Intermodal shipping is undeniably the most cost effective way to transport bulk cargo because of its integrated use of sea, rail and truck transport to deliver goods in the quickest, most direct way possible. The development of freight handling technologies that allow individual cargos to be tracked from their source to their delivery have contributed to the effectiveness and speed with which cargo can be transported across large distances, but it is the standardization of shipping containers that makes this efficient handling of freight possible. Since their worldwide acceptance in the 1970s, shipping containers have increased the efficiency of transporting goods by reducing handling times when unloading ships and reloading the same cargo onto trains or trucks. The containerization of bulk freight made it possible to develop port facilities that can handle vast numbers of containers in a single day, with the world’s largest port, Shanghai, estimated to have handled 31.7 million containers in 2011 alone1. Alongside the development of increasingly efficient infrastructure in modern ports, the growth in the size of container ships has seen the average transport vessel able to carry 8,000 containers at once, and may transport as many as 200,000 containers in a single year2. Obviously the key to all of this efficiently handled cargo…
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People have been shipping cargo around the world for thousands of years, and the logistics of loading, unloading, and reloading goods, has always proved to be costly, time consuming and inefficient. The huge increase in the amount of cargo during the 20th century meant that solutions had to be found for the problems of cargo handling, and this drive towards greater efficiency and cost effectiveness led to the development of the intermodal freight networks that crisscross the globe. The key to the development of the most efficient cargo handling system ever conceived, however, was the invention of the shipping container. Contrary to popular belief, the shipping container wasn’t invented by the Chinese. In fact, the first shipping container design was patented in America by Malcolm McLean1 in 1956. McLean was the owner of the fifth largest trucking company in the United States, and he saw the truck loading and unloading process as being costly because of its inefficiency. This led to his development of pre-loadable containers that could be set onto trucks as a unit, considerably reducing handling time, and therefore costs. Early attempts at developing this into a standardized system for freight handling were unsuccessful until the U.S. Navy…
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Since its beginnings in 1799, the Port of Dubai has developed into a cosmopolitan center of trade and tourism that possesses one of the busiest ports in the world. The huge economic development of Dubai on the back of the oil wealth of the region has seen Dubai become a city of gleaming skyscrapers and that forms the hub of the Middle East and the Persian Gulf region. In recent decades, Dubai has developed as a major tourist destination because of its central geographic location and warm climate with white sandy beaches. Its geographical location has also made it a vital link in the worldwide intermodal transport chain at the same time. The Port of Dubai is one of the biggest ports in the world as well and it has been ranked as the 9th largest container port worldwide after giant seaports like Shanghai, Singapore, and Hong Kong and larger than the busiest port in Europe at Rotterdam1. The majority of the growth of Dubai has occurred in the past decade with huge increases in the amount of cargo being handled by the Port of Dubai’s managing authority, DP World. During the period 2000-2005, there was an increase of 155%…
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One of the major concerns for many consumers now is the environmental impact that their choices are having. The energy that is used to transport goods across the globe has come under the spotlight and this has inspired studies into the carbon footprint that various transportation methods create. While some, like air freight, have expectedly high carbon footprints because of the amount of fuel that is used to transport relatively small items, there are also some surprising results being produced by these sorts of studies. One of the most efficient ways to transport goods is to use intermodal freight systems. These transport networks have been designed specifically to make transporting bulk goods more efficient but they are also beginning to show that this efficiency is also translating into a smaller carbon footprint. A recent study conducted in Seattle compared the carbon footprint of using an express intermodal service to transport freight with the footprint that is created by shipping the same products by other forms of transport. The study found that using intermodal options between Seattle and Chicago reduced the carbon footprint by as much as 52% of that which is produced by sending the same freight over roads by truck1. At the same time, this study has confirmed and, to a…
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In recent news, Hyundai Heavy Industries (HHI) has disclosed it has been awarded a $1.1 billion contract for installing a Topside Facility on the Aasta Hansteen spar hull by Statoil. The Aasta Hansteen spar hull is also being constructed by a South Korean company, and this will come as a plus for South Korean heavy support industries. Statoil has given HHI a deadline date of sometime in 2016 for the installation of the Topside Facility, which is able to produce 23 million cubic meters. Construction may begin this month, however the spokesperson from Statoil is uncertain as to exactly when. This contract comes on the heels of the $800 million bid from Statoil for a spar hull off the northwestern Norwegian coast. Hyundai Heavy Industries will benefit greatly from this partnership with Statoil, and it is likely that, once the level of construction is up to HHI’s regular standard, the partnership will continue. HHI is usually a name associated with shipbuilding, but their industrial construction has seen action in the oil and gas fields for quite some time. The durability and dependability of their construction makes them desirable for the construction of offshore storage and drilling platforms as well as…
