Reference Data Appendix

Quotations from leading trade and economic journals

1.  “GPA 13^th Year of Consecutive Growth.” American Journal of Transportation on the Web 28 August 2000. 28 August 2000.

“According to the American Journal of Transportation, new steamship services, which were announced during the fiscal year, have strengthened the Port of Savannah as the South Atlantic gateway to the Far East.  CMA-CGM, China Shipping Group, and P&O Nedlloyd selected Savannah for its new service which provides direct service between Asia, the Caribbean and the US East Coast.  In June, Maersk Sealand relocated its southeastern port of call to Savannah for its all-water Far East service. The weekly service is expected to carry in excess of 20,000 containers through the port annually.  In addition, Evergreen selected Savannah for its new fixed-day, weekly Asia - US East Coast Service.  The AUE Service fleet is comprised of nine vessels operating on a 63-day round trip schedule.”

2.  Damdessus, Michael. “Latin American in a Globalized Economy:  The Chilean Response.” The IMF on the Web 14 Mar 1999. 19 June 2000 .

“According to a report furnished by the International Monetary Fund, Latin American countries have been making determined efforts for over a decade to reform their economies, implement sound economic management, and integrate with the global economy.  Chile, Argentina, Mexico, and Brazil have gone very far in shoring up their economies.  Latin America is emerging as a strengthened region, ready for stronger growth.”

3.  “Latin America trade fueling resurgence of East Coast ports.” Cisneros News on the Web 26 June 2000 <http://www.cisneros.com>.

Analysts are expecting the economic growth in Latin America and the Caribbean will likely be steady rather than swift.  It is a strengthened region, better adapted to globalization.  Economic success is ensuring continued growth and development, and the region is well positioned to take advantage of an upturn in world trade.  The resurgence of eastern container ports is due to the emergence of Latin America as a trade power and the increasing popularity of all-water shipping services through the Panama and Suez canals.”

4.  “Liner Briefing.” Lloyd’s List on the Web 18 April 2000. 07 March 2001  .

“CHILEAN carrier Compania SudAmericana de Vapores is entering theNorth Atlantic trade through a space charter arrangement with DSR-Senator.  CSAV will be taking 100 20 ft slots a week on DSR-Senator's north Atlantic pendulum service which calls at Felixstowe, Bremerhaven, Rotterdam, Le Havre, New York, Norfolk and Savannah.  The slot charter agreement will begin mid-May, said DSR-Senator.”

5.  “Liner Shipping: Asian carriers revamp Panama Express Service.” Lloyd’s List on the Web 18 April 2000. 07 March 2001  .

“COSCO, K Line and Yangming have finalized their port calls for their three reshuffled trades to the Mediterranean and US east coast.  The Asia-US east coast string dubbed the Panama Express Service will work off nine 3,400 teu vessels on a weekly service kicking off from Shanghai on Mondays, followed by the southern Chinese load ports of Yantian and Hong Kong, beforesailing on Friday for New York via the Panama Canal.  The service will string back through Norfolk, Charleston, followed by Tokyo, Kobe, then returning to Shanghai. Cosco's Yu Guhe will kick the service off on April 24.  The multiple port stops of Asia-Mediterranean Express Service (AMX) with eight 3,500-3,800 teu vessels will start in Xingang, followed by Shanghai, Hong Kong, Shekou. Other Asian load ports include Singapore, Kelang, Columbo, before transiting the Suez and serving Port Said, Haifa, Naples, Genoa, Fos, Barcelona, and Valencia. The three stops in the return eastbound leg include Port Said, Singapore and Hong Kong.

The Mediterranean to US east coast service with four 2,000 teu vessels will start in Genoa, followed by Naples, Barcelona, then transiting to New York, Norfolk, and Charleston before returning to Genoa.  In addition the new US east coast all-water service from Asia, K Line has also announced that it will share slots on Yang Ming Line's well-established US east coast all-water service.  The two new all water US east coast services represent the first time that KLine has covered this trade route.  The Yangming service is a joint service with Hanjin Shipping and trades out of Keelung, stopping in Pusan, two Japanese ports, before transiting Savannah, Wilmington, and New York.

Return leg trades hit Pusan, Kaohsiung and Hong Kong, before restarting from Keelung.”

6.  Porter, Janet. “Evergreen in all-water Asia/USEC service.” Lloyd’s List on the Web 16 May 2000. 07 March 2001 <

“Evergreen has confirmed plans to introduce a second all-water service between Asia and the US east coast via the Panama Canal.  The Taiwan carrier will launch the new service in July with a string of nine vessels.  The service will call at Hong Kong, Kaohsiung, Coco Solo in Panama, New York and two additional east coast ports – Baltimore or Norfolk and Charleston or Savannah.  Ships will then call again at Evergreen’s Caribbean Colon Container Terminal before returning to the Far East, a round trip of 63 days.  Evergreen first introduced a service on this route 25 years ago and this is now integrated into the carrier’s eastbound and westbound round-the-world services.  Evergreen will be deploying its own existing tonnage, three 2,728 teu G-class ships and six 1,810 teu L-type vessels.”

7..  Porter, Janet. “Lykes Lines splits Americas service.” Lloyd’s List on the Web 25 July 2000. 07 March 2001 .

“Lykes Lines has split its service between North America and South Africa into two loops.  The service, renamed the North America-Africa Service, will now offer both an east coast loop and a gulf loop.  The former will call at Montreal, Philadelphia, Savannah, Cape Town, Philadelphia, and Montreal, deploying five multipurpose ships able to handle containerised, ro-ro, breakbulk and bulk cargoes.  It is expected to be run in co-operation with Christensen Canadian African Service that CP Ships is buying.”

8.  “Savannah record volumes.” Lloyd’s List on the Web 01 September 2000. 07 March 2001  .

“The Port of Savannah reported record volumes for the fiscal year ended June 30, up 5.4% over the previous year and representing some 9.6m tons of cargo.  The port handled 845,408 teu during the 12-month period.  This figure represented an increase of 11% over the figures recorded for the previous year.  Containerized cargo accounted for 72.5% of the port’s total throughput.  General and bulk cargo volumes were down from the previous year, showing a drop of 10% and 7.8% respectively.”

9.  Porter, Janet. “Lykes service boost.” Lloyd’s List on the Web 05 September 2000. 07 March 2001  .

“Lykes Lines, which is joining up with the Grand Alliance when its present arrangement on the Atlantic with two New World Alliance members Mitsui OSK and APL expires, is predicting “significantly upgraded” services.  One of Lykes’ Atlantic loops has been plagued by problems because of engine faults on three of the four chartered ships earlier in the year.  Under the new arrangement, the Tampa-based carrier will increase weekly fixed day sailings from 16 to 38, operating mid-week and weekend sailings in five separate loops.  “The new services give our customers much more flexibility, with many more sailings a week and new port calls at Savannah in the US and Southampton, Hamburg and Rotterdam in northern Europe”, said Tony Bruno, commercial vice president at Lykes.”

10.  McLaughlin, John. “Savannah sets cargo record.” Lloyd’s List on the Web 15 September 2000. 07 March 2001  .

“Port of Savannah handled a record seven million tons of container cargo in its fiscal year ending on June 30, a hefty 12.2% up on fiscal year 1999.  Executives at the Georgia port will have been just as cheered over the past year, however, by the arrival of a number of leading ocean carriers, promising much for the future.  Two months ago Maersk Sealand shifted its TP2 all-water Asian service to Savannah from long-term South Atlantic rival Charleston.  The move is expected to add an immediate 20,000 containers to Savannah’s workload.  It could also pave the way to a more substantial relationship in the future, with ow going through the same selection process for a South Atlantic hub as it recently completed for the North Atlantic and the west coast.  Savannah is apparently in the frame along with Charleston, its larger neighbour to the North — Maersk Sealand executives have described the shift of TP2 as a way of testing Savannah’s efficiency — though shallow channel depths look to be a significant obstacle to its winning out in the race for the carrier.  As with the selection of New York on the north Atlantic and Los Angeles on the west coast, there will also be concern that the whole process is simply a ploy to drive down prices among ports desperate to win the biggest customer on the water.  Savannah is moving to address its main weakness, nonetheless, with plans on the drawing board for a deepening of the Savannah River Federal Navigation Channel from 42 to 48ft, though completion of the project is still years away.  Among other big gains this year, Evergreen chose Savannah as the South Atlantic port of call for its new weekly service between the US east coast and the Far East. The service, inaugurated in July, looks likely to bring a further 20,000 containers to the port.  CMA-CGM, China Ship- ping Group and P&O Nedlloyd are also routing their new weekly service between Asia, the Caribbean and the US east coast through Savannah.  Those new services look set to boost volumes considerably through the coming year. As for fiscal 2000, the rise in container volumes — a jump of 11.1% in terms of teu to 845,408 teu from 760,785 teu last year — contributed to a 5.4% rise in total cargo passing through the port, to 9.6m tons.  As container volumes were surging last year, however, general and bulk cargo tonnages were slipping. General cargo volumes slipped 10% on 1999 levels to 1.5m tons, while bulk cargoes fell 7.8% to 1.1m tons.  Among other infrastructure projects now in the pipeline, the port will also begin construction of an eighth container berth next year, adding 1,700ft of berth and more than 80 acres to the terminal area.  It is also moving ahead with a 150-acre container transfer facility, providing customers with rail access to the midwest and the Gulf coast in three days or less, with the first phase due to be completed early in 2001.”

11.  Porter, Janet. “Wave of confusion over CSCL Atlantic bid.” Lloyd’s List on the Web 15 January 2001. 07 March 2001   .

“Plans by fast-growing China Shipping Container Line to enter the Atlantic trades within the next few months are creating considerable market confusion amid uncertainty about what exactly the Shanghai carrier has in mind.  All that is confirmed so far is that a fortnightly shuttle will start in April, linking Naples, Genoa, Fos, Valencia, New York, and Norfolk.  The carrier will deploy two ships of about 2,000 teu, according to China Shipping’s European representative Eduard Winkelmann. Provisional plans to also call at Algeciras have been dropped.  However, the American Shuttle service is only intended to last a couple of months, after which China Shipping’s existing service between Asia and the Mediterranean will be extended to cover the US east coast as well from June.  Speculation that the Chinese carrier would be partnering CMA CGM which now charters slots from Maersk Sealand across the Atlantic have been soundly rejected.  China Shipping appears to have drawn up a port rotation before finalising details such as partnerships, slot charter arrangements or ship deployment.  The carrier has indicated that it wants to serve Antwerp, Rotterdam, Bremerhaven, Felixstowe, New York, Norfolk and Savannah.”

12.  “Panama Canal won’t compete with Suez.” The American Journal of Transportation on the Web 3 April 2000. 24 August 2000. 

“About 85 percent of trade between the US and East Asia uses West Coast ports such as Los Angeles but some trade is expected to shift to the east coast according to the American Journal of Transportation.  All-water trade between East Asia and the US East Coast rose to 979,000 teu in 1999 from 591,000 in 1993 and should top 1m in 2000.”

13.  O’Brien, Dennis. “Channel depth is a plus for Maersk Sealand.” The Virginian-Pilot 25 March 2001.02 April 2001

“As the largest steamship line and third-largest port operator in the world, Maersk Sealand knows a thing or two about economies of scale.  For instance, the Danish company knows that by building ships big enough to carry 6,000 shipping containers, its per-container profit will be substantially higher than paying the fuel, crew and other operating costs for two 3,000-container vessels to move the same amount of boxes.  Most ship lines understand this and, like Maersk Sealand, are building increasingly larger vessels.  But while the big ships make economic sense, very few ports can handle these ``megaships.''  Hampton Roads is one of those ports. There are only two others on the East Coast -- Baltimore and Halifax, Nova Scotia.  ``We have a naturally deep harbor,'' said John Simon, port ombudsman for the Hampton Roads Maritime Association.  ``We don't have bedrock, we have a soft bottom, and we don't silt very fast.''  That natural depth is a key reason why Maersk Sealand has its eye on developing a 568-acre Portsmouth tract known as the Cox property.  The company is expected to announce in a few weeks that it plans to build a major marine terminal on the land, which has one mile of frontage on the Elizabeth River.  Maersk Sealand has made a point in recent lease negotiations that ports must have -- or plan to have -- shipping channels at least 50 feet deep if those ports want to continue to enjoy Maersk Sealand's considerable business.  Some ports, such as Charleston, are scrambling just to dredge to 45 feet. Others, such as New York/New Jersey, plan to dredge to 50 feet by 2009. But Hampton Roads is already there -- outbound, at least; the $30 million inbound-channel dredging to 50 feet is expected to be completed in two years.  The port could be at 55 feet, its authorized depth, two years after that -- just in time for a new Maersk Sealand marine terminal to open in Portsmouth.  It is hard to predict the economic effect of a new terminal, since no details of the plans are available.  But for perspective, back in 1998, when Maersk Sealand sought proposals for its northeastern hub port, Maryland was willing to spend $200 million to build a marine terminal for the company. Why? Because, Maryland's transportation secretary estimated, the terminal could have generated 3,000 jobs and $5.5 million annually in state and local taxes.  But Maryland was the runner-up. The winning offer came from New York/New Jersey.  The Port Authority of New York/New Jersey offered to shoulder $30 million of the project's cost -- Maersk will pay $240 million -- and New Jersey will pay $121 million to cover Maersk Sealand's dredging bill for the terminal.  Maersk Sealand signed a 28-year lease for the new terminal,in Port Elizabeth, N.J.  The lease will expire in 2027, or sooner if the port does not meet certain provisions of the contract -- such as a 50-foot channel.  New York/New Jersey is hoping to have that 50-foot channel ready in eight years. In the meantime, Maersk Sealand is building up its fleet of mega-ships.  The company's 250-ship feet includes 25 ships capable of carrying 6,000 or more containers -- including the biggest container ship in the world, the Sovereign Maersk. Built in 2000, the ship is capable of carrying more than 6,600 containers and has a 47.5-foot draft.  The company is building another 6,600-container vessel this year, and intends to build four next year.  With more superships in its fleet, Maersk Sealand will need more capacity to handle them. New York/New Jersey hopes to have its 50-foot depth dredged by 2009, but at present, only Hampton Roads, Baltimore and Halifax have the channel depth to accommodate the big ships.  Baltimore has the 50-foot channel, but the port is a 12-hour sail from the ocean -- either up the Chesapeake Bay, or through a canal from the Delaware Bay.  Halifax has a 60-foot-deep channel and is the closest East Coast port to Europe.  But it is a long way from the Panama Canal and other points south.  Hampton Roads is not a perfect quick fix, but it does appear to have its advantages, especially over two other key ports to the south -- Charleston, S.C., and Savannah, Ga.  After the contest for a Northeast hub, Maersk Sealand pitted Charleston against Savannah to see which port wanted to become the Southeast hub, which had been Charleston.  It quickly became clear that there would plenty of problems in naming either port a hub.  Savannah faces massive environmentalist and political opposition to dredging plans that, if approved, would lower the channel from 42 feet to 48 feet. Lawsuits have already been filed opposing the dredging.  Charleston, in the process of dredging from 42 feet to 45 feet, faces massive environmental and political opposition to expanding its terminal space.  If Charleston had any doubts that Maersk Sealand was ready to jettison it, they were erased in June, when Maersk Sealand stripped its Asia service from Charleston and sent the 20,000-container-per-year trade to Savannah.  The hub port contest ended in January, when Maersk Sealand extended its lease in Charleston for four years -- until 2005.  The company said then that it would consider using the next four years to review its strategy for the region. It also indicated future service could hinge on which of the two ports could get to 50 feet first.  Neither will do it by 2005, if ever.  Despite its distance from the ocean, Baltimore does have much to offer Maersk Sealand.  In addition to the 50-foot channel, Baltimore, like Hampton Roads, is strategically located for multiple trade lanes.  Maersk Sealand strongly entertained the idea of making Baltimore its East Coast hub. Maryland's offer to build a 330-acre, $200 million terminal for Maersk Sealand was very tempting, but after a year of deliberating, the company picked the New York/New Jersey for its megaport in 1999.  In the end, Maersk Sealand said the port lacked adequate access to CSX and Norfolk Southern rail service, a similar complaint the shipping giant had with Hampton Roads.  Whatever rail service materializes for the Cox property would be built from scratch, which in reality is cheaper than having to remove and replace or otherwise significantly alter existing rails.”

14.  Buntain, Rex. “Proposed facility has $400M price tag.” Island Packet 17 March 2001. 02 April 2001.

Jake Coakley, regional vice president of Stevedoring Services of America (SSA), anticipates cranes will line the Savannah River in Jasper County in about three years.  With ambitious plans and the backing of the nation's largest stevedoring company, Coakley will, if all goes as planned, oversee a $400 million project that will transform a deserted span of dredge spoil along the river into one of the largest deep-water terminals on the nation's Eastern Seaboard.  SSA has grandiose plans for the South Atlantic International Terminal: nine cranes at a cost of about $10 million each; 10 miles of road and rail just to reach the site; a paved area the size of 323 football fields and a thousand semitrailer trucks a day, hauling the fruits of the world's labor. -- all within shouting distance of Bluffton.  Four major stevedores, including Stevedoring Services of America, operate out of the Georgia Ports Authority at Garden City.  Like the estimated size of the proposed container terminal, it also has about 500 acres of paved surface.  Unlike the Garden City site, SSA would own and operate the Jasper County site alone, doing the same business volume of the four major stevedores at Garden City.  Jasper County officials have commented that the opening of the new container terminal may lead to U.S. 17 being four-laned from the Talmadge Bridge to Hardeeville.  For the Lowcountry, the potential of the South Atlantic International Terminal means commerce, contractor bids and construction jobs, along with more than 250 full-time jobs when the terminal is completed and another 500,000 man-hour, union-scale jobs on shipping days annually, Coakley says.  What his company is banking on is the continued growth of the container business, which has grown at a rate of about 12 percent in Charleston and Savannah over the past decade.  "If you take the growth in the South Atlantic region and project it out over 10 years at, say, 8 percent, we're going to have about 120 (percent) to 160 percent more business than we have today," Coakley said.  The name we use is the South Atlantic International Terminal and that's because we're really looking at this as a regional growth center, to take the growth that's going to happen here in the next 10 years and absorb it.  "The Port Authority at Garden City has about 500 acres paved and about 85 acres available to pave and then they're constrained. In Charleston, the terminals happen to be down in the city.  The roads already are crowded, and they don't want any more growth in that area unless there are some infrastructure changes.  So they're bound by natural boundaries of what's already there and the growth patterns.  "There are only a few places that have sufficient (deep) water," Coakley said, "Halifax (Nova Scotia), Norfolk (Va.) and here.  You need about 50 feet of water for the new, larger ships ... and the infrastructure to sustain them and not burden the local populace.  One factor that has supporters of the proposed South Atlantic International Terminal excited is the pedigree of Stevedoring Services of America.  SSA was ranked 260th by Forbes Magazine in its annual listing of the top 500 American private companies in 2000.  The Port of Savannah now handles about 1 million TEUs annually.  SSA handles about a third of that cargo, which amounts to about 5 million tons of cargo, plus an additional 300,000 tons of bulk cargo, such as super sacks of clay and paper.  One of the reasons SSA covets the Jasper County site, which encompasses 1,776 acres and will include 4,800 feet of berth along the Savannah River upon completion, is because of its deep water and the challenge of ports today to modernize their equipment and deepen their waterways.  Ships now capable of hauling more than 6,700, 20-foot containers are being used.  Those ships require deeper water and better loading equipment.  Coakley says the latest soundings he's seen at the site were 54 feet, but the river gets shallower downriver and would have to be dredged. SSA would split the cost of dredging the river with the federal government at depths greater than 45 feet.  Additionally, container movements are expected to increase 60 percent in the next four years and 200 more container terminals will be needed to meet the demand, according to a 1999 study by Drewry Shipping Consultants.  That, more than anything, Morelli said, is the impetus behind SSA's pursuit of the Jasper County site.  He said the number of TEUs in the Charleston-Savannah region is expected to increase from 2.4 million to about 5.4 million in the next decade.  "What we're really looking at building the new terminal for is for future expansion," Coakley said.  "It will take us three years to build it so by the time we get it built, there will be another 500,000 containers available that won't have a home in the South Atlantic region."  The port authorities in Charleston and Savannah haven't had much to say about the proposed Jasper site, but officials reportedly were surprised when they first learned of SSA's plans.  Coakley said SSA would continue to do business at its Garden City location and that the port authorities should not be concerned because projections point to an increase in container traffic. He also said developments at either port, such as deepening the channels to accommodate larger ships, would not affect SSA's desire to proceed with the Jasper County project.  SSA has signed a memorandum of understanding with Jasper County as the first step in bringing the project to fruition. The agreement was made after Jasper County Administrator Henry Moss brought the parcel to SSA's attention after he had tried to interest the South Carolina and Georgia state ports authorities, with no success.  Jasper County moved to purchase the land from the Georgia Department of Transportation, which balked at selling it.  Jasper County then sought to acquire the land through condemnation, and the Georgia Transportation Department sued to stop the county. The issue now is in state and federal courts.  But SSA and Jasper County officials are confident they will prevail in court. Because the site is on a dredge spoil area, where the U.S. Army Corps of Engineers for years has been dumping slurry, a mixture of water and mud dredged from the river, and because it is miles from any inhabitants save wildlife, SSA officials aren't anticipating overt opposition from environmentalists.  Across the river near the proposed site is a titanium dioxide chemical plant and a liquefied natural gas facility.

15.  Porter, Janet. “Lines forge new Med-US route.” Lloyd’s List on the Web 04 January 2001. 07 March 2001  .

“P&O Nedlloyd, Hapag-Lloyd and Zim Line are to inaugurate a service between the Mediterranean and US east and Gulf coasts next month.  The three partners will each contribute one ship of around 1,500 teu initially on a fortnightly rotation, but the service will be upgraded to weekly within the next three to six months, with a six-ship deployment.  The new service loop will add about 7% or 8% extra capacity to the route which has seen strong westbound growth in recent months.  This partly reflects an increase in US sourcing from the Mediterranean, especially Turkey, Israel and Italy.  The port rotation will be Malta, Salerno or Naples, La Spezia or Genoa, Fos, Barcelona and Lisbon in Europe, and New York, Charleston or Savannah, Miami and Houston. Terminal negotiations will be concluded soon.”

16.  Porter, Janet. “Gulf Africa Line adds ship.” Lloyd’s List on the Web 21 November 2000. 07 March 2001  .

“Gulf Africa Line said it is introducing a fourth vessel to its fleet, enabling the frequency of service to a sailing every three weeks.  The line operates a service between the southern Africa and the US gulf ports of New Orleans, Houston, Mobile, and Savannah.  The additional ship is the brand new Le Li, a multipurpose containership with capacity of 1,089 teu.”

17.  McLaughlin, John. “CMA CGM set to conquer Atlantic.” Lloyd’s List on the Web 07 November 2000. 07 March 2001   .

“Fast-growing French container shipping company CMA CGM celebrated the launch of its new transatlantic service at a party in Newark last week, but true-to-form company executives were already talking about services still to come.  CMA CGM’s rapid expansion and reconfiguration over the past two years has seen it leap into the top 10 in the ranking of global container carriers, and the Atlantic represents the last major hole in its global portfolio of services.  CMA CGM, which already has a direct Europe-South America service, would launch a new service linking the ports of New York, Norfolk and Savannah with the east coast of South America through Kingston, where it has a long-standing presence.”

18.  Porter, Janet. “CMA CGM plans bid to join Taca.” Lloyd’s List on the Web 04 September 2000. 07 March 2001  .

For CMA CGM, the Atlantic represents the last major gap to fill in its rapidly expanding global network, although the line already has a presence through its round-the-world service.  Maersk Sealand is co-operating with the New World Alliance on the Atlantic from the end of next month, and CMA CGM will have access to three transatlantic service loops.  The French line has negotiated 300 slots per week on the service between Felixstowe, Rotterdam, New York, Norfolk, Charleston and returning via Charleston, Norfolk, New York and Felixstowe that will be operated by New World Alliance members Mitsui OSK, APL, and Hyundai Merchant Marine.  A further 150 slots will be available on the south Atlantic string calling at Rotterdam, Bremerhaven, Felixstowe, New York, Charleston, Houston, Savannah, Norfolk and Rotterdam.  CMA CGM will also have another 150 teu slots per week on Maersk Sealand’s pendulum service between Asia, the US and Europe, with the French line serving its customers through direct calls at Le Havre, Felixstowe, Bremerhaven, Rotterdam, Halifax, New York, Norfolk, Charleston, Port Everglades and eastbound from Miami, Charleston and New York to Le Havre.  The new partnership between CMA CGM and Maersk Sealand consolidates a deepening relationship with the Danish carrier.  The two lines are already working together on Caribbean services and are about to apply to the Federal Maritime Commission for approval of a five months agreement on the Pacific.”

19.  McLaughlin, John. “Green light for Maersk Pacific’s LA lease.” Lloyd’s List on the Web 14 August 2000. 07 March 2001  .

“The Los Angeles Board of Harbor Commissioners this week approved the terms of the 25-year lease negotiated with Maersk Pacific, under which the world’s largest carrier will develop the port as its primary West Coast hub.  The deal awaits only the assent of the Los Angeles City Council before coming into effect.  Under the terms of the pact, Maersk Sealand will occupy a 485-acre site at Los Angeles, making the terminal the largest proprietary container facility in the US.  The so-called Pier 400 project has been under development for some years, and construction on the terminal has just begun.  The $466m project will be carried out in two phases. A first stage will see the development of a 316-acre site, to include a 40-acre on-dock rail facility, scheduled for completion in August 2002.  The second stage will add a further 167 acres by April 2004.  Los Angeles won the battle for Maersk Sealand’s favour in October last year, but only after a fierce struggle with arch-rival Long Beach, where the carrier was then based.  Long Beach had offered a similarly sized facility on land formerly occupied by a US Navy base.  Though Long Beach is still comfortably the largest container port in the US, handling 4.4m teu in 1999, compared with 3.8m teu at Los Angeles, the departure of Maersk Sealand for its neighbor and rival could see current rankings reversed.  The selection of Los Angeles for the West Coast was Maersk’s second major decision on a US hub, following its previous choice of New York and New Jersey over Baltimore and Halifax as its North Atlantic load centre.  It is going through a similar process on the South Atlantic, with Charleston and Savannah leading contenders.  In each case, the company has successfully played port rivals off against each other, reinforcing the view that the surviving mega-carriers will be even more securely in the driver’s seat in negotiating with ports.”

20.  Porter, Janet. “Zim renews links with Savannah.” Lloyd’s List on the Web 18 July 2000. 07 March 2001  .

“Israeli carrier Zim has renewed its strategic alliance with the Port of Savannah, according to the Georgia Ports Authority.  Zim has been calling at Savannah for more than 28 years and has moved more than 150,000 teu through the port in the past year.  The two sides have just signed a new five-year contract.”

21.  Hensel, Bill Jr. “Deeper and deeper.” Journal of Commerce on the Web Jan 2001. Jan 2001 <http://joc.com>.

“Charleston, which is trying to stay ahead of rival Savannah, has received authorization to deepen its 42-foot channel to 48 feet.  Ship lines are eager to encourage competition among ports because users pay only a fraction of the cost of dredging.”

22.  “Savannah aims at million container throughput target.” Lloyd’s List on the Web 12 December 2000. 13 February 2001  .

“In common with so many of its rivals along the US east coast, the Georgia port of Savannah has done more than tolerably well out of the continuing US economic boom, and the surge in global trade it has helped to fuel.  In its fiscal year 2000, ended on June 30, Savannah handled a total of 9.6m tons of containerised, general and bulk cargo, 5.4% up on fiscal 1999.  Its performance in its core area of containers was considerably more impressive, however, with Savannah recording a 12.2% increase in tonnage over the period to 7m tons, and an 11.1% increase in teu, to 845,408 from 760,785 the year before. This year, port executives believe 1m teu is a realist target.  Fiscal 2000 was Savannah’s 12th consecutive year of container growth, but though it would be wrong to suggest that port executives were blasé about those regular increases in throughput, it remains likely that what really fired their enthusiasm last year was less the cargo figures than the new customers who berthed at their facilities.  The first new arrival came in May, with the launch of the direct service between Asia, the Caribbean and the US east coast run by CMA CGM, China Shipping Group and P&O Nedlloyd. The fixed-day weekly service operates nine vessels, ranging from 2,442 to 3,055 teu.  Two months later, Evergreen entered the picture, including Savannah among the ports of call for its new weekly service between the US east coast and the Far East. The service, including nine vessels with capacity ranging from 1,810 teu to 2,700 teu, will add 52 calls to the port’s annual total and an anticipated 20,000 containers a year.  Also in July, Maersk Sealand switched its TP2 service between the US and the Far East to Savannah from its great rival Charleston.  The weekly service includes 10 containerships with a capacity of 2,800 teu and will add a further 20,000 containers a year to Savannah’s workload. More importantly, it also allows the Georgia port to show what it can do as Maersk Sealand mulls its options for a new south Atlantic hub.  There are those who argue that Savannah is simply a straw horse, set up to wring concessions from Charleston, the predestined winner of this race for the mega-carrier.  Shallow depths alone would wreck Savannah’s chances, they argue, while Charleston, as the fourth-largest container port in the US and the largest on the US south east and Gulf coasts, is the obvious choice.  If that is the case, Savannah is doing everything it can to avoid the inevitable.  Its position as a major US east coast gateway to the Far East is improving all the time. As a port spokesman notes, a string of major retailers have recently announced plans to set up distribution centres in the Savannah area, or to expand existing facilities.  Most rely heavily on imports from Asia, in large part consumer goods.  Among the major retailers already shipping through Savannah to nearby distribution centres are Home Depot and Lowes, Pier 1 imports and Wal-Mart.  The Dollar Tree, KMart, Michael’s and Best Buy announced plans to set up new facilities this year.  And Wal-Mart provided a further boost with a recent decision to expand its 2m sq ft of warehousing space by a further 800,000 sq ft.  The spokesman says these distribution centres mainly serve retail operations east of the Mississippi.  Through them, Savannah reaches into the south-east, the south and midwest of the country, and has also begun to creep into the northeastern United States.  For all the expansion, Savannah has no real hurdles to clear as far as space is concerned, at least not yet.  This in turn gives it something of an advantage over crowded Charleston, which is now engaged in tortuous discussions over how and where to expand.  According to the spokesman, the principal Garden City container terminal “handles roughly 475,000 containers per year, with the terminal being 67% utilised.  ‘In effect, the terminal can easily accommodate another 234,000 containers before capacity is reached.’  Savannah also has plenty of land available for expansion.  It plans to use it.  Starting in June of next year, construction will begin on an eighth container berth that will add 1,700 linear ft of berth to the existing 7,726 ft as well as a further 80 acres of yard space.  The port will also buy in four new super post-panamax container cranes for the project, which will cost a total of some $100m.  He notes that, when combined with Savannah’s container berth number seven, the new berth will allow two 900-ft containerships to be worked simultaneously. The project is due to be completed by mid-2004.  If the space is there, however, the depths are not, or at least not yet.  The Savannah Harbour Navigation Channel has a present depth of just 42 ft, patently inadequate for the new generation of containerships now coming onstream.  The plan is to dredge the channel down to 48 ft, but that will take time.  Indeed, with the project still at the environmental permitting stage, it could be 2007 before it is completed, although port executives are clearly hoping it will be sooner.”

23.  “Latin America trade fueling resurgence of East Coast ports.” Cisneros News on the Web 26 June 2000 <http://www.cisneros.com>.

“U.S. trade with Latin America has grown almost as much as trade with Asia, and East Coast ports have captured the majority of that growth.  East Coast ports are enjoying a prosperity not experienced since the 1970s, when they lost their dominance in the U.S. container trades.  With the largest economies on South America’s Atlantic coast, the trend is set to continue.”

24.  Gray, Tony. “Box port growth ‘relentless’.” Lloyd’s List on the Web 7 November 2000. 13 February 2001  .  

“The relentless growth in world containerport traffic is set to continue for at least the next 15 years, according to a new report by Ocean Shipping Consultants.  The report, which offers two forecast cases based on more or less positive economic scenarios, notes that demand stood at 209.7m teu in 1999 — an increase of 142% over 10 years and 45% over five years.  Under the 276-page report’s higher Case I, demand is set to expand 61% to 337m teu in 2005, a further 37% to 462m teu in 2010, and 32% to 611m teu in 2015.  Even growth under Case II is impressive. Under this scenario, Ocean Shipping foresees a 47% increase to 307.4m teu in 2005, a further 30% to 400.5m teu in 2010, and 26% to 505.3m teu in 2015.  There is good reason for optimism on containerport demand. It has proven remarkably resilient even in economic downturns, the most recent example being the growth witnessed during the Asian crisis of 1998.  Indeed, east Asia has seen the most rapid expansion over the past 10 years, and its share of the world market rose from 37.7% in 1990 to 44.1% in 1999.  The report predicts that east Asia containerport throughput will expand by 54%-72% to 142.2m-158.9m teu between 1999 and 2005.  Further increases to 189.2m-220.4m teu and 243.2m-292m teu are forecast in 2010 and 2015, respectively.  Within east Asia, it is the southeast Asian region which is expected to experience the sharpest growth: 67%-88% to 52.9m-59.6m teu in 2005.

Ocean Shipping says that all markets are expected to participate in this region’s rapid expansion.  ‘Singapore will remain the principal regional hub port, but with growth of 30%-45% forecast until 2005, its share of the regional market is set to decline from 50.1% in 1999 to 38.7%-39.1% in 2005,’ the report comments.  Further decreases in Singapore’s share to 34.3%-34.9% in 2010 and 30.4%-31.2% in 2015 are anticipated.  North European containerport demand is forecast to rise 42%-47% to 40.8m-42.3m teu in 2005.  Thereafter, it is expected to increase a further 26%-31% to 51.4m-55.3m teu in 2010, and to 63.3m-71m teu in 2015.  Under the higher case, transhipment demand is forecast to rise by 54% to 7.73m teu in 2005, 10.53m teu in 2010, and to 14.18m in 2015.  Even the more moderate growth envisaged under Case II would result in “very positive” demand expansion of 48% to 7.41m teu in 2005, with further development to 9.92m teu and 12.98m teu in 2010 and 2015, respectively.  In North America, box throughput is expected to increase 35%-42% to 38.3m-40.5m teu in 2005.  Thereafter, growth to 48.6m-52.6m teu in 2010 and to 58.3m-67m teu in 2015 is forecast.  The report comments: “Throughput is expected to increase most rapidly on the Pacific coast, due to the dynamism of imports from the Far East.  ‘The Atlantic south range will also benefit strongly as the crossroads of east-west and north-south traffic, while continuing growth in Nafta trade will boost volumes on the Gulf coast.’  Although growth in the Atlantic north range is likely to lag other regions, the report says these ports will benefit from expansion in both transatlantic and more recently developed all-water trades to and from the Far East.”

25.  McLaughlin, John. “Maersk stays on at Charleston but still seeks long term solution.” Lloyd’s List on the Web 18 January 2001. 07 March 2001  .

“Maersk Sealand duly signed a new four-year contract with the Port of Charleston on Wednesday that will keep it at the South Carolina port for another four years.  But company executives again reiterated that the search for a long-term South Atlantic load centre goes on, and that Savannah remains in the frame along with Charleston.  Tony Scioscia, president of Maersk Container Service, remarked that the new deal "will allow us the time to perform a comprehensive study of the South Atlantic market to determine ourfuture port strategy to serve the region.  We are keeping our options open in Savannah and actively evalutating all scenarios."  He added that, as part of that process, the carrier will study "the growth of major distribution centres, the availability of port infrastructures to handle the ships of the future which require 50 harbour depths, the landside access to consumer markets, terminal productivity and cost structures - all key criteria necessary to manage successfully the long-term growth of world trade volumes over a 20-30 year period.”

26.  Porter, Janet. “Atlantic alliance plans set.” Lloyd’s List on the Web 14 August 2000. 07 March 2001  .

“Member of the New World Alliance will all gain extra capacity on the Atlantic when they start a three-string operation in partnership with Maersk Sealand later this year.  APL, Mitsui OSK Lines and Hyundai Merchant Marine are ending existing arrangements and plan to introduce a new schedule of services in mid-October.  Maersk Sealand will operate two of the strings, with the New World Alliance supplying ships in the third.  The four carriers unveiled their joint venture plans earlier this year and have now finalized ship deployment and ports of call.  CMA CGM, which wants to enter the Atlantic trades, is in discussion with Maersk Sealand and the alliance lines about taking space on the new services, but has not yet concluded these negotiations, said one of the carriers involved.  APL and Mitsui OSK will stop chartering space from Americana Ships, which managed Lykes Lines and TMM Lines, when the new agreement with Maersk Sealand begins. However, Hyundai will continue its present arrangement with Mediterranean Shipping Co until the end of the year, and run the two services in tandem for a couple of months.  The weekly Atlantic Pacific Express service will be operated by 12 ships of 3,000 teu capacity provided by the New World Alliance which is extending its existing service string across the Pacific to the US east coast with the addition of three extra vessels.  The service will call at Charleston, Norfolk, New York, Rotterdam, Felixstowe, New York and Norfolk before returning to the Pacific. A French port may also be added.  The Atlantic South string, deploying five of the Maersk Sealand Atlantic class ships previously operated by the former Sea-Land, will serve Rotterdam, Bremerhaven, Felixstowe, Charleston, Houston, Savannah and Norfolk.  The Atlantic North service, provided by Maersk Sealand, is also an extension of a transpacific service.  It will call at Le Havre, Felixstowe, Rotterdam, Bremerhaven, New York, Norfolk, Charleston and Miami westbound, and Miami, Charleston and New York eastbound. Eleven ships will be deployed.”

27.  “Savannah pendulum.” Lloyd’s List on the Web 21 July 2000. 07 March 2001  .

“Georgia Ports Authority said Maersk Sealand’s recently inaugurated TP2 service is expected to carry in excess of 20,000 teu annually through the authority’s Garden City Terminal in the port of Savannah.  The TP2 pendulum service calls at Far East ports and ports on both west and east coasts of the US via the Panama Canal.”

