HAINAN PO Shipping (HPOS) is expected to exit the transpacific trade at the end of November, ending its 27-month involvement on the Far East-US trade lane.

The state-owned carrier, established by the Hainan Yangpu Economic Development Zone in January 2009, first entered the transpacific trade in August 2010, offering its China-America West Coast Express (CAE) service using five ships of 2,700 to 3,500 TEU.



It was joined by TS Lines in November 2010 when the latter became a vessel provider on the CAE. By December 2011, the HPOS/TSL service was scrapped and TS Lines left the trade.



HPOS continued to offer Far East-US services through slots on CSCL's America-Asia Container (AAC) service, with a weekly round-trip allocation of 800 TEU from December 2011. This was supplemented by 300 TEU weekly on Cosco's transpacific service from February to April 2012.



"HPOS also offered several ad-hoc transpacific sailings this year in an unsuccessful attempt to revive its own service and maintain its status as a VOCC. The last HPOS transpacific sailing with its own ship occurred in July," reports Alphaliner.



"With the slot agreement with CSCL due to expire on December 5, HPOS will not be able to maintain transpacific tariffs filed with the FMC from November 29, and is therefore expected to discontinue its services to the US from that date."

FROM January to September, eastern China's port of Qingdao recorded a container throughput of 10.88 million TEU, up 11 per cent year on year, Xinhua reports.

In the same period, the port's overall tonnage increased 8.6 per cent to 308 million tonnes.



The port is aiming at a container throughput of 14.5 million TEU and 400 million tonnes over all by the end of the year.



Qingdao has signed cooperation agreements with some of the world's top 500 enterprises and China's top 50 this year, such as Royal Vopak, China Merchants and Cosco Pacific. This will help to further boost the port's business.

MARSEILLE's CMA CGM has taken delivery of its first 16,020-TEU newbuilding, the CMA CGM Marco Polo, now the world's biggest containership, demoting Maersk's E-class vessels from the front rank.

Next June the situation will again be contested when the mighty Danes return with the launch of their EEE-class ships, which will be able to carry 18,270 TEU, notes Alphaliner.



The 395-metre-long and 53.6-metre-wide Marco Polo was built by the DSME shipyard at Okpo, and two more vessels of the same class are scheduled to join the French shipping line's fleet in April 2013.



The three ships were originally part of an order for eight 13,830 TEU units ordered by CMA CGM in July 2007. By 2011, the carrier upgraded the size of the last three ships on order to 16,000 TEU, with two more 40 bays and one additional row of containers added to the original design.



The scramble for bigger ships is not losing steam despite the ever louder warnings about overcapacity in the container shipping market amid a slowing global economy.



Yang Ming is ordering five new 14,000-TEU containerships for delivery in 2015, with an option for five more ships. This has triggered the process of selecting leasing companies or non-operating owners to finance them, said the Alphaliner report.



Yang Ming's largest vessels to date are 8,500 TEU units, although its CKYH alliance partners, Cosco and Hanjin, already operate 13,000 and 14,000 TEUers. This leaves "K" Line as the only main east-west carrier with no immediate plans to deploy ships of more than 10,000 TEU. The Japanese carrier's largest ships are 9,500 TEU units.



UASC is also reported to be in discussions with shipyards for ships of 16,000 TEU, while CSAV are seeking to order ten 9,000-TEU ships.



CCNI is also believed to have secured two 9,300 TEU newbuildings from the Hanjin Subic shipyard under a long-term charter arrangement. CCNI's largest operated ships are 4,600-5,800 TEU units.



"These new orders will add to the existing orderbook of 3.5 million TEU, of which almost two million TEU expected to be delivered by the end of 2013. The supply growth in 2013, currently estimated at 9 - 9.5 per cent after adjusting for anticipated slippage and scrapping, is expected to be the industry's most daunting challenge next year," the report said.



By 2015, 16 carriers will operate containerships of more than 12,000 TEU, compared to nine carriers at present.

DUBAI based global port operator, DP World, has posted 4.6 per cent growth in container throughput in the first nine months of 2012 to 42.4 million TEU, up from 40.5 million TEU handled in the corresponding period last year.

