CARRIER members of the Westbound Transpacific Stabilisation Agreement (WTSA) will raise the rates of US$160 per TEU and $200 per FEU for all dry cargo on all trade lanes with effect from October 1, according to a WTSA release.

WTSA said the westbound revenues have shrunk a great deal since the beginning of the year due to the slowdown of demand in Asia.



Its figures showed that the cargo volume of first quarter 2012 was 800,000 FEU, seeing a slight 3.5 per cent increase compared to the same period last year. "More recently, carrier bookings indicate that those volume gains have since narrowed over the summer, and freight rates have followed," said WTSA.



"The problem is that moving rates for many commodities have slipped to levels that no longer reflect the value of the service or make an adequate contribution to the round trip voyage," said WTSA administrator Brian Conrad.



"Carriers anticipate an upturn in the typically busy months ahead and feel a need to make up lost ground in terms of revenue," he said.



WTSA's membership lost Singapore's APL on September 1. The remaining nine member carriers include Cosco, Evergreen, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, NYK, OOCL and Yang Ming.

MEMBER ocean liners of the G6 Alliance have announced their decision to suspend their Loop 3 service between the Far East and Europe until further notice.

The reasons being the "forecasted lack of improvements in the market environment in the Asia-Europe trade", and the need to prepare for the "vessel maintenance schedule in the winter", a joint statement issued by G6 Alliance carriers said.



The last sailing for Loop 3 will be operated by the OOCL Hamburg, which is scheduled to depart from Shanghai on October 6. Thereafter, all ports will be covered by other services.



The release said member shipping lines will continue offering a variety of services between the Far East and Europe covering all major port pairs with weekly sailings. Meanwhile, "the market environment will be closely monitored for the resumption of the Loop 3 service accordingly".



The G6 Alliance members are APL, Hapag-Lloyd, Hyundai Merchant Marine (HMM), Mitsui OSK Lines (MOL), Nippon Yusen Kaisha (NYK Line) and Orient Overseas Container Line (OOCL).

CHINA Cosco widened last year's first half net loss to CNY4.87 billion (US$770 million) in the first six months of 2012 from the US$421 million the company lost in the corresponding period last year.

The company attributed the weak performance to shrinking dry bulk and container shipping demand.



Its container shipping unit, Coscon, posted an operating loss of CNY1.31 billion in the first six months of 2012, a deterioration from the loss of CNY947 million a year earlier.



The performance of its dry bulk shipping units was far worse, as they recorded a first half operating loss of CNY3.42 million.



Coscon's container liftings were up 17 per cent to 3.78 million TEU, with the Asia-Europe routes recording a 22 per cent increase.



According to Alphaliner, Cosco has taken delivery of eight 13,000-TEU vessels and six 4,250-TEU containerships since the beginning of 2011.

TAIWAN's Evergreen Line is boosting the capacity of its weekly feeder service in Libya, the LYS, by upsizing the two 1,150-TEU vessels initially used to operate the service, and launching a second loop.

Starting from September, the carrier will replace the two existing ships with two newly chartered and larger ships of 1,388-TEU, the Manolis P and the Olivia.



Furthermore, the carrier is launching an additional fortnightly feeder service, the LYS2, from September 26 that will connect Mersin, Beirut, Alexandria (Dekheila), Misurata and Tripoli, using one 1,150-TEU containership, the Austria.



Alphaliner said the first LYS feeder service started in January 2011, but was suspended a few weeks later owing to political unrest and violence in Libya. The service resumed in December last year, and a second vessel was added in April to provide more frequent sailings.

NIGERIA has signed a contract with China Civil Engineering Construction Corporation (CCECC) to build a US$1.4 billion railway linking its main coastal city of Lagos to its major northern metropolis of Ibadan.

The standard gauge double rail track is to run 160 kilometres and takes 36 months to build. It will allow for trains to travel at 150 kilometres per hour.



