Category Archives: International

Easterly Asset Management’s Maritime Logistics Equity Partners (MLEP), formed last year to invest in critical maritime shipping assets, announced today that it has acquired three additional vessels through MLEP I, its first chemical tanker investment tranche. The newly purchased vessels are all 24,000 dwt coated chemical tankers, larger than the four J19 stainless steel chemical tankers previously acquired by MLEP I. “The new acquisitions through MLEP I show the appeal of our focus on benefitting from the substantial dislocations and opportunities in international shipping markets by acquiring and making available for hire pre-owned chemical tankers,” said Darrell Crate, Managing Principal of Easterly Asset Management and MLEP’s Chief Executive Officer. “We’ve seen that the demand for such tankers has the potential to generate a high level of income for investors, and we continue to seek new investment opportunities in the shipping sector.” Launched in September 2021, MLEP is taking advantage of the limited supply and growing demand for chemical tankers, a low future orderbook for new ship construction, and increases in trade. In addition to the four J19 stainless steel chemical tankers previously purchased, MLEP has acquired three coated tankers: Easterly Hawk (built in 2008) Easterly Osprey (built in 2009) Easterly Falcon (built in 2009) In November 2021, Easterly launched MLEP II, which has a goal of raising $150-250 million of equity. It plans to acquire all sizes of chemical tankers, including both stainless and coated MRs and handysize tankers, with the target of acquiring 15–25 vessels. Both of MLEP’s investment tranches capitalise on shortages in tanker capacity brought about by growing global demand for the transport of bulk liquids such as palm oil, molasses, feedstock, and other commodities and the limited construction of vessels …

GEODIS has committed to offering humanitarian aid to the people of Ukraine. This aid will be provided through the mobilisation of the group’s logistics capabilities for the transportation of essential goods, alongside a fundraising initiative in collaboration with the French Red Cross. GEODIS will provide free transport and storage of goods from France and other European Union countries to the regions that have taken in Ukrainian refugees. To deliver these services, the group will rely on its local teams, who are already setting up the appropriate transport and logistics resources to support the humanitarian aid and relief efforts. In particular, GEODIS will provide warehouse sites in strategic locations close to the Ukrainian border. The management of GEODIS has also decided to support the French Red Cross in its operations through a fundraising campaign that will be open for all employees of the group to contribute to. Every euro donated will be matched by GEODIS on a one-for-one basis. All donations received by the French Red Cross will be used to support people directly affected by the conflict by helping to meet their needs for water, basic necessities, medical supplies, first aid, and psychological and social support. Marie-Christine Lombard, Chief Executive Officer of GEODIS, said: “We want to express our support for the Ukrainian people, who are experiencing the horror of the conflict. In addition to financial donations, the entire GEODIS Group has decided to contribute to the humanitarian effort by exercising its expertise in organising transport and storage. Our network and our teams, whether at the head office or at the local level, are fully dedicated to facilitating the flow of goods linked to international solidarity.”

At the inauguration of the 3rd edition of LOGIX India in Dubai, H.E. Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, UAE, said: “The India-UAE Comprehensive Economic Cooperation and Partnership Agreement (CEPA) shall result in accelerated trade and investment and shall open a new world of opportunities.” Dr. Thani Al Zeyoudi said India is the UAE’s largest non-oil trade partner and the future is bright for India-UAE collaborations in global supply chain logistics. Thanking H.E. Dr. Thani Al Zeyoudi for inaugurating the event, Dr. A Sakthivel, President, FIEO, said, “India is committed to spending US $1 trillion on various infrastructure in the next 5 years, which will facilitate our logistics by bringing efficiency and reducing its cost.” “Logistics is an important component of the economy, and its role in manufacturing and exports can hardly be undermined. The logistics cost in India is about 14% of GDP, as against the international benchmark of 8-9%. However, the focus of the government on addressing the cost through various measures has already started yielding results. The government is implementing the dual Bharatmala (road network) and Sagarmala (waterways network) to improve the logistic backbone,” added Dr. A. Sakthivel. HE Ahmed Mahboob, Director General of Dubai Customs and the CEO of Ports, Customs and Free Zone Corporation, said, “UAE has made significant progress in technology upgradation in customs and the logistics sector and looks forward to supporting India in its mission for logistics sector transformation.” Complementing FIEO on organising LOGIX India in the UAE, Sandeep Kumar Bayyapu, Deputy Chief of Mission, Indian Embassy, UAE, mentioned, “The Indian economy is on the upswing. We have become the fastest-growing major economy in the world. …

