/ By tjchinafreight ivy / Shipping

South Korean shipbuilding industry to stop?

Accepting so many orders, so many people, and no salary increase, this job can't be done!

In the face of the tough attitude of the employers, the all-out strike at Hyundai Heavy Industries, which began on April 27, not only did not stop, but the war continued to spread and escalate. Today, in addition to Hyundai Heavy Industries, the trade unions of seven other major shipyards in South Korea have also announced their participation in the "team" to conduct a joint strike with Hyundai Heavy Industries.

South Korean shipbuilding industry to stop?
South Korean shipbuilding industry to stop?

How much to live? Hyundai Heavy Industries Labor Union "leads" seven major South Korean shipyards to join the "team"

On May 4, the Hyundai Heavy Industry Union held a dispute resolution committee and decided to conduct a three-day partial strike from May 6 to 10, and a three-day general strike from May 11 to 13. The schedule after the 13th will be decided in the future, and the strike time may continue to be extended.

On May 2, the Federation of Korean Shipbuilding Trade Unions held a press conference at the Press Center of Ulsan City Hall and announced: "In order to save the Korean shipbuilding industry, we will conduct a joint strike struggle with Hyundai Heavy Industries."

The Korea Shipbuilding Trade Union Confederation was established in May 2015. It consists of trade unions of 8 shipyards including Hyundai Heavy Industries, Hyundai Mipo Shipbuilding, Daewoo Shipbuilding, Samsung Heavy Industries, Hyundai Samho Heavy Industries, Seongdong Shipbuilding & Marine, STX Shipbuilding & Marine, and HJ Heavy Industries. composition. The union includes almost three major Korean shipbuilding giants and other major Korean shipyards.

In order to protest the employer's rejection of the union's request to resume negotiations on the collective wage agreement in 2021, the Hyundai Heavy Industry Union convened a dispute resolution committee on April 25 and announced a general strike from April 27 to May 4. On April 27, the trade union of Hyundai Heavy Industries organized more than 8,000 members of the company's trade unions to gather on the main road of the Ulsan Shipyard and start a sit-in demonstration. In this regard, the company said tit-for-tat that if a strike is forced, it will completely withdraw the agreement on unsolved issues including the reinstatement of the dismissal, and will also take stern measures against all illegal acts that occur during the strike.

It is understood that after the South Korean shipbuilding industry laid off a large number of workers due to lack of orders in the mid-to-late 2010s, there was a serious shortage of workers. South Korean labor market data shows that the number of workers in the Korean shipbuilding industry has plummeted from about 200,000 in 2014 to about 90,000 in 2021, and due to the difficulty of automating many construction parts of the shipbuilding process, such as assembling internal equipment, This means that the new workforce cannot fully fill the gap.

In addition, most of the Korean shipbuilding companies are concentrated in the southeastern part of South Korea, far from the capital Seoul and close to the northern border. South Korean workers can earn higher wages in high-tech industries such as semiconductors, internet services and video games, while shipbuilding is now a less popular industry in South Korea. Shipyards also have difficulty recruiting young workers due to geographic issues.

The Korean Federation of Shipbuilding Trade Unions pointed out: "When the crisis was triggered by the downturn in the shipbuilding market in previous years, the shipyard management ignored the calls and demands of the labor unions and unilaterally laid off a large number of employees, resulting in the current manpower shortage crisis. Those who remain are also unhappy with the prolonged freeze on base salaries, reduced bonuses and the prospect of layoffs at any time."

It is reported that after the press conference on the same day, the Korea Federation of Shipbuilding Industry Trade Unions immediately held an emergency representative meeting of the eight shipyard trade unions to discuss fundraising for the struggle fund, a joint rally, and a general strike plan.

/ By tjchinafreight ivy / Shipping

The unmanned electric container ship is here!

Deutsche Bahn Schenker, the freight forwarder owned by Deutsche Bahn, plans to operate an all-electric autonomous coastal container feeder line between Norway’s Ikornnes terminal and the port of Alesund.

The unmanned electric container ship is here!
The unmanned electric container ship is here!

