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Adriatic Gate Welcomes MSC’s New HADRIA Service

Posted on by Will Priestman

Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.’s (ICTSI) operation at the Port of Rijeka in Croatia, welcomed the commencement of the new HADRIA service by Mediterranean Shipping Company (MSC) with the maiden call of the MSC ANNICK on 9 April.

MSC’s standalone service marks a significant development for North Adriatic trade connectivity, offering direct weekly connections to the Far East via Malta.

“With the breakup of the 2M Alliance, we are excited to welcome the new standalone MSC HADRIA service to AGCT,” said Emmanuel Papagiannakis, AGCT chief executive officer.

“We expect shippers to embrace the new service, as well as MSC’s global connectivity and continued commitment to Rijeka as a major gateway for the Balkans and Central Europe,” he added.

The HADRIA service makes regular weekly calls, strengthening AGCT’s network and enhancing options for regional shippers looking for reliable, efficient access to global markets. With this new addition, AGCT continues to expand its portfolio of direct services, supporting the increasing demand for sustainable and cost-effective logistics solutions in the Adriatic region.

With a rich port history with over 50 years of industry experience, we seek to take advantage of our geographic position and provide an efficient gateway to Central and South East Europe

Recognizing that we are just one part of the logistics chain, we strive provide a seamless product ensuring all rail and road hinterland connections are met and providing additional services for your container.

With continuous investment in people, new technologies and infrastructure we are committed to meet customer requirements.

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London Gateway Launches New all-electric Berth

Posted on by David Priestman

DP World is celebrating the operational launch of the world’s first all-electric berth with the arrival of its first ships, marking a significant milestone at one of the UK’s most sustainable and advanced logistics hubs.

The MSC Sena (pictured) was serviced by an innovative all-electric fleet of vehicles and equipment at London Gateway, including four of Europe’s largest quay cranes, straddle carriers, and automatic stacking cranes, establishing a new global benchmark for low-carbon shipping facilities. The new 430m berth will increase trading capacity at the container port by more than a third, strengthening customer supply chains with enhanced global connectivity, increased reliability, and quicker turnaround times.

The opening of the berth has added a further 200 permanent jobs at London Gateway, which is a part of Thames Freeport, and will play a key role in DP World’s plan for the site to have the UK’s largest container port by trading volume within five years.

Last month at the UK Government’s International Investment Summit, DP World announced a £1bn investment for the construction of its fifth and sixth berths to further enhance the container port’s handling capacity and contribution to the UK economy.

Ernst Schulze, Chief Executive Officer for Ports & Terminals at DP World in the UK, said: “The arrival of the first ship at our new all-electric fourth berth is a huge landmark for DP World’s ambitions in the UK. We have already invested more than £2bn in the building of our modern and efficient facility at London Gateway in the last decade, connecting the UK with global supply chains and export markets. This new berth, alongside our £1bn investment in the fifth and sixth berths, will further enable us to service the largest vessels in operation worldwide today, and the larger, future megaships currently under construction, while also advancing our goal to be net-zero by 2050.

“At London Gateway and across our UK operations, we are quickly building a unique array of assets and end-to-end supply chain capabilities, helping our customers stay competitive in a fast-changing trading environment, while serving the national interest.”

The new berth will operate alongside the London Gateway Logistics Park, which has 9.25 million sq. ft of warehousing capacity, half of which is already developed, and multimodal connectivity to domestic and international road and rail networks.

In addition to its hubs at Southampton and London Gateway, DP World’s offer includes logistics, forwarding and European transport capabilities, all of which are being integrated into the company’s global network.

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Shipping CEOs to Accelerate Maritime Decarbonization

Posted on by Keith McKinley

The CEOs of leading global shipping lines have issued a joint declaration at COP 28 calling for an end date for fossil-only powered newbuilds and urging the International Maritime Organization (IMO), the global regulator, to create the regulatory conditions to accelerate the transition to green fuels and maritime decarbonization.

Global temperatures are breaching critical levels, creating more frequent and devasting results. Therefore the importance of shipping achieving IMO’s 2030, 2040, and net-zero 2050 greenhouse gas (GHG) targets is very clear. The only realistic way to meet those targets for an industry that accounts for 2-3% of global GHG emissions is to transition from fossil to green fuels at scale and at pace.

