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Policy & Economy News |
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Indian GDP grows 8.2% in Q1, highest in 15 quarters Exports to play prominent role in Shaping India's future growth story |
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Business News - The India Boom Factor |
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India's export of coconut products between 2014-18 rises to Rs 6,448 cr. India's Containerised trade with World grows 10% during H1 2018 : Maersk Trade Report Coal import rises 12% to 79 million tonnes in April-July Pulses export more than doubles in April-July period Mauritius tops India's FDI charts again in FY18 Automobile, pharma firms big beneficiaries of export incentive scheme |
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Shipping News |
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Avana Logistek initiates coastal container service at Kakinada Port CMA CGM to reshuffle EPIC 1 service between North Europe & Indian Subcontinent Maersk Line steps up on digitisation to enable paperless trade between India & Nepal India's cabotage reform help carriers cut repositioning costs |
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Logistics News |
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Mahindra Logistics buys into technology startup ShipX CONCOR substantially increases free time for loaded & empty containers at its terminals |
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Indian Port News |
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First ship arrives at Penna Cement Terminal at Cochin Port Growth of 5.13 percent registered at Major Ports during Apr-Aug'18 |
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Policy & Economy News |
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Indian GDP grows 8.2% in Q1, highest in 15 quarters
Daily Shipping Times - New Delhi, Sep 4 Top |
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The Indian economy grew at 15-quarter high of 8.2% in the April-June quarter of the current fiscal on good show by manufacturing and farm sectors, according to the Government data released. The previous high quarterly GDP growth was recorded in July-September period in 2014-15 at 8.4%. The gross domestic product (GDP) at constant (2011-12) prices in the first quarter of 2018-19 is estimated at Rs 33.74 lakh crore, as against Rs 31.18 lakh crore in Q1 of 2017-18, showing a growth rate of 8.2%, a Central Statistics Office statement said For the first three months of 2018, India reported a 7.7% annual growth. The world's second-largest economy, China, reported a 6.7% growth for the June quarter compared with 6.8% in March quarter. India's $2.597 trillion economy surpassed France's in 2017 to be the world's sixth largest, and it was not far before the United Kingdom, according to World Bank data. |
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Exports to play prominent role in Shaping India's future growth story Daily Shipping Times -Mumbai, Sep 4 Top |
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In 1775, Asia accounted for 80% of global output, with China and India together representing two-thirds of global production. The centre of power gradually shifted to Europe between 1750 and 1850, and by 1950, Western Europe and the US accounted for more than half of global production, with India's share reduced to only 4.2%. The picture is changing today. Developing Asia accounts for 29% of global GDP and 32.5% of global trade. India recently became the sixth-largest economy in the world and, according to the International Monetary Fund, India would be the fastest-growing large economy in the world during 2018-19. This growth in output stems largely from domestic demand, which is a significant departure from the export-led growth strategy followed by several Asian economies Scope of export-led growth strategy in India India's growth has been largely driven by domestic demand, exports are expected to play a prominent role in scripting India's future growth story, especially in light of the revival in global demand. Some of the crucial themes for the export strategy would be demand-based export diversification, alleviating structural deficiencies, easing supply-side constraints, and integrating the country in global value chains (GVCs). There is a need to shift our focus from exporting what we can (or supply-based), to items that are globally-demanded. Currently, major export products for India, accounting for nearly 75% of the total exports, have a share of only 33.5% in the global imports. India has limited presence in major trade sectors like machinery and electronics, which have strong trade-investment links and a significantly large share in global imports. Enhancing our exports of machinery and electronics will require integration in GVCs of these products, which will necessitate measures aimed at trade facilitation, improvement in business environment, reduction in barriers to trade, and improvement in logistics. Recognising the need for improvement in logistics, the