Weekly Edition 30th of July 2009

Fears grow in Yemen that Somali pirates are linking up to attack

SOMALI pirates may be adopting new “pack tactics”, with reports that Yemeni armed forces have beaten back an attack on a Yemeni oil tanker staged by 14 pirate boats that were working together, writes David Osler .

Japan takes on full escort role

New legislation permits Japan to protect ships regardless of nationality

Turkish navy captures suspected pirates

TURKISH naval forces captured five suspected pirates in the Gulf of Aden today, after intervening during an attack on a still-to-be-identified vessel.

Gulf of Aden attacks to surge

PIRACY incidents in the Gulf of Aden could increase sharply when the monsoon season ends in a few weeks, naval sources in the region have predicted.

Dutch officer takes helm of anti-piracy force

COMMODORE Peter Bindt has been appointed European Union Force Commander of the anti-piracy mission off Somalia, writes Justin Stares.

Rise in piracy expected as monsoon season ends

Taskforce urges caution as calmer weather brings increased risk of attack

Navy keeps pace as pirates raise their game

Greater use of aircraft and intelligence as pirates switch strategy

Use of armed guards could escalate piracy risks

THE new head of the Royal Navy has told Lloyd’s List that using armed guards on merchant ships sailing off Somalia could prove counterproductive and lead to an escalation in violence.

Brisbane battle lines drawn over car charges

THE BATTLE between the motor industry and Australian Amalgamated Terminals (AAT) looks set to settle into a war of attrition after salvos were traded this week.

Tit-for-tat in state-of-origin coal contest

QUEENSLAND Rail (QR) and Pacific National (PN) have continued their double-fronted war, each securing lucrative coal haulage contracts in the last week.

Newcastle access success just the start

NEW South Wales ports minister Joe Tripodi has warned of a “long and difficult journey” ahead for other sectors of the state’s freight industry in the wake of long-term agreements reached for coal exports through the port of Newcastle.

Additional security charges draw questions and concern

SHIPPING Australia has requested a please explain to Newcastle Port Corporation following a decision last month to increase its security charge by 130%.

Trouble flagged over Rio shipping changes

THE UNCERTAIN future for crews aboard Rio Tinto’s superseded bauxite carriers was beginning to put the spotlight on federal transport minister Anthony Albanese’s much-anticipated coastal shipping reform plan.

Europe-Australia box trade in slide

CONTAINER imports from Europe to Australia fell almost 30% in April and May, European Liner Affairs Association (ELAA) figures show.

National freight volumes forecast to surge by 2030

AUSTRALIA’S domestic freight task will grow to more than 1trn tonne kilometres by 2030 as local demand for goods and commodity exports support growth in road and rail transport, according to a government report.

NTC review boost for heavy vehicle reform

THE NATIONAL Transport Commission (NTC) has backed the Performance Based Standards (PBS) scheme for heavy vehicles following a review, chief executive Nick Dimopoulos said last week.

BHP chartering fails to remedy capesize woes

RENEWED chartering activity by mining giant BHP Billiton did nothing to stem the slide in capesize rates last week, as more vessels became available after congestion eased outside Chinese ports.

Small but fast forwarders

BRIAN Lovell’s article (Lloyds List DCN, July 2) on IATA e-freight highlights the growing international attention to paper-free air cargo.

Swire, governments move closer to resolution

OIL SPILL compensation negotiations between Swire Shipping and Australian governments were ongoing this week, though the Federal Government looks increasingly likely to pay for any shortfall between the insurance pay-out and the full clean-up bill from the Pacific Adventurer oil spill.

Ports like land plan

NEWCASTLE Port Corporation has finalised a two-year process that sees it take control of about 470 ha of land previously owned by various arms of the New South Wales Government.

WA looks for options after grain rail review raises queries

COSTS would outweigh the benefits of spending $800m repairing and maintaining Western Australia’s grain rail infrastructure, a Federal Government report released this week found.

TT Club upbeat for 2010

Box volumes still only down to 2007 levels as claims fall by a fifth, reports JERRY FRANK

New call to arms against pirates

GUNS and merchant ships are, in general, not a wise combination.

Cancellation and deferrals spread across all sectors

Owners cut repairs as ports scale back on equipment purchases, writes Richard Meade

Further losses loom for Japanese trio

JAPAN’s big three shipping companies all sank into the red in the first quarter of the year, and NYK and K Line are now forecasting full-year losses.

Operating costs to fall – report

IN THE midst of recession, hearing that the cost of running a ship is likely to fall must be welcome news for shipowners.

China firms looking at wage costs

MORE than two-thirds of 150 large Chinese shipping companies intend to freeze or cut salaries this year in a bid to tackle the tough business environment.

All set for a push start

CAR inventories have bottomed out and Wallenius Wilhelmsen Logistics (WWL) director Greg Martin is optimistic that the worst is over for the vehicle transporter’s Australian trade.

