Hong Kong Officially Launches Digital Yuan Payments Pilot
17.05.2024
Hong Kong launched a pilot program enabling digital yuan payments through major Chinese banks, the first example of China’s currency project being deployed beyond the mainland.
Residents of the city can now open digital yuan wallets with Bank of China, Bank of Communications, China Construction Bank and Industrial and Commercial Bank of China to pay merchants in mainland China directly, Hong Kong’s de facto central bank said in a statement on Friday.
The wallets can be set up using only a Hong Kong mobile phone number and can be used within the Greater Bay Area as well as other pilot regions. Users can top-up the wallets using the local instant payment system known as FPS.
“We will continue to work closely with the People’s Bank of China to gradually expand the application of e-CNY, enrich the range of functionalities” and promote the acceptance of the digital yuan by more retail merchants in both Hong Kong and China, said Eddie Yue, chief executive of the Hong Kong Monetary Authority in a statement. Hong Kong is the first place outside of mainland China in which residents can set up e-CNY wallets, according to the HKMA.
Asian ports hit by Red Sea backlogs
10.05.2024
The Red Sea crisis is challenging Asian ports as congestion with “echoes of the pandemic” is seen in Asia and the Middle East with analysts warning backlogs could also spread to European facilities.
Container ship diversions avoiding the Red Sea and Suez Canal are in a continuous state of flux, changing port calls and vessel sizes as carriers adjust Asia to Europe rotations to cope with demand.
These fluctuations, along with unexpected weather events and higher volumes, and holidays, including Ramadan and Eid Al-Fitr, have created challenging conditions for port operators.
Eleanor Hadland, ports’ analyst at Drewry Shipping Consultants told Container News some congestion hotspots emerging, as vessels arrive at ports outside of their docking windows.
The markets where there has been the greatest impact have fewer mainline vessel calls – but each call is taking longer - indicating a greater cargo exchange – which occurs when carriers consolidate cargo in specific markets onto fewer routes.
“For example, whereas Asia-Middle East cargo may previously have been handled on a wayport basis (i.e. dropped off / collected at key hubs on Asia-Europe trade) this is now being consolidated onto specific Asia-Middle East routes leading to larger parcel sizes being handled at the main ports,” explained Hadland.
One of the most significant ports impacted is Jebel Ali which has seen dwell for ships larger than 12,500 TEU increase from about 1.5 days in Q4 2023 to 2.5 days by the first quarter of this year, increasing pressure on trucking and port storage facilities.
A DP World spokesperson said, “Jebel Ali Port has experienced a temporary increase in vessel arrivals due to recent severe weather and changes to regional shipping routes. We're working diligently with our partners to ensure efficient operations and minimise any effects on schedules. All major shipping lines continue their on-time arrivals at Jebel Ali Port.”
Consultancy MDS Transmodal analysed the number and size of vessels operating in the Asia to Europe trades, including direct Asia to Europe services, those with wayport calls and the Middle East, Indian Subcontinent to Asia trades in an attempt to understand the challenges being faced.
Hapag-Lloyd partners with IKEA for cleaner shipping
08.05.2024
Hapag-Lloyd and IKEA Supply Chain Operations have entered into a cooperation to decarbonise container shipments from Asia.
From March 2024 until February 2025, both companies have agreed to use Hapag-Lloyd’s highest product option for biofuels “Ship Green 100”, which relies on waste- and residue-based biofuel instead of conventional marine fuel oil. The expected result for IKEA during this period is a CO2 emission reduction of around 100,000 tonnes.
“IKEA stands as one of our valued customers, known for its unwavering commitment to sustainability. By joining forces, we are reducing CO2e emissions significantly”, said Danny Smolders, Managing Director Global Sales at Hapag-Lloyd. “Ship Green is an important aspect of our decarbonisation journey and brings us one step closer to our goal of net-zero fleet operations by 2045.”