DB Schenker and its partners, the furniture giant Ekornes and the ship design company Naval Dynamics, as well as Kongsberg (mainly producing and developing automatic monitoring and control system products in the marine field) and Massterly (the world's first unmanned ship company) , designed to replace the traditional feeder ships used on this stretch of Norwegian coast.

The 50-meter-long vessel features Naval Dynamics' NDS AutoBarge 250 concept and is intended to travel at 7.7 knots for three hours with a range of 43 kilometers. It will operate unmanned under the supervision of Massterly's remote operations center.

Kongsberg's chief executive Geir Håøy said the company was starting to see a general shift away from road freight transport, which has considerable carbon emissions, to clean, energy-efficient short-haul freight transport, which was also involved in Operation of some all-electric and autonomous vessels including Yara Birkeland.

According to DB Schenker, this will bring many benefits, including zero emissions, faster and more efficient transport, and reduced road traffic. The partnership program is approved by the Norwegian Maritime Authority and may receive government incentives for sustainability and technology.

"This unique project will mark an important step towards a greener supply chain and integrate it into our overall sustainability agenda in ocean transport. We are ambitiously working with our partners on this Take a leadership role," said Knut Eriksmoen, CEO of DB Schenker Norway.

"Using autonomous electric container carriers to pick up our stress-free products directly from our terminal in Ikernes means our carbon footprint will be significantly reduced. We will also gain better control over our own logistics and Greater flexibility," added Ekornes CEO Roger Lund.

/ By tjchinafreight ivy / Shipping

U.S.-West Port labor negotiations are imminent

U.S.-West Port labor negotiations are imminent
U.S.-West Port labor negotiations are imminent

Labor negotiations are imminent, and the Pacific Maritime Association (PMA), which represents shipping companies and terminal operators, has released a research report that counts the benefits of port automation, but the trade unions (ILWU, International Longshore and Warehouse Union, American International The Terminals and Warehousing Alliance) argues that productivity gains from port automation have exacerbated employment imbalances.

The study, commissioned by PMA and conducted by UC Berkeley public policy professor Michael Nacht, was released on May 2. According to Michael Nacht and Larry Henry, founder of Container Trac, automation is good for the competitiveness and growth of ports on the U.S. West Coast. At 13 container terminals in the Ports of Los Angeles and Long Beach, automation benefits trade, the environment and workers, providing more jobs, the study said.

On the employee side, ILWU workers have increased their paid hours at automated terminals in Los Angeles and Long Beach by 31.5 percent since 2015, the last year of the transition to automated operations, more than double the rate at non-automated terminals, the data shows. ILWU's registered labor force in Los Angeles and Long Beach grew 11.2 percent, compared with 8.4 percent at the other 27 West Coast ports.

In trade, automation has halved container handling time since 2019. Terminals can handle 44 percent more containers per acre than non-automated terminals because automated vehicles and cranes can stack containers higher and denser and transport them more efficiently by trucks and trains. Michael Nacht said: “Higher terminal throughput can provide more port-related jobs and increase employment across the supply chain. If the trend of automation is not kept up, cargo will be diverted to other ports, resulting in terminal and Job losses across the region.” PMA chief executive Jim McKenna said in an interview last month: “The Covid-19 pandemic and the surge in cargo have proven that automated terminals are much more efficient than traditional terminals. As these terminals With a lot of cargo being handled, they actually provide more jobs for dockworkers as well.”

However, these conclusions were not endorsed by the ILWU, and union representative Frank Ponce De Leon responded that the report did not take into account workers who lost their jobs due to the introduction of automated machinery, and that the increase in container throughput at automated terminals was also reflected in the apparent decline in throughput at other terminals. costly and will result in job losses.

The PMA has long campaigned for the introduction of automation in the terminals but has been criticised by the international terminal ILWU. Negotiations between the PMA and the ILWU will take place on May 12 to develop new labor contracts for the 22,000 West Coast dockworkers due July 1.

/ By tjchinafreight ivy / Shipping

Maersk warns container shipping market to return to normal

Maersk warns container shipping market to return to normal
Maersk warns container shipping market to return to normal

Although Maersk's first-quarter results beat expectations, the shipping giant warned that the global shipping industry may gradually return to normal in the second half of the year.

