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OOCL hikes Asia-all Europe rate US$425 per TEU from September 14

HONG KONG's Orient Overseas Container Line (OOCL) will levy a US$425 per TEU rate increase from September 14 on all westbound cargo from Far East (excluding Japan) to all of Europe, including the Med and Black Sea.

Cargo will be rated by "on board date," said the company, adding that this "Rate Restoration Programme" was necessary to "continue providing quality and sustainable services".


Global fallout starts to spread far and wide from Hanjin bankruptcy

DISTRAUGHT Hanjin shippers struggled to cope with troubles that range from the inconvenient to the catastrophic in the wake of Korea's biggest shipping company filing for receivership and bankruptcy protection.

Hyundai Merchant Marine, Korea's No 2 container line, and globally ranked 14th, plans to deploy 13 more vessels to the US and Europe to help take up the slack left by the Hanjin collapse.

As for shippers, British International Freight Association (BIFA) said: "It is likely to take time for the Receiver to come in and manage the situation. Once contact is made, BIFA members will be informed of the latest information as to release of boxes."

BIFA noted that if the contract made with the shipping line was door to door, it may be necessary to pay some charges again to facilitate delivery, "early payment may facilitate earlier release", reported Lloyd's List.

"Customers may need to decide whether or not to arrange a replacement shipment and take the current container loads back into stock," BIFA said.

Complications mount as the court takes control. Sources have told Korea's Yonhap news agency that Hanjin ships are denied access to the Port of Busan and container lashings providers refused to work because of uncertainty of payment.

Hanjin Shipping, the world's seventh biggest container line, accounts for roughly 10 per cent of cargo processed at Busan port, the country's largest seaport.

One creditor seized a ship in Singapore and a slew of its ships are denied entry to ports in China, the United States, Canada and other nations.

In response to ship arrests in different ports, leaving Hanjin ships fearful of landing anywhere, the company has secured an injunction against arrests in South Korea.

The Port of Virginia will not accept inbound Hanjin export cargo. The port, however, will accept empty Hanjin containers.

Oakland continued to "unload Hanjin ships and they're going to deliver the loaded import containers to Hanjin customers," said port spokesman Robert Bernardo.

But the same terminal was refusing to load containers of US exports on outbound Hanjin vessels unless "full payment was received in advance", he said.

Hanjin accounts for 40 per cent of Samsung Electronics shipment, and 20 per cent of LG Electronics.

In the United States, the Hanjin bankruptcy has disrupts shipping at the Port Los Angeles and Long Beach, reports the Los Angeles Times.

Said National Retail Federation vice president Jonathan Gold: "There's millions of dollars' worth of merchandise that needs to be on store shelves."

Stranded goods include auto parts, coffee tables, pillows, lamps, toys and pulp and paper products from the Pacific Northwest, said Brian Bourke, vice president of marketing for Seko Logistics.

"This is the worst time for this to happen,?Mr Bourke said, because it's "peak season" ahead of Christmas sales.

South Korea's Financial Services Commission would "promote sales of Hanjin Shipping's core assets to the country's No 2 container carrier Hyundai Merchant Marine.

The disruptions have sent spot shipping rates up 15 per cent or more as Seko and others scramble to find alternative shippers and routes for the goods, including the added use of air-cargo carriers, he said.

Hanjin, like other major shipping lines, has struggled with overcapacity brought on by a massive ship building boom. It bought bigger more fuel-efficient ships expecting that China's economic growth would continue to rise with oil prices. But both fell instead.

Then there are those financially exposed to the Hanjin debacle. One is Greek owner and charterer Danaos Corporation, which has $560 million at risk, the worst such case in the market, with eight ships some of 10,100 TEU, on charter, according to Deutsche Bank.

"We are disappointed," said Danaos CEO John Coustas. "Danaos actively supported Hanjin in its efforts to restructure its operations."

Also financially exposed is South Korea's flag carrier Korean Air, which expects losses of $344 million.

