mediterranean, Black Sea and Pacific North West (PNW). Zim's other vessel, the Ukrayina called at the same facility a day later on her maiden voyage of ZMP's east bound service, which is part of the liner's new deployment this month. In addition to the new ZMP service, the liner's new deployment on the Pacific Trade offers two all water services ZCP - Zim Container Pacific and Z7S - Zim Seven Stars which also call at Da Chan Bay. All of these services are independently operated by Zim and it allows high level of flexibility to the liner serving its customers. Zim deploys 15 vessels with an average carrying capacity of 4,000-5,000 TEU on ZMP service. The west bound of ZMP is to focus on Asia - East Med/Black Sea trades and the east bound is to focus on Asia-PNW trade. ZMP West bound service calls DCB every Thursday while the east bound service calls every Saturday. The port rotation of the service is as below: Shenzhen-Da Chan Bay, Port Klang, Ashdod, Haifa, Istanbul, Novorossiysk, Odessa, Istanbul, Haifa, Port Klang, CaiMep, Shenzhen-Da Chan Bay, Shenzhen-Yantian, Xiamen, Ningbo, Shanghai, Busan, Vancouver, Busan, Qingdao, Shanghai, Ningbo and back to Shenzhen-Da Chan Bay. Offering connections between Asia and the East Mediterranean/Black Sea, as well as Asia and Pacific North West, this new service at DCB will provide direct calls to all major ports for both importers and exporters in China.

DHL eCommerce opens in Xiamen, expands in Hong Kong, Shenzhen

PostTime:2017-03-30 08:43:45 View:1162

GERMANY's DHL eCommerce, a division of Deutsche Post, has announced plans to open e-commerce logistics services in Xiamen to serve Fujian province. The company also announced the expansion of its Shenzhen and Hong Kong distribution centres to manage a capacity of 81 million shipments a year.  "China's booming cross-border e-commerce market, estimated to be worth US$839 billion by 2021, is expected to dominate 40 per cent of the global market share," said a company statement.  "The growth momentum in southern China is particularly strong - cross-border e-commerce transactions in Fujian grew 42 per cent to a total value of $28.1 billion, which accounted for 18.5 per cent of the provincial outbound trade in 2015.  "To enable merchants across South China to tap on the huge cross-border e-commerce opportunity and compete in the international market, DHL eCommerce will now provide greater convenience with pick-up service; easy IT integration of their inventory into the shipping process, as well as greater variety of simple and affordable cross-border shipping solutions to reach out to customers across the world," said DHL.  "With exports expected to make up 75 per cent of China's e-commerce turnover three years from now, a strong and reliable logistics framework has to be set in place to meet growing needs," it said.  Said DHL eCommerce China chief Zhi Zheng: "Manufacturing and export hubs like Fujian will be the centre stage of all future growth of e-commerce exports in China. DHL's expertise in international shipping and fulfilment, along with our global network and strong e-commerce expertise will play a fundamental role in connecting China's e-tailers with online markets across the world." 

DHL ships hobbyist drones for Shenzhen Youkeshu Technologies

PostTime:2017-03-23 08:43:33 View:829

GERMANY's DHL Global Forwarding will ship remotely controlled helicopters and other hobbyist items for Shenzhen Youkeshu Technologies, a major Chinese consumer electronics exporter, the company announced. The deal will see DHL establish a dedicated 24/7 freight control tower in Shenzhen to manage Shenzhen Youkeshu Technologies shipments of remotely controlled helicopters to more than 100 countries. As well as providing freight services to Asian, European and British hubs, DHL will also manage Shenzhen Youkeshu Technologies' growing product portfolio. Said Shenzhen Youkeshu Technologies vice president Marpo Wang: "E-commerce has brought complexity to shipment volume, transit time, and cargo-ready dates, demanding a great deal of agility to accurately meet constant swings in demand."  "With more than 100,000 square metres of warehouse storage for around 100,000 SKUs from 4,000 different suppliers, we need a solutions provider who could not only provide a wide range of forwarding modes and routes, but also manage our complex space and delivery requirements in an effective and timely manner," he said.  DHL staff will work with Shenzhen Youkeshu Technologies teams to develop forwarding for its e-commerce division, one of the company's fastest-growing channels for overseas sales.