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Vietnam – dynamic trading partner for the Port of Hamburg

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Vietnam - dynamic trading partner for the Port of Hamburg. Image: HHM / Dietmar Hasenpusch
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The EU-Vietnam Free Trade Agreement will enter into force on August 1 2020. Trade between the Port of Hamburg and Vietnam, which has already increased in recent years, should continue to benefit from this agreement.

Although the corona-related developments will also affect trade between Germany and Vietnam in the current year 2020, for the Port of Hamburg there has been very positive growth in the Vietnam shipping region in the recent past. In 2019, a new record quantity of 106,000 standard containers (TEU) was moved between Hamburg and Vietnam. This increase of 15 percent compared to the previous year is also due to direct connections which are now offered by the carriers for this route.

The free trade agreement between the EU and Vietnam, which was ratified by the European Parliament and the Vietnamese National Assembly in the first half of 2020, promises to create new market incentives that result in increased transport volumes between those markets. Customs barriers are to be dismantled for this. This applies in particular to deliveries of goods from Europe, for which 99 percent of all customs duties are to be reduced within ten years. The EU, in turn, will reduce tariffs to 84 percent of Vietnamese products to 0 percent when the free trade agreement comes into force. After seven years, this is to be the case for 99 percent of the tariffs.

Vietnam is part of a large number of free trade agreements and, among other things, is trying to position itself as an attractive production location in Southeast Asia. This applies in particular to companies that are relocating their production within Asia due to increased costs. Vietnam plans to invest USD 3.8 billion in the country’s port infrastructure in order to manage the resulting flow of goods.

Five scheduled services connect the Port of Hamburg with Vietnam, with ports in both the north and south of the country being approached. In addition to two container services, three multi-purpose services are operated. The latter are particularly suitable for project cargo and conventional general cargo. The multi-purpose ships used for these services carry between 15,000 and 30,000 tonnes and are equipped with on-board cranes that can lift up to 700 tonnes in combined mode and even more in individual cases. The container services concentrate their services, which are operated by ships with a storage capacity of 14,000 TEU, on the container terminals in the vicinity of the economic centre of Ho Chi Minh City. Further reloading points can be reached by transhipment. The multipurpose services timetables include both conventional ports around Ho Chi Minh City and Haiphong near the capital Hanoi. Other ports are called upon request. The transit times between Hamburg and Vietnam are between 28 and 35 days depending on the port, direction of traffic and rotation.

The import of goods from Vietnam to Hamburg mainly consists of machinery and equipment, including electronic products and household appliances followed by chemical products, metals and wood products. The main goods leaving the port of Hamburg for Vietnam are chemical products, paper and cardboard as well as food and beverages.

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Maritime

Wartsila to supply Cargo Handling and Fuel Gas Supply systems

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

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Maritime

AD Ports to use Vessel Traffic Management Information System

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

 

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Environment

Jeddah Islamic Port boosts decarbonization drive

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Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay
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.

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