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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

January 10, 2013

Emirates on track to become world’s second largest airline

Filed under: Newsletter — admin @ 11:29 am

Fast growing UAE carrier, Emirates is on track to overtake Delta Air Lines this year and claim the title of the world’s second largest airline.

According to research conducted by the CAPA Centre for Aviation, if Emirates maintains its 18.4 percent growth rate, the carrier could jump one spot this year into second place.

Despite its fast-paced growth, the Dubai-based airline will still be one place behind United, which became the world’s biggest airline after its 2010 merger with Continental and experienced a 67.3 percent growth in 2012.

British Airways and Air France managed to maintain their spots as the world’s seventh and eighth largest airlines, while Turkish Airlines jumped seven spots from 22 in 2011 to 15.

Lion Airlines also made a substantial leap in 2012, rising eight spots from forty-seventh largest airline to 39 while Jet Airways fell seven spots from thirty-ninth largest airline to 46 and Qantas Airways fell two spots from 14 to 16.

In the low-cost sector, Southwest maintained its number one spot followed by Ryanair, JetBlue and easyJet.

AirTran Airways fell three places from sixth largest to ninth while Spirit Airlines jumped four spots from nineteenth to fifteenth largest low-cost airline in the world.

Airlines are ranked according to available seat kilometres and measure of its passenger capacity

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January 8, 2013

Bigger Ships will make fewer port calls

Filed under: China,Events,General,Logistics,Newsletter — admin @ 11:36 pm

The maritime session at the Asian Logistics and Maritime conference in Hong Kong specifically explored the Ocean Freight Sector, with Eric Ip, Deputy Group Managing Director of Hutchison Port Holdings questioning the economic and business benefits from increasingly bigger vessels. The latest 12,000+ TEU vessels, and soon-to-arrive 18,000 TEU ships, present challenges for terminal operators who need larger berths, bigger cranes and deeper water in order to accommodate these increasingly large container ships – “bigger ships will make fewer port calls”.

At 396 meters and the capacity to hold 16,020 TEUs, the CMA CGM Marco Polo is now officially the world’s largest containership and made her maiden call in  Hong Kong on 13 November 2012

At 396 meters and the capacity to hold 16,020 TEUs, the CMA CGM Marco Polo is now officially the world’s largest containership and made her maiden call in Hong Kong on 13 November 2012

According to Andy Tung, CEO of OOCL, the intra-Asia trade is now the world’s largest ocean freight segment, representing some 62% of global total container volumes. He commented that for each single long haul container move, for example Asia to USA or Asia to Europe, there are likely two-to-three short haul intra-Asia container moves. Mr Nazery Khalid, senior fellow at the Maritime Institute of Malaysia gave a lively presentation on maritime mega trends, reinforcing that the containerised shipping sector is dependent on derived demand. Volume fluctuations are primarily driven by external drivers such as population growth, outsourcing trends, emerging new economic powerhouses, factory locations, global recession and financial crisis, rising awareness of climate change, need for environmental protection and fluctuations in the oil price. The shipping sector therefore needs to respond and react to these macro-economic drivers, whilst balancing the supply and demand of vessel capacity and related port capabilities.

The discussion confirmed how containerised ocean freight is at the heart of the majority of 21st century global supply chain ecosystems. Hong Kong and Singapore are the leading maritime centres in Asia, both blessed with strategically significant geographic locations and long standing histories as international trading hubs and maritime centres, which has resulted in best-in-class capabilities in logistics and supply chain management, based around enviable competencies in people, facilities and technology. Logistics and Maritime practitioners and communities around the region must work together to address new challenges in The Asia Era and solve how best to embrace new technologies and ever larger vessels.

Mark This is the first of a regular series of contributions by industry thought leader Mark Millar. Mark aas been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 250 events in 20 countries and is recognized by the Global Institute of Logistics as “One of the most Progressive People in World Logistics”; Mark serves on the Advisory Board of the Logistics and Supply Chain Management Society (LSCMS) mark@markmillar.com

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January 3, 2013

Maersk Begins Retrofitting Containerships

As an indication of how seriously shipping lines consider the impact of fuel costs on rates and the need to reduce it, Maersk has started reducing the bulbous bows on 10 ships in the 4,000 TEU range to cut fuel consumption, while slow steaming. This is also an indication that shippers will in the long run have to accept and plan for longer lead times in their Supply Chains as it is unlikely that carriers will revert to shorter transit times any time in the near future once they have taken such steps.

Bulbous bows even waves created alongside vessels, reducing propulsion power, said London’s Containerisation International. On big ships bulbous bows are best at 25 knots, but unfit for slow steaming. Reducing their size reduces resistance, which reduces fuel burn.

The work is being completed at the Qingdao Beihai Shipbuilding Heavy Industry yards. According to the yard, a unit of state conglomerate China Shipbuilding Industry Corp, it has made smaller bulbous bows on two ships within three days. Maersk Line earlier estimated that it would take 12 days.

“Our team has optimised the production process of the bulbous bows, each of which weighs some 200 tonnes,” the company said on its website. “It was supposed to be built from five parts, but we managed to build it from three parts, thus saving time.”

Beihai Shipbuilding is reducing the bows for five Boston class containerships for Maersk Line and will also do similar work on five 8,400-TEU Stepnica-class vessels throughout next year.

“Following this, we will evaluate the business case before deciding whether to spread this to other vessel classes,” Maersk Line head of global optimisation and innovation, Niels Bruus said.

For Beihai Shipbuilding, reducing the size of bulbous bows is unprecedented, demanding innovation to complete. “The whole retrofitting process requires four segmental brackets and eight pillars. There were no past experiences to tap into for this kind of project.

“Our process is approved by the shipowner, ABS and Lloyd’s Register. We hope the project can help us enhance [the yard’s] reputation and improve market competitiveness,” the shipbuilders said.

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January 2, 2013

Hume Highway (NSW, Australia) could see B-triple trucks

Filed under: General,Newsletter — admin @ 10:35 am

20130102-103356.jpgThe New South Wales Government is considering a trial of B-triple trucks, which are about 36 metres long – 10 metres longer than the B-doubles that currently ply the Hume Highway.

The state’s Roads Minister Duncan Gay says a trial would not begin until 2014 at the earliest.

This is due to the construction of a dual carriageway along the entire length of the highway, which is due to be completed next year.

It is being considered as part of a national plan to increase the use of B-triples, which are already used in western New South Wales and other states.

However, NRMA spokesman Peter Khoury says there have already been serious truck safety issues on the highway, and the heavier B-triples will do more damage in a crash.

Read more…

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