Maersk Facilitates Global Trade in Myanmar
Maersk Group has received a permanent license to operate container business activities in Myanmar. The business will encompass the three brands Maersk Line, MCC Transport and Safmarine and the agency in Yangon will be officially opened in May 2014.
“We are pleased to be granted a permanent business license to operate our own agency in Myanmar. Since the European Union and United States eased sanctions in 2012, we have experienced a surge in interest in sourcing goods to and from Myanmar,” says My Therese Blank, Myanmar Country Manager.
Macro-economic indicators signal a continuous expansion of growth in the country due to infrastructure development and investments in industries such as agriculture and garment. With a population of about 60 million, trade is also expected to grow as demand for consumer products increases.
“We have confidence in Myanmar’s long-term economic growth potential. Containerised trade has been growing by 17 per cent annually on average from 2007 to 2013, and we expect the positive trend to continue. By 2020, container volumes indicate a potential growth to 600,000 FFE, which is four times the current levels,” says My Therese Blank.
The Maersk Group’s three container businesses have operated under a third party agency for the past 20 years. By increasing its presence in Myanmar, the Maersk Group sees more opportunities in working with customers, suppliers and the local authorities to develop the country’s transport industry and supply chain, increasing the country’s competitiveness in the international market.
“By establishing our own agency in Myanmar, we will be better able to take part in facilitating global trade, support economic growth, and offer support and local know-how to customers looking to enter this market. As lead members of the UN Global Compact, Maersk places strong emphasis on conducting our business in a responsible way in line with international principles. This gives our customers ease of mind and reduces their risk exposure in an important part of the supply chain,” says My Therese Blank.
The Maersk Group is also represented in Myanmar by Damco, a separate company within the Group which handles supply chain management and freight forwarding activities. Damco received its permanent license to operate its own agency in Myanmar in July 2013.
This Press Release is courtesy of www.maersk.com
Mitsui O.S.K. Lines and Affiliate Pay $1.275 Million Penalty
The Federal Maritime Commission announced a compromise agreement reached with Mitsui O.S.K. Lines Ltd. (MOL) and its corporate affiliate, Nissan Motor Car Carrier Co. (NMCC). Mitsui O.S.K. Lines Ltd., is a vessel-operating common carrier based in Japan. As a separate line of commerce, MOL and NMCC operate pure car carriers (PCCs) and roll on/roll off (RO/RO) vessels in U.S. inbound and outbound trades. Under the agreement, MOL agreed to pay $1,275,000 in penalties.
The compromise agreement resolved allegations that MOL and NMCC violated section 10(a) of the Shipping Act, 46 U.S.C. § 41102(b), by acting in concert with other ocean common carriers with respect to the shipment of automobiles and other motorized vehicles by RO/RO or specialized car carrier vessels, where such agreement(s) had not been filed with the Commission or become effective under the Shipping Act. The compromise also addressed related activities and violations arising under such carrier agreements. Commission staff alleged that these practices persisted over a period of several years and involved numerous U.S. trade lanes.
Federal Maritime Commission Chairman Mario Cordero stated: “This is the second public announcement in recent months of Commission enforcement action against parties who fail to file carrier agreements. We take seriously our statutory responsibility under the Shipping Act to protect the shipping public and to ensure that agreements affecting carrier working relationships in the U.S. trades are properly filed and reviewed by the Commission.”
In concluding the compromise, MOL and NMCC agreed to provide ongoing cooperation with other Commission investigations or enforcement actions with respect to these activities. The carriers did not admit to violations of the Shipping Act. Staff attorneys with the Commission’s Bureau of Enforcement negotiated the compromise agreement.
The Federal Maritime Commission (FMC) is the independent federal agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer. The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation system while protecting the public from unfair and deceptive practices.
This Press Release is courtesy www.fmc.gov
Lockheed Martin and Victorian Wave Partners to Start World’s Largest Wave Energy Project
BALTIMORE, – To advance the availability of alternative energy solutions, Lockheed Martin announced today that it has signed a contract with Victorian Wave Partners Ltd. to begin developing the world’s largest wave energy project announced to date. This is a significant step toward making ocean energy commercially available.
