HONG KONG's Orient Overseas Container Line (OOCL) has announced a US$200 per TEU and FEU rate increase for all cargo from north Europe eastbound to Asian ports starting October 1.

"Currently, ocean freight rates continue to be below the required level to cover operating costs on our north Europe to Asia trade. Considering that the current levels are unsustainable for the long term, we are announcing a general rate increase (GRI), which will be applied to all cargo loading on and after October 1. Further rate restorations to be applied during 2012 will be announced in due course," said the company statement.

FROM January to August this year, sea ports in southeastern China's Fujian province lifted a total of 6.76 million TEU, 10.4 per cent more than in the first eight months of 2011, Xinhua reports.

Container throughput of Xiamen, the largest port in the province, increased 11.2 per cent to 4.48 million TEU. Fuzhou, the second largest port of the province, handled 1.17 million TEU, up 9.6 per cent.



In the same period, collective throughput tonnage of Fujian's sea ports grew nine per cent year on year to 265 million tonnes.



Xiamen's throughput tonnage climbed 6.9 per cent to 111 million tonnes, while Fuzhou's increased 10.8 per cent to 71.56 million tonnes.

GLOBAL freight forwarder and logistics provider, Damco, is relocating its headquarters from Copenhagen to The Hague scheduled for completion in the first quarter of next year.

The new location is intended to place the standalone forwarder closer to the heart of the European logistics community and supports its strategy to become a top five industry player in the years to come. Sibling company APM Terminals has also long sought to maintain a greater degree of separation in the public mind from its parent.



"In The Hague, we will be closer to many of our customers, our main air and sea carriers, Europe's biggest transportation hubs, as well as our competition and the kind of additional international logistics experience we'll be looking to hire as we continue to grow," said Damco CEO Rolf Habben-Jansen.



The moving process will start towards the end of the fourth quarter. "There are 150 positions in Damco's Copenhagen headquarters. Except for 75 positions that will remain in Copenhagen to continue handling IT functions, all positions are expected to be affected by the move," it said, without providing further details.



Damco recorded US$97 million EBIT in 2011, a fivefold increase from the 2009 result driven by strong business in Asian and African markets. By 2015, company aspires to achieve net revenue of US$5 billion.



"Our goals are ambitious and to reach them will require a combination of organic growth and selected acquisitions as well as strict attention to all of our costs. Only that will create the needed flexibility to invest when opportunities arise," said Mr Habben-Jansen.

NORTH China's Dongjiang Free Trade Port Area, the largest of its kind nationwide, has completed its Phase II and now operates on a six-square kilometre site, reports Xinhua.

The port area, boasting of having a customs-supervised district of the largest scale and openness in China, now has a total operation site of 10 square kilometres.



The port area's phase I was put into service in the end of 2007, afterwards China's first transaction of aircraft financial leasing business and vessel off-shore leasing business were conducted there. Currently, more than 416 enterprises have registered and settled in the port area.

THE Jiangsu provincial government has posted the latest logistics industry prosperity index, showing that it went up two points August to 55, indicating that business volume is growing, but with low prices and high costs, profit declines have not been reversed, Xinhua reports.

Jiangsu's August logistics business volume index was 61.3 per cent, up 4.8 percentage points from July. New order index was 52.6 per cent, 2.6 percentage points more than in July. Average inventory index was 57.9 per cent, going 1.9 percentage points up.



However, the province's logistics service price index dropped 1.4 per cent month on month to 46.62 per cent. This was the index's fall for the third month in a row. Core business profit index fell 0.5 percentage points to 51.13 per cent. Capital turnover shrank 0.8 per cent to 50.4 per cent. Core business cost was 67.7 per cent, though dropped 0.6 per cent over July, the pressure of cost remained heavy.



Logistics fixed asset investment climbed 0.5 per cent to 54.5 per cent. In the latest three months, this index had kept an increase of 55 per cent. Facility utilisation index was 56.8 per cent, 0.3 per cent more than in July.

EAST China's Anhui province plans to invest CNY4 billion (US$630 million) in building a new port called Anqing in the coming three years, reports Xinhua.

