Volume 2, Issue 38, August 14 2017

This week’s articles:

  • Labor Strike Planned in India
  • Panama Canal New Discounts
  • Chinese Company Will Supply Cranes to Chabahar
  • Chittagong Floating Terminal
  •  Shanghai Titled as Busiest Port in the World in 2016

NOTABLE HOLIDAYS
14th – Janmashtami (Bangladesh), Independence Day (Pakistan), H.M Queens Birthday (Thailand)
15th– Independence Day (India), Liberation Day (South Korea)
17th – Independence Day (Indonesia)


Labor Strike Planned in India 

Dockworkers are planning to strike at India’s busiest ports on August 18, 2017, protesting the Major Ports Authority Bill 2016. The ports targeted include Kolkata, Paradip, Visakhapatnam, Chennai, Tuticorin, Cochin, New Mangalore, Mumbai, Jawaharlal Nehru Port Trust, Kandla and Marmugao. This may cause operational delays. 

Panama Canal New Discounts 

The Panama Canal will be implementing poll discounts in October to ships making a return trip through the canal within 28 days. These discounts are a tactic to attract customers and compete with their competitor, the Suez Canal. The canal will implement incentives such as frequent customers will receive premium prices once a particular TEU volume is reached. To read more, click here

Chinese Company Will Supply Cranes to Chabahar

The Chinese Company ZPMC has won the contract to supply cranes in Iran’s Chabahar port. The Chabahar port, on Iran’s southeasterm coast, is being developed by India as a counter to China’s involvement in Pakistan’s Gwadar Port. The ZPMC has been banned by India from supplying to Indian Ports. This contract will advance the Chine’s strategy to increase trade and “its unofficial agenda to encircle India through its arch-rival, Pakistan.” Nonetheless, the development of this port will result in a boost in trade and business between the two countries and in the region.
Sources: 1 2

Chittagong Floating Terminal

A proposition for a floating terminal at Chittagong terminal has been approved by the Bangladesh government as a form of relief for the ongoing Chittagong congestion. The Port of Chittagong has experienced serious congestion over the last few months as a result to weather issues and other issues, which has led to considerable delays for all vessels. The floating terminal will act as a “cargo hub” for import and export shipments that will be transferred between larger container ships and feeder vessels.
Source

Shanghai Titled as Busiest Port in the World in 2016

For the 7th year in the row, Shanghai has been named as the busiest container port in the world. Shanghai handed over 30 million TEUs, 37.13 million to be exact. Over the past year, Shanghai’s operations have been booming in revenue and traffic.

Source


Previous Newsletter

 

 

 

CARGO SWEAT & CONTAINER RAIN: What to do?  

By: Don Hardy

Occasionally we see containers that arrive and the cargo inside is all wet with unsightly blotches of mold.

You find that there are no holes in the container, the container is a completely sealed, undamaged and clean unit. Yet the interior of the container and your cargo has wetness, mold and mildew on the boxes. Water / condensation rains down from the ceiling of the container.

What is to blame?

If your containers are loaded in a warm tropical environment (ex China, India, Vietnam) where the air was humid and warm, then shipped to the United States, where temperatures were far cooler, your cargo may have experienced a problem called “cargo sweat” or “container rain.”

  
 Inside container rain drips down on boxes 
  

A container is a closed system with its own unique climatic system inside. It differs from a warehouse in that the variations in temperature are usually much greater. It is not unusual to have containers where temperatures range from freezing to over 50° Celsius (122° Fahrenheit) during the course of a single voyage.

The central fact is that warm air can hold more moisture than cold air. That means that if warm air is cooled, it becomes more humid. If it is cooled enough, some of the moisture may rain out and condense. This is exactly the same phenomenon that causes dew in the grass or fog on a cool day.

The resulting damage may not be covered by filing a cargo claim with the carrier.

 An example of cargo “sweat” appearing on the inside of a container 
  

Possible Solutions:

1)     If possible, load containers inside warehouse when cooler or in air conditioned low humidity environment.

2)     Never load containers in rain or drizzle.

3)     Use Container Desiccant to wick moisture from the air

 
 

Most desiccant manufacturers have guidelines for their products that will help you determine the type and number of units to hang inside of the container.

4)   Consider / request ventilated containers. These are typically used for coffee beans etc. but are based upon availability.

Why does this happen?

The Relative Humidity (RH) is a percentage measure of how much moisture the air holds, as compared to the maximum amount of moisture air at that temperature can hold. That means that completely dry air has a RH of 0%. The RH can never be more than 100%, or any excess moisture will rain out. There is little risk of damage to any cargo if the RH is below 50%.

The humidity changes when the temperature does.

 Relationship between Temperature and Humidity
 
 

In a container, a fast temperature change of 5°to 10° Celsius is often enough to cause problems. Water will condense on the coolest available surface, which usually is on the container ceiling or walls. From there it may drip down onto the cargo and cause damage, also known as container rain. At other times it condenses on the cargo, say on the inside of the pallet wrap, also known as cargo sweat, which is usually even more damaging.

  


   

   

Even without any condensation, elevated humidity over a period of time is sufficient to cause damage. Many metals will corrode or discolor at a rather modest level of humidity of 60% to 70%. At higher levels of humidity, above 80% molds can grow, labels peel and corrugated boxes start to soften.

It is important to realize that the humidity of the air changes only as a result of the change in temperature. When air cools it becomes more humid, even though the moisture content in the air remains the same.

The humidity in a container will go up and down throughout the voyage, as a result of changing temperatures. If the temperature changes rapidly enough there are sure to be moisture risks, even if the container may be fairly dry.

In a container, moisture evaporates into the air during periods when the container is warm. The warm dry air can accept a lot of moisture. Warm moist air from the outside can also enter into the container through container breathing. When the container cools down, that air becomes very humid. This is when the risk for moisture damage increases. 

But the temperature does not only have to change over time to make a difference. It is also risky when different parts of a container are at different temperatures. When warm air moves into a colder part it becomes humid and perhaps even condenses moisture. Tons of moisture can be redistributed within a container during a voyage through such processes. Strange patterns of damage may arise, such as mold only in certain parts of the cargo.

Please feel free to share this information with your factories and overseas partners. If you have any questions please feel free to contact Don Hardy (dhardy@wwllmail.com)

Sources: 1,2,3,4

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.