Category: Sea Cargo

  • Digging Out the Container Ports of Africa

    Over viewing some of the busiest ports of Africa

    Africa is the world’s second largest continent covering 20% of the earth’s land and 6% of the earth’s surface. It has over 100 ports and amongst them some are mainstream. The water surfaces that are linked to this continent include Atlantic Ocean, the Indian Ocean and the Mediterranean Sea. As being surrounded by such important water reservoirs, Africa becomes a very important cargo shifting region.

    It is not important for its own import and export but also as a terminal for travelling ships to another region. Africa’s 90% cargo activity is conducted through sea, which makes this medium as a key source for the economy of the African countries. So, development of ports is very important for the trade of this region. Cargo to Africa is the best source of cargo shipping.

    Saldanha Bay:

    It is one of the largest and deepest natural ports in Africa with depth measuring 23m. An artificial breakwater improves the conditions within the bay, but during winter the severe conditions makes the ships to anchor or stand out to sea. The shippers are advised to always have crew on board in case of any emergency. The port provides general facilities and have the capacity to entertain large ships.

    Cape Town:

    The cape town port is very well equipped and is a full-service general cargo port. It operates the whole week and 24-hour facility is also present. The facilities offered at this port includes a 200-ton SWL floating crane, two graving docks, a syncrolift as well as onshore and quayside areas dedicated for this activity.

    Mossel Bay:

    This port is situated between Cape Town Port and Port Elizabeth this is the only port that operates two berth points within the port limits. For the repairs of container ships the maritime engineering firms are always present to help the shippers in any situation.

    Port Elizabeth:

    This port is geographically well positioned which makes it a terminal that can handle multi-cargo. Meaning that not only one type but of many type cargo can be handled at this port. The cargo that reaches this port include dry and liquid bulk, general cargo and container cargo.

    East London Port:

    It’s a strategically situated port, and it is the only commercial river port on the South African coastline. This port is centrally located both nationally and internationally. Its strategic importance lies in the fact that it acts as a gateway between Africa and the global market.

    Durban Port:

    Amongst the busiest ports in Africa Durban Port is very popular for its cargo traffic. It is one of the busiest ports in Africa. It is a multi-cargo port with ship repair yards and facilities. It offers itself as a potential offshore service point for the ones in trouble.

    Port of Richards Bay:

    Today, Port of Richards Bay is one of the world’s leading bulk ports. It is a very old port which was mainly established for exporting coal.

    The plans which are under consideration include improving the repair services and to provide additional infrastructure within the port as well as take advantage from the Industrial Development Zone.

  • Third Biggest Sea Cargo Growth at Panama Canal

    Gigantic Figures for the Fiscal Year 2016 and Different Factors for Major Growth

    The 2016 fiscal year is about to close and according to Panama Canal Authority (ACP), it recorded the third-highest annual tonnage in its history. The figures tell that there is cargo shipments of 330.7 million tons transferred through Panama Canal from 13,114 vessels from 1st Oct-15 to 30th Sep, 2016.

    Amongst these 13,114 vessels, the 238 vessels were neopanamax vessels which took advantage of the newly opened expanded canal within three months of its operations having the transfer weight of 18.2 million PC/UMC.

    What Did Panama Canal Administrator Say?

    Jorge L. Quinjao, the administrator said, “Despite the international shipping downturn this past year, we recorded one of the highest annual tonnage figures since the opening of the original canal 102 years ago. The latest success reinforces the continued strategic importance of the route and the growing value that recent investments in the canal will bring to the maritime industry.”

    According to his statement, the Panama Canal Management is happy on this massive cargo growth in Africa and South America which took them on to the third spot of the Annual Cargo Tonnage.

    Main Factor of Growth

    According to the analysis done to monitor the flow from where the traffic came, it showed that the container segment continued to be leading foundation of Panama Canal traffic. After the accountability, it presented that there is a total of 36% growth from this segment which total cargo received.

    At the total figures, 119.6 million container vessels contributed transit through the waterway in which 13.4 million PC/UMS are transferred through the expanded canal.