Government has already started a wide array of projects including the Bharatmala and Sagarmala initiatives, and establishing Coastal Economic Zones, which are expected to bode well for exports. The Government is also working towards a national strategy for standardisation to tackle challenges pertaining to quality and compliance with standards. Identification and conformance to specific standards and regulations across different industries could enhance our participation in GVCs. Apart from diversification towards high-value-added products, India also needs to penetrate new emerging markets. Growing protectionism in the West, larger financial flows towards developing and middle-income countries, and the rapidly expanding middle class in Africa, Latin America and Asia means that South-South trade relations would increasingly gain importance for Indian exports. Thus, going forward, strategies focused on increasing access to these markets will be important. The Africa- Asia Growth Corridor shall form a critical element of a market diversification strategy. And access to new trade routes through projects-such as the Chabahar Port in Iran and the North-South Corridor of Iran's Bandar Abbas Port-will improve our access into the markets of Central Asia and Russia. In addition, India needs to adopt non-price mechanisms for boosting export competitiveness, in the light of increasing demands to cut back on export subsidy schemes under the WTO Agreement on Subsidies and Countervailing Measures. Existing allocation of funds towards subsidy need to be redirected to create capacity for value-added exports. Increasingly, non-price factors like quality, innovation, trade agreements and concessions in reciprocal exports will form the key tenets for building India's export competitiveness. The Government is already working on several of the aforementioned aspects of export promotion, armed with its arsenal of ambitious schemes and policies. All that is needed now is a swift and concerted effort to accelerate the implementation and create a conducive environment for projects to take off. It is time for India to embrace the export-growth strategy, outsmart the 'middle-income trap' and lead the world's biggest democracy to its very own 'Great Leap Forward'. |
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Business News - The India Boom Factor |
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India's export of coconut products between 2014-18 rises to Rs 6,448 cr.
Exim News Service: Kochi, Sept. 5 Top |
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India's export of coconut products increased to Rs 6,448 crore in value terms during the last four years as against Rs 3,975 crore in the previous ten years, the Agriculture Ministry revealed. A quantum leap in the export of coconut products is expected in the near future as the price of the products is increasingly seen to become highly competitive, it further said. The government is promoting coconut product exports by giving 5 per cent incentive under the new Foreign Trade Policy for 2015-20, reports said. |
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India's Containerised trade with World grows 10% during H1 2018 : Maersk Trade Report
Daily Shipping Times -Mumbai, Sep 5 Top |
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India's containerised trade with the world has witnessed a double digit growth of 10% , driven by the fluctuating Indian Rupee, growing industrial production and ongoing infrastructure developments. Additionally, China's restrictions on waste paper imports and dynamic trade relations with the United States favoured India's import- export market, making India one of the fastest growing trade economies in the world The automotive sector has made a strong start, with a significant upsurge in exports, as the demand for auto and auto ancillary has grown in the United States, Turkey and Egypt. Likewise, the high import growth during the same period was fuelled particularly by the import of paper, scrap metal and recyclables into North India from the United States and North Europe. Steve Felder, Managing Director for Maersk Line - South Asia said, "Evolving external bilateral trade dynamics, coupled with an increasingly robust domestic trade environment is enabling India to position itself as among the most pursued global destinations for foreign investments. I foresee the Government's efforts to strengthen its economic and strategic relations with Southeast Asian Nations (ASEAN) and the rising digitisation in the industry playing a significant role in further catalysing India's import-export growth opportunity in the months to come." PAPER - THE HIGHEST VOLUME IMPORT COMMODITY China's decision at the start of the year to increase restrictions on waste imports and close certain types of factories to reduce pollution has continued to benefit local Indian paper recyclers and manufacturers The United Kingdom and North Europe relied on China as an outlet for waste paper that could not be recycled domestically, sending more than 1.4 million tonnes of recovered paper to China every year. As