Thursday, October 28, 2010

PKA unveils guidelines to resolve issues in Port Klang

Port Klang Authority (PKA) has taken the initiative to resolve disputes pertaining to deposit collection by shipping lines, non-vessel operating common carrier (NVOCCs) and box operators in the port community.

This is in line with its vision to develop Port Klang as a preferred logistics hub

According to a PKA statement last week, importers and forwarding agents had frequently raised the issue of deposit collection by shipping lines, NVOCCs and box operators to recover post-delivery charges for detention, container repair and washing.

Both importers and forwarding agents have held that deposit collection is considered an unhealthy practice and has frequently led to disputes between various parties.

In view of this, PKA had recommended best practices/guidelines to create a level playing field for all the logistics players in Port Klang. PKA’s best practices/ guidelines were also adopted during the port consultative committee meeting which was held on Oct 5.

All parties were requested to extend their fullest cooperation in facilitating cargo transactions to minimise any inconvenience to parties involved, the port said.

“Shipping lines are encouraged to carry out proper assessment of their customers to avoid deposit collection for deserving cases,” it added.

Noting that there may be instances where shipping lines, box operators and NVOCCs may require assurance against anticipated loses, PKA’s guidelines were recommended to resolve possible issues that may arise. In principle, shipping lines, box operators and NVOCCs may collect a deposit from the consignee if they have previously defaulted on a payment due or failed to settle due payments or the consignee has no prior transactions with them.

The guidelines would also help industry players resolve disputes on container damages as they outlined the modus operandi for the container delivery system, PKA said.

PKA said it believed that commitment from every party in the logistics chain was vital and essential to improve the efficiency of the delivery system.

Source: StarBiz

Saturday, October 23, 2010

The World's Busiest Ports

HONG KONG -- The global shipping industry is beginning to show signs of returning to profitability after suffering through one of its worst years ever in 2009. Falling exports and a glut of too many ships ordered during the boom years drove prices down to unsustainable levels on some routes, but the outlook is now improving for both the ports and the shipping companies.

Container traffic provides a window on trade patterns and the state of the global economy because it is the most closely tied to consumer demand. Six of the world's 10 busiest ports are located in China, when measured in terms of cargo shipped in standard containers, or TEUs (20-foot equivalent units).

In fact, Asia's exporting prowess is so dominant that Dubai and Rotterdam are the only two ports from outside the region to even make the list.

Since container shipping accounts for 52% of the total value of the world's seaborne trade, according to Lloyd's Maritime Intelligence Unit, Forbes used it to rank the world's busiest ports. Tankers make up 22%, general cargo 20% and dry-bulk commodities 6%.

China's exports returned to growth late last year after recording 13 months of declines during the financial crisis. The country's exports rose to $119.9 billion in April, a jump of 30.5% from a year earlier, while its imports surged 49.7% to 118.2 billion.

China Merchants Holdings, the country's largest publicly traded container port operator, said volumes this year may exceed 2008's level, according to a recent Bloomberg report. China Merchant's container throughput increased over 20% in the first four months of the year.

Macquarie selected China Merchants as its top pick of the China port sector with an "outperform" rating and raised its price target to 31 Hong Kong dollars ($4) from 21 Hong Kong dollars ($2.70). The Australian bank expects the recovery in exports to continue in 2010 supported by resilient North American and Intra-Asian volume.

China's resurgent economy and renewed demand for commodities is also benefiting its Asian neighbors. The Baltic Dry Index, which measures shipping rates for commodities, has jumped 40% for the year so far, 22% in May alone.

The improvement in shipping rates is helping to bolster shares of Japan's biggest dry-bulk shipper Mitsui O.S.K. Lines, which have surged 32% this year, while its rivals Nippon Yusen KK and Kawasaki Kisen Keisha are up 15% and 40%, respectively. All three of Japan's biggest shippers are forecasting a jump in profits this year based on the strength of the country's export-led recovery.

