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Global crisis hits shipping industry

Ports operator PSA said on Tuesday a slump in container shipping trade has hit bottom but many ports are likely to face overcapacity and increasing competition before global volumes rebound. "I'm confident that physical trade in terms of containers has actually bottomed and the trend moving ahead is likely to be positive," said Kuah Boon Wee, Southeast Asia chief executive of PSA International, which operates ports around the world.

But Kuah, speaking at a shipping conference in Singapore, warned that some ports in the region, including those in Indonesia, southern China, the Straits of Malacca and North Asia, serving trans Pacific routes, are in 'structural overcapacity'. The fall in world trade resulting from the global financial crisis has hammered shipping companies and port operators, forcing shippers such as Singapore's Neptune Orient Lines to cut capacity and jobs. "Competition is likely to increase in the short-term. The drop in ports is across the board it's endemic and it will take time to improve," Kuah said.

"Global trade will rebound, and I think it will probably rebound with more Asian characteristics we are going to have to rely more on Asian-centric demand."

The Asia Pacific chief executive of Maersk Line, Jesper Praestensgaard, a unit of A.P. Moller-Maersk , told the conference the current recession would drive consolidation in the industry, but he did not see it happening right now as companies focus on their own financial health. Reuters


Call to develop shipping sector in North and East

With the end of the scourge of the cancerous war it's opportune to concentrate on developing the shipping sector in the Eastern and Northern Province, said Shipping, Aviation and Ports Committee Chairman of the National Chamber of Commerce Sujeiva Samaraweera.

Samaraweera is also the Managing Director of Atlas Logistics Lanka (Pvt) Ltd.

Our key objective is to draw the immediate attention of the Ports Authorities, shipping sectors and other relevant organisations to explore the possibilities of developing the shipping sectors in the coastal belt of the Eastern and Northern Provinces where abundant sea resources exist.

It is also necessary to provide infrastructure facilities including road network, electricity and water supply.

These preliminary facilities should be in place in advance. By providing such facilities we can promote foreign investments since foreign investors are always concerned about the facilities, Samaraweera said. Development in agriculture, livestock and dairy farming are untapped business opportunities in the Eastern Province since the war, but if we can concentrate to developing such sectors we can use the sea for the transportation of the products to minimise conveyance expenses, he said.

Samaraweera also said that the Committee had submitted a series of proposals to the Ports Minister and the Ministry is in the process of dealing with feasibility studies.


DHL picks Lanka for GPS Tracking Service

DHL Global Forwarding, the world's leading air and ocean freight company, has chosen Sri Lanka as its Asia Pacific launch pad for two of its latest innovations for ocean freight shipping.

DHL launched a GPS Tracking System for its LCL ocean freight shipments out of Colombo and also unveiled its latest solution for the Fashion and Apparel industry - Garment-on-Hangers Boxes which are now available for LCL services.

This follows DHL's announcement in March this year of its investment of US$8 million in Sri Lanka over three years as well as a state-of-the-art warehouse and distribution centre by 2010.

As part of this investment, by end 2009, DHL will also launch the "DHL Fashion and Apparel Centre for Excellence" in Colombo, a centre comprising a core team of industry experts and responsible for developing tailored solutions and provide consultancy services to customers.

Country Manager, DHL Global Forwarding Lanka, Ashwani Nath said, "We're committed to Sri Lanka and its potential as sourcing and distribution gateway for the South Asia region. These two innovations in Sri Lanka are specifically for LCL (Less than container Load) ocean freight shipments, a segment the market leader expects to continue to grow.

By introducing such market-leading solutions to Sri Lanka, customers here will be among the first to adopt leading-edge services that will give their businesses a further competitive advantage."

The introduction of the GPS Tracking System in Sri Lanka marks the first time the service is introduced following a successful trial in February 2009.


ISES from Colombo Port

The Shipping Corp. of India will operate the India-Subcontinent-Europe-Service (ISES) in conjunction with Mediterranean Shipping Co., effective in May.