28.  “International: Boxships: Favorable rates for Lykes quartet.” Lloyd’s List on the Web 15 March 2000. 06 March 2001  .
LYKES Lines has negotiated a favorable charter rate for the four ships deployed in its new service between the US and Africa that began earlier this month.  Although the containership charter market is rallying, the steep recovery has not yet spread to smaller ships.  Broker reports indicate that Lykes is paying Dollars 6,500 a day for the 930 teu Richmond Bridge, Kew Bridge and Tower Bridge for six months with an option for a further six months.  These ships have been renamed the Lykes Victor, Lykes Striker and Lykes Leaderrespectively.  Together with the Lykes Flyer, formerly Kariba, the four multipurpose ships are operating in the new service that replaced two loops that Lykes hadbeen offering in conjunction with Safmarine and Mediterranean Shipping Co.  The charter rate compares with a figure of Dollars 7,500 a day obtained by the Tower Bridge for a single round voyage last October and rates roughly parallel to the amount Lykes is paying secured by sister ships late last summer.  The market firmed sharply after that, dipped slightly late last year, but has since resumed its upwards charge.  However, the strength has largely been confined to ships in excess of 1,500 teu capacity, a point that has worked against Lykes on the North Atlantic where it has had difficulty finding replacements for two ships temporarily removed from its North Atlantic Sprint service for engine repairs.  But rates for smaller tonnage have not followed suit.  The ships hired by Lykes for its new service that began a fortnight ago with the first southbound sailing are between six and 10 years old.  The port rotation is Cape Town, Durban, Salvador, Veracruz, Houston, New Orleans, Mobile, Savannah, Baltimore, Abidjan and Cape Town.”

29.  Shuster, Bud. “Ocean Shipping.” World Wide Shipping Oct/Nov 1999

“US container trade has nearly tripled in the past 20 years from 48 to 137 million tons.  US container trade is projected to more than double again in the next 20 years.  US maritime transportation system moves over 2 billion tons of foreign and domestic cargo annually, contributing $742 billion to our economy.  Great containerships of the world each carry over 6,000 TEUs, requiring ports with depths of about 50 feet.  Six of America’s 10 largest container ports which handle 80% of the US container traffic have depths less than 50 feet.  Giant ships are increasingly diverting to ports in Canada and Bahamas.  American jobs are in jeopardy and the increased cost of shipping US products overseas puts jobs at risk.  US inland waterways suffer from outdated ports and harbors and an antiquated system of locks and canals.”

30.  Koenig, Robert. “Hapag-Lloyd deploys new 4,900-TEU ship in trans-Atlantic.” Journal of Commerce on the Web 28 August 2000. 05 March 2001 <www.joc.com>.

“Hapag-Lloyd AG, taking another step to build up its container capacity, today put its latest new container ship into service at Pusan, South Korea.  The 4,890-TEU Singapore Express, built by South Korea's Hyundai Heavy Industries, has a maximum speed of 24 knots.  It is 970 feet long, 106 feet wide and can carry 67,000 tons of cargo.  Guenther Casjens, who heads Hapag-Lloyd's liner shipping division, said the Singapore Express is the fifth of seven 4,900-TEU container ships that the German carrier plans to deploy to help meet rising global demand for container capacity.  "Our capacity planning assumes that global container traffic will grow by between 6% and 8% a year," Casjens said.  "In this year alone, we will place seven new container vessels in service."  Hapag-Lloyd's next Korean-built container ship, the Rotterdam Express, is scheduled to be christened in Rotterdam on Sept. 18.  The Singapore Express will join the Grand Alliance's Pacific-Atlantic Express service (PAX).  The service links Europe with the North American east and west coasts, as well as Asia, with 13 ships.  In its worldwide liner service, Hapag-Lloyd offers seven weekly departures between Europe and Asia, as well as on Pacific routes between Asia and North America.  In addition, the line offers 11 weekly connections across the North Atlantic, as well as other services to Australia, Latin America and the Indian subcontinent.”

31.  Dupin, Chris. “NOL earnings soar in first half.” Journal of Commerce on the Web 22 September 2000. 27 February 2001 <www.joc.com>.

“APL said it increased volume and revenue in all regions: the Americas, Asia-Middle East and Europe.  It added a Central America service, a West Asia Express and a Singapore-West Australia service during the period.  We have not added capacity for the past three years and in the meantime trade has grown," Jacobs said.  "So, to meet the growing transportation needs of our customers and also to better position us for the future we have taken steps to long-term timecharter, for a minimum of five years, 17 new container ships."  The ships will range in size from 2,500-5,500 TEUs and will join the fleet over the next two years.”

32.  Barnard, Bruce. “P&O Nedlloyd records best quarterly financial/traffic performance.” Journal of Commerce on the Web 16 November 2000. 16 November 2000 <www.joc.com>.

“P&O Nedlloyd, the AngloDutch container shipping line, today unveiled its best quarterly financial results and biggest cargo volumes since it began trading at the beginning of 1997.  Total traffic rose to a quarterly record of 786,700 TEUs, up 8% on the year and 3% higher than the previous three months, largely reflecting the acquisition of Farrell Lines, the US carrier, in July.  Average revenue per container rose was 5% ahead of the previous quarter and was also 5% higher than for the third quarter of 1999, partly the result of an improved cargo mix with increased volumes of higher rated freight on the dominant legs of the key trades.  The company said the market is continuing to experience a strong upswing and sounded bullish for the medium term.  Looking ahead, the supply of new capacity is expected to remain broadly in line with demand for at least the next two years although there may as usual be some short term fluctuations on specific trades.”

33.  “Devaluation brings no real improvement.” Lloyd’s List on the Web 17 November 2000. 13 February 2001  .

“Container terminal overcapacity in Santos has been aggravated this year by the failure of Brazil’s exporting industry to take advantage of the maxi-devaluation of the real.  The much-vaunted boom in container volumes that devaluation was expected to bring has simply failed to materialise.  The 70% devaluation of the national currency against the dollar since the beginning of last year has highlighted Brazil’s inability to export value-added products. At the same time commodity exports have been battered by weak prices worldwide.  Container volumes at Santos, Brazil’s largest port, are this year showing only minimal signs of growth compared with recession-struck 1999, according to the port authority.  The 6% increase for the year to mid-October is in stark contrast to predictions of a boom by private operators and the government’s stated intention of achieving $100bn in exports by 2002 — a target which now looks risible when around half this value was achieved last year.  The poor performance in the value-added industry comes despite the strong rebound of the Brazilian economy. Industrial output is growing rapidly, but almost all this new business is being absorbed by the domestic market.  According to the most recently released figures from Santos port authority Codesp, the devaluation seemed perversely to have led to an increase in imports rather than exports.  In the January to August period, import tonnage was up around 10% while exports were down by around the same amount, largely due to steep falls in sugar export volumes, the principal cargo for Santos. Soybean exports, on the other hand, were up significantly.  The lack of strong growth in the container industry is bad news for newly installed private terminal operators, which have invested millions of dollars in infrastructure in the port.  Increases in capacity and efficiency have not been matched by increases in throughput, and the net result is little or no profit.  This trend was confirmed by Wady Jasmin, president of one of Brazil’s largest operators, Santos Brasil. The company initially predicted profits this year but has put back its target date by 12 months.  ‘I don’t think we will make a profit this year,’ Mr Jasmin told Lloyd’s List.  The Santos terminal handled 210,000 containers last year and is targeting 216,000 containers for 2000.  Forty-foot containers now account for around 40% of all throughput.  Lower than expected growth could also be behind signs of strain between another of the main operators in Santos — the Libra terminal — and the port authority Codesp.  The two parties are in dispute over the infrastructure investments the company is contracted to make. Legal manoeuvrings are expected to be lengthy.  Overcapacity will be aggravated further this year by the arrival of another new participant in the Santos market, the Teconti Denver terminal.  ‘Terminals are not happy because the quantity of boxes they expected simply has not materialised,’ said port users’ association president António Carlos Branco.  One operator to have reported gains over the last year is Rio Cubatão, the joint venture company belonging to Argentina’s International Trade Logistics and Brazilian logistics firm Columbia.  The company, which has taken advantage of its location outside port confines, has beaten expectations and now claims to have captured 20% of the Santos container market.  Rio Cubatão, a relative newcomer to Santos, is regularly handling between 10,000 and 12,000 containers a month, reports Fabian Kon, general manager at the Buenos Aires sister terminal Exolgan.  While still only approximately half the Exolgan volume, Cubatão’s performance nevertheless is at the top end of forecasts.  ‘Cubatão has performed better than our expectations,’ said Mr Kon. ‘We have put the same people in Brazil that we had here and have the same software in place.’  Meanwhile, Codesp is continuing with its policy of offloading terminals on to the private sector.  During November two fertiliser terminal concessions are due to be auctioned on the Rio de Janeiro stock exchange.  Concessions will be awarded according to the volumes the potential concessionaire commits itself to moving and the rates it promises to offer users, says Codesp.  Investment levels will be decided by the bidder, which can participate either alone or in consortia.”

34.  “Plans for super-large ships such as Samsung Heavy Industries' 8,770 TEU-ship will intensify industry competition.” Informare on the Web 09 March 1998. 27 February 2001 <http://www.informare.it/news/review/1998/st0320.asp>.

“Paradoxically, the 8,000-TEU containership is arriving on the scene when it would appear that the liner shipping industry faces a period of severe over-tonnaging, with freight rates under pressure, and the industry itself undergoing what is either a shake-out or consolidation, depending on one's point of view.  The TEU capacity of the largest boxship new buildings has doubled every decade since the 1960s.  In the '60s, a typical capacity was 1,000 TEU, the '70s brought 2,000 TEU ships, the '80s saw ships of between 3,000 and 4,000 TEU and now, the end of the '90s is bringing ships of 6,000 TEU with the physical capacity to carry 8,000 TEU.  According to a US Corps of Engineers study, by the end of 1999 there will be 302 vessels of 4,000 TEU or more in service with a design draft in excess of 40ft.  They will account for 34 percent of the world's box ship fleet capacity, but just 18 per cent of the hulls.  From the shipowner's viewpoint, the problem with these optimistic projections is that supply of shipping capacity has all too often outstripped demand.  Owners, in general, don't like to report overcapacity, seeing it as giving shippers yet more leverage to demand rate reductions.  There has recently been sufficient overcapacity in the market to force the industry to seek efficiencies that, ironically, contribute to the over-tonnaging.  The new super-large containerships are one manifestation of this, offering significant economies of scale, especially at current new building prices.  A German study of container transportation systems of the future, released in November last year estimates the cost of the 8,000 TEU ship at US$110 million (S$180 million) to US$120 million.  That may be wishful thinking by a group that would like to see such ships built in Germany.  On the other hand, suggestions that Maersk may have built its recent K-class ships for US$60-70 million each may be overly conservative.  Container shipping has been a key to the "globalization" of the world economy.  It is the availability of low-cost, reliable transportation that has permitted corporations to move the manufacture of goods to the lowest-cost production areas, and then to markets worldwide.  Overall, this has undoubtedly brought significant benefits to the world's consumers.  It has, however, proven tough on some displaced producers.  Achieving efficiency can be painful.  Some of that pain is now being felt in parts of the container shipping industry.”

35.  Bounds, Andrew. “Panama sets sights on second bridge over canal.” Journal of Commerce on the Web 10 August 2000. 05 March 2001 <www.joc.com>.

“Panama this spring said it was studying the feasibility of widening the canal to deal with ever-larger container ships.  Most ships being built to carry containerized cargo are already too large to transit the Panama Canal.  About 60% of the container ships ordered since January 1999 are post-Panamax, which means they're too wide and deep to fit through the canal's 110-foot-wide locks, which allow maximum draft of 39.5 feet.  Failure to provide bigger locks to accommodate these ships, and even larger ones on the drawing board, could choke the canal's long-term growth and undermine Panama's vision of using the canal to become an entre port for regional trade and logistics.”

36.  “America’s Ports: Gateways to Global Trade.” American Association of Port Authorities on the Web 19 Aug. 1999. 19 Aug. 1999 <http://www.aapa-ports.org/portfacts/americas%20ports.htm>.

“According to AAPA, the volume of imported cargo moving through U.S. ports will triple by year 2020, placing demands on shipbuilders, ship owners, U.S. ports, and federal government officials.  World fleet continues to expand in both size and capacity, and additions to the fleet are exceeding deletions.”

 37.  “Ports forced to stack containers.” Journal of Commerce on the Web 14 April 2000. 14 April 2000 <www.joc.com>.

“As waterfront land in major load centers such as Los Angeles-Long Beach becomes more expensive, conventional wisdom indicates that U.S. ports will follow the Asian model of stacking containers rather than storing the loaded boxes on chassis.  U.S. ports are grounding containers more than before, but terminal operators continue to resist the trend.  When they build new container facilities, shipping lines and stevedoring companies opt for mega-terminals with the hope that they can maintain wheeled operations.  While APL attempts to store its containers on chassis, it was forced to resort to stacking during the 1999 peak season.  Storing containers, especially loaded inbound containers, on chassis is the most efficient method.  The container and chassis are spotted at a designated location in the terminal, ready for the trucker to arrive and haul them away.  Storing containers on chassis, however, consumes vast amounts of land, and requires the purchase or lease of hundreds of chassis.  At major Asian ports, where waterfront land is very costly, wheeled operations basically no longer exist.  Containers are stacked five or more rows high to conserve space.  Asian ports therefore achieve container-per-acre utilization rates many times higher than U.S. ports.  Stacking containers, though, makes the terminal operation quite labor-intensive.  At West Coast ports, this stevedoring move costs about $60 per container.  When the trucker arrives, oftentimes several days later, longshoremen must locate the container, move other containers to the side and retrieve the box.  This adds about $40 to the terminal's costs.  With longshoremen averaging $100,000 a year, and crane operators often earning twice that amount, terminal operators say it is still cheaper to build large terminals and buy hundreds of chassis in order to remain wheeled, rather than to work out of a smaller terminal where stacking is required.  The challenge that terminals, especially those on the West Coast face as they seek to stay wheeled, is securing enough land for mega-terminals.  In Southern California, Maersk Sealand plans to build a 484-acre terminal in Los Angeles, and Hanjin Shipping Co. will build a 375-acre terminal in Long Beach.  When these facilities are completed in two to three years, those lines' existing terminals will be combined with adjacent facilities to form additional mega-terminals.  However, when that process is completed, the ports will be virtually out of land, unless they attempt to build more waterfront property through landfill.  Especially during the peak season, terminal operators are finding they have no choice but to stack containers.  As container volumes increase, terminals are looking for ways to stack the boxes higher.  Terminals also attempt to improve utilization of their facilities by running longer gate hours.  This constant juggling of labor and land costs is the price of operating a modern container terminal.  Marine terminal engineers say there will come a time when terminal size cannot be increased further without compromising efficiency.”

38.  Edmonson, R.G. “Panel: How constrained is US transportation? Very.” Journal of Commerce on the Web 14 November 2000. 14 November 2000 <www.joc.com>.

“U.S. ports need to improve their efficiency to handle the growth in cargo over the next two decades, according to M. John Vickermann, principal in VZM Transystems, a leading designer of port intermodal systems.  Vickermann told some 200 logistics practitioners at Transcomp 2000 that in the next 20 years, container freight will become the dominant mode of ocean carriage, and that traffic through U.S. ports is expected to double.  The bad news is that port facilities are not likely to grow fast enough to accommodate the new generations of ever-larger container ships, Vickermann said.  His observations were echoed by other panel members who spoke on rail, truck and air cargo problems during a session titled "How Constrained is the Freight Transportation of North America, one of three trade groups collaborating in the event.  There is a lack of available real estate for expanding facilities.  Ports may have used up all available space within a harbor's breakwater, or inland intermodal terminal space is too far away from population centers, or it's too expensive per acre to be cost-effective.  Already noise abatement curfews restrict the times that air cargo can leave the U.S. for European destinations, and the restrictions are likely to spread.  There is a need for local government and planning officials to expedite the approval process for new construction.  Taking too long to issue the necessary permits will prolong the congestion problems that carriers will face.  Vickermann said that improved data interchange between rail and ocean carriers can reduce the time it takes to move containers through a port. ‘If we can reduce the dwell time by half, we double our capacity without building anything,’ Vickermann said.”

39.  “GDP Grows at 5.2% Annual Rate, Significantly Faster Than Estimates.” Wall Street Journal on the Web 28 July 2000. 28 July 2000 

“Increased imports subtracted more than two percentage points from growth.  The trade deficit subtracted 1.5 percentage points from growth in the second quarter.”

40.  “Panama Canal won’t compete with Suez.” The American Journal of Transportation on the Web 3 April 2000. 24 August 2000. 

“The Panama Canal will not attempt to compete with the Suez Canal for giant "fifth generation" containerships, according to the authority that runs it.  Rodolfo Sabonge, director of corporate planning and marketing of the canal authority (ACP), said it would rather concentrate on developing the canal as a hub for different modes of transport trading between the Pacific and Atlantic oceans and North and South America.  The Journal of Commerce reports that 92 percent of the world's shipping fleet can pass through the canal's three sets of locks, but the trend towards bigger craft will erode that figure.  "The capacity of the world's fleet will double with big ships that are on order and most trade will want to move in those vessels because the costs will be lower," said Mr. Sabonge.  As a result, the canal's containerized traffic would grow at 2 percent a year compared with world growth of 8-10 percent.”

41.  Koenig, Robert. “Hapag-Lloyd Expects Sharp Growth in North Atlantic Container Traffic.” Journal of Commerce on the Web 15 June 2000. 24 Jul 2000 <http://www.joc.com>.

“Containerized cargo volumes on North Atlantic routes are increased sharply in 2000, especially in the westward traffic between Europe and North America.  Adolf Adrion, managing director of the Hapag-Lloyd Container Line, said that he expects 8% growth in container volume on the westward routes in 2000, and 6.6% increase in North Atlantic container volume in general.  Because container volumes are expanding so rapidly on the North Atlantic trade, Hapag-Lloyd and other members of the Grand Alliance plan to add more ship departures and expand their services, starting in August.  In fact, volumes have been so heavy over the past few months that some European exporters have had to wait longer than they wanted to ship their containerized goods to North America.  By using new and faster ships, and adding departure points, Hapag-Lloyd and its alliance partners are hoping to be more responsive to European shippers who are anxious to send their cargo westward.”

42.  Hand, Marcus. “APL outlines aggressive intra-Asian fleet expansion.” Lloyd’s List on the Web 24 August 2000. 05 March 2001  .

“Riding on the back of strong Asian trade growth, APL is planning to deploy up to 13 new ships in the region and double the size of its intra-Asian business.  “From an intra-Asian standpoint we have a very aggressive target of doubling our business over the next three years,” Dan McHugh, APL president for Asia and the Middle East, told Lloyd’s List.  The company’s growth in Asia will come by two routes: expanding dedicated intra-Asian services and main line Asia-Europe services that also carry Intra-Asian volumes.  APL is taking medium- and long-term charters on a total of 13 large containership new buildings, and is ordering a further four 2,500 teu ships over the next two years.  Most of these are earmarked for deployment on Asia trade lanes, with the exception of four 2,500 teu ships ordered from Aker MTW in Germany, which are expected to be deployed on Latin America trades.  APL will be chartering 10, 5,500 teu newbuildings ordered at Korean shipyards, and a further three 4,000 teu ships also constructed in Korea.  These services are: the Gulf Asia Line Express between the Gulf and Singapore, the West Asia Express linking the Middle East to West Asia, the Nhava Sheva Express, the Red Sea Express from Red Sea ports to Singapore, and the Jeddah Feeder Service.  The five new services mean APL is already about 35% of way towards reaching its three year growth target for intra-Asian business.  APL will be upgrading the West Asia Express service later this with the delivery of three 4,000 teu ships on long term charter, the APL Arabia, APL Egypt and APL Malaysia.  Existing tonnage this service will be cascaded into the carrier new service arrangements on the North Atlantic.  The carrier is looking deploy some of the 10, 5,500 teu ships on a new Europe-Asia string operated by eight 5,500 teu vessels next year as part of the New World Alliance with Mitsui OSK and Hyundai Merchant Marine.  The exact deployment plans have yet to be finalized.”

43.  AAPA Online:  http://www.aapa-ports.org/members/advisory/advisory35-3.htm

“LOS ANGELES — Container traffic at the Port of Los Angeles soared to a record 4.9 million TEUs in 2000, a 27%, or 1.1 million TEU, jump from the previous calendar-year record of 3.8 million TEUs established in 1999 and nearly double the volume handled just six years earlier, in 1994.”

44.  “Asia traffic is driving force behind containership business.” Lloyd’s List on the Web 18 August 2000. 08 March 2001  .

“No wonder container shipping lines are so keen to have a presence on the Pacific.  The world’s largest trade lane is experiencing an unprecedented boom as American consumers continue their love affair with the shopping mall.  Furniture from China, kitchen appliances from South Korea, motor parts from Japan and computers from Thailand are contributing to another bumper year for ocean carriers.  Northeast Asia exports to the US were up by 14% in the first quarter, according to statistics produced by Piers, a division of the Journal of Commerce.  This growth was driven almost entirely by Chinese and Korean producers which ?together lifted their export volumes by a hefty 27%, with goods to feed the buoyant US housing market accounting for most of the activity.  Almost 11m teu will be shipped across the Pacific this year, according to estimates from Drewry Shipping Consultants, accounting for nearly 60% of carrier income on the three main east-west routes.  The Pacific has always been considerably larger than the transatlantic or Europe/Asia trades, but the way in which it has accelerated over the past year or so is truly breathtaking. Drewry puts total income generated both eastbound and westbound across the Pacific last year at close to $15bn,up from just over $11bn in each of the previous three years.  This compares with $6.7bn in the Europe/Asia trades and just under $4bn on the Atlantic.  But it is eastbound traffic from Asia to the US that is powering this boom, with income from ocean freight and ancillary charges put at $11.7bn, compared with $8.4bn in 1998 and less than $7bn in the previous two years.  Drewry believes this is the largest single year-on-year gain ever achieved on any container route, and explains the large number of new entrants determined to seize a slice of the action.  Recent arrivals include CMA CGM, Mediterranan Shipping Co, China Shipping Group, and Wan Hai, while a number of already established carriers such as P&O Nedlloyd are keen to expand their Pacific capacity.  A recent analysis by the new World Liner Supply published by ComPairData says vessel capacity eastbound across the Pacific broke through the 10m teu barrier for the first time in July. Eastbound annual capacity is now put at 10.2m teu, a 10% increase over the January figure.  Shippers have a choice of 60 joint or individual liner services in which 456 vessels are deployed. Furthermore, both the number of ships and their size continues to increase.  This breaks down to the equivalent of 49 vessels of 4,000 teu sailing each week from Asia to North America, with four new services inaugurated in the first half of the year, bringing in almost 1m teu more in annual capacity.  The five biggest northeast Asian countries, — China, Hong Kong, Japan, Taiwan and Korea — are expected to ship almost 5.5m teu to the US this year, according to Piers forecasts, with the figure climbing further to 5.8m teu in 2001.  This compares with under 3.8m teu in 1997 and almost 5m teu in 1998 as trade grew by an enormous 20%.  This fell to 13% in 1999 and is expected to slow further to around 7.4% this year — still a healthy growth rate. Evergreen, Maersk Sealand, Hanjin Shipping and APL have the biggest market shares.  US imports from the main southeast Asian markets — Thailand, Indonesia, Malaysia, the Philippines and Singapore — are projected to be up by some 6% this year to almost 1.1m teu, with further growth to 1.15m teu in 2001.  With containerized shipments from the US to Asia also recovering after the 1998 downturn and the outlook promising, the omens look good for at least another year of healthy trading and financial conditions for Pacific carriers.  Furthermore, with China expected to gain membership of the World Trade Organization shortly, the Pacific trade lane will receive another huge boost.  Already, China is by far the biggest trading partner of the US across the Pacific, accounting for an anticipated 2.6m teu of eastbound shipments this year, almost half the total from northeast Asia.  US containerized exports to China are very much smaller with under 500,000 teu forecast for this year.  But as China’s huge domestic market is opened up to foreign goods, so this figure is poised to soar.  Little surprise, then, that so many ocean carriers are clamoring for a larger share of such a lucrative trade route.  As Drewry says, those lines that have built up a major share of the Pacific trade, especially eastbound, were the star financial performers of 1999, a pattern which is expected to repeat itself this year.”

45.  Porter, Janet. “Tonnage glut threat to liner recovery.” Lloyd’s List on the Web 10 October 2000. 08 March 2001  .

“Liner shipping’s recovery could prove to be brief as additional tonnage threatens to outpace demand growth, a new report warns.  Financial prospects for this year look good, but already there are signs of a downturn in 2001, according to Drewry Shipping Consultants.  The failure of carriers operating in the booming Pacific trades to obtain higher eastbound freight rates during the summer has surprised commentators and led to some revision of industry prospects.  Aggregate results in the main east-west trades this year are expected to show a considerable improvement over 1999, with total revenue of $30bn forecast to produce an industry profit of $1.9bn, representing a 6.4% return.  This compares with a 2.2% margin last year when combined profit of $570m was achieved.  The transpacific trade is expected to produce a surplus of $1.4bn this year compared with $743m in 1999, but next year is unlikely to be as good.  A similar trend is projected for the Europe-Asia trades, which are forecast to show a profit of $521m this year against just $27m in 1999.  A smaller outturn is forecast for next year, Drewry anticipates.  On the Atlantic, where last year’s loss of $200m is expected to shrink to $40m this year, the deficit is set to return to the 1999 level in 2001, according to John Fossey, editor of the Drewry report.  “The cyclical nature of shipping suggests that the recent recovery may only be short-lived”, Drewry cautions.  Furthermore, the underlying health of the container shipping industry is dependent on the state of the US economy, with any slowdown bound to hit world trade and cargo volumes.  The profit warning reflects concerns about the newbuilding orderbook, with more than 1.56m teu of additional slots scheduled to enter service over the next three years.  This is equivalent to almost 35% of the current fleet and represents annual growth of more than 12%.  In contrast, Drewry points out, world trade is expected to increase by up to 9%, “suggesting that the supply/demand balance is set to widen again”.  Drewry’s index, measuring container moves per slot compared with 1980, shows a deterioration from 94.2 this year to 93.5 in 2002 as surplus capacity grows.  Uncertainty over future revenues as market fundamentals soften coincides with renewed concern about overheads with fuel costs and charter rates well above levels at the start of the year.  “Ocean carriers will have to continue to watch their costs and raise their productivity ratios if profit margins are to be maximized and the companies fit to face the next competitive challenge”, the report says.  This may also require a further round of consolidation, with Drewry pointing out the liner shipping industry is still very fragmented. More than 600 companies offer regular container services with A P Møller, the world’s biggest operator which owns both Maersk Sealand and Safmarine, only accounting for 13% of slots deployed.  Drewry also forecasts that world container port handling moves will rise by 8.7% this year and 7.7% in 2001, led by a projected 27.6% growth in ext year and 24.5% in southeast Asia.”

46.  Wallis, Keith. “Box traffic surge for mainland China.” Lloyd’s List on the Web 02 February 2001. 08 March 2001   .

“Box throughput at China's container ports soared by 39% to 16.55m teu in the first nine months of last year, boosted by growing foreign trade, according to communications ministry figures.  The country’s top 10 box ports handled a total of 13.66m teu between January and September, an average 36% rise on the same period of 1999.  Shanghai remained the country’s top box port, posting a 32% rise in throughput to nearly 4.04m teu. It is expected to handle about 5.55m teu for the full year.  But the three Shenzhen ports — Yantian, Shekou and Chiwan — are the fastest growing, boasting a 46.2% surge in throughput to 2.9m teu in the first nine months.  The figures show that, even though the Shenzhen ports are luring container traffic away from Hong Kong with cheaper handling fees, Hong Kong port is maintaining its competitiveness with faster and more efficient operations.  The Marine Department said Hong Kong handled 13.41m teu between January and September and was set to record a 10% gain in overall throughput for the full year to more than 17.8m teu.  Port and Maritime Board secretary Alex Fong Chi-wai said he believed container throughput at Hong Kong and China ports would continue to grow substantially because of the forecast 8% annual growth in China's gross domestic product over the next five years.  China’s ministry of communications said Qingdao, on the Yellow Sea in northern China, was the country’s third busiest container port, handling 1.56m teu in the nine months to September 30, a 41.3%n increase.  Tianjin, the container port serving Beijing, saw throughput rise 36.1% to 1.29m teu, while Guangzhou showed a 30.5% gain to almost 1.06m teu.”

47.  “MTS Report to Congress.” U.S. Maritime Administration on the Web September 1999. 30 Sep. 1999

“The U.S. Maritime Administration’s September 1999 report to Congress notes that world trade increased by 3.8 percent annually between 1993 and 1997, and that U.S. foreign container trade increased by 8.6 percent during the same period.   By 2002, the U.S. Maritime Administration projects that total world trade will grow at 3-4 percent annually, and world container trade will grow by 8-10 percent annually (see Table 1).”

48.  Table 1.

World Containership Trade Projections

Year        Source    Address Growth Rate          Date Range

1999        U.S. Maritime Administration            www.marad.dot.gov/MTS/report/     8-10%     1998-2002

1999        Ocean Shipping Consultants             www.aajs.com/shipint/        7%          2000-2012

1997        International Association of Ports and Harbors             www.iaph.or.jp/shiptrends_97rep.htm             7-8%       1997-2000

49.  “MTS Report to Congress.” U.S. Maritime Administration on the Web September 1999. 30 September 1999 <http://www.marad.dot.gov>.

“According to the U.S. Maritime Administration’s September 1999 report to Congress, the number of containerships is expected to continue to grow at 8 to 10 percent annually until 2002.  The growth increases are due to larger containerships being introduced into east-west trades and containerships replacing traditional breakbulk ships in world liner trades.  Approximately 40 percent of new containerships are in the 4,500 TEU+ category.”

50.  “World Maritime News.” Shipping International on the Web 1 Oct. 1999. 1 Oct. 1999 <http://www.aajs.com/shipint/htm/>.

“Ocean Shipping Consultants recently completed a study reporting that global container port throughput has the potential of rising to 218 million TEU by 2000 and up to 491 million TEU by 2012, growing at 7 percent annually.  In North America, there is an anticipated 3.19 million TEU increase from 1998, with forecasts of up to 30 million TEU by 2000 and more than 50 million TEU by 2012, growing at 5 percent annually.  Northwest Europe will witness a hike of up to 57 million TEU by 2012, while the Mediterranean can expect up to 44 million TEU by 2012.”

51.  “MTS Report to Congress.” U.S. Maritime Administration on the Web September 1999. 30 Sep. 1999 <http://www.marad.dot.gov/MTS/report/chapters/trends.pdf>.

“A recent report prepared by the U.S. Maritime Administration finds that the rate of growth in containerized cargo in the U.S. is at 6% per year and predicts by 2010, nearly 90% of general cargo will be shipped in containers.  The U.S. Maritime Administration also predicts that nearly 33% of those containers will be transported on vessels carrying more than 4,000 twenty-foot equivalent container units.”

52.  Borrone, Lillian. “Testimony Before the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation.” American Association of Port Authorities on the Web 29 July 1998. 19 Aug. 1999 <www.aapa-ports.org/govrel/testimony/lilliantestimony.htm>.

“Lillian Borrone, Director of the New York and New Jersey Port Authority and Chairman of AAPA, stated in testimony before the House that while U.S. container traffic accounted for less than 10% of total waterborne commerce by ton in the third quarter of 1997, container cargo traffic is growing at a more rapid rate than bulk cargo traffic.”

53.  Zarocostas, John. “Growth of 3.5% Predicted for 2000.” Journal of Commerce Special on the Web 7 Dec 1999. 5 July 2000 < http://www.joc.com>.

“The Journal of Commerce reported that international oceanborne trade is expected to grow 3.5 percent in 2000, up from 1999’s projected increase of 2.2%.”

54.  Ignarski, Sam. “The challenge of globalization.” Lloyd’s List on the Web 16 November 2000. 13 February 2001  .

“Cargo surveyors, no less than anyone else, face a range of modern pressures in their marketplaces.  These so-called drivers bear down on the marine industries in general but they are perhaps worth recalling.  The first is containerization.  The proportion of goods and cargoes which are sent to market in containers keeps on growing.  By value, 65% of cargo travels in containerships, which ships account for only 18% of ocean shipping capacity.  In that the container industry strives to produce a service which is regular, cheap, safe and predictable, the implications of this long-term trend are not calculated to reassure the new business managers of the major surveyors.”

55.  McLaughlin, John. “New York needs new vision.” Lloyd’s List on the Web 27 October 2000. 13 February 2001  .

“The US economic boom continues to fuel growth at America’s ports, with New York and New Jersey reporting strong volume growth in the first six months of the year on the back of a sharp increase in imports.  At the same time, as port executives stressed, the latest tonnage increases — well above expectations — further underline the need for significant investment in modernising and expanding New York and New Jersey’s hard pressed cargo-handling facilities.  Container throughput rose 7% in the first half of this year, to more than 1m teu.  The improvement, fuelled by a 12.9% increase in imports to 722,000 teu, took New York and New Jersey’s share of the north Atlantic market to 58%, up from 57% in the first six months of last year.  At the same time, the already yawning gap between imports and exports through the port widened further, with container exports slipping back 4.5% to 322,000 containers.”

56.  Spurrier, Andrew. “Le Havre traffic at record high.” Lloyd’s List on the Web 10 January 2001. 13 February 2001  .

“Top French west coast port Le Havre saw its cargo throughput increase 5.6% last year to 68.02m tones.  The port, which is the French leader for general cargo and containers, lifted its general cargo total 5.8% to reach a record of 17.1m tonnes.  Containerized general cargo accounted for most of the growth, increasing 7.5% to 13.8m tonnes.”

57.  South Atlantic Ports Study 3.2.2, p.3-3

The U.S. trade share of adjusted GDP increases from just over 15% in 1980 to nearly 30% by 2010.  Japan’s share remains close to 20% throughout the period.  The German share rises from about 40% to close to 60% by 2010, the French is close to 70%.

58.  Fischer, Stanley. “The Road to a Sustainable Recovery in Asia.” International Monetary Fund on the Web 18 Oct. 1999. 12 Nov. 1999 <www.imf.org>.

“The financial interdependency created by globalization can have a positive effect on the world economy.  The phenomenal strength of the U.S. economy during the last three years has been the bulwark of the world economy and has been essential in preventing the Asian, Russian, and Mexican crises from generating a worldwide recession.  Indonesia, Malaysia, Philippines, Thailand, and Korea are expected to grow on average by 4 percent in 2000.  World output growth is set to accelerate 3.5% in 2000, mainly because of continued growth in the U.S., a gradual pickup in Europe, and economic recovery in Latin America.  This growth reflects substantial recoveries and upward revision for growth across Asia.  Asia is expected to grow by 4.3 percent in 2000, up 0.2 percent from the May 1999 World Economic Outlook, with a particularly brighter outlook for Japan.  These recoveries have been built on supportive fiscal and monetary policies, the initiation of much-needed structural reforms, and a return of financial confidence and foreign capital that stabilizes exchange rates and strengthens stock markets.”

59.  “International Trade.” World Trade Organization on the Web 16 Apr. 1999. 12 Nov. 1999 <www.wto.org/wto/intltrad/internat.htm>.

“According to the World Trade Organization, the need for increased international economic awareness is illustrated by the affects the Asian economic crisis had on world trade growth in 1998.  The world GDP and trade growth slowed in 1998 as the Asian crisis deepened and its repercussions were felt outside of Asia.  The rate of growth in volume of world merchandise exports slowed to 3.5 percent in 1998 from over 10 percent in 1997 due to the continuing economic contraction in much of Asia.  World output growth slipped to 2 percent in 1998 compared to 3 percent in 1997.  In 1998, the value of world exports fell almost 2 percent from 1997, but still exceeded the level attained in 1996, representing the strongest decrease since 1982.”

60.  Freudmann, Aviva. “Western European ports riding wave of trade.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>.

“Drewry Shipping Consultants reported in April that container port activity in Western Europe reached 45.8 million TEUs last year, a 4.7% increase over 1998.  Western Europe's growth was part of a 7.8% worldwide surge in port throughput.  Although demand in Europe's own markets has grown relatively slowly compared with other regions, its port industry has been riding a wave of exports, as other regions post rapid economic growth.  The United States, for example, saw continued expansion in its imports, as did Asia, as it climbed its way out of its economic crisis.  The Port of Rotterdam, Europe's largest container handler, recorded some of the most dramatic year-end results for 1999.  Its throughput increased from 6 million to 6.4 million TEUs over the course of the year.  Consistent with the rest of Western Europe, Rotterdam's biggest growth took place on the export side, where containerized traffic grew 9.6% over the previous year.  In France, Le Havre reported a 4.5% increase in container traffic in 1999 over 1998, to 1.38 million TEUs.  The Port of Hamburg, another giant among Europe's Northern Range ports, recorded an increase of 5.4% in its box volumes in 1999 compared with 1998, reaching a throughput of 3.74 million TEUs.  During the last quarter of the year, Hamburg breached the million-TEU quarterly mark for the first time, with a 14.8% increase over the same period the year before.  While the northern ports posted significant gains, the most dramatic port story of Europe is in the south, where ports are coming back after decades of losing business due to high costs, poor service and lack of investment.  According to Drewry Shipping Consultants, total container traffic in the Mediterranean reached 19 million TEUs in 1998.  The figure is expected to climb to 53 million TEUs by 2015.”

61.  “Container Handling Ports of Central and South America 1997-1998.” AAPA Advisory 01 Nov 1999

“In 1998, Latin American container traffic increased – climbing 15.7 percent compared to 1997, and 43 percent compared to 1996.  From 1997 to 1998, Panama throughput increased by 79 percent, and double-digit increases were experienced in 1999 by Argentina, Columbia, Guatemala, Peru, Uruguay, and Venezuela.  Buenos Aires remained the region’s number one container handler for the second year in 1998, with throughput up 11.3 percent from 1997.”

