Dear Readers,
It is Thursday 9th January 2020 and I’ll now resume bothering you once a week with Project Cargo Weekly (PCW). Before I write anything further, let me first and foremost wish all readers a very Happy New Year for 2020, and wish that happiness, prosperity and safety will prevail for you all this year. We never know what is around the corner and thank goodness for that!
I’ve spent the last three weeks resting, but have still had some interesting experiences, both in shipping and otherwise, The CEO of COSCO specialized carriers and two of his senior executives visited Stockholm recently and we had a couple of interesting hours together, wherein I invited them for coffee in a typical middle-class Swedish home. They seemed to enjoy that as opposed to the usual hotel (or Starbucks), where it’s the same old stuff everywhere you go.
On a personal front, I had plenty of time to spend with my kids and my middle daughter turned eighteen, so now she doesn’t have to listen to her old man anymore. Further, when my oldest son turned thirty-one a couple of days ago, I was reminded again that in February I shall turn fifty-seven. I suppose age is just a number, although unexpected things do start to happen when growing older, which is difficult because they’re usually things we’ve never tried before, I guess.
I also managed to finally finish a couple of books and the one that most occupied my mind was that which was recently published by someone I would truly call a freedom fighter, fighting for democracy in a world of surveillance. His name is Edward Snowden. He has an interesting tale to tell, from his abrupt departure from the US, his temporary stay in Hong Kong to his current residence in Russia. Most countries under US influence wouldn’t have dared to grant him asylum, which just shows that all that talk about democracy, human rights and whatnot is exactly that: just talk.
His book Permanent Record tells the story of the NSA and the monitoring of not just ‘suspected terrorists’, but the monitoring of everyone, with apparently big US tech giants following suit without question. I would recommend this book to anyone using the internet nowadays, which I suppose covers ninety percent of civilised humanity. The fight against terrorism should take precedence always, but it shouldn’t be a blank cheque for anyone! I am currently following that up by reading a book called Dopesick, which is about drug and opioid additions and the profit derived from it by a selected few. However, with work now starting again and the travelling circus slowly beginning, let’s see when I finally finish this one!
On the political front, it had been relatively quiet until the past few days of rhetoric between the USA and Iran, which has dramatically increased to the point of people making claims of impending conflict. Let’s find what it means, not only for shipping, but also for ordinary people who always seem to take the brunt of the difficulties during conflicts and sanctions.
We’ll start off 2020 with ‘PCW-Lite’, which means I have been in touch with a few shipping professionals around the world and I have asked them all basically the same three questions, mainly about how they celebrated the new year, what they expect from 2020 and what their plans are business-wise. I very much hope you will enjoy this light-hearted info, which I will continue next week, before we dive back into our regular in-depth and personal interviews with worldwide shipping contributors. Of course, this week as always, we provide you with trade intelligence, our video and picture of the week as well as some good-old wise words, just in case you haven’t found any in this editorial!
Until next week, I remain,
Yours sincerely,
Bo H. Drewsen
bo.drewsen@projectcargo-weekly.com
Three quick questions with
Mr Pratap Nair
FEI CARGO LTD – MUMBAI, INDIA
pratapnair@feicargo.com | www.feicargo.com
How was your New Year’s Celebration?
It was totally different from my usual celebration, in fact I did something I have never done in my life before. I went to see a stand-up comedy show, (my first time to see it live). I got out at about ten-thirty P.M and went to a café with a difference. Specifically, it was playing light classical music and had very little unwanted crowd, so there was no shouting and loud laughing, as well as having excellent service and very nice food. They were meant to close at eleven-thirty, but they were able to stay open for a little longer. I welcomed the new year sitting in the car with my wife and another couple we know, by simply shouting ‘Happy new year’ and Happy new decade!’ I reminded them all that this decade is going to be mine, and I am going to live differently for the next ten years.
What are your thoughts in terms of business for 2020?
