MEMBER lines of the Asia Australia Discussion Agreement (AADA) will levy a freight rate increase of US$300 per TEU and $600 per FEU on both dry and refrigerated cargo from mainland China and Hong Kong to ports in Australia from March 15.

AADA said that to "maintain a high standard of service to customers", the member lines will implement a rate restoration programme. The rate increase "will apply in full on top of existing ongoing market rates and will be subject to accessorial surcharges applicable at the time of shipment," said the AADA statement.



AADA is a voluntary discussion forum of 13 ocean carriers serving the trade from north and east Asia to destinations in Australia, whose members include ANL, CSCL, Cosco, Hamburg Sud, Hanjin, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, Maersk Line, MSC, MOL, NYK and OOCL.

GERMANY's Hapag-Lloyd, the world's fourth largest carrier, has announced it will raise rates from Asia to the Indian subcontinent and Middle East from February 15.

From that date, rates from the Far East (excluding Japan) to Indian subcontinent will increase US$100 per TEU. Then on March 1, the carrier will raise rates by US$150 per TEU for services from the Far East to the Persian Gulf and Red Sea.

MOODY'S, one of the big three credit ratings agencies, has downgraded Japan's two biggest carriers, MOL and NYK, saying oversupply of vessel in the industry will reduce cashflow and make debts difficult to pay, reported Bunkerworld.

MOL's ratings, Japanese largest and world's 10th largest carrier, have been downgraded by Moody's to "Baa1" from "A3", while NYK's ratings to "Baa2" from "Baa1" after MOL posted a US$173 million operating loss and NYK a $179 million loss in the October-December period.



Outlook for both carriers has been rated "negative" with Moody's expressing concerns that overcapacity and soft rates, especially on Asia-Europe trade, would impair profitability further.



In addition to container shipping, the ratings agency said NYK and MOL's dry bulk and tanker units are confronted with weak charter rates.



Moody's said NYK and MOL could see relief in 2013 as their car shipment businesses stabilise and the haulage business of liquefied natural gas expands.

THE Baltic Dry Index fell to its lowest point in level since August 1986, extending the streak of daily declines from December 12, a decline of 65 per cent, reports London's Financial Times.

The index dropped 18 points to 662 midweek, falling below the 666 level recorded on December 4, 2008 when bulk shipping demand collapsed in the financial crisis.



Widely seen as a barometer of global trade, the decline is attributed to overcapacity as newbuildings flood the market, outpacing demand and depressing rates.



Said Oslo's Arctic Securities analyst Erik Nikolai Stavseth: "I find it deeply worrying."



Said Clarkson analyst Guy Campbell: "It's finally upon us."



Mr Campbell said 2012 would prove a "pretty grim year", estimating that freight demand would grow 5.5 per cent this year while capacity would increase 12 per cent.

HONG KONG's TS Lines (TSL) is to share slots with Dalian-based Goto Shipping's Japan-China services after it ended a similar agreement with Grand China Shipping's EKX Service from Shanghai to Osaka-Kobe.

It will slot share on its LKTS which links Lianyungang and Qingdao with Osaka and Kobe deploying one 1,118-TEU vessel. The XKTN runs from Xingang, Dalian, and Qingdao to Nagoya, Tokyo and Yokohama deploying two 2,784-TEU ships and the SKU service links Shanghai with Hakata and Moji with one 998-TEU vessel.

ZHUHAI port group, operator of the western Guangdong province port of Zhuhai, registered a throughput of 474,800 TEU, or 25 million tonnes in terms of cargo tonnage last year.

It also recorded a bulk throughput of 21.1 million tonnes. Its container, bulk throughput and tonnage total have all recorded double-digit growth, faster than the average growth of seaports in China.



Wu Aicun, chairman of Zhuhai Port Group, said the group will start a number of new projects this year including the phase two container terminal at Gaolan port area and the first phase of a new logistics park at the port. Mr Wu said, as Guangzhou-Zhuhai railway, Gaolan expressway and Zhuhai airport expressway open to traffic in 2013, Zhuhai port's throughput will be increased further to 255 million tonnes.

DUBAI's DP World experienced a record year for container handling in 2011, with 54.7 million TEU passing through its terminals worldwide, representing a 10 per cent year-on-year increase.

The group's consolidated terminals handled 27.5 million TEU during 2011.



"Had our five terminals in Australia not been deconsolidated from March 12, consolidated terminals would have delivered nine per cent growth ahead of the prior year. Like for like growth across our portfolio of consolidated terminals was eight per cent," the company said.



