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Drewry: Europe-ECSA Box Volumes Break Three-Year Losing Streak

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…As EU Commission Clears Maersk Product Tankers Acquisition***

Container shipments from Europe to East Coast South America reclaimed dominance in 2017 as they broke a three-year losing streak by registering first annual growth since 2013.

The southbound trade achieved a volume increase of 12% in 2017 to reach 850,000 TEU, shipping consultancy Drewry said citing figures from Datamar.

Split by region of export, growth from the smaller Mediterranean market was strongest, rising by 15% to 250,000 TEU, while North Europe exports to ECSA increased by 11% to 600,000 TEU. North Europe exports ended the year stronger than the Med, rising by 14% in the fourth quarter, versus 9%.

That pattern carried into 2018 with Datamar statistics for January showing buoyant growth from both regions with North Europe at a rise of 20%, just edging ahead of the Med which saw an increase of 17%.

The turnaround in the southbound market was sufficient for it to eclipse the reefer-oriented northbound trade for the first time since 2014. Despite a better performance in the second half of the year, driven by fruit exports to the Med, the northbound trade was only able to muster annual growth of 0.4%, giving a final tally for 2017 of 830,000 TEU.

Drewry added that the start to this year was mixed as Datamar numbers show that trade to North Europe slipped by 2.5% year-on-year in January, while growth to the Med was much lower than the double-digit rates experienced since June, rising by 6% in the first month of 2018.

The figures for January continue the recent trend, whereby the southbound leg appears to have plateaued at a very healthy 12%, while the northbound leg is slowly creeping into positive territory.

Available capacity on this trade has been reduced slightly by the suspension of two seasonal services in February and early March from CMA CGM and Maersk, both designed to tap into the more lucrative northbound reefer market.

Drewry estimates that capacity on both legs will be 4% lower in April than it was in the same month last year.

Meanwhile, the European Commission has approved the acquisition of joint control over Danish Maersk Product Tankers by APMH Invest A/S, a wholly-owned subsidiary of Maersk Group, and Mitsui & Co.

“The commission concluded that the proposed acquisition would raise no competition concerns because of the limited impact it would have on the market. The transaction was examined under the simplified merger review procedure,” the commission said.

Under the proposed transaction, the duo informed of their intention to create a joint venture company called Maersk Product Tankers A/S. As disclosed, Mitsui would acquire a stake of shares of Maersk Product Tankers from APMH Invest and the latter would retain the remaining stake of shares of the tanker company.

The move comes on the back of the sale of Maersk Tankers, which was announced as part of Maersk Group’s focus switch to container shipping, ports, and logistics. The sale has been carried out in the form of a USD 1.17 billion all-cash transaction.

The shift saw the group’s oil business, Maersk Oil, being sold off in August to Total S.A  for USD 7.45 billion in a combined share and debt transaction.

A.P. Moller Holding disclosed earlier that it would set up an ownership consortium for Maersk Tankers’ fleet with Japan’s Mitsui & Co. Ltd. and other potential partners, in which A.P. Moller Holding will be the majority shareholder.

The proceeds from the transaction will be used to reduce debt, the group revealed earlier.

World Maritime News

Maritime

Haruna: Galant Customs Officer Curbing Economic Sabotage, Murdered by Katsina Smugglers

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Haruna: Galant Customs officer Curbing Economic Sabotage, murdered by Katsina Smugglers

…CGC Reaffirms unwavering commitment towards border security

 Nigeria Customs Service (NCS) has sorrowfully announced the tragic passing of Customs Assistant II Auwal Haruna. 

The unfortunate incident occurred at the Gamji Makaho checkpoint in Dankama area of Katsina State on the morning of April 17, 2024. He has been buried, in line with Islamic rites.

According to the Customs National image maker, Abdullahi Maiwada, the melee was triggered when a team of customs officers attached to Katsina Area Command attempted to intercept a convoy of over fifty vehicles transporting goods suspected of illegal movement outside the country. 

“Haruna and his fellow officers exhibited remarkable courage in their duty to thwart these audacious economic saboteurs.

 “Their actions sparked a confrontation with an enraged mob who viciously attacked and fatally assaulted CA II Auwal Haruna. He has since been laid to rest according to Islamic rites in his hometown, Kayawa, under the Dutsi Local Government Area of Katsina state”, the Service stated, noting the deep and genuine sorrows of the Comptroller General.

“The Comptroller General of Customs (CGC), Bashir Adewale Adeniyi, and the entire NCS fraternity extend heartfelt condolences to the CA II Auwal Haruna family. He also vehemently condemns the senseless act of violence that led to his untimely demise and assures a comprehensive investigation into this tragic incident to ensure justice is served.

“The CGC underscores the perilous challenges officers face in their daily mission to safeguard the nation’s borders. Under his stewardship, he assures that the NCS stands firmly united with the fallen officer’s family during this period of profound grief.

“The NCS remains steadfast in its efforts to combat illegal activities such as smuggling, prioritising Nigeria’s border integrity while ensuring the safety of citizens and dedicated customs personnel”, the National Public Relations Officer further stated.

