Shipping

By changing culture of operations, Con-way Freight expects to enhance competitiveness.    A company can spend millions of dollars on new equipment and systems in an effort to become more efficient and profitable, but if it doesn’t understand the way its people operate within the workplace then these investments are likely to fall far short […]

   A recent 2nd Circuit decision could strengthen the hand of shippers or carriers that use derivatives such as forward freight agreements (FFAs) to enforce contracts. (D’Amico Dry Limited v. Primera Maritime. 2nd Cir. No. 11-3473-cv June 12.)    D’Amico operates dry-bulk ships. A slowdown in trade could result in lower rates, fewer voyages, and […]

Project and heavy-lift carriers see oil and gas equipment cargoes leading recovery.    The outlook for the breakbulk cargo sector, including vessels that carry heavy-lift and project cargo, appears to be brightening, but the industry is still burdened by an oversupply of capacity.    “I genuinely think the market is more optimistic than it has […]

Port, private-sector spending expected to boost rail, warehousing, and agriculture facilities.    The Port of Oakland is planning to spend hundreds of millions of dollars over the next few years on near-dock warehousing and increased rail infrastructure for both containerized and bulk commodities.    The massive “Oakland Global” project “is an exciting story for us for […]

   On the heels of the decision in June by China’s Ministry of Commerce to reject the plan by the world’s three largest liner carriers to form the P3 Network, two of the three—Maersk Line and Mediterranean Shipping Co.—said in July they have agreed to enter a 10-year vessel-sharing agreement (VSA) on the Asia-Europe, transatlantic […]

   No matter how many systems or automated solutions a company puts in place, there’s still that ever-present element of human input required to keep the supply chain humming.    Any seasoned logistics manager knows of occurrences in which the human element has delayed or even stopped a shipment from moving. The reasons are myriad, […]

   This month’s issue of American Shipper contains articles about improvements being made at both the Global Container Terminal and Port Newark Container Terminal, but there’ also been interesting news involving other marine terminals in New Jersey.    The Wall Street Journal and Reuters reported in late June that Deutsche Bank is looking to sell […]

   The National Climate Assessment released in May by the federal government warned the U.S. transportation system is becoming “increasingly vulnerable to climate change impacts.”    At the 33rd World Congress of the World Association for Waterborne Transport Infrastructure (PIANC) in San Francisco last month, Dan Mecklenborg, senior vice president and chief legal officer of […]

Port of San Francisco sees a future in breakbulk, bulk cargo.    Since 2005, when the Port of San Francisco stopped handling containers, its cargo business has dropped dramatically, from 224 vessel calls and 2.4 million tons of cargo in 2004 to 39 vessel calls and 1.2 million tons in 2013.    But the port […]

Port drivers and their employers in the ports of Los Angeles and Long Beach on Saturday agreed to a “cooling off” period brokered by L.A. Mayor Eric Garcetti. 

While containers are moving through the ports of Los Angeles and Long Beach, concern remains that drayage truckers’ pickets could disrupt contract negotiations between the ILWU and PMA. 

   China Shippers’ Association Vice President Cai Jia-Xiang said Chinese regulators need better statistics on the Chinese market share of the carriers, but believes they are above the 30-percent limit in the China-Europe trade.

   “During this short-term bump in volumes, CN and its terminal partners will be striving to ensure that our base-level business, in particular Canadian cargo, will continue to be supported appropriately,” a spokesman said.

   The attention of carriers and shippers is focused Friday morning on events in Los Angeles and Long Beach, where a potentially volatile labor situation is unfolding.

   “Long truck lines are expected at the ports … as drivers and their allies picket Green Fleet Systems, Total Transportation Services, Inc., and Pacific 9 Transportation trucks,” Justice for Port Truck Drivers said.

   The companies are seeking a contract with terms similar to those the ILWU signed with the new Export Grain Terminal that opened in Longview, Wash., in 2012.

