20091023

Global Soybean & Grain Transport 2009

Global Soybean & Grain Transport 2009 will offer insights into global commodity transportation including: the effect of worldwide economic instability, initiatives to broaden the potential for containerized shipping, and perspective from rail, port, ocean freight and other industry participants. In addition, the conference will include "behind-the-scenes" tours of local shipping industry facilities.

20091022

Ukrainian Ports on Danube to Be Part of European Grain Shipment System

Ukrainian Ports on Danube to Be Part of European Grain Shipment System

Kyiv. OREANDA-NEWS . October 20, 2009. The countries of Visegrade group of Hungary, Poland, Slovakia, Czech Republic supported the Ukraines initiative on inclusion of harbour capacities of the Ukrainian Danube into European grain shipment system established within EU. The offer was set forth by the Agrarian Chamber of the Ukraine (APU) the organization that unites grain sector representatives.

The aforementioned system is put forth by EU within a single transportation policy creation that is aimed to reduce grain cargo transportation costs. The problem of Visegrade group is absence of direct sailings to the sea freight. The Ukraine suggested including largest port enterprises of the Ukrainian Danube, Rein and Izmail state seaports into the system of entry of the abovementioned countries into the sea freight market.

Copyright (c) 1997-2008 "OREANDA-NEWS"

October 20, 2009

REVUE FREIGHT MARKETS

Panamax rates remained relatively firm for a period, bolstered by heavy demand, particularly in the North Atlantic. Rates then succumbed to the general weakness in the dry bulk market but subsequently steadied. They climbed sharply in October, boosted by busy coal and grains chartering on routes to Europe and Far East Asia, as well as tighter tonnage supply. The Panamax market benefited from the splitting of Capesize cargoes into smaller shipments. The most commonly quoted transatlantic round voyages rose from about USD 25 000 daily in May to about USD 39 000 in November. On routes from South America to Europe rates were recently quoted at USD 27 000 daily. North Pacific rates were also firmer due to a heavier volume of enquiries, especially after coal from Australia and iron ore from India became cheaper than in China. Rates on the route from Indonesia to China climbed to USD 35 000 daily. In the timecharter market, short period contracts for four/six months were quoted at about USD 31 000 daily in the Atlantic and USD 29 000 in the Pacific.

In the Handysize/Supramax sector, Atlantic rates were generally steadier over the whole period, firming on solid demand for grains and limited spot tonnage availabilities in the US Gulf, northern Europe, the Black Sea and the Mediterranean. Recent grain fixtures from the US Gulf and South America to Northern Africa and Europe ranged between USD 29.00 and USD 31.00/tonne. A short-period timecharter was settled at USD 18 250 daily. In the Pacific, rates from the Indian Ocean were very strong, those to China quoted at about USD 33 000 daily.

A build-up of surplus tonnage saw Capesize rates fall sharply in July after the steep increases seen in previous months. This reflected China's much-reduced mineral demand, particularly from ports in Brazil and Western Australia, exacerbated by the growing Capesize fleet. The fall was also attributed to a seasonal downturn in coal shipments, easing port congestion in China, with more ships becoming available, and a decline in the freight futures market. However, after falling by nearly 70 percent during the third quarter of the year, rates rebounded in October on renewed iron ore and coal buying interest from China, returning to the levels seen in June 2009.

20091019

EUROPE LEADS THE WAY -SHORT SEA is the ANSWER to EUROPE cargo TRANSPORT

Grain transportation's green alternative
Short sea shipping proponents say utilizing North America's 'marine highways' can relieve truck, rail congestion


(World-Grain.com, October 01, 2009)
by Leo Quigley

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In the 2008-09 crop year, U.S. and Canadian farmers combined to export nearly 50 million tonnes of wheat. When you consider that the bulk of this grain had to be moved by truck from the field to a terminal and then by truck or rail to an export position, you begin to get some idea about the number of tonne-miles wheat growers add to already congested highways and rail lines on both sides of the border.

Add to this the number of trucks needed to move North America’s annual harvest of feed grains, oilseeds and specialty crops to export positions, and you get some appreciation about the number of trucks and intermodal containers grain farmers alone contribute to the continental road network.