Maersk Kanoo UAE, an integrator of container logistics, today inaugurated its first Integrated Logistics Centre in Dubai, UAE, at DP World’s leading trade and logistics hub, Jafza. The Maersk Integrated Logistics Centre was inaugurated by Richard Morgan, Regional Managing Director, Maersk West & Central Asia and Christopher Cook, Managing Director, Maersk UAE, in the presence of Maersk’s top W&D customers in the UAE. “It is an important milestone for us today as we inaugurate our first Integrated Logistics Centre in the UAE and strengthen our commitment towards our customers in the Middle East. Our journey towards creating end-to-end logistics solutions is taking a definite shape as we continue to connect and simplify our customers’ supply chains through solutions that are designed and executed considering their specific requirements and challenges,” said Morgan. Ocean shipping and inbound logistics and distribution have traditionally been shared amongst multiple stakeholders in the region, resulting in complex logistical requirements. With the brand new Integrated Logistics Centre in Dubai, Maersk is taking an important step towards building a truly integrated solution for its customers wherein the customers will get a single window access to multiple logistics requirements, not only for the goods flowing in and out of the UAE but even other Middle Eastern countries that use Dubai as a gateway to global trade. Decarbonising logistics and services Maersk has a strong commitment to decarbonising logistics and services. The facility will have solar panels on its rooftop to cater to all of its electricity requirements for facility operations. The 434 MWh/year clean energy production of this installation will reduce more than 1,700 tonnes of carbon emissions over 10 years, an equivalent decarbonisation feat achieved by planting over …

LATAM Airlines Group announced that it will compensate the CO2 emissions of the first nine routes in Chile, Ecuador, Peru, Brazil, and Colombia every Friday through its “Let’s Fly Neutral on Friday” programme. Through this initiative, which is part of the group’s sustainability strategy, LATAM will support conservation projects that prevent deforestation in strategic ecosystems in South America by offsetting CO2 emissions generated on routes, including passenger and cargo flights. Emblematic passenger routes will be offset at a regional level, including Santiago-Chiloé, Galapagos-Guayaquil, Arequipa-Cusco, and Rio de Janeiro-São Paulo. LATAM will also offset cargo flights on routes including Iquitos-Lima, Guayaquil-Baltra Island, Brasília-Belém and Bogotá-Miami routes. LATAM plans to gradually incorporate new routes and more conservation projects into each country in the coming months. “This initiative is another step that we have been implementing to reach carbon neutrality by 2050. Let’s Fly Neutral on Friday will allow us to turn one day of the week into an opportunity to support strategic ecosystem conservation projects in the region. These projects not only offset CO2 emissions, but they also contribute to protecting biodiversity and the economic development of communities,” said Juan José Tohá, Director of Corporate Affairs and Sustainability of LATAM. Each carbon dioxide (CO2) tonne emitted on these routes will be offset with a carbon credit, equivalent to one tonne of CO2 captured by a conservation project. The carbon offsetting of these routes will initially be managed through the CO2BIO flooded savanna conservation project, located in the Colombian Orinoquía, a strategic ecosystem that has iconic biodiversity. The initiative will conserve 200,000 hectares of floodable savannah, providing habitat for more than 2,000 species. Over the next few months, LATAM Airline Group hopes to …

The UAE’s National Association of Freight and Logistics (NAFL) has extended its support to the Federation of Freight Forwarders Associations in India for hosting the 3rd edition of LOGIX India a month after both countries signed the Comprehensive Economic Partnership Agreement (CEPA) to boost their merchandise trade to US $100 billion over the coming five years. The CEPA becomes effective by the first week of May. Key logistics players in India and the UAE will utilise the three-day event, to be held at Hotel Le Meridien Dubai from March 21st to 23rd, to work out ways and means to improve the prospects of the freight and logistics market as the 21st century’s second pandemic comes closer to becoming history after causing unprecedented losses to businesses like tourism, aviation, and logistics. At the opening ceremony, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade and Director-General of Dubai Customs, and His Excellency Ahmad Mahboob will address the gathering. Emirati Nadia Abdul Aziz, President of NAFL, the oldest association of freight logistics service providers in the Middle East, said: “We welcome Indian companies and wish them a successful event. This event will create new growth opportunities for the UAE and India as they work their way towards achieving better results. The event will be an ideal opportunity for the cargo and logistics organisations to meet and set targets as spelled out in the CEPA. LOGIX India will further boost the already strong trade levels between the two countries.” The Indian logistics market is estimated to grow to US $380 billion in 2025, and the freight and logistics market in the UAE will generate over US $31.41 billion …