The 62.5-megawatt peak power wave energy generation project will be built off the coast of Victoria, Australia, using the PowerBuoy® wave energy converter technology of Ocean Power Technologies (OPT). The project is scheduled to be built up in three stages, with the first stage producing approximately 2.5-megawatt peak power. Once completed, the project is expected to produce enough energy to meet the needs of 10,000 homes. As this project also contributes to Australia’s goal of 20 percent renewable energy by 2020, it has received significant grant support from ARENA (Australian Renewable Energy Agency).
Wave power devices extract energy from the surface motion of ocean waves. Unlike wind and solar sources, energy from ocean waves is very predictable and can generate electricity for more hours in the year than wind and solar. In addition, wave power devices are typically quieter and much less visually obtrusive as compared to wind turbines, which typically run more than 130 feet in height. In contrast, a PowerBuoy is only 30 feet in height above the waterline and is barely visible, as it is typically three miles offshore.
“We are applying our design and system integration expertise to commercialize promising, emerging alternative energy technologies, including ocean power,” said Tim Fuhr, director of ocean energy for Lockheed Martin’s Mission Systems and Training business. “This project extends our established relationship with OPT and Australian industry and enables us to demonstrate a clean, efficient energy source for Australia and the world.”
In this project, Lockheed Martin will provide overall project management, assist with the design for manufacturing of the PowerBuoy technology, lead the production of selected PowerBuoy components and perform system integration of the wave energy converters.“We are pleased to be working with Lockheed Martin in connection with this exciting project in Australia,” said Charles F. Dunleavy, chief executive officer of OPT. “Development of this project draws on core strengths of both our companies and represents an important undertaking for commercialization of the PowerBuoy technology.”
Victorian Wave Partners Ltd. is an Australian special purpose company owned by Ocean Power Technologies Australasia Pty Ltd. OPT is a leader in wave energy technology development. The company’s PowerBuoy wave generation technology uses a “smart,” ocean-going buoy to convert wave energy into low-cost, clean electricity. The buoy moves up and down with the rising and falling of waves. This mechanical energy drives an electrical generator, which transmits power to shore via an underwater cable. The system is electrically tuned on a wave-by-wave basis to maximize the amount of electricity produced.
Lockheed Martin takes a comprehensive approach to solving global energy and climate challenges, delivering solutions in the areas of energy efficiency, smart energy management, alternative power generation and climate monitoring. The company brings high-level capabilities in complex systems integration, project management, information technology, cyber security, and advanced manufacturing techniques to help address these challenges. Today, Lockheed Martin is partnering with customers and investing talent in clean, secure, and smart energy – enabling global security, a strong economic future, and climate protection for future generations.
Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 115,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s net sales for 2013 were $45.4 billion.
This Press Release is courtesy of www.lockheedmartin.com
Maersk Line Announces Dedicated Company to Serve Intra-Americas
Copenhagen, Denmark/Madison, New Jersey, USA/Panama City, Panama – Maersk Line, the world’s leading ocean transportation company and a unit of the A.P. Moller-Maersk Group, announces today the formation of a regional, containerized shipping company – SeaLand – dedicated to the intra-Americas market. This new affiliate will have a structure similar to Maersk’s other successful regional carriers including: intra-Asia carrier MCC Transport and intra-Europe carrier Seago Line. SeaLand will feature knowledgeable, local sales and support personnel positioned in North, Central, and South America, as well as the Caribbean, to meet the unique needs of customers throughout the region. This agile framework will provide greater flexibility and a higher-level of customer-focused service to these local markets. Maersk Line’s existing Intra-Americas service network will be the foundation for SeaLand’s ocean products.
This new, independent unit will officially commence operations on January 1, 2015. Maersk Line will begin the transition of their Intra-Americas business to SeaLand in a phased approach throughout 2014. The newly established team of approximately 240 highly-skilled personnel will begin their new roles by July 1, 2014. SeaLand will be led by Maersk Line veteran, Craig Mygatt, who will serve as CEO. The company will be headquartered in the United States with exact location to be determined. SeaLand will share specific Maersk Line operational services, such as finance, land-side operations, and HR.
