Maritime

Valenciaport’s VCFI closes the year 2022 with fall of 13%

Published

2 months ago

January 16, 2023

Port Authority of Valencia

Valenciaport's VCFI closes the year 2022 with fall of 13%. Image: Port Authority of Valencia

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The Valencia Containerised Freight Index closes the year 2022 with a fall of -13.10% in December compared to November. This is the fourth consecutive month of decline in the Index, in a year marked by ups and downs that reflects the uncertainty of economic and commercial activity in all markets. The VCFI stands at the close of this financial year at 3,603.07 points, which represents a growth of 260.31% since the start of the series in 2018. In this last month of the year, the decrease in freight rates from Central America and the Caribbean (-22.61%), Latin America Pacific (-17.37%), USA and Canada (-13.09%), Western Mediterranean (-11.43%) and Far East (-7.51%) should be highlighted.

From the point of view of international trade demand, the scenario remains uncertain and complicated, due to the sustained fall in consumption in an environment of high inflation. Proof of this is the recent reading of the Goods Trade Barometer, produced by the World Trade Organization (WTO), which shows a drop in the indicator to 98.3 points, slightly below its reference value of 100 and seven points below the previous reading, which took place in June and stood at 105.5 points. Along the same lines, according to the Sea Intelligence consultancy, concerning the evolution of demand in the main ports, the latest data show a notably slower market, with a decrease in the volume of TEUs handled.

Regarding the determinants of maritime transport supply and, specifically, the capacity on offer, data from the consultancy firm Alphaliner show that the idle fleet has increased with respect to the previous month. In mid-December, 93 vessels were idle, totalling 581,677 TEU (15,934 TEU more than in November), representing 2.2% of the total active fleet.

Congestion levels continue the downward trend of recent months, although pre-pandemic levels have not yet been reached. According to Linerlytica data, the North Asia region accounts for 37% of all congestion worldwide, North America for 16% and Northern Europe for 10%. It is worth noting that congestion in Chinese ports has increased following the outbreaks of COVID-19, which has had a particular impact on the ports of Shanghai, Ningbo and Qingdao, reaching 850,000 TEU of ships at anchor at the end of December.

As far as the energy and commodities market is concerned, there has been a decrease in the average price of Brent crude oil. During the month of December, the average price was $80.92 compared to $91.42 in November, a decrease of 11.4% and lower than the average of $86.51 in January 2022. Similarly, marine fuels have generally fluctuated downwards since June, according to data provided by Ship&Bunker, taking into account the price of bunkering (refuelling of ships at sea) of the 20 main ports in the world. Thus, the price of VLSFO (Very Low Sulphur Fuel Oil) has gone from 712.8$ in November to 646.9$ in December, representing a drop of 9.2%.

VCFI Western Mediterranean

As for the Western Mediterranean sub-index, a drop of -11.43% is observed with respect to the previous month, standing at 1,897.94 points, and accumulating a growth of 89.79% since the beginning of the series in 2018. In this area, it is worth highlighting the decrease in the volume of exports from Valenciaport to Morocco, Tunisia and Algeria, the main reference countries in the area. Although the decline responds to the current economic situation, it is also influenced by the blockage of Spain’s foreign trade operations with Algeria due to the cancellation of the good neighbourhood treaty by the Algerian government.

VCFI Far East

About the Far East area, December saw a fall of -7.51%, with the VCFI standing at 2,372.04 points, which represents an accumulated increase of 137.20% since the start of the series in January 2018. In this last month of the year there has been a retraction in export levels, compared to the rise in November. A situation caused by the collapse in demand due to the resurgence of COVID-19, which has led to high levels of congestion, as mentioned above.

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Maritime

Wartsila to supply Cargo Handling and Fuel Gas Supply systems

Published

12 hours ago

March 31, 2023

Wartsila

Wartsila to supply Cargo Handling and Fuel Gas Supply systems. Image: Wartsila

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Technology group Wartsila has again been contracted by the Hyundai Heavy Industries shipyard to supply the Cargo Handling and integrated Fuel Gas Supply systems for Very Large Ethane Carrier vessels. This latest order, booked by Wartsila in Q1, 2023, is for two VLECs being built for Japanese ship owner Iino Line.

It follows a series of ongoing deliveries of similar newbuild VLEC vessels at HHI. Wartsila has had a long-standing relationship with HHI, especially regarding a wide range of gas related products and systems for various types and sizes gas carriers

“We have great respect for Wartsila as a provider of high-quality cargo handling and fuel gas supply systems, which are essential elements in the design of these ships. In today’s maritime market, close cooperation with trusted partners is increasingly important for ensuring that projects are completed in the most efficient way possible,” said Mr. Sangryul Kim, Vice President, Hyundai Heavy Industries.