A report by Gulfnews said DP World handled 14.2 million TEU across its portfolio of container terminals in the third quarter, which was one per cent lower than the same period in 2011. This was attributed to the divestment of three joint venture terminals and a decline in volumes in Europe, Middle East and Africa region. Like-for-like gross container volume growth was 0.5 per cent.



"Gross container volumes have continued to grow 4.5 per cent in the first nine months of the year driven by strong growth across the Americas, Asia Pacific, Middle East and UAE region," the company said in a statement.



The UAE region handled 3.4 million TEU in the third quarter. This increased its volumes 4.6 per cent in the first nine months of 2012 year on year.



The portfolio of consolidated terminals reported a 0.7 per cent decline in volumes in the third quarter as the Asia Pacific, Indian subcontinent, Europe, the Middle East and Africa reported a small decline in volumes.



For the first nine months of the year, container volumes across the group's consolidated portfolio increased 3.4 per cent compared to the same period last year, if the terminals in Australia had not been deconsolidated from March 12 2011, the report said.



Said DP World chairman Ahmad Bin Sulayem: "These recent divestments allow us to recycle cash into projects already within our pipeline, such as Jebel Ali (UAE) and London Gateway (UK) and, over time, to invest in new opportunities in line with our strategy, while maintaining balance sheet strength and flexibility."



DP World operates 60 terminals on six continents, with container handling accounting for 80 per cent of its revenue. The company also has 10 new developments and major expansions underway in nine countries.

ASSOCIATED British Ports (ABP) has awarded a GBP26 million (US$41.7 million) contract to Liebherr to manufacture four new ship-to-shore gantry cranes as part of its redevelopment of container berths 201/202 at the Port of Southampton.

The berth and cranes will enable Southampton's container terminal, a joint venture with terminal operator DP World, to continue to handle the growing number of ultra large container vessels.



The GBP26 million crane contract is part of an announcement made in September that ABP would invest a total of GBP150 million in developing the container terminal to assure the long-term future of container handling at the Port of Southampton.



The investment project will allow the reconstruction of berths 201/202 which will combine the two into a new fourth berth so the container terminal can continue to service four of the largest container ships simultaneously, a statement from Associated British Ports said.



Capable of handling 16,000+ TEU vessels, the quay will be 500 metres in length with a 16-metre draft alongside, which will add 600,000 TEU in capacity to the terminal. The investment includes capital dredging to widen and deepen the channel access into Southampton, to take advantage of the 17 hours of rising and high tide.



Following construction at Liebherr's factory in Ireland the cranes will be shipped to Southampton in component form before being assembled on site. Once operational, the cranes will be able to handle mega vessels 24 containers wide and will have a lift capacity of 65 tonnes. The four new cranes will be supplemented by a fifth similar Liebherr crane, which will be relocated from Southampton's existing container berths.



Doug Morrison, ABP port director Southampton, said: "The number of large vessels in operation has increased considerably in recent years, and we are now seeing regular calls by 13,000-TEU vessels. It's imperative that we have state of the art cranes on our new berth to allow short turnaround times for these vessels."



Chris Lewis, managing director, DP World Southampton, added: "Having this new infrastructure capability is vital and underscores Southampton's position as the first and last deep-sea port of call in Northern Europe for the Far East, with its sheltered location, first-class road and rail distribution links to the Midlands and market-leading service and productivity."



After the new cranes are delivered and assembled on site, the new berth is expected to be operational in early 2014. The Port of Southampton is home to the UK's second-largest container terminal handling more than 1.5 million TEU each year.

THE UK Port of Liverpool is expected to become a logical and more direct call for large ships entering or passing through Europe, from Panama, especially, once the widened Canal is opened in 2014.

The larger ships will then be able to pass from Asia through the Pacific Ocean into the Atlantic.



Liverpool's new deep sea 'Liverpool 2' container facility will be capable of handling the large vessels serving this trade. The new will enable the handling of up to 1.5 million TEU when it is completed in 2015. In addition to being well placed to serve the heavily populated North England, Liverpool is a natural hub for Ireland and Scotland, and has good feeder links to northwest Europe.



