Going upstream! Chinese shipping companies launch express shipping in the Red Sea

 

Despite the turbulent situation in the Red Sea and the major shipping companies' detours, China United Lines has decided to launch a container shipping service across the Red Sea.

 

In addition, many merchant ships emphasize their "Chinese identity" in order to safely cross the Red Sea.

 

 

 

China United Lines' Red Sea Express (REX) service will use a 2,786TEU vessel named "CUL Manila" and call at ports such as Qingdao, Shanghai, Ningbo, Nansha, Jeddah and Qingdao. The service will have a sailing time of approximately 30 to 35 days.

 

China United Shipping has withdrawn from ocean routes due to falling freight rates after last year’s boom. However, shipping consultancy Linerlytica noted that the diversion of the Red Sea has resulted in a reduction in the number of ships able to serve the region.

 

Currently, the capacity on the Far East to Persian Gulf route is 1.17 million TEUs, a 4% decrease from last week.

 

The strategy of choosing to go around the Cape of Good Hope to avoid the Red Sea seems to have brought a turnaround for shipping companies. On January 12, the Shanghai Containerized Freight Index hit a 16-month high. Although the freight rate on the Shanghai-Persian Gulf route fell slightly, it was still much higher than last month.

 

In addition, SeaLead Shipping, which focuses on cargo transportation in the Red Sea and continues to expand its fleet, made another move and chartered two container ships last week.

 

 

Bloomberg reported that in addition to the statements in public information, at least five ships have recently had similar notes such as "All crew members on board are Chinese" filled in the "destination" column of their real-time tracking information for international shipping when crossing the Red Sea, indicating that the ship is related to China.

 

Either they declare that they are a cargo ship of a Chinese company, or they emphasize that their destination is China, or they claim that there are several Chinese crew members on board.

 

Foreign media said that crew members or shipping companies believe that highlighting their ties with China in public information can help them avoid attacks.

 

 

 

Among them, the current tracking information of "STONEWELL GLORY" shows that it is expected to arrive at the Port of Abu Zir in Egypt (port code: EGAKI) on January 25. The "Destination" column is marked with "ALL CHINESE".

 

 

 

So far, the other four ships have safely passed through the Red Sea.

 

In response to the behavior of the relevant ships, Chinese Foreign Ministry spokesperson Mao Ning said that he had noticed the relevant reports but did not know the specific situation. However, this reflected the necessity and importance of all parties working together to promote the cooling of the situation in the Red Sea and effectively maintain the safety of international waterways.

 

 

 

Red Sea crisis could lead to container shortage in Asia

 

Tobias Meyer, CEO of German logistics giant DHL, warned on Wednesday of continued disruption to global trade caused by the Red Sea crisis.This could lead to a shortage of containers in Asia in the coming weeks as there may not be enough containers to be shipped back to Asia.

 

Currently, the Red Sea crisis is still brewing, resulting in restricted passage through the Red Sea and the Suez Canal and ship detours, with a direct impact of container shortages and reduced ship capacity. In the past, when there was a shortage of empty containers, Asian ports were often the hardest hit.

 

Data from shipping consultancy Vespucci Maritime shows thatAhead of the Chinese New Year, container volumes arriving at Asian ports are expected to be 780,000 TEUs (international unit of twenty-foot containers) lower than usual.

 

According to industry insiders, in some places where there is a shortage of containers, carriers have begun to lean towards VIP customers and customers with high spot payment. As the efficiency of empty container return becomes lower after detours, coupled with the peak of shipments before the Lunar New Year,In mid-to-late January, the shortage of empty containers, shipping capacity, and space may become increasingly prominent.。

 

 

 

 

MSK and HPL form new shipping alliance

 

According to Alphaliner, Hapag-Lloyd and Maersk will form a new shipping alliance.

 

Maersk will withdraw from the 2M Alliance as previously announced, while Hapag-Lloyd will withdraw from THE Alliance with Ocean.

 

The report also stated that HMM and YML will join Maersk and become new partners of Maersk and Hapag-Lloyd.

 

 

 

In the news released by AP Moller-Maersk, there was no mention of the new shipping alliance mentioned by Alphaliner, but only said that a new "operational cooperation" had been launched.

 

 

 

AP Moller-Maersk said its subsidiaries Maersk A/S and Hapag-Lloyd AG intend toA long-term operational collaboration program called "Twin" will be launched from February 2025.