On April 26, Maersk reported financial results for the first quarter of 2022, with revenue of $19.3 billion, underlying EBITDA of $9.2 billion, and underlying EBIT of $7.9 billion. Maersk said, "The first quarter results exceeded expectations," the quarter's results were driven by the continued abnormal conditions in the ocean shipping market, compared with the first quarter of 2021, the volume fell by 7%, and the freight rate increased by 71%. Maersk said: "The strong performance stemmed from exceptional market conditions within the container shipping market, with volumes down 7% compared to the first quarter of 2021, while freight rates increased by an average of 71%."

Given the strong performance in the first quarter, Maersk expects current market conditions to continue in the second quarter and raises its full-year 2022 outlook. Maersk once again significantly raised its full-year profit forecast as last year. Maersk expects full-year 2022 actual earnings before interest, tax, depreciation and amortization (EBITDA) to be $30 billion (previously expected to be $24 billion), an increase of 25%. Actual EBIT was $24 billion (previously expected to be $19 billion) and free cash flow would exceed $19 billion (previously expected to be around $15 billion).

"The already tight supply chain situation deteriorated further in the first quarter of this year, with the Russian-Ukrainian conflict adding to uncertainty," Maersk Chief Executive Detlef Trefzger said in a statement. "The current market situation is expected to continue in the second quarter. Going down, combined with higher contracted freight rates, we expect full-year 2022 results to be stronger than previously expected."

It should be noted that, unlike last year, the shipping giant also warned that this year's container traffic may actually decline, and the Russian-Ukrainian conflict and high inflation may have adverse effects on the global economy. The current performance forecast is still based on the assumption that the marine business will return to normal in the second half of 2022. Although it continues to be optimistic about the container shipping market this year, Maersk also expressed concern about global container demand based on the decline in freight volume in the first quarter, and lowered its outlook for global container demand growth from 2-4% to -1/+1%.

The shipping industry has made record profits in recent quarters, as surging consumer demand, blockages at major global ports due to the pandemic and the recent closure of airspace following the conflict between Russia and Ukraine have kept prices up.

Clarksons data shows that there are currently 861 container ships on order, with a total capacity of 6.57 million TEU, equivalent to 26.4% of the existing fleet. The data shows that the new ships ordered by the shipping giants in large quantities last year are also about to start delivering. This means that the state of high freight rates in the container shipping market will be difficult to sustain.

/ By tjchinafreight ivy / Shipping

Hapag-Lloyd fined $822,000

Hapag-Lloyd fined $822,000
Hapag-Lloyd fined $822,000

Approved by the Federal Maritime Commission on April 22, German carrier Hapag-Lloyd has been ordered to pay a civil penalty of $822,220 for 14 violations of U.S. shipping law -- $58,730 per violation Dollar.

The FMC's Enforcement Bureau investigated a complaint from freight company Golden State Logistics that Hapag-Lloyd imposed demurrage charges on 11 containers that could not be returned in time due to lack of storage space at the terminals (LA, LB ports) .

The Bureau of Enforcement launched an investigation into whether Hapag-Lloyd’s practice of imposing demurrage fees violated the U.S. Shipping Act and found that Hapag-Lloyd either failed to provide a location for the return of equipment or even did so when assessing demurrage fees. The location does not have an appointment to return the empty box.

This is part of an ongoing dispute over demurrage and demurrage (D&D) charges in the industry. Long controversial, D&D fees have become a hot topic in the industry as more and more containers are overloaded at terminals and ports over the past two years. In response to these complaints, the FMC has become increasingly vocal about fees, recently encouraging shippers and haulage companies to alert the Commission to disputes over fees.

Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)
Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)

Liner companies believe demurrage is necessary to ensure the efficient use of very scarce containers, while other stakeholders in the supply chain have complained that due to port congestion, container returns cannot be achieved within the stipulated time. Additional costs should not be borne by the business.

The findings of this incident will support the shipper's argument that it is unfair to charge when a timely return of the container is not possible.

