Fracht Australia eNewsletter November 2014
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"People often say that motivation doesn't last. Well, neither does bathing. That's why we recommend it daily."

Zig Ziglar



  • FRACHT FWO INC, MIAMI moved into new premises. Please note the new address: 2794 NW 79th Avenue, Doral, FL 33122, USA. Telephone and fax numbers remain unchanged.
  • Effective 1 January 2015 shipping lines operating in Emission Control Areas (ECA) will have to USE HIGHER QUALITY FUELS WITH A SULPHUR CONTENT OF NO MORE THAN 0.1% to comply with new regulations from the International Maritime Organization (IMO). The current sulphur limit in the ECA is 1%. The affected areas are North America and Europe (North Sea and Baltic Sea). This will increase operational costs and will have an effect on freight rates. As far as CO2 emissions are concerned, ships are already the most environmentally friendly mode of transport, well ahead of trains, trucks and airfreight.



  • QATAR AIRWAYS CARGO CONTINUED ITS EXPANSION WITH THE LAUNCH of two new freighter destinations, Brussels and Shanghai. Qatar now operates four weekly A330F services to Brussels and three weekly B777F freighters on the Doha-Shanghai-Doha route. An additional B777F service was introduced to the Hong Kong route increasing the weekly frequencies to 14.
  • THE TOP 10 INTERNATIONAL AIRFREIGHT CARRIERS IN 2013 are Emirates, Federal Express, UPS, Korean, Cathay, China Airlines, Singapore Airlines, Qatar Airlines, Lufthansa and Asiana. Qantas was number 33 and Air New Zealand 46.
  • QANTAS CHANGES THE RULES FOR UN3090 LITHIUM METAL BATTERIES. UN3090 packing instruction 968-1A, 1B and Section 2 lithium metal batteries are NO longer accepted on any Qantas aircraft including freighters. Batteries contained in or packed with equipment, UN3480 Lithium Ion Batteries (packed on their own) and UN3481 Lithium Ion Batteries contained in or packed equipment, remain unchanged and can be carried in accordance with the IATA Dangerous Goods Regulations.
  • ACCORDING TO IATA INTERNATIONAL AIR FREIGHT RECOVERY CONTINUED TO STRENGTHEN in August. For the first 8 months international airfreight grew 5.1% in 2014 and in the Asia Pacific region 5.1%. This positive trend was also reflected in an October 2014 airline business confidence survey. Airline profit expectations for 2015 are positive. The survey indicates that falling input costs and stronger growth in traffic volumes are responsible for better recent financial performance and the positive outlook.
  • A FIVE YEAR IATA FORECAST FOR AIR CARGO shows that international freight volumes are expected to increase at a compound annual rate of 4.1% between 2014 and 2018. The Middle East is the fastest growing region with 4.7%, followed by Africa with 4.4% and Asia Pacific and Latin America both with 3.8%. In 2014 more than USD6.8 trillion worth of goods, equivalent of 35% of total world trade by value, will be transported around the world by air.



  • In spite of the fact that shipping lines from Asia to Australia didn’t have much luck in enforcing the September and October GRIs (General Rate Increases) they have ANNOUNCED ANOTHER INCREASE OF USD300.00 PER TEU (twenty foot equivalent unit) effective 15 November.
  • Even though there tends to be surplus capacity in many trades shipping lines continue to phase in even larger vessels. CSCL (China Shipping) will replace five 9,500 TEU ships in the Asia – Europe trade with new 19,200 TEUs vessels in monthly intervals from November. An additional six similar vessels from the UASC new building programme will be deployed from March 2016. THE SOARING CAPACITY WILL RESULT IN FURTHER DOWNWARD PRESSURE ON RATES and most likely have a similar effect on the prices of transhipment services from Europe to Australia.



  • THE WILD STORMS IN SYDNEY ON TUESDAY NIGHT, 14 OCTOBER caused havoc in Port Botany. The 68 knot winds ripped two ships from their moorings. At 21.40h the “Kiel Express” crossed the DPW dock and made contact with the ”Safmarine Makutu” on the Patrick side. AT 22.40h the “OOCL Hong Kong” also parted lines and started to cross the dock. Tugs from Svitzer and PB Towage managed to avoid a major disaster. All pilotage at Port Botany had to be suspended until the weather improved late Wednesday.
  • THE SAME EXTREME WEATHER CONDITIONS ALSO SHUT PORT KEMBLA at 20.15h. The port’s anchorage was closed to shipping and all vessels directed to sea.
  • AUSTRALIA AND OCEANIA CONTAINER VOLUMES TRACK AHEAD OF LAST YEAR. In the first eight months of 2014 import volumes increased by 7.14% to 2,497,400 TEUs and export volumes increased by 4.78% to 1,753,000 TEUs. In 2013 a total of 3,667,400 TEUs were imported and only 2,532,400 TEUs were exported. The difference of 1,135,000 TEUs highlights the scale of the container imbalance problem in Australia.
  • BUSAN / KOREA IS THE WORLD’S 5TH BUSIEST CONTAINER PORT with a throughput of 17.7 million TEUs in 2013. One of the operators – Busan New Container Terminal (BNCT) is on track to increase its annual capacity by 700,000 TEUs to 2.5 Million in 2015. BNCT is constructing additional yard blocks and purchasing megavessel-friendly equipment, including eight straddle carriers and three super post-panamax twin-lift quay cranes with 24-row outreach at 49 metres high. 


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