TT Club calls for more container inspections

Revised Guidelines for the Implementation of the Inspection of Cargo Transport Units (CTUs) issued in June 2022 by the IMO are aimed at helping governments to implement a uniform and safe inspection programme. The IMO Circular (MSC.1/Circ.1649) seeks to broaden the inspections undertaken and align fully with safety guidance developed during the last decade (previous guidelines date from 2012).

Specifically, governments are now requested to select from all cargo types, rather than simply declared dangerous goods, for inspection. Further the guidance takes account of the issuance of the CTU Code, revisions of container safety regulations and the need to minimise the movement of invasive pests. The Circular additionally notes the continuing low rate submission of inspection reports and encourages an increase in such inspections.

Peregrine Storrs-Fox, TT Club’s Risk Management Director, says: “With the string of container ship fire casualties and fatal incidents at storage facilities, most recently at Chittagong (Chattogram), in our minds, our current concerns are manifest. They constantly remind us of the importance of adequate safety procedures in packing, handling and transporting the array of cargoes that have the potential to cause catastrophic incidents.

“With only five of the 179 governments affiliated with IMO submitting reports on inspections at the last Carriage of Cargoes and Containers (CCC) sub-committee meeting in September 2021, the industry urgently seeks more collaborative support from governments in combatting the potential circumstances and cargo packing practices that cause dangerous incidents. It would be much appreciated if more national reports undertaken during 2021 can still be reported for consideration at the next CCC this September.

“However, TT Club calls for a viable sample of inspections in future based on the new guidelines. In this regard, TT would urge strongly that governments enter dialogue with industry to understand how the latter can work with enforcement agencies to improve safety.”

TT Club itself has long campaigned for an increased awareness of the issues surrounding the transport of dangerous goods, and all potentially hazardous cargoes. It is dedicated to improving standards for the safe and secure packing of all cargoes in cargo transport units.

There is a plethora of industry generated guidance on best practice relating to packing and handling of cargoes, including the Quick Guide to the CTU Code, along with a Checklist of actions required of those packing cargo in freight containers, published by the Cargo Integrity Group and available in several languages.

Such work by industry groups can only be strengthened by a partnership with governments. Their action on inspections, with the help of the new revisions to the IMO guidelines and use of that body’s reporting system is crucial.

Storrs-Fox concludes: “The international supply chains that service the trade in a myriad of commodities are complex and notoriously susceptible to disruption. Congestion and delays increase the challenges involved in maintaining safety levels in an environment where the demand for reliable delivery of goods is high. Such circumstances require an even higher level of attention to safe practices. The collection of information on the effective use and/or mis-use of these practices needs to be enhanced by a much higher level of rigorous inspections and report submissions from governments, but working from the understanding that this is a shared problem.”

Recovery in Ocean Shipment Volume at Chinese Ports

FourKites®, a leading real-time supply chain visibility platform, announces that it has seen a recovery in import and export ocean shipment volume at Chinese ports over the past weeks as COVID-19 lockdowns have eased.

Volume at the Port of Shanghai has increased since mid-May, with the 14-day average ocean shipment volume down only 4% compared to 12 March (the day before lockdowns went into effect) for shipments tracked by FourKites. This is up from mid-May, where shipment volume was down as much as 25% over the same period. FourKites has also seen ocean shipment volume increase at some other ports in the region, with the 14-day average volume up 4% at Shenzhen and up 11% at the Port of Hong Kong. Volume at Ningbo-Zhoushan and all other Chinese ports remained relatively stable.

FourKites has seen a recovery in the impacts to U.S. supply chains over the past week. For the first time since the lockdowns began, the 14-day average ocean shipment volume for loads traveling from Shanghai to the United States reached levels seen in mid-March, now up 3% compared to 12 March. Volume along this route had previously reached a low of 43% below levels seen in mid-March. FourKites saw a significant decrease in delays over the past week as well, with the 14-day average percentage of loads delayed now at 28%, down from 37% at the end of May and only 3% above levels seen in mid-March before the lockdowns began.

The average transit times for shipments traveling from Shanghai to the U.S. remained elevated, with the 28-day average transit time now at 73.0 days. This is an increase of 31% compared to 12 March, and an increase of 101% compared to this time last year.

Dwell times for import shipments continue to recover at the Port of Shanghai, with the 14-day average import dwell time now at 6.5 days. This is a decrease of 42% compared to the peak in late April, but is still 87% higher than levels seen in mid-March. Export dwell times at the Port of Shanghai remained elevated, with the 14-day average export dwell time at 7.5 days, a 53% increase over mid-March. Across the rest of China, import dwell times remained relatively stable, while dwell times for exports continued to increase. The 14-day average ocean dwell time at all non-Shanghai Chinese ports is now at 9.7 days, an increase of 34% compared to mid-March.

FourKites has seen over-the-road and rail/intermodal shipment volume recover in Shanghai over the past weeks. The 14-day average shipment volume for loads being delivered to Shanghai is now down only 29% compared to 12 March. In mid-May, over-the-road deliveries to Shanghai were down as much as 88% over the same period.

Commentary from Philippe Salles: “The re-opening of Chinese ports may not be easy in the coming months. It will create constraints on shipping capacity. Sourcing and shipping from Asia will remain challenging in Q3. The influx of cargo into Europe will have to channel through already congested gateways. The efficiency in scheduling and planning will determine the level of extreme difficulties faced by terminal and inland haulage operators which will be felt right up to the end buyer. In the long term shippers will need to invest in technology and skills in order to re-engineer their supply chains to ensure they work efficiently in this new situation.