these commodities continue to seek new markets, India along with other Southeast Asian nations such as Vietnam and Malaysia pose as attractive destinations. "The cost of producing paper in India is high. Hence, paper imports have increased from Germany, Belgium, United Kingdom and the United States," explains Felder. Additionally, the rising domestic demand for newsprint, packaging and writing paper has led to a growth of 29% in waste paper imports to India, making it the fastest growing paper market The Government's emphasis on education and literacy, followed by increasing retail consumption in terms of packaging of FMCG products and rising healthcare demands have been driving the packaging paper industry across India. REEFER IMPORTS DECLINE India imposed a ban on the import of Chinese grown apples and pears in May 2017 due to lack of Phytosanitary certification on the quality of imported fruits. "As the Indian Government weighs in on tariff hikes for products from the United States like apples, almonds and walnuts, the trade in the upcoming quarters would have a significant impact on origin imports from the North American region if the policy is implemented," explains Felder. "The biggest challenge for the trade in general and container trade in India is the lack of infrastructure. The incorrect loading of refrigerated cargo into a reefer container or an error in temperature setting can prove disastrous for the consignment. Having said that, refrigerated cargo is much more promising as a segment, as there is 20-30 percent of wastage in perishables, which can be reduced and converted into consumables by maintaining a good and robust cold chain," said Ajit Venkataraman, Managing Director, APM Terminals - South Asia, a part of Maersk's Transport & Logistics.  "Development of cold chain infrastructure near the source of produce/catch combined with washing, segregation and packaging in the same location, and transportation by temperature-controlled trucks, ensures a seamless flow of cargo through the supply chain. Such positioning will help improve the shelf life and cargo quality. It will also help reduce wastage. This is an untapped potential in the cold chain segment." he adds. UNITED STATES ONE OF THE TOP MARKETS FOR 'MADE IN INDIA' VEHICLES The United States has emerged as one of the top export markets for Indian automakers as it has increasingly become a large automotive manufacturing hub, selling to about 175 Countries (SIAM). However, the passenger vehicle segment exports to developed countries like the United Kingdom and Northern Europe, which were one of the largest automotive export markets for India, have witnessed a stagnant period As per the U.S. Energy Information Administration (EIA), more than 92% of the transport sector in the United States depends on liquid or fossil fuels with passenger vehicle segment having a sizable chunk. "India is emerging as an automobile export hub piggybacking on factors such as skilled resources, labour cost, quality of automotive manufacturing and engineering. The government's focus on improving port infrastructure would further contribute to its automobile export competitiveness." explains Felder. UNITED KINGDOM, AN ELECTRIC VEHICLE SUPPORTER The Centre of Automotive Management (CAM) has stated that the EV sales in the United Kingdom have risen to 11% last year, placing the nation in the premier league of the countries switching from petrol and diesel engines. Exports to the United Kingdom, which was the second-largest market after Mexico in FY17, have fallen by almost half to $220 million in FY18. Meanwhile, exports to Spain and Italy have witnessed a drop of 7%, and 4% respectively "The advent of electric vehicles in the developed countries might be one of the reasons for a dip in the auto exports to these regions. Countries around the world, especially, United Kingdom & Northern Europe with an evident exclusion of the United States, are increasingly recognising the shift from a fossil fuel to one that is a more sustainable, green energy." NORTH INDIA LEADS THE COUNTRY'S GROWTH STORY In the first half of 2018, India has observed a solid economic growth of 7.8%, emerging from the effects of demonetisation and GST implementation (Source: Nomura) The exports from North India has grown at 13% while the imports rose substantially - thereby helping North India clock the highest growth of 23% among all four regions "There have been no major hiccups in India's overall import-export trade - the impact of GST has now largely subsided - although there are mixed reports about the timeliness and velocity of GST refunds; potential trade opportunities have been converted with competitive pricing, quality product and growing domestic demands. India has been actively buying raw materials such as plastic, rubber and metal to safeguard of its manufacturing and infrastructure sectors," explains Felder. Textiles, apparels, plastic and chemicals were some of the top exported commodities from the North of the Country. The leading export destinations for these products were United States and Saudi Arabia. Turkey also emerged as