Fire and explosion! Another explosion on the MSC container ship! Follow-up of the Ningbo Port explosion丨Foreign Trade News Express
Breaking news! Fire and explosion! Another container ship!
In the early morning of August 11th local time, an explosion occurred under the deck of the MSC container ship "MSC CAPETOWN III" while it was berthed at the JCT Terminal of Colombo Port, followed by a fire.
The relevant departments acted quickly and successfully avoided a greater disaster. No casualties have been reported so far.
It is reported that when the accident happened, the 18-year-old container ship was carrying out loading and unloading operations.Unloaded 995TEU, loaded 880TEU.
At around 0:30, a fire broke out in the hatch area near the dormitory.
The fire originated from about 100 containers in the hold and 60 containers on the deck, and occurred in the 41/43 hatch area. The fire eventually escalated into an explosion.
The explosion occurred below deck, where cargo had been unloaded, including one container containing hazardous cargo.
All operating personnel and supporting crew members were immediately evacuated from the vessel, and the Colombo Port Fire Brigade immediately took action, responded quickly and effectively controlled the fire, and eventually successfully extinguished the fire and safely transferred the affected cargo.
No casualties have been reported so far.The cause of the fire has not yet been determined.
In response to the fire, SLPA Chairman Keith D. Bernard said that a comprehensive investigation process would be initiated to find out the specific cause of the fire and promised to prepare a detailed investigation report.
At the same time, he also emphasized the attitude of holding the relevant shipping agents accountable. In addition, the insurance company will also intervene in the investigation.To assess the losses and handle subsequent insurance claims.
MSC CAPETOWN III is a Portuguese-flagged container ship built in 2006 and currently operated by Mediterranean Shipping Company (MSC).
The ship is 222 meters long, 30 meters wide and has a carrying capacity of 2,824 TEUs. Before the incident, the ship had just arrived at the Port of Colombo from Singapore and was originally scheduled to unload 995 containers and load 885 new containers at JCT4 Terminal.
It is still uncertain whether this accident will affect the subsequent shipping schedule of MSC CAPETOWN III.
This incident will once againIssues in dangerous goods handling and container ship safety managementPushed into the public eye.
Recently, due to severe weather conditions such as high temperatures, there have been a number of ship fire accidents. In July, the Maersk Frankfurt exploded and caught fire while sailing, killing one seafarer.
It is worth noting that this is the second port container ship fire or explosion in the world within three days.
Previously, on August 9, Yang Ming Marine's "YM Mobility" also suffered an explosion and fire caused by items in the container while docked at Ningbo Port.
These accidents further highlight the urgency of strengthening port safety management and supervision of dangerous goods transportation.
Hereby kindly remind all parties concerned to strengthen the management of flammable and explosive dangerous goods and those requiring temperature control, and to enhance safety awareness and onboard operating regulations.Ensure safe transportation and secure transport.
Ningbo Port Explosion Follow-up
Image source: CCTV News
On the afternoon of August 9, 2024, a container ship explosion occurred at the Beilun Port Area of Ningbo-Zhoushan Port. The incident attracted widespread attention from the society and high attention from relevant departments.
The accident was initially judged to be an explosion of a hazardous goods container in transit on a container ship. Fortunately, after the accident, the Ningbo Maritime Search and Rescue Center quickly activated the emergency plan, dispatched a patrol boat to the scene for alert, and coordinated with the port fire department to send multiple fire tugboats and shore-based fire forces to carry out emergency response, ensuring the safety of dock workers and crew members and causing no casualties.
Announcement from Ningbo Maritime Search and Rescue Center
The explosion once again sounded the alarm for the safe management of dangerous goods transportation. After the incident, Ningbo Port, the Maritime Safety Administration and major shipping companies responded quickly and jointly adopted a series of strict measures to strengthen the supervision of dangerous goods transportation and storage to ensure the safety and smoothness of port operations.
Ports comprehensively upgrade safety management system
As one of the ports with the largest cargo throughput in the world, the importance of safety management at Ningbo-Zhoushan Port is self-evident. After the accident, Ningbo-Zhoushan Port Co., Ltd. quickly launched an emergency plan, organized a professional team to conduct an in-depth investigation into the cause of the accident, and conducted a comprehensive investigation of the transportation and storage of dangerous goods throughout the port.