The Chinese export market is crucial to the UK, with the UK container market as a whole constituting 70 per cent of imports from the Far East.



Traditionally most Far East container imports landed at ports in the southeast of England, but the supply chain is expected to shift in the future.



The Port of Liverpool is also a major and growing UK gateway for goods exported from India. With rising inland transportation costs and CO2 emissions will mean that Liverpool port will be a greener and much more cost-effective solution.



Mumbai-based Ravindra Gandhi, director of Hans Maritime Services Pvt Ltd, who represents the Port of Liverpool in India said: "Around 60 per cent of current trade from India to the UK ends up within 150 miles radius of the Port of Liverpool. Its central position in the UK offers significant cost savings as well as the added environmental benefits of a more efficient supply chain."

The second annual meeting of Xijiang Port Alliance recently accepted two new members, Cosco Logistics and Foshan Beads Silver Ltd, to join the now 17-member group in Yunfu Guangdong province<, reports China Securities News.

Xijiang is the Pearl River's main stream across south China's Guangdong and Guangxi province.



Members of the alliance have jointly launched 14 Xijiang fast vessel services to Wuzhou, Guigang, Xiaotang Foshan, Shunle, Xiaolan Zhongshan, Xinhui and Yunfu and opened eight coastal domestic trade container lines to Haikou, Rizhao, Xiamen, Dalian, Lianyungang, Taicang, Ningbo and Tianjin.



Yunfu New Port moved 1.20 million tonnes cargo with an increase of 28.27 per cent year on year and container throughput posted a 34.6 per cent increase to 60,200 TEU.



Guangxi Wuzhou port Dalikou terminal project will build two 1,000-tonne multipurpose vessel berths, and which will contribute to the development of Xijiang logistics system in the future.

THE monthly consumer confidence rating has the Conference Board Consumer Confidence Index rise again in October to 72.2 from 68.4 from the month before, hitting a five-year high.

The survey showed that it was buoyed by improvements in the jobs market, which is seen as an important barometer for the health of the US economy as consumer spending accounts for 70 per cent of economic activity.



"Consumers were modestly more positive in their assessment of current conditions, with improvements in the jobs market as a major driver," said Conference Board's Lynn Franco, according to London's Containerisation International.

PANALPINA Group has reported mixed results for the third quarter of 2012, with gross profit increasing by seven per cent year on year to CHF379 million (US$403 million).

The result was driven by a solid performance in logistics and ocean freight, but it was negatively impacted by a weak performance in air freight. This was the highest quarterly gross profit in almost two years.



Gross profit for the first nine months of 2012 amounted to CHF1.1 billion, up 1 per cent. Third quarter EBITDA came in at CHF18 million.



"Ocean freight continued with historic record volumes and our investments into logistics have clearly started to pay off as more and more customers entrust us with value-added logistics services. On the other hand, our performance in air freight was disappointing," said CEO Monika Ribar.



The group's net forwarding revenue in the third quarter increased 10 per cent year on year to CHF1.7 billion.



The Americas region (formerly North America and Latin America) recorded the highest quarterly gross profit (CHF119 million) in this region in almost four years. In the EMEA region, weak imports were partly offset by strong exports, resulting in a quarterly gross profit of CHF183 million. Gross profit in Asia Pacific decreased year-on-year to CHF78 million due to declining exports to Europe. The group's gross profit margin decreased slightly to 22 per cent in the third quarter, a group statement said.



Further market share gains in ocean freight led to the highest quarterly and year-to-date volumes ever in the groups history. For the first time, the group forwarded more than one million TEU in the first nine months of the year.



Volumes in the third quarter were up five per cent compared to the previous year. Gross profit per TEU of ocean freight increased six per cent year on year and improved quarter-on-quarter as the carriers' rate increases were passed on to customers in the third quarter. Gross profit in ocean freight reached CHF122 million in the third quarter.