Being at the forefront of introducing lower greenhouse gas (GHG) emission ships underscores the CEOs’ commitment to the IMO GHG reduction objectives for 2030, 2040, and 2050. As frontrunners, the CEOs are convinced that even closer collaboration with IMO regulators will produce the effective and concrete policy measures needed to underpin the investment within maritime shipping and its ancillary industries that will enable decarbonisation to occur at the pace required.

Their joint declaration calls for the establishment of four regulatory ‘cornerstones’:

An end date for new building of fossil fuel-only vessels and a clear GHG Intensity Standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed to accelerate the energy transition.

An effective GHG pricing mechanism to make green fuel competitive with black fuel during the transition phase when both are used. This can be done by distributing the premium for the green fuels across all the fossil fuel used. With low initial volumes of green fuels any inflationary effects are minimised. The mechanism must also feature an increasing regulatory incentive to achieve deeper emissions reductions. Furthermore, beyond covering the ‘green balance fee’, revenue generated by the mechanism should go to an RD&D fund and to investments in developing countries to ensure a just transition that leaves no one behind.

A vessel pooling option for GHG regulatory compliance where the performance of a group of vessels could count instead of only that of individual ships, ensuring investments are made where they achieve the greatest GHG reduction and thereby accelerating decarbonisation across the global fleet.

A Well-to-Wake or lifecycle GHG regulatory basis to align investment decisions with climate interests and mitigate the risk of stranded assets.
In a unprecedent action, major players of the shipping industry express their shared conviction that regulation can play a key role in mitigating the cost of the green transition as well as the risk of extreme weather events. Given the cost of climate change is far greater than the cost of the green transition they look forward to being joined by other companies.

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said, “Climate change is a general concern not a matter of competition. The CMA CGM Group is extremely pleased to join this unique Coalition, which brings together leading shipping companies to urge to the adoption of the upper targets of the IMO trajectory. This sets an ambitious milestone for the decarbonization of our industry. By collaborating with others, we each take a new step in our energy transition, while ensuring a collective level playing field and access to greener fuels for the industry.

“This new commitment is fully in line with the CMA CGM Group’s ambition to be Net Zero by 2050. We have already invested close to $15 billion in decarbonizing our fleet, which will enable us to have almost 120 vessels capable of being powered by decarbonized fuels by 2028. Pioneer in LNG as a transition energy, our Group has also launched several large industrial partnerships to diversify our sourcing with even more decarbonized fuels. In 2023, the CMA CGM Group will reduce its CO2 emissions by around -1 million tons.

“Alongside the members of this coalition and all those who will join us afterwards, the CMA CGM Group pursues its decarbonization journey and renews its commitment to a shared and sustainable future.”

Vincent Clerc, Chief Executive Officer of A.P. Moller – Maersk, said, “A.P. Moller – Maersk wants to accelerate the green transition in shipping and logistics and a crucial next step is to introduce regulatory conditions which ensure that we create the most greenhouse gas emission reductions per invested dollar. This includes an efficient pricing mechanism to close the gap between fossil and green fuels and ensuring that the green choice is easier to make for our customers and consumers globally. The momentum for green fuel is building and we are pleased to see strong partnerships across the industry as we continue our joint efforts of making decarbonisation in shipping successful.”

Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd, commented, “Our collective responsibility for a sustainable future and clean practices is paramount. At Hapag-Lloyd, we reaffirm our commitment to advance the decarbonization of the maritime industry and strive to be at the forefront of the energy transition. We believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing our carbon footprint. This commitment is in line with Hapag-Lloyd‘s goal of achieving a net-zero carbon fleet by 2045 and reflects our industry’s unwavering commitment to environmental responsibility.”

Soren Toft, Chief Executive Officer of MSC Mediterranean Shipping Company, added, “Shipping is at the forefront of technological innovation when it comes to decarbonization and at MSC our fleet renewal strategy includes 100 dual fuel vessels. We are proud to be part of this unprecedented collaboration with our peers and it is only right that together we follow this path towards net zero that we must achieve by 2050. The support of Governments across the world will be an essential element to reach our common goal and among those efforts we want to see an end to delivery of ships that can only run on fossil fuels. MSC has fully supported and committed to net decarbonization by 2050 but without the full support from other stakeholders particularly energy providers it will be extremely difficult to meet those objectives – no one can do this alone. Today it feels like we are one step closer in this regard, but concrete supply of alternative fuels and globally recognised GHG pricing are essential to achieve our goals.”

