Bigger container ships may be holding back recovery
Shipowners may look to larger vessels to overcome their immediate cost challenges, but industry players have warned that bigger ships present a host of other challenges which the industry has to prepare itself for.
The implications of this shift up in size would have adverse implications on other shipowners and terminal operators, they said at the Asia-Pacific Maritime (APM) 2014 conference, reported Business Times Singapore.
The conference, being held at Marina Bay Sands, brings together the region\'s maritime community and showcases the latest in marine engineering and port technology.
Thomas Kriwat, the chief executive of Mercantile Shipping Co, suggested that the introduction of mega-container carriers – which raise the industry\'s capacity but keep freight rates down – could be a key reason the container shipping market is taking so long to recover.…(Read more on Vietnam Shipper Issue No. 116)
Shift to Ocean Erodes Air Cargo Market Share
The global air cargo business has been losing market share to ocean freight over the past 13 years as shippers seek less costly transport solutions in ocean freight.
The share of total global containerized or unitized cargo transported by air cargo declined from 3.1 percent in 2000 to 1.7 percent in 2013, according to new research by Seabury Group and the International Air Transport Association.
The new research confirms the trend detected by industry analyst Transport Intelligence, which said the air freight forwarding market in 2012 shrank 4.2 percent to $62.62 billion as a result of overcapacity, rising fuel prices and other operational costs. …(Read more on Vietnam Shipper Issue No. 116)
S America perishables exporters target Asia
American Airlines is working on a new route for flower exports from Ecuador. “We have developed a new service by aligning with an interline partner to move flowers from Quito to Miami,” said Carmen Taylor, managing director of cargo sales for Latin America.
American Airlines has no wide-body aircraft on the Quito route, so its sole direct flower lift out of Ecuador is out of Guayaquil. The Quito route gives the carrier a second way to tap into the country’s flower exports. …(Read more on Vietnam Shipper Issue No. 116)
Expansions continue in Middle East
Emirates expects its new daily service to Kiev, which launched on Jan. 17, will become a key trade route between the United Arab Emirates and Ukraine.
During the first half of 2013, the value of trade between Ukraine and the UAE increased 27 percent to US$429 million (316.3 million euros). The additional capacity for the carriage of goods – a 15-tonne cargo hold on every flight – will boost that vital trade, transporting steel, aircraft components, heavy machinery and ships spares out of Ukraine.
With a booming agricultural sector, Ukraine is also the world’s largest exporter of sunflower oil and a major global producer of grain and sugar. Imports from the UAE into Ukraine consist of vehicles, textiles, dates, medicines, perfumes, tea and juices..…(Read more on Vietnam Shipper Issue No. 116)
Cargo landscape shifts in Latin America
Asian carriers have Mexico in their sights. Cathay Pacific, which launched all-cargo flights to Guadalajara last September, added Mexico City to its freighter network in March. Korean Air also mounted freighter flights to Guadalajara. Like Cathay, it tagged the Mexican destination to an existing U.S. route.
The Korean carrier intends to ramp up its presence in South America, having started B747 freighter flights to Sao Paulo and Lima, Peru, in 2012. .…(Read more on Vietnam Shipper Issue No. 116)