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

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