Hanjin Shipping is part of Hanjin Group, which also owns Korean Air Lines, the world's third-largest cargo airline. Korean Air loaned funds to Hanjin Shipping and became its leading shareholder with 33 per cent.

French shipping giant CMA CGM while refusing to load Hanjin containers, those already aboard on CMA CGM ships will be delivering them to their final destinations.

Bloomberg reports that Hanjin vessels are getting stranded at sea after them company filed for court protection, roiling the supply chain of televisions and consumer goods ahead of the Christmas season.

LG Electronics is trying to find new carriers for its goods, the world's second biggest manufacturer of televisions said in an e-mail.

Shipments through Hanjin account for between 15 per cent and 20 per cent of LG's deliveries to America, the company said.

Hyundai Merchant Marine (HMM) plans to add four vessels to the US starting September 9 and nine on Europe routes later this month.

HMM is itself in the midst of a creditor-led debt restructuring programme, but unlike Hanjin, it managed to obtain financial help after meeting all requirements for funds.

State-run Korea Development Bank is now the biggest shareholder of Hyundai Merchant with a stake of about 14 per cent after swapping debt for equity.


Brexit Bulletin: British factories lead economic rebound, sterling inches up

MORE evidence has emerged of how the British economy is proving resilient to the Brexit vote, with UK factory activity reaching a 10-month high in August.

The data came on the back of a weaker pound boosting exports, reports Bloomberg News.

IHS Markit said its Purchasing Managers Index, which dropped below the key level of 50 in July, jumped by a record to 53.3.

That was far better than economists had forecast and sent UK equities and the pound higher. The figures were the latest to signal economic fortitude in the wake of the referendum.

The labour market, consumer confidence, retail sales and house prices have all had a strong summer, confounding predictions of a slowdown by some economists.

Still, international investors seeking bargains in London's prime office market following the vote are being frustrated because sellers won't lower prices, according to Jones Lang LaSalle.

Prime Minister Theresa May said she wants to end the free movement of people flowing into the UK from the European Union and suggested she is willing to leave the bloc's single market to do so.


Canadian PM to leverage trip to China for more trade and investment

CANADIAN Prime Minister Justin Trudeau plans to use his 10-day trip to Beijing, Shanghai, Hong Kong and Hangzhou, where he'll attend the Group of 20 summit, as an opportunity to boost bi-lateral economic ties and tackle issues such as falling Chinese investment in Canada's energy sector.

Mr Trudeau will meet with Premier Li Keqiang, Alibaba Group Holding's Jack Ma and Hong Kong billionaire Li Ka-Shing, controlling shareholder in Calgary-based Husky Energy, reported Bloomberg.

Since reaching a record US$21.3 billion in 2012, including China National Offshore Oil Corp $15.1 billion acquisition of Nexen Inc, Chinese investments in Canada's oil and gas sector plunged to $2.19 billion this year, according to data compiled by Bloomberg.

Finance Minister Bill Morneau said he was open to easing rules that restricted takeovers in the oil sands by state-owned companies.

The measures were designed to prevent foreign governments from gaining too much influence over Canadian oil.

Merchandise trade between Canada and China totalled $75 billion in 2015, up 20 per cent from 2010, representing one eighth of the value of total trade between Canada and the US.


California urges speed on investment in sustainable freight transport

CALIFORNIA will need to "accelerate public investments" in the maritime, trucking and rail sectors to help the freight industry become more environmentally friendly, according to the Pacific Merchants Shipping Association (PMSA).

The comments come in the wake of California's recently unveiled Sustainable Freight Action Plan that requires truck, rail and waterborne transportation to dramatically cut carbon emissions, in order to establish a 2030 greenhouse gas emissions reduction target of 40 per cent below 1990 levels.

Vice president and general counsel of Oakland, California-based PMSA, Mike Jacob, said the association believes that the goals are attainable, reported American Journal of Transportation.

