ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) announced today the closing of an approximately $5 million Series B financing round in Sodyo Ltd., a developer of next generation scanning technology.
Sodyo’s next generation scanning technology creates highly functional offline to online (O2O) solutions that allows businesses to access information and understand their workflows, and enable online interaction with customers. Using customizable colorful markers, Sodyo’s Visual Code takes scan technology beyond the QR code to operate on any media (outdoor or indoor, print or digital, mobile or stationary), from much greater distances than with any other technology, scanning multiple markers at one time and under a wide variety of environmental conditions.
Proceeds of this investment are intended to further develop Sodyo’s technology and expand its implementation, including ZIMARK’s, a Sodyo-ZIM joint venture, dedicated to applying Sodyo’s scanning technology to the logistics sector and supply chain processes.
Eli Glickman, President and CEO of ZIM, remarked, “Sodyo continues to make important progress in developing its revolutionary scanning technology. Under the leadership teams at Sodyo and ZIMARK, the two companies have executed a number of successful POCs that demonstrate the potential this technology has to become the new global standard for scanning technology – with business uses and applications in various industries. We are excited to continue supporting Sodyo and ZIMARK and believe they hold potentially significant value for ZIM. Furthermore, we will continue to leverage our position within the startup ecosystem in Israel to identify other attractive innovative technologies and companies, complementary to ZIM’s core business, that can serve as growth engines for ZIM.”
Alon Raz, Sodyo’s CEO noted: “We are proud to have ZIM as a strategic partner and once again win their vote of confidence. ZIM’s global network and business expertise in verticals Sodyo is currently focused on, has already had a tremendous impact, and with this additional investment, we will be able to step up our efforts in making Sodyo’s groundbreaking scanning technology a worldwide standard.”
Source: ZIM Integrated Shipping Services Ltd.
Container shipping capacity between the Far East and the US East Coast has risen sharply from last year as shippers have shifted volumes towards the East Coast (USEC) and away from the West Coast (USWC) – and carriers have responded by adjusting their networks.
In the past three months (as of July 24th), capacity between the Far East and the US EC rose by 18.9% compared to the same period in 2021 (Source: Sea-Intelligence).
Over the 12-week period, the average capacity deployed by carriers on this trade was 210 000 TEU. Compared to the average weekly capacity in the same period last year, this is the equivalent of adding four 8 750 TEU ships a week.
In contrast, capacity deployed between the Far East and the USWC has fallen by 1.7% in the 12-week period, to an average of 310 000 TEU a week. In other words, there is still 100 000 TEU a week more sailing from the Far East to the USWC than there is to the USEC.
The share of capacity between the two has, however, been adjusted. Last year, in the three months ending 24 July, 66.1% of the capacity from the Far East to the US went to the West Coast. This year that share has fallen to 61.3%.
Looking at volumes shipped in May reveals a similar shift in the share between the two coasts.
The share going to the West Coast has fallen to 59.8%, with the share to the East Coast rising by 4.4 percentage points in May 2022 compared to May 2021.
Volumes from the Far East and the US East Coast are up by 11.9% year to date and were up 7.3% in May 2022 alone compared to the same time last year.
As many of these containers have been moved away from the West Coast to the East Coast, there has been a corresponding drop in volumes imported through the US West Coast from the Far East. These are down 8.0% year to date and were down by 12.8% in May alone compared to May 2021. Total imports from the Far East to North America have risen 0.9% year to date.
The shift in volumes has also led to a change in congestion around the two coasts.
Record high imports to the US East Coast have seen schedule reliability drop to 18.7% in June, indicating that fewer than one in five ships are arriving on time, according to Sea-Intelligence. Those that are arriving late have an average delay of 9 days.
Fewer ships arriving on the West Coast mean that even as onshore disruptions continue to pose huge problems, schedule reliability has in fact improved, reaching 24.8% in June, its highest level in over a year. However, this still means that three out of four ships are arriving late, clocking to an average delay of 9.9 days.
Source: Xeneta
Unionized workers aboard the decommissioned FPSO Petrojarl Foinaven have safety concerns about their last labor action. 50 workers are planning to go on strike while the Foinaven is under tow to Hunterston, Scotland, and union Unite accuses the operator of doing too little to ensure their safety during the voyage.
The workers aboard the Foinaven plan to go out on strike over the terms of their severance pay. Staff involved in the decommissioned platform’s operations will be laid off this month, and the union claims that shoreside employees of the operation are getting a much larger severance package.