Growing demand from China and other Asian economies helped to boost Japan's exports for the past five months, but shipments to Europe have already begun to slow. If the euro-zone's sovereign debt troubles continue to worsen and spillover to the wider financial system, then China's shipping outlook may shift again.

China's shipping companies have been singled out as the sector most exposed to the E.U.'s uncertainty. Credit Suisse estimates that 35% of China COSCO's revenue and 32% ofChina Shipping Container Lines' comes from the Asia-Europe route, while earnings from European trade for the country's port operators varies between 7.3% to 34.1%.

Source: Forbes

Below is the Forbes list of the busiest ports in the world. Ranking is from first downwards:


Shanghai, China

Hong Kong

Shenzhen, China

Busan, South Korea

Guangzhou, China

Dubai, UAE

Ningbo, China

Qingdao, China

Rotterdam, Netherlands

Monday, October 18, 2010

Oversupply of ships to be resolved

THE oversupply of ships in the maritime industry is expected to be resolved within two years as economic recovery boosts global trading activities, Deputy Transport Minister Datuk Abdul Rahim Bakri said.

He said that shipping companies worldwide had suffered severe losses over the last two years, with many in financial ruins as markets plummeted. More than a thousand ships were left idle or mothballed in numbers never seen in the history of shipping.

"Shipping companies in Asia suffered heavily, and I am painfully aware that some in Malaysia were hit just as bad.

"Mercifully, the industry has found its footing again. Based on the trends and signs I am seeing, I'm optimistic that the issues with oversupply (of ships) will be resolved within two years."

Abdul Rahim said that 95 per cent of global trade relied on shipping currently. Hence, as the economies in Asia continue to grow, demand for shipping services will increase, as will also demand for ports and logistic services.

Abdul Rahim was speaking to reporters after opening the 6th Asia Maritime & Logistics Conference and Exhibition 2010 in Kuala Lumpur yesterday.

He said Asia was expected to lead the way in recovery of the world shipping industry. Some of the biggest lines are Asian-owned, or, if foreign-owned, operating extensively in the Asian market.

The world's leading shipbuilders, such as South Korea, China and Japan, are in Asia. Seven out of the 10 leading ports in the world are also in the region.

"Six of the most connected liner ports in the world are in Asia," Abdul Rahim added.

He said the shipping industry was proposing that the government offers some funding support for the industry to help the shipowners recover and take advantage of the economic rebound.

"However, I am not sure if any goodies will be given to the shipping industry. The decision will be made after the assessments by the economic council," he said.

Meanwhile, Malaysian Shipowners' Association chairman Nordin Mat Yusoff, in his opening address, said that the new focus was expected to shift towards keeping the seas and environment clean.

"There is expected to be new pressure on shipowners over maritime carbon emission with the recent progress made by the International Maritime Organisation in developing measures to improve the energy efficiency of ships, in order to reduce greenhouse gas emission from international shipping," he said.

Nordin added that the shipping industry, which accounts for 2.7 per cent of total carbon emission, might have to look at steaming slowly to address the emission problem, especially since it has been estimated that a four-knot reduction in sailing speed could reduce daily emissions by nearly 40 per cent.

Sunday, October 10, 2010

Only handful opt for third-party logistics

KUALA LUMPUR: Malaysia’s manufacturing sector is still in transition to fully realise the advantages of outsourcing their logistics activities.

This outsourcing effort, known as third-party logistics (3PL) services, usually involves integrated warehousing and transport services being customised to meet customer’s needs based on their markets, demands and delivery requirements.

According to Dynamic Learning Resources trainer consultant G. Vizayer Raj, only a handful of Malaysian companies have fully outsourced their logistics activities.

“For manufacturers, the long-term benefits of using 3PL services include reduction in warehousing and distribution cost as well as enhanced focus on core activities such as quality control, production and marketing.

“In the long run, the cost of transportation, distribution and inventory management could be reduced by more than half if the company opts for 3PL services,” he told StarBiz.

“At the end of the day, manufacturers could produce good quality and competitively priced products that could reach their target markets on time.”