Ningbo Port explosion accident report circulated on the Internet
The port said it will further strengthen the safety management of dangerous goods transportation, establish and improve the rules and regulations for dangerous goods declaration, review, transportation, storage and other links, and ensure that every step of dangerous goods operation in the port complies with safety regulations. At the same time, the port will also increase the monitoring of dangerous goods storage areas, improve the intelligence level of safety facilities, and promptly discover and eliminate potential safety hazards.
Suzhou Port deploys safety management work
Maritime Safety Administration strengthens supervision
As an important force in port safety supervision, Ningbo Maritime Safety Administration immediately organized forces to rush to the scene after the accident and coordinated various forces to deal with the emergency. At the same time, the Maritime Safety Administration has further strengthened the supervision of dangerous goods transport ships and increased the frequency of spot checks on dangerous goods declarations and ship safety inspections.
China Maritime Safety Administration issues warning notice
The Maritime Safety Administration said that it will strictly follow the requirements of relevant laws and regulations to conduct comprehensive and detailed safety inspections on dangerous goods transport ships to ensure that the ships are seaworthy, the crews are competent, and the cargoes are suitable for loading. Any violations found will be dealt with seriously in accordance with the law and regulations, and will not be tolerated. In addition, the Maritime Safety Administration will also strengthen communication and coordination with ports, shipping companies and other relevant parties to jointly build a safety line of defense for the transportation of dangerous goods.
Qingdao Qianwan Maritime Notice
Shipping companies responded positively and strengthened self-inspection and self-correction
After the accident, major shipping companies also said that they would actively respond to the call of the port and the Maritime Safety Administration to strengthen self-inspection and self-correction of dangerous goods transportation. The shipping companies said that they would strictly follow the international rules and domestic laws and regulations on the transportation of dangerous goods, strengthen the declaration, review and loading of dangerous goods, and ensure the safety and controllability of dangerous goods during transportation.
Yang Ming Marine Transport Releases Processing Progress Update
Hapag-Lloyd issued an announcement
At the same time, the shipping company will also strengthen the training and education of crew members to improve their awareness and operational skills of dangerous goods transportation. The shipping company said it will actively cooperate with the port and the maritime administration in supervision and jointly maintain the safe operation of ports and ships.
Sinotrans Container Lines issued a notice
The Ningbo Beilun Terminal explosion once again reminds us that safe management of dangerous goods transportation and storage is of vital importance. Ports, maritime bureaus and shipping companies should work together to strengthen cooperation and build a safe defense line for dangerous goods transportation.
Shippers and freight forwarders who have recently loaded cargo on this ship should pay close attention to the ship's dynamics, keep in touch with the shipping company, and promptly learn whether there is any cargo damage, subsequent ship delays, etc. Once again, we remind everyone not to conceal dangerous goods!!!
PART 03
The Eastern US Strike...
The cooperation agreement between the International Labor Association (ILA), a union of U.S. East Coast port workers, and the terminal management organization United States Maritime Union (USMX) will expire on September 30, and the ILA has made it clear that if a new agreement is not reached, it will launch strike action from October 1.
In the face of this potential labor-management conflict, Danish shipping data analysis company Sea-Intelligence emphasized in its latest report that it is crucial to assess its impact on actual container shipping volumes and the time required for recovery after the strike ends.
Based on historical data, the company predicts that the throughput of US East Coast ports will reach 2.3 million TEUs in October, with an average daily processing volume of 74,000 TEUs, including 36,000 TEUs for imports and 38,000 TEUs for exports. In particular, it is pointed out that if a strike occurs, the loading of empty containers of about 20,000 TEUs per day will be hindered.
Once the strike ends, these backlogged containers will require additional processing on top of normal volumes. Sea-Intelligence assesses the ability to clear these backlogs by analyzing excess capacity at East Coast ports, which refers to the portion of actual port processing that exceeds expected capacity. The agency estimates that the port system has the ability to increase processing capacity by 13% compared to the forecast October volume of 2.3 million TEUs.