one of the top export destinations of Indian made vehicles, plastic and rubber commodities, however the sharp weakening of the Lira may put this under pressure in the future. "The weaker rupee and supportive Government policies have helped Indian exporters to step up exports orders, especially in the current dynamic trade environment." adds Felder. "The Government plans to double the Country's agricultural exports by 2022 through various policy reforms like the agriculture export policy which will help the SME's and exporters from hinterland to be price competitive in the global market. This will also promote investments and facilitate technology and skill upgrade leading to job creation. These fiscal and non-fiscal incentives by the government will further boost the Export-Import trade in both advanced and emerging markets in the near future," Felder concludes.  "India is going through a transformation and especially with the introduction of GST, infrastructure developments like dedicated freight corridors, most of the landscape today is a hot bed of opportunities. Around 60 percent of goods and services in India are containerised, whereas in developed market it is 70-75 percent. There is a huge opportunity to tap the market in containerised segment," said Mr.Ajit Venkataraman. |
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Coal import rises 12% to 79 million tonnes in April-July
Daily Shipping Times -Mumbai, Sep 5 Top |
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India's coal import rose 11.9 per cent to 78.7 million tonnes in the first four months of the current fiscal. The Country had imported 70.3 million tonnes (MT) coal in April-July period of the last fiscal, mjunction services, a joint venture between Tata Steel and SAIL, has said. "Overall, coal and coke imports during the first 4 months (April-July) of 2018-19 stood at 78.79 MT, about 12 per cent higher than 70.33 MT recorded for the same period last year," it said. The Country's coal import in July increased by 42 per cent to 20.79 MT (provisional), over 14.64 MT (revised) in the same month previous year. "Coal import (all types of coal) in July 2018 stood at 20.79 million tonnes (MT) (provisional), higher than 18.75 MT (revised) in June 2018 and also higher than 14.64 MT (revised) in July 2017," mjunction services said. The Government earlier said that during 2017-18 coal imports increased to 208.27 MT due to increase in demand by consuming sectors. The Country's coal import fell from 217.7 million tonnes in 2014-15 to 190.9 MT in 2016-17. |
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Pulses export more than doubles in April-July period
Daily Shipping Times -New Delhi, Sep 5 Top |
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Pulses export from India more than doubled in first four months of this fiscal after the Government removed restrictions to increase shipments as it aims to double the Country's agricultural products exports to over $60 billion by 2022 The export of pulses was 1,24,465 tonne during April-July this year against Rs 58,575 tonne in the year-ago period, up by 112.5%, according to official data. Pulses export was restricted until November last year, when it was completely made free of all curbs. "All varieties of pulses, including organic pulses, have been made 'free' for export without any quantitative ceilings, till further orders," the Director General of Foreign Trade said in the notification. India's total pulses exports were about 1,80,194 tonne, valued at $ 228.32 million (`1,473 crore) in 2017-18. |
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Mauritius tops India's FDI charts again in FY18
Economic Times- September 2 Top |
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Mauritius remained the top source of foreign direct investment into India in 2017-18 followed by, whereas total FDI stood at USD 37.36 billion in the financial year, a marginal rise over the USD 36.31 billion recorded in the previous fiscal, according to RBI data. While FDI from Mauritius totalled USD 13.41 billion as against USD 13.38 billion in the previous year, inflows from Singapore rose to USD 9.27 billion from USD 6.52 billion. Even as FDI from Netherlands declined marginally to USD 2.67 billion as against USD 3.23 billion in the year-ago period. The provisional data for the financial year ended March revealed that foreign direct investment (FDI) into the manufacturing sector witnessed a substantial decline to USD 7.06 billion, as against USD 11.97 billion in the year-ago period. However, FDI into communication services rose to USD 8.8 billion in 2017-18 as compared to USD 5.8 billion. The inflows into retail and wholesale trade also shot up to USD 4.47 billion as against USD 2.77 billion, while financial services sector too witnessed a rise in inflows to USD 4.07 billion from USD 3.73 billion in the previous year. "The fact that these sectors have accounted for more than 50 per cent of the total FDI of USD 37.36 billion in 2017-18 reflects the kind of global interest being generated into the new areas of economy, including online marketplace, financial