Big news from our team - this month we were featured in Maritime Logistics Professional on our modern, innovative TOS. Take a look at the piece and feel free to share with your followers!
Another big announcement in the world of shipping this month is that Amazon is expanding to the freight business. The company is now acting as a global freight forwarder and third-party logistics provider, though Amazon does not own any ships - yet. The organization also announced plans to build its first air cargo hub to accommodate its growing fleet of planes.
Amazon isn’t alone in their quest for logistical domination. 7-Eleven beat both Amazon and Google to commercial drone delivery, delivering 77 packages to customers in Reno, Nevada. Now that is a convenience store.
Mergers & Partnerships
To overcome the downturn in the shipping industry, Hyundai Merchant Marine Co. agreed to forge an alliance with two local rivals, forming a joint consortium called HMM+K2. DP World acquired an additional 23.94% stake in Pusan Newport Company Limited, which is the largest terminal in the Port of Pusan in South Korea. DP World acquired the stake from Samsung Corporation & Subsidiaries to increase its holding to 66.03%.
The Loadstar reports that CMA CGM and China Cosco are the two most likely carriers to buy OOCL, if the main shareholders decide to sell the company. The board of Samra Midas Group, the parent of Korea Line Corporation (KLC), has objected to the planned acquisition of Hanjin Shipping’s Asia-US and intra-Asia business networks.
In other news, Maersk has teamed up with Alibaba to offer online bookings. This new offering uses an innovative online system that will allow shippers to easily book space on vessels. Not good new for freight forwarders.
Signs of Shipping Growth
This month we saw a lot of positive shipping news stories. Starting with a record-breaker, the Port of Antwerp logged 10,037,318 TEU in 2016, breaking through the 10M TEU barrier for the first time.
North Carolina Ports ordered two New Panamax ship-to-shore cranes as part of its plan to invest $120 million over the next few years. And the Port Klang Authority in Malaysia has said they plan to develop and build a new terminal on the nearby island of Pulau Carey, which will be able to handle 30 million TEU of container cargo annually. That’s a lot of boxes.
Finally, there’s a new shipping carrier on the scene, as South Korean construction company, Samra Midas Group, launched SM Line. But we’re not out of rough seas yet. The major Japanese lines (NYK, MOL, & K-Line) lost a few billion in 2016.
Shipping News & Trends
Port Technology posted two interesting pieces this month on shipping technology. The first is a video interview with Kelley A. Duarte, Assistant VP IoT and Strategic Services EMEA at AT&T, on the intersection of ports and IoT. The second piece discusses the possibility of autonomous freight in Singapore. Both are a must-read!
Though sea kidnappings rose in 2016, an international agreement that helped reduce piracy and armed robbery against ships in the western Indian Ocean and Gulf of Aden has broadened its scope to include other maritime activities.
The Loadstar reports on Taiwanese liner, Yang Ming’s financial danger. Ports of Everglades and Palm Beach cancelled plans to sign cooperation pacts with Cuba after Florida’s Governor Rick Scott threatened to cancel their funding through Twitter. But that’s okay. You’re always invited to our HQ in Miami, which is basically Cuba.
To conclude, as part of South Korea’s new ‘Korea Shipping Fund’, Hyundai Merchant Marine is set to become the first beneficiary, receiving the $515 million USD. Not a bad bailout.
And in case you need a refresher on port terminology, we created an infographic on the different types of stripping and stuffing.
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