62.  Porter, Janet. “Transpacific summit as US import volumes fall.” Lloyd’s List on the Web 16 January 2001. 13 February 2001  .

“An urgent review of the transpacific container trades has been called for tomorrow amid early evidence that the world’s most important liner shipping route is faltering.  At a time when ships sailing from Asia to North America should be full, a number of carriers are reporting utilisation levels of nearer 80%.  ‘The market is definitely weaker than we would have expected for this time of year,’ said Michael Seymour, president of P&O Nedlloyd North America.  ‘It’s clear that a lot of (US) retail stores did not have a good holiday season’.  With eastbound cargo volumes slowing and freight rates flat or falling, a scheduled meeting of the Transpacific Stabilisation Agreement in San Francisco has been upgraded from owner to principal level.  Underlining the importance of the meeting is the fact that some of the world’s top liner shipping executives are said to be flying in, including Knud Stubkjaer, chief executive of Maersk Sealand, and Flemming Jacobs, president and chief executive of Neptune Orient Lines which owns APL.  These are two of the biggest lines on the Pacific.  The transpacific summit was proposed by Tsunenan Tokugawa, senior managing director for NYK Line, just before Christmas as the first signs of a US economic downturn started to be felt.  The strength of the eastbound transpacific trades over the past couple of years on the back of booming US consumer demand has been the mainstay of the liner shipping industry’s good financial performance in the last 12 months.  Carriers with the largest market shares on the Pacific have been among those posting the best results.  Although shipping lines are playing down any sense of crisis, they are nevertheless alarmed by a softening of US import volumes in recent weeks.  Asian exporters usually ship as much as possible to North America in late December and early January before factories close for the Chinese New Year holiday. That has not happened this month.  Rodolphe Saade, CMA CGM vice-president in charge of US trades, agrees with Mr Seymour that the Pacific trades are under pressure.  ‘Most carriers on the Pacific are not full at this point in time.’  The TSA advised shippers in October of a $525 per feu general rate increase from Asia to US west coast ports effective May 1.  In earlier years, these higher rates would already have been working their way through the system by now as annual service contracts were renewed.  In reality, freight rates so far are broadly flat, according to a number of lines, with shippers delaying contract negotiations as they monitor market developments.  But already NVOCC inbound rates are said to have dropped from $2,200 per feu to nearer $1,600 in recent weeks, according to some reports.  The 14 members of the TSA will be assessing market conditions and reviewing the planned rate recovery programme for the coming year in the light of recent developments.  But whether the published recommended increases will be revised has not been decided.  The eastbound market is still forecast to grow, albeit much more slowly than in 2000 when liftings in the January-November period rose some 14%.  Demand, however, has to be offset against projected capacity supply as record numbers of post-panamax newbuildings are delivered.”

63.  “International: Box Shipping: Lines face China challenge.” Lloyd’s List on the Web 24 March 2000. 08 March 2001   .

“China’s prospective membership of the World Trade Organisation will givea huge boost to the country's international trade and present shippinglines with both opportunities and challenges, according to a senior officialfrom China Ocean Shipping.  Gao Weijie, vice-president of Cosco Container Lines, said the volume of containersthrough China's ports could increase by some 1.6m teu a year once Chinajoins the WTO.  With talks between the Chinese government and European Union officials on WTOaccession being held in Beijing next week, Mr Gao said the country was now onthe 'final sprint'.  Once a member of the organisation that sets the rules for world trade, China'sinternational trade is forecast to grow by an annual 8% to 10%, he continued.  As well as opening up new import and export markets, Mr Gao said membershipwould pose challenges for China's liner shipping companies by way of morecompetition from foreign lines.  Addressing Containerisation International's Global 2000 conference, MrGao documentedhow China's foreign trade had soared from Dollars 115.4bnin 1990 to Dollars 360bn last year, accompanied by container volumes throughthe country's ports climbing from 1.43m teu to 16m teu over the same period.  As foreign investment continues to pour into the country, international tradein products such as motor and chemicals would continue to expand, he forecast.”

64.  “International: Hong Kong still top as box throughput surges: Ports.” Lloyd’s List on the Web 28 March 2000. 08 March 2001  .

Hong Kong has regained the title of the world's busiest container port after total throughput last year topped 16.2m teu, an 11.2% increase over 1998.  The announcement, by secretary for economic services Stephen Ip Shu-kwan, would appear to end the three-month tussle between Hong Kong and Singapore over which is the busiest box port.  Mr. Ip said the robust performance was attributable to the acceleration of the Asian economic recovery plus a significant upturn in transpacific shipments in the second half of 1999.  Currently Mr. Ip presides over the Port and Maritime Board and the Marine Department, although a month ago he was promoted to secretary for financial services, a position he will take up in the next few weeks.  Mr. Ip will be replaced by SandraLee Suk-yee, director-general of the HKSAR  government office in London.  Within Hong Kong port, the Kwai Chung container terminals saw throughput grow 7.7% to 10.3m teu.  In mid-stream, where containers are transferred between anchored containership and barge, throughput rose by 7.5% to 2.8m teu.  But river trade operations, where boxes are carried between Hong Kong and ports along the Pearl River estuary in mainland China, posted particularly strong gains with throughput soaring 29% to 3.1m teu.  PMB secretary Alex Fong said box throughput is forecast to rise 7% this year to more than 17.3m teu.  Part of this increase could come from the effect of China formally joining theWorld Trade Organisation.  PMB chairman Peter Thompson said: 'Hong Kong will have much to gain fromthe spurring effect of China's imminent accession to the WTO.'  Headded that the expanding cargo base in southern China, particularly in neighbouring Guangdong province 'would remain our main cargo source'.  Last week the census and statistics office released figures showing total port cargo throughput, including bulk freight, slipped 1% last year to 168.8m tonnes.  Imported cargo decreased by 1% to 106.3m tonnes, although exports rose 4% to 62.5m tonnes.  But these figures hide a strong fourth quarter performance with total cargo throughput rising 12% to 44.4m tonnes between October-December, compared withthe same period in 1998. Inbound cargo rose 10% to 28.1m tonnes, while outboundfreight increased by 15% to 16.3m tonnes in the final quarter last year.”

65.  Porter, Janet and David Mott. “Future downturns may hit liner trades hard unless ‘fundamentals improve’.” Lloyd’s List on the Web 19 October 2000. 08 March 2001  .

Container shipping companies remain dangerously exposed to any downturn in the global economy after failing to take advantage of current buoyant trading conditions to improve industry fundamentals, a top analyst warned yesterday.  Current financial results “beg the question of how well the lines will weather the inevitable next downturn in the cycle, when it may come, and whether enough has and is being done to fundamentally improve the performance of the industry through the cycle”, Mark McVicar, transport analyst at Dresdner Kleinwort Benson, told delegates.  After a year or two of restraint, the orderbook is starting to grow again “and threatens to undo much of the good work of the last couple of years”, Mr McVicar claimed.  This situation has not been helped by the desire of banks “to aggressively grow their loan books”, he continued.  Consolidation has been scant of late, he said, while cost control and cost reduction initiatives also seem to have abated somewhat.”

66.  Wallis, Keith. “Box traffic surge for mainland China.”  Lloyd’s List on the Web 02 February 2001. 08 March 2001  .

“The ministry said China’s sea ports handled a total of 930m tonnes of bulk cargoes between January and September, a 20% increase over the same period of 1999.  The top 10 ports handled 682m tonnes of the total.  The leading ports were Shanghai, which handled 151.7m tonnes, up 9.8% on January to September, 1999, Ningbo, which dealt with 87.76m tonnes, a 22.9% rise, Guangzhou with 81.1m tonnes, a 9.4% gain, and Qinhuangdao. which handled 272.63m tonnes, a 20.2% rise on the preceding year.  China’s river trade also surged, with the country’s inland ports posting a 16.9% increase in throughput to 283m tonnes in the first nine months of the year.  The top 10 ports handled nearly 154m tonnes of freight.  The leading ports are Nanjing, which handled nearly 50.7m tonnes, a 12.7% increase, Nantong, where the figure was 19.5m tonnes, a 23.6% gain, Hangzhou, with almost 15.7m tonnes, a slight decrease on the same period in 1999, and Zhangjiagang, which handled 14.9m tonnes, a 32.9% surge.”

67.  Porter, Janet. “Transpacific container lines try again to jack up rates.” Lloyd’s List on the Web 03 October 2000. 08 March 2001  .
This 2001 forecast represents 9% growth, albeit slightly down on this year's 11% projected expansion and the breathtaking 20% increase recorded in 1998, but nevertheless a very healthy figure which is ensuring very high vessel utilization.”

68.  Gray, Tony. “Industry faces up to era of mega boxships.” Lloyd’s List on the Web 07 July 2000. 08 March 2001  .

“Ocean Shipping Consultants predicts that, between 1998 and 2012, transpacific container volumes will increase by around 105%, and those on Asia-Europe by nearly 100%.”

69.  Porter, Janet. “Carriers confident of transpacific surge.” Lloyd’s List on the Web 25 January 2001. 08 March 2001  .

“Carriers operating in the transpacific trades are confident that new tonnage capacity will be largely absorbed by the peak season cargo surge in late summer.  The 14 members of the Transpacific Stabilisation Agreement have decided to press ahead with a range of rate increases announced late last year, despite evidence that trade growth is slowing after a bumper couple of years.  A top-level review of the market was held in San Francisco last week amid some concern about market conditions as evidence accrued of a US business downturn.  However, carriers concluded that the US economy, while slowing down, “shows continued strength”.  Consequently, they forecast that eastbound cargo volumes from Asia to the US are expected to return to “normal” growth levels of about 5%-6% this year.  A few months ago, the TSA was predicting a 10% rise in carryings from Asia to the US in 2001, but has since revised projections.  The past couple of years have seen record growth levels as the the US economy surged ahead and imports Asian flooded into the country, with Pacific eastbound volumes up 14% in the January-November period last year compared with 1999.  “While carriers recognise that recent market conditions have not been particularly favourable for many importers, it must be remembered that most service contracts soon to be negotiated will extend well into 2002,” TSA executive director Albert Pierce said following last week’s meeting.   “That leaves plenty of time for the US economy to stabilise and strengthen further over the life of these shipper-carrier agreements. Even a 5% increase in demand will mean another very strong year, while the need for cost recovery will remain a priority”.  The TSA advised shippers last October of a general rate increase of $525 per feu from Asia to US west coast ports, effective May 1. Rates are to be lifted by $600 per feu to east coast ports via all-water or landbridge services, and $750 per feu for inland intermodal deliveries.  In addition, there will be a $300 per feu peak season surcharge from July to October.  The TSA also reaffirmed plans to restructure fuel charges and introduce a new chassis usage charge during the forthcoming round of contract renewals.  The ability to pass on costs associated with carrier-provided truck chassis in the US remains a priority, the TSA stressed.  Member lines also said projections for increased feeder vessel, inland transport, longshore, equipment repositioning and other costs remain unchanged.  The TSA is a voluntary discussion forum, rather than a conference with a common tariff.  A slowdown in US containerised imports from the Far East has come as no surprise after the extraordinary growth figures of the past two years.  Latest statistics from Piers, the Journal of Commerce’s Port Import Export Reporting Service, predict that inbound shipments from northeast Asia will rise by 8.5% this year compared with over 13% in 1999 and 2000, while from southeast Asia growth this year is projected at 8.2% against 9.3% in 2000.  But these figures were compiled before year-end jitters about a possible recession in the US.  West coast port statistics are portraying a mixed picture, with Long Beach reporting a decline in import cargoes during December, but the adjacent port of Los Angeles showing showing continued growth.”

70.  “Box trade set to grow further in 2001.”Lloyd’s List on the Web 14 November 2000. 13 February 2001  .

“Container trade growth is expected to rise by 7% in 2001, compared with 10% growth this year, according to data compiled by Clarkson Research Studies, writes Jennie Harris.  Containership fleet growth meanwhile is forecast to remain stable at 8% for the next few years.  The analysts report that newbuilding containership deliveries in 2002 are expected to at least keep pace with levels seen in 2000 and 2001.  As a result, despite mounting evidence that the world economy is entering a slower, calmer phase, the sector is set to experience strong demand in the year ahead.  In illustrating the slowdown in world economics, Clarkson’s points to the flat US stock markets, the indications that Europe has passed its growth peak and the fact that Asia will find it difficult, if not impossible, to achieve the 20% industrial growth in 2001 that it did this year.  As a result, containership capacity measured in teu is forecast to reach 7.248m teu by the end of 2001, compared with estimates of 6.784m teu by the end of this year.  Meanwhile, container trade to Europe is expected to reach 52m teu lifts during 2001, compared with 49m teu lifts in 2000.

 Asia is forecast to reach 106m teu lifts next year, against 99m teu lifts this year, while North American container trade is predicted to encounter 31m teu lifts in 2001 compared with 29m teu lifts this year.  In total 223m teu lifts are forecast for 2001, an 8% rise on the 209m teu lifts in 2000.”

71.  Porter, Janet. “Transatlantic choice from two alliances.” Lloyd’s List on the Web 30 May 2000. 07 March 2001  .

Total carrier capacity on the Atlantic between northern Europe and the US is estimated to total 41,500 teu a week in the latter half of the year, up 7% on the present figure of 38,650 teu.  This will rise by a further 3% next year to 42,600 teu as APL and Mitsui OSK bring their own ships onto the Atlantic.  But with vessels full on the westbound leg and trade forecast to grow 8% this year and 6% in 2001, the lines are confident they have acted cautiously and not done anything to trigger another rates slide.  The unknown, of course, is the possibility of new entrants.  Rapidly expanding China Shipping Container Line is expected to enter the Atlantic at some stage, while CMA-CGM has also indicated that it has Atlantic plans of its own.”

72.  “Plans for super-large ships such as Samsung Heavy Industries' 8,770 TEU-ship will intensify industry competition.” Informare on the Web 09 March 1998. 27 February 2001 <http://www.informare.it>.

“Over the years, the growth of containerized trade has been impressive, at around 7 percent annually in recent years.  In some regions, growth has been spectacular.  In Asia alone, volumes increased more than sixfold between 1980 and 1996 to reach 69.3 million TEU.  Although the recent financial crisis in some Asian nations has made future predictions more difficult, it is expected there will be more such growth ahead.  Ocean Shipping Consultants, for example, has projected an increase in worldwide container volumes to 220.4 million TEU in the 1996-2000 period, to 300-342 million TEU by 2005, and 407-525 million by 2010.”

73.  Porter, Janet. “Transpacific container lines try again to jack up rates.” Lloyd’s List on the Web 03 October 2000. 13 February 2001  .

“Freight rates on the eastbound transpacific liner trades are under pressure despite record breaking cargo volumes.  The targeted rate increases that carriers had hoped to introduce in May have not been achieved, forcing lines to have another attempt at lifting revenues next year.  While increases were obtained in 1999, the carriers have had much less success this year in obtaining higher rates.  In fact, rates have actually fallen compared with 12 months ago, according to Jeremy Nixon, senior vice president for the Pacific trades at P&O Nedlloyd.  Year-on-year there has been "a slight deterioration" on the eastbound trades, Mr Nixon said yesterday.  This is despite the fact that the market is going from strength to strength in terms of volumes.  Eastbound transpacific liftings are expected to climb from 6.4m teu in 1999 to 7.1m teu this year, according to Piers/Journal of Commerce statistics, while P&O Nedlloyd’s own projections put next year's eastbound trade at 7.7m teu.  Key US economic indicators such as housing starts provide every reason to be optimistic, Mr Nixon said.  This 2001 forecast represents 9% growth, albeit slightly down on this year's 11% projected expansion and the breathtaking 20% increase recorded in 1998 but nevertheless a very healthy figure which is ensuring very high vessel utilization.”

74.  Porter, Janet. “Transpacific container lines try again to jack up rates.” Lloyd’s List on the Web 03 October 2000. 08 March 2001  .
”The market is going from strength to strength in terms of volumes.  Eastbound transpacific liftings are expected to climb from 6.4m teu in 1999 to 7.1m teu this year, according to Piers/Journal of Commerce statistics, while P&O Nedlloyd¹s own projections put next year's eastbound trade at 7.7m teu.  Key US economic indicators such as housing starts provide every reason to be optimistic.”

75.  Joshi-Oslo, Rajesh. “Right time for a shipping bargain as tonnage shopping list grows.” Lloyd’s List on the Web 05 March 2001. 08 March 2001  .

“Considering the favorable shipping markets ahead with reasonable earning potentials, and the existence of cheap, modern tonnage and new tonnage on order in many well-managed companies, the shopping list should be overwhelming, the institute's Lennart Nilsson said.  The advice is contained in the institute's latest market report, which takes stock of world economic prospects and superimposes them on to individual shipping segments.  The result is an almost uniform spectrum of strong upsides and favorable conditions.  At the macro level, the institute believes world economic prospects are brighter than they have been for some time, irrespective of the waning potential evident in the US.  Any tightening of US monetary policy will be more than compensated by favorable trends in euroland and the Far East.  Besides, strong trade growth is expected to foster significantly higher demand for seaborne commodity transport.  This augurs well for most major shipping markets.”

76.  Wallis, Keith. “Hong Kong predicts 10% box throughput growth this year.” Lloyd’s List on the Web 23 October 2000. 13 February 2001  .
“Hong Kong is on course to retain its position as the world's busiest box port as throughput is forecast to grow 10% this year to a record 17.8m teu.  The estimates were confirming to Lloyd's List by Port and Maritime Board (PMB) deputy secretary Roger Tupper. He was commenting just days before the PMB's port development committee is to consider a report on October 26 that will outline the possibility of making Hong Kong more attractive to shipowners and shipping lines.  Throughput figures for the first half of this year are already well ahead of those last year.

According to the PMB, the total number of boxes handled by Hong Kong soared to more than 8.49m teu between January and July, compared with 7.42m teu in the same period last year.  The figures cover total throughput from the eight container terminals at Kwai Chung, mid-stream operations and river trade traffic.  Traditionally, throughput in the second half of the year is far stronger than the first because traders rush to meet increased demand caused by the Christmas shopping boom.  Between July and December last year container throughput swelled to 8.79m teu, higher by a massive 1.37m teu than the first half.  Total throughput last year topped 16.2m teu, allowing Hong Kong to regain its crown as the the world's container busiest container port, a title it lost to Singapore in 1998.  Singapore is unlikely to catch Hong Kong this year because it lost the 2m teu a year previously handled by Maersk SeaLand, which moved on October 1 to the Port of Tanjung Pelepas, across the Johor Strait in Malaysia.  This followed Maersk SeaLand's decision to buy a 30% stake in the Malaysian port.  Instead Singapore estimates it will handle about 17m teu for the full year.  Mr. Tupper said Hong Kong's current throughput figures are in line with the port forecasts carried out two years ago.  He said: ‘we've seen pretty good years in 1999 and 2000. In the long term we expect growth of a bit over 1m teu a year.’”

77.  “Economic Indicators:  COMPOSITE INDEXES OF LEADING, COINCIDENT, AND LAGGING INDICATORS.” Wall Street Journal on the Web 2 November 2000. 2 November 2000 .

“The leading index held steady, the coincident index increased by 0.4 percent, and the lagging index increased by 0.1 percent in September 2000.  Taken together, the three composite indexes and their components suggest that the pace of economic activity continues to grow although more moderately.  Strong income gains, together with increases in employment and industrial production, continue to drive the Coincident Index higher.  The flat performance of the leading index partly results from the sustained inverted yield curve, which has the potential of hindering strong economic growth in the near term.”

78.  “U.S. Public Port Facts.” American Association of Port Authorities on the Web 19 Aug. 1999. 19 Aug. 1999 <http://www.aapa-ports.org/portfacts/portfact.html>.

“The container shipping market is rapidly growing because of evolving global economies.  Trade represented only 13 percent of U.S. Gross Domestic Product in 1970, but was 30 percent of GDP in 1996, or about $2.3 trillion according to the American Association of Port Authorities (AAPA).”

79.  “NAPM Report Predicts Economic Grow in 2001.” Wall Street Journal on the Web 12 December 2000. 12 December 2000  

“The economy will continue to grow in 2001, with much of the expansion coming from the service sector, according to the National Association of Purchasing Management.  NAPM said manufacturing revenue should grow 4.4% next year, up only slightly from 4% in 2000.  Manufacturers reported operating at 82.2% of normal capacity at the end of 2000.  That's down from 87.4% six months ago, and represents the largest decline since 1985.  That decline in capacity resulted from a weakening in investments, which grew only 4.9% in 2000, the narrowest increase since 1991.  Only 29% of respondents expect to increase capital expenditures next year, while 32% predict a decrease in investments.  A more-robust non-manufacturing sector should give the economy a larger boost.  The general weakness in manufacturing should keep a lid on price pressures in that sector.  Prices paid for materials and labor are expected to be flat next year, according to manufacturing respondents.  Manufacturers still don't appear to have pricing power, with 86% of respondents indicating they have little ability to pass on cost increases to customers.  Inflationary pressures are expected to be greater in the non-manufacturing sector, which is comprised mostly of services and makes up roughly three-quarters of gross domestic product.  Input prices are expected to rise 3.2% next year, compared to 2.5% in 2000.  Both manufacturing and non-manufacturing businesses expect the second half of 2001 to be stronger than the first half, with just under 50% of the survey respondents from both sectors predicting better business later in the year.  By contrast, 15% of manufacturers expect business conditions to worsen during the second half of next year, and 7% of non-manufacturers foresee that scenario.”

80.  Dreazen, Yocki J. “Consumer Prices Rise 3.6%, Hinting at Future Inflation.” Wall Street Journal on the Web 17 November 2000. 17 November 2000 <>. 

“After years of dormancy, inflation seems to be stirring.  Consumer prices have advanced at a seasonally adjusted annual rate of 3.6% so far this year, far higher than a 2.7% increase seen for all of last year.  Core prices, which exclude the volatile energy and food sectors, rose at an annual rate of 2.7% in the first 10 months, compared with a gain of just 1.9% for the entire year last year.  The upward climb has taken place below the radar screen of many economists, who have focused on slower economic growth or monthly inflation numbers that appear to be inconclusive.  Thursday, for example, the Labor Department said consumer prices edged up by just 0.2% in October, far lower than the 0.5% increase recorded a month earlier.  Core prices also gained just 0.2%, a notch lower than in September.  To be sure, inflation remains tame by historical standards.  Import prices are still falling, thanks to the strong dollar, wholesale prices have been stable and massive gains in work-force productivity have helped many companies absorb higher energy and labor costs without having to boost their prices accordingly.  Consumer prices have been rising steadily, however, and many analysts worry that the situation will get worse before it gets better.  A continued run-up in inflation could have severe consequences, potentially forcing the Federal Reserve to boost interest rates even as the economy continues to slow.  Analysts say a range of factors could push prices higher in coming months.  The slowing economy and doubts about the government's commitment to fiscal responsibility may weaken the dollar, making imported goods more expensive and reducing competitive pressures on domestic companies to keep their prices stable.”

81.  “Economic Indicators:  GROSS DOMESTIC PRODUCT: THIRD QUARTER 2000 (ADVANCE).” Wall Street Journal on the Web 27 October 2000. 27 October 2000 .

“Real gross domestic product -- the output of goods and services produced by labor and property located in the United States increased at an annual rate of 2.7 percent in the third quarter of 2000, according to advance estimates released by the Bureau of Economic Analysis.  In the second quarter, real GDP increased 5.6 percent.

The major contributors to the increase in real GDP in the third quarter were: Personal consumption expenditures (PCE), exports, and nonresidential fixed investment.  The contributions of these components were partly offset by an increase in imports (which are subtracted in the calculation of GDP), and decreases in government spending and in residential investment.  The deceleration in real GDP in the third quarter primarily reflected a deceleration in inventory investment, a downturn in government spending, and a deceleration in nonresidential fixed investment that were partly offset by an acceleration in PCE.  The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.4 percent in the third quarter, compared with an increase of 2.1 percent in the second.  Excluding food and energy prices, the price index for gross domestic purchases increased 1.9 percent in the third quarter, compared with an increase of 1.7 percent in the second.  Real exports of goods and services increased 16.2 percent in the third quarter, compared with an increase of 14.3 percent in the second.  Real imports of goods and services increased 13.8 percent, compared with an increase of 18.6 percent.”

82.  “WSJ Economic Indicators:  U.S. Federal Reserve Summary of Commentary on Current Economic Conditions.” Wall Street Journal on the Web 14 June 2000. 14 June 2000 . 

“Reports from the Federal Reserve Districts indicate that solid economic growth continued in April and May, but that signs of some slowing from the rapid pace earlier in the year are also present.  Most of the other District reports characterize growth as moderate or steady.  Indications of worsening price inflation, while not widespread, are reported by several Districts.  Labor markets are tight across all 12 Districts, but the tightness does not appear to have intensified since the last report.  Contacts across the country report worker shortages and difficulties in recruiting and hiring; half the Districts indicate that labor shortages are constraining output growth.  Retail sales are higher in all Districts than a year ago.  However, half of the Districts report a recent slowdown in the rate of growth.  A majority of Districts said that autos and durable goods exhibited weaker sales growth and a corresponding increase in inventories for some of these big ticket items.  Retailers in the Boston, New York, Atlanta, Chicago, Kansas City, and San Francisco Districts say that wage inflation is not carrying over to prices.  Of those, all but Chicago indicate that prices for consumer goods are mostly stable.  Most Districts report that overall manufacturing activity is rising.  Chicago, Kansas City, and San Francisco report a slight weakening but describe conditions as strong or solid.  St. Louis indicates that business is stable at a high level.  Strong and rising demands for steel, fabricated metals, petroleum products, semiconductors, and high-tech equipment are mentioned frequently in District reports.  Shortages of labor, materials, and capital are said to be constraining actual or expected output for manufacturers of these or other products in the Boston, Philadelphia, St. Louis, Minneapolis, Kansas City, and Dallas Districts.  Where mentioned, exports are said to be rising across a variety of products, mostly durable goods.  Reports on the interest-sensitive automotive and construction-related sectors are mixed.  Atlanta reports a ramp-up in production among auto parts suppliers.  Boston, Philadelphia, and Richmond cite strong demand for building components and furnishings.  Most Districts mention some evidence of increasing inflationary pressures.  Prices paid for petroleum-based products, natural gas, metals, paper, and some construction materials are said to be rising.  However, reports generally indicate that manufacturers are raising their selling prices less than the increase in input costs.

83.  “GDP Grows at 5.2% Annual Rate, Significantly Faster Than Estimates.” Wall Street Journal on the Web 28 July 2000. 28 July 2000 

“Economic growth was unexpectedly strong in the second quarter, with gross domestic product rising at a 5.2% annual rate.  But even as growth accelerated, inflationary pressures cooled.  Economists surveyed by Thomson Global Markets expected GDP to grow at just a 3.5% rate, though the report was complicated by government revisions.  GDP rose at a revised 4.8% pace in the first quarter, the Commerce Department said.  The personal-consumption-expenditures price index -- a key inflation gauge -- rose just 2.3%, down from the first quarter's 3.5% increase.  Though the GDP figure could increase pressure on the Federal Reserve to raise interest rates in an effort to slow the economy, the report's inflation data were not particularly alarming.  Consumer spending, though robust, rose at an annual rate of just 3% in the second quarter, compared to a 7.6% surge in the first quarter -- the biggest jump in 17 years.  Business investment continued to increase rapidly advanced at a 19.1% pace last quarter, boosted by a 21% increase in equipment and software.  Business investment added 2.41 percentage points to GDP in the second quarter, the Commerce Department said.  Also adding to growth in the quarter was a rebound in government spending, which rose at a 17.5% pace after falling by 14.2% in the first quarter.  International trade was the biggest drag on growth.  Economists' efforts to predict quarterly movements in GDP were complicated this month by the government's annual revisions of past data.  Those revisions left the annual GDP increase at 4.2% in 1999 but revised upward the gains in 1998, to 4.4% from 4.3%, and in 1997, to 4.4% 4.2%.  The quarterly movements were also revised, with the fourth quarter of 1999 now shown as increasing at an astonishing 8.3% pace instead of the 7.3% rate previously reported.  The new figure was the strongest quarterly rate since the 9% surge in the second quarter of 1984.”

84.  “U.S. Merchandise Trade with Latin America and the Caribbean.” U.S. Aid June 2000

“The region of Latin America and the Caribbean (LAC) continues to play a significant role in U.S. trade with developing countries, both with and without the inclusion of Mexico according to a report by US Aid.  In 1998, LAC (which excludes Mexico) accounted for 23 percent of U.S. total trade with the developing world.  With Mexico included, LAC's share of U.S. trade with developing countries jumped to 58 percent.  While 1998 was a slow year, the ten-year trend has been one of strong, positive growth.  Since 1988, U.S. total trade with the LAC region has grown an average of 8 percent annually.  Of the three LAC sub-regions, South America is the most important to U.S. trade in terms of the total value of imports and exports.  In 1998, South America's merchandise trade with the U.S. was four times as large as that of the Caribbean or Central America.  From a trade deficit in 1988 to a surplus in 1998, the changing face of the US - LAC trade balance is due largely to an increase in U.S. exports to South America.  In 1998, the largest U.S. trading partners in the LAC region were all South American countries, with the exception of the Dominican Republic.  Brazil accounted for 22 percent of total regional trade, Venezuela 14 percent, Columbia and Dominican Republic 8 percent each, and Argentina 7 percent.”

85.  “U.S. Merchandise Trade with Latin America and the Caribbean.” U.S. Aid June 2000

“U.S. trade with Mexico grew five time faster than trade with Japan, and almost double the rate of trade with Canada, accounting for 15 percent of total U.S. trade in 1998.”

86.  “Let the good times roll.” The Economist on the Web 15 April 2000. 19 June 2000 <http://www.economist.com>.

“Despite Ecuador’s inability to emerge from its worst economic crisis since the 1930s, it is hard to find an emerging economy in Latin America whose situation is now getting worse.  In most cases, the recovery is proving stronger than expected.  Argentina is returning to healthy growth after being hit hard by an economic crisis in 1995.  It now has one of the safest banking systems among emerging markets, with widespread foreign ownership and high levels of liquidity and capital.  After Brazil’s 1999 currency crisis, the country is recovering more quickly than expected.  The IMF predicts that Brazil’s economy is likely to grow by 4 percent in 2000.  Mexico’s economy grew by 3.7 percent in 1999, and in March of 2000, was upgraded to investment-grade status for the first time.  Because investors have started to recognize that Mexico follows the United States economy rather than those to the south (over 80 percent of Mexico’s exports go to the U.S.), growth is projected to resume.  A recent law allowing majority foreign ownership in banks has sparked a wave of mergers and acquisitions, helping ensure a positive economic outlook for Mexico.”

87.  Milverton, Damian. “IMF Predict Growth of 4% for Latin American Economy.” Cisnero News on the Web 29 Mar 2000. 26 June 2000 <http://www.cisneros.com>.

“Rising commodity prices and strong demand for exports, particularly from America, has fuelled economic recovery.  The International Monetary Fund forecasts that the Latin American economy will grow by 4 percent in 2000, improving from last year's expansion of 0.3 percent in gross domestic product.  This growing optimism about the global economy has prompted the IMF to revise up its forecast for world growth to 4 percent from 3.2 percent.”

88.  Luxner, Larry. “Argentina looks to new leaders for recovery.” Journal of Commerce Special on the Web Dec 1999. 19 June 2000 <http://www.joc.com>.

“With a per-capita income of $8,500, Argentines are the richest of any people in Latin America.  Argentina's total GDP ranks third in size after Brazil and Mexico and is expected to grow 1-2.3 percent in 2000.  Prices will also likely rise by 0.4 percent.  Argentina is poised for economic recovery due to reforms adopted since 1989, and the IMF predicts 1 percent GDP growth in 2000.  Argentina has been hit hard by the recession in neighboring Brazil, which buys 30 percent of the country's exports.  However, commodity prices are recovering in the international economy, and Argentina is expected to rebound.”

89.  Reid, Michael. “Will Latin America’s Bright Future Ever Arrive?” The Economist – The World in 2000 Dec 1999. 19 June 2000 <http://www.economist.com>.

“Brazil accounts for two-fifths of Latin American GDP and is key to recovery in Latin America.  Because of its close ties with the US economy, Mexico escaped the 1999 recession and is still growing.”

90.  Damdessus, Michael. “Latin American in a Globalized Economy:  The Chilean Response.” The IMF on the Web 14 Mar 1999. 19 June 2000 <http://www.imf.org>.

Chile’s notable economic expansion during the 1990s, accompanied by steadily declining inflation, has attested to the sound stance of its economic policies.  To solidify these achievements, it has persisted with structural reform in areas of privatization and trade liberalization, extending them into a second generation of reforms.”

91.  “Chilean President-elect Sees 2000 Rebound.” Journal of Commerce on the Web 19 Jan 2000. 19 June 2000 <http://www.joc.com>.

“In the 1990s, Chile enjoyed levels of 7 percent plus growth.  1999 was its first recession in nearly 20 years, with only 1 percent growth.  Chile's economy is on the mend after industrial output figures began to inch up in October of 1999 and soar in November.”

92.  “Chile and Colombia Supermodel Angst.” The Economist on the Web 03 July 1999. 19 June 2000 <http://www.economist.com>.

“Annual inflation has fallen from 27 percent to under 5 percent, and analysts are predicting 5 percent growth per year for the next decade.”

93.  “Chile Forecast.” The Economist - The World in 2000 Dec 1999. 19 June 2000 <http://www.economist.com>.

“Economic success is helping Chile confirm its status as Latin America’s top-rank performer.”

94.  “Chip Shop Afire in Costa Rica.” The Economist on the Web 08 Jan 2000. 19 June 2000 <http://www.economist.com>.

“The economy in Costa Rica has surged after stagnating in the mid-1990s.  GDP grew by almost 8 percent in 1999, and the rest of the economy grew at around 3 percent.  The value of the Intel factory’s production almost tripled last year, and the increase in chip exports gave Costa Rica a trade surplus for the first time since 1986.”

95.  “Ecuador on the Brink.” The Economist on the Web 17 Jan 2000. 19 June 2000 <http://www.economist.com>.

“In 1999, the annual inflation rate reached 60.7 percent in Ecuador. The sucre lost 65 percent of its value against the dollar, while the economy shrank by 7.3 percent.  However, bringing in the dollar will import a measure of both stability and credibility, and curb inflation.”

96.  “The World in Figures.” The Economist - The World in 2000 Dec 1999. 19 June 2000 <http://www.economist.com>.

“GDP projection for 2000 is 3.9 percent.”

97.  “Let the good times roll.” The Economist on the Web 15 April 2000. 19 June 2000 <http://www.economist.com>.

“The work of strengthening emerging economies against new crises is far from over.  However, useful progress is being made in helping countries prevent future crises.  There are international standards on everything, including statistical transparency and monetary policy.  Several emerging economies are monitoring how well they adhere to these standards.  Because Latin American countries have put huge emphasis on fiscal stability and debt management, they are continuing to grow and are becoming safer.”

98.  James, Canute. “Ports Prosper as Trade Grows in the Hemisphere.” Journal of Commerce on the Web Dec 1999. 19 June 2000 <http://www.joc.com>.

“According to James Canute of the Journal of Commerce, since the start of the 1990s, cargo movement between North America and South America has become more vibrant because of Latin American economic growth.  This coincided with extensive deregulation of Latin economies and reforms of port and shipping operations.  Restrictive cargo preference regulations were dismantled and governments ended subsidies to their own carriers.  Growth in trade is a factor driving the expansion of ports.  In the Caribbean, the region's ports are benefiting from an increase in trade between North America and South America, and between the Americas and Europe.  Since the start of the 1990s, cargo movement between North and South America has become more vibrant because of economic growth in Latin America.”

99.  Dupin, Chris. “Atlantic Recovery Forecast.” Journal of Commerce on the Web Jan 2001. 19 Jan 2001 <www.joc.com>.

“Carriers say the trans-Atlantic trade continues to suffer from a severe imbalance, with about 40% more cargo moving westbound across the Atlantic to the U.S.  With westbound rates stronger, the health of that route is critical for carrier success in the Atlantic.  Carriers, therefore, are understandably concerned about the effects of the U.S. economic slowdown.  ‘A potential U.S. economy slowdown might have some effect, but we think it would be much less than in the Pacific trade, because a lot of the commodities shipped inbound from Europe to the U.S. are not directly related to retail.  There is a lot of intercompany business, with suppliers providing components to U.S. manufacturers,’ said Pieter Bas Bredius, senior vice president of Atlantic services at P&O Nedlloyd.  John Boudreau, director of Atlantic services for Maersk Sealand, said, ‘the economy would have to do a Jekyll and Hyde.  It would have to turn on a dime and go in a completely opposite direction to undermine the import markets of the USA.  While imports of some luxury goods might decline in a recession, people are not going to stop getting dressed in the morning or stop buying toys for their kids at Christmas.’ “Maersk Sealand forecasts that westbound trade will grow about 7% to 8% in 2001 compared with 10% to 12% in 2000.  It is hoping that eastbound traffic will also pick up.  That trade declined about 2% last year from 1999.  ‘The inbound market is strong today with most carriers sailing full or close to full,’ said Francis O’Donnell, vice president trans-Atlantic trades for CMA CGM (America), whose company launched a service to North Europe in November.  ‘In 2001 we think will see some rebounding on the outbound leg,’ though he said that this depends largely on the dollar-euro exchange rate.”  As shipping alliances have reformed and companies put larger ships into the Atlantic, capacity has grown less than 10%, a small enough increase that it will not have a severe impact on the trade, especially since ‘the trade is growing as well,’ said Olav Rakkenes, chief executive of Atlantic Container Line and chairman of the Trans-Atlantic Conference Agreement.  He does not expect a great number of new carriers to enter the trade in 2001, and if they do, he expects they will probably slot-charter space as CMA CGM did when it entered the trans-Atlantic in late 2000.  At CP Ships, Peter Seminck, chief executive of the company’s Cast subsidiary, said volumes westbound are excellent and are expected ‘to stay strong in both volume and revenue terms, but we don’t expect eastbound traffic to improve significantly in the current economic climate.’  ‘I think when all the dust has settled, we are still going to be faced with a North Atlantic situation that is going to have a very strong westbound demand,’ said Olav Rakkenes, chief executive of Atlantic Container Line and chairman of the Trans-Atlantic Conference Agreement.  ‘The rates will recover both west and east, and so I think that 2001 should be a fairly decent year compared to 1999.’”