The growth was driven by an "exceptionally strong" performance in the UAE region, which delivered volume growth of 12 per cent to handle 13 million TEU for the year. "The UAE region has gone from strength to strength during 2011 with each quarter delivering yet another record performance culminating in 16 per cent volume growth in the final quarter of 2011."



Strong results were also seen from its container terminals located in Asia Pacific, Africa and the Americas, together with the addition of new capacity from its terminals in Karachi, Pakistan and Vallarpadam, India, both of which opened in early 2011.



Said CEO Mohammed Sharaf: "As we look ahead, we continue to remain confident about the long-term outlook for our industry. We believe our continued investment in existing and new terminals around the world will ensure our portfolio is best positioned to meet the expectations of our customers and their future requirements."

SOUTHEASTERN China's coastal province Fujian recorded a waterway cargo transportation volume of 189 million tonnes in 2011, up 12.3 per cent year on year, Xinhua reports.

Waterway cargo turnover volume grew 15.1 per cent to 255.43 billion tonnes per kilometres.



Waterway passengers totalled 15.96 million, 10.5 per cent more than in 2010. Turnover volume increased 12.3 per cent to 241 million passengers per kilometre.



The province's road cargo movement totalled to 526 million tonnes, up 15.3 per cent from 2010. Turnover grew 14 per cent to 65.95 billion tonnes per kilometre.



Road passenger volume climbed 3.6 per cent to 733 million. Turnover went 3.9 per cent up to 36 billion persons per kilometres.

LIAONING province is forecasting its sea port throughput will reach 14 million TEU and 830 million tonnes overall by the end of the year, Xinhua reports.

This year, the northeast province will spend CNY20 billion (US$3.2 billion) on port facilities, also aiming to raise Dalian's volume to eight million TEU by 2013 and will speed up planning of new port areas in Dandong, Jinzhou, Huludao and Panjin.



Last year, Liaoning invested CNY21 billion on port projects, one per cent more than the annual investment plan, and will have 80 new projects under construction. Its ports recorded a throughput of 780 million tonnes, up 15.3 per cent year on year, winning fourth place by volume among coastal provinces.



By 2015, the province will have six ports with throughput of over 100 million tonnes with seaport volume at 1.1 billion tonnes.

DANISH shipping giant Maersk Line will drop its around Africa MEW1 loop on February 19, which links the west Mediterranean, West Africa, South Africa and the Middle East.

This means there will be no service from Maersk between Dubai and West Africa outside its ME1 and Rumba loops that connect from Algeciras westbound to Dubai for a longer duration of a week, according to ComPair Data.



The "round-trip" MEW1 makes a 63-day voyage that stops at Algeciras, Dakar, Lagos, Douala, and Cape Town via Suez from Dubai and the Indian Ocean on return deploying nine vessels averaging 2,515 TEU. Some of its port calls have been jointly run with its sister company Safmarine.



It will continue to provide a dedicated end-to-end loop between South Africa and Algeciras, deploying six vessels averaging 1,309 TEU, and from South Africa to Dubai on its MESA service calling at Karachi and Mumbai, it will deploy five vessels averaging 2,235 TEU.

DAVID Skov, a Dane who has been with Maersk Group for 16 years has been appointed to head Maersk Line operations in South China.

A statement said that he started as a management trainee with the shipping line in 1995 and has since worked in various business units such as Maersk Broker and APM Terminals. Before moving to Hong Kong, he was in Africa for the last decade.



In his most recent position, Mr Skov led the Central West Africa cluster of Nigeria, Benin, Togo and Ghana. "China is immensely important to Maersk Line and it is very exciting for me to be at one of the great centres of gravity of our industry," he said.



Before Maersk, Mr Skov spent five years in the Danish Army in the reserves. He has degrees in international business as well as organisation and leadership and is currently studying for an MBA at Warwick Business School in the UK.

PRIVATE maritime security providers will be assessed by the Security Association for the Maritime Industry (SAMI) through its accreditation bureau, the National Security Inspectorate (NSI), a provider of home security, business security and fire safety services checks.

NSI is a Security Industry Authority (SIA) assessing body for the Approved Contractor Scheme (ACS), said the NSI website. The SIA's Approved Contractor Scheme is voluntary and only covers those parts of the industry that are regulated by the SIA under the UK's Private Security Industry Act 2001, said the SIA website.



Private maritime security companies will follow a three-stage process of system checks assessing capabilities, experience and corporate standing, following guidelines set by the industry and the UN's International Maritime Organisation (IMO), said the SAMI statement.



