Sri Lanka Ports, Trade & Logistics Conference tees off in Colombo

July 9, 2012, 9:05 pm 

The first day of the Sri Lanka Ports, Trade & Logistics Conference got underway yesterday (09) with an informal morning of golf at the Royal Colombo Golf Club.  A good turn out of maritime and logistics delegates led by Dr. Priyath B Wickrama, Chairman of Sri Lanka Ports Authority enjoyed fine weather and great morning’s golf, the SLPA said.

The overall stapleford winner was N. Ranchigoda  and the overall strokeplay winner was Capt. A.V. Rajendra.  The awards were presented by Trevor Pereira, General Manager, Seatrade, Middle East, North Africa and India Sub Continent.

Over the next two days delegates at the conference and exhibition will be discussing and debating the opportunities surrounding Sri Lanka’s importance as an emerging Indian-ocean economy. Geographically and geo-politically, Sri Lanka is perfectly located between these two fast growing economies. The importance as a strategic hub is easy to see.

John Foreman, Seatrade’s Global Head of Marketing, said  ‘The aims and objectives of the event, are to bring together the key parties that will cement this growth and forge new partnerships into the future. It’s about making the country’s new infrastructure work as a comprehensive supply chain and transhipment solution.  This timely two-day event will examine Sri Lanka’s new maritime infrastructure and commanding position as a trans-shipment logistics hub for bulk, break bulk, warehousing, bunkering, ship repair and shipbuilding.’

Asia-Europe spot rates drop again

Latest Shanghai index points to weakness of GRIs. Peak season surcharges may not materialise

Mike Weir

Monday, 28 May 2012

  

Last week’s falling spot rates for containerised freight on the Asia-Europe trade lane indicate that the shipping lines’ solidarity over general rate increases (GRIs) could fray, say market commentators. 
The overall Shanghai Containerised Freight Index (SCFI) fell $17 to $1,409 but this masked bigger drops in the Shanghai-Europe and Shanghai-Mediterranean components. 

Container freight derivatives for Q4 2012 were also trading at a significant discount to the spot market suggesting that market participants expect conditions to worsen. 

Derivatives broker Ben Gibson of Clarkson Securities said: “The week saw sellers move to lock in Asia-Europe rates for the peak season as confidence in future GRIs or peak season surcharges (PSSs) took a big fall and trading activity took the SCFI Eur Q3 contract below current spot prices. 

“Shippers who were looking to hedge at spot prices have now withdrawn back to below where physical business is being done as the overwhelming expectation is that the market will continue to fall in the coming weeks.” 

Further weakness in the container market has been highlighted by the slow appearance of the Asia-Europe PSS of around $350 per teu. At least one company, United Arab Shipping Company, has delayed implementation of its PSS until 16 June. 

“The gains made by carriers since January have been successful in part due to a unified approach on the implementation dates,” said Cherri Wang of GFI Group, another derivatives broker. 

“UASC’s decision to delay suggests that they either don’t feel that the peak volume is there just yet, or that they see an opportunity to increase their utilisation levels by offering cheaper freight for two weeks. Perhaps these explanations seem cynical but the fact remains that in delaying by two weeks they are weakening the overall impact of the wider PSS. 

“Carriers will be keeping a particularly close eye on their volumes over the next couple of weeks and will no doubt be ready to move on their PSS position if they fear that their competitors may be attacking their market share.”

If you would like to comment on this story or any other, contact us at editors@lloydsloadinglist.com 

First automated road train

Volvo truck leads 'Platoon' of vehicles 200km on public motorway

David Badger

Thursday, 31 May 2012

  

For the first time, a Volvo truck has led a platoon – a convoy in which vehicles automatically follow a leader – on a public motorway with other road users.

The tests were part of the EU-funded SARTRE (Safe Road Trains for the Environment) project – a joint-venture between seven European partners, including Volvo Trucks. 

Last week on a motorway outside Barcelona, Spain, the first test-drive of a road train, consisting of both trucks and cars among other road users, covered 200km in one day.

In the SARTRE project, safety systems, such as cameras and radar, are used by the following vehicles to monitor the lead truck, as well as the other vehicles in their immediate vicinity. By adding wireless communication, all the vehicles in the platoon “mimic” the lead truck – accelerating, braking and turning in exactly the same way as the lead vehicle.

In Spain last week, three cars and a truck followed the lead Volvo truck, the distance between each vehicle being just six metres at 85kph.

“The truck behaved exactly as expected, and the following vehicles responded just as planned. It was great to be a part of this landmark event,” said Andreas Ekfjorden, Project Manager for Volvo Trucks in the SARTRE project and test driver of the lead truck in Spain.

The environmental impact of a road train is lower than that of conventional traffic, since the following vehicles are close behind the truck and each other and can benefit from lower air drag, says Volvo. By improving traffic flow, road capacity will also be able to be utilised more efficiently. 

In the haulage industry – where fuel-efficiency is a highly critical success factor – these findings raise questions on how the savings should be distributed. Analysis of business models for platoons is an integral part of the SARTRE project. 

“Haulage firms stand to gain from platoons, but more work needs to be done before it is possible to say what a working business model will look like,” said Frida Ramde, Intelligent Vehicle Technologies Manager at Volvo Trucks.

The three-year SARTRE project began 2009. After the test on public roads in Spain, the project is now entering a new phase with the focus on analysis of fuel consumption.

If you would like to comment on this story or any other, contact us at editors@lloydsloadinglist.com 

 

Carrier reliability picks up in February

March 18, 2012, 7:41 pm 

Global container carrier reliability improved from 58% in January to 60% in February; the first increase following four months of decline. 

