Asia’s Ports Chart Global - CargoSmartOn€¦ · Krishnapatnam – one of India ... domination of...
Transcript of Asia’s Ports Chart Global - CargoSmartOn€¦ · Krishnapatnam – one of India ... domination of...
34 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015
Asian seaborne trade has roughly
quadrupled in the last 25 years.
Three Chinese mega-ports in
particular — Dalian, Guangzhou and
Ningbo — have more than quadrupled
TEUs in the last decade.
Analysts predict continuing recovery
of demand in developed countries,
and although demand in emerging
economies may fall, it is still expected
to outpace growth in high-income
countries. As consumer economies
take hold in Asia and the southern
hemisphere, the balance of trade
continues to shift to those areas.
To manage whopping volumes and
upsized vessels, Asian transshipment
hubs are energetically investing in docks,
terminals, equipment, draft, inland
connectivity, and smart transportation
solutions.
“The evolutionary timeline toward
larger vessels has sped up dramatically.
Ports and terminals are challenged to
make sizable investments in terminal
infrastructure at an accelerated rate to be
able to accommodate the bigger ships,”
said Kurt Nagle, president and CEO,
American Association of Port Authorities.
Port investments that expedite
vessel turns and cargo movement
are welcomed by carriers looking to
continually to improve performance.
Delay concerns emerge when there is
congestion in ports such as Shanghai,
Ningbo, Nhava Sheva and Mumbai, said
Rafi Ben-Ari, vice president of shipping
for ZIM Integrated Shipping Services.
Fortunately, recent announcements will
C argoSmart Limited provides global
shipment management software solu-
tions that enable shippers, consignees,
logistics service providers, non-vessel-
operating common carriers and ocean
carriers to improve planning and on-time
deliveries.
Connected to more than 30 ocean
carriers, CargoSmart leverages big data
sources and a cloud-based platform to of-
fer award-winning sailing schedules,
visibility, documentation, contract
management, compliance, analytics and
benchmarking solutions.
BIG DATA TECHNOLOGY
CargoSmart monitors a complex
interplay of sea traffic metrics, covering
90 percent of the world’s ocean container
traffic, to deliver unprecedented insights
for customers to make better decisions.
LEADING-EDGE CLOUD
CargoSmart’s scalable and secured
data management system offers cost-
effective solutions to fulfill customers’
business needs and provides a seamless
connection with their business networks.
EXTENSIVE SHIPPING INDUSTRY
KNOWLEDGE
Leveraging decades of industry knowl-
edge and experience in vessel operations,
CargoSmart helps customers create busi-
ness value in the age of shipping industry
digitization.
Launched in 2000, CargoSmart helps
more than 130,000 transportation and
logistics professionals increase delivery reli-
ability, lower transportation costs, stream-
line operations and improve collaboration
between supply chain associates
CargoSmart is changing the way you
use digital shipping data, enabling you
to be in control of and actively manage
your shipments. For more information,
please contact a CargoSmart representa-
tive today.
CONTACT INFORMATION
CargoSmart Limited
5/F, Lakeside 2,
No 10 Science Park West Avenue
Phase 2, Hong Kong Science Park,
Shatin, Hong Kong
Global Inquiries: +852-2233-8000
U.S. Inquiries: +1-408-325-7652
www.cargosmart.com
CARGOSMART TRANSFORMS SHIPPING DATA FOR YOUR ADVANTAGE
Asia’s Ports Chart Global Advancement Course
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E
benchmarking solutions.
36 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015
provide relief for carriers in some ports.
India’s Nhava Sheva plans for
a deep-sea satellite port north
of Mumbai; privately-owned
Krishnapatnam – one of India’s deepest
container ports – has new state-
owned inland rail connectivity; China’s
Xiamen anticipates a main channel
project; Phnom Penh announced
a new terminal to support exports
to developed markets; and Laem
Chabang, Thailand’s largest port, has
approved an expansion.
At Malaysia’s Port of Tanjung Pelepas,
an investment of more than $400 million
will answer new alliance needs for
heightened reliability and productivity.
China Merchant Holdings (International)
continues its global advance in Colombo,
Sri Lanka, with a joint venture that will
see a half-billion-dollar new terminal
investment. In Singapore, a new, $8 billion
port will double the alpha city’s port
capacity to an estimated 65 million TEU.