Personally, I feel that we are going to conquer the world. We are going to be totally professional, while still maintaining the personal touch that we are known for, but we’ve not paid enough attention or focused enough on our top or bottom lines. Now we are going to keep an eye on these and I believe that you will see us become a very prosperous organisation very soon.
Do you generally have a negative, moderate or positive outlook for 2020?
Not just considering this next year or next decade, but I have always been a very positive and optimistic person. I believe that everything happens for a reason and a dip is just as important as a high. It’s going to be good for everyone. People, specifically business people, are becoming much more grounded these days and that’s a very good sign. I realise that our prosperity is directly connected to our vendors’ and customers’ prosperity and I am waiting for inclusive growth, which is more sustainable. I do not want to grow either on my vendors’ or customers’ cost. Rather, I would like to contribute to their growth as we grow together with them.
Three quick questions with
Mr Stian Omli
HÖEGH AUTOLINERS – OSLO, NORWAY
stian.omli@hoegh.com | www.hoeghautoliners.com
How was your New Years Celebration?
New Years was celebrated at home in Oslo in crisp and clear winter weather with friends and family. Traditional Turkey dinner, some red wine and fireworks.
What are your thoughts in terms of business for 2020?
I remain cautiously optimistic for 2020 as it seems the US and China will try to mend the fences. Geopolitics do play a major role in adding to uncertainty around the globe. Multilateral agreements and open trade is replaced with bilateral agreements and more protectionism. This is certainly not good news for any shipping segment or world trade at large. Generally investments in infrastructure and construction have been sluggish for several years, hence if the overall world economy improves, this pent up demand will come back. However, I don’t think we can believe in miracles, but a slight improvement is indeed likely.
Do you generally have a negative, moderate or positive outlook for 2020?
Remain moderate positive I would say, but still many clouds in the horizon and any economic growth is fragile. Believe that more and more shippers are starting to see the many benefits of RoRo shipping vs traditional LoLo. Hence, for the RoRo segment I remain positive for increased market share and more project and Breakbulk cargo finding its way up the ramp – rock n roll style!
Three quick questions with
Mr Kasra Ferasat
AMERICAN EXPORT LINES – LOS ANGELES, USA
kasra@shipit.com | www.shipit.com
How was your New Years Celebration?
I went to a good friend’s house party. We had a great time within our newly remodelled home and surrounded by some of my closest friends who I haven’t seen in a while. Overall, I think that’s the best way to start the next decade!
What are your thoughts in terms of business for 2020?
I think we will see a modest increase in business in 2020 thanks to the O&G market increasing offshore activity as well as an increase in mining activity globally as commodity and precious metals prices increase. Also, there are other areas of global trade picking up after a prolonged time of uncertainty.
Additionally, I expect a trend towards resource protectionism/nationalism in certain countries as trade tensions escalate across the world. When this occurs, commodity and precious metals prices will increase because of supply shortages in various markets.
While trade fears persist and may become the new norm over the next decade, we freight forwarders will still have opportunities to grow our customer base and offerings through well considered innovation, new service offerings and business process optimization.
Do you generally have a negative, moderate or positive outlook for 2020?
I have a moderate outlook for 2020. These days everyone thinks the stock market is what drives actual market activity around global trade, but the stock market is not a good barometer of global trade and shipping in general. We look at the actual market activity and news within a sector such as O&G, Power Generation, Mining, etc to see where the trend and market growth lies. IMO 2020 will increase in shipping costs and create great profits for ship owners, in particular, those in the tanker markets. Shipping lines will struggle to grasp the true cost in various markets in Q1 and Q2 of 2020 as Low Sulphur Fuel prices will vary considerably in certain markets while fuel suppliers and fuel buyers figure out the supply/demand dynamics of the IMO 2020 requirements.
Three quick questions with
Mr. Murilo Caldana
FOX BRASIL – SAO PAULO
murilo@foxbrasil.com | www.foxbrasil.com
How was your New Year’s celebration?