 

This new collaboration plan aims to provide customers with high-quality container liner services through a flexible and interconnected operating network and high punctuality. AP Moller-Maersk also stated that in view of the launch of the new collaboration plan,Hapag-Lloyd will withdraw from THE Liner Alliance on January 31, 2025.

 

In 2024, the two parties will properly handle the transition from the existing liner alliance to the new collaboration. At the same time, the services provided by both parties to customers within the current alliance will not be affected.

 

Brief information about the new collaborative project

 

1. The two parties plan to start operating this new long-term collaboration in February 2025. Both teams have professional operators responsible for managing the operation of the network.

 

2、Maersk and Hapag-Lloyd have the freedom to deploy capacity within or outside the scope of the partnershipto meet the needs of their respective customers.

 

3、One of the main goals of the collaboration is to achieve a container liner punctuality rate of over 90% when the collaboration is fully implemented in the future.Both parties will use a strong management system and contract performance support to ensure the realization of this high goal.

 

4. The collaboration will rely on both parties’ rich global liner networks, terminal resources and experienced logistics professional teams.The collaboration involves the operation of approximately 290 ships with a total capacity of approximately 3.4 million TEUs, of which 60% is contributed by Maersk and 40% by Hapag-Lloyd.

 

5. The collaboration will involve seven major trade routes, including the transatlantic, Asia-West America, Asia-East America, Asia-Middle East, Asia-Mediterranean, Asia-Northern Europe, and Middle East/India-Europe.

 

The two CEOs said this about the collaboration:

 

Rolf Habben Jansen, CEO of Hapag-Lloyd, said: "Cooperation with Maersk will help us further improve the quality of our services to our customers. In addition, joint operations will improve operational efficiency and promote the shipping industry's decarbonization goals."

 

Vincent Clerc, CEO of Maersk, said: “Hapag-Lloyd is the ideal partner for our strategic development.

 

This partnership will help us provide our customers with a more flexible network service, which is expected to raise the industry's standards for on-time performance.

 

This will help us enhance our comprehensive logistics services to meet the needs of our customers.”

The specific operational arrangements and new ship schedules of the “Twin Collaboration Plan” will be announced in the future.

 

 

 

 

Italy worries about serious impact on port operations

 

Italian practitioners are concerned that if the Red Sea safety issue persists for a long time, it may cause shipping companies to re-plan their routes.Italian ports located in the Mediterranean will lose their previous shipping market share in the long term.

 

According to data from a European consulting firm,40% of Italy's international maritime tradeRelying on shipping through the Red Sea and the Suez Canal into the Mediterranean, this trade reached around 154 billion euros in 2022 alone.

 

 

However, the cargo throughput of Italian ports has been greatly reduced. In the northwestern city of Genoa,

Last month alone, four container ships failed to arrive as planned.

 

Shipping agents say ground traffic at Genoa has fallen by 30% in recent weeks.

 

D'Agostino, director of the Port Authority of Trieste, Italy, said that not only will the arrival of container ships from Asia in Italy be delayed, but customers from Germany, Austria, Hungary and other countries who used to choose Italian ports may re-select ports in Northern Europe.

 

In addition, some exporters of high-value goods are considering shipping to Asia by rail, which will further affect the operations of Italian ports.

 

 

 

EU: Will go to the Red Sea

 

According to a Reuters report on January 16,The EU will set up an action team by February 19 at the latest.And start the mission as soon as possible.

 

Italian Deputy Prime Minister and Foreign Minister Tajani said on the 17th that Italy is working with France and Germany to develop a proposal for the EU to carry out escort operations in the Red Sea.

 

The plan has received preliminary support from EU member states on the 16th and will be submitted to the foreign ministers of EU member states for discussion on the 22nd.

 

Tajani said:The simplest solution at the moment would be to expand the escorts the EU is currently implementing in the Strait of Hormuz to the Red Sea.

 

Currently, the EU's escort mission in the Strait of Hormuz is commanded by France.

 

Other participating countries include Belgium, the Netherlands, Denmark, Greece, Italy, Norway, Germany and Portugal.

 

 

 

US imposes anti-dumping and countervailing duties on Chinese tinplate

 

According to the China Trade Relief Information Network, the U.S. Department of Commerce announced on the 5th that it had made a final anti-dumping ruling on tinplate (Tin Mill Products) imported from seven countries including Canada, China, Germany, South Korea, the Netherlands, Turkey and the United Kingdom, as well as Taiwan, China, ruling that the dumping rate of Canadian producers/exporters was 5.27%,The dumping rate for Chinese producers/exporters is 122.52% (111.98% after the margin adjustment to offset subsidies)The dumping rate of German producers/exporters is 6.88%, the dumping rate of Korean producers/exporters is 0.00%~2.69%, and the dumping rate of producers/exporters in the Netherlands, Turkey, the United Kingdom and Taiwan, China is 0.00%.