The new port will be composed of four port areas including nine operating areas. The port will be shaped as a regional central hub port integrating with multiple transport means at north coast of the Yangtze River's middle and lower reaches.

CHINA'S first heavy duty railway, connecting northern China's Shanxi province and eastern China's Shandong province, is expected to enter the track laying phase in mid-September, Xinhua reports.

The railway, designed for heavy loads, will run 1,260 kilometres from Shanxi's Luliang city to Shandong's port city of Rizhao and is expected to move 200 million tonnes a year.



The project entails an investment of CNY99.8 billion (US$15.77 billion) and expected to be finished by September 2014.

WESTPORTS Malaysia, formerly known as Kelang Multi Terminal Sdn Bhd, plans to boost its annual capacity by 2.5 million TEU following the completion of its new 600 metre wharf in Port Klang.

Westports CEO Ruben Emir Gnanalingam said he is confident of beating the 7.5 million TEU target for this fiscal year and a further 500,000 in 2013 with its 300-metre berth ready by January next year.



"We're also hoping to achieve nine million TEU once the 600 metre berth is ready by 2014," said Mr Gnanalingam reported Seatrade Asia Online.



Malaysia's premier port at Port Klang handles 64 per cent of the total container volume at Port Klang and year on year increased throughput by 600,000 TEU compared to 2011.

SINGAPORE's Bengal Tiger Line will commence a service from Krishnapatnam, the new privately owned port 180 kilometres north of Chennai on India's east coast starting September 20.

The service will rotate through Singapore, Port Kelang, Chennai, Krishnapatnam, Port Kelang and back to Singapore with the first sailing of the 2,741-TEU Cape Magnus scheduled to dock at Krishnapatnam on September 28.



Krishnapatnam began container-handling operations a year ago with a 650 metre quay and 13.5 metres alongside. It has 4,000 ground slots ashore and an annual capacity of 1.2 million TEU.



Hyderabad-based Navayuga Group, the port developer, recently took delivery of five super-postpanamax cranes, with a 23-row span and each capable of lifting 58 tonnes.

NO oil patches have been observed in Singapore Harbour since the cleanup of a spill started after the September 9 collision of a bulker and a gas carrier, according to the Maritime and Port Authority of Singapore (MPA).

The MPA said it will continue to monitor the waters closely and carry out any necessary cleanup. "Patrol and emergency response craft remain deployed at the West Jurong area to deal with any oil patches that may surface," said the MPA statement.



"The shoreline cleanup along Jurong Island's T-bund and along Tuas View Extension has also been completed. Most of the shoreline has been cleaned, with only small light stains left. The light stains will be removed tomorrow," said the MPA yesterday.



Some 14 vessels, two containment booms, oil recovery equipment, a harbour buster and more than 100 personnel were deployed at sea and ashore, said the MPA.



The MPA also expressed gratitude to the following agencies and companies for their help: Anthony Consultancy Services, JTC Corporation, the National Environment Agency, the Oil Spill Response Limited, Singapore Salvage Engineers Pte Ltd, Spica Services Pte Ltd, SVITZER Asia Pte Ltd, Tian San Shipping Pte Ltd, Universal Terminal (S) Pte Ltd and Veolia Environmental Services, Singapore.

CHEAP, but improperly trained armed guards have shot at, killed and wounded fishermen who were only suspected pirates, according to Switzerland's Marine Risk Management Ltd, whose CEO issued a demand that "disputable" security contractors be shut down by authorities.

There are 207 firms providing shipboard armed guards, of which fewer than 20 can be called "reputable", said Marine Risk CEO John Dalby, who is also a spokesman for the International Association of Maritime Security Professionals (IAMSP), a would-be licensing or classification body "offering" accreditation to "professionals able to demonstrate a high degree of professionalism, experience and able to abide by the IAMSP Code of Conduct".



Said Capt Dalby: "We now find ourselves in a situation where many are offering discounted rates - often 50 per cent of the scale being charged. Standards - never very high - are declining.



"Because of their illegal status there is little or no communication with the naval authorities, including coastguard, airborne and medical resources. They are also lacking the necessary logistical support and financial resources," he said of the competition.



