WMNF 2021/1/21

World Maritime News

2021.01.21

FMC should examine DCSA and TradeLens

The Digital Container Shipping Association (DCSA) published last December data and process standards for the issuance of bill of Lading. The initiative, which is supported by nine of the world’s largest container carriers, aims to facilitate acceptance and adoption of this bill by regulators, banks and insurers and to unify communication between these organizations and customers and all other stakeholders in the shipping industry. In order to explore this process, DCSA has joined forces with its sister company TradeLens. However, the creation of this joint venture has raised concerns over several antitrust issues that may emerge. DCSA is not-profit oriented, while TradeLens was set up for the commercial marketing of a cloud service. The FMC should examine the antitrust issues emanating from the conjoint implementation of the DCSA and the TradeLens Agreement both on the IT standards market and on the IT information market.

Read more: Lloyd’s List

Pathway to decarbonization of carriers

Maersk is to establish a dedicated team to accelerate the company’s decarbonization efforts and ensure that the decarbonization agenda is embedded in the business. The team will launch in March and consist of about 45 staff from the company’s fleet management and technology departments.

MSC joins the Hydrogen Council, a global CEO-led initiative that pushes hydrogen’s use in a clean energy transition. CMA CGM and NYK have been members. Apart from pioneering the use of biofuels as bunker, MSC will also work with others to advance the exploration of hydrogen as potentially viable fuels sources for container shipping.

NYK, MOL and “K” LINE have put a high emphasis on green issues in line with ESG management while they also recommit their focus on safety.

Container lines to expert pricing power to seek annual contracts

Container shipping freight rates on major east-west routes have held firm at near record highs without any hint of the supply-demand imbalance that has driven up pricing. Carriers this spring will use their newfound pricing power to seek annual contract freight rate increases of up 45 per cent in the eastbound trans-Pacific trade, for example. Carriers will aim and Drewry now expects for 2021-2022 contract rates of U$ 1,900 to U$ 2,000 per FEU. Shippers, in return, will demand service enhancements such as less cargo rolling, improved container availability at Asian load ports and better schedule reliability. Shippers may also attempt to negotiate higher minimum quantity commitments (MQCs) in their 2021-2022 service contracts.

Read more: Lloyd’s List | CECC

Regulators’ distrust of container lines puts lives at risk

Up to 15% of containerized cargo is made up of dangerous goods. Yet across the world harmful substances and products are still being put in containers either by shippers who are ignorant of the rules, or intent on criminal fraud. Incidents caused by mis-declared and undeclared dangerous goods are continuing on a weekly basis on ships and ports around the world. Carriers, shipper organizations and insurers have made valiant efforts to prevent dangerous cargoes getting on board ships, but despite these best efforts, there are still bad actors in the supply chain. Competition authorities should understand that co-operating on safety among carriers is not the same as unlawful collusion. Regulators need to see past fears of anti-competitive behavior and instead support lines in their efforts to protect lives, assets and the environment.

Read more: Lloyd’s List1 | Lloyd’s List2

Antwerp posts record annual volume despite COVID-19

The port of Antwerp handled record container throughput in 2020, with sharp recovering demand through the second half driving volume to 12 million TEU for the first time. Europe busiest container hub Rotterdam and third busiest port Hamburg have yet to announce their 2020 volume. The container handling growth in Antwerp was largely condensed into the second half of 2020, a trend seen in the major east-west trade. Jacques Vandermeiren, port of Antwerp CEO said the throughput again confirms the importance of the container segment and the need to expand the capacity, adding, it will not be smooth sailing in 2021 nor will it be predictable.