   The United States exported 1.04 million net tons of steel in May, 4.1 percent below April exports and 10.9 percent less than the May 2013 level, according to the American Institute for International Steel.     U.S. steel exports had increased 3.8 percent in April and 15 percent in March. However, volumes to the United […]

   U.S.-flag Great Lakes carriers are grateful for the increased water levels in the lakes, however it has not yet resulted in full loads of iron ore, coal, limestone, cement and other cargoes. 

   Maersk supports the lower emissions limits, noting they will have “significant positive effects on the environmental and health,” but also called for “strict regulatory enforcement to … ensure a level playing field for ship operators.”

   The Senate on Wednesday confirmed Darci L. Vetter as the next U.S. chief agricultural negotiator.    President Obama nominated Vetter in January, citing her experience in numerous agriculture, trade and diplomatic positions across several branches of the federal government — most recently as deputy undersecretary for farm and foreign agricultural services at the U.S. […]

   Robert McEllrath, president of the ILWU, said that ILWU members have been locked out of the Mitsui-United Grain Corp. elevator since February 2013 and the Marubeni-Columbia Grain elevator since May 2013.

   Supply chain software developer LLamasoft has opened a new office in Tokyo with more than a dozen staff, expanding its presence in the Asia-Pacific region.     The office will be managed by Misao Sasaki, chief executive officer for LLamasoft Asia.    The expansion will bring the LLamasoft supply chain design software suite including Supply […]

   MOL and China Shipping (Group) Co. signed shipbuilding contracts with Daewoo Shipbuilding & Marine Engineering Co. in Korea to build three ice class liquefied natural gas carriers.     The ships are intended for Yamal LNG project, which is located at Port Sabetta off Russia’s northern coast.     The ice class LNG carriers for the […]

   A proposed canal across Nicaragua to link the Pacific and Atlantic Oceans would extend 173 miles and cost $40 billion.    Nicaragua President Daniel Ortega and Wang Jing, the chairman of China’s HKND, described the route selected for the canal and indicated that construction would begin in December, during meetings this week.    In […]

   Rail operator Naviland Cargo will increase the frequency of its Marseilles Fos-Strasbourg service from three to five roundtrips per week by the end of the year.    The company announced its intention during a recent presentation in Strasbourg.    “With 10 trains per week serving Strasbourg, transit times via Marseilles Fos are set to […]

   In addition to the U.S., the other trading partners involved in the negotiations are Australia, Canada, China, Costa Rica, the European Union, Hong Kong, Japan, South Korea, New Zealand, Norway, Singapore, Switzerland and Taiwan.

   Several terminals in Ports of Los Angeles and Long Beach were briefly closed Tuesday morning after members of the International Longshore and Warehouse Union honored picket lines set up by Teamster protesters.

   “With the overall uncertainty already seen in the eastbound freight market, the central issue for shippers and carriers alike is maintaining service and schedule reliability,” explained TSA Executive Administrator Brian Conrad.

   The Teamsters said Monday that they had shut down operations at three drayage companies servicing the Ports of Los Angeles and Long Beach that employ about 400 drivers, but it was unclear whether the protests would widely affect container terminal operations at the ports after the International Longshore and Warehouse Union announced a three-day […]

   In a filing with the Tel Aviv stock exchange, Israel Corp. said a district court agreed to change the terms of the Israel government’s “golden share” so that state approval would be required only for transfers of more than 35 percent.

   Hyundai Merchant Marine said it has taken delivery of the third in a series of five, 13,100-TEU ships being built at a cost of $129 million each by Daewoo Shipbuilding and Marine Engineering.    Hyundai Drive has joined the G6 Asia-Europe Loop 6.    A similar group of five ships was built by the […]

   The International Longshore and Warehouse Union and employers represented by the Pacific Maritime Association said late Monday they had “agreed to take a 72-hour break from negotiations on a new coast-wide contract while the ILWU attends to an unrelated negotiation taking place in the Pacific Northwest.” The subject of that negotiation was not specified, […]

   In the early 1950s, Diaz followed his father into the shipping business at Garcia and Diaz as a ship agent and manager. He later became vice president at Grace Lines and T.J. Stevenson Co., and then was named president of West Coast Lines.

