Shipping and Maritime

MSC Shipping

MSC USA’s CEO Says Constructive Collaboration is Key amid Supply Chain Overload

March 3, 2021 - MSC Mediterranean Shipping Company has highlighted the importance of continued collaboration with customers during 2021 to help ease the systemic supply chain overload triggered by the global pandemic, notably in the U.S. container market.

Fabio Santucci, President & CEO of MSC USA, stressed the point as he discussed how the landscape of the shipping industry has changed over the past year and how carriers have been impacted in the Journal of Commerce’s new podcast series “Beyond TPM”.

Fabio Santucci, President & CEO of MSC USA“Constant and effective communication and cooperation with partners, vendors and clients remains key. Understanding one another, planning together, and setting the right expectations goes a long way. This is one of the things that we have to continue doing throughout 2021 as well,” said Santucci.

Working Closely with Our Customers

The strong pick-up in demand for container carrying services in the second half of the year caused many operational issues and imbalances for the industry, with the vast majority of 2020 cargo being moved in just a matter of two quarters.

Commenting on MSC’s handling of the situation, Santucci underscored that ports, railroads, the trucking community and warehouses have all been awash with moving cargo and many companies have been doing a remarkable job under the circumstances.

“We’ve been using all the vessels available in our fleet and more. The charter market is very heated, it’s very difficult today to find a vessel and they are very expensive. This added a lot of costs but nonetheless ships were deployed.”

The same strategy has been utilized on the land side with equipment.

“All available containers and more have been repaired, put into service, moved around in the most efficient way possible,”Santucci explained.

At MSC, diversifying the portfolio of available ports has been key to alleviate some of the pressure from the busy points of Los Angeles / Long Beach and New York, rerouting some cargo through other gateways, adding terminals, while also diversifying inland with the railroads.

“The key was to find creative alternatives and do some problem solving along with our customers," he added.

The Road Ahead

Going forward, MSC remains optimistic of an eventual return to a more predictable market environment, Fabio added, stopping short of making a precise prediction amid the continued global uncertainty around the pandemic.

“It’s very difficult at this stage to predict when things will go back to normal because this is inevitably tied to getting COVID under control,” Santucci concluded.

SOURCE: MSC

 

Alexander Global Logistics - loading forest products

Alexander Global Logistics Transports 5000 Cubic Meters of Forest Products from North America to Germany

Jan. 29, 2021 - Alexander Global Logistics (AGL) in the first week of January 2021 has kept very busy with the firm’s North America operations receiving, storing, and loading 5000 cubic meters of forest products at the Port of Morehead City in North Carolina.

This has been the 4th vessel since June 2020 that AGL has operated this cargo, AGL said.

“Due to the oversized bundles, the S-Type vessel operated by Spliethoff was unable to use the side elevators, making it more challenging to load 3 hatches with its jib cranes,” AGL said in a press release. “During the 7pm to 11pm operation, which took 3 full days to complete, a total of 769 bundles were loaded onboard.

The product is currently on a direct call to Brake, Germany, and will be distributed to several parts of Europe with the help of AGL’s logistics team in Germany.

SOURCE: Alexander Global Logistics (AGL) 

 

Royal Wagenborg - EasyMax vessel

Royal Wagenborg’s New EasyMax Completes First Sea Trial on the North Sea

Jan. 27, 2021 - Royal Wagenborg announced that the second EasyMax completed her first sea trials on Jan. 26. Starting in the port of Delfzijl, various tests were completed on the North Sea.

According to Royal Wagenborg, with a load capacity of 14,200 tonnes and a hold volume of more than 625,000 cft, the EasyMax is the biggest ship ever built in the north of the Netherlands on the landward side of the dikes. With a length of 149.95m, a beam of 15.90m and a draught of 8.60m, the EasyMax has the maximum possible dimensions for the Royal Niestern Sander shipyard.

With two large rectangular holds — 13.50m wide, 12.10m high, and 47.36 and 64.38m long, respectively — the EasyMax excels in her class with her very high capacity for heavy or light cargo, timber and paper, and open-top loading. This allows for maximum deployment in Wagenborg’s operating area.

The EasyMax is suitable for worldwide commercial operations, including in such areas as the Baltic, the North Sea, the Mediterranean, the St Lawrence Seaway, the Panama Canal, and the Suez Canal.

The vessel is expected to be delivered to Royal Wagenborg and affiliated owners soon.

EasyMax sea trialNote: See video of sea trial of Royal Wagenborg's EasyMax: www.youtube.com/watch?v=kg8ic8SqHns&feature=youtu.be

SOURCE: Royal Wagenborg

 

vessel loading sawn timber

MPV Sector Benefits from Container Chaos

Originally published by Heavy Lift & Project Forwarding International

Delays, lack of space and a surge in tariffs is plaguing the liner shipping market. While the current situation is causing headaches for shippers and forwarders alike, there are opportunities for the breakbulk and multipurpose shipping sector.

Jan. 26, 2021 - In calling for the Competition Directorate of the European Commission to intervene, the European Freight Forwarders Association (CLECAT) and the European Shippers’ Council (ESC) said that practices adopted by the liner shipping sector is adversely impacting European companies, from retail, fashion, automotive, cosmetics to IT businesses.