“We heard from our customers that they value Maersk Line services but they required greater service stability and commitment. That’s one of the key reasons why we’re responding with an improved, restructured solution for the Intra-Americas,” commented, Craig Mygatt, CEO, SeaLand. “We look forward to developing strong, enduring customer relationships as the new SeaLand organization.”
“This reorganization is an investment in our global container business. It enhances and strengthens service in this important and growing trade region, as well as the future of our overall global service network,” said Vincent Clerc, chief trade & marketing officer, Maersk Line.
Robbert Van Trooijen, Chief Executive, Maersk Line Latin America and Caribbean said, “This new Intra-Americas commitment will meet the needs of Latin American customers that ask for local, customer specialists that are empowered to act quickly and respond to changes in the market. We have a long history in this region that will set the foundation for future growth.”
This Press Release is courtesy of www.maerskpress.com
Reefer Containers For Avocado Industry Give Access To New Markets
Agriculture amounts to half of Kenyan GDP and employs 75% of the Kenyan workforce, according to World Economic Forum. The shipping and logistics industry have played a vital role in enabling Kenyan farmers expand their markets resulting in a positive impact on the local economy. By use of Maersk Lines’s reefer containers with special technology it has been possible to improve the transit time of e.g. fresh fruit.
During the recent four years, the Kenyan avocado industry has seen an increase in potential transit time in reefer containers from 10 to 40 days making it possible to reach premium European markets – and avoid fast ripening.
Kenya is widely recognised as East Africa’s economic powerhouse. Kenya also houses East Africa’s busiest container terminal, the Port of Mombasa, which is the origin of a transport corridor transiting through Kenya to Uganda, Rwanda and the new state of South Sudan, linking some 200 million people, similar to the size of the population of Brazil, to the global markets.
Small fruit, big impact
Joseph Githii is one of those successful Kenyan avocado farmers. Located just outside the small town of Kanjuku, 70 km from Nairobi, the 2.8-hectare property – which the man modestly calls his garden – forms an intricate system in which crops rotate, protecting the red soil and constantly making way for in-demand produce. In recent years, avocado trees have become more frequent. “Avocados are more profitable than the other things I grow in my garden,” he says and stops at an avocado tree. One of his grandsons climbs it and picks a fruit for him.
The tree will continue to grow fruit throughout the season, with the total yield reaching as many as 5,000 avocados. What began 20 years ago as a hobby and two trees has now turned into more than ten trees and a steady stream of income.
“I put my children and grandchildren through school with the money from avocados. They have been a very good thing for me. I can hardly express how good,” he says.
Maersk Line’s reefer containers opened up the market
Kenya’s avocado was not always this appreciated. The introduction of Maersk Line’s Star Care reefer container four years ago, however, fundamentally changed its fate. Before, the Middle East was the end of the line. Now, Europe, where the fruit would sell for roughly triple the price, was within reach. According to Beth Wanjiku Ihomba, a Maersk Line sales executive, the industry players were excited yet sceptical at the outlook. “To win them over, I encouraged them to ship one container to Europe,” Beth Wanjiku Ihomba recalls. “Anyone could put a pallet in the container. We sealed it and carried it to Europe on a no-cure-no-pay basis. Our promise was that if the fruit went bad, no one would pay a cent.”
Around 15-20 exporters went along, and a container was shipped to Belgium. It arrived, was opened and the buyers liked what they saw – the fruit sold at premium rates. A second trial was shipped to Rotterdam, under the same terms and with the same result. The exporters and farmers were convinced. “From then on it was good times for all in the industry,” says Beth Wanjiku Ihomba. “The world market has opened up to us thanks to Maersk Line’s reefers. Ten days used to be the limit. Now we can carry the fruit for 25 days to Europe, and even 40 days to Russia. During July’s peak season each container will be carrying up to 100,000 avocados. Without those reefers we would be doing something else,” says Peter Nderu, a director and partner at Keitt Exports in Nairobi.