Big boost for newbie service

AS THE brand new pure car/truck carrier (PCTC) Silverstone Express completed its first successful swing through Australian and New Zealand ports last week operators Partner Shipping and Praxis Logistics were buoyed by further good news.

Carrier looks to India and China for car hoist

PRELIMINARY figures for 2008 showed an all-time high performance for Höegh Autoliners, with the Oslo-based company transporting a total of around 2.1m car equivalent units last year.

Managers buyout B&B fund

A TEAM of former managers has acquired the €2.2bn (US$3.1m) Babcock & Brown European Infrastructure Fund (BBEIF) together with Babcock & Brown’s associated interests in the fund.

Scrap yards feel pressure

CAPACITY at scrapping yards has reached around 80%, heightening concerns about whether there will be enough facilities to cope with the rising number of ships sold for demolition.

Market share bright spot in general gloom

HALF-YEAR results from the world’s top two logistics giants, Deutsche Post DHL and Kuehne+Nagel, continue to paint a no-growth picture for the full year 2009.

Hapag-Lloyd seeks charter rate cuts

HAPAG-Lloyd is pressing shipowners for a hefty cut in charter rates as part of a rescue package similar to the one negotiated in May by Chile’s CSAV.

Box giants in stand-off with bank over call for more money

TWO of Europe’s largest containership operators are heading for a showdown with Korea Eximbank over demands for extra money to cover the cost of newbuildings that were already financed and are ready to be delivered.

WTO says China will lead rally of global economy

GLOBAL commerce officials are looking to China to power a world economic recovery, but trade volumes are still set to contract by 10% this year.

GrainCorp goes online with CLEAR

GRAINCORP has agreed to integrate its online warehousing system with the online grain exchange, CLEAR.

Only a quarter of 2009 orders ship

ONLY a quarter of the dry bulk carriers scheduled to enter service in 2009 have been delivered in the first half of the year as yards struggle to cope with the mammoth orderbook.

Idle LNG vessels costing owners

SOME of the world’s most expensive vessels remain unemployed off the coast of Khor Fakkan since delivery from South Korean shipyards earlier this year, and have yet to transport any cargoes.

AWB crops Brazilian operation

AUSTRALIAN agribusiness AWB has decided to wind down its troubled Brazilian division, which is expected to post a pre-tax loss in the current financial year.

Freight rate rise predicted

THE COST of shipping commodities such as iron ore, coal and soybeans may almost double through the end of the year, Mirae Asset Securities said.

Shipping to plug huge gap in UN climate deal

SHIPPING, along with aviation, could be used to plug a multi-billion-dollar gap in the funding of CO2 reduction schemes when governments meet to agree a post- Kyoto climate change pact in December.

Japan and Taiwan exports signal hopes of recovery

A SLOWING of the decline in Japanese and Taiwanese exports has sparked suggestions that Asian economies are benefiting from global quantitative easing, although there is no sign yet of an upturn.

US imports set to bounce back

BANANAS and medical equipment were the only two major US import categories that showed growth in the first quarter as container lines suffered their biggest slump in inbound cargo for almost two decades.

Upturn cheer for gasping box lines

CASH-starved container lines are pressing ahead with a second round of freight rate rises in the Asia-Europe trades after unexpected success in lifting box revenues at the start of the month.

Goodyear quits Temasek roles after falling out

CHIP Goodyear has walked away from becoming chief executive of Singapore state investment group Temasek, owner of the PSA International ports group and a majority stakeholder in shipping line NOL, due to “differences regarding certain strategic issues”.

Port workers break ranks in the battle of Marseilles

FRANCE’S leading port workers’ union has sounded the end of the battle over port reform at Marseilles’ Fos deepwater complex.

Container lines warned off very large alliances

SHIPPERS from around the world are warning container lines to avoid forming alliances that are excessively large. While accepting that benefits can be obtained from consortia through economies of scale, shipper groups are anxious to ensure such cooperative arrangements between lines “strike the right balance”.

Cargotec in the red as sales fall

Challenging first half of 2009 has required heavy restructuring, reports Roger Hailey

The modal rort and what it costs us

ALL THREE domestic freight modes of road, rail and shipping are subject to Australian laws and paying Australian tax. And they compete with each other for domestic freight within Australia.

THE BRISBANE office for Damco/Maersk Logistics Australia recently celebrated its fourth annual Multicultural Day.

The group’s national customer service manager Michael Thirgood said the day was about celebrating the cultural diversity of its staff. The SCM Electronics Team won the Best Team in 2009 prize. “Hopefully our annual celebration of diversity will inspire other companies in the transport and logistics industry to follow our lead,” Mr Thirgood said.

Opinion: Lessons from MSC Napoli

LATERAL thinking was needed to work out how to remove the badly damaged stern of the MSC Napoli.

Japan takes on full escort role

Headed for the Gulf: Japan has sent two warships to the troubled waters, as new piracy-fighting strategies are plotted at top level.

Casualty Briefs - 30th July 2009