    LNG Segment

    There is another factor of this mighty growth and that was the introduction of the Liquefied Natural Gas (LNG) during the ending months of 2016 fiscal years. The figures showed that the LNG contributed the total transit of 1.5 million PC/UMS and surpassed initial Panama Canal forecasts.

    Future Predictions for Panama Canal

    Taking in mind, the cargo gurus are of the view that in the coming 2017 fiscal year, the Panama Canal will continue its way on enhancing the sea cargo transit by advancing the projects such as Corozal Container Terminal, which is currently an ongoing process.

  • Fashion Icon Brand, The Deacons, Reduces Cost by stopping Airlifting Cargo

    Switching towards Sea Cargo from Air Cargo, The Fashion Retailer expands business

    The Fashion retailer Deacons in Nairobi, East Africa has been struggling for a long time ago to cut their costs through any mean. Now they are finding the way how to get rid from huge expenses. They have targeted big plans to reduce their shipping costs. The plans are too big in their economic view that they reduce the cargo costs to 80%. They totally shifted airlifting cargo to sea transport.

    What Peter Njoka, Deacons Chairman Said?

    Deacon has already experienced a big cost saving by delivering their products direct to the customers rather than going through South Africa. The Deacon’s chairman said, “We are seeing out transport costs reduce by up to 80% on the Dubai-China route”. He also said that their decision of skipping the air Cargo via South Africa and moving it through sea has already reduced 50% of cargo cost. By doing this, they will surely get better position to compete on pricing with its rivals in the fashion retail sector.

    Deacons Plans after Cost Cutting

    A cost deduction up to 80% in any sector means you have added profit wings with you. The same is the case with the fashion retailer. After smartly planning cost cutting, they planned to open new outlets away from Nairobi by doing rental agreements. Eldoret, Kisumu and Meru are their next target markets.

    Muchiri Wahome, the retailer’s chief executive said, “we will go in as soon as the malls are completed”. Furthermore, he also explained that it is not possible to reveal which store will open first because the decision depends on completion dates from real estate developers.

    The retailer’s chief executive has also explained that they are working to increase the outlet numbers to 66 after the big cost saving from air cargo.

    The smart decisions from Deacons are made after smart planning of Air cargo cost cuttings. That’s why they are able to expand their business to the new horizons.

  • Colossal Cargo Ship Benjamin Franklin to Operate in Pacific

    Benjamin Franklin is one massive container ship that will start carrying cargo from May

    This colossal container ship and five like it are going to carry cargo across Pacific Ocean but they would not be coming to Puget Sound Ports. These ships are planned to start their journey from May this year.French-owned CMA CGM Group has made an announcement on Thursday that the trans-Pacific deployment of their gigantic cargo ships is real close and each one of these will be able to carry 18,000 TEUs. Thanks to these mammoth ships, delivering sea cargo to Africa, China, UK, US and Canada along with other international destinations will be quiet cost effective.

    Most of the cargo will be coming from China and will be delivered to international markets especially the US. Early this week, the Benjamin Franklin made quiet some news locally as well as globally when it reached the Terminal 18 at Seattle. It attracted plenty of notables and they all have shown their willingness to bring more and more ships like this one to their waters. That is a good news but they will have to wait as CMA CGM Group’s pearl River Express Service is going to use all these cargo ships on the route between West Coast of the United States and China, and unfortunately, Seattle does not come on this route.

    These ships are moved as constant stream in a circle, in China they will be calling at five ports before they arrive at the Port of Long Beach where they will unload import cargo. From there onwards, the ships will move up the coast to the Port of Oakland where they will load export cargo and finally head back to China where they will unload this cargo.

    The Benjamin Franklin ran a similar route early this week up the West Coast from Long Beach to Oakland, from where it went to Terminal 18 in Seattle. ED McCarthy, Chief Operating Officer, said Monday that they will be bringing the ship to service between China and Europe. He further added that “it will go back into Europe-Asia trade, that’s what the vessel normally does. The other five are in the Europe-Asia trade today. This will join in the Europe-Asia trade.”

  • How to be Smart When Sending Cargo to Nigeria?