The air freight volumes decreased by eight per cent compared to the previous year. Europe-related trade lanes were hit hardest and particularly customers in hi-tech, telecom and chemicals shipped significantly less by air. In addition, the trend towards smaller shipments was accentuated. Gross profit per ton of air freight increased by four per cent year-on-year and remained stable quarter-on-quarter. Gross profit in air freight amounted to CHF158 million in the third



Looking ahead, Panalpina said it expects the air freight market to contract by 3-4 per cent for the whole year. In ocean freight, a market growth of 2-3 per cent is expected.

HEXAGON group companies Sisgraph, a Brazilian software and services provider, and Intergraph have teamed up to form a Marine Excellence Centre in Rio de Janeiro to meet the needs of the expanding marine industry in Brazil.

Sao Paulo-based Sisgraph has been a provider of Intergraph solutions in South America for more than 30 years.



The new Marine Excellence Centre opens with a team of expert engineers and consultants to provide technical support and training for Intergraph SmartMarine 3D technology. SmartMarine 3D is the world's most advanced offshore and shipbuilding design solution, featuring breakthrough engineering technology that is knowledge-based and rule-driven to improve productivity and delivery schedules.



"The Marine Excellence Centre initiative fills a very important gap in our country, which is to capacitate the work force of Brazil's expanding marine industry," said Laelson Martins, manager of Petrobras, one of the world's largest energy companies.



The centre also will provide technical workshops throughout Brazil and cooperate with the country's universities and technical schools to produce qualified students with an opportunity to learn using the latest Intergraph and Sisgraph technologies.



Sisgraph's Marine Excellence Centre mission includes disseminating and extending knowledge about the marine and offshore industries through the diffusion of Intergraph's next-generation technologies for projects, creating a skilled labour force, and providing an unrivaled support structure ideal for large offshore and marine projects in the Brazilian industry.

VANGUARD Logistics Services has received CEVA's 2012 Ocean Supplier of the Year Award in recognition of best practice and excellence among CEVA's supplier base worldwide.

The event held in Spain was attended by 50 suppliers from around the world. The company was given the honour for the role it has played in developing CEVA's Less-than-Container Load (LCL) oceanfreight services during 2011.



Bruno Sidler, chief operating officer, CEVA, said in a statement: "Vanguard's innovative support of the development of our LCL operations over the past year have been impressive. The systems they have developed allow us complete visibility of our volumes and also provide us with intelligent data on how we are able to best ship items on our customers' behalf using our network. Oceanfreight is one of our strategic priorities and the growth of our LCL offerings is evidence of how we are capitalizing on the opportunities in the marketplace."



The systems provided by Vanguard have allowed its customer to more than quadruple the number of LCL lanes worldwide over the past year and enabled the consolidation of volumes to benefit the bottom line.



"The technology developed by our company for CEVA has allowed them to create a global LCL solution," said Rob Sutton, VP commercial development, Vanguard USA.

SINGAPORE AIRLINES (SIA) posted a 30 per cent drop in net profit S$168 million (US$136.6 million) year on year in the first half of its 2012-13 financial year, and blamed losses on SIA Cargo which lost S$99 million widening its S$31 million loss made last year.

Yet the group enjoyed an operating profit increase of six per cent to S$8 million year on year, a gain that was partly offset by a weaker second quarter air freight demand, widening of cargo losses attributed to weaker demand.



The carrier said that despite reducing freighter capacity 2.5 per cent, cargo load factor fell 1.5 percentage points to 62.7 per cent, as cargo carriage declined at a higher rate of 4.7 per cent in tonne kilometres.



"The continuing European economic crisis is dampening global business confidence, exerting downward pressure on loads and yields. These challenging market conditions are exacerbated by high and volatile jet fuel prices," said a company statement.



"The group remains vigilant in ensuring efficient deployment of its fleet in response to changes in demand patterns. A strict cost management regime is also in place to mitigate cost pressures."



The carrier, the world's third biggest, said it had to cope with lower volumes while facing increasing competition from Middle Eastern airlines and must now mothball one of this one of its thirteen 747 freighters to cut capacity.



"The economy will continue to be very challenging, or perhaps even more challenging.We don't see any reprieve in terms of improvement, especially from economies such as Europe," CEO Goh Choon Phong told a press conference.



