Daily Archives: December 5, 2013

IAG Cargo celebrates 80 years of serving Singapore

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IAG Cargo is celebrating its 80th year of flying to Singapore this month, with the first regular service having landed on 9th December, 1933. The first flights were launched with cargo at their heart, at a stroke creating a faster way of connecting British businesses with their concerns in the East. This revolution in cargo vastly reduced the time taken to send important documents and cargo between countries and set in motion what is today one of the largest cargo operations in the world.

Steve Gunning, managing director at IAG Cargo comments: “This landmark year for IAG Cargo highlights just how established our network is – growing from these innovative beginnings into the network of more than 350 destinations that we serve today.”

“This region has remained an integral part of our operations and is supported by a twice daily service into Singapore. Our fleet has come a long way since our preliminary flight in 1933. We are now able to offer customers fast, direct flights, and a premium service tailored to the types of cargo being transported. I think few in 1933 could have foreseen just how integral a role air cargo would come to play in international business.”

80 years ago the journey to Singapore took 10 days – compared to just 12hrs 55mins today – and involved the loading and unloading of four different types of aircraft as well as transporting goods by train. Before landing in Singapore, the cargo made stops in eight different countries including Egypt, Palestine and India.

The final leg of the journey saw cargo being delivered into Singapore by the Armstrong Whitworth ‘Atalanta’ class aircraft, which could carry a maximum weight of 9,525kg and had a range of 400 miles. Today the route is serviced by IAG Cargo’s Boeing 777-300, which has a take-off weight of 351,500kg, 35 times that of the original aircraft from 1933. Flying at 560 miles per hour, and with a range of 9,125 miles, today’s aircraft are still designed around the concept of speed and connecting businesses.

Not only has there been a huge advance in the aircrafts used; the types of cargo being transported have also changed. The Armstrong Whitworth ‘Atalanta’ class aircraft was primarily loaded with mail shipments in and out of Singapore, whereas today aircrafts see a variety of cargo, from pharmaceutical goods travelling with IAG Cargo’s Constant Climate product, to express manufacturing shipments travelling on Prioritise.

Singapore has historically been an integral part of IAG Cargo’s network, linking the UK with both Australia and the rest of Southeast Asia. Over the years, the route has witnessed numerous pioneering developments in aviation, including being served by iconic aircraft such as the revolutionary Imperial Airways C Class flying boat and the supersonic Concorde.

Today, IAG Cargo offers a twice-daily service from Singapore to London alongside a daily service to Sydney.

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CSAV Surges on Reported Merger Talks with Hapag-Lloyd

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By Matt Craze

Dec. 4 (Bloomberg) — Cia. Sud Americana de Vapores SA surged the most in more than a year after Die Welt newspaper reported that Latin America’s largest container shipper is negotiating a merger with German rival Hapag-Lloyd AG.

The shares rose as much as 27 percent and closed up 13 percent to 28.53 pesos in Santiago, the biggest advance since March 1, 2012. Company executives met last month in Miami to discuss the tie-up, the newspaper reported on its website, citing a Hapag-Lloyd official that it didn’t name. Die Welt didn’t give proposed terms of the deal.

CSAV’s 86 percent loss in the past three years is the worst performance among peers tracked by Bloomberg as the industry struggles to recover from a slump in shipping rates. In response to a glut of new vessels, operators such as AP Moller-Maersk A/S are forming alliances with competitors to lower costs and eliminate excess capacity on trade routes.

The billionaire Luksic family controls Valparaiso, Chile- based CSAV with a 46 percent stake. The Luksic’s holding company Quinenco SA has put more than $1 billion into CSAV in the past two years after the company lost a record $1.25 billion in 2011.

An external public relations representative for CSAV, who isn’t an authorized spokesperson, didn’t have a response to the article when contacted by telephone. The Santiago stock exchange asked the company to disclose any events that would explain the share move, according to a note on its website.

Hapag-Lloyd, based in Hamburg, is Europe’s fourth-largest container-shipping line with a 4.2 percent share of the world’s fleet, according to Alphaliner. The company is owned by a group of shareholders including German tourism company TUI AG and HSH Nordbank. Hapag-Lloyd spokeswoman Eva Gjersvik didn’t immediately respond to an e-mail seeking comment.