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On the 3rd of January, 2013, BIMCO issued “Reflections 2013,” a study of the problems currently facing shipping and in the near future. It emphasizes the regulation of the world shipping industry as well as the use of sensible and practical methods for alleviating the problems faced by the modern world of shipping. It further goes on to inform that the basis of the shipping companies, and the personnel therein, should be educated and treated fairly and in line with what is expected from large companies. Macroeconomically, BIMCO has stated that due to the escalation of GDP and world trade, 2013 seems to be a year that could see a turn in fortunes of the shipping industry. Even though this may hearten some, the fact remains that ships ordered to deal with a surplus of tonnage that never materialized could impact this scenario badly and could lead to a global slump, the likes of which some companies would be unable to recover from. To conclude this analysis, BIMCO has stated that the numbers must be considered along with these negative factors and may lead to some bleak times for the industry. Regulation is a talking point in “Reflections 2013” since…
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UK Internal Auditors to be Trained by Solace Global Maritime Internal Auditors in the UK will have the benefit of being trained by one of the world’s leading private maritime security companies (PMSCs), Solace Global Maritime. This is in preparation for the upcoming ISO PAS 28007 accreditation, Guidelines for Private Maritime Security Companies. The internal auditors taking part in this training have been individually selected across multiple departments and will have to report on the audits of business functions at least once per twelve month period. Solace Global Maritime has always been at the very forefront of the industry and with their current enthusiasm towards obtaining new certification, one can rest assured they will remain at the top of their game. Solace Global Maritime leads the charge for maritime security services, providing security on many levels as well as audits to discover faults and improve systems on vessels around the world. Their clients include some of the largest oil and gas companies in the world, testament to the effectiveness and usefulness of the services provided. The internal auditors being trained by Solace Global maritime have at their disposal the best and the finest of the PMSC’s experienced staff as mentors…
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OOCL witnessed the launching of its latest 8,888 TEU vessel yesterday from Changxing Island shipyard in Shanghai on the 15th of January, 2013. The OOCL Miami is third of eight vessels commissioned by the shipping company from Hudong-Zhonghua. This ship is just the latest in a long line of ships built by Hudong-Zhonghua combining innovation with efficient techniques in construction. Hudong-Zhonghua has made a name for itself in recent years with its shipbuilding prowess and ability to deliver on time. It is because of these merits that OCCL had granted to them the contract for the construction of these 8,888 TEU ships. They have not disappointed. The OOCL Miami is scheduled to run the Trans-Pacific network’s Super Shuttle Express (SSX) service with an expected forty-two day port rotation. Hudong-Zhonghua is a massive shipbuilding enterprise, the forefront of which is the China Shipbuilding Group Corporation (CSGC). Their work is among the best in the industry and does not only consist of container ships. Hudong-Zhonghua has also built chemical carriers, passenger ships, and bulk-cargo transports, to name a few. A grand total of over three thousand ships have been built by this company. Hudong-Zhonghua builds for both the local and international market…
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With the establishment of a fresh European president, Singapore-based APL is seeking new trade opportunities in the European market. The subsidiary of Neptune Orient Lines has recently started researching original opportunities in the European market to add to its already vast portfolio of services offered to European consumers. Already noted for its reliability and fast transit time, APL seeks to bring this established name to additional European markets in the hopes of stimulating trade in the region and offsetting expenses that plague the Europe-Asia region regarding shipping costs. APL has hopes that these diverse markets will return viability to the company’s oldest operating region. Earlier this year, APL applied a General Rate Increase to the company’s Transatlantic Service in order to balance the rising costs associated with transatlantic shipping. Rising costs along with decrease in freight rates had forced the shipping company to raise the fee on standard dry equipment $500USD above its previous level. Using the same strategy in Europe may not be feasible due to the availability of lower-priced competitors. Such a move could only cripple the company and leave it vulnerable in the region. The alternative of exploring new markets for APL to offset its costs, and…
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Maersk Line states that it will implement a general rate increase from India to Latin America starting on the first of February, 2013. The increase is scheduled for both 40-foot containers and 20-foot containers. The 40-foot containers have been slated to rise in price by $400 while the 20-foot containers are set to rise by $200 per engagement. Maersk claims that this increase is a means of dealing with rising prices of fuel. Maersk has also said that other routes will be facing rate increases in the future. Already, the Asia-Europe route is under heavy scrutiny, since A.P. Moller-Maersk states that at the current rates, they are not making money and to make the route profitable, rake hikes will be needed and are probably already under consideration. In addition to the rate hikes, Maersk has also announced that the effective dates of its congestion charges to the US have been moved to a later date in February (depending on the location), in order to deal with a possible strike by the International Longshoremen’s Association. This has come because of a recent break in negotiation talks in the New York- New Jersey region which could lead to massive strikes and could…
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