The FMC said: “We have been focusing on the issue of container detention and demurrage for many years, providing multiple opportunities for parties to weigh possible solutions, and in the Container Detention and Demurrage Rules provide information on the collection of containers Specific requirements for the return of demurrage charges for empty containers, but despite such efforts, Hapag-Lloyd has not been able to change its behavior or practices.”

The FMC added that evidence showed Hapag-Lloyd had not changed its policy on container detention and demurrage rules. The FMC Commission provided extensive notice and opportunity for comment prior to developing demurrage and detention rules that clearly set out the criteria for imposing detention for the return of empty boxes, and when there is documentation indicating that there is not enough appointment time to return these It is unreasonable for Hapag-Lloyd to impose demurrage charges when shipping containers.

/ By tjchinafreight ivy / Shipping

“HAIAN CITY” collided with tanker “ORION EXPRESS”

On April 14, about 15 nautical miles south of Chittagong, Bangladesh, a 1400TEU container ship "HAIAN CITY" collided with the oil tanker "ORION EXPRESS", both ships were damaged, the details are unknown, but the container ship has stability problems .

"HAIAN CITY" collided with tanker "ORION EXPRESS"
"HAIAN CITY" collided with tanker "ORION EXPRESS"

The Vietnamese-flagged container ship MV Haian City left Chattogram port for Singapore in the morning and was involved in an accident near Kutubia, about 14 nautical miles from Patenga Naval Base, around 10.30am.

The ship was hit by an inbound tanker named Orion Express, causing Hai'an to lose one or more containers into the sea, they added that the container ship was partially damaged by the accident.

Port officials said the container ship needed to repair the damage before it could resume sailing, and both ships were asked not to sail until claims were resolved.

The Chittagong Port Authority had deployed its salvage tug Kadari-11 along with pilots on duty and pollution control vessels to salvage the drowning containers, but work was interrupted due to rough seas.

Rafique Uddin, head of Intermodal Pvt Ltd, a local agent for the container ship, said, "Our surveyors were unable to reach the ship due to bad weather, so we were unable to assess the damage. Our maintenance crews were also unable to get close to the ship."

It is reported that the container ship "HAIAN CITY" is a feeder ship between Singapore and Chittagong, flying the Vietnamese flag and operated by Samudera Shipping Line Ltd.

/ By tjchinafreight ivy / Shipping

CMA CGM container ship catches fire

CMA CGM container ship catches fire
CMA CGM container ship catches fire

It is reported that on April 16, CMA CGM LISA MARIE, a large container ship owned by CMA CGM, encountered a container fire in the waters of Banda Aceh Sabang in the west of Sumatra Island.

The fully loaded vessel was on its way from Jeddah to Port Klang at the time of the incident. Basarnas Banda Acehs head Budiono said one of the containers caught fire when the ship arrived in Sabang waters, suspected to be caused by a short circuit.

The crew reportedly managed to put out the fire by their own means, with ships and tugboats in Banda Aceh district pouring water over containers at the fire site to cool them as a precaution. CMA CGM LISA MARIE resumes sailing after confirming fire safety.

At the time of the incident, the ship's voyage was "0BXBLW1MA", which may involve multiple shipping companies sharing cabins: CMA CGM, COSCO, Evergreen, OOCL, APL, ANL and CNC.

In addition, it should be noted that the next voyage of the ship is "0BXC7W1MA". The scheduled sailing date is to depart from Busan Port on April 26, and then call at Shanghai Port (April 27-28) and Ningbo Port (April 29). Japan-30), Xiamen Port (May 1-2) and Shekou Port (May 3), please pay attention to whether there will be delays in the subsequent shipping schedules.

/ By tjchinafreight ivy / Shipping

Stranded Evergreen container ship escapes trouble

After more than a month of salvage work, the container ship "EVER FORWARD" (long-haul ship) finally got out of trouble.

Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.
Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.

Rescue operations

On March 13, the long-haul ship deployed on the Evergreen Asia-US East AUE route ran aground in the Chesapeake Bay. After multiple salvage failures, the salvage team unloaded more than 500 containers from the vessel and successfully towed the vessel away from shore using high tide on Sunday morning.