Hapag-Lloyd formed an alliance in Asia-Europe trade called G6 in March 2012. The other partners are APL, Hyundai Merchant Marine Co., Mitsui O.S.K. Lines, Nippon Yusen KK and Orient Overseas Container Line Ltd.

Copyright 2013 Bloomberg.

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CMA CGM, Maersk Line, MSC to Establish Alliance for service Improvement

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CMA CGM, Maersk Line and MSC Mediterranean Shipping Company SA have agreed to establish a long-term operational alliance on East – West trades, called the P3 Network. The aim is to improve and optimize operations and service offerings.

The P3 Network will operate a capacity of 2.6 million TEU (initially 255 vessels on 29 loops) on three trade lanes: Asia – Europe, Trans-Pacific and Trans-Atlantic.

While the P3 Network vessels will be operated independently by a joint vessel operating center, the three lines will continue to have fully independent sales, marketing and customer service functions.

Improving services for the customers

The P3 Network will provide customers with more stable, frequent and flexible services.

Each of the lines will offer more weekly sailings in their combined Network than they do individually. As an example, the P3 Network plans to offer 8 weekly sailings between Asia and Northern Europe. In addition the P3 Network will offer more direct ports of call.

The improved P3 Network is expected to reduce the disruptions for customers caused by cancelled sailings.

In order to provide customers with a consistent service offering across the Network, the lines will establish an independent joint vessel operating center.

 Need for efficiency

Declining volume growth and over-capacity in recent years have underlined the need to improve operations and efficiency in the industry. This has prompted the creation of other operational alliances such as G6 and CKYH. Using the P3 Network the lines expect to be able to improve their efficiency through better utilization of vessel capacity.

Subject to approval

The lines intend to start operations in the 2nd quarter of 2014, but the starting date will be subject to obtaining the approval of relevant competition and other regulatory authorities.

In addition, the establishment of the P3 Network is subject to the lines agreeing on definitive contracts. Finalization and signing of the contracts is planned for the 4th quarter of this year.

The P3 Network will based on existing capacities of each member, initially operate a capacity of 2.6 million TEU (255 vessels)

Maersk Line will contribute with approximately 42% of the capacity, of about 1.1 million TEU. MSC will contribute with approximately 34% of the capacity, of about 0.9 million TEU. CMA CGM will contribute with approximately 24% of the capacity, of about 0.6 million TEU of capacity. Vessels contributed to the P3 Network will continue to be owned and/or chartered by the lines.

Vincent Clarc

Chief Trade and Marketing Officer in Maersk Line, Vincent Clerc, on the P3 Network:

We are pleased with this principal agreement to establish the P3 alliance with CMA CGM and MSC.

In recent years, Maersk Line has taken many initiatives to improve on the customer and products side and this alliance will be yet another step in this drive. It will provide our customers on the main trades with attractive, stable services and our Triple-E vessels will be implemented in the network without adding to the overcapacity on Asia-Europe.

Fuel consumption will also be reduced with significant benefits for the environment, and our operations will get even more efficient and competitive.”

CMA CGM, Maersk Line, June 18, 2013

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NYK and Yang Ming reuse containers thanks to APCS platform

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NYK and Yang Ming are the latest shipping companies to adopt the Container Re-Use Module. They will be joined next month by Hamburg Süd and Hapag-Lloyd Benelux.

NYK Benelux and Yang Ming have recently started to participate in the Container Re-Use Module, a collaborative solution that permits more efficient use of containers thanks to interaction between shipping companies. Once an import container has been delivered, the transporter can use a simple web application to ask for the same container to be used for an export booking with the same shipping company. The administration procedure is the same for all shipping companies. The MSC, Turkon Line and OOCL shipping companies were early adopters of the system. They will be followed in December by Hamburg Süd and Hapag-Lloyd Benelux.

APCS (Antwerp Port Community System) was set up several years ago to bring order into the IT applications developed by companies in the port. Applications that are potentially relevant to the entire port community are made available to everybody by APCS. With the new module APCS not only offers a safe container release system but has also created an efficient solution that provides significant sustainability gains, as the technology cuts out many “empty” kilometres in trips to and from empty container depots.

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