100.  “GDP of U.S. and Major Trading Partners vs. Container Shipping Trade Growth”

101.  “Top 100 Container Ports.” Cargo Systems on the Web 23 Aug. 1999. 23 Aug. 1999 <http://www.containershipping.com>.

“Growth in container traffic volumes worldwide was supposed to be seriously dented in 1998 because of the Asian economic crisis, but this was not the case for the top 100 container ports.   Taiwan was one of the world’s strongest growth regions in 1998, and of the top 100 container ports in the world, Singapore, Hong Kong, and Kaohsiung, Taiwan, were at the top.  China continued to grow economically as well, experiencing increases in container port volume when Asia was in the midst of an economic slump.  The two most notable regional success stories in 1998 were Latin America and China.  Shanghai’s throughput increased by 15.8 percent in 1998, which established the port in the world’s top ten for the first time.  Guangzhou, which has often been considered the poor relation among southern China’s container ports, saw its throughput increase by 23.1 percent.  The Yantian container figures increased by 62.7 percent, and Shekou was the only port in the top 100 to more than double its throughput in 1998.”

102.  “U.S. International Trade in Goods and Services.” U.S. Census Bureau Foreign Trade Statistics on the Web 20 Oct. 1999. 20 Oct. 1999 <http://www.census.gov/foreign-trade/www/press.html>.

“The U.S. Census Bureau reports that the top ten countries with which the U.S. trades, ranked by volume, are Canada, Japan, Mexico, China, Germany, UK, Taiwan, Korea, France, and Singapore.  The following chart illustrates the stability of trade with the top five U.S. trading partners in Asia from 1991 to 1998.  Note that these five countries make up half of the top ten U.S. trading partners worldwide.”

103.  U.S. Import and Export Trade Table

104.  “World Maritime News.” Shipping International on the Web 01 Oct. 1999. 01 Oct. 1999. <http://www.aajs.com/shipint/htm/main99101.htm.>.

“While the crisis was severe, there are many positive indicators supporting the notion that Asia has turned the corner.  A study by Ocean Shipping Consultants has reported a positive forecast for Southeast Asian ports, which are predicted to gain more than 20 percent of the world market by 2012.  The report anticipates container volumes will go up to 33 million TEU by the end of 2000 and to 105 million TEU by 2012, experiencing 12 percent annual growth.”

105.  “The IMF’s Response to the Asian Crisis.” International Monetary Fund on the Web 17 Jan. 1999. 20 Oct. 1999 <http://www.imf.org>.

“According to the International Monetary Fund, as long as Asian countries and other affected economies continue to implement the right stabilization and reform policies, they will continue to recover.  There has been notable progress in some countries in the implementation of corrective policies and the stabilization of exchange rates.  The exchange rates of the Asian crisis economies have strengthened from their lows, which were reached in the first part of 1998.  While the Indonesian rupiah remains deeply depreciated, it too has recovered significantly.  Korea and Thailand have made significant progress in macroeconomic stabilization and have begun to implement structural reforms.  Indonesia has implemented a modified policy program and has experienced some positive results.   Indonesia, Korea, and Thailand’s current account positions have rapidly moved from deficit to surplus.”  Amid these signs of progress, the IMF remains concerned about the contractions in economic activity in the affected countries.  Economic restructuring is essential, but it can have temporary adverse effects on output and employment.  However, if countries persist in implementing programs of economic stabilization and reform, and if financial market confidence continues to return, the affected Asian economies will recover.”

106.  “World Maritime News.” Shipping International on the Web 01 Oct. 1999. 01 Oct. 1999. <http://www.aajs.com/shipint/htm/main99101.htm>.

“Despite the Asian economic crisis, world shipping volumes continue to increase.  The long-term prospects for U.S. sales to the Asian economies are bright, and international trade is expected to grow dramatically.  Volumes of containerized exports to Asia are improving, reducing the impacts of the Asian financial issues.  While the economic slump was much more severe and long term than some economists predicted, Asia continues to be a source of good imports and exports on containerships.”

107.  Camdessus, Michael. “International Financial Policy in the Context of Globalization.” International Monetary Fund on the Web 11 Oct. 1999. 12 Nov. 1999 <www.imf.org/external/np/speeches/1999/101199.htm>.

“Globalization has introduced an extraordinary and unfinished transformation to international economics.  It is commonly admitted that in the area of financial relations, globalization has had the most pronounced impact on our lives, and that financial markets have become integrated to a large extent with undeniable benefits.  While the Mexican crisis of 1994-1995 and the Asian crisis of 1997-1998 exposed vulnerable countries to severe crisis with dramatic consequences in financial and human terms, Michael Camdessus of the IMF believes that globalization of the world’s financial markets is a positive development that enhances the growth prospects of developing countries.   The experiences with Mexico and Asia have deepened the world’s appreciation of the size and agility of these markets and the problems that may arise.  It has increased awareness of the need for strong policies and the need to reassess the appropriateness of economic policy continually.”

108.  “International Trade.” World Trade Organization on the Web 16 Apr. 1999. 12 Nov. 1999 <www.wto.org/wto/intltrad/internat.htm>.

“Despite the decreases of trade growth in 1998, the future of globalization is promising.  Ireland, the Philippines, Hungary, and Costa Rica continued to expand their exports by more than 15 percent.  Throughout the 1990-1998 period, these countries expanded their exports two times faster than the global average.”

109.  Camdessus, Michael. “International Financial Policy in the Context of Globalization.” International Monetary Fund on the Web 11 Oct. 1999. 12 Nov. 1999 <www.imf.org/external/np/speeches/1999/101199.htm>.

“Several of the emerging market economies that were at the center of the Asian crisis, notably Korea, Thailand, and Brazil, are regaining the momentum of development and have arrived at what may be the most difficult part of their recovery.  Formidable reforms have been initiated in these and other Asian countries, and the chances are high that they will be in a strong position and with better prospects for higher quality and more sustainable growth than they would have enjoyed on pre-crisis trends.”

110.  “Trade Statistics.” World Trade Organization on the Web May 1999. 12 Nov. 1999 <http://www.wto.org>.

“Mexico’s economy has also recovered strongly from its 1995 recession.  The WTO reports that in 1998, Mexico’s trade and output performance remained well above the regional average, and its import growth rate of 14 percent contrasted with the relative stagnation of imports in other Latin American countries.  Mexico has enjoyed an above average growth rate in trade for a number of years, and its share of total trade in the region has risen considerably, accounting for 40 percent in 1998.”

111.  Camdessus, Michael.  “The IMF and the Challenges of Globalization – The Fund’s Evolving Approach to its Constant Mission:  The Case of Mexico.” International Monetary Fund on the Web 14 Nov. 1995. 12 Nov. 1999 <www.imf.org/external/np/sec/mds/1995/md59517.htm>.

“Camdessus states that globalization provides opportunities for borrowers to obtain additional resources for investment and growth, and for investors to obtain attractive returns on their savings, thereby promoting a more efficient allocation of global resources.  Developing countries have seen a marked increase in capital inflows, which averaged over $130 billion per year during 1990-94, a nearly fourfold increase over the previous five-year period.  While large capital inflows are seen as a sign of market confidence, the globalization of world’s financial markets has sharply reduced the scope for governments to depart from traditional macroeconomic policy discipline.  If countries are to retain market confidence, policymakers must be prepared to tighten policies when needed.  The IMF believes that we have reached a hopeful point in international economic recovery, and the worst of the crisis seems to be well behind us.  The world can count on international responsibility and solidarity.  According to Camdessus, evolutionary reform of the international monetary and financial system is clearly established, and implementation of many key aspects of reform is underway.  This allows the IMF to concentrate on the plight of poorest members of the international community to better help themselves escape from poverty and bring their own contribution to global prosperity.  Emphasis in the coming months and years must be on rapid implementation of international cooperation.”

112.  AAPA Online:  http://www.aapa-ports.org/members/advisory/advisory35-3.htm

“U.S. PORT TRAFFIC 1999 — U.S. waterborne commerce totaled 2.32 billion short tons in 1999, according to data reported this month by the U.S. Army Corps of Engineers’ Navigation Data Center.  That was a decline of 0.7% from the 1998 total of 2.28 billion tons and included both domestic and import/export cargo handled through and within the nation's coastal, Great Lakes and inland waterway port systems.  Compared to 1998, foreign trade increased by 1.3%, while domestic cargo fell by 3.1%.  Over the past three decades, by far the fastest growing segment has been import/export cargo, which in 1999 reached a record 1.261 billion tons, or nearly two-and-a-half times the 1969 total of 521 million tons.  Within the past decade, however, imports and, to a much lesser extent, cargo handled on the nation’s inland waterway system and between its Great Lakes ports has shown the greatest average growth of any industry sector.  Exports and coastwise shipments between U.S. ports have generally declined.  Supporting data are summarized below:”

“Based on total tonnage (i.e., foreign + domestic cargo), the top ranked U.S. ports in 1998 were South Louisiana, Houston, and New York/New Jersey. South Louisiana was also first in total domestic cargo, while Houston led the nation in foreign trade tonnage.”

113.  South Atlantic Ports Study 3.2.2, p.3-2

World trade grew at a rate of over 9% per year in the 1980s.  U.S. imports more than doubled from 1980 to 1992.  Real growth in imports exceeded 25% in some early years.  From 1980-1986, GDP averaged 2.6% per year, with about .1% of the growth coming from growth in exports.  From 1986 to 1992, GDP averaged 1.9% with exports adding about 56% to the growth and imports reducing domestic growth by about 31%.  The net real contribution to growth for trade was a positive 25%.

114.  South Atlantic Ports Study 3.2.2, p.3-6

GDP growth in the early forecast period in most of the countries is well over 8%, while no greater than a 4% to 5% rate is forecast for the period 2000-2050.  For the developed market economies, we expect no greater than a 1% to 2% growth rate over this period.  Worldwide growth in per capita GDP averaged about 1.9% for the 1980s and is forecasted to growth by a little more than 2% for the 1990s.

115.  South Atlantic Ports Study 3.2.2, Table 3.2.4, p.3-7

U.S. Real growth in imports:

2000        4.7

2010        2.9

2020        2.7

2030        2.5

2040        2.6

2050        2.7

116.  South Atlantic Ports Study 3.2.2, Table 3.2.5, p.3-8

U.S. real growth in exports:

2000        5.9

2010        4.6

2020        3.9

2030        3.8

2040        3.9

2050        4.3

117.  South Atlantic Ports Study 3.2.2, p.3-8

The long-term forecast tends to be modest in terms of real output growth – between 2% and 3% per year, tapering down over the decades.  In Asia, average annual growth rates slow dramatically from 1.4% during 1990 to 1995 to just 0.6% during 2035 to 2040.  A similar trend is apparent in Latin America and a lesser trend in the Middle East.

118.  Harris, Jennie. “Clarkson upbeat on long-term trade.” Lloyd’s List on the Web 31 January 2001. 08 March 2001  .

“Prospects look healthy for the dry bulk carrier trade over the coming decade.  Seaborne trade growth could rise to 2bn tonnes annually by 2007, according to projections made by Dr Martin Stopford, managing director of Clarkson Research Studies.  In considering the minor bulks, Dr. Stopford has assessed that the seaborne trade of 626m tonnes of agribulks, forest products, steel products and cement in 1999, will encounter modest growth to 679m tonnes by 2007.  On the supply-side of the shipping equation, Dr. Stopford has calculated that in order to meet the additional commodity demand growth, the dry bulk carrier fleet has to grow by around 25m dwt on 2000 figures by 2007.”

119.  Harris, Jennie. “Freight rates could drop 20%.” Lloyd’s List on the Web 30 January 2001. 08 March 2001  .

“Dry bulk freight rates are forecast to drop by 20% this year, followed by a further 20% in 2002.  While Martin Stopford, managing director of Clarkson Research Studies, would prefer the predicted scenario to be less bleak, he believes there is a strong rationale behind his figures.  He told Lloyd’s List: “Whatever the outcome we will need 20:20 vision for a market that may go up or down.  “Last year was quite exceptional for dry bulk trade, and it was also rather unexpected.  During the first half of the year we said there would be dry bulk trade growth of 2.5%.  It turned out to be 6% trade growth. This was easily the highest of the 1990s other than 1995, which was also 6% as well.  “This is the sort of growth rate you get once in a while. Therefore this is the first clue that we are not going to get the same growth levels twice in a row.”  As always the balance between demand and supply is expected to be the main mover of dry bulk freight rates.  On the supply side, a huge influx of panamaxes and handymaxes are expected. On the demand side, a worldwide economic slowdown has already been predicted for 2001.  “Everyone, including the OECD, is predicting a world slowdown in industrial economy this year.  The year 2000, meanwhile, was dominated by very rapid growth. Iron ore trade grew by 13%.  Iron ore imports into Europe rose 10% last year and iron ore imports into Japan also rose 10%.  “Moreover, 106m tonnes of steel was produced by Japan in 2000.  During most of the 1990s its steel production was mostly under 100m tonnes,” said Dr. Stopford.  “Coal seaborne trade should see growth in 2001,” said Dr. Stopford, “as there are a fair number of facilities for thermal coal coming on stream.  “Thermal coal trade should grow sharply in 2001 by 7%. There will, however, be a little bit of a decline in metallurgical coal trade.  “For grain we predict no change in growth. The status quo should remain relatively unchanged apart from problems with genetically modified grain,” he said.  Overall the major dry bulk trade is expected to grow slightly in the year ahead, but will not be enough to absorb the additional tonnage coming on line.  Even the traditional scrap prompt for an over-supplied market is unlikely to be triggered this year.  “That is the trap.  What we have got is a demand-level scenario that is not a disaster, but not terribly good.  “It is nowhere near as good as 2000; and we have deliveries of 17m dwt of dry bulk carriers, a 20% increase in fleet.”  It is not a disastrous scenario, said Dr. Stopford. But he added that even the predicted losses in freight rates will not be low enough to encourage scrapping, and therefore reduce the amount of dry bulk carrier supply.  “At today’s freight rates there is not much scrapping. Rates are way out of the scrapping band and so there is no incentive to scrap.”  Dr Stopford estimates that panamaxes built in the mid-1980s will fall to a low of $8,000 daily this year — well above operating costs.  “The forecast easing of freight rates over the year as demand fails to grow as fast as supply could lead to a situation where the market moves into a summer downturn and does not really come back out again.  “Then, at the end of the year, we will be trying to decide what will happen in 2002.  “And here we will be really dependent on economy.”  But he notes: “The hurdle in 2001 is not too tough.”  Meanwhile, many are talking about the impact of a US economic downturn, but it is the potential knock-on effect that will have the most impact, said Dr Stopford.  “The booming US market lubricated the Asian recovery and now Asia is worried that a US downturn would have a knock-on effect to their own economies.  “Japan’s Ministry of Trade and Industry has already predicted a 7% decline in Japanese steel production for the first quarter of fiscal 2001, so it is going to be very hard to repeat the growth of 2000.”  “Asia is also worried about its oil bill. It is facing an oil bill that is 40% higher due to increases in oil price and currency devaluations. Therefore there are also financial pressures,” said Dr Stopford.  China joining the World Trade Organisation is, however, seen as a bright spot in a trading world that is otherwise mature.  “China is a tremendously important economy. World Trade Organisation membership is tremendously important in the medium term as it shows the world that they are committed to change over the coming decade.”  So while China’s move may help the dry bulk market in the medium term, the short-term effect is not expected to be dramatic.  There, however, is a positive edge to all the potential gloom, and a silver lining to negative projections.  Dr. Stopford admits he could be wrong and this will be proved or disproved as other factors come into play during the year ahead.  “It may end up with dry bulk freight rates being 20% up, not down,” he said.  “A lot of shipowners will be taking delivery of modern good-specification ships at a very good price.  They will be good assets to work with over the next 10 years.  Maybe it will end up being a good deal.  “Then, again on the positive side, what is interesting in the dry bulk carrier market today is that anyone prepared to take a positive view will find a counterparty.

120. “Booming economy raises throughput at Mina Sulman.” Lloyd’s List on the Web 21 December 2000. 13 February 2001.  .

“During 2000, container and general cargo traffic handled at Bahrain’s Mina Sulman port have both increased appreciably, reflecting the advances being made in the local economy.  The port recorded a container traffic flow of 122,000 teu in the first 11 months of 2000, compared with 121,800 teu in the whole of 1999. An annual increase in the region of 8%, to 132,000 teu, is expected.  Similarly, conventional cargo throughput up to the end of November totalled 531,000 tons, up from 472,000 tons in the same period of 1999. The main increase has come from imports, which accounted for almost 450,000 tons in the first 11 months of the year.  Although it has been delayed, a completely new container and general cargo port is still planned for Bahrain.  An area in the southeast part of the Hidd industrial zone, close to the Asry shipyard, has been set aside for the project. This development on reclaimed land was originally due to become operational in 2001.”

121.  McLaughlin, John. “New York goes Dutch.” Lloyd’s List on the Web 02 December 2000. 13 February 2001  .

“Meanwhile, the US port also released much improved cargo figures for the first half of this year.  General cargo imports surged 12% to 6.5m tons as a result of continuing US economic strength, while exports also rose, by 4.5% to 2.3m tons.  In terms of containers the port registered import growth of 12.9% to 722,000 teu but exports slipped by 4.5% to around 320,000 containers.  Port authority chairman Lew Eisenberg said the improved performance suggested that the port’s existing growth projections were too conservative.  He underlined ‘the importance of moving ahead aggressively with a regional port modernisation and capacity expansion programme’.”

122.  Barnard, Bruce. “Container ships edge out tankers as orders soar.” Journal of Commerce on the Web 14 December 2000. 05 March 2001 <www.joc.com>.

“The oil tanker market is on a roll with freight rates nudging 30-year highs, but shipowners are investing more on container ships.  The value of container ship orders in the first 10 months of the year soared to $10.6 billion from $6.6 billion in the comparable period in 1999 and is nearly three times the $3.6 billion invested in 1997, according to Clarkson Research Studies.  Clarkson Research is the research unit of London-based shipbroker H. Clarkson.  Investment in new tankers totaled $9.8 billion by the end of October, a 136% rise on the $5.5 billion spent in 1999, but orders for bulk carriers were down by almost a quarter to $5 billion, according to figures compiled by Clarkson Research.  The capacity of container ships ordered in the first 10 months of the year amounted to 866,200 TEUs, up 82% on the same period in 1999.  Containership deliveries this year are expected to reach 473,300 TEUs this year, compared with 264,400 TEUs in 1999. They are forecast to rise again to 537,000 TEUs next year and 572,000 TEUs in 2002.”

123.  Flynn, Matthew. “Boxing clever on larger ships.” Lloyd’s List on the Web 19 February 2001. 27 February 2001  .

“Every containerline's technical department has probably been scrambling to consider the implication of leaps in teu scale after this week's news that Panama's Canal Authority is looking to construct a third set of locks capable of handling containerships of up to 12,000 teu.  "We are looking at designs for ships of up to 22 containers across," said Jorge Quijano, the authority's maritime operations director. "A 10,000 teu ship would easily be able to transit this size of lock. We could be looking at ships of up to 12,000 teu."  The new panamax, as it will be termed, is getting closer.  Out of a shipping industry with an annual turnover of $180bn-$220bn, 65% of revenues are in the container sector.  Of the seaborne 5bn tonnes of trade, the 18% transported in containerized or palletized trade earns the lion's share of money and technical innovation.”

124.  McLaughlin, John. “P&O Ports in New Orleans deal.” Lloyd’s List on the Web 27 June 2000. 06 March 2001   .
”The Port of New Orleans is now transforming the Napoleon Terminal from a multi-use breakbulk facility into a modern container terminal in response to rising levels of north-south trade and a further anticipated surge in demand in the years ahead.  Alistair Baillie, P&O Ports’ regional director for European and North American port operations, said the company was negotiating for a 30-year lease at Napoleon Avenue, that also foresaw it investing an initial $55m in “buildings, services, a gate complex, gantry cranes and modern systems”.  For its part, he said, the port would pump a further $20m into basic infrastructure, including the rebuilding of a wharf and paving.  Noting that the terminal would have an eventual annual capacity of 500,000 teu, Mr Baillie said that “because we are able to marry with an existing operation, it is a very economical development”.”

125.  Wainwright, Dale. “Dioryx begins fleet upgrade with Daedong feedership orders.” Lloyd’s List on the Web 26 July 2000. 05 March 2001  .

“Greek operator Dioryx Maritime Corporation has ordered a pair of container feeder vessels in South Korea in what appears to be the first signs of its planned fleet modernization program.  Each of the 2,500 teu new buildings is set to be delivered to the operator in the third quarter of 2002.  The new building contracts have been placed with Daedong Shipbuilding in what is only the yard’s second ever containership order.  In April, another Greek principal, EF Shipping ordered two 2,500 teu containerships from the Chinhae-based shipbuilder.  Athens-based Dioryx presently manages a mixed fleet of seven vessels consisting of containerships, conbulkers and tween- deckers.  At present Dioryx’s fleet consists of two general cargo vessels the 1977-built, 21,793dwt MSC Sarah and the 1978-built, 21,794 dwt Jonny (ex- Annie Delmas ).  Its container vessel interests include the 1996-built, 24,074 dwt MSC Africa , the 1996-built, 24,500 dwt P&O Nedlloyd Santos and the 1984-built, 30,458 dwt MSC Bogota.  Its fleet is completed by the 1982-built, 25,150 dwt MSC Port Sudan and the 1985-built, 33,857 dwt MSC Caracas , two multipurpose bulk carriers.  In May this year Dioryx reportedly sold its 1979-built general cargo vessel Patraikos II for further trading.”

126.  “Good growth in general cargo at Sharjah’s Mina Khalid.” Lloyd’s List on the Web 21 December 2000. 13 February 2001.  .
“Sharjah’s city port, Mina Khalid, has experienced good growth in its general cargo traffic in 2000.  A spokesman for the Sharjah Ports Authority said he expected non-container volumes to be up almost 10%, at around 1.4m tonnes.  Particularly significant increases have been achieved in the port’s steel and timber traffic, helped by additional calls by Thoreson Line, which has supported the SPA’s efforts to develop these niche areas.  Another dynamic sector is the importation of pine logs from Australia and New Zealand for the local construction industry.  Sharjah is also an important import port for cars, both for the local market and for re-export. In 2000 car traffic has, however, been roughly the same as in 1999.”

127.  McLaughlin, John. “New York needs new vision.” Lloyd’s List on the Web 27 October 2000. 13 February 2001  .

“General cargo imports increased at a fast clip, rising 12% to 6.5m tonnes, while exports edged up just 4.5% to 2.3m tonnes. Total general cargo tonnage was up 10% over first-half 1999, at 8.9m tonnes.  Though strong world trade conditions clearly contributed significantly to the improvement, port executives also cited lower costs, higher productivity and efficient terminal operations.  Rising throughput also poses considerable challenges, however, for a port that has consistently failed to meet its potential.  With cargo volumes rising even faster than expected, however, New York and New Jersey must act soon if it is to retain its leadership position on the US east coast.  As port authority chairman Lewis Eisenberg put it, the latest results, ‘demonstrate that our forecasts for the port are, if anything, conservative, and underscore the importance of moving ahead aggressively with a regional port modernisation and capacity expansion programme’.  Among other key statistics in the first six months, bulk cargo volumes rose 4.6% on 1999 levels, with imports increasing 5.4% to 21.6% and exports tumbling 17% to 634,000 tons.  In addition, New York and New Jersey consolidated its position as the leading US auto port, handling almost 277,000 units in the first six months, 21.8% up on the first six months of last year, and giving it a 15.4% share of the market.”

128.  Porter, Janet. “Faith in flexibility looks set to pay off for UASC.” Lloyd’s List on the Web 12 October 2000. 13 February 2001  .

“United Arab Shipping Co’s decision to replace its fleet of elderly general cargoships with a new generation of multipurpose vessels may have seemed a little rash a few months ago, but not any more.  Strong oil prices are expected to revive investment in infrastructure, industrial plants and other development programmes across the Middle East, and with it demand for project cargo that is too big or unwieldy to be containerised.  UASC has long recognised the need to maintain an interest in multipurpose tonnage to serve this sector and has no intention of operating a fully cellular fleet.  Nevertheless, the company has had to keep its nerve during a significant downturn in general cargo traffic during the period of low oil prices.  A depressed market in the late 1990s hit UASC’s breakbulk and project cargo badly last year, while the company will lose money from this side of the business in 2000 admits Waleed Al-Dawood, UASC vice-president in charge of the Middle East region.  Whereas UASC’s 31 general cargo ships would usually expect to carry 1m tons during an average year, volumes were down to around 350,000 tons in the first seven months of this year, a drop of about 40% on liftings in more normal trade conditions.  Despite the downturn, UASC had already made up its mind to order a new series of multipurpose ships as the present K-class 23,800 dwt ships, which are now over 20 years old, approach retirement age.  The time lag between the oil price upturn and the start of new construction projects is likely to be between one and three years, but UASC needs to start talking to shipyards almost straight away about ship specifications, probably of single deck design.  The carrier, headquartered in Kuwait, is expected to purchase between 10 and 12 container-friendly 20,000 dwt multipurpose ships and will probably place the shipbuilding order within a year so as to be ready for the expected revival in demand from 2002 onwards.  But this timetable could be accelerated if United Nations sanctions against Iraq are relaxed, giving an enormous economic boost to the Arabian Gulf, and if the potentially huge Iranian market also opens up, says Mr Al-Dawood.  Meanwhile, it is the container trades that are keeping UASC’s finances in reasonable shape at the moment.  The increased spending power from oil revenues is not expected to have a significant impact on container traffic into the Middle East — although new building projects could attract more overseas workers to the region and generate a related rise in local consumer demand.  UASC is nevertheless benefiting from the general recovery in liner trades and strong volumes on some of the main routes.  The carrier — a member of the United Alliance along with Hanjin Shipping, Senator Lines and Cho Yang — has no ambitions to be a global carrier, preferring instead to consolidate its position as the top regional shipping line serving the Middle East.  The 103,800 teu newbuildings that were delivered in 1998 have been full almost from the start and well ahead of expectations, says Mr Al-Dawood, leaving little room for expansion into any new markets.  Indeed, once the cost of investing in new multipurpose tonnage has been covered, UASC may well have to think about a fleet of larger containerships if new services are to be introduced or existing ones expanded.  The line already has a presence on the Atlantic through a slot charter agreement with its United Alliance partners on the America-Mediterranean-Asia service.  The Atlantic leg is not performing very well at present because of the big imbalance, but UASC is committed to the route because of the need to serve its Middle East customers.  Nevertheless, difficult transatlantic trade conditions probably rule out any service from northern Europe to North America for now, or the deployment of its own tonnage on the Atlantic.  As for the other trades, most are enjoying bumper cargo volumes while freight rates are gradually recovering but are not high enough to provide a “comfortable cushion” for UASC’s bottom line.  Further, improved revenue through general rate increases and bunker surcharges do not compensate for the soaring oil prices, Mr. Al-Dawood warns.  Fuel prices have virtually tripled since mid-1999, yet less than half can be passed on to customers through bunker adjustment.  So, while UASC may benefit more than most lines from higher crude prices as petrodollars are ploughed back into the local economies of Middle East oil producers, the company is struggling like every other carrier to absorb the cost of soaring bunkers.  But unlike its competitors, UASC is determined to maintain a fleet of flexible general cargoships.  It is a policy that should pay dividends in the years ahead if oil-rich Gulf states spend the money locally on long-term projects that require materials and machinery to be shipped in from overseas.”

129.  Freudmann, Aviva. “Conditions Growing Steadily Worse as Ship Lanes Get More Crowded.” Journal of Commerce 10 Nov. 1999. 10 Nov. 1999 < http://www.joc.com>.

According to the Aviva Freudmann with the Journal of Commerce, “These old workhorses of international trade [general cargo vessels] are being phased out in most trade lanes and replaced with multipurpose container carriers.”  Hans Payer, a member of the executive board of Germanischer Lloyd, believes that “further progress will be made in the development of containerships and ports beyond the 8,000-TEU vessels.”

130.  “World Fleet Rises to an All Time High.” Lloyd’s Register World Fleet Statistics on the Web 24 Apr. 1997. 19 Aug. 1999 <http://www.lr.org/news/pr/21wfx1.html>.

World Fleet Statistics states that world fleet rose sharply in 1996 to an all time high of 507.9 million gross tonnage, an increase of 17.2m gt since 1995.”

131.  Mongelluzzo, Bill. “Maersk Sealand to restructure Pacific services.” Journal of Commerce on the Web 10 October 2000. 10 October 2000 <www.joc.com>. 

“Maersk Sealand in November will restructure its Asia-to-U.S. services, with the net result being a faster, direct service from Hong Kong and South China to the East Coast.  The TP6A string, a peak-season-only service between Asia and the West Coast, will be dropped next month, as planned.  Maersk Sealand introduced the TP6A string this summer to accommodate the extra traffic that moves during the busy summer-fall shipping season in the eastbound Pacific.  Maersk Sealand will change its TP2 service by discontinuing East Coast port calls.  The service had been calling on the West Coast, transiting the Panama Canal, and calling at East Coast ports.  Beginning next month, the TP2 service will turn on the West Coast and head back to Asia.  Maersk Sealand will introduce its TP7 string, an express service from Hong Kong and South China directly to the East Coast.  The TP7 string will not stop on the U.S. West Coast.  This change will result in faster transit times from Asia to the East Coast.  In line with those changes, Maersk Sealand will reduce its slot allocations on a vessel-sharing service from Asia through the Suez Canal to the U.S. East Coast.  The net result of this shuffling of assets will be a reduction of some 600 to 700 40-foot containers in Maersk Sealand's capacity in the Asia-U.S. trades as the slack shipping season approaches.  The changes also will result in improved all-water service to the East Coast.”

132.  Mongelluzzo, Bill. “Asia-East Coast All-Water Route Attracts More Liner Services.”  Journal of Commerce on the Web 4 February 2000. 28 August 2000 <http://www.joc.com>.

“All-water container volume from East Asia to the U.S. East Coast totaled about 979,000 TEUs in 1999, up from 591,000 TEUs in 1993, according to the Global Container Report published by the Port Import/Export Reporting Service (PIERS) division of The Journal of Commerce Group.  Those figures include the all-water routing through the Suez Canal as well as the Panama Canal.”

133.  “Panama Canal won’t compete with Suez.” The American Journal of Transportation on the Web 3 April 2000. 24 August 2000. <http://www.ajot.com/scripts/foxweb.exe/ajotweb.exe?2,652>.

“The Suez Canal is being pushed by the Port Authority of New York-New Jersey as an alternative to the Panama Canal for cargoes from East Asia.  It takes seven days longer from Hong Kong but is 5-7 percent cheaper with bigger ships, the Port of NY/NJ said.”

134.  Parker, John.  “East-West Relay.”  The Journal of Commerce on the Web 15 May 2000. 24 August 2000 <http://joc.com>.

“According to a study conducted last year for the Port, if only 7 percent of transpacific trade could be shifted to an all-water route through the Suez Canal for Asian cargo bound for the U.S. East Coast, freight volumes at the port would double over the next 20 years.  The Suez Canal and Mediterranean Sea lie in the middle of the globe, strategically located "at the heart of the eastbound and westbound routes to and from the Far East toward America according to John Parker from the Journal of Commerce.  Parker reports that the major advantage of this route is cost savings, achieved by eliminating the need for rail service from West Coast ports to East Coast destinations.  According to the New York study, the cost of shipping a 40-foot container from Singapore to the East Coast is about $1,450, only slightly more than the U.S. transcontinental rail leg alone.  The study estimates that costs compared with the traditional transpacific route are cheaper for destinations east of the Chicago-St. Louis axis.  Parker reports that services between Southeast Asia and the U.S. East Coast using the Suez Canal provide potential operational advantages for shipping lines.  Along the route there are several increasingly important markets, including the Indian subcontinent, the Middle East and southern Europe.  "Inclusion of these alternative markets augment the available lift potential considerably," the study says.  But while some of the markets along the route are growing rapidly, Parker reports that the volume of cargo generated by this region is still dwarfed by northeast Asian countries like China, Japan and Korea.  None of the Southeast Asia countries are really big cargo generators at this point.  For Mediterranean ports, increasing transshipment volumes routed through the Suez Canal are seen as key to future growth.  According to Parker, Mediterranean ports have the potential to play a central role as the crossroads of the Far East, Europe and North and South America. The Chinese shipping line Cosco-Yang Ming has adopted this concept with its Far East-U.S. East Coast service.  The service has been split into three different trade lanes: the Far East to the Mediterranean; the Mediterranean to the U.S. East Coast; and the Mediterranean to Africa.”

135.  Richardson, Paul. “The 18,000 TEU Ship – No That’s Not a Typographical Error.” The Journal of Commerce on the Web 5 June 2000. 24 Aug 2000. <http://joc.com>.

“According to Paul Richardson from the Journal of Commerce, Rotterdam and Singapore are going to provide financing to accelerate deepening the water depth of the Suez Canal so the waterway can accommodate the post-Panamax vessels.  Without this financing, it will take 10 years for the Suez Canal Authority to deepen the channels with its own dredging fleet.  With a little help from the port authorities, it'll take five.  A dredging project due for completion March 2001 would enable the canal to handle ships with a draft of 58 feet.”

136.  Tirschwell, Peter. “Carriers choose Panama Canal over Suez as China Trade Grows.”  Journal of Commerce On the Web 28 March 2000. 25 August 2000 <http://www.joc.com>.

“The announcement that a consortium led by China Ocean Shipping Co. will begin an Asia-U.S. East Coast service through the Panama Canal points to a growing reality in the U.S. shipping market according to Tirschwell.  It will be East Asia, and particularly China -- rather than Southeast Asia -- that will supply most of the growth in containerized imports from Asia.  And except for the West Coast mini-landbridge, the fastest route to the East Coast from East Asia is through the Panama Canal, not the route through the Suez Canal and across the Atlantic.  Tirschwell believes that the announcement from Cosco and its partners, Yang Ming Line and Kawasaki Kisen Kaisha ("K" Line"), illustrates the point.  Cosco is dismantling its eastbound Suez service, which used a single string of ships (all but one from Cosco) sailing from Asia to the U.S. East Coast.  It is replacing it with three separate joint services with its consortium partners.  Those routes will connect Asia and the Mediterranean, the Mediterranean and the U.S. East Coast, and Asia and the East Coast through the Panama Canal.  Transit times are an important element in the decision to shift from the Suez to Panama routing for Asia-U.S. shipments according to Tirschwell.  Shanghai to New York through the Suez is a 36-day voyage, compared with 30 days through the Panama Canal.  Hong Kong to New York through the Suez is a 33-day voyage, versus 26 days through the Panama Canal.  “Asia to the U.S. East Coast via the Panama Canal is more competitive versus the Suez,” said Kazuyuki Oda, senior vice president, liner operations for “K” Line America Inc.  With the launch of the service next month, "K" Line will have an all-water Asia-U.S. East Coast service for the first time since 1991.  China trade favors the Panama routing versus the Suez for shippers that choose to move goods that way.  The reason is trade patterns.  East Asian nations, led by China, are expected to be the main engine of growth in U.S. trade with Asia in coming years.  That is partly due to China's expected accession into the World Trade Organization, and to the slowing in the shift of industries to South Asia.  The Port of New York and New Jersey, for example, reported that growth in trade from the Far East overall was nearly 20 percent last year while Southeast Asia trade grew by only 11 percent.”
 

137.  Mongelluzzo, Bill. “Asia-East Coast All-Water Route Attracts More Liner Services.”  Journal of Commerce on the Web 4 February 2000. 28 August 2000 <http://www.joc.com>.

“The Suez Canal route is also disadvantaged by higher tolls -- $120 per 40-foot container compared with $90 per FEU at the Panama Canal -- as well as geographical limitations.  The transit time for cargo originating north of Hong Kong is too long to make the Suez route viable.  All-water cargo volumes are expected to increase again this year as several carriers add services according to Mongelluzzo.  Yangming Marine Transport Corp., which has had a Panama Canal service for more than 25 years, will add a second string of ships in April or May.  Yang Ming will share capacity with China Ocean Shipping Co. and "K" Line Inc. CMA/CGM of France and Kien Hung of Taiwan will start an all-water service about the same time.  Maersk Sealand expects future growth in all-water East Coast services to come primarily from the Suez Canal route, which can accommodate mega-ships.”

138.  Tirschwell, Peter. “An Unmistakable Message to West Coast Ports.”  Journal of Commerce on the Web 7 April 2000. 24 August 2000 <http://joc.com>.

“Lillian Borrone, the New York/New Jersey port director, noted that East Coast ports' share of containerized trade with Asia grew from 18.9 percent in 1998 to 19.6 percent last year.  "As trade between New York/New Jersey and Asia continues to strengthen, we expect to see more ocean carriers sail the all-water routes to New York, using both the Panama and Suez canals," she said.”

139.  Tirschwell, Peter. “Carriers choose Panama Canal over Suez as China Trade Grows.”  Journal of Commerce On the Web 28 March 2000. 25 August 2000 <http://www.joc.com>.

“Intermodal cargo can be moved from Hong Kong to New York in as little as 17 days according to Tirschwell.  That's part of the reason that when the Port of New York and New Jersey reported earlier this month that its imports from China grew 19 percent in 1999 versus 1998, the numbers included declines in time-sensitive goods such as footwear, clothing and sporting goods.  The trends also point to a potential shift in all-water volumes from the Suez to the Panama Canal, carrier executives say.  Although the all-water option is slower by several days than moving goods through the West coast, the all-water option is less expensive for shippers.”