According to research published by Seaintel, Maersk Line maintains the number one spot as the most reliable carrier at 75%, followed by Hamburg Süd at 72% and APL at 67%. 

Compared to January, Maersk Line is thus seen to have improved 3%, APL has improved 7% while Hamburg Süd has maintained their performance. 

In the past eight months, Maersk Line has been top performer five times while Hamburg Süd has been top performer three times. 

Reliability is measured as arrival on the same calendar day or the day before but expanding the on-time definition to include vessels arriving only one day late shows that reliability is 78% while the top three performers remain the same, all exhibiting improvements compared to January. 

Under that expanded definition, Maersk Line saw reliability increase from 89% to 91%, Hamburg Süd improved from 87% to 88% and APL improved from 86% to 87%. 

At the lower end of the league, however, MSC’s reliability slid from 63% in January to 61% last month. 

Out of 8,400 measured arrivals in February 2012, Seaintel’s monthly schedule reliability report now includes 1,900 arrivals in trades to and from Africa, Middle East and the Indian Subcontinent. 

Measurements are based on the SeaIntel database comprised of more than 58,000 arrivals across 2,200 vessels, 29 trade lanes and 51 carriers since July 2011. (IFW)

 

Risk hot spots for forwarders and logistics operators

*Human error to blame for most accidents, supply chain forum told

March 18, 2012, 7:42 pm 

Speaking at the freight industry forum, TOC Container Supply Chain Asia in Hong Kong, TT Club Director of Global Risk Assessment Laurence Jones highlighted the key factors that cause disruption throughout the global supply chain, and spoke of opportunities for operators to save costs by tightening procedures to minimise accidents, breakdowns, delays and other risks.

Based on an extensive analysis of TT Club claims valued in excess of US$120 million, Jones revealed that nearly 80% of incidents resulting in a claim were avoidable, and the vast majority involved some form of human error.  

Jones said: "We found that the adoption of proven operational procedures and available safety technology could prevent many of the incidents. Relatively small investments in training and maintenance could bring significant commercial benefits through less disruption to operations, lower insurance premiums and more satisfied customers."

(IFW

 

Are carriers in the wrong business?

*Analyst says container lines’ losses could have covered cost of 18 space missions

March 18, 2012, 7:40 pm 

Latest analysis from SeaIntel pokes an irreverent finger at the cost of the price war waged by the container carriers on the two main trades linking Asia with Europe and North America.

If the recent rate increases are seen as a sign that the fight is now over, the total cost turns out to be $11.4 billion.

The details underlying the calculation are published in the weekly newsletter SeaIntel Sunday Spotlight, and it is clear that the fight for market share has not been cheap. 

SeaIntel analysts compared the numbers to pricing estimates provided by NASA and the John F. Kennedy Space Center and found that with the money spent on the price war, the carriers could have purchased two space shuttles and used them to fly 18 space missions. 

Given this cost, say the analysts, it is certainly evident why carriers are now seeking rate increases. 

The rate increases on Asia-Europe in March and April will bring rates back to the level before the price war started, however the total increases announced by the TSA on the Transpacific trade would raise rates beyond the downturn caused by the price war. 

From a shipper perspective it is equally clear, say the analysts, that they have received a financial benefit equivalent to two space shuttles and 18 space missions – and that receiving such financial benefits cannot continue indefinitely. 

(IFW)

From Sunday times online

http://www.sundaytimes.lk/index.php?option=com_content&view=article&id=16852:lanka-offers-bangladesh-to-use-htota-sea-port&catid=1:latest-news&Itemid=547

Lanka offers Bangladesh to use H'tota sea port

MONDAY, 12 MARCH 2012 07:42

Sri Lanka offered Bangladesh to use seaport at Hambantota which will be helpful for us, Bangladesh Finance Minister A. M. A Muhitha said.
"Let's explore the benefit since Hambantota port users wouldn't need to go inside the Colombo. That will help save time at,” the Bangladesh Minister said at the conclusion of the fourth round of Bangladesh-Sri Lanka Joint Economic Commission (JEC) meeting ended in Dhaka Thursday with a call to further expanding cooperation between the two nations.

During the Joint Commission both the sides agreed that there was much scope to enhance bilateral relations in various fields.
Finance Minister AMA Muhith led the Banladesh team while Minister for Industry and Commerce Rishad Bathiyutheen led the Sri Lankan team.

Expressing hope of much better cooperation among the two countries in future the Bangladesh Finance Minister said despite 30 years of troubles Sri Lanka has done well in economic and human development.

"Sri Lankan resilience power has increased as high that the Wall Street crash couldn't even touch it," he said.

Minister Rishad Bathiyutheen said the two counties maintain very friendly relations. He urged Bangladesh businesses to invest in Sri Lanka and enjoy various facilities offered by his government. He said during the meeting the two sides have agreed to further enhance bilateral trade and cooperation in the fields of commerce, industry, agriculture, shipping, civil aviation and tourism, ICT, and education.

Minister said the bilateral trade between the two nations is only US$71 million which can be increased manifold.

He also requested Bangladesh business community for joint venture investment in pharmaceuticals, textile, apparel, ICT and hospitality industry.

The next round of Joint Economic Commission will be held in Colombo at a date to be set later.
During the visit of President Mahinda Rajapaksa in April last year, the two countries recognized that the Joint Economic Commission was an effective mechanism to further boost bilateral cooperation.