Maersk to Raise HSFO Bunker Fuel Consumption to 25%
Danish shipping group A.P. Moller-Maersk plans to raise the proportion of high sulphur fuel oil it consumes from 10% to 25% by the year-end, CEO Soren Skou says.The world's largest container shipping firm consumed a total of around 11.80 million tonnes of shipping fuel last year.Maersk's current shipping fuel use comprises of around 10% ultra low sulphur (0.1%) fuel oil, 10% high sulphur fuel oil and the remaining 80% is low sulphur fuel oil. (Reporting Stine Jacobsen and Shadia Nasralla. Writing by Ahmad Ghaddar; editing by David Evans)
Global shipping Hit by Coronavirus
Global shipping holds its breath as the coronavirus continues to spread and generates massive economic and financial uncertainty.Two weeks ago, BIMCO argued that – from an economic perspective - when China sneezes, we all catch the flu. Since the SARS outbreak in 2003, the global economy has become much more interlinked with China and the Chinese economy has grown to become the second largest in the world.While hard facts and reliable data are in high demand, they are in short supply…
Coronavirus to Hit Earnings: Maersk
Global integrated container logistics company A.P. Moller - Maersk posted improved earnings and free cash flow for 2019, despite weaker market conditions and global container growth of only 1.4 percent.However, the Danish business conglomerate said that the coronavirus (COVID-19) would hit its earnings this year as the world's largest container shipping company warned of a "very weak" start to the year.The company expects an EBITDA of around USD 5.5bn, before restructuring and integration costs.
Maersk to Buy U.S. Warehousing and Distribution Firm
Danish shipping group A.P. Moller-Maersk said on Wednesday it had agreed to buy U.S. warehousing and distribution firm Performance Team as part of plans to deliver more customized logistics solutions.Maersk said the the value of the deal is $545 million, including lease liabilities of around $225 million.The world's largest container shipping firm aims to boost its earnings from its inland logistics operations, or non-ocean business. In 2018, the ocean transport business accounted…
Hapag-Lloyd Raises 2019 Operating Profit by 80%
German container shipping line Hapag-Lloyd raised its 2019 operating profit by 80% to 811 million euros ($875.47 million) as it earned higher freight rates and cut costs, the Hamburg-based firm reported on Wednesday."The main drivers of the positive business developments have been improved freight rates as well as rigorous cost and revenue management," said the company, the world's fifth biggest operator, in a statement on preliminary results.Operating earnings before interest and taxes (EBIT) had previously been pegged in a target corridor between 0.5 billion and 0.9 billion euros.Earnings be
Hapag-Lloyd: Asia Business 'Overall Stable' Amid Virus Outbreak
German container shipping line Hapag-Lloyd said on Tuesday its business in Asia was "overall stable," although the coronavirus outbreak had extended the traditionally slack period around China's Lunar New Year holiday.China's efforts to control the virus had extended the normal factory shutdowns for the New Year festivities to anywhere between Feb. 8 and Feb. 14, depending on the region, a spokesman for the world's fifth largest container carrier told Reuters.However, Hapag-Lloyd's fleet was operating largely as normal…
4 Major Lines Jointly Launches EMA Services
Chinese state-owned shipping company COSCO Shipping Lines, Hong Kong container shipping company Orient Overseas Container Line (OOCL), Japanese/Singapore container shipping company Ocean Network Express (ONE) and Taiwanese ocean shipping company Yang Ming Marine Transport Corporation are to launch a new weekly Transatlantic service, East Mediterranean - America Service (EMA).The first commencing voyage is scheduled to operate on April, 2020, subject to Federal Maritime Commission (FMC) filing.The EMA service, jointly operated by the four lines, will consist of six Panamax vessels.
Coronavirus Disrupts Global Container Shipping
China's fast-spreading coronavirus is throwing the global container shipping trade out of sync, with lines re-routing cargoes and reducing calls to Chinese ports, setting the scene for months of delivery delays ahead, industry sources said.The spread of the deadly virus has shut down cities and factories in China and disrupted global air travel.China's decision to extend its Lunar New Year holiday period until Feb. 10 has compounded logistical complications, despite its ports staying open.
