Tag Archives: big ships

Japanese shipping majors in freefall – Splash 247

More trouble on the sea.  This article came to me through logo  The Loadstar, which is a good aggregator of stories on mergers, acquisitions, divestitures, and general financial information on the major ocean carriers.

screenshot-splash247-com-2017-01-31-08-03-44On a dire day for Japan’s big three shipping lines, Nippon Yusen Kaisha (NYK) revealed a record loss of just shy of $2bn for the first nine months, Mitsui OSK Lines (MOL) was forced once again to revise downwards its full-year forecast and Kawasaki Kisen Kaisha (K Line) notched up a poor $468m loss for […]

Source: Japanese shipping majors in freefall – Splash 247

A taste of irony: LNG tanker transits new Panama Canal locks

LNG is an area in which we can expect the new bigger Panama Canal to make a great difference in trade patterns. The major source of US export LNG will be in the deep south, the US Gulf Coast. There are also major LNG processing and storage facilities in the Caribbean island nations.  Transit times to Asia and to South America will be substantially improved, making US LNG exports competitive from a transportation standpoint.  And it appears the canal is accomplishing that.

So why hasn’t the flow of tankers happened yet?  The Canal management expects it to happen soon.  But wait a minute!  Just as for container ships, it appears that the Gulf Coast tanker ports cannot handle the larger vessels. They need operational and infrastructure improvements to support the larger ships’ needs for berthing, loading, and unloading.

Isn’t it ironic?  All the angst over dredging East Coast ports for container ships and rigging terminals to unload big ships fast, and no one thought of the same issues for tankers? Is no one in shipping thinking about supply chains?

Here’s the nice story by Deepa Vijiyasingam of Platts.

Platts Source: First LNG tanker transits new Panama Canal locks; 54 vessels through: ACP – Shipping | Platts News Article & Story

Productivity is declining at the world’s biggest ports, ‘mega-boxships not to blame’

This study is provocative, but may not tell the whole story. It is not clear to me that productivity should fall in direct proportion to the size of the call.  That’s a rough approximation, and captures the direction, likely.  But I suspect a nonlinear effect.  It’s basically a scheduling issue, and scheduling response rates are notoriously nonlinear.

It is complicated by the fact that a ship is usually only able to be scheduled at one terminal, even though another terminal may have excess capacity and be able to handle it exactly on time. That depends on the degree of cooperation possible among terminal operators.  An interesting study would be to look at calls at a single port with multiple terminals and see how often there is a berth available for an ULCV but the specific ship cannot use it because it is required to use a different terminal.

I don’t see an easy way for port management or terminal management or ocean carriers and alliances to solve that one.

That said, I agree with the conclusion: it’s not mega-calls. I don’t think we should be blaming the mega container ships for the problems.  Those ships will come, so ports need to innovate. A goal like 6000 moves in 24 hours is reasonable.

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New analysis suggest that port productivity levels are dropping, but ultra-large container vessels are not at fault

Source: Productivity is declining at the world’s biggest ports, ‘but mega-boxships are not to blame’ – The Loadstar