   Mundra will become India’s largest container port in next 24 months, with a total container handling capacity reaching 5.5 million TEUs, CMA CGM said. The companies plan to begin construction immediately.

   “In the past, when transporting sensitive freight such as precision equipment, medical instruments or food products over land, it was necessary to use air-suspension trucks. However, air-suspension trucks have high costs,” the company said.

   Drivers from three drayage firms began what they are calling an “unfair labor practice strike” at truck yards and marine terminals at the ports of Los Angeles and Long Beach Monday morning.    The group Justice for Port Truckers, part of the Teamsters Port Division, said, “These unfair labor practice strikes are the fourth […]

   The cranes, which are currently under assembly at the Newark, N.J., terminal, are only the most visible sign of a $500 million project to improve PNCT, with work extending throughout the facility.

   Global Container Terminal is not the only facility at the Port of New York and New Jersey being upgraded.    Port Newark Container Terminal expects to put into operation three new cranes, which arrived at its terminal in May, later this summer.    The cranes, which are currently under assembly at the Newark, N.J. […]

   At a meeting of the Long Beach Board of Harbor Commissioners on June 23, Al Moro, acting executive director, said the longer construction period may also raise the cost of the project, which the port had previously estimated at $1.2 billion.

   ExxonMobil said it will invest more than $1 billion in its refinery in the port of Antwerp.    The existing ExxonMobil refinery in Antwerp is one of the company’s best in terms of cost and energy efficiency, according to the Antwerp Port Authority. The new refinery will convert heavy, high-sulphur oil into cleaner products […]

   NYK Stolt Shipholdings, a joint venture company by NYK and Stolt Tankers, the tanker division of Stolt-Nielsen Ltd., has ordered two 12,500-deadweight-ton parcel tankers from Japan’s Usuki Shipyard Co. Ltd.    The two new vessels are the ninth and 10th vessels ordered, following the eight that the joint venture currently holds and operates, and […]

   TransWorks and Raven Logistics have formed an alliance to provide shippers a “one-stop shop” for managing transportation by either rail or truck.    TransWorks, based in Fort Wayne, Ind., develops and manages computer systems for transporting large shipments of truckload freight, handling 5 million shipments annually, while Raven Logistics, of Naples, Fla., offers rail […]

   Hanjin Shipping said it had secured KRW 300 billion (about $297 million) through the spin off of its bulk shipping business to a new company that will be jointly owned by Hanjin and Hahn & Co., one of the largest private-equity companies operating in South Korea.    Hanjin is contributing 36 vessels to the […]

Danieli    The Israeli business newspaper Globes and Reuters are both reporting that Rafi Danieli plans to step down as chief executive officer of Zim and will become chairman of the container shipping line.    Globes said Danieli has been with Zim for 35 years and served as CEO for five years, leading the company […]

   Old Dominion Freight Line has opened additional container drayage facilities in Front Royal, Va., and Portland, Ore., increasing its number of drayage facilities to 20 across the country.     “The facilities will allow Old Dominion to expand coverage in the mid-Atlantic and the Pacific Northwest and will also help us meet growing demand from […]

   Talks continue between the West Coast dockworkers union and its employer representatives, despite passing the 5 p.m. (PST) contract expiration Tuesday. Shippers, meanwhile, are increasingly concerned about the lack of forthcoming details from the PMA and ILWU during the contract negotiations.

   Similar to previous U.S. equivalency arrangements with Canada, the European Union, and Japan, the arrangement with South Korea eliminates significant barriers, especially for small- and mid-sized organic businesses.

   “I don’t see that it is chassis any more than it is congestion,” said Fred Johring, president of Golden State Express. “As these big vessels have started coming in, it has taken these terminals to their knees.”