technologies or Fin-tech," said Assocham. FDI in computer services was recorded at USD 3.17 billion as against USD 1.93 billion in the previous year. Inflows in real estate activities jumped four-fold to USD 405 million as compared to USD 105 million; while FDI in Education and R&D stood at USD 347 million versus USD 205 million in FY 2016-17. "With several key indicators like corporate earnings, uptick in topline and consumer demand showing a marked improvement on the back of good and well-spread monsoon, the investment sentiment is expected to gain momentum in the next few quarters and would further improve in the FY 2019-20," the chamber said. Sectors like construction and mining witnessed a decline in FDI inflows during 2017-18, whereas electricity and other energy generation, distribution and transmission and restaurants and hotels recorded a slight increase in inflows, as per data from the Reserve Bank of India's annual report. |
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Automobile, pharma firms big beneficiaries of export incentive scheme
India Seatrade News - Sep 4 Top |
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Automobile and pharmaceutical companies have emerged as big beneficiaries of the commerce ministry's export incentive scheme 'MEIS' as they have received the major portion of the disbursals. Under the Merchandise Exports from India Scheme (MEIS), the government provides duty benefits at different rates depending on product and country. Rewards under the scheme are payable as percentage of realised free-on-board value and MEIS duty credit scrip can be transferred or used for payment of a number of duties including the basic customs duty. The top 10 companies that have obtained maximum disbursals during 2017-18 under the scheme includes JSW Steel (Rs 301.5 crore), Ford India (Rs 272.8 crore), Bajaj Auto (Rs 246.5 crore), Dr Reddys Lab (Rs 240.6 crore), Aurobindo Pharma (Rs 211.3 crore), Mylan lab (Rs 192.9 crore), Hyundai Motor India (Rs 189.3 crore), Vedanta Ltd (Rs 180 crore), Lupin Ltd (Rs 155 crore), and Nissan Motor India (Rs 150 crore). The other firms which have gained from the scheme include Tata Motors, Hindalco Industries, Hetero Labs, Maruti Suzuki India, Cipla Ltd, Reliance Industries, General Motors India and Shahi Exports. Similarly in 2016-17 also, companies from automobile and pharmaceutical sectors topped the chart in getting the maximum benefit under the MEIS. In 2017-18, the ministry disbursed about Rs 31,000 crore to exporters under the scheme, while it was over Rs 23,000 crore in the previous fiscal. Going ahead, the government may have to change the scheme as it was challenged by the US in the World Trade Organisation's dispute settlement system. The US had alleged that such incentive schemes were harming American companies and they are not in compliance with the global trade rules Government officials have earlier stated that they may look at reviewing the existing export incentive schemes to ensure that they comply with the WTO norms. The US had alleged that thousands of Indian companies are receiving benefits totalling over USD 7 billion annually under various export promotion programmes. |
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Shipping News |
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Avana Logistek initiates coastal container service at Kakinada Port
Exim News Service - Chennai, Sept. 3 Top |
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A new regular service has been launched by Avana Logistek Ltd, formerly known as Shreyas Relay Systems Ltd, a Transworld Group company. The company's first coastal container service was initiated at Kakinada Port with the arrival of SSL Mumbai on August 21, 2018, informed a release. Coastal shipping is considered a safer, low-cost and eco-friendly mode of transport compared to road and rail. Transworld Group is the industry leader in the domestic coastal sector, delivering services that are efficient, dependable and cost-effective to its customers. The new service will ensure seamless connectivity between ports along the two coasts and Shreyas Shipping and Logistics Ltd which is the first company into coastal container services linking all major ports in the country. The deployment of the vessel has been done under the existing East Coast and will have the following port rotation with 10 day routine: Krishnapatnam-Haldia-Paradip-Kakinada-Krishnapatnam. It will cater to the East Godavari area which is known as the rice bowl of India. Mr Muraleedharan, Business Head, Avana Logistek, said Avana is looking at opportunities to increase its portfolio of coastal shipping services by being the first company to launch coastal container shipping services from the port of Kakinada, thereby embarking on providing weekly seamless connectivity between the east and west coast of India. It has also started booking cargo from Gujarat and West Bengal to Kakinada, which shall enable all private rice millers to send the rice from Kakinada to Cochin in a cost-effective manner. He added that Avana Logistek has again bagged a contract from FCI for the movement of rice from Kakinada to Kerala depots for 2 years, which will strengthen the Kakinada services, the release said. |
