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VCFI for June has broken its upward trend with a decrease of -2.19%

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VCFI for June has broken its upward trend with a decrease of -2.19%. Image: Port Authority of Valencia
VCFI for June has broken its upward trend with a decrease of -2.19%. Image: Port Authority of Valencia
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The Valencia Container Freight Index – VCFI for June has broken its upward trend with a decrease of -2.19% compared to the previous month. Since July 2020, when it fell by 2.72%, the trend has been one of constant growth, except for February 2022 with -0.19%, until this last month. The Index stands at 4,647.32 points, accumulating a growth of 364.73% since the beginning of the series in 2018. As for the different areas that make up the VCFI, the general trend has been downward, with the Central America and Caribbean area -5.75% and the Western Mediterranean -1.99% standing out. The only relative increase was seen in the USA & Canada region 0.40%.

The value of the VCFI, in line with other benchmark indicators, points to a containment in the price of maritime transport. However, developments in the coming months are an unknown as the global economy continues to be threatened mainly by high commodity prices and supply chain problems. Moreover, in June, in addition to the existing geopolitical tensions, Algeria’s blockade of trade affected international trade and, consequently, maritime transport flows.

In June, the average price of a barrel of Brent crude oil was $122.71, compared to $113.34 in May, which implies a rise of 8.27% and an accumulated annual increase of 67.73%. Similarly, marine fuels affecting bunkering have fluctuated upwards. Thus, the price of VLSFO has risen from 1030.50$ in May to 1077.50$ in June, representing an increase of 4.56%.

In terms of capacity on offer, data from the consultancy Alphaliner show a drop in idle fleet levels compared to the previous month. Thus, in mid-June, 60 vessels were idle for a total of 240,806 TEU, representing 1% of the total active fleet. The percentage of idle ships is still low, but still represents an increase compared to 2021, when the idle fleet represented on average 2.5% of the total.

As regards the data provided by Linerlytica on the evolution of demand in the main ports, the volume of port traffic has been below forecast. Although the beginning of June saw the reopening of operations at the port of Shanghai, and a rise in container demand was expected, it will take between four and eight weeks for these operations to return to normal activity. On the other hand, in the United States and Europe, the increase in the level of stocks together with a slowdown in private consumption has caused a decrease in container traffic.

In June, there has been a clear downward trend in the levels of congestion, although the average levels of fluidity prior to the pandemic have not yet been reached. Thus, port congestion worldwide fell to 11.5% in the last week of June due to the boost provided by the reduction in congestion in China and on the west coast of the United States. In particular, congestion in the Asian ports of Ningbo and Shanghai has decreased, reducing the queues of ships at anchor. Similarly, as far as the US West Coast is concerned, the decrease in congestion can be seen by the 100,000 TEU waiting compared to 740,000 TEU in January this year. In contrast, congestion has increased on the US east coast and in Europe. According to Linerlytica’s June data, port congestion in North Asia, North America and Northern Europe was 30%, 32% and 13% respectively.

VCFI Western Mediterranean

As for the Western Mediterranean sub-index, a decrease from the previous month of -1.99% was observed, standing at 2,440.08 points, and accumulating a growth of 144.01% since the beginning of the series in 2018.

It is worth noting the Algerian government’s decision to suspend the Treaty of Friendship, Good Neighbourliness and Cooperation signed with Spain two decades ago. Undoubtedly, this fact has meant a retraction in trade flows with this country, which is an important economic partner.

VCFI Far East

In the Far East area, a fall of -0.33% is observed, standing at 3,753.69 points and accumulating an increase of 275.37% with respect to the start of the series in January 2018. In this line, a decrease in Valenciaport‘s export flows with China, its main trading partner, continues to stand out, as a side effect of the restrictions and blockades due to the 0-COVID policy. However, it is expected

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Container Terminal

APM Terminals expands its API offering

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APM Terminals expands its API offering. Image: APM Terminals
APM Terminals expands its API offering. Image: APM Terminals
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In response to customer feedback, this month APM Terminals rolled out a new API which enables customers to track the schedules and key milestones for all vessels calling at a specific terminal. Furthermore, real-time API data connectivity was made available for an additional three terminals.

APM Terminals has offered a Vessel Schedule API for some years, however this was more suited to customers looking to track a specific vessel calling a terminal. The new Terminal Vessel Schedule enables customers to track all vessels calling a terminal, for up to one week in the past and two weeks ahead.

The Terminal Vessels Schedule provides customers with, among other things, real-time and reliable terminal Estimated Time of Arrival/Departure, Earliest Receiving Date, Cut-Off Times for different cargo types, vessel details and more.

Why use APIs?

APM Terminals’ innovative, industry-leading range of seven APIs enables customers to pull real-time container status, truck appointment and vessel data from its Terminal Operating Systems, into their own internal systems, such as a Logistics or Transport Management System (TMS). Developed in line with industry standards, they offer self-service, straight forward, one-time-only implementation.

Real-time data feeds remove the need to look up information manually via our existing Track & Trace channels, making this the ideal solution for shipping lines, inland transporters, cargo owners and managers, and data aggregators who process higher volumes.