The joint service will deploy seven vessels of around 4,300 TEUs each, offering a fixed-day weekly frequency. The port rotation is Colombo, Nhava Sheva, Mundra, Salalah, Port Said, Barcelona, Hamburg, Rotterdam, Felixstowe, Port Said, Jeddah, and back to Colombo. The ISES was originally launched by a five-member consortium, comprising state-owned SCI, Zim Integrated Shipping Services, Yang Ming Line, MISC Berhad and "K" Line.

While Zim decided to pull out of the group about a month ago, the other three partners are expected to withdraw from the service in May. Jow.com


Colombo South breakwater nearing completion

The construction of the breakwater and the construction of the Hambantota port have shown a significant progress during the last months.

Colombo South breakwater dam under construction

The placing of the core material and protection layers of first 600 m length of the Colombo South break water have been completed up to date.

It is planned to complete 750 m length of the breakwater before the coming South West Monsoon expecting in late May 2009.

The contractor has planned to continue the construction of the breakwater during the SW monsoon depend the availability of calm weather windows.

The rock transportation from load Out Point ( Small Harbour) located at Wadduwa Kalutara has been commenced and few loads of barges have already transported to Colombo.

The dredging of main channel and the reclamation for breakwater and the contractor's working area is in progress satisfactorily and upto date more than 7 million Cubic metres have been completed.

The steel pipe fabrication for the diversion of SPBM oil pipe line is being done in Korea and excavation and rock blasting necessary to bury the pipe line is in progress. The new pipe line will be operational in March 2010. The construction work of the Hambantota port too is going on apace, a Project official said.

The importance of the construction of the port within 10 nautical miles of the world's busiest shipping lane had been identified by several shipping magnates and oceanologists since it is located directly at the intersection of major international sea trading routes. The natural depth along the coastline is suited for the development of a deep-water-port.

The most important thing in this port is the approaching to the port does not necessitate a long dredged channel.

The strategically situated maritime gateway to India is also one advantage to develop the trade between the two countries, the official said.


Boost in ship building industry

In 2008, Chinese accomplished shipbuilding output was 28.81 million deadweight tonnages, rising by 52.2% of previous year. The newly undertook ship orders were 58.18 million deadweight tonnages, a reduction of 40.9% of last year. Ship orders in hand were 204.6 million deadweight tonnages, increased by 28.7% compared with 2007. According to the Clarksons, the market shares of Chinese accomplished shipbuilding output, newly undertook ship orders and ship orders in hand accounted for 29.5%, 37.7% and 35.5% respectively in the world, in which Chinese accomplished shipbuilding output and ship orders in hand kept a fast growth for six consecutive years and led to the three indicators standing the second place in the world.

According to the Clarkson, in 2008, the global newly undertook ship orders were totaled at 150 million deadweight tonnages. PR inside.com


World piracy doubles in Q1 2009

Piracy incidents nearly doubled across the globe in the first quarter of 2009 almost entirely due to an upsurge in attacks by gangs off the Somali coast, the International Maritime Bureau (IMB) said on Tuesday.

The London-based watchdog recorded 102 attacks worldwide in the first three months of 2009 compared with 53 in that period a year ago, with 61 attacks in the Gulf of Aden and off the east coast of Somalia compared with 6 in the first quarter of 2008.

Somali pirates have made millions of dollars in ransoms hijacking commercial vessels in the busy shipping lanes of the Gulf of Aden and Indian Ocean, despite patrols by foreign navies off the Somali coast, disrupting aid supplies and trade routes.

Twenty attacks were recorded off Somalia's east coast with 18 of those in March alone, which included four hijackings. That compared with seven incidents in the fourth quarter of 2008. The IMB said 41 incidents were reported in the Gulf of Aden region and 5 vessels hijacked.

A total of 34 vessels were boarded, 29 ships fired upon and nine hijacked worldwide, the IMB said. "In the majority of incidents the attackers were heavily armed with guns or knives," the watchdog said. "Violence against crew members continues to increase." "Given the current state of the global economy, there are concerns that piracy may increase. Navies and coastguards must continue to maintain their physical presence," it said. Reuters

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