    During the cargo delivery, human mistakes – caused by the human actions – are the common factor. What are the common mistakes that Nigerians do in the shipping process? How these shipping errors can be minimized?

    Like other life projects of the world, the shipping industry of Nigeria is also difficult and risky. There are many risks and difficulties in the Nigerian import and export business.  Many mistakes arise from the human actions which makes the shipping so difficult. These mistakes usually arisefrom the use of outdated methods of shipping and the lack of sensible about the shipping business. What major mistakes they do with the import and export business? The two major mistakes of Nigerian shipping business are given below.

    Indecorous packing of the goods

    The outer cover of the body saves the internal organs from damage and harm. In the same way the unusual wrapping of the shipment is not proved a healthy protector of the interior items. The packing is the vital element in the process of the shipping. Good packing keeps your products safe from damages and environmental factors. The damaging of the goods during the process of shipping happen routine wise due to human and mechanical errors. The fragile items are found in the list of mostly damaged items in the shipping process.

    Environmental conditions also effect the goods during the shipping which is apart from human error.  But these risks can be minimized by the use of good quality packing for the shipments. The care of the cargo handling staff is also considerable. They play an important role in the careful delivery of the goods.  This damage can be decreased by the proper monitoring of the cargo before delivery.

    The packing must be high quality for the safe shipping. Ceramics, breakable plates, electronics and any other thing that is fragile in nature required good packing for the shipping.

     Why Customs Seizure Happens?

    The mostly happened Nigerian customsseizures can be stopped by the removal of the agents and the importers from the process of the shipping.  What are the causes of the customs seizure? What the shipping agent do with the delivery? The following will help you to understand the customs seizure. The shipping agents play a game during the clearance process by hiding the airwaybill of the cargo. They do not pay the customs duty of the cargo.

    They hide the airway bill so cunningly and if this is detected during delivery, it could lead to customs seizure. The reliance on the cargo agent must lead your cargo to the customs seizure. The importing and exporting of the illegal things and the nonpayment of the duty are the major causes of the Customs seizure.

  • Elbe River Stuck Container Ship Rescued

    The two previous attempts had failed to free the container ship which had run aground

    What happened?

    A container ship had run aground in the Elbe River near Hamburg almost a week ago. The authorities made two attempts previously which had been unfruitful and failed miserably. It is expected to continue its voyage after the rescue.

    Many container and cargo ships run aground every now-and-then while they sail to deliver sea cargo to Africa, United State, China, United Kingdom and other countries of the world.

    When the rescue efforts began?

    At 2 a.m. local time (o1:00 UTC/GMT), the rescue efforts began and after 20 minutes of extensive efforts the cargo ship CSCL Indian Ocean was freed up. This ship had run aground almost a week ago in the Elbe River about 22 miles northwest of Hamburg. During the rescue attempts the affected section of the Elbe River was closed off to traffic. This operation was facilitated by the south-westerly winds in the North Sea and high tides on a new moon, then there were 12 tugboats that finally released the container ship.

     

    The ship is towed back into the shipping channel and five tugboats pulled it safely to the Hamburg at about 5:30 a.m. local time.

    Is the ship healthy enough to continue its voyage?

    The accident had been caused by a defect in the steering system, said the rescue team from the “Havariekommando Cuxhaven”. They said after initial check-ups that the steering system was in working order again and they have not found any evidence of any lasting damage. The authorities said that it will take a week for further check-ups and after that the cargo ship may leave Hamburg to continue its voyage on due course.

    What are the details of the vessel?

    CSCL Indian Ocean is one of the largest cargo ships in the world which was put in operation last year. It is 400 meters long and 59 meters wide and has the ability to carry the maximum number of containers is 19,100 teu. If you don’t know what teu is then in terms of measurement it is twenty-foot equivalent unit. There are only a few cargo vessels in the world that exceed 19,000 teu.

  • How You can Make Your International Logistics Business Successful

    In this connected world work together and best management is the key practice to make the logistics business successful.

    In this modern period of time, it’s nothing unexpected that many companies are moving their supplies to low price logistics providers. Nonetheless, a number of companies are finding that higher than predicted transportation expenses finish out the exceeding advantages.