It was very good, thank you. In Brazil, we like to celebrate the new year at the beach because, unlike much of the world, it’s summer time for us. The tradition here is for most people to dress in white, which we believe may bring us a peaceful new year.
What are your thoughts in terms of business for 2020?
We are extremely excited about our improving economy. After so many years of Brazil having such slow GDP growth, as per World Bank intelligence, Brazil should grow around 2.5% this year, which is great news for us all.
We have new packages for the privatisation of our infrastructure, specifically the ports, airports, railways and highways. We have also changed the rules for oil and gas drilling, where Petrobras will no-longer be permitted to be the major partner.
We have huge investments on pulp and paper production and, consequently, investments in energy.
Do you generally have a negative, moderate or positive outlook for 2020?
My general outlook for the coming year 2020 is very positive, mostly for the reasons I have mentioned.
Three quick questions with
Mrs Tatiana Serova
ART BUSINESS GROUP – KAZAKHSTAN
tatiana.serova@art-businessgroup.com | www.art-businessgroup.com
How was your New Year’s celebration?
New Year is a very special time for our countries when the entire family can gather together, enjoy each other’s company, exchange gifts and discuss plans for the year ahead. We had a very traditional New Year celebration with a big hearty dinner, watching some Russian classic movies and enjoying family time.
What are your thoughts in terms of business for 2020?
For A.R.T. Logistics 2019 was a very successful year, during which we were involved in several very interesting widescale projects in Central Asia and Russia. We’re also very optimistic for 2020, which already has started for us with ongoing and some new projects to Russia and Kazakhstan.
Do you generally have a negative, moderate or positive outlook for 2020?
As I mentioned already, we have a very positive outlook for 2020: the business environment and market tendencies in areas of our expertise, which are Kazakhstan & Central Asia and Russia, are quite promising and we expect that 2020 will be even more active and successful than the previous year.
Three quick questions with
Mr Noureddine Mannai
CMC TUNISIA
nmannai@cmc.tn | www.cmc-tn.com
How was your New Year’s celebration?
It was very good thanks! This year, I celebrated the new year at my home with a few good friends. It was lots of fun.
What are your thoughts in terms of business for 2020?
My plan is too consolidate the synergy of our branches here with our branches in France and take advantage of the opportunities to succeed in the new logistics investments.
Do you generally have a negative, moderate or positive outlook for 2020?
Frankly, I’m not predicting an exceptional year for 2020, so I just foresee moderate perspectives for the coming year. Of course, I’m open to being pleasantly surprised!
Three quick questions with
Mr. Henrik Slothuus Hansen
OCEAN7 PROJECTS – DENMARK
henrik@ocean7projects.com | https://ocean7projects.com
How was your New Year’s celebration?
Thanks for asking! It was a very relaxed time. I attended a noon-time big-band concert with a good friend and colleague and our spouses in Odense. The theme of the concert was ‘Bond vs. Tarantino’, which was appropriately glamorous for a New Year’s Eve celebration and subsequent dinner with my family.
What are your thoughts in terms of business for 2020?
Thoughts are many, insights are few.
My first thought is that, for many in our industry, the changing emission standards that came into effect on January 1st will surely affect us. We will surely feel an impact on the industry, with older and less fuel-efficient tonnage being at a disadvantage and eventually increasing the industry’s propensity to retire and scrap such tonnage.
Eventually, increased costs for bunkers cannot be borne by owners and can be paid only by end-users. Other interesting perspectives on 2020 denote the impact from improved trade relations between the US and China. However, whether this has really affected anything but fast-moving consumer goods up until now is perhaps questionable. Perhaps it’s also worth keeping an eye on whether popular pressure on the government in Australia to reduce coal production and export can spark a significant increase in tonne-miles for coal, affecting bulk carrier rates.
On an industry segment level, however, I would expect to see no significant changes throughout 2020.