Vinalines to Join Global Shipping Alliances
The Vietnam National Shipping Lines Corporation (Vinalines) has set sights on joining the global shipping alliances (GSA).As part of this move, Vinalines will devise a number of measures to further promote growth of its three key sectors of seaport, shipping industry and maritime services.According to Acting General Director of Vinalines Nguyen Canh Tinh, the firm will focus resources on these three decisive fields, which are expected to create breakthrough development for the…
DCSA Sets Track and Trace Standards
The Digital Container Shipping Association (DCSA), a non-profit group of nine major ocean freight carriers, published track and trace standards in an effort to unify information sharing and further digitalization goals."This is the first of many initiatives to be put forth by DCSA to transform inefficient practices and accelerate digitization through a unified industry effort," said the Container line group.Carriers, shippers and third parties can use track and trace standards to "enable cross-carrier shipment tracking" and can download the standards from the DCSA website…
Hamburg Süd’s Chief Commercial Officer to retire
German container shipping company Hamburg Süd said its Chief Commercial Officer (CCO) Frank Smet will retire at the end of March after roughly 27 years with the company.Smet, who has been working in the shipping industry for over 40 years – including in Brazil, Chile, Australia and Hong Kong – has been a member of Hamburg Süd’s Management Board since 2012. He was initially responsible for Network, Operations and Logistics before assuming responsibility for Sales and Customer Service in 2017.In the future, Hamburg Süd CEO Dr. Arnt Vespermann will also be responsible for the customer relations.
New IMO Rules Overshadow Hapag-Lloyd's Profit Outlook - CEO
Tougher rules on sulphur emissions from ships set by the International Maritime Organisation (IMO) from January burden the profit outlook for Germany's container shipping line Hapag-Lloyd this year after a good 2019, its chief executive said."This will make it difficult for us to achieve a better (2020) result," Rolf Habben Jansen told reporters in Hamburg in comments on the ban on ships using a sulphur content above 0.5% on risk of fines, which is shaking up oil and shipping.But with above-market growth rates in transport volumes in 2019…
HMD Confirms Evergreen Boxship Order
South Korean shipbuilder Hyundai Mipo Dockyard (HMD), a unit of Hyundai Heavy Industries (HHI), has confirmed the KRW 110 billion ($100m) newbuilding order for four units of 1,800 TEU container carriers from Taiwanese shipping line Evergreen Marine Corporation.The world's No. 1 shipbuilder specializing in medium-sized ships such as product/chemical tankers, car carriers, LPG & LNG carriers, and asphalt carriers, said that The vessels, each of which will have a length of 172 meters…
Xeneta's Year Ends High, Concerns Remain
Xeneta has ended 2019 with a second month of increases in long-term contracted ocean freight rates across key trading routes.According to the latest XSI Public Indices report from Xeneta global rates climbed by 0.9% in December (adding to a 0.9% rise in November). However, despite the welcome upswing, after well over a year of steady decline (with the exception of a spike in May), market confusion concerning IMO 2020 sulphur surcharges still remain.Moving in the right directionXeneta’s XSI Public Indices report utilizes over 160 million data points…
CMA CGM to Raise $2bn Via Selling Terminal, Ships
French container shipping giant CMA CGM plans to sell selected port terminals, ships and other assets to raise roughly $2 billion to finance its acquisition of CEVA Logistics, according to Reuters.Chinese state-owned conglomerate China Merchants Port has entered into a Memorandum of Agreement (MOA) with CMA CGM to acquire interests in a portfolio of 10 terminals from the French container line and its affiliates via Terminal Link for a total consideration of $955 million.As part of the deal…
CMA CGM and Total to Develop LNG Ship Refueling in Marseille
Container shipping firm CMA CGM will use the French Mediterranean port of Marseille for refueling some of its planned gas-powered vessels, backed by a supply partnership with energy group Total.Total will supply liquefied natural gas (LNG) and a refueling barge to enable CMA CGM to refuel LNG-powered vessels at the Marseille-Fos hub starting in 2021, the companies said in a joint statement on Wednesday.The initiative covers five vessels with a capacity of 15,000 twenty-foot equivalent…
BIMCO: Supply & Demand Trending Off-Balance
One of the most worrying trends that has developed recently - which will affect shipping demand in the years to come - is the falling trade-to-GDP ratio. The falling ratio can be explained by slowing globaliztation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.The trade war is the clearest example of these extra barriers to trade…
MSC Appoints Toft as CEO of Cargo Business
Swiss headquartered container shipping group MSC has appointed Soren Toft as the new chief executive officer of its cargo business from rival company A.P. Moller Maersk, an MSC spokesman said on Monday.A start date for Toft has yet to be determined, the spokesman said.Maersk, the world's biggest container line, said last week that Toft, who had served as its head of operations, had decided to leave the company to pursue outside opportunities.MSC is the world's second-largest container shipping line and is seen by industry watchers as a challenger to Maersk's position.