“It is safe to predict that more lockdowns, especially with rising COVID cases around the world as well as slowdowns coming from weather, economic or political situations will occur. This uncertainty is here to stay for the foreseeable future. So everyone, from shippers to carriers to retailers to customers need to get used to uncertainty as the new normal and learn to be comfortable in this new environment. We will still face high freight rates and transport capacity constraints, but the overall situation should ease. In terms of logistics providers, there will be additional strategic investments made by large carriers and forwarders expanding their footprint, capacity and networks while accelerating their digital transformation. On the demand side, cross-border eCommerce logistics will keep growing at double digit Year-On-Year with a real influence on our future international supply chain models.”

BIFA joins calls to investigate container market

The British International Freight Association (BIFA) has written to the UK government  asking it to investigate the state of competition within the current deep sea container shipping market.

The UK’s main trade association for freight forwarding and logistics companies says that its members are concerned that certain practices undertaken by the principal container shipping lines, as well as easements and exemptions provided to them under competition law, are distorting the operations of the free market to the detriment of international trade.

In a letter to Robert Courts MP, Parliamentary Under Secretary of State at the Department for Transport, BIFA‘s Director General Robert Keen expresses the trade association’s concern that during a period of well-documented chaos within the container shipping sector, commercial power is becoming increasingly concentrated, resulting in diminished market choice and competition, and distorted market conditions.

Keen said: “BIFA members fully accept that a free market economy is open to all, but are increasingly concerned that the activities of the container shipping lines, and the exemptions from legislation from which they benefit, are distorting the operations of that market to the shipping lines’ advantage, whilst adversely and unfairly affecting their customers, especially freight forwarders and SME businesses.

“The facts speak for themselves. During a period that has seen EU block exemption regulations carried forward into UK law, there has been huge market consolidation.

“In 2015, there were 27 major container shipping lines carrying global containerised trade, with the largest having a 15.3% market share. Today, there are 15 shipping lines, organised into three major alliances carrying that trade, with some analysts observing that the market share of a single alliance on certain key routes could be over 40%.

“The pandemic has highlighted and accelerated this development, which has also contributed to dreadful service levels, and hugely inflated rates, with carriers allocating vessels to the most profitable routes with little regard to the needs of their customers.

“Drewry recently issued a profit forecast of more than US$150bn for 2021 for the main container shipping lines for which financial results are available.

“To put that into perspective, this is more than has been achieved in the previous 20 years combined, and many BIFA members consider it to be a case of blatant profiteering.”

BIFA is joining a growing number of organisations, including CLECAT and FIATA, the US Federal Maritime Commission, and the Australian Productivity Commission, in calling for governments at a national and pan-national level to give careful consideration to the evolving business arrangements in the container shipping market to see whether they are in breach of competition law.

 

 

Geest Line acquired

Seatrade Group and Jamaica Producers Group Limited have created a joint venture to acquire Geest Line Limited, the operator of one of the leading shipping lines in Europe serving the Caribbean and Latin America markets for over 65 years.

Geest Line sees this acquisition as a positive development as both JP and Seatrade have strong track records in the trade and the regions served by the company and know the trade well. Geest Line will continue to operate independently in serving its existing customers and markets whilst looking for further opportunities to extend its trade.

Seatrade, headquartered in Curacao, is a worldwide leader in reefer vessel shipping services.

JP, headquartered in Kingston, Jamaica, is a publicly listed company with global interests in Caribbean logistics services, port terminal operations, specialty food and drink production and agribusiness.

Yntze Buitenwerf, President of Seatrade, and Jeffrey Hall, CEO of JP, noted in a joint statement: “Geest Line is a company with a rich history of delivering excellent service to its customers on both sides of the Atlantic over the last 65 years. We look forward to working alongside Capt. Peter Dixon, Geest Line Managing Director, and his highly professional team in the UK as we continue this legacy and support Geest’s next stage of growth.”

Enhanced deep-water berth at Felixstowe

Hutchison Ports Port of Felixstowe has further enhanced its deep-water berth capacity following the successful completion of strengthening and dredging works to Berth 7 on Trinity Terminal.

Berth 7 – one of the Port of Felixstowe’s nine container berths – has been dredged from 15.0m to 16.5m below Chart Datum and the berth box widened from 55m to 70m.

Chris Lewis, Chief Executive Officer, Hutchison Ports Port of Felixstowe, said: “The Port of Felixstowe is ever-progressive and continuously invests in its infrastructure, equipment and people, with the view to enhancing its customer offering. As the number of ultra-large container ships continues to grow we will continue to improve and upgrade our facilities to meet the needs of our customers.

“Berths 8 and 9 are designed for a maximum depth of 18m, and the next phase of development will see further increases to the depths at Berths 6, 8 and 9. The deeper berths are being complemented by dredging planned by Harwich Haven Authority to increase the depth of the approach channel to up to 16m, further reinforcing Felixstowe’s position as the country’s number one deep-sea container port.”

The berth upgrade, together with a programme to extend the outreach of 10 ZPMC quay cranes to 23 boxes wide on Berths 6 and 7, are in direct response to the increasing size and depth of the world’s largest container vessels, keeping Felixstowe at the forefront of the UK logistics and supply chain.

The 19,630 TEU Manila Maersk, operated on the 2M AE6/NEU3 service to Asia, was the first vessel to use the deeper berth. With a departure draft of 15.6m, the vessel was the deepest-ever to be berthed on Trinity Terminal.

Boskalis Westminster Limited was the appointed dredging contractor for the project and used a combination of backhoe dredger, the ‘Nordic Giant’ with a bucket size of 13 cu m, and trailing suction hopper dredgers to undertake the works.

The 19,630 TEU Manila Maersk was the first vessel to use the Port of Felixstowe’s deeper Berth 7.

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