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Port of Oakland says canceled sailings could hit cargo volume

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Port of Oakland says canceled sailings could hit cargo volume. Image: Wikimedia/ Basil D Soufi
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Fewer container ships would likely mean less cargo at the Port of Oakland this spring.  That was the message Oakland Maritime officials delivered to the Harbor Trucking Association last week.

The Port told freight haulers via video conference that 20 May and June voyages to Oakland have been scrubbed.  The result could be a 5-to-15 percent drop in containerized cargo volume heading into summer.

“It’s a clouded picture,” said Port of Oakland Business Development Manager Andrew Hwang.  “About 10 percent of our scheduled vessel arrivals have been canceled by shipping lines, but we don’t know if that will translate into a similar drop in volume.”

The Port blamed vessel cancelations on the coronavirus pandemic which has stunted global trade.  With consumer spending down, there’s less merchandise to load onto ships.  That means fewer vessels needed between Asian manufacturing centers and U.S. ports.  Import volume is expected to suffer the biggest cargo decline in coming months, the Port said.

Demand for Oakland exports remains strong, but voyage cancelations could place some markets beyond reach, the Port explained.  Fruit, nut and meat exports are particularly coveted by overseas trading partners, especially in Asia, the Port said.  It added that Oakland exports to South Korea increased 31 percent last month, and to Japan,18 percent.

The Port said cargo is moving smoothly through Oakland.  There are no shortages of labor or equipment, it added.

The Port cautioned, however, that the coronavirus pandemic could permanently alter container transportation practices.  Shipping lines may consolidate more cargo on bigger ships while reducing the frequency of voyages, the Port said.

Supply chains could be altered, too, the Port said.  For example, the online purchasing explosion prompted by shelter-in-place orders may hasten distribution center reconfiguration or consolidation.  Distribution hubs could be relocated to more central locations to serve population centers from fewer outlets.    

“We’ll be facing a new normal,” said Mr. Hwang.  “Distribution patterns will change…it won’t be like it was.

Container Shipping Lines

Samudera Shipping Line deploys CyberLogitec CARA to digitize operations for special cargo management

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Samudera Shipping Line deploys CyberLogitec CARA to digitize operations for special cargo management. Image: CyberLogitec
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CyberLogitec, the leading provider of maritime, port/terminal and logistics operations technologies, announced the deployment of CARA, its Collaboration Platform, at Samudera Shipping Line.  The platform is expected to support Samudera in improving their operational efficiency, document accuracy, traceability and safety of their special cargo (DG/OOG) management.  The platform went live in February 2020, making them the first carrier to adopt a platform-based digital solution to manage their special cargo processes as a regional carrier.

Samudera is now able to integrate their email processing through CARA, which then applies automated validation checks with its embedded DG database, enabling email responses via CARA back to their carrier partners.  This greatly improves the response time, workflow and overall accuracy of the verification and approval process for such special cargo applications.

Samudera Shipping Line’s Commercial Director, Capt. Tan Meng Toon, said, “Going digital for our special cargo management is a necessary and crucial step for the business to ensure more efficient and accurate assessment and approval for such high-value cargos. This is a critical pillar of Samudera’s strategy to reinforce its position as a leader in containerized regional and feeder services.

Additionally, safety has always been one of our top riorities, CARA minimizes risks in the special cargo application processes and overall management. It will guarantee the safety of the personnel, protect the environment and meeting regulatory compliance throughout the cargo handling process.”

evin Choi, Managing Director of CyberLogitec Global, said, “With a single data source, the platform enhances and simplifies Samudera’s current special cargo-handling processes, allows faster, safer decision-making and supports the track-and-trace capabilities. We are enthusiastic about working together with Samudera to develop a truly innovative platform, ensuring that their business supply-chain is as robust and safe as possible.”

CARA is a multi-tenanted and unified SaaS platform service, which empowers shipping carriers regardless of scale and size to capitalize on collaboration among users, optimizing on their inter-communication.  CARA enables partnering carriers to seamlessly exchange critical information about vessel schedules, special cargo applications, vessel operations performance, joint slot agreements and settlements.  CARA’s embedded database of IMDG codebook and configurable DG restrictions/prohibitions will enforce timely online validation and compliance verification for DG bookings and shipments for all users.