    According to a research by Aberdeen Group the worldwide deliveries, price twofold as much, take five times as long and have five times more changeability than national shipments. So the question is how can companies can overcome the difference gap by the use of global logistics? Here are a few useful tips about how companies can make their logistics business successful.

    An effective collaborating  team is the key to develop the logistics business

    The companies with successful performance realize and influence the capabilities of their collaborators to act as one resilient team.

    The use of information technology in the collaboration is the most positive part of the global logistics. Cooperation and team work is fruitful for the logistics business development. To make the logistics business more healthy and strong it is important to join hands with an effective team. Pick a partner that can figure out your vision and mission and give reverence  to your goals and needs.

    A strategic team management is a key to business growth

    A solid strategy is necessary for the development of the international logistics business. A strategic work and team management are the key practice to achieve the success in the world of logistics.

    Having a sensible and strategic system is a key best practice to accomplish the objective of logistics business growth. This helps you to drive continuous improvements in your business and gives you a direction for new initiatives. It is crucial to express your ideas  to your partners.

    Up-to-date system and the use of technology

    In this robotic world the use of technology is crucial for the growth of the any business. In this world of technology, any company does not attention on the technology is bound to be beaten by its opponents in the field of business.

    The use of technology is fruitful to drive your business necessities and it is the most common idea in among the companies of high performance. Mostly the developed logistics companies prefer the use of technology over the manual management system. The use of technical system in the logistics business has allowed the companies to be always one step ahead of their rivals in the same field.

  • Nigerian Shippers Council Starts Cargo Tracking

    Nigerian shippers council starts tracking the cargo to check swift practices and opted for the International Cargo tracking Note (ICTN)

    Shippers’ Council begins cargo tracking to determine the sharp practices, the Nigerian Shippers Council has opted for ICTN systems with an early revenue target of around $87 million. The new tracking policy will also assist the country authorities to ascertain of goods coming to the country and it will be implemented Nigerian port transportation authorities.

    Estimated Cost To Instigate The Scheme

    According to the documents based on the 2014 NPA operational cargo statistics, the sum of N17,238,054,156.84 or $87,060,879.58 is estimated to instigate the system. The system proceeds to be generated at the present rates of administrative  fees for different cargo types.

    All cargo types supposed to depart from Nigerian ports either they are exported cargo imported from other countries or transit cargo must take a Nigerian Shippers Council entry number or ENS when it is a cargo from the UK or anywhere else from the world. An Exit summary Number EXS shall be needed in case of exports departing fro Nigeria. The Bill Of Lading must show these numbers and the final manifest of the vessel also require thee numbers.

    Advanced Cargo Declaration process

    The Shipper can use top 5 cargo carriers for shipping purpose. The shipper of the cargo according to the declaration is the person who is responsible for the declaration procedure. He delivers all the relevant information to the cargo.

    The procedure will ensure that the declaration made, is correct and all the information provided is true.  If the vessels are chartered ships, the Advanced Cargo Declaration shall be completed by the Chartered who issues  the Bill of Lading rather than the company owning the vessel.

    Projected Revenue Breakdown

    The projected revenue breakdown is mentioned according to the type of the cargo shipped, Containerised cargo at N5,263,731,000, while the Ro-Ro Cargo has N491,047,920, General Cargo N736,444,912, Bulk Cargo at N2,282,225,580, and the Crude Oil exports at N3, 464,604,744.48.

    Presidential approval by Ministry of Transport

    On 14th of May Ministry of Transport has given the presidential approval for the ICTN system to Nigerian Shipper Coucil NSC, but the scheme yet to be taken into effect.

    The documents show the presidential approval letter which is as, “Please evoke that following the presidential approval to the Federal Ministry of Transport (FMOT) for the re-introduction of the International Cargo Tracking Note (ICTN) scheme and the execution of the system by Nigerian Shippers’ Council – being the Interim Economic Regulator of the port sector in Nigeria, as carried to the council by the Director (Maritime Services) vide a letter Ref. T.0160/S.30/T4C dated 14th May, 2015, the Hon.