CMA CGM: Terminal Deal with China Merchants Complete
CMA CGM said on Friday it had finalized an agreement with China Merchants Port Holdings Co.
ZIM Back into Black
Israeli international cargo shipping company ZIM Integrated Shipping Services continued to record improvements and to expand its global network to its customers confronting challenging business environment.ZIM has reported a net profit of USD 5 million for the third quarter of 2019, after returning to black in the second quarter of the year. (Compared: Net loss of $6.6 million in Q3 2018).Eli Glickman, ZIM President & CEO, said: “In spite of the challenging market conditions, ZIM continued to record improved results in Q3, as it did throughout 2019.
GE Hires Maersk's CFO as Finance Chief
General Electric Co on Monday named finance head at shipper AP Moller-Maersk as its new chief financial officer in the latest top-level change aimed at turning around the U.S.
CMA CGM to Raise $2 bln to Fund CEVA Deal
Shipping group CMA CGM said it planned to raise $2 billion to help finance its takeover of CEVA Logistics, with half the cash coming from selling port assets to its joint venture with China Merchants Port Holdings Co.France-based CMA CGM, the world's fourth-largest container shipping company, bought CEVA this year to expand in land logistics, valuing the firm at about $1.7 billion.CMA CGM said it was pushing back some of Switzerland-based CEVA's financial targets by two or three years, partly because of a slowdown in some industries, such as car manufacturing.Under an agreement with China Merc
MSC Re-Routes Cargos Due to French Strikes
Swiss headquartered container shipping company MSC said on Friday it was implementing contingency plans to re-route container ships away from French ports when necessary due to strikes in the country."MSC Mediterranean Shipping Company is closely monitoring the situation in France where industrial action by labour unions is impacting maritime ports and overland transportation networks around the country," an MSC spokesman said.MSC said it would resume normal services to France as soon as possible. (Reporting by Jonathan Saul and Gus Trompiz; Writing by Maya Nikolaeva; Editing by David Clarke)
Maersk, Syngenta in New 4PL Contract
Extending their partnership with a contract for fourth-party logistics (4PL), Maersk and Syngenta highlight their joint commitment to responsible logistics based on continuous supply chain optimization and innovation.As a player in the agrochemical industry, Syngenta continuously looks for ways to optimise its supply chains to deliver on its ambition of producing food efficiently and responsibly and thus increasing productivity without harming the planet. A long-term cooperation with Maersk…
MSC Uses 30% Biofuel Bunker Blend
Swiss-Italian international shipping line MSC Mediterranean Shipping Company (MSC) announced that its vessels bunkering in Rotterdam, the Netherlands, will now bunker biofuel blends on a routine basis - the first major shipping line to do so.Following successful trials with biofuel blends earlier this year, MSC has decided to continue bunkering responsibly sourced biofuel blends on a routine basis.The trials were completed with a minimal 10% blend fuel and following further trials…
ONE Joins NYSHEX Expanding Carrier Network
Ocean Network Express (ONE) has joins a group of innovative carriers who use the New York Shipping Exchange (NYSHEX) to offer their customers the ability to enter digital and mutually enforceable contracts.With seven of the leading global ocean carriers on NYSHEX, over 60% of global capacity is represented. The member carriers also represent all three container shipping alliances: 2M, Ocean Alliance and THE Alliance, providing NYSHEX shipper members a broad array of service options to choose from.“NYSHEX enables us to offer our customers an additional platform to contract with us…