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Maritime

Port of Oakland gets new service to Asia, includes Saudi Arabia

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Port of Oakland gets new service to Asia, includes Saudi Arabia. Image: Port of Oakland
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A sprawling vessel service begins this week with 18 megaships linking the Port of Oakland to Asia, including Saudi Arabia.  A highlight of the new service: the first-ever direct link between Oakland and the Middle East.

The Port said today that Japan’s ONE line would operate the new weekly service called the Far East-Pacific 2.  The first ship in the service, the ONE Aquila, should arrive at Oakland International Container Terminal May 7.

Each of the ships in the service has capacity to carry 14,000 20-foot containers, the Port said.  That places them among the largest container vessels calling at U.S. ports.

“Naturally we’re encouraged by this development,” said Port of Oakland Maritime Director John Driscoll.  “The size of the ships means extra cargo capacity coming to Oakland and the Port rotation extends Oakland’s reach in global markets.”

The service reaches nine ports in Singapore, Thailand, Vietnam, Japan, Hong Kong, China, the U.S. and Saudi Arabia.  Stops at Saudi Arabia’s Jeddah port would be Oakland’s first direct connection to the Middle East.  Until now, ships from the Arab world transferred Oakland-bound cargo to other vessels at intermediate ports.

Two services already calling Oakland were consolidated by ONE into the Far East-Pacific 2, the Port said.  For that reason, the Port declined to project the impact of the new service on cargo volume.  The Port said that larger ships could result in more Oakland freight over time.  Adding new port calls such as Jeddah could help as well, the Port added.

The Port said it expected cargo mix on the new service to be evenly divided between imports and exports.  California farm goods exported to overseas markets should be a prominent part of the mix, the Port added.

The Far East-Pacific 2 eastbound port rotation: Jeddah, Saudi Arabia; Singapore; Laem Chabang, Thailand; Cai Mep, Vietnam; Hong Kong; Yantian, China; Long Beach; Oakland

The Far East-Pacific 2 westbound port rotation: Oakland; Yokohama, Japan; Hong Kong; Laem Chabang, Thailand; Cai Mep, Vietnam; Singapore; before heading to Rotterdam, Hamburg, Antwerp and Southampton on the European portion of its rotation.

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Maritime

Konecranes receives order for second mobile harbor crane in Brindisi

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Konecranes receives order for second mobile harbor crane in Brindisi. Image: Konecranes
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In the first quarter of 2020, SIR S.p.A. Servizi Industriali (SIR) ordered another eco-efficient Konecranes Gottwald Mobile Harbor Crane for their operations at the Port of Brindisi in southeastern Italy. With delivery in May and commissioning in June, the crane will be handling mostly bulk but also general and project cargo.

Founded in 2005, SIR is a leading provider of industry-related environmental services. A decade later, they expanded their operations to include port services at the Port of Brindisi, one of the most important commercial harbors on the Adriatic Sea. Since then, their port business has rapidly expanded, and only two years ago they bought a Konecranes Gottwald Model 2 mobile harbor crane.

“We’ve been very pleased with our first Konecranes purchase,” says Antonio Roma, Managing Director and owner of SIR. “With its maximum lifting capacity of 80t it offers us already high flexibility in bulk materials and general cargo handling. But now we need to increase capacity. We decided on Konecranes again because we were looking for a high-performance crane that would allow us to handle much larger volumes of bulk, as well as more general and heavier project cargo when required.”

Their second Konecranes Gottwald Mobile Harbor Crane will be a Model 5 in the G HMK 5506 variant with a motor grab. Its working radius of up to 51 meters gives the reach needed for ships up to post-Panamax class and raises the maximum load they can handle up to 125t. Smart crane features, including a hoisting height assistant and land-side lowering, make the job of the operator easier and safer. The crane will have built-in readiness for an external power supply, so conversion to operation via the harbor mains will be easy when resources allow. Web reporting provides relevant crane data to increase both performance and serviceability. It also fulfills the criteria set out in Italy’s National Industry 4.0 Plan, a state strategy that encourages industrial innovation.

“We are proud of this repeat order,” says Gino Gherri, Regional Sales Manager for Konecranes Port Solutions. “It demonstrates the strength of our partnership with SIR and highlights the value of cultivating long-term business relationships to help customers build their success with Konecranes.”

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