While transporting grain and agricultural products to market is essential to the economies of all three North American Free Trade Agreement (NAFTA) partners, highway and rail congestion are becoming a serious problem in many areas of the continent where bumper-to-bumper traffic and overburdened rail yards are reaching near-gridlock conditions.

Some think the answer is to lay down more asphalt, steel and concrete. Some think not, and are convinced North America’s "marine highways" are one way of taking a significant number of trucks off the road and containers off trains in favor of its network of rivers, lakes and coastal shipping lanes.

While they recognize that North America’s waterways already play a major role serving transportation needs by providing a liquid highway for grain ships through the Great Lakes, barges down the Snake and Columbia Rivers, or down the Mississippi River and along the Gulf and Inter-coastal Waterway, they also offer compelling reasons for adding more water to the transportation mix.

Mark Yonge, spokesman for the Alexandria, Virginia, U.S.-based Short Sea Shipping Cooperative (SCOOP), told World Grain there is a growing interest on both sides of the border in short sea shipping. SCOOP is comprised of labor groups, ship operators, potential ship operating companies, ship classification societies and ports, and is sponsored by the U.S. Maritime Administration (MARAD).

"There’s a significant amount of activity that’s going on, not only from our cooperative but from the logistics providers and the shippers, recognizing that carbon footprints are going to be very important (in the future) and fuel costs are something that are terribly unpredictable."

Many factors are at play in the transportation industry, such as environmental legislation and a looming shortage of trucking companies and drivers, which could negatively affect a shipper’s ability to get goods delivered to its customers, Yonge said, noting that these factors are making the marine highway system "look like a great option."

Recently, Rep. James L. Oberstar, a Minnesota Democrat who is chairman of the House Transportation and Infrastructure Committee, gave support to groups such as SCOOP by proposing to restructure the Department of Transportation and develop a comprehensive national transportation policy.

In a speech to the Propeller Club in Washington, D.C., U.S., Oberstar said: "We are going to transform the future of transportation in America and put maritime in the front ranks. We also need to embrace short sea shipping. This is one that I think has great promise."

In his drive to give short sea shipping a larger profile, Oberstar recently introduced a bill in the House of Representatives that would exempt ship and barge companies carrying nonbulk cargo from the existing Harbor Maintenance Tax, which has long been a deterrent to short sea shipping in the U.S. Also, he is pushing hard to have a short sea shipping initiative included in any stimulus bill.

MARAD: ENCOURAGING ALTERNATIVES

Jim Pugh, director of MARAD, attributes the increased interest in short sea shipping to planners in the public sector coming to the conclusion that the U.S. cannot "build its way out of its capacity and congestion problems."

"We have to start looking at alternatives that not only relieve congestion, but improve air quality in the major urban corridors in particular," Pugh said.

While MARAD concentrates primarily on the U.S. Marine Highway, it also meets regularly with its NAFTA partners, Canada and Mexico.

"We have what is called the Short Sea Shipping Working Group," he said. "It includes Transport Canada and the Secretary of Transport and Communications in Mexico. We meet regularly and we outline things that we can work on jointly, whether they are procedural things, like customs, or identifying markets."

Pugh said there is growing interest in short sea shipping in the agricultural community. "Some of the major grain companies are environmentally sensitive, and they realize that the use of water transport is a greener alternative," he said.

While inland rivers and waterways offer potential for moving increased volumes of non-bulk freight such as truck trailers and containers, Pugh believes the coastal areas of North America hold the greatest promise.

"The coastal waters offer the greatest opportunity to divert both domestic and international freight going up and down those major corridors," he said.

Pugh said the opportunities for increased short sea shipping in coastal areas include both the Pacific and Atlantic coastlines, the Great Lakes and the Gulf of Mexico.

"But for it to really take hold and divert significant amounts of traffic, I think we’re going to have to have purpose-built vessels built specifically for that trade," Pugh said. "The biggest volume is 53-foot trailers. "And we don’t have a lot of vessels in the U.S. inventory that are set up to handle domestic trailers on a roll-on-roll-off (ro-ro) basis."

INFRASTRUCTURE HURDLES

However, while there is a shortage of vessels to handle truck trailers in the U.S., the largest operator of tugs and barges on the West Coast — Vancouver, British Columbia, Canada–based Seaspan International — does have the equipment together with a C$7 million ($6.3 million) contribution from the Canadian government to expand its short sea shipping facilities.