141.  Mongelluzzo, Bill. “Growth in containerized imports slows at Los Angeles-Long Beach.” Journal of Commerce on the Web 20 October 2000. 20 October 2000 <www.joc.com>. 

“Despite overall record cargo volume this year, marine terminals and intermodal rail transfer yards in Southern California have been able to avoid the severe congestion that occurred three years ago following the service meltdown on Union Pacific Railroad.  The Port of Los Angeles this past year attracted about a dozen new container lines, so its cargo volume has consistently increased in the 20% to 30% range all year.  But containerized imports through Los Angeles in September were actually lower than in August and in July, leading some importers and carriers to speculate that retailers brought their holiday merchandise in from Asia earlier this year to avoid possible congestion at West Coast ports.”

142.  Reyes, Brian. “Shortsea sector must grasp nettle on cargo.” Lloyd’s List on the Web 10 October 2000. 13 February 2001.  .

“Shortsea operators must actively try to tempt cargo away from road and rail transport if the sector is to realize its full potential, a UK ports conference has been told.  The country’s Freight Transport Association urged shortsea operators to develop services with port authorities and other participants in the supply chain to allow them to compete with other modes.  ‘The time has never been better for shortsea operators to tempt business away from land-based modes,’ said Neil Johnson, the FTA’s global logistics manager.  ‘With increased congestion on the roads and railways, together with the rising costs of using such services and growing political will to use new modes, the future should be bright for shortsea operators,’ he told the British Ports Association’s annual conference.  But Mr. Johnson said shortsea operators must ‘be able to guarantee delivery times, offer a good frequency of service and develop door-to-door products together with conventional modes’.”

143.  Porter, Janet. “Liner Briefing - MOL ships to serve US east coast link.” Lloyd’s List on the Web 23 January 2001. 08 March 2001  .

“The eight panamax ships ordered by Mitsui OSK Lines last month for deployment in the transpacific trades are likely to be put into an all-water service to the US east coast.  Growing concern about US railroad congestion is persuading more carriers to move cargo directly to the US eastern seaboard rather than using intermodal services from the west coast.  MOL is a member of the New World Alliance, along with APL and Hyundai Merchant Marine.  The 4,500 teu panamax ships will be delivered during 2003.”

144.  Porter, Janet. “Evergreen phasing out Pacific service.” Lloyd’s List on the Web 13 June 2000. 07 March 2001  .  

“Evergreen’s service between Japan, Korea and the US west coast is to be phased out over the next six weeks with most ports to be covered by other vessel routings.  This service had called at Hakata, Pusan, Yokkaichi, Shimizu, Tokyo and Los Angeles.  Shimizu and Pusan will now be covered by the round-the-world eastbound service, which is dropping Rotterdam from its schedule to improve transit times.  The L-type ships in the Korea, Japan, US run will be transferred to Evergreen’s new service between Asia and the US east coast that begins later this week.  The east coast ports served will be New York, Norfolk and Savannah.  Six L-type ships of 1,810 teu and three G-type of 2,728 teu will be deployed in the 63-day round trip voyage.”

145.  Tirschwell, Peter M. “The Coastal Option.” Journal of Commerce on the Web 07 August 2000. 27 March 2001 <www.joc.com>.

“If U.S. international container trade doubles by 2010, as one prediction holds, an additional 11,000 40-foot containers will need to be delivered daily on both the east and west coasts.  Who will handle that traffic? Some of it could move by rail.  CSX Transportation and Norfolk Southern Railroad predicted that enhancements to their intermodal capacity following their 1998 breakup of Conrail would allow roughly an additional 1,100 FEUs per day to be transferred from road to rail.  That would still leave nearly 10,000 FEUs to be moved somehow.  Trucks would handle that traffic at some point.  But some of the cargo could move efficiently on water along the coasts, especially if steamship lines continue to introduce mega-container ships with limited port calls, increasing the need for coastal feeder ships.  That prospect is sparking growing interest within the U.S. maritime community.  Since early this year, a working group in Washington comprised of ports, domestic ocean carriers, maritime labor and shipyards has been meeting to discuss coastal waterborne transportation.  A premise of working group is that while services would be provided by private companies, governmental policy can have an important impact on the development of the coastal intermodal system in coming years.  The group's meetings have taken place against a backdrop of a report issued in April by the military sealift committee of the National Defense Transportation Association, which devoted a section to opportunities in coastal transport.  It noted that the U.S. "can't stand idly by while the demand for increased coastwise services grows exponentially, only to watch those services be provided by foreign vessels because no U.S.-flag vessels were available."  Separately, the Maritime Administration and the Defense Department issued a report in June recommending a coastwise network of low-cost domestic terminals located adjacent to deep-sea terminals, and a fleet of high-speed cargo ferries operating on set coastal routes.  The working group, chaired by Washington maritime attorney Michael Roberts, has yet to make any formal recommendations or propose legislation.  It has spent much of its time studying successful examples of government stewardship of coastal transportation, particularly in Europe and Japan where major strides have been made to shift cargo from land to water modes.  Unlike the system in the U.S., Japan's coastal transport system handles domestic trailers and containers, as well as passengers and automobiles, using 24-knot "RoPax" vessels.  The members of the group agree broadly on three points, Roberts said.  The first is that there is a large market need that can be identified over the next decade due to the potential doubling of container trade and the growth of hub ports as container ships get larger.  The second is that governmental policy will influence how the coastal market develops. The third is that the arguments for putting cargo on water wherever possible are compelling, for environmental, safety, economic and national security reasons.  Waterborne transportation takes trucks off the road, which helps the environment and can improve highway safety.  It also reduces demand on a trucking industry already hamstrung by a severe shortage of drivers.  Economically, it has always been more efficient to move cargo by water than over land.  The national security rationale is that more trained seafarers and shipyard know-how would result, benefiting the U.S. military in a national emergency.  "There is a train wreck coming," Roberts said.  "We're planning for it on the roads.  We're planning for it on the rails.  There has to be a maritime component."  Coastal freight transport in the U.S. today is dominated by bulk commodities such as petroleum, grain and fertilizers, according to the Defense Transportation Association.  Intermodal is a small, though growing, component.  Matson Navigation Co. operates a coastal shuttle on the West Coast, and Columbia Coastal Transport on the East Coast is growing steadily and is projected to handle more than 200,000 TEUs this year.  Roberts said the group's discussions so far have been very general. It has consciously avoided touchy subjects to keep the various parties participating.  The group hasn't delved into the questions of whether barges or self-propelled vessels, or roll-on, roll-off vs. lift-on, lift-off are preferable for the coastal trades, for example.  Nor has it concluded whether policy emphasis should be focused on international vs. domestic cargo, though nearly all of the traffic moving with carriers such as Columbia Coastal along the East Coast is international.  The group hasn't examined which ports would benefit most from improved coastal transport, though the Port of New York and New Jersey is said to be taking a strong interest in the group's work.  An effort by the government to promote coastal transport could have several components, Roberts said.  It could include initiatives for new port facilities, connections between ports and highways, and better links between marine terminals.  It could provide additional incentives for vessel construction and eliminate disincentives to using coastal transport, such as the Harbor Maintenance Tax.”

146.  Frank, Jerry. “Loss reversals herald TMM port expansion programme.” Lloyd’s List on the Web 28 February 2001. 08 March 2001  .

“Newly consolidated Mexican logistics giant Transportacion Maritima Mexicana yesterday said large-scale port and terminals expansion plans were on course as annual results revealed a reversal of heavy losses into a steady of $14.7m profit.  Fourth quarter results also overturned a $3.5m loss over the same period in 1999 to a modest $22.3m profit.  Overhauled TMM dragged itself out of $146.3 net income losses in 1999 with a major shake-up earlier this year that saw consolidation with national rail operator Transportacion Ferroviaria Mexican and the formation of new parent company Grupo TMM.  Port operations bounced back with a gross profit margin of almost 50% over the full year with the Manzanillo facility’s two berths handling 18,000 container movements per month, with majors Maersk Sealand calling on a weekly basis.  Restructuring of the premier Latin American diverse transport group over the next half-year has already triggered a $3.2m tax refund and a $8m reserve.  Costly derailments and congestion on the group’s TexMex rail line in the last quarter slashed $60m Ebitda (earnings before tax and depreciation amortisation) predictions down to $58m over the 12 month period.  Operating income in the fourth quarter climbed to $6.5m compared to just $513,000 in the same quarter the previous year, helping to bring the overall figure for the year to $31m compared to $24m in 1999.  Administrative costs for the year up to December 31 dropped slightly to $48.1m from $50.3m the year before.  Interest costs are expected to nose dive from $59 last year to to $40m in 2001.

Last year TMM tied up with US-based port operator Stevedoring Services of America under holding company TMM Ports and Terminals in a bid to develop its Mexican port interests.”

147.  McLaughlin, John. “New York goes Dutch.” Lloyd’s List on the Web 02 December 2000. 08 March 2001  .

The Port of New York and New Jersey has tied up a co-operative agreement with the Port of Rotterdam aimed at improving inland cargo distribution from the US east coast’s biggest port.  Under an agreement finalised at the Intermodal 2000 conference in Genoa, the Port of Rotterdam and Dutch inland distribution specialist Ridderhaven will “provide information and data on its distribution system and guidance on how a similar system could be developed and implemented in the New York-New Jersey region”.  Richard Larrabee, director of port commerce at the Port Authority of New York and New Jersey, said: “The Port Inland Distribution Network will be the key to our goal of improving the productivity of our existing marine terminals as well as reducing congestion and air emissions on our roadway network through a greater use of barge and shuttle rail systems.”  Rotterdam has extensive experience of inland distribution networks, with 22% of its 3m-plus containers distributed to its regional market by private barge and rail operators.   New York and New Jersey aims to profit from that experience in developing its own network as part of a wide-ranging port redevelopment plan.”

148.  Reyes, Brian. “Short sea shipping offered as green alternative to road and rail transport.” Lloyd’s List on the Web 09 October 2000. 08 March 2001  .

“Luigi Ranauro, manager short sea trade for the Italian line, said: “Short sea shipping should not be seen as single modal alternative for freight transportation, but should be seen as a complement to road and rail transport that can optimise efficiency levels in terms of collection and delivery of freight.  “Short sea shipping should be promoted as the only valid alternative to decongest saturated road and rail networks, resulting in economic, social and ecological benefits,” he added.  Mr. Ranauro based his observations on a recent study commissioned from Friends of the Earth (Italy) by Confederazione Italiana Armatori, the Italian shipowners confederation, and the European Community Shipowners Association.  The Friends of the Earth study compared the relative impact of all three transport modes on selected routes, using hypothetical shipments.  To transport 1,485 tonnes of cars and mixed freight between the port of Pasajes, Spain, and Flushing, Holland, the study estimated that 204 trucks, or seven 102-wagon trains, would be needed.  By contrast, it concluded that one “small” ro-ro ship could handle the same shipment.  In the same way, it calculated that 291 trucks or 15 220-wagon trains would be needed to carry 7,451 tonnes of mixed freight from Zeebrugge to Immingham, UK a shipment that could be carried by a single “medium” ro-ro ship.  Mr. Ranauro drew attention to the “external costs” which the transport industry imposes on society, highlighting – as have previous European Union policy documents – gas emissions, atmospheric and noise pollution, congestion and accidents.  External transport related costs in the European Union, he told delegates, amount to thousands of millions of euro every year.  While transport users earn the profit from freight operations, these costs are shouldered by governments and society as a whole.  “The high external costs of transport create serious problems, not only environmentally and socially but also from the economic and social points of view,” the study found.  They alter the fair competition between the various modes of transport, favour irrational mobility trends, penalise more sustainable products and services and reduce productivity and efficiency of labour in the economic system.  Ultimately, they impoverish environmental resources and divert public resources from more useful projects.  Maritime transport, Mr Ranauro said, could lessen the impact of these external costs.  Gas emissions would be reduced by a shift from road and rail to sea, as would air and noise pollution, there are fewer serious accidents at sea than on European road and rail networks, a modal shift would go a long way to reducing maintenance costs associated with those same networks.  He also said the cost of investing in road and rail systems was huge compared to sea transport, though he failed to mention investments which many ports would likely have to make to ensure the smooth land/sea interfaces which today’s just-in-time logistics systems would require in order to make the short sea option viable.”

149.  McLaughlin, John. “CSX in half year slide.” Lloyd’s List on the Web 29 July 2000. 08 March 2001  .

“CSX Corp, in its second three months of operations since it sold off its international liner business to AP Møller, posted earnings of $55m for the quarter, down sharply on the $114m recorded in second-quarter 1999.  Of the marine businesses remaining to it, the terminal operation performed well but the domestic container business barely scraped into the black, raising further questions about its future.  The quarterly earnings took net income for the first half of 2000 to $84m, down from $140m in the same period last year.  Revenues, meanwhile, sank over both periods, from $2.616m to $2,190m for the second quarter and from $5,157m to $4,337m for the half.  As the company pointed out, however, the results for this year reflect seismic changes at the company.  Quite apart from the sell-off of Sea-Land’s international operation last December, and the subsequent drop in income and revenues, CSX has had a tough time integrating the Conrail acquisition it made jointly with Norfolk Southern.”

150.  McKay, Rob. “Business Digest - US rail freeze move.” Lloyd’s List on the Web 15 June 2000. 08 March 2001  .

“A US court of appeals has pressed federal regulators to explain why they imposed a 15-month moratorium on rail mergers, a ban that has halted the approval of one pending merger and could limit future consolidation in the industry.  The issue being considered by the court centres around whether the US Surface Transportation Board, which imposed the freeze in March, has the authority to conduct such a move.  Roy Englert, representing Canadian National Railway and Burlington Northern Santa Fe, which are challenging the moratorium, said in court that the move by regulators went beyond the power given to it by law.”

151.  Kaufman, Lawrence. “Canada ports may gain edge over US ports.” Journal of Commerce on the Web 29 March 2000. 29 March 2000 <www.joc.com>.

“The proposed combination of Burlington Northern Santa Fe Corp. and Canadian National Railway Co. - stalled for now by the Surface Transportation Board - would create an intermodal powerhouse if it ever came into being.  The board imposed a 15-month moratorium on consideration of any merger between major railroads while it develops new rules for rail mergers.  But the two railroads have no plans to abandon their pursuit of the merger.  Burlington Northern Santa Fe already is a huge intermodal railroad that serves the entire Pacific Coast range of ports.  It received 27% of its $8.9 billion revenue in 1998 from intermodal.  Intermodal hasn't been quite so important for the smaller Canadian National, which received 16% of its $3.5 billion in 1998 revenue from intermodal. Combined, the two railroads expect to generate 24%, or $3 billion, of their $12.5 billion revenue from intermodal.  The BNSF-CN merger would be international and that increases the concerns of ports.  Which railroad will dominate the combination?  Will the combined operation favor the ports of one country over those of the other?  There are few facts to answer those questions, but lots of concerns.  U.S. East Coast ports are worried that Halifax, Nova Scotia, will benefit from new, improved rail service that will draw container traffic away from Atlantic ports such as New York, Boston, Baltimore, Norfolk and even Charleston, S.C.  Similarly, West Coast ports such as Seattle, Tacoma and Portland, and even San Francisco Bay fear that Vancouver, British Columbia will be favored with better rail service and more favorable rates.  Ports fear the railroads that serve them will set rates that favor other ports, while railroads resist any action that would inhibit them acting in their own self interest.  Perhaps nowhere is the competition between ports more clear than in the Pacific Northwest, where Seattle and Tacoma both are served by BNSF and Union Pacific, and Vancouver is served by CN and Canadian Pacific, as well as BNSF.  Will U.S. ports be able to compete with Canadian ports - both West Coast and East Coast?  Will the merged railroad have the same incentive to invest in infrastructure for efficiencies and capacity enhancements?  Will cargo be diverted from one port to another based on differential pricing?  Other ports are concerned that mega-railroads could displace entire markets by rerouting cargo, leaving capital-intensive ports with stranded investments.  Railroads just run trains and do not favor one port over another; if the traffic is there, railroads are happy to provide the ports with the appropriate level of service.  The Virginia Port Authority has a strong relationship with Norfolk Southern, and both port and railroad fear losing traffic to Halifax in the BNSF-CN merger.  Halifax, which would have single carrier service through the Midwest to the West and Southwest if BNSF and CN combine, figures to gain traffic.  The Port Authority of New York and New Jersey fears its two principal railroads, Norfolk Southern and CSX, will be weak competitors for BNSF-CN -- and Halifax.  In comments filed with the STB, the port authority pointed out that import-export traffic by rail through the Port of New York and New Jersey virtually disappeared until a resurrected Conrail became an intermodal powerhouse in the last decade.  The port authority said the rail service problems in the East will require time to fix because NS and CSX lack financial resources with which to provide infrastructure improvements.  The proposed BNSF-CN merger is a complicating factor in the eyes of the port authority.”

152.  Thomas-Aden, Karen. “Contract for Aden Distripark.” Lloyd’s List on the Web 22 December 2000. 13 February 2001  .

“Yeminvest has awarded the contract to build a distribution and warehousing centre at Aden Container Terminal to local firm Al Shafa Contracting and Holding Company.  Building work will start on Aden Distripark in the new year and port officials expect it to open for business by the autumn.  While Yeminvest, charged with developing Aden Container Terminal, says it is too early to name prospective tenants, it has described the number of inquiries as ‘very encouraging’.  Aden Distripark will install warehousing, distribution and industrial companies, and Yeminvest is particularly keen to attract manufacturing businesses that will generate additional local traffic for the terminal.  The site has been designed by PSA Corporation, which holds a 60% stake in Yeminvest, and specialist Singaporean industrial developer Jurong Town Corporation.  It will have its own power and water supplies and sophisticated communications systems.  Tenants will be able to commission purpose-built units and take flexible packages of land ranging from 5,000 to 20,000 sq m.  The distripark is within the area designated as part of Aden Free Zone and is just 200 m form Aden Container Terminal, the fledgling regional container hub operated by PSA Corporation under a separate management contract.  Yeminvest hopes to attract a mixture of business from local shippers and manufacturers targeting the export market to foreign investors attracted by the free zone’s strategic connections and financial incentives.  At present the local market generates just 26% of Aden Container Terminal’s traffic, say port officials.  Yeminvest will work closely with the authority to attract investment in the project.  Throughput at the port of Aden is projected to reach 250,000 teu by the end of the year, rising to 400,000 teu by the end of 2001.  The increase will be driven in part by the decision of the New World Alliance to adopt Aden as its regional transhipment hub for the CEX service between northern Europe and China.”

153.  Mongelluzzo, Bill. “Asia-East Coast All-Water Route Attracts More Liner Services.”  Journal of Commerce on the Web 4 February 2000. 28 August 2000 <http://www.joc.com>.

“According to Bill Mongelluzzo from the Journal of Commerce, after years of concentrating on intermodal service through West Coast ports, trans-Pacific carriers are showing more interest in all-water services to the U.S. East Coast.  The development is driven by growing U.S. trade with Asia, construction of large distribution centers on the East Coast, lower freight rates for all-water service, and concern about congestion and labor instability at West Coast ports.”

154.  Koenig, Robert. “Hamburg Sud to deploy six new ships in South America trade.” Journal of Commerce on the Web 7 December 2000. 27 February 2001 <www.joc.com>.

“Hamburg Sud plans to deploy all six of its new container vessels in services that the German line and its partners operate between the U.S. East Coast and South America's east coast.  Five of Hamburg Sud's six new 3,800-TEU container vessels - built in South Korea by Samsung Heavy Industries - are scheduled for delivery next year.  The sixth is expected to start operations in February 2002.  The current Interamericas services use six vessels averaging about 2,400 TEUs.  In an announcement today from its Hamburg headquarters, the north-south carrier also said that it is working on a plan that would restructure the three Interamericas services that it operates with partners Alianca, CSAV, Libra, Maersk Sealand and P&O Nedlloyd.  The main goal will be to offset the additional capacity of the new ships by withdrawing smaller vessels from the Interamericas services, Hamburg Sud said, noting that it wasn't increasing capacity in the lane.  Hamburg Sud executives say the new ships, with 800 plugs for reefer containers and a top speed of 23.5 knots, will help the carrier and its partners to "considerably enhance the quality of the Interamericas service."  Earlier this week, Hamburg Sud also announced that it planned to intensify cooperation with Hapag-Lloyd AG, which will become a partner starting next month in Hamburg Sud's two existing services on the route between Europe with South America's east coast and the Caribbean.”

155.  “Plans for super-large ships such as Samsung Heavy Industries' 8,770 TEU-ship will intensify industry competition.” Informare on the Web 09 March 1998. 27 February 2001 <http://www.informare.it/news/review/1998/st0320.asp>.

“The other efficiencies sought by the industry -- or forced upon it -- result from consolidation.  Recent years have seen the emergence of new, commercial consortia, or grand alliances.  These allow owners to provide customers with cargo space aboard each others' ships.  Effectively, this means that a smaller number of ships is required to shift a given volume of cargo.  It also means that the largest ships can be deployed on the longest routes. This creates a trickle down effect as these ships then force the previous generation of largest ships onto the next-longest routes, and so on down the scale.  In the past two years, the process of consolidation has moved beyond the formation of alliances.  Mergers and acquisitions have been the order of the day.  As a result, the league table of the top 10 container fleets, in terms of total TEU, now appears to be very different.”

156.  Wainwright, Dale. “CP Ships swoops for seven boxships.” Lloyd’s List on the Web 17 August 2000. 05 March 2001  .

“Expansion minded CP Ships has acquired seven panamax-dimensioned containerships on the secondhand market in transactions worth more than $150m.  Lloyd’s List understands that the company’s appetite for additional secondhand containership tonnage has not yet been satisfied and that further acquisitions could be set to follow.  CP Ships is thought to have paid in the region of $120m-$129m to acquire six of Taiwanese operator Yangming’s seven-strong P class containerships.  Yesterday the company concluded the purchase of CMA-CGM’s nine-year-old panamax containership, the CGM Pascal .  It is believed that CP Ships may have paid in the region of $26.5m for the ship, which at one stage was on the verge of being sold to another owner.  Built at Samsung Heavy Industries in 1991, the 43,714 dwt vessel has a container carrying capacity of 2,690 teu.  She has previously been operated by Nedlloyd as the Nedlloyd Pascal .  Yangming’s entire batch of P class ships was built at China Shipbuilding Corp in Taiwan between 1986 and 1988. All six ships offer a container carrying capacity of 3,266 teu.  “The sale appears to be going against the general trend,” was how one leading containership industry analysts reacted to the news.  He said the current trend was for owners to try to divest from mainstream ship ownership, instead preferring to invest the money in other parts of their operation.  However, a recent report from the New York-based Commonwealth Group forecasts an increase in second hand purchase activity for vessels of more than 1,000 teu caused by an increasing pressure on tonnage and a steady demand for chartered vessels.  Furthermore, it says this demand will primarily emanate from small to mid-size liner companies because of what it describes as “an increasing reluctance to rely on the charter market.  Lloyd’s List understands that the Yangming P class containerships will initially be chartered back to the Taipei-based owner for up to six months.  After this period the ships will be put into service by Americana Ships, which manages both Lykes and TMM Lines.  However, it remains unclear as to where the six ships will be deployed.  CP Ships assumed 100% control of Americana Ships last December when it bought the half stake held in the company by its joint venture partner Transportacion Maritima Mexicana.  The acquisition of the seven ships will boost the CP Ships fleet to close to 90 vessels either owned or chartered.  The UK-based liner operation also has a trio of 4,115 teu containerships on order at Daewoo Heavy Industries in South Korea, via its Contship Containerlines subsidiary.  Scheduled for delivery in 2002, the vessels will be deployed in the Europe to Australasia trades alongside seven similar ships ordered at Samsung Heavy Industries by P&O Nedlloyd.”

157.  Porter, Janet. “Liner Briefing - APL reviews Indian services.” Lloyd’s List on the Web 16 January 2001. 05 March 2001  .

“The largest containership ever to call at an Indian port arrived last week when the 4,900 teu APL Arabia docked at Nhava Sheva International Container Terminal outside Mumbai.  The ship, one of APL’s latest new buildings, is part of the West Asia Express service between the Middle East and Asia, and calling at Fujairah, Jebel Ali, Colombo, Tanjung Pelepas, Singapore, Kaohsiung and Hong Kong.  The Nhava Sheva call is part of an evaluation by APL and the terminal operator about the possibility of regular services by larger ships in the near future.  Khorfakkan sees liner growth.  The 3,800 teu Al Sabahia operated by United Arab Shipping Co delivered the millionth container to be handled by Khorfakkan last year when the ship docked in early December.  The port is now projecting further growth this year as container traffic in the region continues to expand.”

158.  Richardson, Paul. “So, what happened to all those new shipbuilding orders?” Journal of Commerce on the Web 22 April 1999. 05 March 2001 <www.joc.com>.

“P&O Nedlloyd is in the market for a another batch of the "world's largest container ships" to match its earlier ordering spree for four from Japan, but right now, not a lot is moving on the shipbuilding front anywhere to raise even the slightest of interest.  Whatever happened to the expected batch of new orders that the gurus thought would break the 10,000-TEU ship barrier?  Shipping lines, in fact, are responsible entities, not greedy vagrants searching for the cheapest deals, scrounging for the best of the finance packages and turning their backs on the economies of industry.  Today's breed of shipping line is a different creature: One that does not act irresponsibly by swamping the marketplace with unwanted capacity, one that does not have a yen to cash in on the volatile won or the shaky chaebols of South Korea and order new ships that only have a book value and little market potential.  Those lines that make it under their own steam into the next millennium are a new breed, one that has finally realized the meaning of the word "responsibility."  Just when everyone thought Asia's economic problems would spur an onrush of new shipbuilding orders, little happened with the exception of a few big prizes in the first half of last year.  Witness, for example, Maersk Line's move to pull a couple of 1,300-TEU ships out of the trade linking Europe with the west coast of South America, favoring instead to transship this cargo through the U.S. East Coast.  Also witness the decision by Mediterranean Shipping Co. to dump its direct service between Europe and the east coast of South America in favor of transshipping over places like Las Palmas in the Canary Islands.  Neither line has won many friends with their approach.  But apart from one or two instances of late, don't knock them too much.  Kvaerner is building five 5,000-TEU ships for P&O Nedlloyd.  Daewoo's order book might not have many container ships, but it does have a lot of orders of different sorts.  The rush of container ship orders in South Korea and eastern Germany several years ago -- more than 50 medium-sized vessels have been mentioned -- defied the critics by finding homes on the charter market. But they did that courtesy of rock-bottom rates.”

159.  Richardson, Paul. “China Shipping deploys its first post-Panamax ships in Pacific.” Journal of Commerce on the Web 7 December 2000. 7 December 2000 <www.joc.com>.

“The China Shipping Group company, which operates its container shipping business under the name China Shipping Container Line, has just received the first two 5,500-TEU vessels - the CSCL Shanghai and CSCL Hong Kong.  The former will start its maiden voyage on Friday from Xiamen.  The CSCL Shanghai, built by South Korea's Hyundai Heavy Industries and chartered from Greek shipowner Costamare will replace a 2,800-TEU vessel on the Asia-America South Service (AAS).  The smaller ship will switch to the all-water service - known as the Asia-America East Service.  The CSCL Shanghai will depart Xiamen and call Yantian, China; Hong Kong; Kwangyang, South Korea; Los Angeles; Vancouver, British Columbia; Yokohama Japan; and Xiamen.”

160.  Hope Moorer, Georgia Ports Authority

“I spoke with their Director of Imports today who told me that their first distribution in Savannah was started in 1976.  They've been in their present location since 1988 and, actually, are looking to expand their facility in Savannah.”

Distribution Centers in close proximity to GPA

*              The Walmart distribution center in Statesboro was expanded by 500,000 square feet in September 1999.

**           The Lowes distribution center was moved from the Atlanta area to Valdosta to be in closer proximity to GPA’s container port facilities.

***         Exact square footage is not known.  Family Dollar goods are distributed through American Port Services existing facilities.

161.  “Tilbury preparing way for first tenant at new distribution park.” Lloyd’s List on the Web 08 February 2001. 08 March 2001 <www.lloyslist.com>.

“Construction work is under way at the Port of Tilbury’s new Fortress Distribution Park, where a 200,000 sq ft warehouse is being provided for the park’s first tenant, the Westerlund Group.  The warehouse, for the storage and distribution of paper products, will be available in September, said Port of Tilbury deputy managing director Perry Glading.  The Forest site is being developed as part of Tilbury’s aim to become a major distribution centre.  Although potential tenants do not have to bring cargo across the quayside, any that do are an obvious bonus.  Westerlund directly sources its business through the port and its development is seen as an advantage for both parties.”

162.  Landon, Felicity. “Bridge over well-traveled waters.” Lloyd’s List on the Web 19 September 2000. 08 March 2001  .

“Earlier this year ABP completed a 27-acre extension to Volkswagen Group UK’s northern distribution centre, which is within the port of Grimsby.  This involved the construction of a special underpass to allow the company’s car imports to be moved from the main part of the terminal to the new area without having to cross the public road.  Volkswagen now occupies a total of 100 acres at the port.”

163.  “UK hauliers increase pressure over diesel cost.” Lloyd’s List on the Web 28 August 2000. 08 March 2001  .

UPS Logistics Group has won a five-year $150m contract to manage National Semiconductor’s global supply chain.  A new dedicated global distribution centre in Singapore will manage the fulfilment of more than 450,000 semiconductor orders a year, with an average delivery time of 48 hours.  It also has the capacity to receive an average 12m inbound chips per day.  National Semiconductor expects to ship 4bn products this year, twice the amount in 1999.”

164.  Stares, Justin. “Panama logistics hub tender.” Lloyd’s List on the Web 03 July 2000. 08 March 2001  .

“A Logistics hub a third of the size of Panama city will be put out to tender in September as part of ambitious plans to turn the central American nation into a multimodal transhipment centre of world import.  The area on the Pacific side of the canal will include a new deepwater box port and a former US air force base which has already attracted the interest of courier giant DHL.  After examining various options, the Interoceanic Regional Authority (ARI) , which is charged with disposing of land and facilities handed over to Panama by the US government, has decided to group together a number of projects in an attempt to create a regional distribution centre.”

165.  Nadkarni, Shirish. “Multinationals put their money on Tuticorin as hub port winner.” Lloyd’s List on the Web 01 July 2000. 08 March 2001  .

“Anyone driving into Tuticorin is struck by the barren landscape and has to ask what induced canny international port operator PSA Corporation to bid for a container terminal at this apparently God- forsaken port.  On either side of the national highway, the land rolls away for miles with neither a tree nor man-made structure in sight.  And yet, in this wilderness, four American companies purchased huge tracts of land in early April and expect to set up regional distribution centres.  Their negotiations with the Tamil Nadu Industrial Development Corporation took place immediately after the budget announcement of finance minister Yashwant Sinha that Special Export Zoneswere to be set up in the country; and that Nangbari, in the vicinity of Tuticorin port, would be one such location.  Transactions took place at ludicrously low rates; and the Americans took full advantage of their deep pockets to pick up large tracts of land.  Two of them will set up software manufacturing activities; the other two are in the garments trade.  It is understood that companies from Singapore, Hong Kong and Malaysia are also eyeing the area.”

166.  Porter, Janet. “Box bottleneck in US.” Lloyd’s List on the Web 17 January 2001. 08 March 2001  .

“More than a quarter of containers handled by US ports are probably empty.  In the trade lane between the US and Asia alone, empties accounted for more than 4m teu last year, Drewry Shipping Consultants estimates.  At present, twice as many full loads are moving into the US from the Far East than are being exported, Drewry analyst John Fossey told a conference in Beijing.  On a global basis, approximately 20% of all box movements comprise empty equipment.  The London firm calculates that the repositioning of empties probably cost the container shipping industry more than $13bn in 1999.  Last year, though, saw “a massive increase” in empty units building up in the US.  Options for dealing with this problem range from exploiting the synergies obtained through alliances to the formation of a global network of services, the use of specialist interchange facilities, or freight rate compensation programmes.  However, yield management systems “appear to be the best answer in dealing with the problem”, Mr Fossey believes.  Addressing the ‘Shipping to the Challenges of the New Millennium’ conference, Mr Fossey said yield management systems address the fundamental issue of how much it will cost to move a particular cargo, and therefore what revenue and profit it will generate.  ‘In other words, getting a container back to a region of demand quickly, even if it is empty, can often contribute a much better result than holding it back and/or repositioning it inland for cargo, which could then prove unremunerative’.”

167.  Porter, Janet. “Taca acts on US-Europe freight crisis.” Lloyd’s List on the Web 15 December 2000. 13 February 2001  .

“Negative ocean freight rates on the trades between the US and Europe have forced carriers to take some urgent and radical action.  Members of the Trans-Atlantic Conference Agreement are to inject greater transparency into the rate-making process in order to impress upon shippers just how bad the market is.  Instead of quoting all-in rates, Taca lines will break down prices so that customers can easily see what they are paying for the terminal handling charge, bunker surcharge, container service charge and, most importantly, the ocean leg of a shipment.  Eastbound transatlantic rates are now so low that carriers are effectively moving cargo from the US east and gulf coasts to Europe for next to nothing.  Indeed, in some cases, the ocean rate is effectively negative.

The worst market conditons that most veterans of the Atlantic trades can recall follows a big decline in eastbound volumes.  By August, eastbound liftings were about 5% down on a year earlier, according to Taca statistics.  The trade imbalance between eastbound and westbound liftings is now approaching 40%.  Taca lines are hoping that by showing customers exactly how little they are paying for ocean transport, they will be able to persuade shippers to accept higher freight rates.  However the initiative, agreed at a Taca principals’ meeting in London Wednesday, is not obligatory, with carriers free to quote all-in rates when negotiating confidential contracts with their customers.”

168.  Mongelluzzo, Bill. “High-tech emerging as a major US export.” Journal of Commerce on the Web 29 March 2000. 29 March 2000 <www.joc.com>.

“High-tech products accounted for 26% of total US overseas trade in 1999, up from 21% in 1993.  The phenomenal growth of the high-technology economy of the United States is being mirrored among many of the nation's leading trading partners, and high-tech products are now the largest U.S. merchandise export.  U.S. companies last year exported $181 billion worth of high-tech products such as computers, semi-conductors, communications equipment and electronic components.  Proponents of the North American Free Trade Agreement can also look to the report as an affirmation of the success of the free-trade pact.  Canada and Mexico now rank as the top two markets for U.S. high-tech exports.  Even though Canada is a relatively small country in terms of population, U.S. high-tech exports to that country totaled $29.3 billion.  In addition, a number of countries are larger than Mexico, or have a higher per-capita income, but Mexico is the second-largest market for U.S. high-tech products.  Exports to Mexico last year totaled $21.9 billion.  The Japanese market ranked third at $16.1 billion.  By contrast, the technology trade with Asia is marked by a high volume of Asian exports to the United States but lagging Asian imports of U.S. products.  Asia is by far the largest exporter to the United States, accounting for two-thirds of U.S. high-tech imports.  Countries such as Japan, South Korea, Singapore, Taiwan, Malaysia and the Philippines are growing markets for U.S. high-tech exports.  But due to weak high-tech infrastructure, lagging education, lower per-capita income or restrictive government policies on imports, most other countries in the region are more export than import-oriented.  The U.S. high-tech trade with the rest of the world is, in total, a deficit trade.  U.S. imports last year were $220 billion, compared with $181 billion of high-tech exports.  Last year, the United States exported at least $1 million of these products to 172 nations.  U.S. high-tech exports to China doubled from 1993 to 1999, to $3.3 billion, even though China has a low percentage of per-capita computer ownership and Internet use.  By contrast with the China trade, the United States maintains a large surplus with two of the English-speaking countries of the Asia-Pacific region, Australia and New Zealand.”

169.  “Hudson's Maiden Voyage Brings Savannah's Port Largest Capacity Ship Yet.” The Business Report & Journal May 2000. May 2000

“The largest capacity container ship yet to call on the Port of Savannah made the Georgia Ports Authority's Garden City Terminal is first port of call on its maiden voyage on May 26, 2000.  But the P&O Nedlloyd Hudson is more than just a big ship.  It represents the evolution of container shipping to ever-larger vessels and showcases the dispute over deepening the Savannah River's channel.  The German-built, UK-flagged vessel is a post-Panamax ship, meaning it is too wide to use the Panama Canal.  The Hudson can carry as many as 16 containers across its width.  Ships this wide also require more modern cranes for unloading; for example, 11 of 13 cranes at Savannah's Garden City terminal are post-Panamax.  The ship has a maximum design deep draft of 45.93 feet.  Had it been loaded to capacity, it is unlikely it would have traveled to the Savannah port, where the channel has a present depth of 42 feet. (Tides impact the navigability of the channel.)   As it was, the 912-foot long Hudson came in virtually empty, with only four 20-foot containers on board.  It can carry as many as 5,468 20-foot equivalent units (TEUs), a standard of measurement in container shipping. (Some containers are 20-foot, and others are 40-foot, etc.)  The ship loaded 2,392 containers, most of them empty and being shuffled to load elsewhere, before its departure.  It arrived in Savannah from the German shipyard Kvaerner Warnow Werft Warnemunde and was to return to Germany with its load of containers.  The shipping industry is evolving toward larger and larger ships.  At the center of the debate over allowing the deepening of the channel is the environmental balance for the river and surrounding wetlands. “

170.  Barnard, Bruce. “Post-2000 forecast: More huge ships.” Journal of Commerce on the Web 15 October 1999. 05 March 2001 <www.joc.com>.