As one of TIACA’s newest members, Challenge Group brings a panoramic industry viewpoint to the association and has adopted the topic of sustainability as its initial focus point. Stronger and better together is doubly relevant when it comes to Challenge Group. The unique air cargo conglomeration has not only been working on bringing its individual fractions together under one brand, but it also seeks to offer its combined expertise to the international air cargo community. Challenge Group, therefore, recently became a member of The International Air Cargo Association (TIACA). “We joined as a non-voting member in October 2021,” says Yossi Shoukroun, CEO of Challenge Group, “because we are keen to contribute proactively and tangibly to the future of our industry. Challenge Group has more than four decades of air cargo airline experience. We’ve been involved in air cargo handling for almost 25 years, provide extensive road feeder services, and can offer other aviation expertise, too, so I believe that, as a group, we can bring valuable input to the broad TIACA community, a motivated community that has a clear direction for the future of our industry. There is strength in numbers, and it is this strength that will drive change. Together with other supply chain stakeholders, we can make significant progress on the many changes that are necessary for a cleaner, more efficient, and collaborative air cargo industry.” Glyn Hughes, Director General of TIACA, states, “It is with great pleasure that we welcome the Challenge Group to the TIACA membership family. They have a wonderful vision for sustainable growth and transformation, and we are excited about supporting the group on their journey.” One TIACA topic, particularly in focus within the …

MSC is pleased to be part of the Freight Logistics Optimization Works (FLOW) data-sharing initiative, launched at the White House on March 15, 2022. This major project will help to clear supply chain bottlenecks by improving freight information exchange between key stakeholders and consumers, leading to faster delivery times and reduced costs for consumers. A diverse taskforce representing many stakeholders FLOW includes 18 initial participants, with the aim of welcoming more in the future. Representing diverse perspectives across the supply chain, partners include US-based port authorities, terminal operators, private businesses, logistics, and warehousing companies, as well as the ocean carriers MSC and CMA CGM. The FLOW partners will work together with the US Administration to develop a more efficient and transparent way of sharing information. The idea is to create a new digital tool where each company can share accurate, cargo-related data in real-time. “We are pleased to join and support the FLOW initiative led by the US Department of Transportation, as we strongly believe that a common and interoperable digital infrastructure throughout the container shipping industry is a critical step to making supply chains more efficient, secure, and resilient. Collaboration with governments and other key industry stakeholders is of paramount importance to MSC, and there is no doubt that this initiative will strengthen the foundation for the seamless, end-to-end exchange of information we all need to keep global trade moving today – and tomorrow,” said André Simha, Chief Digital and Information Officer at MSC. Shaping the future, together MSC is committed to building strong, cross-industry partnerships that pave the way towards a better future for shipping by taking advantage of digitalization opportunities. Examples of the company’s recent collaborations include …

The FIATA Multimodal Transport Institute (MTI) gathered to address the implications of the ongoing events in Ukraine for freight forwarding and logistics spanning sea, rail, and road transport. Aside from the catastrophic human repercussions, which the industry is particularly sensitive to, global supply chains, which have already been weakened by the effects of the pandemic and the current maritime crisis, are being severely disrupted. Driver shortages, difficulty transporting freight within the impacted zone, and capacity challenges have all been cited. Rising fuel prices are projected to be a concern for the whole industry. It was observed that multimodal solutions are critical to guaranteeing the movement of commodities throughout the impacted area during this war, with border crossings apparently feasible by rail transit via Moldova and the Port of Galati, or via Romania, which gives port access. Trans-Caspian routes are projected to be crucial. Members of FIATA should be aware of the sanctions imposed by certain countries in reaction to the conflict, and should visit the appropriate government pages on a regular basis. Countries currently enforcing relevant sanctions include, among others, Australia, the European Union, the United Kingdom, and the United States. It is understood that more sanctions are being considered.

In the two weeks since Russia’s invasion of Ukraine, there seems to be a negligible impact on container prices and leasing rates in China. Container availability has improved from soon after the Chinese New Year until Friday across key ports in China. However, with the announcement of nationwide lockdowns, the supply chain must prepare for more turmoil in the coming months, impeding the flow of container movement as importers worldwide prepare for the peak season later this year. At the port of Ningbo, average prices for a 40-foot high cube container fell by 10%, approximately from $5930 on February 14th to $5329 on February 27th. As of March 10, this price stood at $5248. Similarly, average prices fell by 10–15% at the ports of Shanghai, Qingdao, and Shenzhen till March 11. Shenzhen witnessed a drop of 8% in the past two weeks. However, the lockdowns in Shenzhen, Zhejiang, Shanghai, Jilin, Suzhou, Guangzhou, and Beijing (19 provinces as of Sunday, probably more to come in a few days) imposed now will clearly heavily restrict container movement at these ports, which will, as we’ve seen in the past, prove to be further damaging to the global supply chain. Clearly, 2022 has not brought any cheer to the supply chain industry. On top of this, war will just prove to be another disruption amongst the other innumerable factors for China’s supply chain. Freight rates and container prices were already at a record high even before the invasion started, and what happened immediately due to the war was that the Russian ports were not being called by the national shipping lines anymore, the Black Sea being somehow closed, and the Asia-European railway being quite …