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CMA CGM to reshuffle EPIC 1 service between North Europe & Indian Subcontinent Exim News Service - Marseilles, Sept. 3 Top |
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In a continued effort to provide its customers with reliable and efficient service, CMA CGM will reshuffle its EPIC 1 service connecting North Europe with the Indian Subcontinent. As per a release, London Gateway will replace Felixstowe and the Dunkirk call will be suspended. The new rotation is as follows: Southampton - Rotterdam - Antwerp - London Gateway - Le Havre - King Abdullah - Djibouti - Port Qasim - Nhava Sheva - Hazira - Mundra - King Abdullah - Gioia Tauro - Tanger Med - Southampton As from m/v MSC ATHOS 0EG19W1MA, EPIC 1 will call at London Gateway (ETA September 10, 2018) instead of Felixstowe. m/v MSC MARIA ELENA will be the last vessel to call at Dunkirk (ETA September 13, 2018). The release added that the following options for Dunkirk shipments can be offered: * Westbound: via Southampton on FAL 1 * Eastbound: via Le Havre on EURAF 1 | ||
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Maersk Line steps up on digitisation to enable paperless trade between India & Nepal Exim News Service - Mumbai, Sept. 4 Top |
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First shipping line to deploy ECTS to facilitate trade to Nepal transhipping from
Visakha Container Terminal ( VCT) to ICD Birgunj
Maersk Line, the global containerised division of A.P. Moller - Maersk, has announced the deployment of Electronic Cargo Tracking System or ECTS to enable paperless trade between India and Nepal. It is the first liner to adopt this paperless mode of trade against the conventional one-time bottle seal. This is also the first time it has been done at an Indian port, transhipping to other countries such as Nepal, thus getting rid of documentation hurdles, said a release. Commenting on this announcement, Mr Steve Felder, Managing Director, Maersk Line (India, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives), said, "This is a continuation of Maersk Line's focus on digitisation to enable paperless trade across the globe. Addressing our customer needs is paramount and this system will tremendously aid in this process. We will continue to focus on creating a climate of ease of doing business to ensure seamless trade in the region through our integrated logistical offerings." In June last year, Maersk Line moved the first-ever container shipment from Visakhapatnam to an Inland Container Depot (ICD) at Birgunj in Southern Nepal via the 'Kathmandu Express', an exclusive block train service with a guaranteed fixed transit time. Customers then had dependency on physical document and confirmation post-discharge, increasing the transit time and laden ground rent. This system will effectively be replaced by the ECTS. The new system will be documentation-free, doing away with complex letter of credit verification process and replaced with a replica of SMTP process followed for ICD movements inside India. Additionally, the electronic seals shall be allotted to shipping lines to manage the storage at Visakhapatnam and reverse logistics from international borders Currently, 99 per cent of Maersk Line's bookings are done online, while 97 per cent of the shipping instructions are issued online. This transhipment modality will be powered by GPS-enabled sealing with a one-time seal, which shall report real-time location backed by alarms upon tampering. Only Customs officials will have the authority to seal and unseal it. The process has thus been made easier with Maersk Line's direct product at Visakhapatnam powered by ECTS, said a release. | ||
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India's cabotage reform help carriers cut repositioning costs Daily Shipping Times -Mumbai, Sep 4 Top |
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For now, India's liberalized cabotage program has seen a modest success. That's because the latest stakeholder data show the cabotage policy is slowly but steadily driving transshipment activity at some domestic ports, but the bulk of those moderate gains thus far have come from empty container repositioning by ocean carriers operating to/from the emerging market economy. After India implemented cabotage relaxation May 21, foreign-flag carriers became free to transport laden export-import containers for transshipment and empty containers for repositioning between Indian Ports without any specific permission or license from local maritime authorities. The change was essentially intended to create a level playing field in coastal freight handling, which was previously the exclusive domain of Indian-flag ship operators. Highlighting the benefits of that reform, the Container Shipping Lines' Association of India (CSLA) - the umbrella body of foreign carriers in trades to/from India - estimated that member lines "transshipped" 16,543 TEU at Indian Ports