Panama Canal increases draught for neo-panamax locks

The Panama Canal Authority (ACP) has announced that starting 24 September, vessels will be able to transit with a 50-foot draught, the maximum offered by the neo-panamax locks, as a result of resource planning measures, efficient water uses and recent rainfall in its watershed.

“For the first time in 20 months, the inter-oceanic waterway has the capacity to allow vessels to use the maximum draught of the neo-panamax locks, as a result of a combination of factors aimed at providing customers with a more profitable route for their business from the Canal,” said ACP administrator Ricaurte Vásquez Morales.

A 50-foot draught allows vessels to transit with a greater amount of cargo, which translates into benefits for customers because it makes the transportation of goods more efficient. As an example, each additional foot of draught in the Neo-panamax locks means a vessel can load an average of 330 extra containers, impacting favourably its economy of scale.

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Source: Seatrade Maritime News

How IMO 2020 turned into the Y2K of ocean shipping

FreightWaves to shipping analyst: “So, we’re doing a follow-up story about IMO 2020 and scrubbers …”

Analyst to FreightWaves: “Oh, Jesus.”

IMO 2020 is the Y2K of ocean shipping. After years of dire warnings on fallout to world trade — and dubious pitches on stocks poised to profit — the IMO 2020 regulation ended up being a damp squib. What went so wrong with all the forecasts? And is this story really over for vessel owners, cargo shippers and stock investors?

The short answers are “coronavirus” and “not yet.”

For the longer answers, FreightWaves analyzed scrubber-installation data from Clarksons Research and conducted an in-depth interview with Richard Joswick, head of oil pricing, refining and trade flow analytics at S&P Global Platts.

What was supposed to happen

On Jan. 1, the IMO 2020 rule required all ships to switch from 3.5% sulfur heavy fuel oil (HFO) to either 0.5% sulfur fuel known as very low sulfur fuel oil (VLSFO) or 0.1% sulfur marine gasoil (MGO). Ships equipped with exhaust-gas scrubbers could keep burning cheaper HFO.

Virtually everyone predicted that there would be a gaping spread between HFO and VLSFO and that ships with scrubbers would reap formidable savings. It was predicted that VLSFO would be much more expensive than pre-2020 marine fuel, that there may not be enough VLSFO to go around, that there would be mass scrubber installations, and that there would be no place to dump all the unwanted HFO.

For the full story, please click HERE

Source: American Shipper

Survey: Coronavirus hit shippers harder than 3PLs, despite better preparedness

Dive Brief:

  • Shippers reported greater impacts from the coronavirus pandemic compared to 3PLs in key logistics functions, according to the 2021 Third-Party Logistics Study published Wednesday by Infosys Consulting, Penn State University and Penske Logistics.
  • Despite reporting more comprehensive risk management processes, shippers reported higher levels of difficulty with labor, procurement of crucial supplies, driver shortages and operational equipment shortages, according to Infosys Supply Chain Practice Leader Sylvie Thompson, speaking at the Council of Supply Chain Management Professionals Edge virtual conference Wednesday.
  • Shippers and 3PLs rank readiness and continuity planning, data analysis and visibility, and risk management as their top three priorities for improvement.

For the full story, please click HERE

Source: Supply Chain Dive

Strong airfreight demand in China and Singapore spur Boeing 737 orders and new conversion lines

Dive Brief:

  • Boeing has opened conversion lines in Guangzhou, China, and Singapore to turn passenger planes into freighters in response to a growing demand for air cargo in the region. The company received an order for two 737-800 converted freighters, according to a statement this week, bringing the total ordered or committed conversions to 134.
  • The new Guangzhou and Singapore conversion lines are set to open early 2021 and later this year, respectively. The 737-800 freighter is suited to short hauls of less than 2,000 nautical miles, according to Boeing.

For the full story, please click HERE

Source: Supply Chain Dive

Supply Chains Reinventing Themselves in Reaction to Pandemic

As The 2021 3PL Study, released on Sept. 23, in conjunction with the Council of Supply Chain Management Professionals, reported on topics that affect supply chain professionals, it also took into COVID-19.

“COVID-19 has revealed the vulnerability of modern supply chains,” said Andrew Hogenson, global managing partner, consumer goods, retail & logistics, Infosys Consulting. “Effective risk management will be key to prepare for future disruptions and to achieve recovery and growth in the post-pandemic era.”

The study is created and supported by Infosys Consulting, Penn State University and Penske Logistics.

For the full story, please click HERE

Source: Material Handling & Logistics