The modernisation project will provide a chance to improve the country's economic and social development and cause a "drastic reduction in poverty in the country", said Transport Minister Idris Umar.



The rail project, managed by CCECC Nigeria, will be partly financed by China Exim Bank in a concessionary loan facility of $1 billion, of which $500 million is under negotiation, and at least $500 million through funding from the Nigerian government.



The project will provide a chance to improve the country's economic and social development and cause a "drastic reduction in poverty in the country", said Senator Umar, reported London's Containerisation International.



The government's support is boosted by a turnaround in its port systems through private concessions which has transformed productivity and congestion problems.

EASTERN China's seaport of Lianyungang recently held an investment promotion campaign in Hong Kong.

A total of 19 projects were signed on the campaign, worth a collective sum of US$2.51 billion, according to Xinhua's report.



Liangyungang promoted 60 projects of logistics, harbour-front industries, urban development and other related fields. Key projects includes Jingangwan Logistics Park, a logistics and warehousing facility in Guanyun county, sea-river intermodal infrastructure and a petrol-chemical manufacturing facility.



Lianyungang governor Li Qiang said Hong Kong and Lianyungang have a lot in common and vast potential in cooperation on port, logistics and harbour-front industries. Hong Kong has been the largest foreign investor origin for Lianyungang and is also the first choice in Lianyungang's potential partners.



Hong Kong investors invested in 239 projects in Lianyungang from 2009 to 2011, entailing a sum of US$1.85 billion, taking up 55.8 per cent of Lianyungang's foreign investment total.

FROM January to July, Xinjiang recorded a road-transported import and export volume of 1.96 million tonnes, 13.6 per cent more than a year ago. Turnover volume of these cargo increased 24.5 per cent to 510 million tonnes per kilometre, Xinhua reports.

In the same period, road-transported inbound and outbound passenger dropped eight per cent to 381,300 persons. Turnover volume of these passengers jumped 59.4 per cent up to 112 billion persons per kilometre.



The region also recorded 116,600 inbound and outbound vehicles in the same period, falling 43.6 per cent over the same period a year ago.

CUSTOMS of Changsha, Chongqing, Wuhan and Shanghai have reached an agreement to simplify customs clearance procedures for transshipments and from these four regions.

Under the agreement, Hunan's Yueyang City is now permitted to join the new cooperation scheme and offer one-stop clearance service for transshipments. The move is bound to turn Yueyang's Chenglingji port area into another transshipment hub on the Yangtze River, said Xinhua.



Hunan started building Chenglingji port area in 2007. The project is divided into three phases with a total of 13 berths. The first phase cost CNY650 million (US$102.2 million) and occupies an area of 39.85 hectare with an annual capacity of 300,000 tonnes. It has three 3,000-tonne container berths and able to accommodate ships of 5,000 tonnes.



After the third phase has been finished in 2025, the port area's capacity will hit 880,000 TEU in terms of container and 10 million tonnes in terms of cargo tonnage.

INDIA's planning commission minister says an estimated INR800 million (US$14.4 million) of private investment will be required for implementation of various public private partnership (PPP) projects identified by Indian Railways.

The PPP projects will cover areas which include an elevated rail corridor, high-speed corridors, redevelopment of stations, logistics parks, private freight terminals, port connectivity, dedicated freight corridor, locomotive and coach manufacturing units and energy conservation, the daily Hindu's Business Line reported.



The projects identified include the INR200 million Mumbai-Ahmedabad high-speed corridor, the INR200 million elevated rail corridor between Churchgate and Virar in Mumbai, INR100 million for redevelopment of stations, the INR100 million dedicated freight corridor between Sonnagar (Bihar) and Dankuni (Bengal), INR60 million for energy projects, INR50 million for port connectivity projects, the INR30 million locomotive and coach manufacturing units, INR300 million logistics parks and INR28 million private freight terminals and other freight schemes.