Having operated tugs and barges from Mexico to Tuktoyaktuk, Seaspan is familiar with the Pacific coastline and its potential for moving freight by water rather than the interstate highway that parallels it.

Steve Roth, vice-president of business development for Seaspan, said: "I think what’s focused attention on short sea shipping is the use of containers. When people now talk short sea shipping, they are really thinking of moving containers."

The major problem, he said, is the lack of infrastructure on North America’s West Coast to accommodate short sea shipping.

"First you need the real estate," he said. "Then you have to build an infrastructure, and that should have rail and truck access. So it’s not a small investment."

It’s also critical that the facility has a concentration of containers or trailers to handle.

As an example, Roth offered the following scenario: "Some exporter brings in some containers and, instead of trucking them locally to his distribution center, he decides to move them by barge.

"You can’t move five containers," he said. "That doesn’t make sense. Whatever the size of your barge is, you have to max it out. Now you have to take it some place that makes sense to him. So now you’re starting to look at maybe some type of intermodal facility that has truck, rail and marine access. It starts to get complicated.

"At Seaspan, we have built four barges specifically to handle the loading of containers (the barges are designed to hold 168 forty-foot containers)," Roth said. "These could go into service tomorrow if we had a customer, a place to load them and a place to discharge them.

"We all would like to see it happen faster. But it’s going to take government; it’s going to take the ports; it’s going to take shipping lines; it’s going to take the unions; it’s going to take everybody to get involved to make this happen quicker."

EUROPE LEADS THE WAY

With its dense population, a history of high petroleum prices and an excellent system of rivers and waterways, Europeans have promoted the advantages to short sea shipping for generations. And rather than taxing waterborne traffic, European governments have encouraged cargo to move off the highways and onto barges and boats.

Today, almost 90% of the E.U.’s external freight trade is moved by water, and short sea shipping represents 40% of trade within the E.U. in terms of tonne-kilometers.

In its "Strategic Goals and Recommendations for the E.U.’s Maritime Transport Policy Until 2018" issued in January, the Directorate–General for Energy and Transport predicted that maritime transport in the E.U.-27 will grow from the 3.8 billion tonnes in 2006 to roughly 5.3 billion tonnes by 2018. This will mean increasing the capacity of ports to handle short sea shipping cargo and boost productivity.

Initiatives in the recommendations that would lead to this increase in productivity include:

eliminating the red tape and crossborder barriers that exist between countries and establishing a true "European maritime transport space without barriers";
putting in place a European Ports Policy to encourage fair competition, financial transparency, non-discrimination and cost-efficiency;
ensuring that the right conditions exist to attract investment in the ports sector that can be used to modernize and expand the infrastructure;
issuing guidelines for community environmental legislation aimed at ports; and
reinforcing the E.U. strategy for ensuring the full deployment of "Motorways of the Sea" projects, facilitating the start-up of intermodal transport solutions, simplifying administrative requirements and supporting the European Commission’s initiatives for greening transport.
These initiatives are supported by E.U. funding programs such as the Trans-European Transport projects and Marco Polo, a program that funds projects designed to shift freight from road to water or rail, providing less congestion, less pollution and a more reliable delivery of goods. The current budget is €450 million ($640.53 million).

Based in Vancouver, British Columbia, Canada, Leo Quigley writes for a variety of national and international publications specializing in agriculture and transportation. He can be reached at Quigley@dccnet.com

20091016

ADM Buys 5 Cargo Ships to Add Flexibility to Transportation Network

ADM Buys 5 Cargo Ships to Add Flexibility to Transportation Network
Associated Press -- DECATUR, IL -- October 15, 2009 -- Agribusiness leader Archer Daniels Midland Co. said Thursday it has acquired five cargo ships it says will help it transport grain worldwide with greater flexibility and at lower cost than outside carriers.


PAID ADVERTISEMENT The company said the oceangoing dry-bulk commodity vessels range in length from 179 meters (587 feet) and 225 meters (738 feet). They can carry between 36,000 tons and 67,000 tons each of all types of grain, grain products and bulk commodities between ports in Europe, South America, Asia and other parts of the world, ADM said.