 

At the same time, the U.S. Department of Commerce announced a final anti-subsidy ruling on tinplate imported from China, ruling that the tax rate for Baoshan Iron & Steel Co., Ltd. was 649.98%, the tax rate for Shougang Jingtang United Iron & Steel Co., Ltd. was 331.88%, and the national unified tax rate for China was 331.88%.

 

The U.S. International Trade Commission (ITC) is expected to make a final anti-dumping and countervailing duty determination on February 20, 2024. This case involves products under U.S. Harmonized Tariff Numbers 7210.11.0000, 7210.12.0000, 7210.50.0020, 7210.50.0090, 7210.50.0000, 7212.10.0000, 7212.50.0000, 7225.99.0090, and 7226.99.0180.

 

 

 

South Korea releases 2024 customs inspection plan for imported food

 

On January 11, 2024, the Ministry of Food and Drug Administration (MFDS) of South Korea released the 2024 Customs Inspection Plan for Imported Food to ensure the safety and quality of food at the import (clearance) stage, strengthen safety management, and support the efficient operation of the inspection system and timely clearance. The main contents are as follows:

 

(1) Development and implementation of the 2024 Customs Inspection Plan for Imported Food.

 

a) Expansion of planned inspection targets: The scope of planned inspections will be expanded to include seasonal food products with large consumption (red snapper, yellow croaker, etc.) and candy products that arouse children's curiosity through toys;

 

b) Expanding the veterinary drug testing items for livestock and aquatic products: the number of veterinary drugs tested for cattle, pork, chicken, eggs and fish has been expanded from about 70 to about 150;

 

c) Strengthen on-site inspections: The focus is on false declarations of processed food or agricultural products for the purpose of customs arbitrage. The sensory inspection of agricultural and forestry products has been expanded from 21 items to 24 items, such as red peppers, coffee beans, coriander, astragalus, sesame, etc.; false declaration items (5 items): sesame, ground seeds, peanuts, rice, mung beans; In addition, on-site inspections will be expanded for imported seafood that may deceive consumers;

 

(2) Promote and improve the customs inspection system for imported food.

 

a) Shorten the inspection cycle of livestock products;

 

b) Expansion of the scope of expedited customs clearance for planned imports: To ensure a stable supply of food raw materials, the "Planned Import Fast Clearance System", which was originally only applicable to imported products from excellent importers, self-produced refined processing raw materials, edible flavors and other commodities, has now been expanded to raw materials used to manufacture exported food; in addition, a tracking management system will be established for planned imports that have been approved for expedited customs clearance through false or fraudulent means.

 

For more details, see:

https://www.mfds.go.kr/brd/m_99/view.do?seq=47958&srchFr=&srchTo=&srchWord=&srchTp=&itm_seq_1=0&itm_seq_2=0&multi_itm_seq=0&company_cd=&company_nm=&page=1

 

 

 

Türkiye KKDIK formal registration extension plan

 

Recently, the Turkish government officially announced the revised regulations on the Registration, Evaluation, Authorization and Restriction of Chemicals in the official gazette, and the KKDIK formal registration extension plan was announced to be finalized and take effect.

 

Under the new regulations, the formal registration deadline will be managed in stages based on the annual production or import volume and the hazard category of the substance.

 

Formal registration must be completed before December 31, 2026

 

Substances produced or imported ≥ 1,000 tons per year;

Substances belonging to the Aquatic Acute 1 and Aquatic Chronic 1 (H400, H410) hazard categories, with an annual production or import of ≥100 tons;

Substances that are carcinogenic, mutagenic or toxic to reproduction, i.e. CMR 1A/1B hazard categories, and are produced or imported ≥ 1 ton per year;

 

Formal registration must be completed before December 31, 2028

 

Production or import of 100-1000 tonnes of the substance per year, subject to the Phase 1 deadline above;

 

Formal registration must be completed before December 31, 2030

 

Production or import of 1-100 tonnes of the substance per year, subject to the Phase 1 deadline above;

 

The details of the pre-registration deadline have not yet been released in this amendment, and it is estimated that the MoEUCC will release it separately through an announcement later.

 

 

 

 

Source: Focus Vision, Shipping Network, Shipping Today, etc.