The pricing structure of the new Terminal Vessel Schedule is particularly interesting for larger customers tracking a number of vessels as unlike the existing Vessel Schedule API, pricing is not per vessel called via the API, but for unlimited calls for a period of 30 days, for a specific terminal. As with the company’s existing range of APIs, API calls are purchased using API credits which can be bought in bundles. The larger the bundle, the lower the price per credit.

New Terminals

API connectivity was added for the company’s two Ports in India, APM Terminals Mumbai and APM Terminal Pipavav, as well as the Suez Canal Container Terminal (SCCT) in Egypt. SCCT support data for Vessel Schedules, Import Containers and Export Containers. The Indian terminals support data for Vessel Schedules, Import Containers, Container Event History and Empty Container Returns.

With these additional Terminals, APM Terminals now offer’s API connectivity for 22 of its terminals, with an additional five planned to be added this year.

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Container Terminal

MOL join the Port Island Phase 2 Development Project at the Port of Kobe

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MOL join the Port Island Phase 2 Development Project at the Port of Kobe, Image: MOL
MOL join the Port Island Phase 2 Development Project at the Port of Kobe, Image: MOL
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Mitsui O.S.K. Lines, Ltd. announced the signing of a memorandum of understanding for the Port Island Phase 2 Development Project at the Port of Kobe with Kobe-Osaka International Port Corporation and Kawasaki Kisen Kaisha, Ltd.

Following the phase 2 South Pier expansion and improvement work undertaken by Kobe-Osaka International Port Corporation, MOL will add berth PC-14 and the land behind the terminal to its lease and expand Kobe International Container Terminal. MOL currently leases KICT and operates berths PC-15/16/17 along with Sankyu Inc., Sumitomo Warehouse Co., Ltd., and Nickel & Lyons Ltd. The MoU also calls for “K” Line, which currently operates a container terminal on Rokko Island, to join KICT. After the completion of the expansion and improvement work, KICT will be the largest terminal in western Japan, handling about 40% of international container cargo at the Port of Kobe.

The expanded KICT will have a total wharf length of 1,750m, up from the current 1,050m, providing more flexible berth windows and streamlining connections for containers with other routes. Furthermore, a Container freight station directly connected to the terminal and a logistics facility with an overhead crane that can move larger cargo, will be built on the land behind the terminal, offering one-stop service from loading of cargo containers to delivery to the terminal. MOL Group company Shosen Koun Co., Ltd. will operate these facilities, delivering convenient and competitive logistics services to customers throughout the group.

MOL has positioned environmental strategy as one of the key elements of in its “BLUE ACTION 2035” management plan, and set the goal of achieving net zero greenhouse (GHG) emissions by 2050 in the “MOL Group Environmental Vision 2.2.” Last year, Shosen Koun became the first company in Japan to introduce two new transfer cranes (RTGs), which can be converted from conventional diesel engines to hydrogen fuel cells to power the RTGs used for container handling operations at KICT. And the company will adopt the new electric RTGs in the terminal expansion area. In addition, it plans to install solar panels on the container gate and the roof of the logistics facility. Through these concerted group-wide initiatives, the MOL Group will contribute to the reduction of GHG emissions from the container terminal.

MOL has positioned the Port of Kobe as an important base for its domestic business for many years, and its group companies currently operate the port, logistics, tugboat, and real estate businesses, each of which has deep roots in the local community. In April of last year, the Kobe Shosen Mitsui Building celebrated the centennial anniversary of its completion. With the KICT expansion project, the MOL Group will further solidify its business base and offer stress-free services to customers.

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Container Terminal

APM Terminals Callao receives largest capacity container ship MSC Chiyo

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APM Terminals Callao receives largest capacity container ship MSC Chiyo. Image: APM Terminals
APM Terminals Callao receives largest capacity container ship MSC Chiyo. Image: APM Terminals
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The Callao Multipurpose North Terminal, operated by APM Terminals, welcomed “MSC Chiyo”, the largest capacity container ship to ever call in Peru. The new container ship, operated by shipping line MSC (Mediterranean Shipping Company) came into operation this year.

At 366m long and 51m wide, the vessel operates on the ANDES Service, which connects Callao with the Asian continent. The MSC Chiyo has a higher-than-normal container capacity due to its maximum draft of 17 meters. With 16,616 TEU (20-foot container equivalent) on board, it became the largest capacity vessel to ever arrive on the west coast, compared to the 14,000 TEU ships normally operating on the same service.

During its stay at APM Terminals Callao, 2,586 crane moves were made in total. This included 1,522 import TEUs and 1,483 export TEUs, which were handled with the terminals five super post panamax ship-to-shore cranes for almost the entire operation. An impressive crane productivity of 115 moves per hour was achieved.

“At APM Terminals Callao we are proud to be the main port in the country and to be the first to receive ships of this capacity,” commented Fernando Fauche, Commercial Director of APM Terminals Callao.

“One of the factors that make events like this a reality is the great care and priority we give to our internal safety and security standards, ensuring that they are 100% met and providing guarantees to our clients. The arrival of this large vessel is undoubtedly a milestone for the terminal, and events like this reaffirm our mission to become an international hub for the different players in the logistics sector and thus continue to meet the needs of the local and global market.”

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