   The current contract between the International Longshore and Warehouse Union and employers is due to expire tomorrow, July 1, but nearly all observers are expecting talks to continue.

   Shareholders of Israel Corp. approved a debt restructuring agreement for Zim, but the company is still trying to negotiate an agreement over the “golden share” the Israeli government maintains in the company.

   A senior executive at CMA CGM also said that the fact that the P3 will not move forward will have no impact on CMA CGM’s 2014 results, saying that the financial investment in the project was minimal.

   CMA CGM said the first in a series of 28 new containerships with capacities of 9,400 TEU – 10,900 TEU will enter its fleet on June 30, with a design that it said signals its ambitions to be a leader in the refrigerated cargo business.    The CMA CGM Danube will begin its maiden […]

   “Even though a labor agreement is not expected to be reached by the June 30 deadline, the ILWU and PMA must remain at the negotiating table, without engaging in disruptions,” according to  a recent study.

   Nautilus Holdings, Ltd., a company that owns 16 containerships and charters them to various liner companies, filed for protection along with several affiliates under Chapter 11 of the U.S. Bankruptcy Code on Tuesday, citing the downturn in the container shipping industry.    The ships have been on charter to companies such as Maersk, Evergreen, […]

   The Task Force was created by the Port Authority with the New York Shipping Association in December 2013 to identify challenges and examine long-term recommendations to improve service reliability and efficiency.

   The Maritime Piracy Humanitarian Response Program is asking that seafarers attacked and kidnapped by pirates be remembered on the International Maritime Organization’s Day of the Seafarer 2014, celebrated on June 25.    “As the world celebrates the Day of the Seafarer 2014 and pays tribute to their dedication and contribution to global trade, MPHRP […]

   Bloom brought INTTRA from a start-up to a firm that originates more than 23 percent of global container traffic. The company announced earlier this year he was stepping down, but was staying to help with transition to a successor.

   Zim’s parent company said in a stock exchange filing last week that the liner company has held talks seeking a strategic partner, but said both its debt and the Israel government’s “golden” share were obstacles in those negotiations.

   Port Canaveral has signed a 35-year agreement with GT-USA, the U.S. arm of Gulftainer, a terminal operator headquartered in the United Arab Emirates, to operate and further develop its container and multi-purpose cargo terminal.

   OW Bunker, a distributor of marine fuels, has acquired marine fuel broker Wilhelmsen Marine Fuels, a subsidiary of Norwegian Wilhelmsen Maritime Services.    Terms of the deal were not disclosed.    Wilhelmsen Marine Fuels’ main activity is broking services from offices in Oslo, London and Singapore. The firm will continue as a separate business […]

   Third-party logistics provider Yusen Logistics has started temperature-controlled, less-than-truckload services for food products in Indochina.    “With reefer trucks often used for road transportation of food products and other chilled cargo, solutions can be costly with scheduling issues, as trucks sometimes need to be chartered even for small orders, or postponed until more cargo […]

   The 15 container shipping lines that are members of the Transpacific Stabilization Agreement have delayed the effective date of a scheduled peak season surcharge of $400 per 40-foot container from June 15 to July 1, saying that the new date coincides with “expiration of various market rates on June 30.    “The objective is […]

   Less-than-truckload carrier Old Dominion Freight Line has completed an expansion to its Portland, Maine, facility.     The renovated service center has 43 doors — more than 60-percent more doors than the original service center, Old Dominion said. The company entered Maine in 2005.    The service center provides service throughout Maine, including Sanford, Scarborough, […]

   The European Commission said Tuesday it has extended by another five years until April 2020 thevalidity of its existing legal framework exempting, if certainconditions are met, liner-shipping consortia from EU antitrust rules.    The decision comes days after China scuttled plans for the P3 Network that Maersk, MSC and CMA CGM planned to operate […]

   APM will fund the $35 million in improvements, which will raise the cranes 32 feet and extend the boom reach by 10 feet. Work is expected to begin this fall and be completed in 2016.