"Unfortunately, this situation is exacerbated by shipowners whose only consideration is price, thus encouraging this damaging cost-cutting," he said.



But Captain Dalby said naval forces have "too few floating assets with too great an ocean to cover" while costing billions even at this inadequate level.



In terms of what can be done to remedy this situation is already in place, he said. "Regrettably, it is being largely ignored by governments, industry bodies, insurers and shipowners. "

THE British International Freight Association (BIFA) has raised concerns about a new proposal denying customs inspections prior to goods arriving at temporary storage sites (ERTS), warning such measures will only lead to longer clearance times and bottle necks.

The comments come ahead of BIFA's latest meeting with Her Majesty's Revenue & Customs (HMRC) to further discuss proposals covering the movement of goods to Enhanced Remote Transit Sheds (ERTS).



"The ongoing review of proposed arrangements for temporary storage/ERTS came about largely because of BIFA's lobbying against a Customs Information Paper issued in March 2011, which sought to clarify the rules governing the movement of goods entering temporary storage," said BIFA director general Peter Quantrill.



"There are in effect 12 proposals, many of which acceptable to the association and its members and some having a positive impact including increased facilitation for AEOs and more coherent ERTS authorisations.



"However, one element that BIFA has significant reservations about, which have been forcibly made to HMRC, is the fact that under the new proposals a routed entry cannot be submitted to customs prior to the goods physically arriving at an agent's ERTS.



"We believe that this would potentially lead to longer clearance times and increased operating costs, for our members.



"BIFA negotiates with HMRC on a variety of issues, and the aim is to create a platform that can be utilised after the implementation of the EU Customs Code, which is still in the process of finalisation.



"This is a complex matter where all parties are endeavouring to ensure compliance with customs regulations whilst simultaneously trying to facilitate legitimate trade. Whilst there are differences between ourselves and HMRC on this issue, both parties are actively seeking a mutually agreeable solution."

NIGERIA importers are calling for regulation of terminal operators to police the increasing number of arbitrary charges from concessionaires resulting in the high cost of goods and services.

This has made Nigerian ports the most expensive in the world as fees reap NGN817.2 million annually (US$5.17 million) from seaports with last year's containers reaching 817,246 TEU. Charges will raise NGN115.7 million on automobile transactions fees based on the rate of 231,423 cars imported in 2011. Dry bulk cargo is expected to produce NGN46.5 million to NGN12.9 million in annual revenue.



Before licensing concessions, importers paid a seven per cent port levy for infrastructure improvements, said National Association of Government Approved Freight Forwarders president Eugene Nweke. Now this is paid as a pay valued added tax (VAT) to Nigerian Customs Service, shipping companies and in some cases banks.



"To make matters worse, freight forwarders and importers are compelled to pay demurrage on containers for the numbers of days containers remain at the port, even when there is system breakdown caused by the service providers," Mr Nweke said.



Importers used to pay for terminal handling charges, container cleaning charges, manifest amendment upon request by an importer, container deposit (refundable) and container demurrage. But now this encompasses scanning fees, logistics for scanning to customs examination fees, labour charges, terminal handling charges, import delivery and shipping agency fees to documentation fees.



Port regulations should be established by a separate agency such as the telecommunication sector's National Communication Commission (NCC) to prevent tariff headings outside of approved charges, said Mr Nweke.



The problem is not new, said Nigerian Shippers' Council (NSC) executive secretary Adamu Biu, who said charges have been "spiralling since 1997" creating a skewered system where terms of tariffs are rarely abided by. Adding that a review was needed to devise a "harmonised tariff regime".



The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) hope to create NGN1 billion from cargo at seaports, airports and land borders. The CRFFN officers are to be dispatched to the ports in Lagos of Apapa, Tin Can Island and Lily Pond ports in Lagos to collect charges.



Nigerian federal government has given the green light to collection at charges of NGN0.15 kobo (Nigerian cent) per kilo for air cargo, NGN1,000 per TEU and NGN2,000 per FEU. The rates also include cars/jeeps, NGN500; trucks or a TEU, NGN1,000; trucks or a FEU, NGN2,000; general cargo, NGN3.50 per ton; and dry bulk cargo, NGN1 per ton.