Further analysis shows that if the port's capacity in October exceeds the expected normal flow by 13%, then a one-day strike will take about six days to clear the backlog of 74,000 TEUs. If the port has more available capacity, the clearing time may be shortened to four to five days.
Alan Murphy, CEO of Sea-Intelligence, said:If a week-long strike occurs in early October, its impact may not gradually ease until mid-November; if the strike lasts for two weeks, port operations may not fully return to normal until 2025.The forecast highlights the severe impact the strike could have on global supply chains.
Maersk also announced in the latest news thatAny shutdown, no matter how large or small, could have far-reaching consequences for supply chains.In particular, a complete shutdown in the Gulf of Mexico and the East Coast of the United States, even if it only lasts for a week, may take up to 4 to 6 weeks to resume normal operations.During this period, large backlogs of goods and transportation delays will continue to accumulate, further exacerbating the pressure on the supply chain.
Maersk is fully prepared to deal with potential disruptions.We promise to actively assist customers in exploring alternative transportation routes, transportation methods and distribution solutions to minimize the impact on customer supply chains.At the same time, Maersk encourages all customers to maintain close communication with their representatives, jointly assess supply chain needs, and develop personalized contingency plans when necessary to address various challenges that may arise.
PART 04
Attention! Three typhoons dancing together!
1. Typhoon Maria No. 5 lands in Japan
Typhoon Maria, the fifth typhoon this year, made landfall in the waters near Iwate Prefecture on Japan's Honshu Island around 8 a.m. on the 12th.
Screenshot of NHK report
Due to the increased risk of disasters caused by heavy rain and strong winds brought by Typhoon Maria, Kuji City, Iwate Prefecture, Japan issued a Level 5 evacuation order, the highest level, to 15,404 households and 31,465 residents in the city that morning.
2. "Yamashin" will approach the sea east of Japan
The center of this year's sixth typhoon, "Sanshin" (tropical storm level), was located on the ocean surface about 830 kilometers east of Tokyo, Japan at 5 a.m. on the 13th.
It is 34.6 degrees north latitude and 148.7 degrees east longitude. The maximum wind speed near the center is level 8 (18 meters/second), the lowest central air pressure is 998 hPa, and the radius of the level 7 wind circle is 100-200 kilometers.
It is expected that "Yamashin" will move northwestward at a speed of 25-30 kilometers per hour, with little change in intensity, gradually approaching the sea east of Japan, and then gradually weaken and dissipate in the sea east of Japan. It will have no impact on my country's sea areas in the future.
3. Ampil moves north-eastward
The center of this year's seventh typhoon "Ampil" (tropical storm level) was located at 5 o'clock in the morning on the 13th on the ocean about 1,330 kilometers south-west of Tokyo, Japan, that is, 23.9 degrees north latitude and 137.2 degrees east longitude. The maximum wind speed near the center was level 8 (18 meters/second), the lowest central pressure was 998 hPa, and the radius of the level 7 wind circle was 160-220 kilometers.
It is expected that "Ampil" will move toward the north-east at a speed of 15-20 kilometers per hour, turn to the north around the 14th, and gradually increase in intensity. It will have no impact on my country's sea areas in the future.
PART 05
Freight rates on four major routes fell for five consecutive weeks
The latest shipping data released by the Shanghai Shipping Exchange showed that on August 9, the Shanghai Export Containerized Freight Index (SCFI) was 3253.89 points, down 2.4% from the previous period; down about 480 points from the recent high.
▲Shanghai export container comprehensive freight index has fallen for five consecutive weeks
It is worth noting that the freight rates on the three major routes from Shanghai to the basic ports in the East and West Coast of the United States and the Mediterranean have been declining for five consecutive weeks, and the freight rates from Asia to the basic ports in Northern Europe have also recorded a decline for four consecutive weeks.
Among them, on August 9, the freight rate (sea freight and sea freight surcharge) from Shanghai Port to the basic port in the western United States was US$6,068/FEU, down 2.8% from the previous period. Each large container has fallen by US$2,035 compared with July 5, with a cumulative decline of more than 25%.
The freight rates (sea freight and sea freight surcharge) from Shanghai Port to the US East Coast base port market were US$9,083/FEU, down 2.8% from the previous period. Each container has fallen by US$2,035 compared with July 5, a drop of more than 25%. Compared with five weeks ago, each container was US$862 cheaper, with a cumulative drop of 8.7%.