    Minister of Transport, in line with the presidential approval, requested Nigerian Shippers’ Council to work out/negotiate the Terms and conditions of the implementation contract of the scheme with Messrs Transport and Port Management System (TPMS) Nigeria Limited, as the technical implementation agents, and enter into an agreement with them in that regard.”

  • Boeing 747’s Next Stop is Elephant’s Graveyard

    Cargo market was the playground of the Jumbo Jet for quiet long but it is having its fall now

    Citing the collapse in demand of Jumbo Jets, world’s most renowned aircraft manufacturer, Boeing, has recently stated that it is reducing the number of 747s being produced to only one every two months. The original 747 is best known for its vital role in cargo services, delivering cargo to Africa, major Asian cities, U.S., and other countries around the globe.

    Previously, Boeing announced its plans to slow down the production of the 747 jets to just one jet a month from 1.3 jets but now this number has been cut down further. 747-8 is the newest model of 747 that arrived in 2012. It is featuring plenty of new and advanced manufacturing techniques used in 787 and other aircraft which are lighter, newer and cheaper-to-operate.

    Boeing has received only 121 new orders and of those, only 51 were in configuration to carry passengers, rest of them are air cargo freighters. The 747 has made a massive contribution to global tourism and cargo services. The 747-400 is a remarkable machine that doesn’t need a touchdown for more fuel on a twelve-hour journey, as an example, Europe to all major Asian cities.

    In jet engine manufacturing, significant improvements in power and reliability makes it possible to rival the capacity and range of Jumbo Jet with twin-engine aircraft. That eventually makes the 747 a less attractive buy and more expensive to operate. The 777 passenger carrier is working on the same idea and it can carry more than 450 passengers in some configurations.

    According to Boeing, the 2015 was one of the worst year as there wasn’t a single new order for 747 as the cargo operators are not buying anything at all. The air freight demand fall indicates the economic conditions are pretty bad.

    For Boeing 747, there is only one permanent customer left and that is none other than the White House. The new 747-8s check all the boxes to serve as presidential transport. This is only reason why the US military still likes quad-engine airliners. They can install anything in it to meet the requirements to keep the POTUS.

  • East African Countries To Use Electonic Cargo Tracking System

    Kenya and Rwanda to replicate electronic cargo tracking system previously used by Uganda

     

    Kenya and Rwanda confirm that they are looking to replicate the electronic cargo tracking system (ECTS)this year. This system will ultimately reduce the cost of transporting cargo on the northern corridor. The heads of the state summit in Kigali stated that the process of procurement and installation will be finalized soon to address the issues of cash deposits and overstayed cargo in Mombasa.

    What the new system will bring new?

    The new system is expected to lower the cost of transportation of cargo and time. It will also reduce the curb thefts of cargo while delivering from one place to another and diversion of goods destined for its market from the port of Mombasa. The revenue authority commissioner of Uganda for customs

    The Revenue Authority commissioner for Customs Richard Kamajugo, the framework will enhance the productivity of Customs procedures bringing about higher income accumulations.

    Benefits of electronic tracking system

    There will be a pre-entry clearance of goods route before the ship touches base at the port of Mombasa and the containers, which will spare time, said Mr Kamajugo, including that the new framework will likewise give real time data on the area and the status of the payload in travel. Prior to the presentation of the innovation, one could just know the area by calling so as to travel load the driver.

    ECTS trigger an alarm whenever there is a diversion from the actual route, it will also inform on every unusual or long stopover and it will even inform the authorities if someone tries to open the containers illegally. The new system will help in sealing the loopholes that cause these countries loss in revenues through suspected under-declaration of the value of the exports and theft of cargo. The electronic tracking system had helped the traders in Uganda to minimize the costs and time of doing business from one week to just one and a half day.

    Costs of the system

    When the trucks face delay along the transit route, it costs $200 to $250 per day. Sometime the total cost or maybe a partial cost is passed over the owner of the goods. All this process was increasing the overall cost of goods being transported through this transit route. It was not only because of the unusual stoppages in the corridor, but the distance also was a factor.

    The New system will ensure that the countries will get precise information on imports and exports of goods from the port to the destination.