"But only if the State of California makes an affirmative and significant commitment of public resources toward the creation of new investments in freight infrastructure," Mr Jacob said.

"The creation of new infrastructure and zero-emission transition cannot occur in a manner which is mutually exclusive with continuous growth in the freight sector," he said.

With respect to the maritime industry, "PMSA member companies are committed to supporting the state's economy and environment, and are prepared to continue to invest billions of dollars into the California freight system," said Mr Jacob.

"The private sector alone cannot be relied upon to fund and finance all of the outsized investments in California's freight and port infrastructure. As our partner, the state must be willing to accelerate public investments and incentivise private investments in our ports that go beyond our current market capacity, foster growth in intermodal volumes, and enhance California's global competitiveness."


Fuel efficient ships not rewarded enough in today's shipping market

VESSELS with higher design efficiency, as measured by the GHG Emissions Rating, save more fuel on average than design alone would indicate, but are not adequately rewarded, say environmentalists.

UCL Energy Institute (UCL) and Carbon War Room (CWR) researchers say the market often fails to reward owners of efficient vessels by way of premiums or preferential hiring.

As a result, the industry is not being helped to meet the challenges of a low-carbon future, and could challenge regulations designed to reduce total industry emissions, reports American Journal of Transportation.

The research conducted by the UCL and CWR found that in 2012 the difference in fuel costs between a B-rated and an F-rated capesize vessel was, on average, US$5,500 per day, or nearly $1.5 million annually - a higher difference than would be anticipated based on design.

Despite this, efficient vessels do not appear to deliver significant rewards for anyone other than the fuel payer. In the time charter market, charterers appear to be reaping rewards when they choose vessels with high GHG Emissions Ratings, but owners of efficient ships do not share in the benefits.

On average, there should be a fuel saving for charterers choosing vessels with high GHG Emissions Ratings, according to the study. However, the market does not incentivise owners of efficient ships with premiums that reflect charterers' fuel cost savings.

Owners in the time charter market that choose to improve their fleet's efficiency by investing in efficiency technologies are not seeing a return from either price or preferential chartering. This means that in today's markets there is little financial incentive for other owners to follow their example.

"This research demonstrates that market failures present significant challenges to realising emission reductions," UCL Energy Institute's Tristan Smith said. "It indicates that policy tools that have contributed to the improvement of other industries, such as carbon prices or fuel levies, would have a greatly decreased impact if applied to shipping unless these observed market failures are addressed.

"This is because these policies work by magnifying existing market dynamics that reward efficiency and we don't currently see those dynamics in shipping."


Congestion eases and MGX service resumes Valencia call

GERMANY's Hapag-Lloyd has announced that its Mediterranean Gulf Express (MGX) service has returned to normal and will resume the Valencia call instead of calling at Sagunto.

The service was diverted to Sagunto last month after the Port of Valencia suffered severe congestion, reported the American Journal of Transportation.

The first vessel to call Valencia will be the 4,250-TEU Manila Express (voyage 02w37), which is expected to arrive on September 15.

The MGX services will now call Cagliari, Livorno, Genoa, Barcelona, Valencia, Port Everglades, Kingston, Veracruz, Altamira, Houston, New Orleans, Tangier and returning to Cagliari.


UK female CEOs deliberately dominate trade delegation to UAE

COMPANIES headed by women will account for more than half of the 50 European businesses joining a delegation the London Chamber of Commerce and Industry is taking to the United Arab Emirates.

The trip next month aims to press business from Middle East industries including engineering, architecture and solar energy for small to medium-sized enterprises to employ women at the top, reports Bloomberg.

Those on the trip are slated to meet with the Dubai Business Women Council, the Sharjah Chamber of Commerce and Industry and the Abu Dhabi Chamber of Commerce and Industry.

The trip includes European companies in engineering, architecture, solar energy, education, fashion and design, information technology and food and drink, tourism and transport and logistics. The statement didn't identify any by name.