At the same time, the freight rate (sea freight and sea freight surcharge) from Shanghai Port to the Mediterranean basic port market was US$4,733/TEU, a cumulative decline of 12.9% for five consecutive weeks.
On August 9, the freight rate (sea freight and sea freight surcharge) from Shanghai Port to the European base port market was US$4,786/TEU, down 2.5% from the previous period and down US$265 per small container from a month ago.
Yan Yicai, chairman of Taiwan's well-known freight forwarder Taihua, expressed his opinion on the 9th that there is no need to be too nervous about the SCFI's weekly decline of only 3% or 5%. He emphasized that the current transportation of each container can still achieve three times the profit, and only when the SCFI falls to half of the current level, it is necessary to be really vigilant. It is estimated that the freight rates on the European and American routes will remain at a high level. Looking ahead, from now to October, the US route will usher in the traditional peak season, and the market performance in the third quarter is expected to be worry-free. The outlook for the shipping industry throughout the year is optimistic, but the situation next year still needs further observation.
Regarding the Red Sea crisis, the industry generally believes that it is difficult to ease in the short term, mainly due to the complex political, religious and historical factors behind the conflicts between Israel and Hamas, Hezbollah, Iran, Yemeni Houthis and other parties. Based on past experience, it is difficult for both sides to quickly reach an agreement on ceasefire conditions. It is expected that the Red Sea crisis will be difficult to resolve before the US presidential election. During this period, freight rates on European and American routes are expected to continue to fluctuate at high levels.
Recently, SCFI freight rates have been declining continuously. Freight forwarding industry insiders pointed out that after entering the traditional peak season in August, the cargo volume did not increase significantly as expected, resulting in price drops during the peak season. This phenomenon is mainly attributed to three factors: continued inflationary pressure, early arrival of the peak season, and continued increase in shipping capacity. Faced with excess capacity, many ships are not fully loaded. This week, the freight rate per 40-foot container on the European and American lines continued to fall by US$200 to US$300. Some shipping companies have abandoned the price increase plan for the US line originally scheduled for mid-August.
The market is also closely following the latest developments of the Canadian railway workers' strike vote. US lawmakers and freight forwarders have warned that the strike could have an adverse impact on the economies of both countries. Freight forwarding industry insiders believe that if the strike becomes a reality, it will directly affect the operation of ports on the west coast of Canada and may spill over to US routes.
PART 06
Indonesia removes import permit (PI) requirement for cosmetics
Indonesia's Trade Minister's Decree No. 8 of 2024 (Permendag 8/2024) was issued urgently and took effect immediately. This move is a remedy for the large number of containers stranded at ports in Indonesia caused by the issuance of Trade Minister's Decree No. 36 of 2023 (Permendag 36/2023). The following are the customs clearance requirements for imported cosmetics products after the implementation of the new policy:
Before March 10, 2024, in accordance with the import policies and regulations in the Minister of Trade Order No. 20 of 2021 and the Minister of Trade Order No. 25 of 2022, the customs clearance document requirements are: Import Loading Supervision Report (LS) and Import Customs Declaration (SKI).
According to Permendag 8/2024, during the period from March 10 to May 17, 2024 (detained goods), the customs clearance document requirements are: Import License (PI) (not required), Import Loading Supervision Report (LS), Import Customs Declaration (SKI); For the types of goods listed in Appendix I and Appendix II (including cosmetics, 136 HS electronic products, traditional medicines, 37 HS footwear, etc.), only the Import Loading Supervision Report (LS) is required for customs clearance.
After May 17, 2024, according to the import policies and regulations of Permendag 8/2024, the customs clearance document requirements are: Loading Supervision Report (LS) and Import Declaration (SKI). After the release of Permendag 8/2024, cosmetics arriving at Indonesian ports after March 10, 2024 are exempted from submitting an import license (PI). They only need to submit the Loading Supervision Report (LS) and the Import Declaration (SKI) to go through customs clearance procedures. This is good news for cosmetics companies exporting to Indonesia. Please note that the two documents need to be completed before the goods arrive at the Indonesian port.
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