The big carrier alliances that are
forcing vast changes to port models in
Asia and globally continue to build Far
East-U.S. East Coast capacity. In April,
industry analyst Alphaliner said that the
summer launch of six new strings — by
carriers expecting continued volume shifts
away from the U.S. West Coast — would
add about 26,800 TEU slots per week to
the trade, which would be a 24 percent
capacity increase from March.
Despite an increasing dominance of
the alliances, not all lines are members.
With a total of 11 Asia-America services,
some of which boast industry-leading
transit times, ZIM maintains a strong
The big carrier alliances that are forcing
vast changes to port models in Asia
and globally continue to build
Far East-U.S. East Coast capacity.
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E
www.joc.com THE JOURNAL OF COMMERCE 37
ASIA PORTS
independent presence in the Asian
trades. Operating a fleet where the
largest vessels max out at slightly more
than 10,000 TEUs, ZIM has not yet
chosen to trade its enviable operational
flexibility for the savings that might
come from an alliance membership.
It is challenging to offer a unique and
efficient service, but ZIM has emerged
from a corporate overhaul and is doing
just that. “These improvements are both
on the operational level, improving
service reliability, as well as on the
commercial and customer service level,
which is part of our strategic focus,” said
Vice President of Sales Nissim Yochai.
“During the severe disruptions in
U.S. West Coast ports, ZIM has proved
its strong commitment to customers by
responding fast and providing creative
solutions,” Ben-Ari said. The company
initiated customer-pleasing ‘extra loaders’
via the Suez Canal during the difficult
period. The line’s new Seven Star Express,
or Z7S, followed as a permanent solution.
The Z7S offer a particularly speedy
gateway for Asian reefer and dry cargo
moving over the U.S. East Coast to the
Midwest, but ZIM still has big plans for
the West Coast. “ZIM is well prepared
for the new enlarged Panama Canal,
and will deploy larger vessels offering
more capacity and options to customers.
We provide several gateways to U.S.
Due to the U.S. West Coast port strife in late 2014
and early this year, a portion of Asian freight will
permanently shift routing to East and Gulf Coast ports.
IN FAVOR OF NEAR-SOURCING
Carriers and beneficial cargo owners alike need options to combat West Coast port
congestion and other supply chain disruptions. This shift filters down through the sup-
ply chain all the way back to Asian ports and, ultimately, suppliers. It won’t alter their
domination of the North American import market any time soon, but has underscored,
for buyers, an important benefit of near-sourcing.
Some of the supply chain alternatives cobbled together to simply get through the
West Coast impasse panned out so well that shippers are signing on for the long term.
Having suffered heavy financial losses once, some beneficial cargo owners refuse to be put
in jeopardy again and are switching some or all of their cargo to U.S. East and Gulf Coast
alternatives.
RAMIFICATIONS FOR U.S. EAST AND GULF COASTS
Record volumes at certain East and Gulf Coast gateways have continued even after
February’s return to “normal” on the West Coast. Georgia Ports Authority reported that
Savannah, for example, enjoyed a 27.8 percent increase in March alone (compared to
March 2014) – a full month after the labor contract problems ended. They also recorded
a 15.3 percent increase in TEU volumes for the nine-month period ending in March 2015.
For many eastern and Gulf seaboard ports some diversions have become conversions.
Asian imports made up the lion’s share of the diverted cargo. In Jacksonville, Florida,
the 2014 year-over-year TEU counts for Asian containerized trade were up 20 percent,
reaching a record 272,500 TEUs, or about 2.1 million tons. For a port already deemed
the fastest-growing Asian box port on the U.S. East Coast for the last five years, accord-
ing to PIERS reports, the short-term western impasse provided a fine opportunity to
showcase its gateway’s supply-chain to new BCOs and commodities. Through Jackson-
ville, 2014 Asian imports were led by furniture, vehicles and parts, coffee, frozen fish,
plastic products, bags and toys.
Some analysts are concerned that the labor issue resolution may not be a panacea
and that systemic problems related to the arrival of alliance vessels with large cargo
volumes needing to be distributed in short windows is unresolved. Certainly, there is
room for improvement in West Coast terminal productivity, trucker availability and truck
turnaround time, but those opportunities apply through many other North American
gateways.