“Giant containerships able to carry more than 7,000 TEUs will tighten their grip on the global market at the beginning of the millennium when nearly 36 of the behemoths will hit major trade lanes, a new study says.  And that should make U.S. ports wake up to the fact they are going to have to invest "hundreds of millions" to be able to handle these giants, said Rogan McLellan, senior analyst with Clarkson Research Studies.  Ships delivered in 2000 will add 425,000 TEUs of capacity to the world fleet, according to Clarkson, a unit of H. Clarkson Ltd. a leading London shipbroker.  The bulk of the deliveries will be ships with capacities above 3,000 TEUs, with the arrival of 100 vessels swelling capacity by over 20%.  But the "real event of 2000," McLellan said, is that just 34 so-called post-Panamax vessels will account for 195,000 TEUs of the new capacity.  The average capacity of these ships, all too large to transit the Panama Canal, is 5,740 TEUs.  By contrast, the 526,000 TEUs of capacity delivered in 1998 was divided among 265 ships averaging 1,985 TEUs.  The market for small container vessels has temporarily ground to a halt, with deliveries of only 7,800 TEUs in 2000, a mere 2% of the fleet.  These figures suggest the big-ship market is heading for a capacity glut in the millennium, while the small- and medium-sized vessels will escape relatively unscathed.  The industry has been on a spending spree since the early 1990s. After a decade when deliveries rarely exceeded 130,000 TEUs up to 1991, carriers sharply boosted orders, which rose from 206,000 TEUs in 1992 to 297,000 TEUs in 1993.  Containership orders reached a peak of 596,000 TEUs, or 21% of the world fleet, in 1995.  Deliveries will slump to around 268,000 TEUs this year, reflecting a downturn in orders two years earlier as declining freight rates prompted owners to pocket their checkbooks. But the industry resumed its normal buying pattern after a year to create a new delivery bulge in 2000.  "The order book makes big-ship overcapacity a near certainty," Clarkson's report said.  Most big ships are ordered by the large container shipping lines for dedicated trade routes, while the smaller vessels tend to be built speculatively for the charter market.  The daily hire rate for a 1,700-TEU vessel slumped from an average of $13,771 in 1997 to $8,311 in the first eight months of 1999.  But in the past six weeks the average has rebounded to over $12,000.  Analysts are undecided whether overcapacity in the big ships will affect smaller vessels.  "In other markets overcapacity of big ships is not always bad news for small vessels," Clarkson's report said.”

171.  Hensel, Bill Jr. “Larger ships, more traffic will demand efficiency, ports told.” Journal of Commerce on the Web <www.joc.com>.

“Growing cargo flows will put port officials to the test as the trend toward using larger container ships is expected to continue, prominent industry analysts say.  While predictions of increased cargo loads may come as no surprise to port executives, they better increase their level of efficiency to meet the upcoming challenges, members of the American Association of Port Authorities were told during meetings in Veracruz this week.  One way that efficiency can be achieved is through increased use of the Internet for better coordination in shipping, primarily between ocean vessels on the water, and trucks and rail lines on land, said John Vickerman Jr. of Principal Tran Systems of Virginia.  In addition, the synchronizing of various port equipment is paramount to achieve increased efficiency, Vickerman said.  Another analyst, Larry W. Nye, who is a vice president of Moffatt & Nichol in the firm's California office, said the market-driven changes that are occurring mean ports must try to plan better and be able to find fixed assets in a changing world.  ‘The problem is that we don't know how big ships will become,’ Nye said.  Planners are using a vessel size of 10,000 TEUs and 22 wide in considering the design of additional port facilities, he said, with the width being the most significant figure.  The construction of vessels that are 14,000 TEU, and 22 wide is ‘on the horizon,’ Nye added.  With the growth in size of the ships, the problem is that that most ports are storage constrained, he said.  Attacking dwell time will cost ports less money than focusing on areas of density, which is more costly.”

172.  Reyes, Brian. “Short sea shipping offered as green alternative to road and rail transport.” Lloyd’s List on the Web 09 October 2000. 13 February 2001  .

“A senior Grimaldi Group executive chose the ECOPORT 2000 conference on environmental port management systems in Valencia last week to paint a convincing picture, vested interests aside, of how short sea shipping could often offer an environmentally sound and economically sensible alternative to road and rail transport.  Luigi Ranauro, manager short sea trade for the Italian line, said: ‘Short sea shipping should not be seen as single modal alternative for freight transportation, but should be seen as a complement to road and rail transport that can optimize efficiency levels in terms of collection and delivery of freight.  Short sea shipping should be promoted as the only valid alternative to decongest saturated road and rail networks, resulting in economic, social and ecological benefits,’ he added.  Mr. Ranauro based his observations on a recent study commissioned from Friends of the Earth (Italy) by Confederazione Italiana Armatori, the Italian shipowners confederation, and the European Community Shipowners Association.  The Friends of the Earth study compared the relative impact of all three transport modes on selected routes, using hypothetical shipments.  To transport 1,485 tonnes of cars and mixed freight between the port of Pasajes, Spain, and Flushing, Holland, the study estimated that 204 trucks, or seven 102-wagon trains, would be needed. By contrast, it concluded that one “small” ro-ro ship could handle the same shipment.  In the same way, it calculated that 291 trucks or 15 220-wagon trains would be needed to carry 7,451 tonnes of mixed freight from Zeebrugge to Immingham, UK a shipment that could be carried by a single “medium” ro-ro ship.  Mr. Ranauro drew attention to the “external costs” which the transport industry imposes on society, highlighting – as have previous European Union policy documents – gas emissions, atmospheric and noise pollution, congestion and accidents.

External transport related costs in the European Union, he told delegates, amount to thousands of millions of euro every year.  While transport users earn the profit from freight operations, these costs are shouldered by governments and society as a whole.  ‘The high external costs of transport create serious problems, not only environmentally and socially but also from the economic and social points of view,’ the study found.  They alter the fair competition between the various modes of transport, favor irrational mobility trends, penalize more sustainable products and services and reduce productivity and efficiency of labor in the economic system.  Ultimately, they impoverish environmental resources and divert public resources from more useful projects.  Maritime transport, Mr. Ranauro said, could lessen the impact of these external costs.  Gas emissions would be reduced by a shift from road and rail to sea, as would air and noise pollution, there are fewer serious accidents at sea than on European road and rail networks, a modal shift would go a long way to reducing maintenance costs associated with those same networks.  He also said the cost of investing in road and rail systems was huge compared to sea transport, though he failed to mention investments which many ports would likely have to make to ensure the smooth land/sea interfaces which today’s just-in-time logistics systems would require in order to make the short sea option viable.”

173.  Reyes, Brian. “Mega-boxships could pose hidden challenges.” Lloyd’s List on the Web 24 November 2000. 13 February 2001  .

“Speculation about the next generation of boxships has long been doing the industry rounds, but P&O Nedlloyd’s announcement last week that it was actively considering ordering 10,000 teu vessels will still have raised a few eyebrows in the ports sector.  For the first time a global carrier has formally raised the prospect of bigger ships, forcing port operators to leave theoretical discussions aside and consider the very real implications that this announcement will have for them.  Bear in mind too that, although P&O Nedlloyd is the only carrier to have spoken publicly about the possibility of ordering mega-boxships, other key shipping lines are also known to be very interested.  So what does it all mean for the ports industry?  There are obvious impacts – increased need for dredging to accommodate the vessels, bigger cranes, larger terminals.  But, speaking at a conference in New Jersey last October, Conrad Everhard, maritime consultant and former chairman of Cho Yang (USA), raised what he felt were several less obvious concerns.  Take congestion of beyond-port transport infrastructure, for example.  Mr Everhard said: ‘The larger ships will not only put more containers on to the roads but, even worse, will put them on to the most crowded roads and will put them there in much greater concentration than several smaller ships spread out over days or weeks.  Is this a rational trade-off for marginally better efficiency at sea?’  The effects of congestion could be offset if one assumes that large numbers of the boxes aboard mega ships will end up being transhipped aboard feeders to smaller ports unable to accommodate the mother vessel.  Mr Everhard, however, believes that many boxes normally shipped from smaller ports handling smaller ships could be forced on to road and rail in order to make the connection with the mainline vessel, with obvious effects on energy efficiency.  Neil Davidson, a director at Drewry Shipping Consultants in London, agreed that finding ways to deal with a much larger exchange of boxes to each vessel was crucial in making bigger ships work.  ‘More innovative and effective ways of running the yard and gate operation will have to be put in place.’  A more pressing question, perhaps, is the issue of who will provide the financing of necessary port infrastructure to accommodate ships of 10,000 teu and over.  ‘Will any of it come from the pockets of foreign-owned carriers who decide to increase their own efficiency by operating larger ships?’ Mr Everhard asked.  Carrier participation in landside port activity has become increasingly common, so the answer to that question could well be yes.  Witness Maersk Sealand, and its growing global network of key deepwater hubs.  Dedicated terminals and joint ventures with stevedores will become the norm for global carriers.  But Mr Davidson points out that ports will have to invest in increasingly sophisticated, and bigger, yard equipment ‘just to stay in the game’.  He adds that there is no guarantee that operators will be able to charge a premium to cover their re-equipping costs.  ‘There is genuine concern in the industry that terminal handling charges will not be high enough to justify the kind of investment which the carriers are expecting,’ Mr Davidson said.”

174.  Dupin, Chris. “Everhard questions ports' drive toward massive container ships.” Journal of Commerce on the Web 06 October 2000. 06 October 2000 <www.joc.com>. 

“Port Industry Day, a symposium and exhibition sponsored by the Port Authority of New York & New Jersey, took an unusual twist on Thursday with the moderator of the event questioning the shipping industry's drive toward larger and larger vessels.  While port officials were urging members of the audience to fax their congressmen to support passage of the Water Resources Bill because it would authorize dredging of New York's shipping channels to 50 feet so they are navigable by larger container ships, moderator Conrad Everhard sharply questioned the wisdom of accommodating larger container ships.  Noting that some futurists are talking about container ships with a capacity of 10,000 to 15,000 TEUs, Everhard urged audience members to consider the ‘social costs’ of larger vessels.  Larger ships cause increased traffic congestion and air pollution from trucks picking up and delivering containers, he noted.  In addition, he said he believes the savings that shippers gain from larger ships are eclipsed by the cost of dredging.”

175.  Tirschwell, Peter. “Carriers choose Panama Canal over Suez as China Trade Grows.”  Journal of Commerce On the Web 28 March 2000. 25 August 2000 <http://www.joc.com>.

“According to Tirschwell, many shippers are finding the Panama Canal an increasingly attractive alternative to landing cargo on the West Coast and moving it east via truck or rail.  Three years of disruption at Southern California, including longshore work stoppages, the Union Pacific service crisis in 1997 and strains in trucking capacity, has encouraged shippers to hedge their bets.  "A lot of people like to have an option to move their cargo via all-water where it would be less affected by nature, strikes and slowdowns, and overcapacity on the rails," said Bob Basillo, vice president of sales and marketing for Yang Ming Line.  All the increase in cargo cannot be absorbed through the West Coast.”

176.  Hensel, Bill Jr. “Ports president: Inadequate gov't. investment hampering ports development.” Journal of Commerce on the Web 02 October 2000. 02 October 2000 <www.joc.com>.

“The federal government is falling behind on investment in U.S. navigation infrastructure, the president of the American Association of Port Authorities (AAPA) president Kurt Nagle warned in his keynote address at the 11th annual International Breakbulk Transpo here.  Nagle told attendees that current federal navigation spending is only one-fourth the level it was 35 years ago.  He said inadequate appropriations have hampered operations, caused delays and increased costs.  ‘A year's delay leads to more than a 10% increase in project costs,’ he said.  'Without facilities and infrastructure, the growth of the breakbulk industry could be negatively impacted.’  Nagle said U.S. public ports invested $1.4 billion in landside infrastructure for shipping last year, and that ports expect to spend $10 million to modernize and update their facilities during the next five years.  But he said federal support is needed for dredging programs.  Nagle said that no matter how this fall's elections turn out, port and industry officials will have to educate Washington leaders about the importance of international trade and transportation.  ‘Whether you import steel or export lumber, our political leaders have to get this message: Trade creates new opportunities for us globally,’ said Nagle.  ‘We must have the infrastructure to support this growth.’”

177.  Bounds, Andrew. “Big ideas in Panama.” Journal of Commerce on the Web 05 June 2000. 26 June 2000 <http://www.joc.com>.

“Andrew Bounds from the Journal of Commerce reports that with a growing trend toward the use of not only Panamax, but post-Panamax vessels for container movements (the fastest growing segment of ocean cargo), a new set of locks is being planned for post-Panamax ships to get through the Panama Canal.  While 92 percent of the world's fleet can use the Canal, about 60 percent of the containerships ordered since January 1999 are too big to fit.”

178.  “Dry Bulk Introduction.” Lloyd’s List on the Web 01 June 2000. 08 March 2001  .

“While strength is the desired overall panamax market tone, there have been weaker fixtures in the Pacific recently.  Shipbrokers suggest that stability in the sector or otherwise will depend on whether this softer tone has bottomed out.  One broker said: ‘The panamax market wants to be stronger, but we have not seen the results yet.’”

179.  Bangsberg, P.T. “Korean shipyards take record orders, but see softer market.” Journal of Commerce on the Web 2 February 2001. 27 February 2001 <www.joc.com>.

“Orders received by South Korean shipbuilders last year jumped 65% to $15.2 billion for 313 vessels, keeping the country squarely in the lead among shipbuilding nations.  In 1999, new orders reached $9.2 billion in 227 ships.  The Korea Shipbuilders' Association said domestic shipbuilders produced 180 vessels of 6.1 million gross registered tons last year, a total value of $9.6 billion.  Orders on hand at the end of December stood at 503 vessels aggregating 16.4 million grt. and worth $23.1 billion.  This represents enough work for the next 2 1/2 years, the KSA said.  Its analysis shows strong growth in most classes of ship, including containers, dry bulk and tankers.  But the world market this year is likely to weaken because of an expected global economic slowdown, it says.  Competition is likely to be stronger as well, particularly from China - which ranks third after Japan and is pushing to increase market share - and Japan itself, where yards are reorganizing.  World shipbuilding prices have recovered steadily since the second half of 1999.  Tanker prices have increased by 15% to 25% and container ships by about 10%, the KSA estimates.  Small and medium-sized ships generally increased only about 2%, but there was a 16% rise in prices for Capesize vessels of around 80,000 deadweight tons.”

180.  Harris, Jennie. “Confused outlook for 2001.” Lloyd’s List on the Web 19 December 2000. 13 February 2001  .

“What does 2001 hold for the dry bulk carrier market?  With business during 2000 having brought the sector firmly out of depression, there is a concerted movement to try and keep the sector as buoyant as possible for as long as possible.  Opinions on prospects, however, are mixed.  While shipbrokers, analysts and consultants expect levels to be generally softer than in 2000, with so many external factors expected to affect the market, they differ in their assessments of just when, where, how and why freight rates will move.  One London shipbroker said: “We are all sitting here wondering what 2001 will bring.  Next year is the most difficult year for several years to predict.  There are so many outside factors.”  Economics, industrial production, general seaborne demand, fleet supply, climate, plant genetics, and government import and export initiatives will all play a vital part in next year’s dry bulk freight trade.  Of all the imponderables shipping consultants and analysts are mainly concerned about steel production in 2001.  “We believe that 2001 will be okay, and if it is anything as good as this year it will be very welcome,” said a London ship broker.  Shipping consultants agree and say that out of the three sectors the handy market is expected to be the most stable during 2001.  In the panamax sector, meanwhile, many shipbrokers are optimistic for the first quarter.  Interested parties in the sector are convinced of a healthy start to the new year.  There are detractors however, who consider that the fillip experienced by the panamax sector ahead of the end of year break will die off by January.  Despite some upbeat forecasts for the panamax sector during the first quarter, there are a number of factors that could easily put a spanner in the works as the year progresses.  One of which is the enormous fleet renewal programme that will also affect the handymax market.  In the same breath however, shipbrokers note that the US StarLink problem, once resolved, should encourage a surge of US grain business.  The more optimistic forecasters for 2001 suggest: “In the panamax sector demand is pretty good, steam coal demand is good and grain is not bad. Therefore we predict a positive outlook for demand, but the record number of deliveries are going to push rates down.”  Even those of a pessimistic persuasion however, are not advocating a dry bulk carrier freight rate free-fall.  “Next year’s movement will be like the teeth of a saw, down in a lump, rally, stabilise and down again.  But yes we are pessimistic for next year.  The worst sector will be the panamaxes as there are purely too many ships,” said a shipping analyst.  Some just expect 2001 to be tough for the dry bulk carrier market.  “It seems to be the case where there are so many complicated ideas to comprehend that its easier to say that next year will be awful,” said a shipbroker.  But overall, Ian Staples of SSY Consultancy & Research summed up the majority of market sentiment and said: “The real message is a softening of freight rates in 2001 yes, but a collapse to levels like in early 1999 is very unlikely because industrial growth is still positive.”

181.  “Alliance Angst.” Journal of Commerce on the Web 19 November 1998. 28 August 2000 <http://joc.com>.

“According to the Journal of Commerce, there is a long tradition of alliances in the steamship industry predating containerization.  As lines converted from breakbulk to containerization, alliances became a commonly used method by lines that lacked a full complement of vessels to combine assets and provide fixed-day-of-the-week service.”

182.  Freudmann, Aviva. “Western European ports riding wave of trade.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>.

“It's boom time in Western Europe's container port industry, as box handlers both north and south enjoy soaring trade volumes and a growing tendency by shippers to containerize bulk goods.  The Port of Rotterdam, Europe's largest container handler, recorded some of the most dramatic year-end results for 1999.  Its throughput increased from 6 million to 6.4 million TEUs over the course of the year.  Consistent with the rest of Western Europe, Rotterdam's biggest growth took place on the export side, where containerized traffic grew 9.6% over the previous year.  The port was also helped by low container freight rates, which attracted freight that previously moved as general cargo or bulk cargo.”

183.  Bartelme, Tony. “Smaller ports thrive with bulk, breakbulk.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>. 

“While the port of Charleston has become a national player in the container business, its smaller sibling ports in Georgetown and Port Royal have found their own success in handling breakbulk and bulk commodities for local industries.  Georgetown and Port Royal are so busy now that they're nearly out of capacity -- a big change from years past.  Georgetown is expected to handle as much as 1.8 million tons of cargo during the fiscal year ending June 30.  That compares to 300,000 tons in 1985 when we began our revitalization.  He said Georgetown is at about 95% capacity and is so crammed that the ports authority is considering expanding onto some nearby property

Port Royal is another success story.  Five years ago, the tiny port's docks were nearly empty.  This year the terminal is expected to handle nearly 400,000 tons.  Unlike Charleston, which is oriented toward containers and serves the entire Southeast and beyond, Georgetown and Port Royal are bulk and breakbulk ports that mainly support local industries.  Today, the majority of the port's business is generated by local industries such as Holnam Cement, Georgetown Steel, International Paper, AKZO-Nobel Salt and Insteel Wire.  Holnam Cement has had a particularly heavy impact on the port's tonnage figures during the past few years.  The company recently built a $1.5 million cement rail loading operation, which allows the company to serve customers in South Carolina, North Carolina and Georgia.  Holnam Cement will increase its throughput from 150,000 tons to 350,000 tons during the authority's 2000 fiscal year.  Also boosting the port's tonnage statistics are a healthy increase in aluminum imports and a 30% jump in forest-product exports.  Shronce predicts about 110 vessels will call on Georgetown during this fiscal year, and that the terminal should generate about $3.2 million in revenue.  Like Georgetown, Port Royal handles cargo mainly for nearby industries, including bulk cement for Port Royal Cement and clay slurry for PPR Inc.  Port Royal is surrounded by a residential area, making expansion difficult.  Also, as the Hilton Head/Beaufort area becomes more attractive to retirees and others, pressure to develop waterfront properties is likely to increase.”

184.  Gray, Tony. “Bureau Veritas joins class bandwagon with plans for mega containership.” Lloyd’s List 30 April 2001. 07 May 2001

“Bureau Veritas (BV) has become the latest classification society to jockey for position in the potential market for ultra large containerships. The French society has unveiled a design for a 12,500 teu vessel which it argues will "provide economies of scale and harness innovative technical solutions to providing more capacity". BV predicts demand for container slots will double over the next decade, rendering the current breed of post-panamax vessels unequal to the task. These impressive growth prospects have also attracted the attention of other class societies, such as Lloyd's Register and Germanischer Lloyd, which are also taking a keen interest in ultra large boxships. BV's mega containership, designed in partnership with Knud E Hansen, appears to be more revolutionary than evolutionary. Matthieu de-Tugny, BV's product manager dry bulk and containers, comments: "There are several feasible technical solutions to developing such ships, which represent new designs, not simply extensions of current thinking.  "At capacities over 10,000 teu, conventional designs cannot be maintained." Mr de-Tugny believes at least fifteen terminals would be able to handle these giant vessels in the future. BV's mega containership would have a scantling draft of 14.5 m and moulded breadth of 54.2 m, carrying 12,523 teu on a deadweight of 152,000 dwt. The engineroom and casings are positioned one quarter length from aft with the deckhouse forward of amidships. In comparison to the traditional solution with a deckhouse at one-third of the ship length from the aft, BV says this arrangement offers significant advantages: a higher torsion rigidity, a better field of vision and more deck containers, shorter propeller shafts, and no engine noise or vibrations in the deckhouse. One minor disadvantage could be the long distance between the engine room and the accomodation, but this is not unknown on other ships such as ro-ro vessels. Among several cross section alternatives considered to optimise the container arrangement andhull strength, BV settled on a compromise of narrow-skin double-hull design and deep enhanced deck beam structure to provide the best longitudinal guarantees. Steel thicknesses in the amidships region are higher than those in current use. When it comes to propulsion, BV says hydrodynamics calculations give a power requirement of 94,000kW at 25 knots. Mr de-Tugny says traditional single screw diesel engine power plants are not suitable for such a big vessel. Several alternatives were examined such as twin diesel engines, partial or full electrical propulsion, and the use of booster turbines. BV says traditional and reliability reasons support the twin diesel engine solution (2 by 45,000 kw). However, it adds that one slow diesel main engine with two azipod units each developing 22.5MW, or two electrical motors and two shaft lines are also quite attractive solutions.”

185.  Snedeker, John C. “Comments by Hans Peters.” April 2001

“While in New York this week, I had an opportunity to speak with Hans Peters, a highly regarded international shipping economist with Baltic Maritime Advisors. He sees continuing downward pressure on container shipping rates which he says will encourage ship owners to order larger and deeper draft ships in order to maintain economies-of-scale. I also spoke with a representative of SeaSpan, a Vancouver BC-based shipping company that has placed an order for four 9,000 TEU ships. Fully loaded, they will draw well over 50 feet. While draft is not an issue with cruise ships, economy-of-scale is. It is the reason that cruise ships are getting bigger and bigger. RCL's Voyager of the Seas (142,000 grt) is but one example. Virtually every new-build by the mass-market brands is a mega-ship, and for pretty much the same reason as with box ships. As of this week, the cruise ship order book stands at over $20 billion. Americans have come to regard a vacation as an absolute right, so the demand is still there and growing, but the condition of the economy is putting pressure on pricing. In that environment, mega-ships are the only way that the Big Four can maintain their financial viability. However, please understand that we are not advocating mega-ships for Savannah. Many of the smaller ships in the fleet will be looking for new home ports as the mega-ships absorb the berthing capacity of the traditional cruise ports such as Miami, Port Everglades and Port Canaveral. Our friends in Charleston are beginning to receive the benefits of this re-deployment. These are the type of facts that make the case for deepening the harbor even more compelling.”

186.  Richardson, Paul. “The big get bigger. So what?” Journal of Commerce on the Web 10 Jul 2000. 24 Jul 2000 <http://www.joc.com>.

“Demand for capacity is growing, and most strings on east-west trades will deploy megaships by the end of 2002 in order to accommodate the growing volumes.”

187.  “An Assessment of the U.S. Marine Transportation System, A Report to Congress.” U.S. Maritime Administration on the Web September 1999. 08 Nov. 1999 <http://www.marad.dot.gov/MTS/report/chapters/trends.pdf>.

“As shipbuilders design more efficient container ships, they are also becoming larger.  Forty percent of the new container ships are in the 4,500 TEU+ category, with drafts of at least 40 feet.  Large ship owners’ choices of ports they can deliver cargo will eventually become limited as drafts continue to increase unless ports meet the channel depth requirements to accommodate the service demands of the maritime industry.  The trend toward deeper channels of at least 45 feet deep or greater is accompanied by increasing demands for channel reliability.  The demand is driven by the expected growth in liner trade and continued deployment of mega-ships on U.S. trade routes.  The time-sensitive operating practices of these ships require the full availability of channel dimensions in order for these vessels to efficiently call at U.S. ports without service-related delays.  This expectation of channel availability is likely to increase the demand for more frequent maintenance dredging.”

188.  Loy, Admiral James M., John E. Graykowski. “Department of Transportation Statement on Needs of the U.S. Marine Transportation System before the House of Representatives.” U.S. Maritime Administration on the Web 29 July 1998. 5 July 2000 <http://www.marad.dot.gov/reading_room/MTS/July29_testimony.htm>.

“Admiral James M. Loy, Commandant of the U.S. Coast Guard, and John E. Graykowski, Acting Administrator of the U.S. Maritime Administration, testified before the House of Representatives on July 29, 1998, that few U.S. ports have the 50-foot or deeper channels required for the largest container ships and bulk carriers.  They also stated that deepwater ports in Canada, or in Freeport, Bahamas might become more attractive than their U.S. counterparts to deep-draft vessels.  New megaships carrying over 6,000 TEUs are currently being designed and built, sending a clear message about the need to continue efforts to access and upgrade appropriate U.S. ports to accommodate such large vessels in order to remain competitive.”

189.  Nagle, Kurt. “Testimony Before the Senate Environment and Public Works Subcommittee on Transportation and Infrastructure.” American Association of Port Authorities on the Web 23 June 1998. 19 Aug. 1999 <http://www.aapa-ports.org/govrel/testimony/nagle62398.html>.

“Kurt Nagle, President of AAPA, states that “megaships” are a key element in the strategies of the world’s leading steamship carriers.  There is an expectation that 30% of container volume will be carried on the mega-size vessels.  By 2040, the portion of the fleet that will consist of the larger vessels could approach 70%.  The 1043-foot long megaship Regina Maersk calls at several ports along the East Coast.”

190.  Bangsberg, P.T. “OOCL may be first to build 7,500-TEU ships.” Journal of Commerce on the Web 01 November 2000. November 2000 <www.joc.com>. 

“The next generation of huge container ships appears to be just over the horizon, with one major Asian carrier in advanced talks and another from Europe reported ready to begin.  Shipbuilders in South Korea and Japan are vying fiercely for the orders for ships of 7,500 TEUs, with Korea thought to have an edge on lower cost.  Orient Overseas Container Line Ltd. of Hong Kong is said to be well along in negotiations for two of the ships with options on up to four more.  It is understood to be leaning strongly toward Korea for this purchase and has a longstanding relationship with Samsung Heavy Industries Co.  Samsung is heavily promoting its technology, which it says could make an 8,800-TEU ship with length of over 1,000 feet, height of 88.5 feet and draft of 42.5 feet.  The ships probably will cost a minimum $75 million each -- more than a 300,000-deadweight-ton very large crude carrier -- and could go higher.  ‘One problem is that most yards are full well into next year, meaning the first probably couldn't be delivered until 2003,’ one source said. ‘That in turn means no price can be easily agreed because no one knows what steel and engines will cost by then.’  Current large container ships have engines of around 74,000 horsepower; the larger ones would need nearly 90,000 hp, they say.  The benefit of such monsters is the greater capacity, but that means ports of call must have suitable infrastructure.  OOCL, whose largest ship now is the 5,700-TEU S class, would probably deploy them on the trans-Pacific and Far East-Europe runs.  With the advent of ever-larger ships, terminals often unload one side, then turn the ship around to do the other.  The time taken doing that is offset by the shorter reaches that need to be made by cranes and spreaders.  P&O is also thought to be ready for the next generation.  A.P. Moeller Group of Denmark, parent of Maersk Sealand, is widely said in the industry to be examining ships of 8,700 TEUs or larger.”

191.  Richardson, Paul. “China Shipping Group plans massive expansion in trans-Pacific, Asia-Europe trades.” Journal of Commerce on the Web 7 November 2000. 7 November 2000 <www.joc.com>.

“China Shipping Group will introduce 13 new 5,500-TEU container ships on the trans-Pacific and Asia-Europe trades within the next 30 months.  The move is believed to be one of the biggest injections of post-Panamax capacity undertaken by a single carrier over such a short period.  The ships will more than double China Shipping's existing capacity on the two major east-west trade lanes.  Initially, the ships will act as replacements for five 2,800-3,000-TEU ships deployed on China Shipping Container Lines' Asia-America South Service.  All five ships, each credited with service speeds of 26 knots, will be delivered by the third quarter of 2001.  The other eight ships will start to arrive in late 2002, with all eight expected to be in service by mid-2003.  The ships are to be deployed on China Shipping's Asia-North Europe string, where they will act as replacements for chartered ships varying in capacity from 1,800 to 2,700 TEUs.  The new ships will boost the company's annualized capacity from around 150,000 TEUs to some 285,000 TEUs on one trans-Pacific string, and could nearly double the slots on the Asia-North Europe string.

192.  Richardson, Paul. “The big get bigger. So what?” Journal of Commerce on the Web 10 Jul 2000. 24 Jul 2000 <http://www.joc.com>.

“MISC, which ranks 18th in world container ship capacity, is about to go on a $250 million spending spree for new post-Panamax container ships and is currently deliberating over whether to go to Korea or Japan for four new 6,200-TEU ships.  Of the world's top 20 lines, all but three have post-Panamax ships on order, and one of those three has Panamax ships of 4,800 TEUs on order.  By virtue of their design these post-Panamax ships will either trade on the Pacific, or between Asia and Europe.  The biggest ships on order are four 7,200-TEU units at Hyundai for Hapag-Lloyd.  The first is due for delivery in October 2001, and assuming no one buys up Hapag before, and has different ideas for the future, these will rotate into the Grand Alliance Asia-Europe services.  Four 6,780-TEU ships are on order for P&O Nedlloyd at the same yard, with the first due for delivery in December and are destined for Asia-Europe deployment in the Grand Alliance.  Maersk Sealand has placed orders for several S-Class ships with stated capacities of 6,600 TEUs, though actual capacity could be higher.  NYK Line, another Grand Alliance line, has nine 6,200-TEU ships on order, with the first scheduled to enter service in September 2001.  Another Grand Alliance line, OOCL, will take delivery of the last four in a series of 5,500-TEU ships later this year.  There is a possibility OOCL will place further orders for new ships, the end result being enough to piece together two Asia-Europe strings with their own ships.”

193.  Richardson, Paul. “The big get bigger. So what?” Journal of Commerce on the Web 10 Jul 2000. 24 Jul 2000 <http://www.joc.com>.

“In the New World Alliance, Hyundai Merchant Marine has five new 6,500-TEU ships coming out between February and June 2001, and all will go on one trans-Pacific string.  Mitsui O.S.K. Line has five 6,000-TEU ships scheduled for delivery in 2002, and they also are destined for the Pacific and three new 5,500-TEU ships will enter the Asia-Europe trade.  For APL Ltd., eight new 5,500-TEU ships expected to be in service between May 2001 and mid-2002 on bareboat charter from German and Greek owners and are destined for the Asia-Europe trade.”

194.  Richardson, Paul. “The big get bigger. So what?” Journal of Commerce on the Web 10 Jul 2000. 24 Jul 2000 <http://www.joc.com>.

“In the Cosco-Yangming-"K" Line alliance, 12 ships of 5,500 TEUs are on order for delivery in 2001-2002, and eight of these vessels have already been confirmed for entry into the Asia-Europe trade.  China Ocean Shipping Corp. has seven 5,250-TEU ships coming out next year, most of which will likely go into the Pacific.  Yangming's first two 5,500-TEU ships will be deployed this year in the Asia-Europe trade.  Among all the alliances, 108 post-Panamax ships are on order.”

195.  “Maersk Sealand.” AAPA Advisory 17 July 2000

“In May, Maersk Sealand took delivery of 2 large container ships.  The 7,060 TEU AP Moller was christened May 31 at the Odense Stell Shipyard in Denmark.  AP Moller has been deployed in Maersk Sealand’s service between Europe, Asia, and the US West Coast route.  It is the twelfth “s” class container ship to enter service, three more remain under construction at the Odense Shipyard.  South Korean shipbuildling Hyundai Heavy Industries Co delivered Sealand New York, the first of five 6,250 TEU vessels ordered in 1998 by the Costmare Company of Greece.”

Name                      Sea-Land New York                             AP Moller

Registry                 Panama                                                  Danish Int’l

TEU Capacity       6,250                                                       7,060

DWT                      81,094                                                     104,696

Length                   965                                                          1,138.2

Beam                      131.2                                                       140.4

Draft                       n/a                                                          47.8

Speed                     25.6                                                         25.0

196.  “World Fleet Rises to an All Time High.” Lloyd’s Register World Fleet Statistics on the Web 24 Apr. 1997. 19 Aug. 1999 <http://www.lr.org/news/pr/21wfx1.html>.

“The ocean carrier industry is moving forward with orders for post-panamax container ships of over 6,000 TEU capacity and even larger ships are being designed and built.  World Fleet Statistics has found that post-Panamax (+64.2%) was the fastest growing sector in 1995-1999, followed by Panamax (+16.6%) and Feeder Max (+11.1%).”

197.  Nagle, Kurt. “Funding, Expansion and Environmental Legislation Challenge U.S. Ports.” Marine Link on the Web June 1997. 15 Sep. 1999. <http://www.marinelink.com/jun97/mr06303.html>.

“Nagle states that in 1988, a new class of post-panamax ships was introduced into the world’s container shipping fleet, and today there are about 60 of these large ships with an equal number more on order.  These vessels are generally wider than can be handled in the Panama Canal and also have deeper drafts.  In 1998, the average draft of the post-panamax ships was 42.9 feet, and the largest ships had drafts of about 45.5 feet.  The upper limit of today’s post-panamax containerships is between 5,500 to 6,300 TEU, and after the year 2000 they will hold 7,000 to 8,000 TEU, requiring at least 45 to 50 feet according to Nagle in Marine Link.”

198.  Freudmann, Aviva. “Big Ships, New Problems.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“According to Drewry Shipping Consultants, the current post-Panamax fleet has an average capacity of 5,400 TEUs, and the trend toward bigger ships is set to continue.  Drewry says the average capacity of the post-Panamax ships now on order is 5,950 TEU, and the largest has a capacity of 6,600 TEU.  Germanischer Lloyd, the German ship-classification society, said last year that ships carrying 15,000 TEUs are technically feasible and predicted they will be plying major trade routes by 2010.  According to the Drewry’s research, the number of vessels on order in the 6,000-plus TEU range began to climb in mid-1999 and is continuing to climb.”

199.  “CP Ships orders vessels for South America.” Journal of Commerce on the Web 20 November 2000. 20 November 2000 <www.joc.com>.

“CP Ships has ordered five 3,200-TEU ships that are designed to be used in the company's South American services.  The 22.5-knot ships will be built by China Shipbuilding Corp. in Taiwan for delivery between mid-2002 and early 2003.  The vessels will carry their own cranes, a design feature that is necessary in South American ports that lack efficient shoreside gantry cranes.”

200.  AAPA Advisory. VOL. 34, No. 44. 4 December 2000

“The second of three post-panamax container vessels ordered by Lloyd Triestino (LT) from Mitsubishi Heavy Industries' Kobe shipyard, was launched on November 22.  LT Unica is 285 meters (934 feet) long, has a beam of 40 meters (131 feet), draft of 12.7 meters (41.7 feet), capacity of 5,364 TEUs, and a service speed of 25 knots.  A sister ship, LT Usodimare, was launched in September (Advisory, September 11, 2000, pp. 7-8) and joined the carrier's weekly China - Europe - Mediterranean (CEM) service in late November.  Orient Overseas Container Lines (OOCL) has contracted with the Korean shipbuilding Samsung Heavy Industry for the construction of two 7,400 TEU container vessels at a total price of approximately US$160 million.  Both are expected to be delivered in the second quarter of 2003.”

201.  Richardson, Paul. “China Shipping deploys its first post-Panamax ships in Pacific.” Journal of Commerce on the Web 7 December 2000. 7 December 2000 <www.joc.com>.

“The China Shipping Group company, which operates its container shipping business under the name China Shipping Container Line, has just received the first two 5,500-TEU vessels - the CSCL Shanghai and CSCL Hong Kong.  The former will start its maiden voyage on Friday from Xiamen.  The CSCL Shanghai, built by South Korea's Hyundai Heavy Industries and chartered from Greek shipowner Costamare will replace a 2,800-TEU vessel on the Asia-America South Service (AAS).  The smaller ship will switch to the all-water service - known as the Asia-America East Service.  The CSCL Shanghai will depart Xiamen and call Yantian, China; Hong Kong; Kwangyang, South Korea; Los Angeles; Vancouver, British Columbia; Yokohama Japan; and Xiamen.  The CSCL Hong Kong also will be deployed on the AAS when it's delivered next year.  Three other post-Panamax vessels also are due in 2001.  China Shipping has undertaken a massive charter and shipbuilding program that will add at least 15 post-Panamax ships and an equal number of smaller Panamax vessels in the next two years.  It is investing nearly $2 billion in acquiring its own ships.  Another new ship, the 2,800-TEU chartered CSCL Xiamen, is expected to arrive back in Felixstowe on Thursday, completing its first round trip on the company's Asia-Europe service.”

202.  Richardson, Paul. “MISC poised to order four new ships.” Journal of Commerce on the Web 08 August 2000. 05 April 2001 <www.joc.com>.
Malaysia International Shipping Corp. is close to signing letters of intent with South Korea's Hyundai Heavy Industries for four 6,200-TEU post-Panamax container ships.  The order, valued at around $220 million, would be MISC's first order for new container ships since the mid-1990s, sources said.  At that time, MISC ordered two 4,400-TEU post-Panamax ships at Hyundai.  Those ships are deployed in the Asia-Europe trades as part of the Grand Alliance.  The 6,200-TEU ships are expected to enter service by early 2003.”

203.  Koenig, Robert. “Hapag-Lloyd deploys new 4,900-TEU ship in trans-Atlantic.”  Journal of Commerce on the Web 28 August 2000. 27 February 2001 <www.joc.com>.