The carrier is considering selling freighters "if there's a good enough offer" he said. It's also looking at ways to shed passenger planes, he said without elaboration.



Operating losses at the cargo unit jumped to S$50 million in the quarter ending in September, according to Bloomberg calculations. Earnings at the main airline unit fell 5.6 per cent to S$84 million. The engineering division's operating profit fell 5.9 per cent to S$32 million, while regional carrier SilkAir boosted its figure 46 per cent to S$19 million.



Said Deutsche Bank AG analyst Joe Liew: "We are not convinced that we will see a material earnings pickup over coming months. We continue to see no reason to own the stock."



Said SIA Cargo chairman: "We will have to ride out the current challenges that we are facing. When the economy picks up we will start to see the cargo business coming back."

QANTAS plans to divest from road freight and invest in air freight, says company CEO Alan Joyce.

"Our capital expenditure requirements for 2012-13 are now at the lower level of $1.9 billion and will be at most $1.9 billion next financial year," Mr Joyce says.



"In the second half of 2011-12, we were cash flow positive by $200 million, meaning that our operation cash flows exceeded our capital investment requirements."



Mr Joyce says Qantas plans to continue to only invest in areas of the business that will generate sustainable returns, noting the company's divestment in Star Track Express and investment in air cargo as examples.



"We have divested our stake in the Star Track Express road freight business as we focus on our core portfolio," says Mr Joyce.



"Having worked closely with Australia Post to restructure our joint venture, we will generate more than $400 million in cash from the sale of Star Track Express and strengthen our cargo operations by integrating Australian Air Express."



The airline reported a $245 million loss for the 2011/12 financial year, which it attributed to industrial disputes and high fuel prices, and its international operation, Qantas International.

MIDDLE Eastern and African air cargo carriers achieved higher volumes in September, with traffic rising 16.3 per cent and 4.1 per cent, respectively, compared to the same month a year earlier.

On the other hand, Middle East carriers only managed a freight load factor of 46.1 per cent in September, while African airlines recorded a load factor of 24.1 per cent, the lowest in any region, reports Air Cargo World, and only 0.6 per cent up year-on-year.



According to figures from the International Air Transport Association (IATA), African airlines offered more available freight space in September, boosting capacity by 1.4 per cent year-on-year. Middle Eastern carriers increased capacity 6.9 per cent in September.



Global cargo volumes in September were up 0.6 per cent year-on-year, despite reducing capacity by 0.6 per cent. Capacity utilisation also improved slightly in September, with the freight load factor rising from 45.1 per cent to 45.6 per cent year on year.



Although cargo improved moderately from a year-on-year perspective, September' s volumes lagged 0.6 per cent from August 2012, which IATA said was the second month-on-month cargo decline in recent months.



September freight volumes were weak in North America and Latin America. North American cargo carriers saw traffic drop 1.1 per cent in September on a 3.1 per cent drop in capacity. The freight load factor in North America was up slightly by 0.7 per cent compared to the same month a year earlier to 35.2 per cent.



Asia Pacific cargo carriers saw lower freight demand in September as well, with volumes falling 1.6 per cent year-on-year on a three per cent capacity drop.



Capacity also outmatched demand in Europe in September. According to IATA, European carriers offered 1.2 per cent more freight space than in September 2011, despite demand falling 0.4 per cent.



Latin American carriers achieved a higher load factor than their North American counterparts at 37.8 per cent, although this figure was down 4.1 per cent against September 2011. Also dipping in September was Latin American freight demand. Volumes in the region slowed 1.6 per cent, year-on-year on 9 per cent higher capacity.

NORTHEASTERN Harbin city plans to seize the opportunities of expansion of its airport to develop more air freight services to Russia, building up a "air silk road" for Russian trade, Xinhua reports.

The city plans to launch direct shipping service to one or two Russian cities in the early half of 2012, and nine by the end of 2015.



Heilongjiang province, whose capital city is Harbin, shares a border of over a thousand kilometres with Russia. But the inconvenience of transportation in Harbin has always been hindering the growth of its trade with Russia.



Besides Russian air cargo services, Harbin also plans to launch such services to northeast Asian and North American cities.