Bank of Russia to create digital ruble payment system with the UAE

08.11.2023

The Bank of Russia is ready in cooperation with the UAE regulator to build up a system of fast payments and settlements with the use of the digital ruble for individuals and the business, First Deputy Governor Olga Skorobogatova said at the Finopolis forum.

"We will work out the fast payment system and the CBDC [central banks digital currency - TASS] because the colleagues are ready with the digital ruble and we are ready. If we solve the issue of client identification, then I think we will be able to build up a normal system of payments for citizens and the business between the two our countries in a year at the least," she said.

The Finopolis forum is being held on November 8 to 10. The Bank of Russia acts as its organizer in partnership with IT and financial market champions.

IoT technology will differentiate dry container services

31.10.2023

The Internet of Things (IoT) has been a largely untapped resource for dry container shipping. ORBCOMM’s new-to-the-market dry container monitoring solution offers unprecedented transparency, cost-effective proof of compliance and untapped commercial opportunities, says Christian Allred, Executive Vice President, International Sales, ORBCOMM.

Carrying around 90% of non-bulk cargo transported by sea, dry containers are fundamentally important to global trade. Despite this, a number of operating challenges continue to beset the market, including visibility of cargo location, condition and integrity, and optimising supply chain efficiency. After weathering unprecedented volatility in 2020 and then bouncing back to post record profits in 2021, recent market conditions have brought these perennial challenges into sharp relief.

The container shipping market’s outlook changed dramatically in September 2022 when pessimistic economic forecasts and reduced consumer demand combined to send spot freight rates tumbling. Although the IMF forecasted 3.0% economic growth in both 2023 and 2024, businesses and consumers continue to face financial challenges in Q3 of 2023. In part due to these unfavourable macro-economic conditions, continued low freight rates also reflect the rapid expansion in global container ship capacity. This surge shows no signs of abating in 2024 as shipowners have continued to order new ships.

In such a market, maintaining competitive advantage is vital and shipping lines must find innovative ways to differentiate their services from peer rivals. Improving traceability and real time asset management is one such way.

Ocean Alliance’s dominant era comes after 2M breakup

25.10.2023

The Ocean Alliance comprising CMA CGM, COSCO Shipping Lines and Evergreen Marine Corporation is set to become the largest box shipping alliance once the 2M partnership ends in 2025.

2M’s extinction will leave Ocean and THE alliances as the only container shipping tie-ups on long-haul routes, but they will not be of equal scale.

Operating 303 container ships of 4.22 million TEU, the Ocean Alliance is nowadays larger than the 2M and THE Alliance, which each operate around 3.1 million TEU.

The Ocean Alliance’s market share stands at 34% in the Asia – Europe trade and at 35% on Asia – North America routes.

Its market shares on these routes are expected to further increase, as the Ocean Alliance’s member carriers have a combined orderbook of almost 2.38 million TEU for delivery from 2024 onwards.

Alphaliner stated, “Not all of these newbuildings will trade in Ocean Alliance services, but there is little doubt that the 36 ‘megamax’ ships under construction are earmarked for the Asia – Europe trade, where they can staff three weekly loops.”

The current Ocean Alliance ‘Day 7’ Product, launched in January, is based on the pro forma deployment of 353 ships of 4.62 million TEU, up 49% since its launch in April 2017, exceeding the average sector growth of 27.5%. The Ocean Alliance’s average vessel size also climbed from 9,600 TEU in April 2017 to 13,000 TEU today.

Contrary to certain media reports suggesting that the alliances will need to be adjusted following the decision by the European Commission not to extend the carriers’ exemption from regular competition law for consortia (when the market share is less than 30%), shipping alliances remain a legal way for liner operators to cooperate.

Alphaliner said, “As long as carrier groupings (even with a market share above 30%) do not unduly restrict competition and receive formal regulatory approval, they will continue to function normally. The planned expansion of the Ocean Alliance might however become a test case for how large the megaalliances will be allowed to grow.”

Situation in the ports of Israel

18.10.2023

Container shipping companies are currently continuing to maintain normal operations in the major box ports of Haifa and Ashdod in Israel, while the war between Hamas and Israel is continuing in a dramatic way with no one being able to predict what's coming next.

"It is difficult to speculate as to the next episodes of the conflict," confirms Corey Ranslem, CEO of Dryad Global, a UK-based maritime risk advisory and security firm.