during July, as a result of the cabotage relaxation, which is volume the group argues would otherwise have been relayed over foreign hub ports - such as Colombo (Sri Lanka), Singapore, and Port Klang (Malaysia), using feeder networks. July statistics By international hub, the percentage of Indian recaptured freight in July is: Colombo, 6,783 TEU (41 percent); Singapore, 3,639 TEU (22 percent); Klang port, 1,820 TEU (11 percent); and others, 4,301 (26 percent), according to CSLA. However, a JOC analysis of those figures shows 12,407 TEU, or roughly 75 percent, represented empty containers, with laden export-import freight pegged at 4,136 TEU. The picture was little-changed from June, the first full month after the cabotage reform was announced, with laden containers then estimated at 2,312 TEU, out of the perceived, incremental 11,589 TEU of transshipment. Further, the analysis appears to reaffirm a general industry argument/view that privately operated Minor Ports would stand to gain the most from the cabotage rule change, due to their pricing and infrastructure competitiveness, compared with Government-owned rivals, as the majority of such transshipment gains reported by CSLA for June was generated by Adani Group's terminals at Mundra and Hazira. July statistics by terminal were not immediately available. On the East Coast, the Visakhapatnam Port and the privately operated Krishnapatnam Port are leading the transshipment race, data show. Repositioning containers - costly for ocean carriers Repositioning empty containers - from surplus locations to deficit areas - is typically a challenging/costly task for ocean carriers, especially in the Indian market, where logistics costs are considerably high. The above analysis is a clear sign that unrestricted Coastal Shipping - thanks to the scrapping of cabotage - is helping carriers reduce their transportation costs associated with equipment relocation Transshipment traffic is the cargo that is transported between an Indian Port and an International Hub Port, when direct mainline connections are not available. This inadequacy is more pronounced on India's East Coast, where ports generally lack the necessary draft and other infrastructure capabilities to handle the latest generation ships As a result, as much as 35 percent of the total 9.14 million TEU handled at Major Ports during fiscal 2017-2018 was transshipped, with Colombo commanding the largest pie, according to a recent JOC study With a renewed Government focus on port development and Ease-of-Doing-Business measures, infrastructure and productivity rates have improved at Indian Ports, to some extent, but ocean carriers see high port charges there as a stumbling block to their ability to deploy larger vessels in pursuit of cost optimization and scalability in the long run. | ||
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Logistics News |
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Mahindra Logistics buys into technology startup ShipX
Exim News Service - MUMBAI, Sept. 3 Top |
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Mahindra Logistics Ltd (MLL), one of India's largest third-party logistics (3PL) solution providers, has announced the acquisition of a strategic stake in Transtech Logistics, also known as ShipX. ShipX is a SAAS (Software as a Service)-based Transport Management Solution (TMS) platform that serves the supply chain automation needs for 3PLs, shippers and transporters. Shipx was founded by a matured and experienced team who were part of a Boston-based supply chain fulfilment company that had been incubated by Infosys. ShipX has been working with MLL for over 3 years and has been enabling transportation solutions. This acquisition will help MLL to increase end-to-end digitisation and bring in operational efficiencies, said a release. Mr Pirojshaw Sarkari, CEO - Mahindra Logistics, said, "Logistics in future will be more technology-driven-both in terms of our own operations, as well as interfaces with our customers and business partners. With our asset light business model, we are already like a 'platform'. The strengthening of our relationship with ShipX opens up a new opportunity to take this to the next level." Mr Amarnath Kalale, Co-Founder of Transtech, said, "MLL has been our most valuable customer for more than 3 years. This investment will help us in developing more product features and strengthening the organisation." |
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CONCOR substantially increases free time for loaded & empty containers at its terminals
Exim News Service - New Delhi, Sept. 4 Top |
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The Container Corporation of India (CONCOR) has announced the facilitation of free warehousing for containers to the trade at its terminals across the country. The massive increase in free time, i.e. 45 days and 90 days for loaded and empty containers, respectively, has become effective from September 1, 2018. This is applicable to the import-export trade, shipping lines and other stakeholders, CONCOR said in a communiqué. This initiative will reduce requirement of warehousing at separate locations and do away with the need of secondary transportation to warehousing and empty yards. It will also reduce multiple handling and transportation, the communiqué highlighted. It added that the measure will lead to re-examining and re-engineering of the transportation and warehousing needs by reducing infructuous logistics legs and substantially reducing the cost and time of ex-im trade. |