The IKEA goal is to reduce the relative GHG emissions from their product transportation by 70% by 2030 and to only use zero-emission heavy-duty vehicles and ocean vessels by 2040.
“It’s through efforts like this one that we can reduce immediate emissions from ocean shipping in the short-term”, says Dariusz Mroczek, Category Area Transport Manager, IKEA Supply Chain Operations. “However, biofuel is not the ultimate solution and we need to continue to collaborate to make the necessary shift toward zero emission fuels and technologies.”
Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transport solutions. Based on biofuel, Hapag-Lloyd’s customers can choose between 100%, 50% or 25% CO2e emission avoidance. Ship Green is available for all shipments, including standard, reefer, hardtop, or tank equipment.
Houthis fire another MSC-operated vessel
01.05.2024
MSC-operated 15,000 TEU container ship MSC Orion was targeted by a long-range Houthi drone in the Indian Ocean on 26 April with Houthi spokesperson Yahya Saree confirming the attack.
Houthis fired the vessel despite MSC's efforts to move all Israel-linked ships out of the Persian Gulf, following the capture of MSC Aries by Iranian forces.
MSC Orion, which departed Portugal’s Sines port on 6 April, was targeted while it was on its way to Oman’s Salalah port to discharge its cargo on 28 April, and omit its scheduled call at Abu Dhabi on 30 April. Currently serving MSC’s Himalaya Express service, its next assignment is yet to be confirmed.
The attack is one of the most far-reaching perpetrated by the Houthis, as MSC Orion was 300 nautical miles from the Horn of Africa.
After MSC Aries was captured by Iran’s Islamic Revolutionary Guard Corps on 13 April, MSC began shifting MSC Orion and nine other Israel-linked ships, namely those owned by Zodiac Maritime and Eastern Pacific Shipping away from the Persian Gulf.
MSC is negotiating with Tehran to get the MSC Aries and its crew released, and under international pressure, Iranian authorities have indicated that the crew would be liberated on humanitarian grounds.
Even as the threat of assaults has seen nearly 5 million TEUs rerouting from the Red Sea to around the Cape of Good Hope, the Houthis have previously vowed to spread their attacks to parts of the Indian Ocean.
Retaliating against Israel for the Gaza War, the Houthis are going after ships associated with Israel or its ally, the United States. The 2020-built MSC Orion is among a series of ships owned by an affiliate of Zodiac Maritime, which is controlled by Israeli tycoon Eyal Ofer.
Combined Maritime Forces, a 43-nation military coalition in the region, said MSC Orion sustained mild damage and none of the crew were hurt, but debris from what appeared to be a drone was found on the ship.
Temporary channel opens in Baltimore to facilitate ship traffic after bridge collapse
22.04.2024
The Captain of the Port of Baltimore established the Fort Carroll Temporary Alternate Channel, which is on the northeast side of the main channel in the vicinity of the Francis Scott Key Bridge and will provide limited access for commercially essential vessels.
The Fort Carroll Temporary Alternate Channel, depicted in green, has a controlling depth of six metres, a 90-metre horizontal clearance, and a vertical clearance of 41 metres, and will facilitate additional commercially essential vessel traffic through the port.
This action is part of a phased approach to opening the main channel.
“This additional channel increases the types of vessels able to transit inbound and outbound the port of Baltimore,” said US Coast Guard Capt. David O’Connell, Captain of the Port and Federal On-Scene Coordinator, Key Bridge Response 2024. “We estimate facilitating approximately 15% of pre-collapse commercial activity.”
The current 1,830-metre safety zone around the Francis Scott Key Bridge remains in effect and is intended to protect personnel, vessels, and the marine environment. No vessel or person will be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative.
“Everyday, members of the Key Bridge Response Unified Command are working tirelessly to complete the steps necessary to support full access to the Fort McHenry channel,” noted O’Connell. “The opening of this third channel represents continuous progress towards this overarching objective.”