CRFFN chief executive officer Mike Jukwe said use of cargo manifests will track compliance: "Only registered and inducted freight forwarders and accredited institutions are allowed to practice forthwith, or else, the hands of the law will grip and prosecute offenders."



Untaxed goods without necessary tariffs has flooded the market through land borders because of the cost to Nigerian importers, preferring to ship through neighbouring ports for goods such as cars, clothes, rice and frozen chicken.



A commercial regulator is a must, said Nigerian Ports Consultative Council chairman Otunba Kunle Folarin in order to avoid over-priced goods and services, but the job will not be easy.



"In a single invoice you find 20 activities listed and charged-discharging and offloading; offloading and loading; equipment charge; labour positioning for Customs examination; so many administrative charges; whereas all these charges can be articulated, they are related to a function."

HONG KONG's No 2 airport ground handler, Asia Airfreight Terminal (AAT) has posted a seven per cent increase in August air cargo to 58,985 tonnes year on year.

Export cargo was up eight per cent to 41,396 tonnes while August import volume was up five per cent to 17,017 tonnes, said the AAT monthly statement. But transshipments fell 29 per cent to 572 tonnes year on year.



From January to August 2012, the cumulative export tonnage hit 315,073 tonnes, one per cent higher than the same period last year. Imports for the first eight months were up three per cent to 140,849 tonnes. Again, cumulative transshipments were down, 51 per cent to 4,097 tonnes year on year.

AIR CHINA Cargo has started a new twice-weekly all-cargo service from Shanghai via Chongqing to Amsterdam. This will raise Chongqing airport's cargo flights to Amsterdam to four per week in addition to the existing twice-weekly service operated by China Southern Airlines, Xinhua reports.

The new service takes off every Tuesday and Saturday at 2350 hrs from Shanghai. After stopping over at Chongqing, it then takes off again at 0520 hrs and reaches Amsterdam at 1225 hrs local time.



There are more than 10 cargo carriers operating a total of 18 all-cargo lines to destinations including Liege, Luxembourg, Amsterdam, Kolkata and Singapore, offering nearly 40 flights to and from Chongqing per week.

INDIA is struggling to maintain its small market share of the country's air cargo market with 82 per cent being carried by foreign carriers - mainly in the bellyholds of passenger aircraft.

Even domestic cargo is mostly carried by foreign private carriers rather than state-owned Air India, which has seen its market share falling year to year from 20.2 per cent in 2010, to 18.6 per cent in 2011 and to 16.2 per cent so far this year. Cargo volumes also slipped in the last fiscal due to European economic woes.

CONNECTICUT wet lease firm Southern Air will accelerate the retirement of its 747-200s and lay off an unspecified number of employees, according to an email sent to Southern Air employees by CEO Dan McHugh and obtained by Atlanta-area Air Cargo World.

Declining demand, higher operating costs and increasing regulations were key factors at the firm that offers aircraft, crew, maintenance and insurance (ACMI), he told employees.



Mr McHugh said the company will reduce corporate debt and improve a capital structure inherited from the private equity firm Oak Hill Capital Partners when it acquired control in 2007. Oak Hill combined an existing air cargo holding, Cargo 360, into the Southern Air fold, said the report.



"Today, a significant level of our resources and infrastructure are devoted to running and maintaining the -200s. We now must realign our organisation to serve the new business model, including changes to our crew planning, and we will initiate select outsourcing of activities to better align our costs with the operating requirements," said Mr McHugh.



"As a result, we will begin reducing headcount in both line operations and headquarters staff. There will be direct staff reductions, as well as outsourcing of some activities, and we expect the majority of the changes to be in place by the end of the year."



Southern Air officials have also stopped the process of a possible relocation of the company's headquarters from Norwalk, Connecticut.



Mr McHugh outlined that these fleet adjustments highlight a new strategy, continuing its relationship with DHL Express and other companies, while searching out new partners.



"In order to make Southern Air stronger and operate more efficiently," he wrote, "we need transition from a high-maintenance, depreciated classic fleet, to a modern, efficient fleet operating in more reliable, low-cost, low-risk environments," he said.