Lasse Kristoffersen, President and Chief Executive Officer of Wallenius Wilhelmsen, said, “At Wallenius Wilhelmsen we have decided to be a shaper of the journey to net-zero and focus our investments in supporting this ambition. Our customers want to partner with us on the voyage. Now, we need a global regulatory framework matching this ambition to drive the investments needed at a global scale.”

More than just Containers on Container Ships

Posted on by Keith McKinley

Even if container ships are optimized to handle containers in particular, there are nevertheless good opportunities to ship so-called breakbulk cargo far beyond the limitations of what can fit in a container. Not least on board the very largest container ships offering direct liner service between the Port of Gothenburg and ports in Asia and North America every week.

“We notice that more and more people are discovering the possibility. It’s nice to see that we can expand our customer base and thus also allow them to take advantage of our liner network and see that it is perfectly possible to load and unload almost anything on a container ship,” says Marco Cicola, responsible for breakbulk segment at the shipping company MSC Sweden.

The opportunities using container vessels are numerous. Depending on the size of the ship, cargo can be up to 40 meters in length and up to 12 meters in width. The largest ships that sail directly between Gothenburg and Asia each week are close to 60 meters wide and can load breakbulk cargo of around 40 meters in length. The cranes on the land side at APM Terminals Gothenburg are able to handle cargo of up to 100 tons.

This means that large and heavy breakbulk cargo in the form of e.g., transformers, construction machinery, large inputs for the steel industry are not only possible, but also actual examples of breakbulk cargo shipped to and from the Port of Gothenburg on container ships.

At the Port of Gothenburg and through the various terminals within the port area, there are plenty of possibilities to load and unload breakbulk cargo. The most common approach is to roll the goods on or off the ships at the port’s RO/RO terminals, however this is not the only option, as Richard Mellgren, Senior Business Development Manager at Gothenburg Port Authority explains:

“It is becoming increasingly common to ship breakbulk cargo on container vessels, and it is a good complement for container shipping lines. For project cargo customers, this means that they gain access to an overall broader range of options at the port – especially when it comes to direct calls to Asia and North America. Due to the specialist nature of project cargo, each breakbulk and out-of-gauge shipment is considered on a case-by-case basis, tailoring the solutions around the customers’ unique requirements and using our global service network to deliver their cargo anywhere in the world.”

Marco Cicola concludes: “As customers begin to focus more intently on sustainability, transport solutions at sea are becoming increasingly interesting, even for project loads. Moving transport from land to sea is a good way for customers to reduce their carbon footprint, and it can also prove cost-effective, so they are more and more open to new solutions that make this possible.”

Facts: Breakbulk with MSC in the Port of Gothenburg:
Departures: 1/w to and from Asia + 1/w to and from North America + 1/w to and from Antwerp.
Destinations in Asia on direct service: Singapore, Shanghai, Dalian, Xingang, Busan, Ningbo. Destinations in North America: New York, Philadelphia, Norfolk, Jacksonville.
Other destinations: Worldwide with transshipment in Antwerp.
Load dimensions: Max 40 x 12 meters.
Load weight: Up to 100 tons.

MSC Air Cargo Partners with IBS

Posted on by Keith McKinley

IBS Software, a global leader of SaaS solutions to the travel and cargo industry, has been selected by the air cargo unit of MSC Mediterranean Shipping Company, as a strategic partner in a bid to digitally transform its air cargo operations.

iCargo, the Software as a Service solution for air cargo management from IBS Software, will install a true digital platform that covers cargo sales, operations, cargo accounting and portal for MSC. The standard product implementation will help MSC to go-live faster and start business operations at the earliest opportunity. Once fully implemented, iCargo will enable MSC to have full visibility of its air cargo value chain, covering sales, operations and accounting, while also gaining insights for continuous business improvement.

The partnership enables IBS Software to deploy iCargo for a company that is already the world’s largest container carrier and which is now growing its MSC Air Cargo unit, as a complementary business to its core ocean shipping solution. iCargo adheres to best practices in the air cargo industry and is fully compliant with global industry standards and initiatives – such as Cargo iQ, C-XML, OneRecord, e-AWB and e-Freight – making this latest development a remarkable moment across the logistics industry. It is an important step toward achieving seamless operations across multi-modal logistics models, increased efficiency and the productivity to power rapid global trade and growth IBS Software has long advocated for.