Do you generally have a negative, moderate or positive outlook for 2020?
As I have said, my expectations for 2020 are moderate to mildly optimistic for both the shipping industry as a whole as well as our segment of the industry.
Swire Enters New Partnership from NZ to Pacific Islands
Swire Shipping today announced it will be entering a new vessel sharing partnership from New Zealand to Tonga, Samoa (Apia), Cook Islands and Fiji. This market leading service will depart every 10 days from Auckland.
Swire Shipping will charter and deploy one vessel on the service; Matson will operate two vessels (currently MV Imua II and MV Olomana). The vessels are 8,000 dwt. The new service will commence in January 2020.
Hutchison Ports Stockholm – Newsletter
Editor’s Note:
Stockholm capital of Sweden finally moves into the big league which is justified by growth and perfect location in the Baltic.
In this December newsletter from Hutchison Ports Stockholm you will find information on the completion of the railway tunnel, the latest development of their equipment, the ubi app, their gate operations process and an introduction to one of their team members.
ICC’s Trade Terms, Straight to Your Mobile Device
Editor’s Note:
Incoterms 2020 are here, and perhaps it’d be a good idea to download their app.
The Incoterms 2020 app is the official tool from the International Chamber of Commerce that brings together essential news, information and insight regarding the commercial trade terms.
Dürr Chosen by BMW as General Contractor for Three Paint Shops in China and Hungary
BMW is relying on Dürr’s experience and technological leadership to expand its painting capacities in Asia and Europe. In Shenyang (China), Dürr is building a new paint shop and extending an existing painting system.
BMW is also working with Dürr on a further new paint shop in a new plant in Debrecen, Hungary. Dürr sets standards in the painting process with state-of-the-art technology. The orders for the construction of the two plants in China were posted in the fourth quarter of 2019.
High-Speed Train in Morocco to Connect Casablanca Airport
Morocco’s Minister of Equipment and Transport Abdelkader Amara has announced that the country will invest MAD 3.8 billion to link Morocco’s high-speed train, known as TGV, LGV or Al Boraq, with the Mohammed V International Airport in Casablanca.
The announcement came during field visits to the Casablanca-Settat region last week, convening ministers, government officials, and elected representatives.
Libya Revives Plans for Benghazi Power Plant
The General Electricity Company of Libya (Gecol) intend to go ahead with the plan to build a major power combined-cycle gas turbine (CCGT) power plant in Benghazi, according to a source familiar with the scheme.
It is unclear whether the client is undertaking a competitive bidding process or direct negotiations for the planned greenfield CCGT power plant, which could have a generation capacity of up to 1.5GW.
EnWave Receives Purchase Order for Large-Scale 100kW nutraREV(R) Processing Line from Fresh Business Peru
EnWave Corporation reports today that it has signed an Equipment Purchase Agreement for the delivery of a 100kW nutraREV processing line to Consulting FB Tech and Apps S.L. in Peru. The Agreement marks the scale-up of Fresh Business’ commercial operations in Peru, where it sources premium, highly nutritious fruit and vegetable products to be dried using EnWave’s Radiant Energy Vacuum technology for export to international markets.
EnWave and Fresh Business signed a royalty-bearing commercial license agreement in April 2019, whereby EnWave granted Fresh Business the exclusive rights to produce a variety of premium dried food products using REV technology in Peru. Fresh Business purchased a 10kW REVT machine upon signing the License.
Fiji Ports Terminal Final Video
Editor’s Note:
Bula – as they say in Fijian language! I visited this wonderful group of islands back in 1986 but regrettably, I havent been back there since. The ports there are developing too. See this interesting video below.
Editor’s Note:
I flew to China on Air China from Stockholm on January 2nd and I had a great view passing Mongolia towards Inner Mongolia and Beijing. Underneath the clouds, project cargo is at work, in this case windturbines being installed near Hohhot, China.