Wallem manager fired refusing opportunity to female deck officer

AN attempt to create an all male crew - almost of crews are - at Hong Kong's Wallem Ship Management in July went awry and a manager was fired to placate feminists and homosexuals, reported HK Free Press.

An email dated July 18 from the company said, "Wallem would not offer places for females because we can't offer an appropriate onboard environment".

The company said that the "cruise industry is the most appropriate" for women.

Sophia Walker, a qualified applicant as a deck officer, filed a complaint of discrimination after the incident.

In a letter dated August 10, Wallem Group CEO Simon Doughty said the man who wrote to Ms Walker was "no longer in Wallem's employment".


Kalmar appoints Peter McLean to lead the Asia-Pacific region

CARGO handling gear provider Kalmar has appointed Peter McLean as head of the Asia-Pacific (APAC) region, succeeding Ken Loh, who has decided to leave Kalmar, but is staying on for a time to ensure a smooth transition.

In addition to his new position as head of Kalmar APAC, Mr McLean will continue in his current role as president, Bromma until a successor is appointed, a company statement said.

"I want to thank Ken Loh for his notable contribution and wish him all the best in his future endeavours," said Kalmar president Antti Kaunonen.

"At the same time, I am pleased to find a successor within the company. Peter McLean was recently appointed president of Bromma, but his long experience in Kalmar and in the APAC region makes him a perfect match for this role. I want to wish Peter the best of success in his new role," said Mr Kaunonen.

Said Mr McLean: "I am honoured to take over a successful business and a great team from Ken. The opportunity that lies ahead for the APAC region is enormous, and the possibility given to me to lead this next chapter is deeply humbling and incredibly exhilarating."


FedEx Express again wins 'Aon's Best Employer Award' in Asia Pacific

FEDEX Express, the world's biggest express company, has been named a Best Employer in Asia Pacific in the Aon Best Employers programme for the fifth time.

A company is recognised as a Best Employer in Asia Pacific if it is named a Best Employer in three or more individual markets in the region.

This year, FedEx achieved this in six of the 12 markets in which the programme is run, namely Japan, Korea, Malaysia, New Zealand, Singapore and Taiwan.

"At FedEx, we believe in empowering people, and this is reflected in our People-Service-Profit corporate philosophy, in which investing in our employees is a fundamental part of our business strategy," said FedEx Express Asia Pacific chief Karen Reddington.

"I'm delighted that the success of our approach has once again been recognised by Aon's respected Best Employers Programme. We will continue to nurture our regional team and provide every single team member with the right support to reach their full potential."

Four factors are considered in determining whether an organisation is a Best Employer: high employee engagement levels; a compelling employer brand; effective leadership and a high performance culture.


Agility recognised as leader in Gartner's Magic Quadrant for 3PL providers

GLOBAL logistics provider, Agility has been named for a third year as a Leader in the Gartner Magic Quadrant for Third-Party Logistics Providers, Worldwide.

The Magic Quadrant evaluates logistics providers according to their vision and ability to execute.

Agility is client-focused and provides customised solutions, particularly in emerging markets. The company is known for having an entrepreneurial and open management team, supported by a proactive organizational structure.

"We believe the recognition by Gartner demonstrates our commitment to providing customers with seamless access to a depth and breadth of service offerings, highly seasoned competency and tailored solutions," said CEO Tarek Sultan in a company statement.

According to Gartner's report, "leaders rate well on the highly weighted criteria of execution and vision. This means the leading providers have extensive service offerings and infrastructure to make them available across an expansive global territory. They understand the market and customer needs and translate those into well-executed service offerings.

"They are formidable at logistics execution across the service lines and run highly professional, very large logistics businesses. Leaders also have well-structured strategies and business models to continue to expand their capabilities, regional coverage and industry specialisation."


UPS pilots sign on for US$238,000 a year and 40pc pension raise

ATLANTA's United Parcel Service (UPS) and its pilots union have agreed to a 14.6 per cent salary increase for an average of US$238,000 a year with signing bonuses of $60,000 bonus for captains and a $40,000 for first officers in a five-year contract.