"Connecting these regions on a global scale aligns with our strategy to expand the geographic scope of our business," Royce Wilken, an officer of ADM Transportation, said in a statement. "In addition to providing us greater control of the supply chain, these vessels will improve operating margins, and help to position us ahead of our competitors with regards to net delivery cost."

ADM said the ships will augment its transportation network, which also includes 1,700 barges, 58 tow boats, 29 line boats, 23,500 railcars and 1,600 trailers.

Global Soybean & Grain Transport 2009 will offer insights into global commodity transportation including: the effect of worldwide economic instability

Global Soybean & Grain Transport 2009 will offer insights into global commodity transportation including: the effect of worldwide economic instability, initiatives to broaden the potential for containerized shipping, and perspective from rail, port, ocean freight and other industry participants. In addition, the conference will include "behind-the-scenes" tours of local shipping industry facilities.

Im a strong believer that in a NEW FUTURE , not far away , we will see DRY-BULK Agro.Feed transported in CONTAINERS from Origin to FINAL INDUSTRY DESSTINATION

20090915

KIEV, UKRAINE — shipping Ports

KIEV, UKRAINE — APK-Inform reported on Sept. 15 that grain shipments through the Mariupol seaport increased despite an overall decrease in cargo volumes.
APK-Inform reported that the Mariupol seaport decreased cargo volumes by 27.7% to 8.09 million tonnes during January-August of 2009, compared to the same period of 2008. However, during eight months, grain shipment through the port nearly doubled to 556,100 tonnes.
The Mariupol port is one of the largest ports in Ukraine, the agency said. The port provides shipment of ferrous and nonferrous metals, cast iron, coal, coke, loam, fertilizers, sulfur, technical equipment, grains, containers and other commodities.

20090911

WORLD SHIPPING (CHINA) SUMMIT 2009

12-13 November 2009, Qingdao, ChinaOrganised by COSCO Group, Drewry Shipping Consultants, Maritime China, & The Journal of Commerce
Please visit: www.shippingsummit.com for further information!

Shipping has been buffeted and battered during a terrifying twelve months of turmoil that have seen profits obliterated and fortunes lost. Now that the world economy seems to have reached the bottom, economists are again looking towards China to lead the way back to prosperity. The industry's top executives and analysts will gather for the World Shipping (China) Summit in Qingdao on 12-13 November to work out where the industry goes from here. As early as May last year, World Shipping (China) Summit was cautious amid the euphoria of a booming market, with its theme "Assessing carefully, rethinking deeply"." The Change" will be the theme of World Shipping (China) in 2009. The summit will endeavour to find the launch-pad for the next shipping market take-off, with a diverse range of views expected from the world's top executives and most resourceful experts.Ready For Amid anxiety and panic, confusion and hesitation, the shipping industry is facing the most challenging time in history. While the panic seems to be over and stock markets have recovered some of their losses, the world economy still seems to be frozen in the summer of 2009. We strongly believe, however, that there is a way forward to prosperity. However, it is not enough just to be aware of the global crisis. Companies need make the right assessments of the market and take shrewd decisions - as they always do - but timing
is now more crucial than ever. Clinging on to old procedures and practices, whether through fear or inertia, will lead to hidden dangers. Mastering market movements and making apt and clever changes requires deep thinking. Pressure in a crisis is also the spur for innovation. With the great successes achieved over the previous five years at our World Shipping (China) Summit, we will continue to focus on high quality, high performance and high standards, and we are aiming to create another successful exchange platform. In line with this year's theme of "Ready For The Change", we are inviting the leading figures from the shipping industry to present and discuss with us various topics in depth:
· when will the economy recover?
· how to assess our client base
· rethinking the growth patterns of our industry
· rethinking our core competences
· how to become the forerunner and initiate innovation and reform in a weak market

"Ready For The Change" means providing strategic directions and action plans to help us rebuild our strength; bringing confidence and encouragement and seeking a new road for growth. We believe this "winter" will create a turning point for many companies, and now is the time they will sow the seeds of their future success.

20090721

Freight rates to rise

Some main shipping container companies, including Evergreen and Yang Ming, said that they will decide upon increased freight rates in July, the price will increase by US$200~300/TEU.The new freight will exceed US$900/TEU to Europe. Maersk Line predicted that container volume in 2009 will drop more than 10 percent, even though the freight has been raised twice until now, the container volumes will not recover much at present, nor will the level increase in 2010.