   The PMA has released a study that cautions, “Should terminal charges at the West Coast ports increase as the result of the contract negotiations … the competitive logistics position of the West Coast ports will be eroded.”

   Japanese carrier “K” Line announced on top of its recent eight-vessel building order, which will be delivered from 2015 to 2016, that it has ordered two additional car carrier vessels capable of carrying 7,500 car-equivalent units.    The two vessels will be delivered in 2017 from Shin Kurushima Dockyard Co. Ltd., the carrier said.

   Drewry said the decision to block the P3 Network “will probably postpone the stabilization of the over-supplied and unprofitable carrier industry, but the further development of mega-alliances will not stop here.”

   The Georgia Ports Authority said it had record cargo volumes in May.    The agency said 290,436 TEU moved through Savannah, 11-percent more when compared to May 2013. Breakbulk volumes were 266,734 tons, also an 11-percent gain over May 2013. Automobiles and other ro/ro cargo such as machinery volumes were up 7 percent to […]

   The decision by China earlier this week to turn disallow the P3 Network should not be an obstacle to the operation of other vessel-sharing agreements, said Commissioner Richard Lidinsky of the Federal Maritime Commission.

   The National Labor Relations Board has consolidated complaints against Green Fleet Systems that allege labor law violations and the violation of a settlement agreement reached with the International Brotherhood of Teamsters.

   Israel’s Minister of Finance has said the country will not give up its so-called “golden share” in Zim.    A notice on the ministry’s website said that the decision was made after a meeting with representatives of the Ministry of Finance, the Ministry of Defense, Ministry of Transport, and Ministry of Justice that heard […]

   The Massachusetts Port Authority voted Thursday to approve a business plan and budget for fiscal year 2015 of $623 million, a 5-percent increase, or $31 million more than the previous year.     “The plan will fund Massport’s commitment to key areas such as safety and security, supporting neighboring community programming, improving the customer experience […]

   Doyle noted the FMC “did not have jurisdiction over the Asia-Europe service route; therefore, the FMC did not issue a decision with respect to that route.”

   The U.S. Export-Import Bank voted this week to guarantee a $15 million loan extended by Rabobank International of Utrecht, the Netherlands, to Energyst to facilitate the export of Caterpillar power-generation equipment.    “Ex-Im Bank’s financing will support the export of important power-generation equipment made here in America and for potential use in Africa or […]

   The Port of Los Angeles will hold a public hearing on Thursday evening to receive public comments prior to considering the a request by APM Terminals to raise 14 existing container cranes and extend their reach booms at berths 401-404.    APM plans to raise the cranes 32 feet and extend the boom reach […]

   According to Drewry’s recently published 2014 Container Census report, high-cube, 40-foot containers, which it said will represent nearly 50 percent of the fleet, are cutting into the market for  traditional 40-foot containers.

   Asian shippers groups said they were pleased with the decision on Tuesday by China’s Ministry of Commerce to block formation of the P3 Network, a global vessel-sharing alliance set to commence on the major east-west shipping corridors.

   The U.S. International Trade Commission has started an investigation into the global rice trade.     The investigation, “Rice: Global Competitiveness of the U.S. Industry,” was requested by the House Ways and Means Committee. ITC will deliver the report to the committee by April 14, 2015.     Specifically, the ITC will examine factors of competition […]

   Hong Kong will permit the import of the full range of U.S. beef and beef products, consistent with access prior to the end of 2003. Previously, only deboned beef and certain bone-in beef from young cattle could be shipped to Hong Kong.

   President Barack Obama has designated Meredith M. Broadbent, a Republican from Virginia, as chairman of the U.S. International Trade Commission for the term June 17, 2014 to June 16, 2016.    Broadbent was nominated to the ITC by the president on Nov. 8, 2011. She was confirmed by the Senate on Aug. 2, 2012, […]

   The Chinese Ministry of Commerce will not approve the proposed P3 Network between Maersk Line, Mediterranean Shipping Co. and CMA CGM, scuttling the effort by the three carriers to move the vessel-sharing agreement forward.

