HPH Trust and Beibu Gulf Port Group sign landmark cooperation agreement

24.05.2024

Hutchison Port Holdings Trust (HPH Trust) and Guangxi Beibu Gulf International Port Group Company Limited (Beibu Gulf Port Group) have signed a memorandum of cooperation, marking a significant step towards enhancing collaboration in the ports and logistics sectors, while promoting economic and trade exchanges between Guangxi and Hong Kong.

This pivotal partnership aims to accelerate the growth of the Guangdong-Hong Kong-Macao Greater Bay Area and the Beibu Gulf economic zone.

The memorandum was signed in the presence of over 50 guests and government officials, including Liu Ning, secretary of the Communist Party of China Guangxi Regional Committee, Amy Chan, commissioner for Maritime and Port Development of the Transport and Logistics Bureau, and Ivor Chow, Chief Executive Officer of Hutchison Port Holdings Trust.

“Hong Kong is an important hub port in the region providing excellent port and maritime services. As announced in the Action Plan on Maritime and Port Development in December 2023, we aim to enhance the overall competitiveness of the Hong Kong Port and the Greater Bay Area port cluster,” stated Amy Chan, commissioner for Maritime and Port Development of the Transport and Logistics Bureau.

By leveraging their respective strengths, the cooperation seeks to strengthen economic and trade ties between Guangxi and Hong Kong, with a focus on enhancing multimodal transportation collaboration. The partnership will emphasize fortifying connections between the two regions, using the Beibu Gulf Port as a key link connecting the northwest region over land and the Guangdong-Hong Kong-Macao Greater Bay Area by sea. The ultimate goal is to establish a seamless route connecting Asia with North America, Europe, and other regions, known as the "Western-Beibu Gulf-Hong Kong (Kwai Tsing)/Yantian-Destination route."

Furthermore, by taking advantage of complementary routes and efficient customs clearance between Hong Kong and Yantian Port in Shenzhen, both parties aim to facilitate transshipment traffic between the Beibu Gulf Port and Hong Kong. This will enhance the logistics hub collaboration among Guangxi, Kwai Tsing, and Yantian port zones, ensuring seamless and highly efficient operations.

“HPH Trust is committed to collaborating with leading industry stakeholders to explore development opportunities for its port and logistics-related businesses. We are delighted to cooperate with Beibu Gulf Port Group as we capitalise on the unique strengths of both ports to enhance our overall competitiveness, thereby reinforcing the development of Hong Kong as an international transshipment hub,” commented Ivor Chow, Chief Executive Officer of Hutchison Port Holdings Trust.

The partnership is expected to increase cargo volume at the Hong Kong Port and expedite import/export cargo movement. For example, shipping goods from the northwest to major Asian regions via Hong Kong can now be completed in just 4-7 days. Currently, Hong Kong offers over 170 international weekly container liner services, connecting destinations worldwide.

“This memorandum of cooperation symbolises our commitment to support Guangxi in establishing the ‘One Zone, Two Cities’ model and building it into an important strategic hinterland of the Guangdong-Hong Kong-Macao Greater Bay Area. Dedicated to deepening the cooperation between Guangxi and Hong Kong across the ports and logistics sectors, as well as economic and trade exchanges, the memorandum will catalyse high-quality development towards a maritime economy, making significant contributions to national strategies including the Belt and Road initiative," added a spokesperson of Beibu Gulf Port Group.

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.