“The violation of existing contracts, the establishment of unreasonable conditions concerning the acceptance of bookings and the unilateral setting of rates far in excess of those agreed in contracts,” were some of the practices currently being adopted by liner carriers, according to the associations.

CLECAT commented: “Carriers have been reserving for themselves the ability to change rates whenever they see fit notwithstanding the specific rates and charges agreed. Carriers are continuing to top their rates with surcharges, general rate increases, etc. Similarly, shippers and forwarders are being confronted with refused bookings and rolled cargo if carriers deem it more profitable to accept higher rated cargo for a particular sailing. Unacceptable practices also include imposing an extra fee as a price for accepting cargo at a new tariff charge, simply refusing to accept bookings at all for customers, forcing a customer with contract rates to move it to spot rates at a much higher price.”

The disruption in the supply chain because of the unprecedented number of blank sailings (up to 30 percent on some trades), combined with the lack of reliability (with only 50 percent of ships on time over the last year), has led to the current shortage of empty containers. Carriers are trying to ship containers back to China as fast as possible, simply because there is a need and profits are extremely attractive.

This, according to CLECAT, has a domino effect. “As a consequence, forwarders and shippers are now also confronted with all sorts of new surcharges such as ‘equipment imbalance surcharges’, which carriers are imposing,” it said.

Belgium-headquartered logistics provider Ahlers has also raised awareness to the “madness” in container freight rates. “Today we face an unprecedented high volume demand out of Asia to the USA and Europe in the container market. The freight rate ex-Far East to the USA last year has nearly tripled with serious equipment shortage. Though some shippers accused the carriers of this situation due to the blank sailings last year, carriers claim that unusual demand is the reason.

“Since many countries re-opened, following strict lockdown in 2020, the demand for consumer goods went through the roof,” said the company.

One knock-on effect, however, is new opportunities for breakbulk, multipurpose and ro-ro carriers.

Ahlers explained: “Aside from some bigger multipurpose, container-fitted vessels being chartered for carrying containers, there is an increase in cargo volumes due to more containerised cargo coming back to the breakbulk market, in addition to the traditional machinery and special equipment.”

For example, Ahlers has witnessed shipments of sawn timber, which for several decades now has typically been shipped out of South East Asia in containers, requesting breakbulk vessels due to the high container rates and equipment shortage.

“Freight forwarders are forced to look for unconventional new ways – such as moving cargo to tri-modal container terminals – desperately trying to find different shortsea shipment solutions with smaller coaster vessels and trucking the cargo to its destination,” said Ahlers.

Read the complete article on Heavy Lift & Project Forwarding International's website

SOURCE: Heavy Lift & Project Forwarding International

 

seafarer aboard cargo ship

MSC Backs Industry Campaign for Seafarers Amid Global Crew Change Crisis

Jan. 26, 2021 - As the latest measure to alleviate hardship on seafarers, MSC has joined forces with peers across the maritime value chain in a worldwide call to action to end the unprecedented crew change crisis caused by COVID-19.

Hundreds of thousands of seafarers are stuck at sea since crew changes were banned by many governments to help curb the spread of COVID-19. This has led to serious consequences for seafarers’ physical and mental well-being, as well as risking serious disruptions to global trade.

In order to accelerate action to solve the issue that has spiralled into a humanitarian crisis at sea, MSC has signed the Neptune Declaration on Seafarer Wellbeing and Crew Change. The declaration defines four main actions to facilitate crew changes and keep global supply chains functioning:

  • Recognise seafarers as key workers and give them priority access to COVID-19 vaccines
  • Establish and implement gold standard health protocols based on existing best practice
  • Increase collaboration between ship operators and charterers to facilitate crew changes
  • Ensure air connectivity between key maritime hubs for seafarers

"As we move in to the second year of the COVID-19 pandemic, the health and well-being of our seafarers is at the top of our minds. The urgent matter of facilitating seafarer repatriations and crew changes is a vital one that needs immediate attention,” said Soren Toft, CEO MSC.

“On top of MSC's efforts last year to bring the critical issue of crew changes to the attention of governments, we believe it is more important than ever to appreciate the valuable contribution that seafarers bring to the global economy and to ensure that these people are recognised as key workers. Seafarers and shipping have kept the world moving amid COVID-19 lockdowns and it is imperative that governments give full support to alleviate the crewing crisis and keep trade flowing unhindered," Toft continued.

MSC crewing offices have been in close contact with seafarers and their families to provide support since the issue began. In addition to working collectively through industry associations to improve the situation for the seafarers, MSC has also engaged directly with intergovernmental bodies and officials in certain countries to address specific situations and as a result some have agreed for allowing crew change in their countries and have approved a standard of protocols to be followed. MSC stands by its seafarers and continues to work hard to ensure they are given the support and good treatment that they deserve.

Despite all these significant efforts by shipowners, international organisations and some governments, the situation is only getting worse as new travel bans are implemented. To seek a solution to this humanitarian crisis, it is crucial that national governments recognise seafarers as keyworkers, strict health protocols are followed onboard and onshore, and the air links between crew change hubs and major seafaring nations are restored.

Learn more about the Neptune Declaration and see the full list of undersigning companies and organizations here.

SOURCE: MSC Mediterranean Shipping Company

 
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