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Indian Port News |
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First ship arrives at Penna Cement Terminal at Cochin Port
Exim News Service - Kochi, Sept. 4 Top |
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Penna Suraksha, the first vessel carrying 25,000 tonnes of cement, arrived at Q6 Berth of Ernakulam Wharf of Cochin Port on Monday, September 3, 2018. The cement, brought from Krishnapatnam Port, was transferred from the ship to the silos located at the Penna Cement Terminal near Ernakulam Wharf through pneumatic suction. This modal shift in transport of cement from road/rail to shipping is another step towards promoting coastal shipping through cost-effective and environment-friendly logistics envisaged under the Sagarmala Programme of the Ministry of Shipping. Cement being a high-volume, low-value product, low-cost sea transport is very important as a game changer in logistics. The National Perspective Plan lists coastal movement of cement as an important segment of India's coastal shipping potential. Mr A. V. Ramana, Chairman (I/C), Cochin Port Trust, and Mr Goutam Gupta, Traffic Manager, Cochin Port Trust, witnessed the handling of the first consignment to the terminal at Ernakulam Wharf. Mr Santhosh Antony, Unit Head, Penna Cement Industries Ltd, Mr D. Lakshmikantham, Director Technical, Penna Cement, Capt. Y. D. Misra, Head of Operations, Penna Shipping Ltd, and Capt. S. Shinde, Master of Vessel, were also present. The Bagging Terminal of Penna Cement Ltd is the fourth such terminal in Cochin Port. Set up on 1.14 ha of land leased by Cochin Port Trust, it is expected to handle 3 lakh tonnes of cement annually. Presently, three cement terminals (Ambuja, UltraTech and Zuari) are in operation. Malabar Cements, a government of Kerala co., has also been allotted land at Cochin Port for setting up a bagging terminal. The three currently operational terminals handle 7,83,000 tonnes of cement annually and a throughput of 1.5 MMT is expected by 2020. The current annual sales volume of Penna Cements for the whole of India is 5.80 MMT, of which 0.30 MMT is in Kerala, which is confined to north Kerala. The Cochin packing terminal will be catering to the requirements of central and south Kerala, which therefore is incremental cargo transported through coastal shipping, said a release. |
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Growth of 5.13 percent registered at Major Ports during Apr-Aug'18
India Seatrade News - Sep 7 Top |
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The Major ports in India have recorded a growth of 5.13% and together handled 288.38 Million Tonnes of cargo during the period April to August 2018 as against 274.32 Million Tonnes handled during the corresponding period of previous year. For the period from April-August 2018, nine Ports Kolkata (incl. Haldia), Paradip, Visakhapatnam, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal have registered positive growth in traffic. Cargo traffic handled at Major Ports: The highest growth was registered by Kamarajar Port (17.24%), followed by Deendayal Port (11.16%), Paradip (10.93%), Cochin (10.13%) and Kolkata (9.01%). Kamarajar Port growth was mainly due to increase in Other Misc. cargo by 24.98%, other liquids by 20.45%, POL by 13.82% and Thermal & Steam Coal by 8.8 %. In Kolkata Port, overall growth was 9.01%. Kolkata Dock System (KDS) registered traffic growth of 6.54%. Whereas Haldia Dock Complex (HDC) registered a growth of 10.13%. During the period April to August 2018, Deendayal (Kandla) Port handled the highest volume of traffic i.e. 48.9 Million tonnes (16.95% share), followed by Paradip with 44.79 Million tonnes (15.53% share), followed by JNPT with 28.99 Million Tonnes (10.05 % share), Visakhapatnam with 26.94 Million Tonnes (9.34% share), Kolkata (Incl. Haldia) with 25.44 Million Tonnes (8.82% share). Together, these ports handled around 61% of Major Port Traffic. Commodity-wise percentage share of POL was maximum i.e. 33.09%, followed by Container (20.83%), Thermal & Steam Coal (15.36%), Other Misc. Cargo (10.63%), Coking & Other Coal (7.74%), Iron Ore & Pellets (5.77%), Other Liquid (4.41%), Finished Fertilizer (1.27%) and FRM (0.9%). |
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Disclaimer:
Above information is only indicative and given in good faith. We have collected the above information from various secondary sources. We have tried our best to be as correct as possible. However, we cannot guarantee 100 % accuracy in the above data. Our company / group will not be responsible for any mistakes / inaccuracies which might have crept in inadvertently. |