   Cargo container numbers edged up 2.7 percent last month at the Port of Long Beach, making for the Southern California seaport’s busiest May since 2007. Los Angeles handled 689,141 TEU, an 8.2-percent increase over May 2013.

   “Bold standards” that cut new heavy truck fuel consumption by 40 percent compared to 2010 levels would deliver significant environmental and economic benefits, according to a new report commissioned by two environmental groups, the Environmental Defense Fund and Ceres.    President Obama has directed the National Highway Traffic Safety Administration and the U.S. Environmental […]

   “Financially troubled deep-sea ocean carriers are increasingly seeking salvation in the intra-Asia market due to higher than usual cargo growth and the availability of cheap vessel charter rates,” said Drewry, the London-based consulting and research company.    The most recent issue of Drewry’s Container Insight Weekly reported that it seems that regional services are […]

   HMM, Korea’s second largest carrier after Hanjin, will sell 6.81 million convertible preferred shares worth 57 billion won to Market Vantage Ltd. and make a similar sale to Market Vantage in the second half of the year.

The U.S. agriculture secretary will discuss the expansion of agricultural trade between the two continents, the importance of agriculture’s role in the T-TIP, and benefits the trade agreement will have for both the U.S and Europe.

Myles J. Ambrose, who served as a head of the U.S. Customs in the early 1970s and later specialized as a private practice customs and international trade attorney in Washington, died on June 3. He was 87.

   U.S. Customs and Border Protection has appointed David P. Higgerson to the director of its Laredo, Texas, field office.    He was formerly director of the agency’s El Paso, Texas, field office. Higgerson succeeds Noel Sanchez, acting director of the Laredo field office and former deputy commander of the South Texas Campaign.    As […]

   The Agriculture Transportation Coalition has urged the ILWU and employers to “take action to keep U.S. West Coast ports (and the cargo that is dependent upon them) viable.”

    The U.S. Maritime Administration is accepting applications until Sept. 30, 2016 for future marine highway projects.    “Eligible projects should establish new or enhance existing marine highway services that reduce land-side congestion and increase the use of domestic marine transportation,” said MarAd, but do not have to parallel land-side routes,    MarAd noted that’s […]

The Japanese shipping company bought a 30 percent stake in the Mexican logistics company CSI Group to expand its participation in Mexico’s burgeoning finished automobile trade in North America.

   The Los Angeles City Council on Wednesday unanimously confirmed Gene Seroka, head of commercial in the Americas region for American President Lines, as the new executive director of the Port of Los Angeles.

   There are plans to dredge the Yangtze and increase the navigation capacity of the Three Gorges Dam. People’s Daily reported China is also working on standardized ships for the Yangtze and developing energy-saving vessels.

   R.J. Corman Railroad Group of Nicholasville, Ky., was selected by the board of the Northwest Tennessee Regional Port Authority to operate the nation’s newest multimodal inland port at Cates Landing, Tenn.    “We see the Port of Cates Landing as having the potential for a wide range of prospective activities, where a modern berthing […]

   The current officer supply is 610,000, a shortfall of 19,000. This shortfall is forecast to rise to 21,700 by 2018 given that there will be a need for an additional 38,500 officers by that time, according to Drewry.

   Located in the Yinzhou Economic Development Zone, the plant will make various kinds of logistic equipment such as standard or special containers, CIMC said in a filing with the Hong Kong Stock Exchange. The factory will cost $482 million.

   The rate increase is substantial compared to current spot rates measured by the Shanghai Container Freight Index, which stood at $1,183 per TEU to North Europe and $1,761 per TEU to the Mediterranean.

   The U.S. Department of Commerce will continue its investigations on imports of the containers, with its preliminary countervailing duty determination due on or about July 17.