Volume 2, Issue 35, July 24 2017

This week’s articles:

  • Shanghai Port Congestions
  • Chittagong authorities working on relieving major congestion
  • LA- LB to Increase TMF
  • APL reports Highest Co2 Emission Reduction
  • Slowdown of Gate Operations At JNP
  • Operations Disruption in State of Gujarat

NOTABLE HOLIDAYS

26th – Teej (India)
28th – National Day (Peru), H.M King’s Birthday (Thailand)
29th – Independence Day Holiday(Peru)


Shanghai Port Congestions:

Shanghai Port continues to experience congestion due to weather, service and terminal changes due to shifts in ocean carrier alliances. Shanghai is still feeling the aftereffect of the major Maersk cyber-attack that occurred last month. Please note that operations may be delayed as a result of this congestion.

Chittagong Authorities Working on Relieving Major Congestion

Port authority have been working on solutions to lighten the congestion in Bangladesh’s busiest port: Chittagong. The congestion has caused multiple problems in the operations of shipments – one of them being that box ships stay “average of 12 days” to call the port since May. This congestion has been a result of several conditions, such as bad weather, equipment shortages, and Ramadan. The effects of this problem have grown as the port experiences growth in cargo and container handling. The average stay time for a container vessel is supposed to be no more than two days under normal circumstances. The container vessels are experiencing a delay of “10-11 days in receiving berthing permission.” This increase in stay-time has caused shipping companies to raise freight charges to recoup the losses, which businessmen conclude that might result in financial losses.
Larger ships will now be allowed to call at night, “more space will be allocated for containers at nearby yards.” Port officials are also working on getting customs to clear “three-tiered gantry cranes” so that they can be used at the port. These solutions are the start of alleviating the increasing problem of this major congestion. (Source 1, Source 2)

LA- LB to Increase TMF 

The West Coast MTO Agreement (WCMTOA) has announced that on Aug. 1st, the Traffic Mitigation Fee(TMF) at the LA and LB port will increase by 2.3%. Beginning Aug. 1st, the TMF will be $72.09 per TEU (Twenty-Foot Equivalent Unit) and $144.18 per FEU (Forty-Foot Equivalent Unit). The fee is only charged for containers that are moved between 3:00 am to 6:00 p, pm weekdays. (Source)

APL Reports Highest Co2 Emission Reduction

American President Lines (APL) has announced their seventh consecutive year of environmental improvements, reporting their highest recorded carbon dioxide emission reduction of 48% in 2016. This marks a 3% increase from the 2015 report, exemplifying their efforts of conserving the environment. Carbon dioxide emission has been a major contributor to today’s global environmental problems. The emission of this gas is part of the phenomenon called the “Greenhouse effect” in where the excessive emission of the earth’s gases warms the Earth’s surface. The Greenhouse effect has been one of the main contributors to the record global warming temperatures through the years. Moving forward, APL aims to reduce carbon dioxide emissions per container by 30% between 2015 to 2025, a target set by the CMA CGM Group. (Source)

Slowdown of Gate Operations At JNP

Please be advised that gate operations at Jawaharlal Nehru Port(JNP) (Nhava Seva) will be closed as of July 24th. This may affect deliveries and movement if service is not resumed. To avoid any delay or shutout, please plan EXIM schedule in advance to plan accordingly. If you have any questions, please contact your local Worldwide Logistics representative.


Operations Disruption in State of Gujarat 

Heavy rains in North Gujarat have caused disruptions road and rail operations. The railway stretch near Maliya Miyana Station is now flooded, causing intermodal operation to be affected. The Mundra Morbi highway has also been closed as heavy rain are expected in the next 48 hours. Please see table below for alternatives to these affected vessels:

If you have any questions, please feel free to contact your local Worldwide Logistics Representative.


Previous Newsletter

Volume 2, Issue 34, July 17 2017

This week’s articles:

  • COSCO to Buy OOCL
  • Record Summer Projected for Imports
  • Shipment Delays Due to Fires in British Columbia
  • Idle Vessel Fleet Shrinks
  • Long Beach Records Second-Best June
  • Air Freight Surges at London Heathrow

NOTABLE HOLIDAYS

17th –Marine Day (Japan)
18th – Constitution day(Uruguay)
20th – Declaration of Independence (Colombia)
21st – Independence Day(Belgium)

COSCO to Buy OOCL

Last week, COSCO Shipping Holdings offered to buy Orient Overseas Container Line (OOCL) for $6.3 billion, marking a new chapter in the industry’s ongoing carrier consolidation. Pending regulatory approval, the entity would have more than 400 vessels with capacity exceeding 2.9 million TEUs (Twenty-Foot Equivalent Units). Click here to read more.

Record Summer Projected for Imports

According to the latest Global Port Tracker report, container imports at major U.S. retail gateways are expected to reach record highs this summer. Import volumes at ports measured by the Global Port Tracker are expected to expand 5.1 percent in July and 2.2 percent in August. Click here to read more.

