News

MEDITERRANEAN SHIPPING COMPANY (MSC) has announced that in order to preserve the existing comprehensive range of services between North America and Europe/Mediterranean and to advance freight rates towards a sustainable level, it has become necessary to implement a GRI effective from October 1.

*From Canada to NWC & UK rates will increase by $200 per 20′ and $ 300 per 40′

*From Canada to Scandinavia and the Baltic region rates will increase by $300 per 20′ and $400 per 40′

*From Canada to West Mediterranean rates will increase by $200 per 20′ and $300 per 40′

*From US to NWC and the UK rates will increase by $200 per 20′ and $300 per 40′

*From US to Scandinavia and the Baltic region rates will increase by $300 per 20′ and $400 per 40′

*From US to West Mediterranean rates will increase by $200 per 20′ and $ 300 per 40′

*From Mexico to NWC and the UK rates will increase by $ 200 per 20′ and $300 per 40′

*From Mexico to Scandinavia and the Baltic region rates will increase by $ 300 per20′ and $400 per 40′

*From Mexico to West Mediterranean rates will increase by $ 200 per 20′ and $300 per 40′

Also, a Peak Season Surcharge (PSS) of $250 per TEU for all cargo from any Asian port to any New Zealand port is effective as of September 15, B/L date.

HONG KONG’S Orient over seas container Line (OOCL has announced that freight rates from South-East Asia (Singapore, Malaysia, Thailand, Indonesia, Vietnam, Combodia, Philippines, the Indian Subcontinent and the Middle East) to Australia, will be increased by $300 per TEU from October 1.

OOCL said the increase was needed to “ensure the continued provision of high quality services and sufficient  capacity to cater for our customer requirement.”

….applies transatlantic trade GRI

OOCL will apply a GRI on transatlantic services with effect from October 1. The GRI will apply westbound and eastbound and be applicable to all container types as follows:

All cargo between Europe and the US, Canada and Mexico: $320 per TEU and $400 per FEU.

As part of the rate restoration programme announced at the end of 2009 on the Atlantic trades, Maersk Line has confirmed the implementation of its general rate increases (GRIs) for the fourth quarter (October-December). This includes cargo moving in both directions between the Us and Canada from /to North Europe, the Mediterranean and Black Sea.

The increases announced for October 1 will be $250 per 20′ dry and 350 per 40 dry and $500 per 40′ reefer for cargo moving in both directions between the US from/to North Europe; $250 per cent 20 dry and $350 per 40′ dry/reefer for cargo moving between Canada from/to North Europe; and $200 per container for cargo moving in both directions between the US and Canada from/to the Mediterranean. (Note: GRI for cargo moving between Mediterranean and the US/Canada is only effective from October 15).

Maersk Line has noted stabilisation in the Atlantic markets so far in 2010, but despite such partial rate recovery, the current market rates contine to be unsatisfactory. Maersk Line is experiencing increased costs as it is working to improve container availability during a period of general equipment short age, while keeping focus on maintaining high level of reliability in the broad Maersk Line service portfolio. Therefore, it continues to see the need to proceed with its already announced rate increases for the fourth quarter.

In the fourth quarter, Maersk Line will announce its 2011 full-year programme in advance in order to allow its customers to plan their shipments with full understanding of the expected rate levels required to sustain service in the Atlantic trades.

NEW DELHI, SEPT 6; Freight rates for dry bulk carriers could tumble near historic lows next year as new ships flood the market and iron ore demand in china weakens sources said.

However precious shipping which manages 21 dry bulk carriers and charges its customer on a daily basis is unlikely to be significantly impacted by the weakening freight market as it has already booked a quarter of its vessels through 2013. said Khalid Hashim, MD of the listed firm. The Baltic index, which gauges the cost of shipping dry commodities including iron ore, cement, grain, coal and fertiliser, has fallen around 10 pc so far this year, It traded at 2,713 points last Tuesday, up 0.04 pc or one point. ‘If you look at the index in historical terms, the lowest it hit was 554 points in the mid-80s, then it came down to 663 in Decemeber 2008, it could come to somewhere close to this type of number,’ Mr Hashim said ‘China is trying to slow down the real estate market because it is creating a bubble. That is going to have an impact on the dry bulk market,’ the 57 year-old executive said.

The company is trying to boost the number of its vessels to 65 by 2013 or 2014, after disposing of around 33 ships in recent years as part of its fleet renewal programme.

NEW DELHI, SEPT, 7: Soyameal exports in August rose sharply by over 38 pc to 1.7 lakh tonnes comparison to the same month last year, the Soyabean processors Association of India (SOPA) has said, The total export of soyameal, used mainly as animal feed, till August during the current oil year stood at 2.05 million tonnes against 3.04 million tonnes last year, down by 32.41 pc, it said.

The oil year runs from October to September. Soyameal exports during the current month, is expected to be higher vis-a-vis the same period last year, SOPA added.

