World Maritime News
WMNF20240221
Hutchison Ports sees structural changes ahead at its Hong Kong terminals
The ports under Hong Kong-based terminal operator Hutchison Ports’ Hutchison Port Holdings (HPH) Trust turned in a poor performance for 2023, indicating big changes in the sector. Overall full-year throughput fell 6% to 21.3m teu while the trust’s collection of terminals in Hong Kong port grouped under HPH Kwai Tsing plunged 15% to 7.6m teu. Volumes at Hutchison Ports Yantian in the neighboring province in mainland China slid a more modest 1.5% and continued to comprise more than half of overall volumes.HPH Trust is aware of the market’s changes. “In Hong Kong, despite the easing of cross-border controls from late 2022, cargo volume has remained stagnant in 2023 due to the structural change in shippers’ preference to direct shipment in China instead of vessel-to-vessel transshipment via Hong Kong,” it said in a results presentation.
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Los Angeles/Long Beach ready for potential Red Sea diversions
While no data currently indicates widespread diversions from the US east coast because of the Red Sea crisis, the ports of Los Angeles and Long Beach have sufficient capacity to deal with additional cargo, port of Long Beach executive director Mario Cordero told FMC commissioners in a hearing. Jonathan Gold of the National Retail Federation warned that congestion could hit West Coast ports in four to six weeks.
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West coast ports gain most from US import boost as delays from Red Sea diversion increase on the east
US imports increased in January, according to the latest report from logistics and software provider Descartes. Volumes and delays grew nationwide, but the west coast gained the most import cargo, while the east coast accounted for most of the delays amid the Red Sea diversions.
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Demand and capacity constraints keep transpacific buoyant
Container freight rates on trades between Asia and the US west coast held steady the third week of February, as rates elsewhere continued to fall back from their peaks. The Drewry World Container Index fell 1% this week, with Asia-Europe headhaul rates down 3%, but the transpacific trade, the least affected by the issues in the Red Sea, remained flat at $4,754 per feu. Drewry container research manager Simon Heaney said the reason for the strength of the trade was strong demand growth and restricted supply.
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Diversification is key to avoiding overreliance on China
According to a new report, nearly two-thirds of logistics professionals are looking to overhaul their supply chains by spreading production to multiple locations or relocating it to home markets and nearby countries. A survey conducted by logistics research outfit Transport Intelligence on behalf of supply chain and warehousing specialist Agility found that 63% of 830 respondents were looking at their sourcing. China is the main point of contention for many, with 37% saying the plan is to move production or sourcing out of China or at least reduce investment.
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Support grows for IMO greenhouse gas levy despite China opposition
Support for a global greenhouse gas levy appears to be growing inside the International Maritime Organization, with European countries and some developing nations signaling their willingness to find compromise on a flat rate contribution to cut maritime emissions. China, however, remains the key member state standing against a levy. Ahead of the next phase of negotiation at the IMO next month, states have started to indicate their positions to the IMO’s Marine Environment Protection Committee, and the current submissions suggest a growing number of states are willing to coalesce around a levy. Most EU countries, South Korea, and a handful of developing nations, including Namibia and Comoros, have co-sponsored a submission stating their willingness to accept a global GHG pricing mechanism applying a cost to all GHG emissions. While a majority backing for some form of levy that merges the key details of submissions is likely, strong opposition from key developing states, led by China, Brazil, and the UAE, could derail any hope of a consensus.
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South Korea-Japan-US green corridor could cut up to 41m tonnes of CO2
Switching to zero-emission fuels on green shipping corridors from ports in South Korea to Japan and the US could reduce CO2 emissions by up to 41.3m tonnes, according to a report by Solutions for Our Climate. The South Korea-based organization called for green corridors to link South Korea’s port of Busan with Tokyo and Yokohama in Japan and with Los Angeles and Long Beach in the US. “Reducing greenhouse gas emissions from global maritime shipping will require coordinated multilateral commitments and actions,” SFOC shipping program lead John Yum said. “By leveraging the strong diplomatic and political partnership between South Korea, the United States, and Japan, the three countries can kick-start the international effort to decarbonize the shipping industry.”
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