Smaller ports pip major ones in cargo traffic growth, share rises to 42 percent
Non-major ports are gradually eating into the share of major ports in cargo traffic. Between FY12 and FY18, the share of total cargo traffic held by the non-major ports has risen from 39 percent to 42 percent.
In the comparable period, major ports have had their market share shrink from 61 percent to 58 percent. A report by the Indian Brand Equity Foundation (IBEF), a trust formed by the Ministry of Commerce, says non-major ports are evolving faster than their major counterparts, and are gaining market share as a major chunk of the traffic has shifted to them. Private ports have also scored over major ones in attracting imported crude traffic. At the end of 2016-17, the non-major ports handled 191.5 mt of liquid cargo including crude oil imports, surpassing 158.3 mt of major ports. Data by the Ministry of Shipping shows the non-major ports handled 485.33 million tonnes (mt) traffic in 2016-17.
Replacing Iran’s lost oil supply a boon for supertanker fleet
Higher OPEC oil production and longer voyages are propelling shipowners back to good times. Just a month ago, hiring a supertanker for the benchmark Middle East Gulf-to-China route cost about $18,000 a day. That almost tripled to more than $51,000 a day this week, the highest level since at least early 2017. The surge has come as the ships that can haul 2 million barrels across the oceans are heavily utilized, with Chinese demand healthy and the Organization of Petroleum Exporting Countries and allies increasing output ahead of imminent curbs on Iranian exports.
Trade tariffs could push shipping to the edge
Trade tariffs between the US, China and Europe add to the problems confronting the global shipping industry, which was already struggling this year with weak demand and high fuel prices.
Container ships, which move $4 trillion worth of products each year, are suffering from weak freight rates, owing to a glut of boats in the water. Despite consolidation that has left the market dominated by a handful of players, companies have recently issued profit warnings, suspended some sailings and scrapped a planned IPO.
Asia’s iran oil imports hit 32-month low in September
Imports of Iranian crude oil by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of upcoming US sanctions on Tehran, government and ship-tracking data showed.
China, India, Japan and South Korea last month imported 1.13 million barrels per day (bpd) from Iran, according to the data, down 40.9 percent from a year earlier. This marks the lowest imports since January 2016, right before the previous sanctions targeting Tehran’s nuclear programme were lifted.
CMA CGM levies low-sulphur surcharge on Europe-Asia
French shipping giant CMA CGM will levy a low-sulphur fuel surcharge from November 15 for all containers shipped from Europe to Shanghai and Ningbo.
Since October 1, China has mandated carriers calling at those two ports to switch to fuel containing a maximum 0.5 per cent sulphur content, thus a US$20 per TEU surcharge will be applied on cargo from north Europe. Next January, the sulphur limit will be applicable to other ports across China, and CMA CGM has warned shippers to expect a separate announcement regarding container shipping for the headhaul Asia-North Europe trade.
India’s coal imports surge on domestic short-supply
Shortage of thermal coal supply in India has pushed imports up to 85 million tonnes (mt) in the first half of the current fiscal compared to 75 mt logged in the same period last year.
In fact, imports by non-regulated sectors such as cement, aluminium and steel accounted for about 68 per cent of the incremental thermal coal imports during the period. The rise in imports comes when Coal India has achieved a double-digit production growth of 10.6 per cent in the first half of the fiscal, a feat which has not been seen in recent history.
Hong Kong’s oil sales up 7pc to us$1.55 billion
Hong Kong’s Orient Overseas (International) Ltd (OOIL), now a Cosco unit, and parent of Orient Overseas Container Line (OOCL), has posted a third quarter seven percent year-on-year sales increase to US$1.55 billion with revenue per box rising 0.01 percent. Quarterly loadable capacity rose 3.9 percent year on year while volumes increased 6.3 percent in the first nine months with year-to-date sales rising 8.7 percent with revenue per box up 2.3 percent.
The global iron ore market has a junk problem
The global iron ore market’s junk problem just got worse. China’s push to clamp down on pollution is giving extra impetus to the use of scrap in steel-making, strengthening a long-term trend that sees mills in the top producer progressively favor recycling over the raw material.
While China is the world’s top iron ore importer, taking cargoes from Australia and Brazil, mills in the country have been steadily raising the amount of scrap they use as the nation’s stock of junk increases, with more buildings torn down and appliances jettisoned.