According to the Wall Street Journal, the long-distance ferry has become a local tourist attraction in the past few weeks. Tourists drove miles to a small park on the Maryland coast to watch the stranded container ship and its rescue efforts.

Ever Forward will be towed to Annapolis Anchorage for inspection, the release said. There, it will reload containers offloaded from the hull and continue on to its next port of call, Norfolk, Virginia.

How do you view this event?

"The breadth and complexity of this response is historic because an event like the Forever Forward stranding is rare in its type and duration," said Capt. David O'Connell, commander of the Coast Guard in the National Capital Region of Maryland. Say. "It was the collaboration of each response agency, Evergreen Marine Corporation and dedicated responders that allowed Ever Forward to successfully refloat while keeping the public and responders safe, reducing the potential for contamination, and minimizing economic impact
ring. "

Evergreen issued a thank you announcement

On April 17, Evergreen issued an announcement that "the long-distance wheel was successfully rescued". The announcement stated:

Evergreen expressed its sincere thanks to the rescue team, the U.S. Coast Guard, the Maryland State Government and all walks of life for their assistance and concern. After more than a month of hard work, they finally overcome all difficulties and the freighter successfully escaped.

In addition, Evergreen has declared general average for this stranding accident. The owner of the cargo on the ship and the joint operating partner using the space must provide the necessary guarantees and documents to the general average adjustment company in accordance with the general average adjustment rules, so that the delivery of the goods can be smoothly handled after the goods arrive at the port.

/ By tjchinafreight ivy / Shipping

Shipping from China to Vietnam

German and Chinese flag pair on desk over defocused background. 
German and Chinese flag pair on desk over defocused background. 

Shipping from China to Vietnam

Sea freight from China to Vietnam

Sea freight from china to vietnam
Sea freight from china to vietnam

LCL (LCL)

By LCL shipping, your cargo shares container space with other companies' products imported from China to Vietnam. LCL is often the most cost-effective method for businesses shipping smaller shipments.

Full Container Load (FCL)

With FCL shipping, you have exclusive use of the shipping container. Your shipment will be completely sealed in the container from origin to destination. FCL shipping is not only faster than LCL, but also cheaper.

Air freight from China to Vietnam

Air freight from china to vietnam
Air freight from china to vietnam

Air freight is by far the fastest way to export from China to Vietnam. Some shipments can be completed within four days. However, this is the most expensive shipping method.

Trucking from China to Vietnam

Now, let me introduce you to trucking from China to Vietnam.
You can use it if you want to ship goods from Yunnan Province to Vietnam.
Trucking from China to Vietnam is very flexible.
This is one of the main advantages.
For example; you can ship to very small towns without airports, oceans or rail lines.
With this, TJ chinafreight we can provide door to door shipping from China to Vietnam.
That is, you can visit places within Vietnam.
guess what?
This will work in your favor - cost-effective, convenient and reliable trucking from China to Vietnam.
The process here is very simple.

How long does it take to ship goods from China to Vietnam?

The time it takes to ship goods from China to Vietnam, as well as the price, are often important factors in determining the shipping method.

Of course, air freight is the fastest option, with transit times between China and Vietnam ranging from four to eight days. On the other hand, shipping time by sea can vary greatly depending on the distance between the origin and destination ports. You can expect the shipping duration to be between 7 and 31 days.

The following are examples of transit times for routes operated by Shipa Freight between China and Vietnam:

Shanghai to Ho Chi Minh City - 8 days FCL, 14 days LCL
Guangzhou to Ho Chi Minh City - 14 days FCL
Shenzhen to Ho Chi Minh City - 24 days FCL
Huangpu to Ho Chi Minh City - 24 days for FCL, 16 days for LCL
Lianyungang to Haiphong - 31 days FCL
Jiangmen to Haiphong - 7 days FCL, 5 days LCL
Shanghai to Haiphong – 13 days FCL, 7 days LCL
Dalian to Ho Chi Minh City - 31 days FCL
Qingdao to Haiphong - 7 days FCL
Tianjin to Haiphong - 13 days FCL
Zhongshan to Ho Chi Minh City - 27 days FCL

While the flight from China to Vietnam only takes a few hours, the entire shipping process takes days. The transit time for air cargo includes customs and security inspections, as well as loading and unloading of the cargo.