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The trade union has slammed Altera, the vessel’s operator, for maintaining what it calls a ‘wall of silence’ over the safety of the 50 workers who intend to go on strike Friday. During the strike, Foinaven will be under tow from the Foinaven oil field west of the Shetland Islands to Hunterston, an industrial terminal on the Firth of Clyde. The FPSO is expected to reach the port by early next week.
Unite claims that Altera has refused to respond to safety concerns raised over the emergency services provisions for the vessel if it comes into distress or if a fire breaks out, as the workers will remain onboard while on strike. The workers include crane operators, electricians, deck crew and production technicians.
A fire incident onboard the Foinaven occurred in April, prompting the temporary evacuation of 30 nonessential staff.
“We remain deeply concerned for the safety of the crew during the tow, which is likely to involve around 50 people, for the Foinaven itself, the towing vessels and the wider environment should anything go wrong,” said Vic Fraser, Unite industrial officer.
Fraser said that Unite had asked Altera if it had been in touch with regulators and other parties involved in the tow – like Maersk, the towing provider – to make sure that all were aware of the implications of the strike.
Fionaven is owned by a Teekay subsidiary and operated by Altera on behalf of field operator BP. The oil major ended the contract for the vessel after suspending production from the Foinaven field in 2021.
The FPSO is set for decommissioning after decades of operations in the harsh environment west of Shetland. Following redelivery, Teekay will be responsible for its recycling, which will be carried out at an approved shipyard in compliance with UK regulations.
The Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam Authority have signed a memorandum of understanding (MoU) to establish the world’s longest Green and Digital Corridor to enable low and zero carbon shipping.
Signed by Ms. Quah Ley Hoon, Chief Executive of MPA, and Mr Allard Castelein, CEO of the Port of Rotterdam Authority at the Marina Bay Sands Convention Centre on the sidelines of the biennial World Cities Summit, the MoU will bring together stakeholders across the supply chain to realise the first sustainable vessels sailing on the route by 2027. The signing was witnessed by Mr S Iswaran, Minister for Transport and Minister-in-Charge of Trade Relations, Singapore, and Mr Ahmed Aboutaleb, Mayor of Rotterdam.
Singapore and Rotterdam are among the largest bunkering ports in the world, making them vital links on the Asian-European shipping lanes. While international shipping currently uses largely marine gas oil (MGO) and low-sulphur fuel oil, sustainable alternatives such as biofuels, including biogases, are increasingly being made available. Other alternatives such as synthetic methane, hydrogen, and hydrogen-based fuels including ammonia and methanol are in various stages of R&D for future trials and deployment.
Each alternative fuel has its own challenges relating to costs, availability, safety, and restrictions in range due to lower energy density compared to fossil fuels. To tackle these challenges, the two port authorities agreed to bring together a broad coalition of shippers, fuel suppliers and other companies to collectively work on potential solutions.
Beyond alternative fuels, the MoU also aims to optimise maritime efficiency, safety, and the transparent flow of goods by creating a digital trade lane where relevant data, electronic documentation and standards are shared. This will facilitate the seamless movement of vessels and cargo, and optimise just-in-time arrival of vessels from port to port.
Credits: Port Of Rotterdam
The port authorities will work with the Global Centre for Maritime Decarbonisation and the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping as action partners, as well as other industry partners across the supply chain, including bp, CMA CGM, Digital Container Shipping Association, Maersk, MSC, Ocean Network Express, PSA International, and Shell for a start. This will enable the Green and Digital Corridor project to raise investment confidence, attract green financing, and kickstart joint bunkering pilots and trials for digitalisation and the use of low- and zero carbon fuels along the route.
Mr S Iswaran, Minister for Transport and Minister-in-Charge of Trade Relations, Singapore, said: “Decarbonising shipping is an urgent climate action priority, which requires the collective efforts of the entire maritime sector. As a trusted global maritime hub, Singapore contributes actively to IMO’s efforts to make international shipping more sustainable, and global supply chains more resilient. This MoU with the Port of Rotterdam demonstrates how likeminded partners can work together to complement the efforts of the IMO. It will serve as a valuable platform to pilot ideas that can be scaled up for more sustainable international shipping.”
Allard Castelein, CEO of the Port of Rotterdam Authority, said: “Shipping is among the most important industries to decarbonise, owing to its large international reach and volume, which continues to grow. By bringing together parties across the supply chain along one of the world’s biggest trade lanes, we can enable carriers to switch to zero-carbon fuels and speed up the transition to more sustainable shipping”.
Ms. Quah Ley Hoon, Chief Executive of MPA, said: “This MoU further strengthens the strong partnership between Singapore and Rotterdam. It reaffirms Singapore’s commitment towards facilitating a multi-fuel bunkering transition as part of the Maritime Singapore Decarbonisation Blueprint 2050, and accelerates our digitalisation efforts to optimise maritime efficiency and improve supply chain resilience. The pilot will complement efforts undertaken by the shipping industry, including partners such as Google Cloud, and the IMO to support decarbonisation and digitalisation transition for international shipping, as we work towards developing and scaling up green and digital solutions for wider adoption.”
Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping, said: “The Singapore-Rotterdam Green Corridor is fully in line with our strategy to accelerate the decarbonisation of the maritime industry by supporting first movers. We need bold projects like this to leverage the learnings and further develop green partnerships across the value chain. Connecting globally leading partners around one of the major trade-lanes will allow us to demonstrate concrete, scalable decarbonisation solutions that can inform and inspire industry as well as policy makers around the world.”
Professor Lynn Loo, Chief Executive Officer of Global Centre for Maritime Decarbonisation (GCMD), said: “International shipping will have to deploy at least 5% zero-emission fuels in its fuel mix by 2030 for the sector to meet a Paris-aligned net-zero target. To this end, green corridors provide a framework to harmonise standards and regulations, increase green fuels availability and strengthen their supply chains, and attract green financing for bunkering infrastructure buildout at ports involved. GCMD is excited to be an action partner in the development of the world’s first green and digital corridor. We will operationalise meaningful route-base, port-to-port pilots along this green corridor to help international shipping navigate and accelerate its transition towards a zero-carbon future.”
The 12-metre vessel, which had set sail from Portugal’s capital Lisbon, sent out a distress signal late on Monday evening from the Atlantic Ocean.
Spanish coastguards found the upturned boat, but the sea was too rough to rescue him – so the sailor had to wait until morning.
The man’s survival was “verging on the impossible”, said coastguard divers.
His boat sent a distress signal at 20:23 local time on Monday, 14 miles (22.5 km) from the Sisargas Islands, near Spain’s north-west Galicia region.
A rescue ship carrying five divers as well as three helicopters set off to find and rescue the man, who has not yet been named.
A diver was winched onto the ship’s hull to seek signs of life and the man responded by banging from inside.
The sea was rough and the sun had gone down, so the rescue team attached buoyancy balloons to the boat to stop it from sinking and waited until morning.
The next day, two divers swam under the boat to help the sailor out, who they found wearing a neoprene survival suit and submerged in water up to his knees.
The man then jumped into freezing water and swam under the boat towards the sea’s surface.
In a tweet, Spain’s Maritime Safety and Rescue Society said: “Each life saved is our biggest reward.”
The Maritime & Port Authority of Singapore (MPA) has concluded its investigation the sale of bunker fuel which contained high concentration levels of Chlorinated Organic Compounds (COC) and it said previously was sold to around 200 ships in March by Glencore and PetroChina. Around 80 ships reported engine, fuel pump and other issues.
The contaminated Heavy Fuel Oil (HFO) was loaded at the Port of Khor Fakkan, United Arab Emirates (UAE) onto a tanker and shipped to floating storage facilities in Tanjung Pelepas, Malaysia to be further blended. It was then delivered to Glencore’s storage facilities in Singapore where part of the cargo was sold to PetroChina.
Releasing its conclusions on Wednesday MPA said it found no evidence Glencore or PetroChina had intentionally contaminated the HFO.
However, it was discovered that fuel tests on the HFO carried between 21 – 23 March carried out by a laboratory engaged by Glencore contained concentrations of COCs that ranged from approximately 2,000 ppm to 15,000 ppm. While not part of standard ISO 1827 tests such high levels of COCs are also unusual in bunker fuel.
The authority said: “MPA’s investigation found that despite this, Glencore continued to supply bunkers blended with the fuel purchased that was contaminated with high levels of COC to vessels in the Port of Singapore from 22 March 2022 to 1 April 2022.
“By doing so, Glencore contravened the terms and conditions of its Bunkering Licence (Bunker Supplier) in failing to ensure that no bunkers supplied by it were contaminated.”
In that period a total of 24 vessels were supplied with contaminated fuel by Glencore and at least three vessels reported issues with their fuel pumps and engines as a result.
For breaching its bunkering licence the MPA is suspending Glencore’s license for two months from 18 March.
“MPA has also asked Glencore to improve its internal procedures to ensure that prompt action is taken in future when it becomes aware of, or reasonably suspects, any irregularity in fuel quality,” the authority said.
The MPA is not taking any action against PetroChina which it said promptly stopped supplies of the fuel by 19 March after its own tests showed it was contaminated with high levels of COCs.
