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.
DP World begins construction of new Indonesia box terminal
04.10.2023
DP World and Maspion Group have announced the start of the construction works on a new container terminal in Gresik, East Java, Indonesia.
The new container terminal will strengthen East Java's position as a vital trade gateway, connecting Indonesian companies with clients in the region and throughout the world.
On 2 October 2023, Ahmed Bin Sulayem, group chairman and CEO of DP World, and Alim Markus, chairman and CEO of Maspion Group, attended the groundbreaking ceremony, which was witnessed by Budi Karya Sumadi, Minister of Transportation of Republic of Indonesia and Septian Haryo Seto, deputy of coordinating minister for Maritime and Investment Affairs of Republic of Indonesia.
Furthermore, the joint venture DP World Maspion East Java will operate the contemporary international container port with a design capacity of up to 3 million TEUs.
As part of DP World's ambition of providing end-to-end supply chain solutions, the JV will also build an integrated industrial and logistics park adjacent to the box terminal, with an initial land size of 1,1 million m² and future development potential.
"We see significant potential in Indonesia as a major hub for global trade, and we hope to unlock further growth in the region through meaningful partnerships and investments that bring opportunities through greater trade connectivity for local businesses and communities. Our partnership with Maspion Group to build new infrastructure in Gresik will strengthen East Java’s position as a key trade and logistics gateway. It will also serve as a cornerstone in our strategy to expand our global ports and logistics network to offer our customers end-to-end solutions and boost supply chain resilience,” stated Ahmed bin Sulayem.
Sohar Logistics Station designated as exclusive centre for inspection and customs clearance
25.09.2023
Sohar Logistics Station will become an integrated logistics facility, offering businesses essential logistics services to streamline goods clearance processes, and facilitate business.
Bulker crashes with container ship in Türkiye
18.09.2023
While maneuvering to anchor, the bulk carrier New Legend collided with the stern of the anchored container ship Elbsun on 17 September in Ahirkapi anchorage, Istanbul, Marmara Sea.
According to Maritime Bulletin's report, both ships suffered damage and remained anchored until 12 p.m. (local time) on 17 September. New Legend arrived from Kerch Strait anchorage in Russia, while the 877 TEU boxship Elbsun arrived at Ahirkapi anchorage on 16 September from Morocco.
Container lines consolidate service networks out of South India as trade expands
11.09.2023
Container lines are rapidly expanding connections out of South India to keep pace with growing trade volumes.
But the concentration of calls at private box terminals operated by Adani Group, which act as alternatives to Chennai Port, is becoming increasingly evident.
HMM has cemented its network with direct sailings out of Adani Kattupalli Port (AKPPL). Its FIM [Far East Asia-India-Mediterranean] service is a major boon for southern India shippers traditionally tethered to transshipment over Sri Lanka’s Colombo Port for mainline connections.
The FIM rotation is Busan, Kwangyang, Shanghai, Ningbo, Shekou, Singapore, Port Klang, Kattupalli, Nhava Sheva, Mundra, Karachi, Jeddah, (Suez Canal), Damietta, Piraeus, Genoa, Valencia, Barcelona, Piraeus, Damietta, (Suez Canal), Jeddah, Karachi, Mundra, Nhava Sheva, Kattupalli, Singapore, Da Chan Bay and back to Busan.
In addition, CMA CGM has opened a new string out of Adani Ennore Container Terminal (AECTPL) for North Europe and the Mediterranean. The NEMO [North Europe-Mediterranean-Oceania] Service rotates Ennore, Colombo, Malta, Valencia, London Gateway, Rotterdam, Hamburg, Antwerp, Le Havre, Fos Sur Mer, La Spezia, Malta, Pointe Des Galets, Port Louis, Sydney, Melbourne, Adelaide, Singapore and Ennore.
“This new call will offer our customers a fast export connection from the main commercial area in South East India to Europe together with a direct import connection from Australia and Singapore,” said CMA CGM in a customer advisory, announcing the Ennore call.
The carrier further noted, “Ennore is also a natural gateway from/to ICD [inland container depot] Bangalore covered with an efficient rail connectivity and will provide a best-in-class service to the fast-growing automotive industry.”
The NEMO competes directly with Maersk’s ME7 Service, connecting South India trade via Ennore to North Europe.
The ME7 port rotation is Ennore, Colombo, Salalah, Algeciras, Felixstowe, Rotterdam, Bremerhaven, Jeddah, Salalah, Colombo and Ennore.
With more call additions, Kattupalli and Ennore have already made sizeable inroads into the Chennai market. According to available data, Kattupalli saw 58,046 TEUs last month, while Ennore handled 59,985 TEUs.
The growing shift of volumes to emerging port locations poses challenges for box terminals at Chennai Port, putting further investment in capacity development there at risk.