“The 4,890-TEU Singapore Express, built by South Korea's Hyundai Heavy Industries, has a maximum speed of 24 knots.  It is 970 feet long, 106 feet wide and can carry 67,000 tons of cargo.  Guenther Casjens, who heads Hapag-Lloyd's liner shipping division, said the Singapore Express is the fifth of seven 4,900-TEU container ships that the German carrier plans to deploy to help meet rising global demand for container capacity.”

204.  Bangsberg, P.T. “Korean shipyards take record orders, but see softer market.” Journal of Commerce on the Web 2 February 2001. 27 February 2001 <www.joc.com>.

“While the overall market may weaken, the segment for container ships seems likely to flourish as lines move to ever-larger purchases.  Korean and Japanese yards are gearing up for 9,000-TEU ships.  Hong Kong's Orient Overseas Container Lines Ltd. has placed orders for two 7,400-TEU ships from South Korea's Samsung Heavy Industries Co. Each will cost just over $80 million.  The largest container carrier afloat is a 6,400-TEU model owned by P&O Nedlloyd and built by Japan's Mitsubishi Heavy Industries Ltd.  Maersk Sealand, China Shipping Group and P&O Nedlloyd are all believed ready to order 9,000-TEU ships.”

205.  Wainwright, Dale. “Yangming plans containership order spree.” Lloyd’s List on the Web 17 August 2000. 05 March 2001  .
“Taiwan’s Yangming Marine looks set to rejoin the large containership ordering boom and buy further post panamax ships, adding to its already significant new building program.  Unconfirmed reports suggest that the Taipei-based owner is considering spending up to T$10bn (US$322m) to acquire five 5,500 teu containership new buildings.  Yangming’s existing fleet includes some 50 vessels.  In addition, its present new building commitments consist of a series of seven 5,200 teu containerships: five under construction at Hyundai Heavy Industries in South Korea and two at the Kaohsiung facility of China Shipbuilding Corporation in Taiwan.  They are due for delivery from September through to June next year.”

206.  Freudmann, Aviva. “25 new vessels to be ordered.” Journal of Commerce on the Web 27 October 1999. 05 March 2001 <www.joc.com>.

“Evergreen Group plans to build 25 additional container ships and transfer its 42 Panamanian-registered containerships to the Italian flag, said Chang Yung-fa, chairman of the Taiwan-based company.  Chang said Evergreen plans to build up Lloyd Triestino, which was acquired last October, by adding new ships and vessels transferred from Panama, and by hiring staff.  Half of the 25 new containerships, which will include 20 ships of 3,000-TEU capacity and five of 6,000 TEUs, will be put under Lloyd Triestino's management.  Evergreen also hopes to merge Evergreen Marine Corp. (Taiwan) Ltd., the world's second-largest container carrier, with Uniglory Marine Corp., an Evergreen subsidiary that is listed separately on the Taiwan stock exchange.  If the merger is approved, Uniglory would become an intra-Asian trade department within Evergreen Marine.  Evergreen acquired Lloyd Triestino for $35 million and took on its $100 million debt.  The Italian line lost "quite a lot" in 1998, Chang said, and lost "a couple of million dollars" in 1999.  It will operate in the black, "but not by much," next year, he predicted.”

207.  Richardson, Paul. “MISC poised to order four new ships.” Journal of Commerce on the Web 8 August 2000. 05 March 2001 <www.joc.com>.  

“Malaysia International Shipping Corp. is close to signing letters of intent with South Korea's Hyundai Heavy Industries for four 6,200-TEU post-Panamax container ships.  The order, valued at around $220 million, would be MISC's first order for new container ships since the mid-1990s, sources said.  At that time, MISC ordered two 4,400-TEU post-Panamax ships at Hyundai.  Those ships are deployed in the Asia-Europe trades as part of the Grand Alliance.  MISC's partners in that alliance are Hapag-Lloyd, NYK Line, Orient Overseas Container Line and P&O Nedlloyd.  Those carriers also have ordered larger-capacity vessels in recent months.  The 6,200-TEU ships are expected to enter service by early 2003.”

208.  Wainwright, Dale. “Dalian and Hudong scoop big boxships.” Lloyd’s List on the Web 09 June 2000. 05 March 2001  .

“CHINA Shipping Group has confirmed orders for eight 5,600 teu containerships at two domestic shipbuilders in a historic first for Chinese shipyards in the fast growing post-panamax boxship market.  Dalian New Shipyard and Shanghai’s Hudong Shipyard earlier this week each clinched new building contracts for four 5,600 teu ships after months of financial rangling over the order.  Prices for each of the eight vessels is said to be slightly under $60m each, making the total contract worth close to $500m.  China Shipping Group is scheduled to begin taking deliveries of the eight vessels from the end of 2002, with deliveries expected to be concluded by early 2003.  Dalian and Hudong’s contracts are only part of China Shipping Group’s massive fleet investment program which is said to involve over 20 ships at a cost of over $1bn.  The expansionist Asian liner operator is also scheduled to take a large number of containerships on charter over the next two years from the likes of Costamare, Nordcapital and Seaspan.  All of these ships, ranging in size from 4,050 teu to 5,500 teu, are presently under construction in South Korea at Hyundai or Samsung Heavy Industries.  The orders at Dalian and Hudong represent only the second ever post-panamax containership new building contract awarded to a Chinese yard from a domestic owner.  Last summer Cosco placed orders for seven such ships at Kawasaki Heavy Industries in Japan, two of which were subcontracted to the two companies’ joint venture Nantong yard in China.  Construction of the first of these ships has recently begun at the Nantong yard near Shanghai.  For Hudong the order represents a significant leap in its shipbuilding aspirations.  The largest containerships it has built to date has been 2,700 teu-capacity ships for Hapag Lloyd.  The orders continue the current unprecedented demand for large containership tonnage.  Clarkson Research says ordering levels for post-panamax containerships in the first four months of 2000 was 91% above last year’s monthly averages.”

209.  Thorpe, Alan. “Hongkong United boxship boost.” Lloyd’s List on the Web 03 October 2000. 05 March 2001  .

“Hong Kong’s Hongkong United Dockyards has an order book of eight containerships due at the yard for the fourth quarter.  This month, three containerships from Japan’s K Line are stemmed — the 2,875 teu sister ships Henry Hudson Bridge — and the George Washington Bridge and the 2,500 teu Manhattan Bridge.  Also due next month is Denmark’s A P Møller’s 62,229 dwt Grete Maersk (emergency drydocking) and Germany’s Hapag Lloyd’s 45,363 dwt Hong Kong Express.  November will see Taiwan’s Evergreen Marine’s 4,229 teu Ever Right arrive for repair work.  And in early-December, another two containerships from Hapag Lloyd will arrive, the 4,409 teu Hannover Express and the 4,612 teu Shanghai Express (in-water survey).”

210.  Flynn, Matthew. “Evergreen places new order with Mitsubishi.” Lloyd’s List on the Web 10 November 2000. 05 March 2001  .

“Evergreen’s order for five 6,300 to 6,400 teu vessels at Mitsubishi Heavy Industry has pushed the number of containership contracts between the Taiwan liner giant and Japan’s largest yard up to an impressive 38 ships since the relationship started in 1993.  The letter of intent for the five jumbo post-panamax vessels, tagged as E-class ships, follows an 18-ship string of 5,364 teu vessels at Mitsubishi’s Kobe shipyard.  The new ships are expected to roll off the assembly line between October next year and January 2003, after the last of the U-class ships earlier in 2001.  Since 1993 Mitsubishi has built Evergreen five R series 4,173 teu and 10 4,211 teu D series ships, plus a first order for the 5,364 teu U series followed by a second order for 13 ships, of which a string of five vessels has been redirected into the Lloyd Trestino fleet.  Another three U-class ships are still to be delivered to Lloyd Trestino.  Since the 4,229 teu R-type was delivered in March 1994, MHI has built 30 ships, with the Kobe yard acting as a virtual Evergreen workshop churning out 24 vessels complemented by six at MHI’s Nagasaki shipyard.  According to reports that started to emerge in 1999, the new E-class vessels will boost their capacity to above 6,000 teu through an optimization of design rather than a jumboization of the hull, though they will be one container wider.”

211.  Flynn, Matthew. “Spin off sets Daewoo chasing global crown.” Lloyd’s List on the Web 24 October 2000. 05 March 2001  .

“Daewoo Shipbuilding’s orderbook is bulging with 155 projects worth $6.7bn.  Among these projects, orders for commercial vessels amount to 94 ships or $5.0bn, which is enough to continue the business until the first quarter of 2003 with 42 tankers including 21 VLCCs and 21 containerships.  Noteworthy recent contracts cited by the yard include orders for a 6,750 teu containership from Conti, five LNG carriers from overseas ship owners including Bergesen and Exmar and successive orders from Oak Maritime, Kristen and others to build 13 VLCCs.  The most recent reported contract is a VLCC for Kristen Navigation of Greece, a June 2003 ship with a price estimated at $76m.”

212.  “Europe: MSC containership order signals organic growth.” Lloyd’s List on the Web 18 February 2000. 05 March 2001   .

“Mediterranean Shipping Co.'s order for 10 of the biggest containerships in the world reflects the company's continued preference to grow organically rather than through acquisition.  The series of 6,700 teu ships, costing more than Dollars 60m each, will be built in South Korea, half at Daewoo and half at Hyundai.  Five of the ships will be bought outright and the other five will be acquired through a long-term lease arrangement with a finance company.  The investment will increase MSC's fleet capacity by around 30%, based on its present size, the ships will be deployed in the Europe/Asia trades.  Last year, it took delivery of a series of five 4,100 teu new buildings.  MSC's fleet stands at 132 ships of 231,000 teu, and no final decision has been made yet about whether the new buildings will represent a net increase or will replace some older units.  The ships will be delivered between 2001 and 2002.”

213.  Flynn, Matthew. “NYK ditches Samsung for IHI.” Lloyd’s List on the Web 12 June 2000. 05 March 2001   .

“JAPANESE shipbuilder Ishikawajima-Harima Heavy Industries has snatched away Nippon Yusen Kaisha’s follow-up containership order from Samsung Heavy Industries.  NYK has decided to order four 6,200 teu class ships from the Japanese yard rather than declaring a set of options that were attach-ed to a five vessel order placed at Samsung earlier this year.  Japanese and Korean yards have split the recent post-panamax orders by the three Japanese major lines evenly with 12 apiece, but the NYK order shifts the balance in favor of Japan with 17 out of 29 vessels on order.  Some industry observers believe that NYK came back to Japan to place the order after Samsung Heavy was looking for a stronger price because of a relatively full order book.  Samsung and IHI officials were not available and NYK staff declined to disclose the contract price, but the pricing is expected to have reached more than $60m per hull.  IHI will deliver the ships from September 2002, a delivery date that may have favored the Japanese yard, because Samsung is fairly full through 2002.  The five ships previously ordered in Korea will be delivered in 2001. 

Fellow Japanese K-Line has 12 post-panamax ships on order, with seven at Hyundai and five at Imabari.  MOL has eight such ships on order with five at Imabari and three at IHI.  In terms of post-panamax containerships, NYK Line currently holds a set of five 5,900 teu and three 4,800 teu ships in their fleet.  Together with the five ships that are already on order at Samsung, this will give NYK 17 post- panamax ships, the largest stable of all the Japanese lines.  The 25-knot ships will be financed on long-term charter, but no immediate details are available.”

214.  Mayer, Christopher. “Hapag-Lloyd adds Rotterdam Express to its global jigsaw.” Lloyd’s List on the Web 19 September 2000. 05 March 2001  .

“Leading German containership operator Hapag-Lloyd yesterday slotted another piece into its global jigsaw when it named the $50m Rotterdam Express at the ECT home terminal in Prins Willem Alexander Haven.  The 4,890 teu Rotterdam Express is the fourth in a series of seven new buildings ordered by the Hamburg-based owner.  She was delivered by Hyundai Heavy Industries in Ulsan on August 18 just under five months after her keel was laid.  She is deployed in the Europe-Far East trades.  The new ship was named by Heidi Schneider, wife of Dr Manfred Schneider, executive board chairman of Bayer, one of Hapag-Lloyd’s top 10 European customers.  Bernd Wrede said, “in addition to the Rotterdam Express we are integrating six identical units into our fleet, bringing it up to 30 modern containerships.  We will thereby account for close on a third of the fleet in the world’s largest consortium in international liner shipping, the Grand Alliance.  In late 2001, we will start taking delivery of four more new buildings capable of carrying more than 7,200 standard containers, thus ranking among the world’s largest containerships.  The final vessel in this series is due for delivery in early 2003.”

215.  Porter, Janet. “Triple christening forges containership alliance.” Lloyd’s List on the Web 26 August 2000. 05 March 2001  .

“A ship naming ceremony is always a big affair, but today’s christening in Pusan will be something extra special.  For not one but three ships are being named — the P&O Nedlloyd Vespucci, P&O Nedlloyd Magellan and P&O Nedlloyd Torres.  The three 5,762 teu newbuildings built by Samsung Heavy Industries are being chartered by P&O Nedlloyd from Nordcapital, the German shipfinance company now clearly established as one of the leaders in its field.  The occasion also underlines a new type of partnership now being forged between ocean carriers and finance companies, as the shipping lines seek to shift liabilities off their balance sheets.  P&O Nedlloyd has just taken delivery of another five similar ships built by Kvaerner in Rostock and Aker-MTW in Wismar which were financed by more traditional methods and are bareboat chartered for 15 years.  Four 6,788 teu units under construction at Hyundai yards are also effectively owned by the company.  They are scheduled for completion late this year and early next and are being financed by several of banks and leased to P&O Nedlloyd over periods of 12 or 25 years.

But more recent orders or those for smaller units are being done on a timecharter basis.  These include seven 4,100 teu ships for delivery in 2002, a series of five 3,400 teu vessels scheduled for completion from November onwards, another series of 11 2,500 teu units of which the first two are already in service — and now the biggest yet, the three being named today.  Nordcapital has ordered a total of 15 ships of this class from Samsung.  Nordcapital also has 10 smaller ships on order, plus commitments from a variety of bluechip owners including two 2,500 teu units for Maersk Sealand and another two of 2,200 teu for Chilean owner CSAV.  Three 1,728 teu ships due for completion by Stocznia Szczecinska in 2002 have not yet been fixed but could be deployed in the spot market until a longer term charter can be arranged.  These orders bring to 60 the number of vessels built with finance arranged by Nordcapital, which has raised some Dm4.2bn ($1.95bn) from private and institutional investors.  The P&O Nedlloyd Vespucci, to be named after the 16th century Florentine explorer Amerigo Vespucci who gave his name to the New World, will be christened by Kay Kruse, wife of former Hapag-Lloyd chairman Hans Jakob Kruse.  The P&O Nedlloyd Magellan, to be named after the Portuguese navigator who commanded the fleet that first circumnavigated the world, will be christened by Anne Marie Meijer-Punt, wife of P&O Nedlloyd executive committee chairman Haddo Meijer.  The P&O Nedlloyd Torres, to be named in honour of another Portuguese explorer, will be christened by Soon Yong Lee, wife of Choong Hwan Cho, president and chief executive of Hankook Tire Co.  The three 67,500 dwt ships, due for completion in the next few weeks, are each 277m long, 40m wide, and with service speeds of about 26.1 knots.  Each has 656 reefer plugs, and total container capacity of 5,762 teu, of which 3,160 teu can be carried above deck and 2,602 teu below.”

216.  Richardson, Paul. “South Korean yards to build 7,200 TEY megaships.” Journal of Commerce on the Web 15 November 2000. 27 February 2001 <www.joc.com>.

“Hong Kong's Orient Overseas Container Line has placed orders for six new 7,200 TEU post-Panamax containerships at Samsung Heavy Industries in South Korea, the largest ever ordered in terms of recognized capacity.  The order for six ships at Samsung is being split into a two-ship firmed-up contract, followed by a four-ship option which will be broken down into two, two-ship options. The two ships will run concurrently over two, three-month periods.  OOCL's first two 7,200 TEU ships will be delivered in October 2003 and December 2003. Industry sources put the price per ship at around US$82 million.  OOCL has three months in which to firm up the options on the third and fourth ships of the series, and an additional three months after that to confirm the orders for the fifth and sixth ships.  The ships look certain to be deployed in the Grand Alliance Asia/Europe trade lanes. Sources suggest trade growth in this arena should mean the megaships will find their place in that trade.  Hapag-Lloyd also ordered four similar-sized vessels at Hyundai Heavy Industries in 1999, and the first of these will enter service in 2001. All four will be in service by late 2002.”

217.  Richardson, Paul. “New ships will hold 7,100 TEUs.” Journal of Commerce on the Web 24 February 2000. 05 March 2001 <www.joc.com>.

“German shipping line Hapag-Lloyd is poised to place orders for up to four of the largest container ships ever built.  Company officials said the vessels will be "in excess of 7,000-TEU capacity," making them the largest ships built in terms of declared capacity.  Shipyard officials in South Korea, where the vessels may be built, suggest ship capacity of 7,100 TEUs.  The contract, likely to be announced next month, would be the latest of many orders for post-Panamax container ships in the 6,000-TEU or greater range.  Mediterranean Shipping recently placed an order with South Korean shipyards for 10 6,700-TEU ships.  Five will be built by Daewoo Heavy Industries, while the remainder will be built by Hyundai Heavy Industries.  Maersk Sealand later this year expects to complete a 19-ship contract for vessels declared at 6,600 TEUs.  P&O Nedlloyd has four 6,700-TEU vessels on order at Hyundai for delivery in 2000 and 2001, which would join four ships of that class already in service.  In total, 35 ships of more than 6,000 TEUs are currently on order or optioned.”

218.  “The Week - MALAYSIAN CARRIER PLANS 6,200-TEU Ships.” Journal of Commerce on the Web 14 August 2000. 27 February 2001 <www.joc.com>.

“Malaysia International Shipping Corp. is close to signing letters of intent with South Korea's Hyundai Heavy Industries for four 6,200-TEU container ships.  The order, valued at about $220 million, would be MISC's first order for new container ships since the mid-1990s.  The new ships are expected to enter service by early 2003.

219.  AAPA Advisory, VOL. 34, No. 26, 10 July 2000. 10 July 2000

“In May as well, the South Korean shipbuilding Hyundai Heavy Industries Co., Ltd. delivered Sealand New York, the first of five 6,250-TEU vessels ordered in 1998 by the Costmare Company, of Greece, for operation under charter to what was then Sea-Land Services.  A sister ship, Sealand Virginia, is due for delivery shortly.  Technical specifications of Sealand New York and A.P. Møller are summarized below:”

220.  AAPA Advisory, VOL. 34, No. 28, 31 July 2000. 31 July 2000

“The Arafura Sea, a brand new 798-foot ship with a draft of just over 45 feet, paid her first visit to the Port of Greater Baton Rouge on July 10.”

221.  AAPA Advisory, VOL. 34, No. 29, 07 August 2000. 07 August 2000

222.  AAPA Advisory, VOL. 34, No. 34, 11 September 2000. 11 September 2000

“THE LT Usodimare, the first post-Panamax container vessel ordered by Lloyd Triestino from Mitsubishi Heavy Industries, was launched on September 1 at a shipyard in Kobe, Japan.  The 5,364-TEU vessel is 285 meters (935.1 feet) long, 40 meters (131.2 feet) wide, and has a draft of 12.7 meters (41.7 feet).  Service speed is 25 knots.”

223.  AAPA Advisory, VOL. 34, No. 32, 28 August 2000. 28 August 2000

“Caroline Maersk has a length of 347 meters (1,139 feet), a width of 43 meters (141 feet) and a draft at full load f 14.5 meters (47.6 feet).  Container capacity is "about 6,600 TEUs," though other sources believe the S-types are considerably larger, at least 7,060 TEUs, according to Clarkson Research Ltd's Liner Register 1999-2000.  After delivery to A.P. Møller in early September, Caroline Maersk will enter the Maersk Sealand service between Europe and the Far East.”

224.  AAPA Advisory, VOL. 34, No. 40, 06 November 2000. 06 November 2000

“Carsten Maersk has a length of 347 meters, a width of 43 meters, and a height of 24 meters from keel to deck, and a draft at full load of 14.5 meters.  The draft of the vessel is 14.5 meters at full load.  According to the company, the ship's container capacity is "approximately 6,600 TEUs," but other sources suggest it is significantly larger.  Later this month, Carsten Maersk will join its 13 sister ships in Maersk Sealand's service between Europe, the Far East and the U.S. West.”

225.  Richardson, Paul. “China Shipping deploys its first post-Panamax ships in Pacific.” Journal of Commerce on the Web 7 December 2000. 7 December 2000 <www.joc.com>.

“China Shipping Group, fresh off receiving its first post-Panamax ships for the Pacific trades, will double capacity on its Asia-America South Service (AAS) by introducing five new 5,500-TEU ships by late 2001.  Those ships will replace a series of chartered vessels averaging around 2,800 TEUs.”

226.  Bangsberg, P.T. “Hanjin to revamp, boost capacity on China-US service.” Journal of Commerce on the Web 26 July 2000. 26 July 2000 <www.joc.com>.

“Hanjin Shipping Co. is adding capacity to its China-America Express service as demand grows.  A company spokesman said the carrier will replace the 2,700-TEU ships that it currently operates on the service with five 4,024-TEU vessels, ‘in an attempt to sharpen our competitiveness in the emerging market.’  Hanjin purchased two 5,600-TEU container ships last year and is planning to acquire three more this year.  By year-end, the company will have a fleet of 12 ships of that capacity.  The line has sold off its fleet of 3,000-TEU ships, substituting them for chartered vessels.  The newly acquired container ships have been deployed on routes to the United States and Europe.  Korea Line Corp. and Hyundai Merchant Marine Co. are also interested in the Chinese market, and say they will start calls once they get approval from Beijing.”

227.  “World Fleet Rises to an All Time High.” Lloyd’s Register World Fleet Statistics on the Web 24 Apr. 1997. 19 Aug. 1999 <http://www.lr.org/news/pr/21wfx1.html>.

“Ship owners are faced with the challenges of maintaining aging ships and investing in modern ships.  According to World Fleet Statistics, the aggregate age of the world fleet is 19 years and 18 for cargo carrying ships, and 73 percent of container ships are less than 15 years old.  As ship owners begin to replace these older containerships, they will replace them with larger, faster fleet.”

228.  Richardson, Paul. “China Shipping Group to order world's largest container ships.” Journal of Commerce on the Web 5 January 2001. 27 February 2001 <www.joc.com>.

“China Shipping Group confirmed that it is planning to order two of the world's largest container ships, 9,800-TEU behemoths that the rapidly expanding carrier would deploy in the trans-Pacific.  The company said the ships would be built in South Korea, with Hyundai Heavy Industries and Samsung Heavy Industries being the front-runners for the prestigious contract.  The vessels, which are expected to be delivered in 2004, will be deployed on a shuttle service between Hong Kong and Los Angeles, according to China Shipping sources who quoted group president Li Kelin. Kelin recently visited Europe and the United States to discuss China Shipping's future plans with agency networks and port operators.  The move to build the ships comes at a time when China Shipping is searching out possibilities to operate its own terminal on the U.S. West Coast to cater to trans-Pacific and local traffic.  Los Angeles has been earmarked as a "very major possibility," the sources say.  Meanwhile, on the Asia-Europe trade, China Shipping sources confirmed that the intention is to replace by 2002 a series of chartered ships ranging from 2,000 to 3,000 TEUs with nine 4,050-TEU vessels that are being built in South Korea.  Those new ships will effectively enable China Shipping to offer a fixed-day weekly service by the late 2002. It currently operates every eight or nine days.”

229.  “Chen named president of Yangming.” Journal of Commerce on the Web 6 September 2000. 27 February 2001 <www.joc.com>.

“Yangming will take delivery of the first of five new container ships from South Korea's Hyundai later this month, and has ordered two more from state-run China Shipbuilding Corp. as part of a drive to renovate its fleet and improve service.  All the vessels are high-speed 5,500 TEUs.”

230.  Wainwright, Dale. “Zim orders six at Hyundai in boxship binge.” Lloyd’s List on the Web 08 June 2000. 05 March 2001  .

“ISRAELI shipping company Zim Navigation has confirmed that it has embarked on a six panamax-dimensioned containership order binge at South Korea’s Hyundai Heavy Industries.  Haifa-headquartered Zim, which this year reported its first profits in three years, is paying $300m for the ships.  The new ships will have an overall length of 294 m, a beam of 32.2 m and a maximum draught of 13.5 m.  It is understood that they were originally ordered as 3,600 teu ships, but subsequently upgraded to a container carrying capacity of 4,800 teu.  Deliveries are due to begin from Hyundai’s Ulsan shipbuilding complex from 2002, with the last ship handed over by the following year.  Zim says deliveries of the new vessels are set to coincide with major changes in its commercial policy, including an enlargement of its reefer container transportation, and modification of its organizational structure.  It says the orders and company changes are necessary to maintain its position as one of the top 15 large container liner operators.  Zim utilizes around 80 ships, of which 28 are owned and the remainder chartered.  The company operates about 194,000 containers of various types.  Last year it carried a total of 1.18m teu, an increase of 12.6% over the corresponding period in 1998.  Upon delivery, each of the new 24 knot ships will be phased into Zim’s main global operation, Zim Container Service.  They will replace the seven 3,029 teu ships now deployed on the route.”

231.  “World Fleet Rises to an All Time High.” Lloyd’s Register World Fleet Statistics on the Web 24 Apr. 1997. 19 Aug. 1999 <http://www.lr.org/news/pr/21wfx1.html>.

“World Fleet Statistics states that during 1980-1999, the containership fleet grew at an average rate of 10.5% per year.”

232.  Porter, Janet. “Transatlantic choice from two alliances.” Lloyd’s List on the Web 30 May 2000. 07 March 2001  .

“For the Grand Alliance, more than two years of very hard work and numerous ups and downs is almost complete.  The immediate task is to manage the introduction of the new services in order to minimize market disruption.  The butterfly service — a string of eight 2,750 teu ships that double back between the north Atlantic, Europe and the south Atlantic with an overlapping port at either Charleston or Savannah — will form the core of the new service structure and be phased in over the summer.  The Grand Alliance’s existing Pacific Atlantic Express service between Asia, the US and Europe, will be upgraded with 13 ships of around 4,100 teu, while the Gulf Atlantic Express and Mexico Atlantic Express should be reorganized by October once APL and Mitsui OSK have terminated their agreement with Lykes.  One important feature of the new services is the big increase in reefer plugs compared with present availability.  The preparation is almost over.  The big unknown quantity now is the marketplace.”

233.  “German order won by KWW.” Lloyd’s List on the Web 11 December 2000. 20 February 2001   .

“Kvaerner Warnow Werft, the Eastern German shipyard, has won a $70m order for two 2,524 teu containerships from German shipowner and KG fund manager Oskar Wehr in Hamburg.”

234.  O’Mahony, Hugh. “MacGregor set for 10,000 teu boxships.” Lloyd’s List on the Web 28 September 2000. 05 March 2001   .

“MacGregor’s researches suggest that the equivalent of 760,000 teu as new capacity will be released into the container market before the end of 2002, based on orders placed for 200 containerships this year.  Orders placed in 2000 alone, will generate a growth in slot capacity equivalent to 12.6%, based on existing global capacity of 6m teu over the coming 27 months, says MacGregor.  This does not include the 110 containerships ordered in 1999 still awaiting delivery.  Where the average size of vessel ordered in 1996 amounted to 1,600 teu, the average ordered this year is 3,600 teu.  However, the cargo access equipment company expects the next boom in containership orders to come from the feeder vessel sector.  MacGregor claims an 80% share of the cargo access equipment market for post-panamax ships.”

235.  Wainwright, Dale. “Schoeller ups China orders.” Lloyd’s List on the Web 16 August 2000. 05 March 2001  .

“Heinrich Schoeller, head of Cyprus-based shipping group Schoeller Holdings, has doubled his new building commitments in China in a deal worth close to $100m.  He says the company has exercised options for two multipurpose ships at both Dalian Shipyard in northern China and Xiamen Shipyard in the east of the country.  Mr. Schoeller declined to reveal financial details, however brokers believe Schoeller Holdings is paying about $24m each.  Schoeller anticipates taking delivery of the latest vessels from Xiamen in April and August 2002, with the two at Dalian Shipyard set to emerge in May and September of the same year.  Distinguished by its combined container and heavylift capabilities, the vessel design, dubbed the ‘Superflex’, features principal particulars with an overall length of 190 m, a beam of 28 m and a scantling draught of 10.7 m.  Each of the double hulled 30,000 dwt ships will boast a relative high service speed of about 19.5 knots.  In a containership role, the design is said to be able to accommodate up to 1,800 teu, while, to facilitate its heavylift duties, each ship is specified with two 100 tonne and two 50 tonne capacity cranes.  Mr. Schoeller says blueprints for the ‘Superflex’ design were jointly developed by Schoeller’s Columbia Shipmanagement arm in partnership with a firm of unspecified Chinese marine consultants.  He says that by exercising the options his group now has a total of eight of the ‘Superflex’ 1,800 teu heavylift tweendeckers on order split between the two Chinese shipyards.  Delivery dates for the first four vessels are June and November 2001 for the first Xiamen pair and October 2001 and February 2002 for the two at Dalian.  The orders represent something of a lifeline for Xiamen, which is outside the control of either of China’s two large shipbuilding organizations.  Schoeller Holdings is believed to be the shipyard’s sole customer at present.  Dalian is in less of a precarious situation.  It presently enjoys an order book consisting of a mixture of ro-ro, anchor handler, chemical and product tanker tonnage for both European and Asian owners.  The yard is among a number of smaller Chinese shipbuilders investing in building new or enlarging existing slipways and docks to secure orders for larger vessels.  Mr. Schoeller says his company still retains options for further new buildings at both yards.”

236.  Flynn, Matthew. “Namura wins LPG breakthrough order.” Lloyd’s List on the Web 22 August 2000.05 March 2001  .

“Namura has experience in building containerships, having completed a 4,000 teu containership for P&O as well as a 1,000 teu ship.  The company has however prepared a design for a 6,000 teu containership, while a design for a 2,000 teu to 3,000 teu ship is in the works to take advantage of the trend toward bigger feederships sizes.  Namura is also stepping up the size of the capesize design from a 172,000 dwt up to 177,000 dwt.”

237.  Tirschwell, Peter M. “New locks could be in future.” Journal of Commerce on the Web 03 April 2000. 05 March 2001 <www.joc.com>.

“Container traffic will be the fastest-growing segment of world maritime commerce, but most ships being built to carry that cargo are already too large to transit the Panama Canal.  About 60 percent of the container ships ordered since January 1999 are "post-Panamax," which means they're too wide and deep to fit through the canal's 110-foot-wide locks, which allow maximum draft of 39.5 feet.  The Regina Maersk, a showpiece in 1998 for trends in container ship size, has a beam of 140 feet and a maximum draft of 48 feet.  Failure to provide bigger locks to accommodate these ships, and even larger ones on the drawing board, could choke the canal's long-term growth and undermine Panama's vision of using the canal to become an entrepot for regional trade and logistics.  But the additional capacity will soon be strained.  While the number of vessel transits is predicted to double from 14,000 to 28,000 by 2040, the volume of cargo they will carry could expand fourfold, from 200 million to 800 million a year.  In other words, the ships will be getting larger.”

238.  Bangsberg, P.T. “Hyundai line readies 6,500-TEU vessel.” Journal of Commerce on the Web 15 February 2001. 05 March 2001 <www.joc.com>.

“Hyundai Merchant Marine Co. says it will deploy the world's largest and fastest containership on Asia-U.S. West Coast routes this month.  The 6,500-TEU ship, built by sister company Hyundai Heavy Industries Co., will be delivered to the shipping firm Friday.  Hyundai Kingdom is 304 meters (997 feet) long, 40 meters wide and 24 meters high, roughly three times as big as a football field and similar in size to an aircraft carrier. Stood on end, it would rival a 63-story building.  A Hyundai spokesman said it has cruising speed of 26.4 knots, saying facetiously that the ship is faster than U.S. sprinter and Olympic champion Maurice Greene, who holds the record of 9.79 seconds for the men's 100-meter dash, by 2.44 seconds.  A match race seems unlikely, as Greene's TEU capacity could not be determined at press time.  (A knot represents one nautical mile per hour; a nautical mile is 6,076 feet, a statute mile 5,280 feet. The ship's speed translates to roughly 30 m.p.h.)  Container traffic on the route from Korea to the U.S. rose 7.8 percent last year to 525,188 TEUs, the Korea Shipping Agencies Association says.  The three main domestic carriers -- Hyundai, Hanjin Shipping Co. Ltd. and Cho Yang Shipping Co. -- accounted for 219,383 TEUs of the total, or 41.7 percent, down 4.3 percentage points from 1999.  Hanjin topped the list with 107,202 TEUs, followed by Hyundai (82,167), Zim Israel Navigation Co. (42,909), the APL unit of Singapore's Neptune Orient Lines Ltd. (42,715), Maersk-Sealand (40,769), Cho Yang (30,014), Taiwan's Evergreen Marine Corp. (29,228), the DSR Senator Lines unit of Hanjin (14,723) and China Ocean Shipping Co. (10,000).  Hyundai Merchant Marine, founded in 1976, is one of the world's largest multimodal transport companies, with over 122 ships including 34 full container types.  Its fleet also includes gas and oil carriers, car carriers, bulkers and others.

It added seven 5,551-TEU carriers in 1996, joining a mix of 4,411-, 3,000- and 2,000-TEU types.  In 1997, for the first time in the Korean shipping industry, its sales exceeded $3.2 billion.  By 1999, they were nearly $4 billion.

 Hyundai says it will continue to increase its fleet and focus on diversification of service.  Large investments will also be made in the establishment of container terminals and inland logistics facilities, the spokesman said.  Hanjin operates logistics centers around the world, including Long Beach, Calif., Tacoma and Kaohsiung in Taiwan.”

239.  Richardson, Paul. “Slot Watch - Carriers order ships with abandon, but where are the Japanese?” Journal of Commerce on the Web 03 September 1998. 05 March 2001 <www.joc.com>.

“The container shipping industry has entered a new phase of shipbuilding orders, with contracts placed at somewhat alarming rates in recent weeks at shipyards in South Korea and Taiwan.  Dominating the scene has been the world's largest shipbuilder, Hyundai Heavy Industries, which this week increased its contract portfolio with three more vessels with capacity for 4,800 20-foot equivalent units for Greek shipowner Costamare Shipping Co SA.  These vessels will be chartered by Hapag-Lloyd Container Lines.  Hyundai's containership order book swelled this year by a massive 22 vessels totaling 109,000 TEUs.  In annualized terms, just from this one yard alone, that equates to over 258,000 TEUs.  Each of these vessels has a capacity in excess of 4,000 TEUs, and importantly, all will be delivered through 2000 and early 2001.  Unless there is some phenomenal trade growth elsewhere, or the bottom falls completely out of the Asian market, it must be assumed deployment will be either in the Pacific or Asia/Europe trades.  Contained within the Hyundai order book are eight vessels 5,500 TEU-capacity.  Five are for Costamare and three for Yangming Marine Transport Corp. Seven vessels 4,800 TEU-capacity to be operated by Hapag-Lloyd, and four vessels 4,300 TEU-capacity for Maersk Line, are also included.  Hyundai's neighbor, Samsung Heavy Industries, may not have hit the heights of the Ulsan yard, but last week there was news that it had concluded a deal with a "European investment vehicle," to construct two vessels with capacity for with 5,500 TEUs that will be long-term chartered to Orient Overseas Container Line of Hong Kong.  Delivery will be in 2000.  OOCL has been hinting at new shipbuilding projects for some months now, and the Samsung contract is not the only deal for this carrier.  This week in Kaohsiung, Taiwan's China Shipbuilding Corp. signed a contract with the OOCL to build two more 5,500 TEU-capacity vessels.  OOCL says it wants the vessels by April 2000, even though it insists this is a tonnage replacement program.  The OOCL order has meant that China Shipbuilding has had to juggle its shipbuilding timetable, which was probably no bad thing as it did net the yard a cool US$120 million order.  Yangming, which has aired its plan for five vessels with 5,500 TEU-capacity for several years, decided this summer to have three built at Hyundai, and the other two at China Shipbuilding.  According to Yangming, the five vessels heralding from Hyundai and China Shipbuilding will enter service "consecutively" from mid-2000, until early 2001, adding, "they will be deployed on the transpacific trades."  The last order for new tonnage of any capacity above 4,000 TEUs placed in Japan was by Evergreen Marine Corp. in mid-summer for five more of its "U" type 5,364 TEU-capacity vessels.  The order went to Mitsubishi Heavy Industries, which was already contracted to build 13 vessels of this type for the Taiwan line.  Evergreen enjoys strong connections with Mitsubishi, and it was thus near certain that the deal would go the yard anyway.  Taking it all in perspective, the only order for large containerships placed in Japan this year has come from Evergreen.  In fact, you have to go back nearly three years to see any change.  Then it was five 5,700 TEU-capacity vessels for Nippon Yusen Kaisha, and four 6,674 TEU-capacity vessels for P&O/Nedlloyd, also ordered in Japan.  Nippon Yusen Kaisha is Japan's largest container shipping line, and could have quenched its appetite for large tonnage through the delivery of the last of a quintet of 5,700 TEU-capacity vessels in July.  As part of the Grand Alliance, it can hold out on the fact that its alliance partners have enough hefty tonnage to balance the scales.  But Mitsui OSK Lines, the second largest Japanese container line, has the same credentials, courtesy of the New World Alliance, and partners APL Ltd. and Hyundai Merchant Marine.  The last time MOL ordered new containership tonnage of large capacity was in the early 1990s.  Kawasaki Kisen Kaisha ("K" Line) has other ideas. There has always been a reluctance here to go for the big ships.  The line argues, "Why operate 6,000 TEU half full, when you can run 3,000 TEU ships completely full."  "K" Line does not have any vessels over 3,700 TEU-capacity.  The last vessels delivered were a pair of this capacity for the Pacific, and they were bareboat chartered from offshore entities.  Apart from that, nothing of this size has been built for years.  There is a very strong school of thought centering on the Japanese containership business at the moment, one that could rattle the cages of many a competitor if it comes off.  Mergers have come, and mergers have gone.  But if, in the next year or so, there isn't a major change to the entire structure of the Tokyo box-boat business of these three lines, then I personally will apologize, hopefully through these columns, for misleading the readership.”