“It is satisfying to be awarded the order, and we are grateful for the trust shown in our products by HHI. This latest order further strengthens Wartsila’s position as a market leader in cargo handling and fuel supply systems, and notably for large sized ethane carriers. These are advanced and very specialised vessels requiring advanced and specialised solutions, which we are proud to deliver,” commented Harald Øverland, Sales Manager, Cargo Handling and Fuel Supply Systems, Wartsila Gas Solutions.

The Wartsila equipment is scheduled for delivery to the yard in mid-2024.

Wartsila Gas Solutions is a market leader with innovative systems and lifecycle solutions for the gas value chain. Our main focus areas are handling of gas in seaborne transport (storage, fuel, transfer and BOG management), gas to power, liquefaction and biogas solutions. We help our customers on the journey towards a sustainable future through focus on lifecycle, innovation and digitalisation.

Maritime

AD Ports to use Vessel Traffic Management Information System

Published

13 hours ago

March 31, 2023

Abu Dhabi Ports

AD Ports to use Vessel Traffic Management Information System. Image: AD Ports

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AD Ports Group is to implement a state-of-the-art Vessel Traffic Management Information System across its UAE operations, as the company continues to invest in innovative solutions to drive safety, security and efficiency. The new technology is set to be installed across Khalifa Port, Zayed Port, Free Port, Musaffah Port, and Al Dhafra region ports.

The investment marks the latest move by AD Ports Group to deploy advanced digital solutions within the UAE in support of the nation’s efforts to develop a world-class maritime and ports sector.

The implementation of an advanced and fully integrated VTMIS is a vital requirement in developing an enhanced Ports Community System (PCS) and ensuring the Safety of Life at Sea (SOLAS). The system is used to ensure the integration and interconnection of all assets in a port and maritime environment, integrating tools such as radar, CCTV, radios, meteorological systems, radio direction finders and towers. This provides port operators with access to real-time information and improves vessel-to-vessel and vessel-to-shore communication.

Captain Ammar Al Shaiba, Acting CEO – Maritime Cluster and Safeen Group, AD Ports Group said: “AD Ports Group has made this investment in a state-of-the-art Vessel Traffic Management Information System (VTMIS) to maximise the safety, security and efficiency of our port and maritime operations. This demonstrates our drive to improve quality and safety in accordance with the highest international standards, and assists our marine services team in making smart, rapid decisions informed by real-time information.”

This advanced level of transparency and communication can support safe and secure management of maritime operations, by supporting functions such as traffic management systems including collision avoidance and safe navigation, search and rescue, oil pollution detection and environmental protection.

To support the implementation of the new system, AD Ports Group intends to advance and upgrade the current VTC Centre with video walls and operator consoles, to provide a comprehensive view of tracked vessels within the VTMIS area.

Once implemented, the new technology will support safe and efficient navigation, enhancing AD Ports Group ability to remotely monitor shipping from the command centre at Khalifa Port, in locations as far as 300km away.

Environment

Jeddah Islamic Port boosts decarbonization drive

Published

1 day ago

March 30, 2023

Saudi Ports Authority

Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay

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The Saudi Ports Authority has announced cutbacks in crane activity and truck turnaround times at Jeddah Islamic Port in line with its annual target of lowering carbon footprint at the Kingdom’s busiest port by 1,046 tons in 2023.

Complementing the goals of the National Transport and Logistics Strategy (NTLS), the Jeddah port’s decarbonization efforts form part of Mawani’s Green Ports initiative that seeks to slash energy consumption by 15% through equipment electrification and diesel phaseout across the Kingdom’s trade hubs.

Through a 33% decrease in average yard crane moves for every imported container that requires manual inspection as well as a 17% reduction in truck turnaround times, the port further solidifies its standing as a cost-competitive and operationally-efficient logistics destination at the crossroads of East-West trade.

The national maritime regulator’s environmental strategies are inspired by the Saudi Green Initiative, a national climate action plan that aims to unite the Kingdom’s push towards ecological protection, energy transition, and emissions reductions through a joint collaborative approach between the public and private sectors.

The Red Sea based hub had recently bagged the Port of The Year award at the Green Shipping Summit 2023 that was held in Rotterdam, The Netherlands for its successful track record in harnessing innovative and sustainable technologies and solutions for a greener tomorrow.

Mawani has been keen on transforming the Saudi ports into investment platforms and facilitating the Kingdom’s trade with the rest of the world. The Authority seeks to achieve an effective regulatory and commercial environment supported by an operating model that enables growth and innovation in the Kingdom’s maritime industry.

It also envisions developing a sustainable and prosperous ports sector to consolidate the Kingdom’s position as a leading global logistics hub. Mawani strives to realize Saudi Arabia’s economic and social ambitions by ensuring reliable and efficient logistics operations, as well as creating a safe and sustainable maritime environment.