West Coast Strife Upshot
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E
38 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015
inland. The PNW gateway proved
reliable and performed excellently during
the West Coast crisis. In addition we
offer alternative gateways via Houston,
Savannah, New York,” Ben-Ari said.
Strategically expanding its existing
network and smart logistics solutions for
Asian trade is an important part of ZIM’s
strategic model. “We are proud of our
legacy and look ahead with confidence,”
said President and CEO Rafi Danieli, as the
company celebrated its 70th anniversary.
At the end of the day, exceptional,
innovative carriers still need exceptional,
innovative port services. Automation
brings great competitive advantage,
and the massive ports of Asia offer
exceptional fodder for automation.
Finland-based crane and equipment
maker Konecranes PLC is a leader in port
automation. “Asia is the world’s most
dynamic region, and Konecranes aims
to be part of that dynamism,” Product
Marketing Manager Svend Videbaek said.
Automated container handling is
already in place in many ports, most
commonly with rail-mounted gantry
systems. Konecranes also offers automated
rubber-tire container yard gantries, a
first in the industry. Its Boxhunter RTG
product was inaugurated two years
ago in Singapore, and is planned for
Myanmar. “In principle, nothing prevents
complete automation of the container
terminal, from STS quayside operations
to loading of external road trucks
taking containers out of the terminal,”
Videbaek said. In practice, human remote
operators currently guide truck loading
and unloading in container blocks, while
other container moves are completely
automated.
More automation is coming.
A BRIGHTER FUTURE
Konecranes is a world-leading group of
Lifting Businesses™, serving a broad
range of customers, including manufactur-
ing and process industries, shipyards, ports
and container terminals. Konecranes pro-
vides productivity-enhancing lifting solutions
as well as services for lifting equipment and
machine tools of all makes. In 2014, Group
sales totaled EUR 2,011 million. The Group
has 11,900 employees at 600 locations in 48
countries. Konecranes is listed on the Nasdaq
Helsinki (symbol: KCR1V).
Automatic moving and stacking of
containers is the next step in the evolution of
container crane technology that began with
the introduction of containerized shipping in
the 1960s. Konecranes automated container-
handling systems offer significant advantages
in an ever-more automated industry.
Automated container handling is
well-established in Automated RMG, or
ARMG, container yards around the world.
The benefits of automating a container
terminal operation are well-known:
increased safety, greater productivity and
better predictability. With the Konecranes
Automated RTG system, these impor-
tant benefits are brought to RTG-based
container terminal operations as well. With
this concept, brownfield terminals that cur-
rently operate man-driven RTGs or reach
stackers can move to automated opera-
tion. With a step-by-step approach, the
risks of automation are reduced and the
terminal can adapt and learn as it goes.
In Asia, the automated container han-
dling system of newly inaugurated Lamong
Bay Terminal, Pelindo III in Indonesia, is
also provided by Konecranes. It consists
of 20 Automated RMG cranes, remote
operating stations, or ROSs, and associated
container yard infrastructure. Konecranes
also provided 10 ship-to-shore cranes
and five straddle carriers. Handover of the
automated container blocks is proceeding
smoothly. Konecranes is providing expert
engineering support on-site.
With its long experience of successful
automation projects in the field,
Konecranes is in a unique position
to deliver automation value to
container terminals considering
automation in their long-term busi-
ness planning: the future of your
container terminal is brighter.
At the end of the day, exceptional,
innovative carriers still need exceptional,
innovative port services.
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E
40 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015
Desired redundancy, precise container
detection that compensates for fog
and dust, canyon driving, container
sway elimination – diverse container
handling objectives related to
reliability, predictability and cost – are
all being addressed by automation.
“Wherever container traffic grows
in future, we can expect to see higher
levels of automation coming into play in
container terminals,” Videbaek said.
In May, Indonesia’s Lamong Bay
Terminal inaugurated a system of
automated stacking cranes, remote
operating stations and associated
container yard infrastructure. “It is the
next generation container terminal
… This will be the key to build up
business success …,” by providing
reliability, productivity, predictability
and safety for shipping line customers,
said Prasetyadi, president director of
Terminal Teluk Lamong.
Digital-age knowledge also builds
logistical success.
