Japanese Ocean Carriers Form Container Shipping Joint Venture
Summary: K-Line (Kawasaki Kisen Kaisha), Mitsui O.S.K. Lines and NYK (Nippon Kabushiki Kaisha) announced their joint venture, Ocean Network Express. According to the press release, through the joint venture, the three companies’ container shipping businesses (including worldwide terminal operation businesses, excluding those in Japan) will be integrated.
The holding company is expected to remain in Japan with the operating company incorporated in Singapore. Regional headquarters will be located in Singapore, Hong Kong, UK (London), US (Richmond, VA) and Brazil (Sao Paulo). The service commencement date for Ocean Network Express is April 1, 2018. For additional information, a new website has been launched.
LogisticsTI Take: Based on April 2017 data, Ocean Network Express will have a 7% global share when it begins operation. Will it be enough? The container divisions of each of these companies have suffered financial losses as well as market share individually thanks to a volatile ocean freight market. Will the joint venture be able to grow in such an environment? A Lot of questions and there’s no telling what the ocean freight market will look like in 2018 much less 3 months from now.
Kale Logistics Announces Formal Go Live of India’s First Container Digital Exchange – CODEX at V.O.C. Port Tuticorin
Summary: Kale Logistics Solutions, developer of India’s first container digital exchange – CODEX – announced the formal Go Live of the platform at the end of a 3 month pilot run and onboarding of all stakeholders. The CODEX is designed to automate the container movement at Tuticorin Port and reduce the container dwell times. It is an EDI based electronic platform through which communication, information exchange and electronic processing of key business transactions can be facilitated between container stakeholders and related logistics value chain. CODEX also has a mobile app which facilitates real time tracking of containers and directly interfaces with CODEX.
LogisticsTI Take: India’s ports are notorious for their congestion. Automation should bring much needed efficiencies to ease the flow of traffic through the Tuticorin port. Here’s hoping more of India’s ports follow through with similar projects that will ease congestion.
Summary: Shippers and freight forwarders are now able to submit the verified gross mass (VGM) of their Port of Ningbo-Zhoushan export containers through Ningbo E-port’s platform at no additional charge. In addition, they gain visibility to a dashboard with VGM submission deadlines and status for 30 ocean carriers and customs clearance to help ensure timely exports.
Shippers currently make booking requests submit shipping instructions and track cargo through Ningbo E-port’s portal, which is supported by CargoSmart’s EDI service.
LogisticsTI Take: Online portals such as this are allowing for more transparency into the shipping process as well as providing data that can be utilized to determine strategies. Lack of SOLAS guidance has resulted in confusion and technology companies such as CargoSmart have stepped up to provide solutions.
Summary: The construction contract was awarded to Del Valle Group, S.P. of Toa Baja, Puerto Rico and includes expanding capacity at its Isla Grande port terminal in San Juan for handling refrigerated containers, paving 15 acres to accommodate container stacking, installing a new electrical substation to provide power for three new ship-to-shore gantry cranes, constructing a new seven-lane terminal exit gate and installing hardware required for a new terminal operating software system.
The contract is the third awarded that is associated with Crowley’s investment in its Isla Grande terminal in preparation for the arrival next year of the first of Crowley’s two new liquefied natural gas (LNG)-powered, Commitment Class ships.
LogisticsTI Take: Crowley has served the Puerto Rico market since 1954 and this latest investment serves as a commitment to the island.
Summary: Matson Logistics Supply Chain Services’ latest LCL offering is based on the company’s China-Long Beach Express (CLX) service and with partner JAD International for coast-to-coast transport. The service includes:
- LCL freight receipt origin CFS locations in Shanghai, Dalian, Guagzhou, Hong Kong, Ningbo, Qindgao, Shenzhen, Tianjin and Xiamen.
- Weekly Matson sailings from Shanghai via Long Beach to NY/NJ in 14 days
- Service options include origin pick-up and expedited door delivery at destination.
LogisticsTI Take: According to Matson, this is an alternative to air freight by combining ocean freight and road transport.
SC Ports Authority Announces Plans for Second Inland Port Facility
Summary: Due to the success of its Inland Port Greer and growing demand for efficient international container movements between the Port of Charleston and markets in South and North Carolina, the Port Authority announced plans to pursue a second inland port facility.
It is working with CSX to determine the viability of Dillon SC as the location of the next inland port and hope to finalize plans by the end of the year.
LogisticsTI Take: About 23% of containers imported or exported through Charleston in 2015 moved by rail with almost 260,000 international intermodal rail lifts handled. Intermodal volume has increased 166% since 2011 driving demand for additional inland port facilities. The potential Dillon location will be convenient to I-95 which stretches north/south along the US East coast seaboard and is a major trucking route.
Summary: A memorandum of understanding between the four container shipping lines to form a new alliance was signed to offer competitive products and comprehensive service networks covering the Asia-Europe, Asia-Mediterranean, Asia-Red Sea, Asia-Middle East, Trans-Pacific, Asia-North America East Coast and Trans-Atlantic trades.
“The Alliance will bring service reliability and the most efficient integration of the latest vessels in a fleet of over 350 containerships. Initially the deployment will cover more than 40 services globally mostly connected with Asia, including about 20 services each in the US and Europe related trades.”
Pending regulatory approvals, the Alliance is expected to begin operations in April 2017 with the initial period for five years.
LogisticsTI Take: This latest Alliance could reign in capacity and thus increase rates but 2017 is another year, will it be too late for some?
Summary: The terminal was made possible by a $16.7 million federal transportation TIGER grant and has a capacity of moving 160,000 TEUs per year by rail. The railyard features four tracks with 1,550 feet of working pad for each track in addition to a runaround track. “CN has and is expanding our inland reach….CN is proud to be the primary intermodal solution for the Port of New Orleans.” Said the Senior Vice President for the Southern Region for CN Railroad.
“New Orleans is a major player for national and international cargo operations and now we have the assets and capabilities needed to remain competitive at the highest level in the global market,” said Chairman of the Board of the New Orleans Public Belt Railroad, the short-line railroad that provides the Port’s connectivity to its six Class I railroad partners.
LogisticsTITake: Canadian Class I railroad, CN, expanded its reach from Canada to the US’ Gulf Coast linking the Port of New Orleans with Canadian ports as well as with Memphis and Chicago. The Port of New Orleans is further benefiting from growing volume. For the 12 month period ending September 2015, it surpassed half million TEUs for the first time, up 13.6% from the previous year.
Summary: Beginning the end of May, 2016, CMA CGM Group will deploy six 18,000 TEU vessels between Asia and the US West Coast. The ships will join the Pearl River Express Service. According to CMA CGM, the ships are equipped with the latest environmental technology and will reduce the company’s carbon footprint.
LogisticsTI Take: Bigger ships equals more cargo – will the US ports be ready? How about trucking and rail providers and how will this new service affect peak season?
Summary: AGRO Merchants Group will begin construction on the first phase of a 300,000 square foot temperature-controlled facility at the Port of Houston Authority’s Bayport Container Terminal. It will handle storage, value-added services and import/export of chilled and frozen seafood, meats and produce.
LogisticsTI Take: The Port of Houston reported record cargo in 2015 and due to its location, it has become an alternative port for the transport of temperature-controlled goods from Latin America and elsewhere.