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Wednesday, September 6, 2017

Amazon arrives in Australia, autonomous vessels and a final farewell to a Korean shipping giant

Amazon expected to launch Australian operations in November The tidal wave that is Amazon has finally made landfall in Australia, with the e-commerce juggernaut securing its first warehouse spa…

Thursday, August 3, 2017

Uncovered: The mysterious language used by freight professionals

Have you ever been on the phone to your freight forwarder and found yourself completely lost in the complexity of freight talk? Given the sheer amount of acronyms and lingo that exists within th…

Thursday, June 8, 2017

Incoterms: The commercial linchpin of international freight

  Incoterms, short for international commercial terms, are arguably one of the most important facets of international trade. Why Incoterms are used: In short, they advocate the…

Amazon arrives in Australia, autonomous vessels and a final farewell to a Korean shipping giant

by Alex Ewart

Published: Wednesday, September 6, 2017

Amazon expected to launch Australian operations in November

The tidal wave that is Amazon has finally made landfall in Australia, with the e-commerce juggernaut securing its first warehouse space in Melbourne. The space, previously owned by household hardware chain Bunnings Warehouse, is tipped to be the first in a network of fulfillment centres.

Amazon’s move into the Australian market has been well heralded and equally criticized, with industry leaders such as Gerry Harvey, founder of Harvey Norman heavily weighing in on what the e-commerce giant's presence in Australia will mean.

“They come in and because of their power in the marketplace they can sell things as loss-leaders to make no money and send everyone broke, then put up the price.”
Why Gerry Harvey, and other large retailers are nervous on Amazon’s arrival is obvious accordingly to Deloitte, with the consultancy firm under the impression that the bigger retailers will be the worst off.

"The bigger the retailer, the more of a threat Amazon's entry will be," it said. "Amazon's most direct competitors are department stores and other large retailers with a wide variety of products. The competitive advantage of having a one-stop shop for just about anything is expected to be eroded as Amazon establishes itself in the market."
It is worth noting that less than 10 percent of all retail sales in Australia are online.

So for the Amazon earthquake to do any real damage the company will need to significantly change the consumer behaviour of a heavily entrenched brick and mortar market. That said, if anyone is capable of doing it, it’s Amazon.

Source: Maritime Executive

NYK plans to trial autonomous shipping by 2019

Japanese shipping company Nippon Yusen Kaisha (NYK) and main shareholder of the ONE alliance has indicated its plan to test an autonomous containership in the Pacific Ocean in 2019.

According to Hideyuki Ango, a senior general manager at NYK affiliate Monohakobi Technology Institute, the ship under supervision of a standby crew, is to sail from Japan to North America under remote control.

NYK is not the first to indicate a movement towards autonomous technology for ships, however the news confirms that more and more carriers are beginning to take the autonomous concept seriously. Outside of the obvious efficiencies that technology can bring, there is a huge upside to carrier safety. According to insurer Allianz, between 75 and 96 percent of marine accidents are a result of human error, namely due to fatigue.

Panama Canal welcomes largest capacity boxship to date

On August 22nd, the CMA CGM Theodore Roosevelt passed through the Panama Canal making history as the largest capacity vessel to do so.

The boxship started its transit from Shanghai and en route to a majority of the US East Coast ports made the historic passing. The Panama Canal continues to play a pivotal role in the world of global trade and according to the passageways administrator it will continue to do so.

“Today’s transit not only represents the growing success and adoption of the Expanded Canal, but also its impact on reshaping world trade,” Jorge L. Quijano, Panama Canal Administrator.

The ultra large container vessel (UCLV) completed its build in July 2017 courtesy of Hyundai Heavy Industries (HHI) by order of french shipping giant CMA CGM.

In related news, HHI have been muscled out of the race to secure nine 22’000 teu ships by order of CMA CGM whom opted to move forward with Chinese state-run China State Shipbuilding Corporation (CSSC). In an ominous sign for the Korean shipyards, CSSC were able to build the vessels US$15m cheaper than HHI could offer with the CSSC final build cost coming in at US$160m per vessel.

Source: Maritime Executive

Hanjin’s final container ship offloaded to Maersk

The monumental process of selling off Hanjin’s fleet has finally been completed with the historic renaming of the Hanjin Scarlet to be now known as the Maersk Iyo.

On August 31, 2016 Hanjin filed for receivership at the Seoul Central District Court marking the true beginning of the end of the ill-fated carrier. In under a year, the trustee overseeing Hanjin’s bankruptcy proceedings has seen all boxship assets sold recouping US$220m that was owed to creditors. Unfortunately this amount only represents 2.1% of Hanjin’s debt, which now stands in the region of US$10.5bn.

It was also coincidental that the Hanjin Scarlet was the last to go, as it was one of the more high profile vessels that was caught out in the wake of the carriers collapse. The crew lay stranded off Canada’s west coast for months awaiting creditors to sell off the vessel that was caught in maritime limbo.

The vessels transition to now show the blue colours of Maersk is a significant moment in maritime history, marking the true end to the once mighty Hanjin name.