Stage 1 is a due diligence check on financial, legal and insurance conditions of the company. Stage 2 will cover the physical verification of their premises, systems and documentation while the final stage will check on deployed operations.



"It has been no mean feat to forge a united front from an industry which has always followed its own path," said SAMI founder Peter Cook, reported Maritime Advocate, a legal portal.



SAMI has worked in consultation with a range of leading marine insurers, flag states, shipping associations, seafarer welfare organisations and the maritime security industry to create the programme, said the report.

JAPAN's Mitsui OSK Lines (MOL) has appointed Ocean Maritime Services Shipping Agency Tourism and Trading (OMS) as its new shipping agent in Istanbul, which will manage activities in Turkey from February 1.

The new shipping agent takes over from Dabkovich Maritime Agency, which traded as Inchcape Shipping Services Turkey.



The new shipping agent's address is Ocean Maritime Services Shipping Agency Tourism and Trading Ltd, Kilic Ali Pasa Mah, Meclis-i Mebusan Cad, No 29, Ulku Han, Kat-5, Beyoglu 34433, Istanbul.

SINGAPORE's chemical logistics solutions provider RichLand-LSP has appointed Graham Wall as managing director in a bid to expand its bulk liquid chemical transport operations throughout South East Asia.

Mr Wall brings 25 years of chemical logistics experience in both Europe and in Asia to the company. He will be responsible for overseeing operations and expanding the business into new markets and industry verticals across the region, a statement said.



He has previously worked for Interflow, Trencor, Syrius Group and PD Ports & Logistics and has specific expertise in the organisation and development of ISO-tank fleets throughout the world.



Said RichLand Logistics director Colin Moran: "The appointment of Mr Wall is in response to our ambitious development plans to expand our business throughout the South East Asia region. His wide range of experience will be invaluable as we look to develop our ability to offer one-stop logistics solutions."



Mr Wall holds a degree in mechanical engineering from Teeside Polytechnic, is a Fellow of the Institute of Logistics and Transport (FCILT), and previously served as vice chairman of the UK Warehousing Association.

PATRICK Zilles has assumed the role as head of intermodal activities at DB Schenker Logistics, of Essen. He is responsible for linking the different modes of transport efficiently, a statement said.

His position was created in light of the growing importance placed by the group on providing intermodal solutions.



It said that this offering provides customers from industry and trade a combination of trucking and rail services from a single source. Trucks handle pre-carriage and onward carriage, while trains handle long distances in unaccompanied combined transport.



"I think there are still opportunities for our customers and for further growth, particularly in the intermodal business. I therefore am delighted that Patrick Zilles, an experienced manager from the logistics sector, will be joining our team," said Karl Nutzinger, member of the management board of Schenker AG responsible for Land Transport. "With his support, we will continue to expand our range of products and services involving rail, both for transalpine traffic and for the East-West connection in Europe."



In his most recent appointment Mr Zilles managed intermodal activities for a rail company.

SINGAPORE Airlines (SIA) posted a 53 per cent fourth quarter net profit loss to S$135.2 million (US$108 million) year on year, drawn on revenues of S$3.88 billion which changed little.

Controlled by state investor Temasek Holdings, SIA, the world's second largest airline, attributed the decline to the harsh global economic environment, decreasing demand in passenger and cargo markets as well as high fuel prices. Its fuel bill soared 33 per cent in the quarter from a year ago, the company said.



Its profit was lower than the average forecast of S$162.5 million from four analysts polled by Reuters. This is the fourth straight quarter that the airline's profit has underperformed analysts' expectations.



SIA said weakness in both passenger and cargo sectors would persist. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," the airline said in a statement.



"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said, adding that slack air cargo market is likely to continue due to soft demand in major developed countries.



To expand, the airline plans to commence its own long-haul budget airline, Scoot, by mid-2012, reported the USA Today, saying that this would help the SIA group, including its regional unit, SilkAir, and its short-haul budget affiliate Tiger Airways (with a 33 per cent stake), to run against the odds in 2012.



Late last year, the International Air Transport Association (IATA) reduced its forecast for airline industry profits by a quarter to $3.5 billion for 2012, adding that IATA warned the industry's losses would increase to an US$8.3 billion if Europe's debt crisis deepens and provokes a new financial crisis.

THE UK Competition Commission has ordered airport operator BAA to sell London Stansted airport, the second largest air cargo hub in the country and fourth biggest in all categories.