Leveraging shipping industry
knowledge using leading-edge data
Z IM Integrated Shipping Services Ltd. was established in 1945,
and has developed into one of the largest, leading carriers in
the global container shipping industry.
At ZIM, we are committed to providing our clients around
the world with reliable, flexible shipping solutions based
on expertise gained from over half a century of experience.
We cultivate long-term partnerships with our customers to
delivering a range of services adapted to meet their specific
needs, with the ZIM seal of quality.
For ZIM’s highly skilled and professional staff, there is no
cargo challenge that cannot be met. ZIM’s customers enjoy
the peace of mind that comes from working with a carrier that
offers proven shipping solutions, including out-of-gauge cargo,
perishable goods, or hazardous cargo.
ZIM remains at the forefront of the carrier industry by rapidly
adapting to commercial developments and emerging markets.
This approach is an integral part of ZIM’s working philosophy,
and drives the expansion of our operations in established East-
West trade routes, while we pursue the development of our
carrier services in the world’s newest, most dynamic markets.
When your cargo is far from home, it is close to ZIM’s heart.
At ZIM, we view every customer as a valued individual. As
a ZIM customer, you will enjoy the benefits of working with a
carrier that is large enough to provide shipping services in every
corner of the world, yet small enough to give you the personal
attention you deserve.
ZIM offers comprehensive account management services
delivered by your personal service representative, a professional
shipping expert dedicated to anticipating and meeting your
needs. This individual approach ensures that you receive first-
class, fully customized services, handled entirely by ZIM, so you
are free to focus on your business.
ZIM is 32 percent owned by an Israeli corporation and
68 percent owned by financial institutions and shipowners. ZIM
shareholders are committed to helping this veteran shipping
company fulfill its mission. As we face the future, ZIM is ideally
positioned to successfully navigate the global shipping market
while remaining dedicated to the delivery of the highest level of
customer service.
ZIM — Delivering on Our Promise
GLOBAL REACH, LOCAL TOUCH
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E
www.joc.com THE JOURNAL OF COMMERCE 41
technologies, Hong Kong-based CargoSmart Limited helps
customers unlock business value in the age of digitization.
“The company monitors a complex interplay of sea-traffic
metrics, covering 90 percent of the world’s ocean container
traffic, to deliver unprecedented insights for business value
creation,” Chief Commercial Officer Lionel Louie said. Sea
traffic metrics and a scalable platform help provide analytics
and insights for customers.
CargoSmart provides global shipment management
software solutions to enable shippers, consignees, logistics
service providers, non-vessel-operating common carriers
and ocean carriers to improve planning and on-time
deliveries, lower transportation costs and streamline
operations. Clear information can help logistics managers
tackle port congestion, service changes or labor disruptions.
The company’s offerings include analyses of live sea-traffic
to optimize sailing
schedule data; a daily
Schedule Delay Alert;
a Private Label Sailing
Schedule solution
for non-vessel-
operating common
carriers; a sailing
schedules mobile
application with
reliability rankings;
a segmentable monthly Carrier Performance Insight report;
and the “Innovating” newsletter that reports, for example,
cargo delays by port. From July to September 2014, there
were nearly 22.5 million global schedule changes, 57 percent
of which occurred at Asian ports. Among Asian ports,
Singapore had the most schedule changes.
Products offering better real schedule visibility are
extremely beneficial to the enormous Asian market,
helping shippers improve planning and bookings.
Comparing performance by port, port-pair, and carrier
can be particularly useful. “In such competitive Asian
markets, carriers, ports and terminals need to find ways
to differentiate their services,” Louie said. CargoSmart
is helping to fill visibility gaps in the ocean portion of
shippers’ supply chains, especially during peak season and
times of high port congestion.
Innovative products and practices are being propagated,
in part, by the sheer size and volume of business moving
through Asian hubs. The global shipping industry stands to
gain by riding the coattails of ports, carriers and shippers in
Asian markets – the early adopters who have leveraged their
opportunities and are set for success.
Contact Lori Musser at [email protected].
Clear information can help logistics
managers tackle port congestion,
service changes or labor disruptions.
SP
EC
IAL A
DV
ER
TIS
ING
SE
CTIO
N O
F T
HE
JO
UR
NA
L O
F C
OM
ME
RC
E