Small scale farmers with great impact on local economy
Within the next ten years, new avocado fields are expected to more than double Kenya’s current production of avocados, and small-scale farmers will be the main driver. This development is nothing new to Beth Wanjiku Ihomba at Maersk Line. After introducing the Star Care reefer, her visits to farmers and exporters by the hundreds have seen Maersk Line taking the lion’s share of the market. “We want to be first wherever avocados are grown. We tie up everything with the exporters, we partner with farmers, and we help with the technology. What we realised is when you begin with someone when they are just starting up, they stay with you forever,” Ihomba says. June of 2013 saw another milestone, as she arranged the first five reefers with avocados from Moshi in Northen Tanzania. The buyers in Europe were delighted with the fruit. “If Tanzania comes on board, we would be doing two seasons, and believe me, we could easily more than double our volumes and hit 2,000 reefers,” Beth Wanjiku Ihomba says.
Passing it on
While Joseph Githii is preparing for the next visit from the avocado broker, he also has the next generation in view, passing on the skills: “One of my daughters saw what I was doing, and she took two seedlings. She planted them, and now she makes money. Her three daughters are in secondary school,” he says. He examines the quality of the avocado in his hand. In a few weeks it might be on the shelf of a greengrocer in the Netherlands.
This Press Release is courtesy of www.maerskpress.com
Antarctic Rescue Operations Complete
The Australian Maritime Safety Authority can confirm that the Akademik Shokalskiy and the Xue Long have broken free from the ice in Antarctica and are no longer in need of assistance.
The United States Coast Guard ice breaker Polar Star has been released from search and rescue tasking by AMSA’s Rescue Coordination Centre (RCC Australia) and will now continue on its original mission to McMurdo Sound.
At about 730pm AEDT on Tuesday RCC Australia received a message from the Captain of the Akademik Shokalskiy stating that about three hours earlier cracks had started to open in the ice around the trapped vessel.
A short time later the Akademik Shokalskiy began to make slow movements in an attempt to break free from surrounding ice. The Captain reported that at approximately 8pm AEDT they had managed to successfully clear the area containing the heaviest ice and had begun making slow progress north through lighter ice conditions. At approximately 830am AEDT the Akademik Shokalskiy informed RCC Australia that it had cleared the ice field and was no longer in need of assistance. The Captain of the Akademik Shokalskiy passed on his thanks to all those who assisted the vessel and informed the RCC that they will now proceed to Bluff in New Zealand.
Shortly after midnight RCC Australia was advised by the Captain of the Xue Long that, at about 9pm AEDT, it too had managed to break free of the heavy ice and is now making slow progress through lighter ice conditions. The Xue Long advised RCC Australia this morning that it is not in need of assistance and will continue its research mission in Antarctica.
AMSA again offers our thanks to all of the participants in the effort to assure a safe resolution to the situations that emerged following a distress incident experienced by MV Akademik Shokalskiy in Commonwealth Bay on Christmas Day.
In total five ships were involved in the multi-lateral cooperative effort – Akademik Shokalskiy (Russia), L’Astrolabe (France), Xue Long (China), Aurora Australis (Australia) and USCGC Polar Star (United States of America). The national Antarctic programs and other agencies of France, China, Australia, Germany and the United States of America have been engaged in actual operational responses, contingency planning or the provision of specialist data.
“This was a great example of the multi-lateral cooperative nature of Antarctic operations” said AMSA Acting CEO Mick Kinley.
This Press Release is courtesy of Australian Maritime Authority http://www.amsa.gov.au/
Vehicle Shipment Carriers Agreement
The Federal Maritime Commission announced compromise agreements reached with two common carriers operating pure car carriers (PCCs) and roll on/roll off (RO/RO) vessels in U.S. inbound and outbound trades. Under these separate agreements, Kawasaki Kisen Kaisha Ltd. (K Line), paid $1,100,000 in civil penalties and Nippon Yusen Kaisha (NYK Line), paid $1,225,000 in penalties. Both carriers are headquartered in Tokyo, Japan, and operate diverse fleets trading in the U.S.-foreign trades and globally.