The Louisville-based union, the Independent Pilots Association (IPA), said scheduling remains a problem, particularly rest time between flights, reported the Louisville Courier-Journal.

IPA president Robert Travis said he will continue to advocate for cargo's inclusion into duty and rest rules now applicable only to passenger aircraft. "Our advocacy for one level of aviation safety continues," he said.

An estimated 91 per cent backed the deal that includes hefty pay raises, a 40 per cent increase to pensions signing bonuses, in favour of retroactive pay, for those manning the cockpits.

UPS Airlines president Brendan Canavan called the settlement "a win-win contract offer ... Together, we have succeeded in taking care of both our people's needs and our business objectives."

The pilots had warned in April before a new round of talks overseen by the National Mediation Board that they were willing to strike, if needed, to get a new labour agreement signed.

Another background pressure is that Chinese airlines are offering $300,000 a year salaries to man cockpits of its rapidly expanding civil air fleet.


IAG Cargo launches six weekly flights to Tehran as EU lifts sanctions

IAG CARGO has started a new London to Tehran service, making it one of the few cargo carriers to directly connect the two cities, the company announced.

Customers will now benefit from six flights per week to and from Iran, which will improve connectivity between European and Middle Eastern markets.

This will provide greater flexibility over where and when they ship their goods. The route will be served by a British Airways B777- 200 aircraft.

This will provide forwarders with bellyhold capacity of six pallets and up to 20 tonnes of lift on each flight.

The new route comes with the easing of EU sanctions against Iran. With the country's economy expected to grow 4.8 per cent in 2016 and 5.4 per cent in 2017, the service will offer business great opportunity.

"With the second largest economy in the MENA region, Iran offers a huge opportunity for global trade," said IAG Cargo commercial chief David Shepherd.

"The country's economic growth means that connecting to Iran via our London hub to the rest of the world will be of real benefit to our customers," he said.

Flights to Tehran depart Heathrow daily at 21.10, arriving at 06:25 local time. Returning flights leave Tehran at 08:35 and arrive into Heathrow at 11:10, enabling next day connections to almost all destinations on the IAG Cargo network.


Asia Pacific air cargo volumes increase 3.9pc in July, says IATA

THE volume of air cargo transported by Asian airlines in July rose 3.9 per cent as measured in freight tonne kilometres (FTKs), according to data from the Association of Asia Pacific Airlines (AAPA).

Available freight capacity grew by 3.4 per cent, leading to a 0.4 percentage point increase in the average international freight load factor to 62.1 per cent, reported Payload Asia Singapore.

SaidvAAPA director general Andrew Herdman: "International air cargo demand has been relatively weak, with year-to-date demand registering a 1.5 per cent decline compared to the same period a year ago, but we have seen a modest pickup in air cargo volumes during the past couple of months."


IATA recognises Turkish Cargo's Istanbul hub as pharma excellence centre

THE International Air Transport Association (IATA) has awarded its Centre of Excellence for Independent Validators (CEIV) Pharma certificate to Turkish Cargo's Istanbul terminal at Ataturk airport.

The airline received the recognition for successfully meeting the requirements of the international good distribution practice guides (EU and WHO), IATA perishable cargo regulations (PCR) section 17 and temperature control regulations (TCR), and excellence in air cargo transportation and cargo handling services, reported London's freightweek.

The terminal has 3,000 square metres of specialised storage, ranging in temperature from minus 20 degrees Celsius to 25 degrees Celsius, with healthcare products occupying a dedicated area of 1,000 square metres.

In addition to thermal blankets and active container services to help customers, the airline plans to introduce a temperature-controlled dolly service to protect critical shipments from extreme heat or cold during handling.

The total value of the pharmaceutical market is estimated to hit US$1.6 trillion by 2020 with India expected to be the largest pharma manufacturer in the world in less than 15 years, according to the Cool Chain Association.


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