“This is our first step into this market, and we plan to continue exploring avenues to develop air cargo in a way that complements MSC’s overall solutions to our customers. This is why we’ve engaged IBS Software in a strategic agreement to implement their industry leading iCargo platform. While we appreciate that many existing processes may remain relevant, our business is continuously evolving; and we believe that improvements in how a multimodal business operates internally can help its customers achieve success. We see great potential in IBS Software’s capabilities and solutions, through which we expect to harness the power of digitalisation to help achieve MSC Air Cargo’s objectives” said Mr. Jannie Davel, Senior Vice President, MSC Air Cargo.

“We’re thrilled to embark on this partnership and to support MSC Air Cargo’s new business objectives in the cargo industry. We’re confident the iCargo solution and the team that continuously innovates our products will take MSC’s multi-modal business model to new heights.” said Ashok Rajan, Head of Cargo & Logistics Solutions at IBS Software.

MSC Mediterranean Shipping Company, headquartered in Geneva, Switzerland, privately owned and founded in 1970 by Gianluigi Aponte. As one of the world’s leading container shipping lines, MSC has 675 offices across 155 countries worldwide with over 150,000 employees. With access to an integrated network of road, rail and sea transport resources which stretches across the globe, the company prides itself on delivering global services with local knowledge. MSC Air Cargo is a new business unit that complements the existing ocean container shipping solutions and is serving key trade lanes and various industries, including those which traditionally have significant air cargo transportation needs.

Pilot Partners for Digitization

Posted on by Keith McKinley

The digital release process in the German seaports has reached the next level. During the pilot phase with shipping companies Hapag-Lloyd, MSC and CMA CGM as well as the logistics service provider Kühne+Nagel, the project was made ready for the market launch while also adding new modules. The nationwide solution is being jointly developed under the name German Ports by the IT service providers Dakosy AG in Hamburg, and dbh Logistics IT AG in Bremen.

The partners participating in the pilot phase are all motivated by a common interest. They want to implement a standardized, digitalized release process for containers imported into the German seaports of Hamburg, Bremerhaven, Bremen and Wilhelmshaven. Authorized officers Dirk Gladiator at DAKOSY and Holger Hübner at dbh summarize the feedback received during the test run: “The pilot participants enjoy the benefits of a high degree of automation, increased security and a digital release process that runs in real time.”

Pilot user Michael Schröder at Hapag-Lloyd explains the practical significance of the project: “The import release process has always involved a great deal of manual work for shipping companies and forwarders due to the exchange of e-mails and PDF documents. The German Ports platform is an important step towards digitalizing and streamlining the process, and we have been involved in its development from the very start. We strongly welcome the multi-site cooperation between DAKOSY and dbh, which ensures a uniform solution for the German seaports.”

Integration of alternate return depots

To reduce the numerous email exchanges in the existing process, DAKOSY and dbh are currently integrating new functions into German Ports. One of these is the option to select a different depot for the return of empty containers in the course of the release process. Fabian Gäbel from Kühne+Nagel describes this feature, which is very important for freight forwarders: “Even during the pilot phase, the option of executing releases while specifying an alternate return depot proved to be an indispensable component for our system integration. In order to further reduce unnecessary e-mail communications in the future, we very much welcome the fact that this latest step has been taken and that the empty container depot exchange function has been integrated into the German Ports platform. It’s another important step towards the continuous expansion of our digital ecosystem.” The new feature “alternate return depot” will be available through German Ports via an EDI interface as well as in the web application.

Inclusion of declaration of assignment

Another new function is the digital declaration of assignment. To clarify: the declaration of assignment enables the release by the authorized representative (consignee) named in the B/L to a third party. “Currently, this is transmitted by e-mail or by fax. Using German Ports, we can digitalize and standardize this process. With between 25 and 30 percent of these transactions involving a declaration of assignment, we see great potential for this function,” concludes Gladiator. Current feedback from the industry shows Gladiator and Hübner that the functional extensions ‘alternate return depot’ and ‘declaration of assignment’ are attracting a great deal of interest from freight forwarders.