The compromise agreements resolved allegations that K Line and NYK Line violated provisions of the Shipping Act, including section 10(a) of the Shipping Act, 46 U.S.C. § 41102(b), by acting in concert with other ocean common carriers with respect to the shipment of automobiles and other motorized vehicles by RO/RO or specialized car carrier vessels, where such agreement(s) had not been filed with the Commission or become effective under the Shipping Act. The compromise agreements also addressed related activities and violations. Commission staff alleged that these practices persisted over a period of several years and involved numerous U.S. trade lanes, including from and/or to the Far East, Europe, the Middle East and South America.
Chairman Mario Cordero stated: “These penalties underscore the seriousness with which the Commission views the carriers’ obligation to file with the Commission any agreement with other carriers affecting working relationships in the U.S. trades, both for import and export traffic. The shipping public has a right to know the subject matter and scope of any such agreement, and the Commission is charged by Congress to oversee the parties’ operations and conduct under such agreements. Investigations by our Bureau of Enforcement as to additional carriers implicated in similar agreement activities are continuing at this time.”
In concluding the compromise agreements, K Line and NYK Line agreed to provide ongoing cooperation with other Commission investigations or enforcement actions with respect to these types of activities. The carriers did not admit to violations of the Act or the Commission’s regulations. Staff attorneys with the Commission’s Bureau of Enforcement negotiated the compromise agreements.
This Press Release is courtesy Federal Maritime Commission www.fmc.gov
Maritime Alternative Fuels
WASHINGTON – The U.S. Department of Transportation’s Maritime Administration (MARAD) announced today that it is providing a total of $1.4 million for two projects supporting the increased use of alternative fuels and technology in the maritime industry. The funds will be used to collect information on use of liquefied natural gas (LNG) as a marine propulsion and study the issues and challenges associated with shore side storage and fueling of LNG vessels.
“Fuel-efficient ships appeal to the maritime industry for the exact same reasons that fuel-efficient cars appeal to consumers – they’re easy on the environment and their pocketbooks,” said U.S. Transportation Secretary Anthony Foxx. “The Obama Administration is committed to protecting our environment and reducing pollution, and the information we’ll gather from these projects will help us strengthen America’s clean energy economy.”
Through a partnership agreement, MARAD will provide Horizon Lines, Inc. with $900,000 to assist in conversion and monitoring of their vessel, Horizon Spirit, to operate on LNG. Measuring the efficiency and air emissions of these new LNG engines will provide valuable data as the U.S. maritime industry looks to greener and more cost effective options. This ocean going container ship operates between Long Beach, California, and Honolulu, Hawaii. The conversion is anticipated to be completed by late-2015.
The second project is a $500,000 MARAD funded LNG study conducted by the U.S. subsidiary of Det Norske Veritas Inc. to analyze the issues and challenges associated with bunkering, which is the process of supplying fuel for ships, and the landside infrastructure needed to store and distribute LNG. It is anticipated this study will be complete by spring 2014.
“The maritime industry is taking important steps to reduce vessel air emissions,” said Acting Maritime Administrator Paul N. Jaenichen. “Using clean energy means green efficient transportation and a better environment for mariners who work aboard these vessels and others who work in the maritime industry and communities.”
The two recipients were chosen in a competitive process to partner with MARAD as part of a new program to demonstrate innovative technologies and practices and share data on the results. President Obama has taken unprecedented action to build the foundation for a clean energy economy, tackle the issue of climate change, and protect our environment. Both projects reflect the maritime industry’s effort to reduce vessel air emissions and the use of LNG as an alternative fuel.
COURTESY US DEPARTMENT OF TRANSPORTATION
Major Offshore Oil Drilling Under Review
The US is seriously considering its rules governing offshore oil drilling. In view of the the recent oil spills in the Gulf of Mexico and the adverse environmental consequences, more stringent rules are been crafted to eliminate the circumstances that triggered such spills.
Fishing In Alaska
Recently there has been a rise in the amount of new legislation passed by maritime authorities to restrict deep ocean fishing activities of fishing vessels. Though there be a legitimate concern for the deplition of certain specific species of fishes, I think the rules go way beyond conservation concerns