The port authority stressed it takes compliance with the bunkering regime seriously. “MPA has reminded all licensed bunker suppliers to adhere strictly to the terms and conditions of their licences. MPA takes a serious view of contraventions of the bunker supplier licence terms and conditions, and will not hesitate to suspend or cancel the relevant licences, where necessary,” it warned.
The largest bunkering port in the world Singapore bunker sales were 50.04m tonnes in 2021, of which 49.99m was fuel oil.
The Baltic Exchange’s main sea freight index dropped to its lowest since February on Wednesday, extending its decline to the eighth day, on lower demand across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 86 points, or 4.7%, to 1,731 points.
The capesize index dropped 181 points, or 9.2%, to its lowest since April 21, at 1,790 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,505 to $14,842.
“A 22.8% decline was reported during the past five days for the Capesize sector as both the Atlantic and the Pacific region faced limited requirements against a built-up of open tonnage,” shipbroker Intermodal said in a weekly note dated Tuesday.
Dalian and Singapore iron ore futures fell on Wednesday as a crisis engulfing property developers in China, the world’s top steel producer, outweighed improving margins at mills.
The panamax index was down 21 points to 2,005 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $188 to $18,047.
The supramax index fell 61 points to 1,805 points.
Source: Reuters (Reporting by Kavya Guduru in Bengaluru; Editing by Vinay Dwivedi)
Maersk reported an underlying EBIT of $8.9bn for the second quarter but behind the 15th consecutive quarter of on-year earnings improvements, there were signs of change.
Profitability in the group’s ocean segment rose “significantly” compared to Q2 2021, as softening volumes and shot-term rates were comfortably offset by higher contract rates.
Loaded volumes fell 7.4% from 3.3m feu to 3.1m feu while the loaded freight rate bolted 64% from $3,038 per feu to $4,983 per feu., “, driven by both contracts and shipment rates on routes from Asia to Europe and to North America.”
The firm’s results back analysis from Xeneta late in July, which claimed spot rates were weakening and contract rates were well up on-year and on pre-pandemic levels. What may prove crucial for Maersk and the sector is Xeneta’s forecast that a slowing in contract rate increases points to an imminent peak.
With current freight increases locked into the longer-term contract sector, any approaching drop in earnings will be spread over a longer period of time. Contract negotiations may present even more of a gamble than usual to shippers—pay a premium for the relative security of contracted volumes, or take a risk on cheaper spot rates at a time when supply chain disruption lingers.
Maersk’s results show another underlying issue for the sector which could prove troublesome should rates soften – rising costs. Total operating costs in the Ocean segment rose 18%; average bunker costs rose 74% from $475 per tonne to $827 per tonne. The cost increase translated to a 14% increase on a fixed bunker basis to $2,327 per feu. Average capacity for the Maersk fleet rose 4.1% to 4.3m teu.
As Xeneta CEO Patrik Berglund commented in late July: “The signs are clear there is a ‘shift’ in sentiment as some fundamentals evolve… It’s going to be an interesting few months ahead.”
AP Møller Mærsk CEO, Søren Skou, said of the group’s results: “Volumes in Ocean were softer as congestion continued and the war in Ukraine weighed on consumer confidence, particularly in Europe. However, in Logistics we grew volumes above the market as our Ocean customers continue to buy into our value proposition, resulting in organic revenue growth of 36%, notching up the 6th quarter in a row of more than 30% organic growth.”
The annual awards ceremony and reception was held at the Tanglin Club after a two-year enforced break due to the pandemic.
Speaking to attendees Capt Subhangshu Dutt, Chairman of ICS – Singapore branch, put the events of the last two years into a wider historical perspective. “So, the Institute is 120 years old now. And it has witnessed two world wars, a few pandemics, blockades, trade embargoes, sanctions, calm winds, moderate weather, severe storms, but always emerged unscathed.”
Guest-of-Honour for the occasion was Quah Ley Hoon, Chief Executive of the Maritime & Port Authority of Singapore (MPA), who stressed the importance of developing maritime talent and the key role that ICS plays in this.
The institute covers not just shipbroking, but all aspects of shipping, with awards presented for 16 different categories, as well as best overall student.
Maersk told Seatrade Maritime News that it could not publish full details of the fatalities, but that they comprised three Maersk employees and three third party employees working on Maersk premises.
The third party contractor fatalities all occurred in Los Angeles; two truck drivers and one crane mechanic died at a terminal belonging to APMT.
Two Maersk colleagues died in a ferry incident in Tangier, said Maersk. The colleagues both worked for Svitzer. The sixth fatality occurred in Indonesia during a road traffic accident on a journey between port and warehouse.
“The sad cases are of course all under investigation to derive learnings and prevent repetition respectively in some cases this has been concluded already,” a spokesperson told Seatrade Maritime News.
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