Shipment Delays Due to Fires in British Columbia

The Canadian province of British Columbia is currently under a state of emergency due to wildfires. Please note that shipments transiting western Canada could be delayed because of the fires. Click here to read more

Idle Vessel Fleet Shrinks

According to Drewry Shipping Consultants, the idle containership fleet has decreased from 1.7 TEUs (Twenty-Foot Equivalent Units) in November of 2016 to 474,000 TEUs in June of 2017. Drewry attributed the Hanjin Shipping fallout as a key reason for the decline. Many units that were idled in the aftermath of the Hanjin bankruptcy have since been scrapped or picked up by new owners and operators.

Long Beach Records Second-Best June

During the month of June, the Port of Long Beach handled 658,727 TEUs (Twenty-Foot Equivalent Units), making it the port’s second-best June in history. For the quarter, the port stated that total cargo throughput increased more than eight percent.

Air Freight Surges at London Heathrow

Air cargo traffic at London Heathrow soared 13.4 percent year-over-year during the month of June. As Europe’s fourth-largest air cargo hub, it handled 142,349 tons. North America remained as Heathrow’s top market with volumes up 15.8 percent compared to 2016. Click here to read more.

WORLDWIDE LOGISTICS LTD RECEIVES PRESIDENTIAL AWARD FOR EXPORT SERVICE

Wilbur Ross, U.S. Secretary of Commerce (far left), Michel Wouters, WWL Account Executive (left center), Richard Lazaroff, Chief Operating Officer (right center), Kenneth E. Hyatt, Acting Under Secretary for International Trade (far right)
PARAMUS — U.S. Secretary of Commerce Wilbur Ross today presented Worldwide Logistics Ltd with the President’s “E” Award for Export Service at a ceremony in Washington, D.C., May 22. The President’s “E” Award is the highest recognition any U.S. entity can receive for making a significant contribution to the expansion of U.S. exports.
Richard Lazaroff, Chief Operating Officer, and Michel Wouters, Sales Executive, from Worldwide Logistics accepted the award on the company’s behalf.“Worldwide Logistics Ltd was the only logistics provider to receive the award this year. It was quite a day and honor for our company,” said Mr. Lazaroff. “Every day we see the growth of our clients’ businesses, due in large part to exporting.  This growth has enabled our clients to add jobs and support their local communities as they expand their bottom line.”

In total, Secretary Ross honored 32 U.S. companies and organizations from across the country with the President’s “E” Award for their role in strengthening the U.S. economy by sharing American ingenuity outside of our borders.

U.S. companies are nominated for the “E” Awards through the U.S. Commercial Service, part of the Department’s International Trade Administration. With offices across the United States and in embassies and consulates around the world, The International Trade Administration lends its expertise at every stage of the exporting process by promoting and facilitating exports and investment into the United States; administering Anti-Dumping and Countervailing Duties orders; and removing, reducing, or preventing foreign trade barriers.

U.S. exports totaled $2.21 trillion in 2016, accounting for nearly 12 percent of U.S. gross domestic product. Exports supported an estimated 11.5 million jobs nationwide in 2015, according to the most recent statistics from the International Trade Administration.

About the “E” Awards
In 1961, President Kennedy signed an executive order reviving the World War II “E” symbol of excellence to honor and provide recognition to America’s exporters. Criteria for the award is based on four years of successive export growth and case studies which demonstrate valuable support to exporters resulting in increased exports for the company’s clients.For more information about the “E” Awards and the benefits of exporting, visit www.export.gov.

NEW CANADIAN eMANIFEST CUSTOMS REQUIREMENT FOR IMPORT CARGO

The Canadian eManifest regulation, the 3rd phase of the Advance Commercial Information (ACI) initiative, has come into effect beginning November 7th adding additional cargo security requirements for Canadian importers.

When fully implemented, eManifest will require carriers, freight forwarders and importers, in all modes of transportation, to electronically transmit pre-arrival information to the CBSA within given time frames. The Canadian eManifest contains many overlapping elements with the current ACI filing but expands upon many fields not previously required in reporting.

Canadian Border Service advised 3 methods of to transmit house bill and close messages: EDI, service provider and eManifest Portal. The eManifest portal is a cloud-based, free of charge, secure transmission option available on the CBSA website. Set-up for a direct EDI link requires several months of preparation and approval from the Technical Commercial Client Unit (TCCU). Third-party service providers have already been tested by TCCU and these companies appear on the CBSA website.

Freight forwarders are also required to transmit a house bill ‘close’ message once all house bills within a consolidated shipment have been sent to the CBSA. The Close message is used to initiate the link between the parent and child documents in CBSA’s system. Marine shipments must have house bill and supplementary cargo data submitted electronically 24-hours prior to loading at last foreign port while air shipments mist have the data filed 4 hours prior to arrival or at the time of departure. Rail will require eManifest data 2 hours prior to arrival in Canada and cargo moving over the highway will require 1 hour prior submission.