Ranslem explains, "Israel has troops and military equipment along the border and is poised for a major ground offensive into Gaza. The Israeli military is also dealing with Hezbollah issues along their northern border. If Israel does move by ground into Gaza, I would expect the unexpected."

"It is hard to predict at this point what will happen in the larger region," he told Container News.

At this point, the only restriction we have seen by the ports of Haifa and Ashdod is about the acceptance of dangerous cargo.

"For Ashdod and Haifa, a restriction for acceptance of dangerous cargo has been implemented by the port and therefore we are no longer accepting bookings for dangerous cargo from or to Ashdod and Haifa," said German box carrier Hapag-Lloyd in its latest announcement.

Similarly, Danish container giant Maersk stated, "For dangerous goods, the Port of Haifa and the Port of Ashdod have both issued restrictions on specific items."

Israel-Hamas war: Impact on shipping and port operations, potential risks

12.10.2023

The conflict in Israel after attacks by Islamist group Hamas on towns close to Gaza has caused great concerns in the global community, while the impact on various sectors and industries remains to be seen.

Trying to get a first overview of how the shipping industry has been affected until today, we do not see any significant challenges and difficulties, as the majority of shipping and port operations seem to work normally.

According to Maersk's latest advisory on 11 October, Israel’s major ports continue to function normally, including the company's key terminals in Ashdod and Haifa. "Likewise, inland services – both road and rail – are fully operational in and around the country," said the Danish ocean carrier in a statement.

"Bookings will therefore continue to be accepted to and from Israel, and cargo already booked to and from the country will be facilitated," noted Maersk.

Similarly, German shipping giant Hapag-Lloyd said the operational situation in Israel is currently stable with both Haifa and Ashdod ports operating normally.

However, the Hamburg-based company noted that a restriction for acceptance of dangerous cargo (DG) has been implemented by the port of Ashdod and therefore it is no longer accepting bookings for dangerous cargo from or to the port. For Haifa, however, there is no restriction in place, according to Hapag-Lloyd's latest update on 11 October.

"We are actively evaluating potential solutions for DG cargo already on board. Our vessels will continue to call at their designated ports in Israel. We will closely monitor the situation and provide further updates as they become available," said Hapag-Lloyd in its statement.

British maritime risk advisory and security company Dryad Global explains, "Vessels carrying hazardous cargo are likely to be kept offshore due to the increased risk from rocket attacks, which would have severe consequences if they were to hit these vessels directly. It's probable that naval activities around Ashdod and further south are in progress. A rocket has reportedly struck the Ashdod power plant within the port's vicinity, but the full extent of the damage remains unclear."

One day earlier, MSC reported that "since Israel’s major terminals are operational, we continue to deliver cargo to/from Israel." The company said it will continue to monitor the impact of the security situation on trade, follow advice from the government, and review its service network accordingly.

On the other side, Israel's southern Port of Ashkelon has suspended its regular operations. Presently, based on AIS data, ships are being redirected to the Port of Ashdod to the north, seen as a safer port, according to an analysis by Dryad Global.

"In general, there is no evidence suggesting that Israeli ports are primary targets," said Dryad Global, pointing out, however, that collateral damage is still a possibility, especially for ships in Ashdod.

The maritime security company told Container News that ports located further north are not currently in the direct line of fire from the Gaza Strip.

"However, the entire situation remains unstable and demands vigilant monitoring. Should Hezbollah from southern Lebanon get involved, the threat level for the port of Haifa would instantly escalate. While not a direct target, the risk of collateral damage to ships and potential operational disruptions would be of significant concern," highlighted Dryad Global.

All vessels should remain clear of the Gaza Strip and give full cooperation to Israeli authorities, according to Dryad Global's recommendations.

If transits offshore of the Israeli coast are necessary, then Dryad Global advises to remain well outside of the 12nm limit. If planning a passage that passes close to Israel, Dryad Global advises vessels to keep well outside the official 12nm limit off the Israel coast (preferably 20nm), unless visas and vessel permissions have already been negotiated.

"Vessels should be aware that is forbidden for yachts to proceed from Israel to Lebanon," noted Dryad Global, which also advises that vessels arriving at the Israeli coast or marinas should do so during daylight hours.