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Monday

CHANGES OF SHIPPING ROUTES FROM RED SEA

 

Hijackings, missile strikes and drone assaults on ships by Yemen’s Houthi rebels have forced one of the The world's largest shipping group, Mediterranean Shipping Company (MSC), to divert its ships away from the Red Sea because of an increased threat of attacks. Other Shipping Lines, Danish shipping giant A.P Moller-Maersk -- which also accounts for 15% of the global container freight market -- suspended voyages passing through the Bab al-Mandeb until further notice. 

Hapag-Lloyd on the other hand -- which controls 7% of the container market -- also paused traffic through the Red Sea until at further notice.

French company CMA CGM took a similar step a day after 

Their decisions, announced on Friday, are a sign that major corporations are taking the security situation in the Red Sea increasingly seriously. But the consequences might also be felt by the world’s oil markets and the cost of energy that consumers need to bear – though the extent of any disruption might depend on how major global players respond to the looming crisis, said experts.

The decision comes after Israel was accused of a genocide in Gaza, Palestine by Houthi rebels in Yemen, who are said to be targeting ships travelling to Israel. The Houthis have warned that they will target ships sailing off the coast of Yemen and with links to Israel, in response to the war between Israel and the Palestinian Islamist movement Hamas in the Gaza Strip.


The ongoing conflict in the Middle East had already caused some carriers in the past few weeks to avoid the Suez Canal in the interest of security, with the accumulation of attacks from Yemeni rebels leading liner companies to re-route ships via the Cape of Good Hope (CGH) to avoid hostilities impacting container ship traffic in the Red Sea.

Zim Integrated Shipping Services (Zim Lines) - an Israeli carrier based in Haifa, that has since been dismissed from several ports, including Malaysia -- has increased freight rates on its Asia-Mediterranean service to cover the rising costs of securing its vessels. Other Affiliates of Zim Line follow suit.

Meanwhile, On the Arctic Side, Russian nuclear agency ROSATOM said recently it has set up a joint venture with Dubai's DP World to develop container shipping through the Arctic as part of an initiative heavily promoted by Russia President Vladimir Putin.

The deal with one of the world's top port operators is the most tangible sign yet of Moscow's ability to attract big international partners to help it realise its ambitious plans for what it calls the Northern Sea Route.

Putin has talked up prospects for the Arctic corridor, including in a speech at China's Belt and Road, as Russia shifts its trade eastwards in response to Western sanctions over the war in Ukraine as well as the Red Sea Corridor getting shut.

The route, made viable by the melting of Arctic sea ice due to climate change, runs from Murmansk near Russia's border with Norway to the Bering Strait near Alaska.




Tuesday

LAMU PORT, KENYA GEERING UP FOR MORE SHIPPING LINES

 


Kenya’s newest port, Lamu Port is anticipating more shipping lines to make use of the facility especially for handling goods destined for the northern parts of the country and neighbouring Ethiopia and South Sudan.

The port received its 44th ship Wednesday since launch in May 2021, MV African Swan with 7,300 metric tonnnes of relief food destined for Kakuma and Daddab refugee camps and areas affected by drought in northern Kenya.

Lamu Port South Sudan and Ethiopia Transport (LAPSSET) corridor Manager Salim Bunu said the operationalization of the facility is an important step towards opening up the northern region.

“Most of the northern parts of the country have not been developed properly because of poor road network. LAPPSSET as a corridor is meant to open up that region and the entire country so that all the counties participate in economic development,” said Bunu.

The port which is also used for transshipment of cargo has so far employed 100 locals to help in the offloading of ships, a figure which is expected to rise in the near future.

Besides direct employment, Lamu County has similarly seen explosion of economic activities in areas around the port such establishment of food outlets, fuel stations as well as increased local revenue from trucks using the facility.

“We have been handling transshipment containers since the beginning of the year. And we would like shippers to make use of the facility. Even those seeking to build cargo sheds and grain handling facilities can now invest in Lamu,” added Vincent Sidai, Lamu Port General Manager.

The cargo by the World Food Programme (WFP) from Djibouti includes sorghum, millet and yellow split cowpeas which are to benefit affected regions.

“This is the first time that we have brought food into Lamu Port. We are looking to this food to provide support to two of our operations within Kenya,” said Shane Prigge, WFP Head of Supply Chain.

CSSC SHIPPING HONGKONG POST BEST PERFORMANCE FOR 2022

 


The group’s fleet of 26 self-operated vessels achieved a total net profit of HK$632m last year, representing a substantial year-on-year increase of 117.3%, accounting for 36.32% of the group’s net profit.

According to CSSC Shipping, the company adopted an innovative cross-cyclical business model, seized the opportunities arising from the cyclical changes in the shipping market, continued to increase investment in clean energy equipment and segmented ship types with good market potential, properly responded to ship repurchases, and optimised asset allocation. By way of joint investment, joint leasing and other business models, the group built deeper relationship with upstream and downstream players. 20 new vessels were added to its fleet during the year, with a total contract value of US$1.51bn at record-high levels. 

The company saw 19 new chartered-in and operated vessels with a total contract value of US$669m in 2022, mainly including 11 bulk carriers, 2 container vessels, 2 pure car and truck carriers (PCTC), and one 100,000-tonne smart aquaculture vessel.

In 2022, the size of CSSC Shipping’s fleet was 158 vessels, remaining unchanged compared to the same period in 2021. Among these, 129 vessels were under lease while 29 were under construction. The average age of vessels in operation was approximately 3.2 years.

The company will continue to expand the marine equipment leasing and investment business this year so as to become a leader in the sector, said CSSC Shipping.