News & Events

Indian state-owned shipping company to start new vessel service to Maldives from Monday

India’s state-owned Shipping Corporation of India (SCI) will commence new direct vessel service to the Maldives from Monday, the company said. It will be a container and break-bulk cargo service with the support of the country’s shipping and external affairs ministry, the company said. The maiden voyage by SCI, the country’s largest shipping company operating one-third of India’s shipping tonnage with annual revenue of 602 million U.S. dollars, will be flagged off from Tuticorin port — 586 km South of Bengaluru. In June 2019, a memorandum of understanding was signed between the two countries to start a direct passenger-cum-cargo ferry service to provide an alternative, direct and cheaper means of transport for goods and passengers and to further economic, social and cultural ties between the two nations. According to a SCI official, the container cum break-bulk vessel will carry 200 twenty-foot equivalent units (TEUs) and 3,000 metric tons of break bulk cargo, with a round voyage of 10 days. The trade cargo would include electrical machinery and equipment, white goods like televisions and home appliances, drugs, steel products, construction material, sand, garments and textiles, bathroom fittings and furniture and perishables, including fruits, vegetables, eggs and food grains, the official said. Source: Xinhua

News & Events

Indian state-owned shipping company to start new vessel service to Maldives from Monday

India’s state-owned Shipping Corporation of India (SCI) will commence new direct vessel service to the Maldives from Monday, the company said. It will be a container and break-bulk cargo service with the support of the country’s shipping and external affairs ministry, the company said. The maiden voyage by SCI, the country’s largest shipping company operating one-third of India’s shipping tonnage with annual revenue of 602 million U.S. dollars, will be flagged off from Tuticorin port — 586 km South of Bengaluru. In June 2019, a memorandum of understanding was signed between the two countries to start a direct passenger-cum-cargo ferry service to provide an alternative, direct and cheaper means of transport for goods and passengers and to further economic, social and cultural ties between the two nations. According to a SCI official, the container cum break-bulk vessel will carry 200 twenty-foot equivalent units (TEUs) and 3,000 metric tons of break bulk cargo, with a round voyage of 10 days. The trade cargo would include electrical machinery and equipment, white goods like televisions and home appliances, drugs, steel products, construction material, sand, garments and textiles, bathroom fittings and furniture and perishables, including fruits, vegetables, eggs and food grains, the official said. Source: Xinhua

Fast tracking Sri Lanka’s bid to be a major maritime hub

Maritime trade has been the lifeblood of the modern global economy, and Sri Lanka, with its close proximity to the main East West trade lane, has immensely benefited from its geographic location. The Port of Colombo recorded a throughput of 7.2 million TEUS in 2019. However, the bitter truth is that Sri Lanka will have to be highly competitive and grow further if the country wants to maintain its supreme position as the most important trading hub in South Asia and it simply cannot rely only on the advantage of its geographic location. In other words we need to build capacity. This was emphasized by President Gotabaya Rajapaksa when he discussed the future activities of the State Ministry of Warehouse Facilities, Container Yards, Port Supply Facilities and Boat and Ship Building Industry Development on Tuesday (September 15). He said that Sri Lanka can use its unique location advantage to become one of the world’s leading maritime hubs. Pointing out that the goal could be achieved speedily by developing our port facilities by emulating the world’s most advanced ports, he emphasized the need to develop our ports to a higher level to make them capable of attracting world’s largest cargo ships each with a capacity of 24,000 containers. To enhance our port capacity, the development of the Eastern and Western Terminals of Colombo Port should be accelerated, he said. Further the port system should be developed to cater to the needs of international vessels plying close to the country and in parallel to these initiatives ports in Colombo, Galle, Trincomalee, Kankesanthurai and Oluvil should be developed. During the discussion, special attention was paid to upgrading the reshipment handling capacity, offering warehouse facilities and container terminals as well as supply facilities of international standard. Construction of new warehouse facilities in areas such […]

Trans-Pacific container rates take market by surprise; industry players scramble

Trans-Pacific container freight rates scaled new heights over the past month, with multiple general rate increases (GRIs) taking spot rates to week after week of record highs. However, some key moves by authorities in the past week have tempered bullish expectations. Going forward, sources are divided in their expectations for the rest of the year. At $3,800/FEU, the cost to ship from North Asia to West Coast North America is now almost triple what it was at the start of the year, when it was $1,350/FEU. For goods flowing from North Asia to East Coast North America, rates have also jumped, climbing 74% year to date to $4,350/FEU on Sept. 18. “Imagine yourself as an importer in the US, with contracts and budgets. Even if those contracts don’t take a GRI, everything outside does, which blows the budget out of proportion. So you’ve got major retailers, importers, scrambling for space and having to pay these big premiums. At what point does it stop?” said Jon Monroe, founder of Jon Monroe Consulting. Pre-contracted container freight is typically unaffected by general rate increase announcements. However, the unexpected surge in demand for certain goods such as personal protective equipment due to the global coronavirus pandemic has resulted in firm demand for spot space, which is not pre-contracted and incurs GRIs. According to local media reports, China summoned carriers on Sept. 11 to discuss measures to regulate the sharp rise in trans-Pacific rates, and advised them to cut back on blank sailings. On Sept. 18, the US Federal Maritime Commission said it would review the container market for possible non-competitive practices, increasing scrutiny of the three major global container alliances. Container alliances, capacity management trends Alliances currently comprise about 80% of the container market. When trading activity cooled with the start of the global […]

Ship shape for the future?

The global maritime industry is in a state of flux. The arrival of COVID-19 threw a spanner in the works; but growing interest in alternate fuel and energy efficiency, digitization, and the business trend of moving from solution providers to service providers, are changing the face of the maritime industry. Powering decarbonization The last few years saw the International Maritime Organization (IMO) set goals and regulations to reduce emissions. In January of this year, the IMO’s cap on sulfur used for marine fuels came into effect. This regulation, as well as the target of a 50% carbon emissions reduction by 2050, are expected to change the industry. That said, shipping companies and regulation bodies share the responsibility for a greener shipping industry. Reducing overall carbon footprint, as well as balancing fuel consumption in individual vessels to create cost savings should be enough motivation for all stakeholders. For some years, liquefied natural gas (LNG) has been considered the frontrunner for cutting ship emissions Other solutions, such as hydrogen and ammonia can offer zero-emissions if correctly implemented; though it seems these are conceptual rather than concrete for all but the smallest vessels. Electrical propulsion, on the other hand, could have a bright future. Beginning in the 1980s, e-propulsion is now established in certain vessels such as ice breakers, cruise liners, and drilling vessels operated by dynamic positioning. Related installation and training costs are high, but going forward, the pros of electrical propulsion far outweigh the cons. This year, various shipping companies began mixing biodiesel into their fuel supply. In some cases, biodiesel can generate 90% less CO2 than virgin fuel; but offsetting a portion of fuel oil with recycled substances also helps these vessels to contribute to , cutting carbon emissions in real terms. Reduced emissions can also be achieved with innovative […]