Up until January 10th, 2017 the CBSA will provide freight forwarders with a period of transition during which penalties for non-compliance will not be issued and the CBSA will work closely with freight forwarders on corrective measures. From January 11, 2017, to July 11, 2017, freight forwarders deemed to be noncompliant with eManifest requirements may be issued zero-rated penalties (non-monetary) under the CBSA’s Administrative Monetary Penalty System (AMPS). Beginning July 12, 2017, freight forwarders deemed to be non-compliant with eManifest requirements may be issued monetary AMPS penalties.

In addition to any monetary penalties assessed by AMPS, failure to comply with eManifest requirements will result in cargo halted and examined at the first point of arrival in Canada as opposed to other CBSA examination that can be conducted at an inland CBSA office or approved inland destination.

For more information about eManifest compliance and how it will affect your Canada-bound cargo, please contact your local Worldwide Logistics representative.

Verification of Gross Mass of a Container Carrying Cargo

Verification of Gross Mass of a Container Carrying Cargo by METHOD 1

 

1.  Pack and Seal the Container

2.  Weigh the Container
Weigh the packed container using calibrated and certified equipment

3.  Shipper’s Declaration
For the verified gross mass of a packed container obtained by the above-mentioned method, a declaration shall be made in the shipping documents. Such a declaration should cover the below content:

“Shipper’s declaration: the gross mass of packed container declared in the shipping document was obtained in accordance with Method 1 stipulated in SOLAS Chapter VI Regulation 2 and followed by the signature of the shipper.

 

Verification of Gross Mass of a Container Carrying Cargo by METHOD 2

 

1.  Acquiring the Masses of the Cargoes to be Loaded into the Container
The types of cargoes carried by containers are extensive. Generally they can be divided into two main categories as shown below.

 

1.1   Homogenous Cargoes
Basically the shapes and masses of individual homogenous items are identical. For instance, the mass of every packed television set is 20 kg. If the shipper intends to load 100 numbers of television sets to a container, the gross mass of cargoes should be 20 kg x 100 numbers, which gives 2,000 kg.

The shipper can rely on the mass information provided by the manufacturer or determine by weighing to obtain the masses of individual items.

1.2   Irregular Cargoes
The common irregular cargoes include bulk commodities and liquids. Weighing the irregular cargoes by adopting Method 2 is almost the same as the practice for homogenous cargoes. However the masses of individual items would not be identical due to the irregular shape of those cargoes. The shipper shall therefore have to weigh every item or make use of the filling machine with mass measuring device. It is more appropriate to use Method 1 for such kind of cargoes (i.e. weighing the packed container by authorized weighing scale).

 

2.  Acquiring the Masses of Packaging
All the masses of packaging can be determined by weighing or can be relied on the information provided by the manufacturer for the required calculation.

 

3.  Acquiring the Masses of Securing Materials
All the masses of the securing materials such as pallets and dunnage, etc. (as shown in the figure) can be determined by weighing or can be relied on the information provided by the manufacturer for the required calculation.

container

 

4.  Acquiring the Tare Container Mass

In general, the tare mass of the container has been indicated in the field of “TARE WEIGHT” on the door end of the container (as shown in the figure). Should there be any reasons the tare mass cannot be determined in a timely manner, the corresponding carrier can be consulted.

container2

 

5.  Adding up all the Masses
The masses obtained in step 1, step 2, step 3 and step 4 should be added to work out the gross mass of the packed container.

 

6.  Shipper’s Declaration
For the verified gross mass of a packed container obtained by the above-mentioned method, a declaration shall be made in the shipping documents. Such a declaration should cover the below content:

“Shipper’s declaration: the gross mass of packed container declared in the shipping document was obtained in accordance with Method 2 stipulated in SOLAS Chapter VI Regulation 2 and followed by the signature of the shipper.

 

Example (1)
Assuming a shipper plans to employ a container for transportation of 5,000 bags of rice. The mass of each bag of rice is 5 kg according to the information provided by the rice manufacturer. The mass of all the securing materials is 650 kg as determined by weighing. The tare mass shown on the container indicates 3,000 kg.

From the above information, the gross mass of the packed container should be 5,000 bags of rice x 5 kg + 650 kg + 3,000 kg = 28,650 kg

 

Example (2)
Assuming a shipper plans to employ a container for transportation of 3 types of wire ropes with different thicknesses. After weighing, the mass of A type is 4,200 kg per coil, the quantity is 1 coil; the mass of B type is 6,000 kg per coil, the quantity is 2 coils; and the mass of C type is 3,500 kg per coil, 2 coils.

The mass of packaging is 80 kg as determined by weighing. The mass of securing materials is 500 kg. The tare mass shown on the container indicates 3,000 kg.

From the above information, the gross mass of the packed container should be

1 coil x 4,200 kg + 2 coils x 6,000 kg + 2 coils x 3,500 kg + 80 kg + 500 kg + 3,000 kg  = 26,780 kg