Below is an example of transit times for a typical air freight route between China and Vietnam:

Shanghai to Ho Chi Minh - 4 days
Shenzhen Ho Chi Minh – 8 days
Shanghai to Hanoi - 5 days
Beijing to Hanoi - 8 days
Guangzhou to Hanoi or Ho Chi Minh - 7 days

China and Vietnam Customs Clearance

Clearing customs can seem like a daunting process, especially if this is your first time exporting from China to Vietnam. A freight forwarder can take the load off you by providing the necessary guidance and expertise to ensure your shipments comply with the rules.

What is the customs clearance process for goods from China to Vietnam?

you have to provide information about certain things,

  • Origin and destination of the goods
  • Importers and Exporters Tax Information
  • Package quantity, volume, weight and product description
  • Tax payable

You need to provide the following documents,

  • Commercial invoice
  • Bill of lading
  • Packing list
  • Any required proof (for restricted items and special approvals)
/ By tjchinafreight ivy / Shipping

Japanese shipbuilders’ orders hit a six-year high in 2021

The surge in demand for bulk carriers has driven the number of orders received by Japanese shipping companies in fiscal 2021 to a six-year high.

It is the scenery of the Gulf region of urban area of Japan.
It is the scenery of the Gulf region of urban area of Japan.

April 12

The Japan Ship Exporters Association (JSEA) released the latest data on the number of orders received by Japanese shipbuilding companies in fiscal year 2021 (April 2021-March 2022). In the last fiscal year, the number of orders received by Japanese shipbuilding companies reached 313 ships of 14.2992 million GT, a year-on-year increase of 59.8%, and the year-on-year increase for the second consecutive year. This is also the year since the 2015 fiscal year (2018 million GT). The number of orders received exceeded 14 million GT for the first time.

According to JSEA data, orders received by Japanese shipbuilders in fiscal 2021 increased by 136 vessels to 313 vessels, an increase of 77% compared with 177 vessels in fiscal 2020. Among them, the order volume of bulk carriers increased by 123 to 218, a sharp increase of 129% from 95 in fiscal year 2020, and the proportion increased from about 50% to 70%. Orders for cargo ships such as container ships increased by 17 to 69, a 33% increase from the 52 in fiscal 2020, of which 43 were bulk container ship orders. The number of tanker orders decreased by 5 to 24, and the orders for VLCC, LPG and product oil tankers all declined.

March this year

The number of orders received by Japanese shipbuilding companies was 49 ships of 1,827,490 GT, a year-on-year increase of 75%, and a year-on-year increase of 21.2% in terms of tonnage, setting the highest monthly order record since June 2021, ending the three consecutive years since December last year. month's decline.

According to JSEA data, new ship orders received by Japanese shipbuilders in March included 13 general cargo ships and 36 bulk carriers. Among them, 13 cargo ships include 8 container ships, 3 general cargo ships and 2 ro-ro ships, with a total of 627,990 GT; 36 bulk carriers are 21 Handysize, 11 Handysize, 2 Panamax, 1 Cape of Good Hope and 1 ore carrier, totaling 1,199,500 GT.

The first 3 months of this year

Japanese shipbuilding companies received a total of 73 orders of 2,782,090 GT, down 24.6% year-on-year, including 16 general cargo ships (785,980 GT), 55 bulk carriers (1,963,410 GT), 1 oil tanker (30,600 GT) and 1 other ship (2100 GT).

By the end of March 2022

Japanese shipbuilding companies have a total of 411 orders of about 19.01 million GT, which is lower than the 18.5 million GT at the end of last month, an increase of 4.6% compared with the end of February, and the first monthly increase in three months. At present, the number of orders held by Japanese shipbuilding companies is approximately equivalent to 1.9 years of workload, and gradually recovers to a 2-year period close to the normal level.