THE South Carolina Ports Authority's board has approved expenditure of up to US$25 million to join Norfolk Southern Railway in developing an inland port near Greer for truck-rail transfer of containers for BMW and other port customers.

The port authority's board voted the sum of money for the project, in addition to $1 million authorised previously for engineering work in the site near a BMW auto plant. Norfolk Southern will invest $7.5 million in the inland terminal that is scheduled to open in September 2013.



BMW alone is expected to ship 20,000 to 25,000 containers a year to the inland port by rail from Charleston, relieving traffic on Interstate 26. Port officials, quoted in media reports, say cargo from other customers is expected to double that volume within the next few years.



The port authority acquired 100 acres at Greer in 1982 for possible development as an inland port, but the site has been largely dormant for the last 25 years. The port authority still owns about 30 acres at the site and plans to acquire additional acreage, reports say.

HONG KONG's Kerry Logistics is expanding its business portfolio by entering into the insurance sector through the acquisition of Taishan Insurance Brokers Ltd (TIB), which offers a full range of insurance brokerage and consultancy services in Asia.

TIB is a risk management and insurance consulting firm fulfilling a range of insurance requirements for both commercial and industrial sectors through customised products and solutions.



"This is a significant addition to the group and will provide our customers in the region with a broader range of insurance products and services. TIB will also enhance the coverage and competitiveness of the group's services," said William managing director of Kerry Logistics Network.

FREIGHT transport insurance specialist TT Club has collaborated with the Japan International Freight Forwarders Association (JIFFA) in the revision of its Forwarder's Cargo Receipt (FCR) form.

TT Club said in a statement that JIFFA initiative to introduce a new FCR Form has provided an ideal opportunity for the club to work with forwarders and share its own expertise and global experience on the topic.



JIFFA needed to revise its FCR to meet a demand from its members following the deregulation of freight forwarding. Ian Hyslop, legal consultant to the TT Club and Suki Kwan, Claims executive in TT Club's Hong Kong office, were invited to contribute to the revision.



The revised FCR, and an accompanying publication entitled, "Guide to Understanding JIFFA FCR", were launched at seminars in Tokyo and Osaka in July.



The FCR is a document designed for a specific use in contemporary freight forwarding. Essentially, it is a confirmation by a forwarder that it has received goods into its possession or control with irrevocable instructions to forward them to a consignee.



"The FCR can be a more flexible and cost effective solution to modern trade problems than a letter of credit or bill of lading - although it is designed to be used in conjunction with both of these as required. Astute use of the FCR can allow cargo to be consolidated, for example to meet 'just in time' requirements, or to be re-shipped en route while protecting the identity of the seller," the TT Club statement explained.

ROYAL Air Force New Zealand's (RAFNZ) is to build a new passenger and cargo terminal at cost of NZ$10 million to NZ$15 million (US$8 million) at its Ohakea Air Force Base, near Palmerston North.

The 5,750-square-metre terminal will be able to handle 250 passengers of defence staff and up to 750 people for the housing of customs, immigration and MAF border processes. The facility will provide in-flight meals supported by kitchens, aircraft catering and provisions annex with offices and toilets. It will boast arrival and departure lounges, baggage carousels and check-in desks.



Civilian passengers will be allowed in emergencies but it is unknown if this will ever be a permanent base for non-Defence flights and passengers, said Palmerston North Airport manager Darin Cusack.



In the past Ohakea base was used for emergency stop-offs leaving passengers waiting on the runway for lengthy times which was "highly embarrassing", said Rangitikei MP Ian McKelvie, reported the Manawatu Standard.



The Defence department has led the project as part of its five-year programme of essential infrastructure projects for the RNZAF and "to provide critical facilities required by the air force for the future", said Defence Minister Jonathan Coleman.



It comes hot on the heels of the opening of its Maintenance Support Squadron buildings which cost the government NZ$43 million.



The position of Ohakea places it as a significant airport for emergency supplies should Civil Defence disaster strike in Wellington, said the report.