The London Heathrow owner, challenging Amsterdam in freight volumes at 1.49 million tons in 2011, was forced to dispose of London Gatwick for US$2.4 billion to US-based Global Infrastructure Partners in 2009 and is in the process of selling Edinburgh, one of its three Scottish airports, this summer due to its dominance creating issues for passengers and carriers at its airports.



BAA, a division of Spanish infrastructure group Ferrovial, has fought to retain budget-carrier focussed Stansted, 50 miles north of London, because of its freight traffic which reached 204,000 tonnes last year. But it still will hold a significant position with Heathrow's freight volumes reaching 1.49 million tonnes in 2011 to challenge Amsterdam as a freight hub.



One of the leading carriers at the airport, Ryanair, has complained that the overcharging of passenger fees and monopoly abuses over the previous five years have brought traffic declines at Stansted.



Manchester Airport Group (MAG) is touted as a potential bidder for Stansted should it raise the funds possible, reported the Manchester Evening News.

MAXIMUS Air has turned its focus to the Indian Sub-continent as one of the key regions for the expansion of its business outside of the Arab world.

In view of this goal, the company said it was making its debut at the biennial Air Cargo India Expo in Mumbai held from February 1-3. This marks the first public appearance for the airline under its new name and brand.



Fathi Hilal Buhazza, president and CEO, said the rapid growth of international trade has boosted prospects for the air cargo market in India in a company statement.



"At present, 50 per cent of our business comes from within the UAE and 50 per cent from outside the country," he said. "We want the mix to be 80/20 in favour of international markets and so we are looking to fast growing regions like the Indian Sub-continent where trade with the UAE alone increased to US$30 billion for the first six months of 2011. This is two thirds of what was achieved the whole of 2010, therefore it would be an understatement to say that Maximus Air sees the ISC as an important growth market."



"Statistics also show that there is ever increasing demand for vehicles, aircraft, defence equipment and all sorts of products to fuel the growth-hungry Indian economy. Maximus Air's flexible fleet, and its focus on developing the ACMI lease to operator market, means it is well placed to handle any size of cargo."



According to Mr Buhazza the company is not only looking at increasing its geographic footprint but also its business mix.



"We are looking to diversify through mergers, acquisition and/or strategic partnerships in a number of different areas ranging from consultancy to brokerage and from storage to delivery with the aim of giving us better control of all aspects of the logistics chain rather than having to rely on third parties," he said.



Mohamed Parkar, vice president commercial and acting chief operating officer, who is heading the Maximus Air delegation, added that Indians are the largest group of investors in the UAE and own the highest number of businesses compared to other nationalities.

DACHSER says it has been awarded a Certificate of Recognition by Lufthansa, as its global partner for 2012.

A statement from the logistics provider said: "This augurs well for Dachser Group of offices in their quest to continue to drive their global airfreight business."



The accolade was presented simultaneously by the airline to Dachser offices worldwide at the end of last month.

STATE cargo security and environmental regulations are the biggest challenges to air freight this year, says Amsterdam-based Bart Jan Haasbeek, country sales manager at Saudi Airlines Cargo,

In an interview with Air Cargo World, of Roswell, Georgia, Mr Haasbeek said European carbon tax will damage the industry.



"The cost for air transport will increase, causing more intra-European transports to be transferred to the ground, mainly to trucks. What's more, the EU ETS [European Union Emissions Trading Scheme] will increase airlines' costs and put more pressure on profitability," said Mr Haasbeek.



"As this is initiated by the European Union and not implemented globally, the possibility exists that intercontinental transit traffic could shift further to Middle Eastern hubs instead of European ones," he said.



Mr Haasbeek found the security issue more worrying. "In my opinion, the biggest challenge affecting air cargo is the increasing demand and implementation of security regulations. This isn't a challenge specifically to Saudi Airlines Cargo; it's one that will affect the supply chain and global trade in general.



"Unfortunately, we have seen procedures and regulations that may obstruct further development in the air cargo industry. There are different security regimes for different areas, and getting regulations aligned has proven to be difficult.



"An ongoing threat for the future continues to be the total ban of air freight on passenger flights. And when a major incident directly relating to belly cargo occurs, such a regulation becomes a serious possibility," he said.



Saudi Airlines Cargo plans to open two more online stations in Europe this year, offering online freighter flights from Frankfurt and Vienna, he said. In Europe, SAC has defined five key areas: Scandinavia, the Netherlands, Germany, Italy and the United Kingdom.