Vizayer recently presented a paper on Creating Global Value Through Efficient Trade Logistics at the 2nd National Logistics Conference organised by The Exporter Club.

He said the lack of awareness on 3PL services in Malaysia could be due to the perception towards logistics services here.

“Around 20 years ago, we were largely dependent on Singapore in terms of logistics. Our logistics services then did not bring the desired result, but the sector has since evolved.

“Many international logistics companies have set up their hubs in Malaysia and they include DHL, Schenker and Ceva Logistics,” Vizayer said.

He noted that Malaysia had developed its own logistics companies that offered services of international standards. They include Century Logistics Holdings Bhd, Freight Management Holdings Bhd, Tiong Nam Logistics Holdings Bhd and Freight Mark (M) Sdn Bhd.

Vizayer said to achieve a strong logistics sector, a country must put in place the processes of logistics.

“Certain factors must be addressed to stimulate growth and they include infrastructure and policies.

“Physical assets such as skilled workforce; infrastructure like roads, bridges, airports, seaports, railways; and adequate communications network must be of international standards,” he said.

“We also need Government support in the areas of policies, procedures and regulations to ease and promote trade.”

Vizayer said corporations should also play their part to stimulate trade growth.

“They must educate employees on the benefits of global trade, create a sustainable enterprise, utilise the resources of 3PLs and make supply chain management a strategic priority.”

Source: StarBiz

Tuesday, October 5, 2010

Air Freight: Unit Load Device

A unit load device, or ULD, is a pallet or container used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft. It allows a large quantity of cargo to be bundled into a single unit. Since this leads to fewer units to load, it saves ground crews time and effort and helps prevent delayed flights. Each ULD has its own packing list (or manifest) so that its contents can be tracked.

Volume indicated is internal volume.
Container typeVolumeLinear dimensions
(base width / overall width × depth × height)
LD1[1]4.90 m3 (173 cu ft)156 / 234 × 153 × 163 cm
(61.5 / 92 × 60.4 × 64 in)
contoured, half width
LD2[2]3.40 m3 (120 cu ft)119 / 156 × 153 × 163 cm
(47 / 61.5 × 60.4 × 64 in)
contoured, half width
LD34.50 m3 (159 cu ft)156 / 201 × 153 × 163 cm
(61.5 / 79 × 60.4 × 64 in)
contoured, half width, dimension according to IATA
LD68.95 m3 (316 cu ft)318 / 407 × 153 × 163 cm
(125 / 160 × 60.4 × 64 in)
contoured, full width, equivalent to 2 LD3s
LD86.88 m3 (243 cu ft)244 / 318 × 153 × 163 cm
(96 / 125 × 60.4 × 64 in)
contoured, full width, equivalent to 2 LD2s; DQF-prefix
LD117.16 m3 (253 cu ft)318 × 153 × 163 cm
(125 × 60.4 × 64 in)
same as LD-6 but without contours; rectangular
Pallet typeVolumeLinear dimensionsRemarks
LD86.88 m3 (243 cu ft)153 × 244 cm
(60 × 96 in)
same floor dimensions as container variant; FQA-prefix
LD117.16 m3 (253 cu ft)153 × 318 cm
(60.4 × 125 in)
same floor dimensions as container variant; FLA- and PLA-prefixes
(2 pallet variants)
10.8 m3 (381 cu ft)
11.52 m3 (407 cu ft)
224 × 318 cm
(88 × 125 in)
244 × 318 cm
(96 × 125 in)
PAG- and P1P-prefixes
PMC- and P6P-prefixes
Pallet volumes shown are built 64 in tall for lower deck loading. Height limit for main deck depends on aircraft type.

ULD capacity

Aircraft loads can consist of containers, pallets, or a mix of ULD types, depending on requirements. The table below indicates the maximum capacity of an aircraft for all-container and all-pallet configurations. In some aircraft the two types must be mixed as some compartments take only specific ULDs.