Tenders for construction will be called in November with work to start early 2013 and to complete by year end.

ALASKA Air Cargo is to enhance service to Washington DC from Alaska on the back of increasing freight and business volumes between the west coast and east coast.

Alaska Airlines cargo arm transports 120 million pounds of cargo yearly with much of its Alaska seafood, which includes its Copper River salmon, plying the south at a total of 25 million pounds worth of shipments.



Northern shipments are focused on businesses including US Postal Service mail, personal packages and essentials for remote life in Alaska.



The carrier experienced increased salmon volumes for its Alaska-Washington via Seattle. Volumes on return flights are to increase following Shell Oil's permission to drill in Alaska's Chukchi Sea.



The carrier's managing director Torque Zubeck has forecast a good year ahead on the back of Shell Oil and Alaska's decision to explore extracting oil from North Slope's shale rock. "We're seeing lots of cargo moving through our warehouse to the North Slope, and we've even had inquiries about our charter freight services," said Mr Zubeck, reported Anchorage-based Petroleum News.



It has added several new destinations across the US that include Seattle and Kansas City in March, Philadelphia in June, San Antonio in September and rerouting Seattle-Miami flights to Fort Lauderdale to increase transits for passenger and cargo customers.



It provides flights to all four islands of Hawaii from Seattle rather than the primary route given by many of LA to Honlulu, said Mr Zubeck. "Our freight forwarders and other cargo customers like that," he added.



It will provide weekly seasonal flights directly from Anchorage to Kona, the Big Island, to its regular Seattle-Honolulu service, along with other seasonal flights to Maui, including a weekly flight from Bellingham, Washington, effective November.



"We serve the smaller markets for people who need to ship high-priority items. For what folks need, it seems to be working," he said.



By increasing capacity in retrofitting six Boeing 737-400s to replace its old 737-200 cargo fleet responds to a need for a US$100 million service upgrade. It will review further aircraft purchases by summer next year particularly the 23-24 aircraft of its 117 fleet it uses for Alaskan destinations.



The airline is looking to acquire a 737-900ER, capable of carrying a larger bellyhold and up to 181 passengers, suitable for transcontinental flights and Hawaii flights, said Mr Zubeck.



At its Anchorage airport base, the airline has acquired a new ULD system, also called an "igloo" or a standardised aircraft container which holds up to 6,000 pounds of cargo, to increase efficiency and the number of systems for loading and unloading to three.



Additionally, it is looking at remodelling its cargo-handling system in Seattle to allow for a "single pickup and drop off location" for customers.

THE British International Freight Association (BIFA) is urging its members to make sure that their procedures, when accepting consignments for shipment, are as tight as possible to avoid legal perils in shipping counterfeit goods.

The ongoing recession is fuelling the trade in fake products, said BIFA director general, Peter Quantrill. "Whilst freight forwarders, acting as an intermediary, must act in good faith when accepting consignments for shipment, they must also exercise reasonable diligence."



The European Commission recently published statistics showing that EC Customs detained almost 115 million items that were suspected of violating Intellectual Property Rights (IPR) in 2011, up on 2010's figure of 103 million.



In total 73 per cent of all IPR-infringing goods originated in China, and 26.6 per cent of all detentions were of products, which could be dangerous to the health and safety of the consumer.



In 2011, 90 per cent of all detained products were either destroyed or passed to courts to determine whether any infringement had occurred.



Previously, BIFA highlighted its opposition to European Commission (EC) proposals to make the carrier (which would include consolidators, such as its members) responsible for the costs of disposing of counterfeit goods that infringe IPR.



"A carrier should not be held responsible for the actions of another party over whom it has either limited or no control, Mr Quantrill said. "We believe it is the owner of the copyright or brand, which benefits from the destruction of the IPR-infringing items.



"But whilst the area of who bears the cost for destroying such goods remains undecided, our members need to be doubly vigilant," he added.