Freight transportation reports, projects and other news from outside North America
10/4/2022
Outlook for container shipping markets ‘worsening,’ Maersk officials say
“A worsening economic outlook is weighing on the container shipping markets as economic data points to a sharp slowdown in the U.S and Europe. The global manufacturing orders-to-inventory ratio fell further in August while manufacturing orders also fell back slightly. At the same time, U.S. and Europe inflation levels are at a record high of 8.3% and 7.4% respectively excluding food and energy costs. Regional container trade growth declined further between May-July and most major regions are seeing negative growth with export volumes from Asia falling by 1.1% and import volumes dropping by 8.3%. Import volumes to North America fell 2.3% and containerized imports to Europe 4.5%. Africa and intra-Asia were among the few regions where container volumes grew, with inbound to Africa rising 8.1% and intra-Asia climbing 3.7%. Ocean spot rates are in steep decline with the Shanghai Containerized Freight Index dropping significantly since June to around $3,000 per TEU in September, back to the same level as December 2020.” — Maersk Asia Pacific market update posted Sept. 27 at maersk.com
Consumers to spend less this holiday season, project44 survey says
Shoppers in the UK, France and the United States will be more price-sensitive and spend less this holiday season, project44 officials predict. The firm — which offers a supply chain visibility platform for shippers, carriers, and logistics professionals — recently surveyed 1,600 consumers across the UK, France and Germany and the United States to find out their views on spending, shipping and sustainability going into the 2022 holiday shopping season. “What we found is this: the vast majority of shoppers are feeling an economic squeeze and will spend less this holiday season,” project44 officials said in the preface to the survey results, issued Sept. 30. Respondents cited the price of goods to be their top shopping concern, with 78% planning to spend at least 10% less — and 28% planning to spend at least 25% less — on holiday gifts this year. Consumers also are “concerned by all-things-shipping compared to last year — higher shipping costs, higher thresholds for free shipping and no free shipping by retailers who used to offer it,” project44 officials said, adding that 78% of consumers said they’d compromise on gifts they purchase “in order to get a better deal.” Meanwhile, 56% of the respondents said they prefer to reduce their carbon footprint by shopping at local, small-owned businesses. Only one-third would opt for slower delivery or a ship-to-store-for-pickup option to do so. And only 27% said they’d pay more for a “greener” brand this year, project44 officials said.
Oman Rail, Etihad Rail enter joint venture
On Oct. 2, the board of Oman Rail-Etihad Rail JV Co. — a joint venture between Oman Rail, the developer and operator of the Oman national rail network, and Etihad Rail, the developer and operator of the UAE National Rail Network — held its inaugural meeting in Dubai, two days after signing an agreement to form the company. The joint venture plans to build and operate a 303-kilometer freight and passenger railway network connecting Sohar Port with the UAE National Rail Network. During the meeting, board members discussed the implementation plans, including technical studies and architectural design, as well as environmental studies for routes, the business model and the commercial affairs of the joint venture.
P&O Maritime Logistics ‘bespoke vessels’ to support copper export in Papua New Guinea
P&O Maritime Logistics is taking delivery of two new bespoke vessels designed specifically to service Ok Tedi Mining Ltd (OTML) in Papua New Guinea (PNG), P&O officials announced on Sept. 27. Operating on the Fly River and in the Gulf of Papua, the new vessels will work between Kiunga and Port Moresby to transport mainly copper concentrate for export. The movement of copper concentrate from the Ok Tedi mine to Port Moresby — which requires specialist vessels and navigational expertise — is a key link in the supply chain which helps enable OTML’s significant contribution to the PNG economy, P&O officials said, adding there are no road or rail links to the mine. P&O designed and built the two new 5,400 DWT Bulk and Container vessels, in partnership with Wartsila Ship Design and Fujian Mawei Shipbuilding Limited, to improve cargo lift while also meeting the unique environmental requirements with a low wake profile to ensure that the communities and ecosystems on the river are not impacted by the ships’ operations.
Indian Railways: ‘Incremental growth in freight loading’
Indian Railways has loaded 736 million tons of freight from April 1 (the beginning of fiscal year 2022-23) through Sept. 30, a 7% increase compared with the 668 million tons loaded in the same 2021 period, according to an Oct. 3 Tweet from India’s Ministry of Railways titled “Incremental growth in freight loading.” Leading the way: a 10% increase in iron ore loadings helped. Indian Railways is the world’s fourth-largest rail network, with about 70 percent of India’s freight is transported by road, and only 17 percent by rail, according to the World Bank.
CargoBeamer operates test train between Marseille and Calais
CargoBeamer recently ran “the first ever train with trailers between Marseille and Calais,” CargoBeamer officials announced on Sept. 29. Traveling from the Port of Marseille Fos to the CargoBeamer-Terminal in Calais, the service enabled 28 units to be transported via rail instead of the road. The train consisted of CargoBeamer rail cars and twin pocket wagons; traction was provided by DB Cargo France. “By transporting semi-trailers from Marseille to Calais on rail instead of the road, each loading unit reduced its CO2-footprint by around 90%,” CargoBeamer officials said. “For the whole train, this means reducing carbon emissions by around 30.8 tons of carbon emissions compared to road transport.”
Far East Land Bridge appoints Teterin CEO
Far East Land Bridge Ltd. (FELB) named interim CEO Konstantin Teterin the rail operator’s chief executive for the next three years, the company announced on Sept. 30. Teterin took over the management of FELB, which is based in Vienna and Shanghai, in May 2022. “The stability of the team will be key to FELB's sustainability and consistency in the international transport market," said Alexander Redkin, chief operating officer of FELB, which provides rail logistics within and between Europe and Asia on the Trans-Siberian Railway.
Closing report: InnoTrans 2022
Held Sept. 20-23 in Berlin, InnoTrans 2022 attracted 137,394 international visitors from 131 countries to experience “this uniquely wide-ranging overview of the industry’s products and services,” as InnoTrans officials put it on Sept. 30. On the Berlin Exhibition Grounds, 2,834 exhibitors from 56 countries presented a range of products and services. Among the exhibits were 250 “world innovations” and 128 vehicles, with alternative drive systems, battery-electric and fuel cell-powered trains the trade fair’s “main topics,” InnoTrans officials said. A few event highlights:
• Richard Lutz, CEO of Deutsche Bahn, and Oleksander Kamyshin, CEO of Ukrsalisnyzja (UZ), the state-run Ukrainian rail network, signed a memorandum of understanding. The agreement guarantees UZ support for reconstruction after the war, and includes collaboration on expanding goods supply corridors and terminal capacity as well as wide-ranging consultation services for introducing European rail operation and management standards.
• Poland’s rail vehicle manufacturer Pesa and the mineral oil company and fuel station operator PKN Orlen reached an agreement to collaborate on hydrogen-powered rail vehicles. The two companies will put together an offer for rail transport companies that will include supplying rolling stock as well as hydrogen and refueling solutions.
• During the event, Saudi Arabia was “able to move forward with ambitious plans for expanding its rail network,” InnoTrans officials said. The country had already signed agreements with Deutsche Bahn and Siemens, said Saudi Arabian Railway CEO Bashar Khalid Al Malik.