Container capacity of an aircraft is measured in positions. Each half-width container (LD1/LD2/LD3) in the aircraft it was designed for occupies one position. Typically, each row in a cargo compartment consists of two positions. Therefore, a full-width container (LD6/LD8/LD11) will take two positions. An LD6 or an LD11 can occupy the space of two LD3s. An LD8 takes the space of two LD2s.

Aircraft pallet capacity is measured by how many PMC-type LD7s (96" × 125") can be stored. These pallets occupy approximately three LD3 positions (it occupies two positions of one row and half of the two positions of the following row) or four LD2 positions. PMCs can only be loaded in cargo compartments with large doors designed to accept them (small door compartments are container only).

A = Airbus; B = Boeing; L = Lockheed; MD = McDonnell-Douglas; F = freighter; ER = extended range; LR = long range
AircraftMax Container Cap.Max Pallet Cap.Remarks
B727-100Fnone8 pallets*[3]*88" × 125" pallets only; the 727 is a narrow-body
B727-200Fnone12 pallets**88" × 125" pallets only; the 727 is a narrow-body
B727-200C (combi)none11 pallets**88" × 125" pallets only; the 727 is a narrow-body
B747-100/200/30030 LD1s[4]5 pallets + 14 LD1s
B747-40032 LD1s[1]5 pallets + 14 LD1s
B747-400ER26 LD1s[1]4 pallets + 14 LD1s
B747-400F/ERF32 LD1s (lower deck) + 30 pallets (main deck)[1]freighter aircraft, capacity includes all decks
B767-20022 LD2s[2]3 pallets + 10 LD2s[2]
B767-30030 LD2s[2]4 pallets + 14 LD2s[2]
B767-300ER30 LD2s[2]4 pallets + 14 LD2s[2]
B767-300F24 pallets* (main deck) + 30 LD2s (lower deck)[2]*accepts 88" × 125" pallets only; freighter aircraft
B767-400ER38 LD2s[2]5 pallets + 18 LD2s
B777-200/200ER/200LR32 LD3s[5]10 pallets
B777F30 LD3s + 27 pallets37 palletsfreighter aircraft, capacity includes all decks
B777-300/300ER44 LD3s[5]14 pallets
B787-8/-328 LD3s9 pallets
B787-936 LD3s11 pallets
A300B2/B420 LD3s ?
A300-60022 LD3s4 pallets + 10 LD3s
A300-600F41 LD3s25 palletsfreighter aircraft, capacity includes all decks A300-600F deck layout
A31014 LD3s3 pallets
A320PF10 pallets* (main deck) + 7 LD3-45W (lower deck)10 AAZ (main deck) + 7 LD3-45W (lower deck)*accepts 88" × 125" pallets only; freighter aircraft equipped with fwd cargo 86×121" door
A321PF13 pallets* (main deck) + 10 LD3-45W (lower deck)13 AAZ (main deck) + 10 LD3-45W (lower deck)*accepts 88" × 125" pallets only; freighter aircraft equipped with fwd cargo 86×121" door
A330-20023 pallets or 26 LD3s8 pallets + 2 LD3s
A330-200F9 AMA containers + 4 pallets (main deck) + 26 LD3 (lower deck)22 pallets (main deck) + 8 pallets + 2 LD3 (lower deck)freighter aircraft, capacity includes all decks A330-200F deck layout
A330-30032 LD3s11 pallets
A340-20026 LD3s9 pallets
A340-30032 LD3s11 pallets
A340-50030 LD3s10 pallets
A340-60042 LD3s14 pallets
A380-80038 LD3s13 pallets
A380-800F59–71 LD3s66 palletsfreighter aircraft, capacity includes all decks A380-800F deck layout
MD-11F32 LD3s[6]26 pallets
L-101116 LD3snoneall series except 500 (250/200/150/100/50/1 series)
L-1011-50019 LD3s4 pallets**if equipped with fwd cargo 104" door
Il-8616 LD3s ?
Il-9618 LD3s ?
Maximum capacity shown does not reflect weight restrictions.
Actual number of ULDs loaded may be lower if aircraft is at its weight limit.

All information above are sourced from Wikipedia. For additional information, please click HERE.