Container and vessel information for multiple locations

In addition to the release process, DAKOSY and dbh will provide multi-site container and vessel information for the most important German North Sea ports. “Both functions are expected to be operational in the second half of this year,” Hübner predicts. The container information service will centrally display the current loading and delivery data as well as the most important status information about the progress of the corresponding customs processes. This means that it is no longer necessary to switch between different portals for each separate port of transhipment. In the Vessel Information module, current call and departure data can be retrieved centrally via a single platform for Bremerhaven, Hamburg and Wilhelmshaven.

Biofuel to Reduce Supply Chain Emissions

Posted on by Keith McKinley

DB Schenker is expanding its green ocean freight services and has secured an arrangement to reduce supply chain emissions by using 12,000 metric tons of biofuel component for all of its own consolidated cargo, less-than-container load (LCL), full-container-load (FCL) and refrigerated containers (reefer containers), from MSC Mediterranean Shipping Company, the world’s largest container line.

The amount of biofuel purchased is enough to save an additional 35,000 metric tons of CO2 equivalents (CO2e) along the entire production chain (well-to-wake) in the market. The equivalent of around 30,000 standard containers (TEU) may be shipped with net-zero CO2 emissions, depending on how the fuel is used during navigation.

The purchase agreement signed this month represents one of the largest carbon-insetting biofuel deals between a freight forwarder and a shipping company. It sets out the use of certified sustainable, second-generation biofuels – derived from used cooking oil – instead of conventional fossil-based marine fuel. The 12,000 metric tons of biofuel component will be blended between 20 and 30%, resulting in approximately 50,000 metric tons of blended biofuel to be used in MSC’s container ships. The agreement allows DB Schenker to offer its customers an off-the-shelf product that enables net-zero ocean transport.

Certified emission reduction for customers’ carbon footprint

This partnership is the latest impressive example of DB Schenker’s commitment to clean logistics and is another solid contribution to increasing the demand for alternative fuels in the industry. Similar to net-zero flights using sustainable aviation fuel (SAF), customers can now book regular net-zero ocean transport and receive an annual certificate of their emission reduction for their carbon footprint. The latter means that every metric ton of biofuel is bunkered in addition to any legal mandate and carrier’s set fuel purchase orders.

Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker: “Together with MSC, we are offering our customers a convenient and clean solution using the latest generation of marine biofuel to help them achieve a real additional reduction in their emissions. We are doing this because we firmly believe it is the right thing to do and are therefore paying for biofuel purchases in advance. One thing is certain: the more customers demand climate neutrality throughout supply chains, the faster we achieve clean container ocean freight.”

Caroline Becquart, Senior Vice President of MSC: “Decarbonizing ocean freight cannot be achieved by a single player and requires collaboration between shipping and logistics companies and their customers. MSC Biofuel Solution is our first certified carbon insetting program that reduces emissions in our customers’ supply chains, accelerating the energy transition by creating demand for net-zero-carbon shipping and delivering direct CO2 savings. We’re delighted to partner with DB Schenker, with whom we share similar climate ambitions along our collective journey to net zero.”

Biofuel can be used for regular ocean freight operations without adjusting a ship’s infrastructure or supply chain, making it a particularly convenient solution. MSC Biofuel Solution is designed to be a win-win approach to move from ambition to action. MSC bunkers sustainable biofuel, and clients benefit from the CO2 savings, passing them on throughout the shipping value chain. This differentiates the program from carbon offsetting initiatives that focus on future emission reductions outside the shipping industry.

Biofuel is eminently well-regarded as a decarbonization transition fuel due to its high quality (according to EU RED II Annex IX, Part A+B) and the principle of additionality. The latter means that every metric ton of biofuel is produced and bunkered “in addition” to the baseline and therefore is an additional reduction in emissions in the overall carbon footprint and an actual avoidance of fossil fuels.

The entire chain of custody for the carbon insetting process is independently verified, with the carbon savings certified by external certification organizations attesting to the avoided emissions from the carbon footprint of freight transport. The bunker supplier also issues proof of sustainability for the biofuel.

Second-generation biofuel, also known as advanced biofuel, ensures at least 80% reduction in CO2e emissions (well-to-wake). For DB Schenker’s ocean freight, it is also guaranteed palm oil free, including no palm oil waste and no indirect land use change (ILUC).

The fuel needed for a 100% reduction in container transport is ensured by over-allocation, which also offsets the emissions generated when the fuel is produced and transported. This allows DB Schenker to achieve net-zero emissions well-to-wake and avoid fossil fuels in ocean freight.

 

 

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