Soyameal is obtained from crushing soybean, which is an important source of protein for people Earlier SOPA has projected a 30 pcdecline in India’s total soyameal exports in the current oil year ending September to 2.3 million tonnes dueto lower availability of soyabean for crushing. The country had exported 3.21 million tonnes of soyameal in 2008-09 oil year (october-September). In value terms, the exports stood at Rs 5,686 crore. Due to the lower crushing activities in the current oil year, exports of soyameal will remain low in the current oil year, SOPA Coordinator Rajesh Agrawal has said.

NEW DELHI, SEPT. 7: FRESH and Health Enterprise Ltd (FHEL), a wholly owned subsidiary of the container Corporation of India (CONCOR), is planning to procure about 9,000 tonnes of apples in 2010-11.

It has procured only 1,000 tonnes of apples so far this fiscal.

In 2009-10, FHEL had whittled down its apple procurement by 66 per cent from the targeted 8,500 tonnes because of crop failure.

FHEL has a 12,000 tonne controlled atmosphere storage facility at Rai near Delhi, It supplies apples to organised retailers in several metros.

‘Last year, the domestic apple prices were fairly high and it did not make financial sense for us to procure at such price levels to sell in the market in the off-season while competition from imported apples.

“We get an idea about the price of apples in the market during ensuing off season based on the apple prices prevailing in international market,’ Mr N.K. Jawa, chief Executive officer, FHEL, explained.

The company is also considering diversifying into procurement of other fruits such as grapes and oranges.

FHEL had registered a loss of Rs 9 crore last year, of which depreciation comprised about Rs 3.6 crore and interest cost Rs 3.8 crore.

SINGAPORE, SEPT.7: FREIGHT rates for dry bulk carriers could tumble to historic lows next year when new ships flood the market and iron ore demand in china weakens, a top shipping company official projected.

The Baltic index, which gauges the cost of shipping for dry commodities, including iron ore, cement, grain coal and fertiliser, has already fallen around 10 per cent so far this year.

It traded at 2.713 points on August 31, up by 0.04 per cent or one point.

He said that one of the biggest concerns for the industry was the weakening demand from china.

The chinese government imposed measures to slow down its overheated property market, which threatens to slash demand for iron ore.

SINGAPORE, SEPT 7; FREIGHT rates for crude and fuel oil tankers bound for Asia are expected to remain at the lowest levels even next week due to ample tonnage and limited demand, traders and industry experts said.

But rates for clean tankers, transporting gasoline, diesel and other fuel products may continue a two-month rally as traders anticipate strong winter demand in northern Asia.

Dirty tanker rates for VLCCs from West Africa to china traded at W56.70 down from W59 recently and within striking distance of this year’s low of w50, reached earlier this month.

Rates on global crude and fuel oil tanker routes have tumbled by around half in the last two months on an over supply of new tankers, which is expected to plague the market until 2012.

Traders also expressed concerns over slowing demand in Asia.

MUMBAI, SEPT. 7: THE Council of Supply Chain Management Professionals (CSCMP) is organising a panel discussion on Rotterdam Rules on September 10 From 5.30 pm to 7.30 pm at Xavier Institute of Management and Research, St Xavier’s College Campus, Mahapalika Marg, here.

The Director General of Shipping (DGS) and the Deputy DGS will moderate the discussion.

It is feared that the Rotterdam Rules will affect all those who issue Bill of Lading (B/L) and /or are shipper/consignee in the B/L.

CSCMP is a global body of professionals dedicated to the advancement and dissemination of research and Knowledge on supply chain management.

It has over 8,500 members representing nearly all industry sectors, government and academia from 67 countries and are the leading practitioners and authorities in the fields of logistics and supply chain management.

WITH widespread rains in August and the possibility of monsoon being more active in September, the  country is set to record a normal rainfall this year, as the gap has been narrowed down to just 1 per cent. Despite a lean patch in July, India Meteorological Department last week said that the country received 719.9 mm rainfall till September 1 against normal 724.6 mm, a shortfall of just 1 per cent. Heavy and well distributed rains after mid-July cut the 16 per cent shortfall till june end to 4 per cent at the end of July.

Of the 36 meteorological sub-divisions in the country, only seven received deficient rainfall since the start of the monsoon season on June 1 up to September 1. No division recorded scanty rainfall, while excess rainfall was registered in 13 sub-divisions, Sixteen sub-divisions had normal rainfall.

FOOD INFLATION RISES AGAIN

Food and fuel inflation shot up in the week ended August 13, 2010. belying the expectation that prices will soften gradually following a good monsoon, Food  price index rose at an annual rate of 10.86 per cent in the week, after declining for two straight weeks, data released last week revealed, It was marginally lower at 10.05 per cent a week ago Fuel price, too, inched up marginally to 12.71 per cent from 12.57 per cent the week before This has raised structural concerns about food inflation. which has remained high since last even when headline inflation number dropped to negative levels.

The yield on the benchmark 10-year bond ended at 7.98 per cent unchanged from the close of September 2, on September 3, indicating that the spurt in inflation has not altered monetary policy expectation with inflation still too high for comfort, the latest round of PMI data continues to point towards the need for gradual monetary tightening.

The HSBC India services PMI showed growth in the sector, though the index declined marginally to 59.3 in August 2010 from 61.7 in july 2010. A reading above 50 on PMI shows expansion.