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Maritime

Reps Demand Restructuring Of Terminal Operators, NPA Licensed Agents

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Reps Demand Restructuring Of Terminal Operators, NPA Licensed Agents

 ..Says “Our goal is to effect changes that will restructure and position it to compete in the global space

The House of Representatives Committee on Ports and Harbour has demanded the restructuring of Terminal Operators and Nigeria Ports Authority (NPA) Licensed Agents in the country.

Rep. Nnolin Nnaji, Chairman of the committee, disclosed this at the interactive session with terminal operators and NPA licensed agents in Abuja on Thursday.

“Our goal is to effect changes that will restructure the unique and high-tech sector and position it to strategically compete in the global space.

“This sector is very dynamic and we must constantly review the standards, facilities and operational guidelines to keep pace with its obtainable global best practices,” he said.

The lawmaker reiterated the committee’s readiness to ensure that the sector remained one of the best through appropriate legislation and oversight.

“This is to bequeath to Nigerians, ports and harbours that are properly regulated and better managed for greater efficiency.

“It is important to harmoniously promote the objective of professionalising the modus operandi of this sector to improve our country’s Gross Domestic Product and revenue generation.

“We intend to collaborate with relevant stakeholders in the industry to ensure that appropriate avenues are created for economic development,” he said.

He said the committee was poised to make the ports a hub for better non-oil revenue generation, adding that the house would continue to support total rehabilitation and upgrading of ports, harbours and allied services.

In her contribution, the Registrar and Chief Executive Officer, Council for the Registration of Freight Forwarders of Nigeria, Urunta Chinyere, advised terminal operators to adopt electronic mode of payment.

“This is to reduce human interface in their operations,” the officer said.

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Maritime

SOAN Inaugurates New Leadership, Boosting Hopes Of Crushable Inflation

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SOAN Inaugurates New Leadership, Boosting Hopes Of Crushable Inflation

…Sonny Eja is President, Ekere is 1st Vice President; Iroghama Ogbeifun is Chairman, Technical Committee

When Air Peace made its innocent maiden flight from Nigeria to London on March 30, 2024, the symbolical flight achieved two things: first, it broke the unholy equilibrium fare price amongst available airlines.

Secondly, the gesture sent some powerful signals to the entrenched operators, that a determined indigenous operator has finally berthed; and momentarily, the extortionate fare crashed…! Now, if we should replicate this very gesture in the maritime, with a provision of a ‘national’, but privately run vessels/ carriers, how far or fast would carriage charges crash?

The Air Peace has silently made a deafening statement: no amount of plea would crash prices, except the nation can assertively provide a functional alternative.

SOAN Inaugurates New Leadership, Boosting Hopes Of Crushable Inflation
SOAN President, Sonny Eja.

The distance between Lagos and London by flight is about 6 hours and 40 minutes. The distance between London and New York by flight duration is 7h 30m. So, how come the cost of flight from Lagos to London is always twice as much, compared to the cost of flight from London to New York…? 

The answer is simple: Nigeria is an orphan, and there is no effective competition to mitigate arbitrariness. In the maritime sector, however, the country’s fate is worse: shippers are paying twice for cargo freight. Same for handling charges. There was even a time they were paying for as ridiculous a charge as the ‘Weekend’ levy, in the event that you are unlucky to come for clearing by weekends!

 The growing inflation, the poor masses albatross is both artificial and conspiratorial!

First, government’s understanding of the industry is warped and its support, insignificant. The Government functionaries who should assist both the shippers and stakeholders were often either insincere, ignorant or easily cave in under politicians’ pressure. 

No one is as hopeful as the hunter’s wife: she knows her husband did not keep any beast in the forest, yet, she joyfully sings lullaby for the baby on the mat, as she washes the soup pot and grinds the pepper, as she awaits the husband’s return! And the hunter never disappoints.

It is in the same spirit, that shippers would tomorrow, celebrate the inauguration of the incoming President of the Ship Owners Association of Nigeria SOAN, Sonny Eja.

Those who know him at close range described him as a highly focused, truly inspired and totally committed investor, who never disappoints. He is sold to the cause of the shipping industry development. 

Unarguably, he is acknowledged as a resourceful long runner, who often is not only self-motivating, but equally enjoys the special ability to motivate others  Some said it is for this reason that he is so treasured, by the SOAN maiden Arrowhead and Nigeria’s foremost shipping magnate, Engr. Greg Utomwen Ogbeifun.

The President, fortunately, will be fully assisted by tested and trusted ship owners, with enviable skills and technical know-how.. promoters 

These include Dr Louis Ekere as SOAN’s 1st Vice President; Mr. Gbolahan Shaba, the 2nd Vice President; Mr.Babalola Adefariti – Financial Secretary/ Treasurer; Mr. Bem Garba –  Chairman, Training & Capacity building Committee; the shipping industry Amazon, Ms.  Iroghama Ogbeifun as Chairman Technical Committee; Ms. Bassey Adie -Chairman, Ethics & Privileges Committee; and finally, Mr. Emmanuel Okene, who is the Chairman, Finance and membership Committee.

The Doyen of the Maritime industry, High Chief Adebayo Babatunde Sarumi once congratulated SOAN for lifting Nigeria off the lackluster club of 10-Percenters. 

Now, the whole nation would probably look up to SOAN, to midwife a ‘national carrier’ and permanently crash the menace of intractable inflation!

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