240.  “Twin Hamburg-Sud vessel christenings at Samsung Industries – Korea.” American Journal of Transportation 12 February 2000. 26 February 2001.

“On January 29, 2001, the first of six identically designed 3800 teu containerships on order by Hamburg Sud, will be christened at the Samsung Heavy Industries yard in Korea.  Plans call for these initial two vessels, the largest Hamburg Sud has ever built, to join later deliveries in the newbuild series, and commence company liner service on the East Coast Inter-American trade in the second half of this year.  Technical details of the ships:

overall capacity:  50,200 tdw

Container slots:  3800

Reffer slot plugs:  800 teu

Length overall:  257.24m/844’

Width:  32.3m/106’

Draft:  12.5m/41’

Engine:  Sulzer/28,760kW

Speed:  22.5 knots

Two cranes aboard”

241.  Richardson, Paul. “CMA-CGM expected to double slots on trans-Pacific by year-end.” Journal of Commerce on the Web 25 October 2000. 25 October 2000 <www.joc.com>. 

“CMA-CGM's slots on the trans-Pacific trades will rise from around 1,700 TEUs a week to some 3,500 later this year, according to sources.  CMA-CGM is negotiating a slot allocation with China Shipping Group on one of China Shipping's trans-Pacific links.  That allocation is likely to come on the Asia-America South Service, the offering that marked China Shipping's first foray into the Pacific in April 1999.  China Shipping is in the process of receiving a series of 5,500-TEU ships on charter.  Five of the ships, which are too large to transit the Panama Canal, are expected to replace over the next few months five 3,000-TEU ships deployed on the Asia-America South Service.  The additional capacity on the service would lend itself to a slot allocation for CMA-CGM.  CMA-CGM already has three trans-pacific services.”

242.  Nagle, Kurt. “Testimony Before the Senate Environment and Public Works Subcommittee on Transportation and Infrastructure.” American Association of Port Authorities on the Web 23 June 1998. 19 Aug. 1999 <http://www.aapa-ports.org/govrel/testimony/nagle62398.html>.

“The containership fleet has undergone a major evolution.  The world’s major ocean carriers have greatly increased the size and number of large ships they use.  Prior to 1986, a channel depth of 45 feet would accommodate almost all container ships in the world’s fleets.  The Clarkson Containership Register indicates that most of the container ships in 1986 had maximum capacities of less than 3,000 TEUs with average drafts of about 38 feet.  According to Kurt Nagle, President of AAPA, there were only a few larger container vessels with capacities over 3,000 TEUs that were built to the maximum size that could be handled by the Panama Canal.  Most of the post-panamax vessels had drafts of 41.6 feet or greater and could not use a 45-foot deep channel when fully loaded.”

243.  Freudmann, Aviva. “Big Ships, New Problems.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“Larger ships are increasingly popular with ship owners and charterers.  The first ships that were too wide to fit through the Panama Canal had capacities of about 4,800 TEUs.  According to Drewry Shipping Consultants, the current post-Panamax fleet has an average capacity of 5,400 TEUs, and the trend toward bigger ships is set to continue.  Drewry says the average capacity of the post-Panamax ships now on order is 5,950 TEU, and the largest has a capacity of 6,600 TEU.  The Danish carrier expects to complete a 19-vessel contract for ships of this size by the end of the year.  Hapag-Lloyd recently ordered four 7,200-TEU ships, and P&O Nedlloyd has four 6,700-TEU ships on order for delivery in 2000 and 2001.  Germanischer Lloyd, the German ship-classification society, said last year that ships carrying 15,000 TEUs are technically feasible and predicted they will be plying major trade routes by 2010.  According to the Drewry’s research, the number of vessels on order in the 6,000-plus TEU range began to climb in mid-1999 and is continuing to climb.”

244.  Freudmann, Aviva. “Big ships, new problems.” Journal of Commerce on the Web 05 June 2000. 26 June 2000 <http://www.joc.com>.

“According to Aviva Freudmann of the Journal of Commerce, the average size of the world's container ships is growing by the month, and the trend toward bigger ships is set to continue.  Of the thousands of vessels transiting the Panama Canal each year, about 30 percent of the total oceangoing transits are by Panamax vessels.”

245.  Richardson, Paul. “The Atlantic shuffle.” Journal of Commerce on the Web 05 June 2000. 24 Jul 2000 <http://www.joc.com>.

“In order to meet the increasing shipping demands, the new Atlantic alliance structure involving the two alliances will deploy fifty-nine ships, totaling over 200,000 TEUs in capacity.  Maersk Sealand will retain its South Atlantic Econship service with five vessels and will be known as the Atlantic South Service (ATS).  Mitsui O.S.K. Lines and APL will have slots from July 3, and Hyundai will have slots from October, several months before it ends its agreement with MSC.  MSC could also be involved in the new Maersk Sealand/New World Alliance, and that would involve the South Atlantic.  The ATS service will have an annualized capacity of around 240,000 TEUs based on full utilization of space and deadweight.  In nominal terms, the figure will be around 155,000 TEUs.  The Grand Alliance Pacific Atlantic Express (PAX) has been in place since 1998, and will eventually deploy seven Hapag-Lloyd 4,600-TEU vessels, and six 4,024-TEU P&O Nedlloyd vessels to replace the 13 ships in the 2,800-TEU range originally deployed.”

246.  Richardson, Paul. “Figuring Out the Atlantic.” Journal of Commerce on the Web 26 June 2000. 24 Jul 2000 <http://www.joc.com>.
“The Grand Alliance is in the process of upgrading capacity from 13 vessels of around 2,700 TEUs to the 4,000-4,600-TEU frame.

247.  Bansberg, P.T. “Grand Alliance Revamps Asia-Europe Runs.” Journal of Commerce on the Web 05 Jul 2000. 24 Jul 2000 <http://www.joc.com>.

“In June of 2000, NYK said it would deploy four 6,200 TEU-class advanced vessels with speeds of 25 knots beginning in 2002.  With previously announced orders of five sister vessels, NYK's fleet of the class reaches nine.  This decision is made in concert with the long-term fleet plans of the Grand Alliance.”

248.  “Distribution of Container Ships on Order”

“According to Aviva Freudmann from the Journal of Commerce, the number of vessels on order in the 6,000-plus TEU range began to climb in mid-1999 and is continuing to climb.  The current post-Panamax fleet has an average capacity of 5,400 TEUs.  The average capacity of the post-Panamax ships now on order is 5,950 TEUs, and the largest post-Panamax on order has a capacity of 7,200 TEUs. [i]  Of the world's top 20 lines, all but three have post-Panamax ships on order.  In all, 108 post-Panamax ships are on order.  Paul Richardson believes this means that most strings on east-west trades will deploy megaships by the end of 2002. [ii]

249.  Wallis, Keith. “Box traffic surge for mainland China.” Lloyd’s List on the Web 02 February 2001. 08 March 2001   .

“But the continuing growth in throughput is leading to capacity problems at some ports.  Yantian, one of the Shenzhen ports, is nearly at full capacity.  The port company is now inviting bids for the third phase expansion.

Shenzhen Chiwan Kaifeng Terminal recently commissioned its third container berth at Chiwan port to boost overall capacity to 1.2m teu.  Shanghai is at present planning further expansion of its Waigaoqiao port complex and at the same time spending $130m on a massive reclamation scheme to create 39 sq km for a new port facility.”

250.  “Traffic cruising to new highs.” Lloyd’s List on the Web 18 January 2001. 13 February 2001  .

“The past year has seen growth in containers, fresh produce, cars and bulks at the Port of Southampton, and the number of cruise callers also continues to grow.  The port, which handled 34.1m tonnes in 1999 (including nearly 25m tonnes of oil products), has also witnessed in recent months Associated British Ports’ (ABP) £71m ($106m) sale of ferry operator Red Funnel and the group’s £9.5m acquisition of the Berkeley Group, which provides stevedoring and vehicle processing services at Southampton.  Developments at the port have included expanded facilities for the Canary Islands tomato trade and a £2m investment in the port’s vessel traffic system (VTS), but the construction of new facilities for P&O Cruises has not progressed beyond the discussion stage.  In November 2000, Southampton Container Terminals (SCT) broke through the one million teu barrier for the first time, and further growth is forecast this year.  Southampton is the UK’s top vehicle handling port. Total vehicle units handled increased from 542,358 in 1998 to 545,311 in 1999.  Southampton has seen a “remarkable” growth in dry and liquid bulks (excluding oil products) in the past year.  P&O is the main user of the Mayflower Terminal in the Western Docks, and although the provision of new facilities was central to contract negotiations with ABP as far back as a year ago, there does not appear to have been much progress.  ABP will undoubtedly come under pressure to provide new or upgraded facilities for Cunard, too, in time for the delivery of the Queen Mary II in 2003.  The new superliner will be registered and based in Southampton, partnering the QE2 across the Atlantic.  Cunard’s ships use the QEII Terminal in the Eastern Docks, but the company’s three-year contract with ABP Southampton is due for renewal on delivery of the Queen Mary II .”

251.  Richardson, Paul. “Delays at Singapore force Maersk Sealand to seek alternatives.” Journal of Commerce on the Web 20 November 2000. 20 November 2000 <www.joc.com>.

“Maersk Sealand is seeking service alternatives for Southeast Asian shipments in the wake of the Port of Singapore Authority's decision to cancel an agreement that gave preferential berthing for the carrier's ships.  The world's largest container shipping line will now have to wait for berths and queue for terminal handling allocations just like the rest of the lines using the Port of Singapore.  With Maersk Sealand relying strongly on its set berthing windows, and Singapore still handling much of the company's Southeast Asian cargo until January, the move is starting to hamper the carrier's extensive service network in the region.  Maersk Sealand on Jan. 1 will shift its Southeast Asia hub to Tanjung Pelepas, in nearby Malaysia.  But without priority berthing, the carrier has decided to omit calls at Singapore on main-haul trades such as the trans-Pacific, Asia-Europe and intra-Asia.  A Maersk Sealand official in Copenhagen confirmed that the company's AE5 service, which deploys 6,600-TEU S-class ships, has ‘skipped several calls at Singapore in order to avoid delays to the service.’  Other services on Maersk Sealand's Asia-Europe trades have had to wait for berths, causing delays to the schedules.  The carrier acknowledged that the problem is more serious on the trans-Pacific, where the chances of making up time at sea are somewhat limited.

‘The shorter passage from Asia to the U.S. West Coast makes it more difficult to maintain schedules, but we are doing our best to offer our customers what they expect,’ the Maersk Sealand source said.”

252.  Freeport Harbor, Bahamas. 19 June 2000 <http://www.interknowledge.com/bahamas/investment/freept01.htm>.

“Freeport Harbor, Bahamas, is currently undergoing an expansion that will make it a deep-water container transshipment port.  The harbor’s close relationship with Freeport International Airport together with its tug and piloting services makes it an ideal center for transshipment.”

253.  Port of Buenaventura, Colombia. 19 June 20000 <http://www.seaportsinfo.com/buenaven.html>.

“Port of Buenaventura, Colombia, has started an upgrade of the port facility and is investing in a specialized container terminal.  The project, scheduled for completion by century’s end, includes a modern terminal for exporting sugar, a terminal for liquids, and a multi-purpose terminal capable of giving service to a large variety of vessels and cargo.”

254.  Port of Santos, Brazil. 19 June 2000 <http://www.portodesantos.com/index_i.html>.

“Port of Santos, Brazil, which handles 50 percent of Brazil’s total container shipping volume, is undergoing a modernization program called “Port Leasing and Partnership Program”.  The program allows private entrepreneurs to operate the port.  The program is receiving $831 million in investments to upgrade the facilities.”

255.  Puerto Cabello, Venezuela. 19 June 2000 <http://www.puerto-cabello.com/english/PuertoCabello.htm>.

“Puerto Cabello, Venezuela, which manages 68 percent of import and export freight that enters and exits Venezuela, has finished a dredging program to guarantee 40 feet depth on the channel and container areas.  The port services high volumes of marine traffic that comes from the U.S. and Europe because of its central location and its access to extensive roads, highways and airway.”

256.  “Port privatization shows results in Mexico.” Journal of Commerce on the Web 12 June 2000. 26 June 2000 <http://www.joc.com>.

“The Port of Progreso, Mexico, is in the midst of a $60 million expansion scheduled for completion in 2000. The work includes construction of a one-mile breakwater, dredging of a four-mile navigation channel to 40 feet, and a sixfold increase in the terminal area to 60 acres.”

257.  James, Canute. “Ports Prosper as Trade Grows in the Hemisphere.” Journal of Commerce on the Web Dec 1999. 19 June 2000 <http://www.joc.com/issues/19991207/t1rade/e51293.htm>.

“The growth in trade and changes in cargo legislation in several countries is driving the expansion of ports in Latin America.  The region's ports are benefiting from an increase in trade between North America and South America, and between the Americas and Europe.  Millions of dollars are being spent to expand container facilities.  The promise of continuing expansion in trade and increased demand for cargo transshipment facilities has led investors in the Dominican Republic to plan a new port.  They hope to complete the construction of a $150 million container terminal by 2002.  The terminal will be capable of handling 500,000 moves per year and could be expanded to handle 1 million container moves per year.  The transshipment terminal will have a ready market because the existing main container port at Rio Haina is increasingly congested.  The changing nature of the carriers has prompted the most ambitious port project in the Caribbean.  Puerto Rico is considering a "superport" costing between $500 million and $600 million to take advantage of rapidly expanding trade between North and South America, and between the Americas and Europe.  The plan would further facilitate the volume of trade between North America and South America and would be implemented in 2005.  The transshipment terminal at the Port of Kingston, Jamaica, is also undergoing a $120 million expansion, and further expansion is planned after 2002 by the port authority.  Other ports undergoing expansions and improvements are Port of Veracruz, Mexico; Port of Paranagua, Brazil; Port of Sao Francisco, Brazil; Port of Barranquilla, Columbia; and CDC Centre, Cayman Islands.”

258.  Panama Canal, Panama. 19 June 2000 <http://www.pancanal.com/eng/projects/overview.html>.

“The Panama Canal agency is accelerating the completion of a $1 billion capital investment program.  The program is designed to modernize and improve the Canal so the waterway is prepared to meet traffic demands and provide quality transit services.”

259.  “Panama Canal Transportation Remedy:  Add Water.” Journal of Commerce on the Web 09 Nov 1999. 05 July 2000 <http://www.joc.com>.

“On-going improvements will provide short-term relief by increasing capacity and allowing more time for maintenance.  Because increased capacity is expected to be insufficient during the second decade of the next century, plans to meet future capacity requirements are being evaluated.”

260.  Freudmann, Aviva. “Western European ports riding wave of trade.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>.

“In France, Le Havre reported a 4.5% increase in container traffic in 1999 over 1998, to 1.38 million TEUs.  To accommodate what it expects will be a continued surge in traffic, Le Havre is building a large container facility called Port 2000.  Its first berths will be open in 2003, port officials say

261.  “China seeks to boost container volume on inland waterways.” Journal of Commerce on the Web 27 November 2000. 27 November 2000 <www.joc.com>.

“China is gearing up to move more containers on its extensive river network, which could give a sharp impetus to intermodal operations and improve logistics away from the main seaports.  One official said China will accelerate work to create a comprehensive containerized transport network on rivers, compatible with international and internal intermodal transport and distribution systems.  A River Trade Terminal was built specifically to cope with the growth of that sector and to segregate smaller ships from the main container complex at Kwai Chung.  Two years of dredging at Shanghai was completed earlier this year, allowing bigger ships to call.  The mouth of the river was dug to 27.8 feet to allow ships carrying 3,000 TEUs to enter the estuary at high tide.   The previous depth was 23 feet.  Stage two will deepen the channel to 41 feet, deemed the minimum for 4,000-TEU carriers.  China also has completed a feasibility study for a new rail line around the Yangtze River delta from Nanjing through Yangzhou and Taizhou to Nantong, all booming cities.  The 25 main ports along the river handled 199 million metric tons in 1999, an 11% increase over the previous year.”

262.  Bangsberg, P.T. “Port of Shanghai looks offshore for much-needed expansion.” Journal of Commerce on the Web 31 October 2000. 31 October 2000 <www.joc.com>.

“Authorities at China's largest seaport, frustrated by shallow approaches and constant silting, are looking to create a huge new port city called Yangshan 20 miles offshore.  Shanghai last year had cargo capacity of over 180 million tons and 4.2 million TEUs.  It is among the world's fastest-growing ports at an average 29% a year in recent times, and is forecasting 85 million TEUs by 2005.  The depth of the Yangtze River estuary is only 23 feet, meaning third- and fourth-generation container ships can come in and out freely only at high tide.  The municipal government is looking to Big and Little Yangshan Islands, where water is a minimum 49 1/2 feet, and fifth- and sixth-generation ships can come and go freely.  Maritime business is in four distinct areas -- far ocean (mainly the Americas and Europe), near ocean (primarily Japan, Korea and Southeast Asia), coastal and river.  ‘The breakdown of the components as forecast for 2005 is 47% for far ocean, 36% near ocean, 13% river and 4% coastal,’ said A. Ashar of the National Ports & Waterways Institute, a collaboration between Louisiana State University and George Washington University.  The most critical component is the far ocean, where ships of 6,000 TEUs are becoming the mainstays.  ‘The main reason for the Yangshan project is the inability of Shanghai's terminals to handle these ships,’ Ashar said.  ‘Even with a deepened channel, the Yangtze terminals will incur difficulties in providing efficient service to sixth-generation ships.  Most world ports that serve these ships have depth of 15 meters (49 1/2 feet) and are not subject to tide delays,’ Ashar said.  A recent report by the U.S. Commerce Department says total investment will be at least 100 billion yuan ($12 billion).  To make the project work, a bridge of some 20 miles would need to be built to connect with the mainland.  The plan calls for 50 container berths to be built at the new port.  Blueprints call for phase one to be complete by 2005, with five container berths offering aggregate capacity of 2 million TEUs a year.  The first four lanes of the bridge also would be ready by then.”

263.  Bangsberg, P.T. “Port of Shanghai looks offshore for much-needed expansion.” Journal of Commerce on the Web 31 October 2000. 31 October 2000 <www.joc.com>.

“Authorities at China's largest seaport, frustrated by shallow approaches and constant silting, are looking to create a huge new port city called Yangshan 20 miles offshore.  The depth of the Yangtze River estuary is only 23 feet, meaning third- and fourth-generation container ships can come in and out freely only at high tide.  The depth of the Huangpu River through the city is not much more and the river is too narrow for large ships to maneuver or turn freely.  The older terminals, along the Yangtze tributary Huangpo, are converted breakbulk terminals restricted in water and land.  They have no room for expansion, and handled over 3 million TEUs last year.”

264.  “Maersk adds Malaysia direct calls.” Journal of Commerce on the Web 5 June 2000 5 June 2000 <www.joc.com>.

“Just three months after its official opening, Malaysia's newest port has bagged a plum deal with Maersk Sealand confirming it will run five weekly services using the Port of Tanjung Pelepas beginning this week.  Tanjung Pelepas hopes to handle 500,000 TEUs this year and plans eventual annual capacity of 3.8 million TEUs.  Phase one includes six berths and 113 million square feet for container handling and storage.  The port will have 18 super post-Panamax quay side cranes with a reach of 53 meters (173 feet) and 58 rubber-tired gantries.  Infrastructure support includes an access road linking the port to the Malaysia-Singapore expressway, now in place, and a 20-mile spur link to the national rail network, which should be in place in early 2002.  The first container freight station opened ahead of schedule in March, and work on the second has begun.  Each will be about 100,000 square feet.”

265.  Luxner, Larry. “Puerto Rico to develop transshipment port at Guayanilla.” Journal of Commerce on the Web 5 October 2000. 5 October 2000 <www.joc.com>.

“Navieras/NPR controls 30% of the U.S. mainland-Puerto Rico shipping trade of around 260,000 boxes southbound and 78,000 boxes northbound annually (the remaining 70% are in the hands of Crowley American Transport, Sea-Barge, CSX Lines and Intership).  Since mid-1998, NPR has invested $15 million into its San Juan International Terminal at Puerto Nuevo, just outside San Juan.”

266.  “Alliance Angst.” Journal of Commerce on the Web 19 November 1998. 28 August 2000 <http://joc.com>.

“With the exception of Evergreen, a notorious loner, almost all lines joined some sort of alliance.  Today, the scope of these alliances has expanded; many are global.  The alliances run the gamut from those that strive to achieve operating integration to those that slot-exchange and slot-charter on each other's vessels.  The alliances make sense because they have been designed as revenue-enhancement arrangements according to the Journal of Commerce.  They have been customer-focused in their development, deployed as separate brands, and marketed to consumers as a new and improved product.  They have also taken advantage of cost-reduction opportunities whenever possible.  The liner shipping alliances are driven by a desire to reduce expense, with the original motivation having been the deployment of post-Panamax vessels.  The Journal of Commerce reports that the result is significant expansion of available capacity.”

267.  Dupin, Chris. “Carriers paying more to obtain container ships.” Journal of Commerce on the Web 28 August 2000.27 February 2001 <www.joc.com>.

“Peter Shaerf, the New York-based consultant and charter broker, said ‘Supply has been steady over the past year and there has been a significant increase in demand.  We're seeing a lot of pressure in the market for 2,000-3,000 TEU ships, and that will trickle down to smaller vessels.’  He predicts it will stimulate demand for ships at least down to the 1,200 to 1,500-TEU size.  Orders for new container ships are strong, with an average of three or four post-Panamax container ships, vessels with a capacity of more than 4,000 TEUs, scheduled for delivery each month for the next 24 to 30 months.  There were about 3,700 containerships with aggregate capacity of about 5 million TEUs at the beginning of the year, according to the research group of Nippon Yusen Kaisha.  Most large shipping companies - Maersk Sealand, P&O Nedlloyd, Zim, Mediterranean Shipping, for example - are major charterers of ships, even f they also have large fleets of their own.  CP Ships is acquiring at least eight, and possibly 11, used ships.  Last week CP Ships reportedly paid Taiwanese carrier Yang Ming $120 million to $129 million for six 3,266-TEU ships built between 1986 and 1988, and it paid CMA-CGM, $26 million for a 2,690-TEU ship built in 1991.  CP's Contship Containerlines unit also has three 4,115-TEU ships on order at the Daewoo ship yard in South Korea and is considering ordering seven more for delivery in 2002 or 2003.  The company has also extended eight medium-term charters and committed eight-year charters on six ships to be delivered in 2002.”

268.  Richardson, Paul. “Asian shipyards log over $1.2 billion in orders.” Journal of Commerce on the Web 13 August 1999. 05 March 2001 <www.joc.com>.

“Asian shipyards have netted more than $1.2 billion of containership orders this week, in what is believed to be the most active week yet for orders of post-Panamax vessels.  The orders have been spread across Korea, Japan and China, and number 20 vessels totaling about 120,000 TEUs.  The huge capacity increase is expected to be deployed evenly between the transpacific and Asia/Europe trades.  Hyundai Heavy Industries has emerged as the most successful of the shipyards, with firmed up contracts for five new 6,400-TEU vessels for Hyundai Merchant Marine, and two 5,500-TEU vessels for Greek shipowner Costamare Shipping Co.  These contracts carry a price tag of some $400 million. Costamare has options for three more 5,500-TEU vessels.  The Hyundai vessels will be deployed on the transpacific trades, where they will replace vessels with capacities of about 3,000 TEUs.  Those ships are deployed on the PNW service of the New World Alliance.  The Costamare ships will go out on charter.  Earlier this year, Costamare chartered five 6,200-TEU vessels to Sea-Land Service Inc. Speculation is rife that the latest Costamare vessels also will be chartered to Sea-Land.  These orders have been overshadowed by the confirmation that China Ocean Shipping Co. has ordered seven new 5,200-TEU from Kawasaki Heavy Industries of Japan. 

Two of these vessels will be built in China by Nantong Shipyard.  Options have been placed for three more. 

The new COSCO vessels are set to be phased into the Asia/Europe trades to replace existing 3,800-TEU vessels.

 According to COSCO sources, the 3,800-TEU ships could then be switched to the transpacific, where they will replace vessels with capacities of about 2,700 TEUs.  This cascading down of tonnage will mean a sharp increase in capacity in COSCO's main deployment areas -- the transpacific and Asia/Europe lanes.  When the new ships are introduced, those routes will have overall capacity of 740,000 TEUs, an increase of about 150,000 TEUs from current levels.”

269.  Abbott, Paul Scott. “South America.” World Wide Shipping June 2000. June 2000

“Slowdown in the growth rate in US-South American trade from the boom years of the early to mid-90s has caused a number of carriers to pull out of the lane or consolidate.  There used to be 20 carriers and now, there’s half as much.  Many of the carriers have already rationalized via vessel-sharing agreements as a short-term solution to lower cargo volumes.  1999 was a tough year in the carrier industry, with many carriers merging, downsizing or ceasing operations completely.  However, carriers have become more efficient and better able to survive.  With the reduced competition from the consolidations, rising rate levels are expected in the new millennium.”

270.  Richardson, Paul. “New ships will hold 7,100 TEUs.” Journal of Commerce on the Web 24 February 2000. 05 March 2001 <www.joc.com>.

“While fears have been voiced by some industry analysts over the level of new capacity coming into the market over the next two years, carriers are united in their belief that the present new order book will not translate into overcapacity and lower rates.  In the mega-ship league, there are nine ships of more than 6,000-TEU capacity due to be delivered by year-end.  In 2001, the number increases to 19 ships, and in 2002, the number so far is just two.  But unlike the charter market, where rates for most vessel sizes are moving rapidly upward, carriers say ship prices in countries such as South Korea are not going up.  Growing trade volumes and the need to provide an optimum size vessel for the Asia/Europe and trans-Pacific trade lanes have been the deciding factors behind the increase in ship specifications.  Assuming the firmed-up contract is placed by the end of March, the first of the new giants could be in service by late 2001 or early 2002.”

271.  Porter, Janet. “Major trades may get saturated.” Lloyd’s List on the Web 23 January 2001. 05 March 2001  .

“Liner shipping profitability could be slashed in years to come as the east-west trades prove unable to absorb the huge volume of new tonnage on order, a London shipbroking firm has warned.  A freight rate bloodbath is a distinct possibility, Howe Robinson believes.  Furthermore, overcapacity could be even worse if, as rumoured, some lines are about to place orders for ships of 9,000 teu or more.  “Should the industry enter a new round of super post panamax ordering, there is a fear that the major east-west arteries will become saturated in 2003-05,” Howe Robinson predicts.  However, owners of charter ships should escape the threatened downturn.  “As yet, there appears to be little correlation between charter earnings and freight rates,” Howe Robinson says in its latest quarterly review of the containership charter market.  During the early 1990s, freight rates were weak and yet the charter market was buoyant, the brokers say.  “Our analysis suggests that although there are a series of random positive and negative relationships between charter and freight rates, the very fact that freight rates are governed by regional factors and charter rates tend to be governed by global factors makes a direct correlation impossible,” Howe Robinson concludes.  The immediate outlook for the containership charter market is bright, the firm predicts.  Earnings for all types of containership are forecast to increase in the first and second quarters of 2001, and are most likely to settle some 5% to 10% below levels prevailing in summer 2000 “as the world comes to terms with events in the US”.  Howe Robinson thinks the market is set firm, “but relationships between supply and demand have become finely poised”.  Based on the current orderbook, aggregate capacity entering service over the next two years should be broadly in line with cargo demand.  However, the mix of ships being delivered “may well cause problems and many vessels will be forced to redeploy in order to satisfy regional requirements”.”

272.  Porter, Janet. “Box bottleneck in US.” Lloyd’s List on the Web 17 January 2001. 08 March 2001  .

“While imbalances between cargo volumes will always be a feature of individual trade lanes, the question preoccupying the industry is when the liner shipping industry overall will be back in balance following the current massive newbuilding programme.  Drewry had been forecasting that ship supply and demand would be in equilibrium again in 2004 and 2005.  Now, though, that projection is being pushed back because of the slowing US economy.  Drewry estimates that 1.56m teu of new capacity is scheduled to enter service over the next three years — equivalent to nearly 35% of the existing cellular fleet.”

273.  Porter, Janet. “Transatlantic choice from two alliances.” Lloyd’s List on the Web 30 May 2000. 07 March 2001  .

“Shippers should enjoy an unprecedented choice of services on transatlantic routes between northern Europe and the US as new products from two of the biggest carrier groupings finally take shape.  The ground-breaking nine year old Vessel Sharing Agreement between P&O Nedlloyd, Orient Overseas Container Line and the former Sea-Land will formally expire at the beginning of July, making way for a new range of services better suited to today’s market, with bigger faster ships from some of those involved in the shake-up, and a wider selection of port pairings.  But carriers organizing the new service configurations have been at pains to ensure the North Atlantic’s fragile recovery is not undermined by a sudden injection of extra tonnage.  Supply has been carefully matched with demand, and modest capacity expansion is less than projected market growth on the stronger westbound leg.  Indeed, with ships already full on sailings from Europe to the US, space is expected to get very tight in the latter part of the year as the leading lines refuse to deploy much additional capacity, preferring instead to engineer freight rate increases.”

274.  Porter, Janet. “CMA CGM plans bid to join Taca.” Lloyd’s List on the Web 04 September 2000. 07 March 2001  .

“CMA CGM plans to apply for membership of the Transatlantic Conference Agreement when it launches a transatlantic service next month.  The French carrier has confirmed that it will be taking space equivalent to 600 teu a week each way from Maersk Sealand.  The slot charter agreement extends for two years, but eventually CMA CGM plans to bring its own tonnage onto the Atlantic, according to Farid Salem, managing director of CMA CGM.  For now though, the French carrier is entering the trade without adding any capacity, Mr Salem said.  “We believe we are acting sensibly”, he told Lloyd’s List.  However, the timing looks good, given the steep rally in westbound trade conditions in recent months as cargo volumes moved close to available capacity.  Rates for basic commodities have rebounded from around $500 per teu at the start of the year to at least $950 now and up to $1,250.

Although the eastbound trade is much weaker, a reflection of the strength of the dollar against the euro, Mr. Salem believes most carriers on the Atlantic have recovered to at least a breakeven position.

275.  Porter, Janet. “Box bottleneck in US.” Lloyd’s List on the Web 17 January 2001. 08 March 2001  .
”The large orderbook looked manageable until a few weeks ago, with Drewry calculating that tonnage expansion would only exceed world trade growth by between 1% and 3.8% over the coming three years.  But with early evidence that US imports from Asia are already slowing, those figures may soon be out of date.”

276.  “Embryo Americana continues programme of enhancement.” Lloyd’s List on the Web 21 June 2000. 07 March 2001  .

“When Americana Ships was launched into the market last March senior management made considerable play of their belief in multi-branding, with an overarching group operating separate lines with distinct identities in specific regional markets.  The idea was that those discrete lines would gain on the marketing and thus the revenue side through their more intense focus on their appointed markets and on the expenses side through their sharing of administrative and financial functions.  The new model Americana was the conscious antithesis of the alliance and global carrier concepts, which Americana managers described as unwieldy, overblown and so overstretched, lacking identity — or all three.  On the organisational front there has been a gradual winnowing down of the group’s original multiplicity of brands.  Lykes absorbed Ivaran.  TMM swallowed Tecomar.  And then, in March, CP Ships bought out TMM’s 50% stake in Americana.  Most dramatic of all, however — in part because it seemed to contradict Americana’s whole world view — was the operating pact tied up last month for the transatlantic routes with the Grand Alliance, the consortium of P&O Nedlloyd, OOCL, Hapag-Lloyd and NYK Line.  All the same, Salvador Bruno, vice president at Americana, sees big benefits in the new arrangement.  “What it does for Americana is that it links us up with a well-structured operation, giving us greater geographical scope with the addition of Southampton, Rotterdam and Savannah as well as a tremendous improvement in terms of transit times and frequency of service,” he says.  On the transatlantic routes Americana-Grand Alliance will run 31 ships, nine of them contributed by Americana, with a capacity of 14,810 teu.  Where there are at present three services they will now offer five, all weekly and fixed day.  On transit times, Mr Bruno anticipated improvements averaging 10%-30%, with some port pairs showing particularly dramatic gains.  Eastbound, he cited improvements for New York-Le Havre from 15 to eight days and Charleston-Bremerhaven from 12 days to eight.  Westbound, Thamesport-Norfolk will improve from 12 days to eight and Thamesport-New York from 11 days to seven.  Service frequency will also improve sharply, with the partners offering 38 calls a week compared with 22 now.  Five of Americana’s existing 14 vessels in the region will go into the Mediterranean as soon as the co-operation agreement with the Grand Alliance becomes effective, probably in mid-October but possibly before, Mr Bruno said.”

277.  Porter, Janet. “Summer lull slows chartering.” Lloyd’s List on the Web 25 July 2000. 08 March 2001  .

“While the market is showing some evidence of seasonal slippage, the feature of the second quarter has been the continued strength, especially in the 1,500 to 2,000 teu sector which has taken even the most bullish observers by surprise, according to Howe Robinson in its latest quarterly charter market review.  Indeed, it is noticeable that some carriers have been resisting prevailing charter rates and compromising on quality in order to save money.  Howe Robinson reports examples of reputable companies hiring slower, less sophisticated conbulkers or multipurpose tonnage at rates significantly below cellular alternatives.  Looking ahead, Howe Robinson expects average charter rates for containerships to remain buoyant until the end of 2002.  During coming weeks, rates will probably decrease further, but any sustained downturn is unlikely, according to Howe Robinson.  This conclusion is based on an assessment of ship supply and demand, with the prospect of this year’s deliveries likely to be quickly absorbed by trade growth.  Concern about the impact of post-panamax arrivals and their consequent impact on charter rates should be tempered by the fact that, in the charter market for vessels of 2,000 teu plus, there are insufficient ships to meet demand.  Indeed, Howe Robinson believes the deployment of post-panamax vessels is likely to have a far greater impact on freight rates than charter rates.  Of the 560,000 20ft container slots being delivered in 2001, the majority represent post-panamax ships to be deployed in the east-west routes.  With vessels of this size not suited for the Atlantic, the Europe/Asia and transpacific trades face an additional 350,000 teu of container slots or 17.5% injection of capacity.  When set against the potential slowdown of the US economy, this is an awesome prospect, Howe Robinson acknowledges. But those ships displaced are likely to be owned by shipping lines or on long-term hire, so lessening any impact on the charter market.  Furthermore, with so much building activity concentrated on larger containerships, relatively few units smaller than 4,000 teu are on order, leaving demand to run ahead of supply in the north-south trades, a factor that will underpin charter rates.  The firm also notes that there are few shipbuilding berths now available prior to the end of 2002, so the threat of an over-ordering boom cannot be taken seriously before 2003, with tanker owners taking up much of the shipbuilding capacity in the wake of the Erika disaster that is forcing them to upgrade their fleets.”

278.  Flynn, Matthew. “Boxing clever on larger ships.” Lloyd’s List on the Web 19 February 2001. 27 February 2001  .

“Rival Samsung will shortly take on Hyundai's mantle with the deal it signed with OOCL in November to build six container vessels, at 7,400 teu are the largest declared capacity boxships.  Samsung Heavy is also marketing a 9,000 teu ultra-large container ship (ULCS) that it believes is suitable for the transpacific trade.  The yard argues that the larger vessel will bring cost savings of $18.5m annually based on the transport of 500,000 teu.  The 9,000 teu Samsung design is roughly in the same class as the fleet of Maersk 'S' class ships that are rated at 6,000 teu, although the industry estimates their true capacity to be 8,763 teu.  The operation cost of one 9,000 teu container vessel is about 18% less costly compared with two 4,400 teu container ships, the yard claims.  The evaluation is based on one year of operations trading on the transpacific at 25 knots, taking into account capital cost, port charges, bunkers, insurance, crewing plus payment, repair and maintenance cost.”

279.  AAPA Advisory, VOL. 34, No. 29, 07 August 2000. 07 August 2000

 “Evergreen's new all-water weekly AUE service between Asia and the U.S. East Coast (Advisory, June 19, 2000, p. 7) made its first scheduled call at the Port of Savannah on July 21 when the containership Ever Living docked at the Georgia Ports Authority's (GPA) Garden City Terminal.  According to the Georgia Ports authority, the new service will increase Savannah's traffic by 52 ship calls and about 20,000 containers annually.  Delivered in 1980, the 1,810-TEU Ever Living is 665 feet long, 98.7 feet, and has a maximum draft of 36.8 feet. The vessel is one of nine deployed vessels deployed in the AUE service.”

280.  TradeWinds 26 February 2001

Hitachi Zosen plans to diversify its already busy schedule of building VLCCs to containerships with a new 7,000 TEU design.  No other characteristics were given.  KAWASKII HEAVY INDUSTRIES was also reported to have a 7,000 TEU design ready for construction upon receipt of an order.  ISHIKAWAJIMA-HARIMA HEAVY INDUSTRIES was reported to have developed a family of designs in the 8,000 to 10,000 TEU range.  Potential customers include COSCO with which IHI is reported to have a ‘close relationship’.  COSCO serves both Savannah and Charleston.

281.  “Alliance Angst.” Journal of Commerce on the Web 19 November 1998. 28 August 2000 <http://joc.com>.

“With the exception of Evergreen, a notorious loner, almost all lines joined some sort of alliance.  Today, the scope of these alliances has expanded; many are global.  The alliances run the gamut from those that strive to achieve operating integration to those that slot-exchange and slot-charter on each other's vessels.  The alliances make sense because they have been designed as revenue-enhancement arrangements according to the Journal of Commerce.  They have been customer-focused in their development, deployed as separate brands, and marketed to consumers as a new and improved product.  They have also taken advantage of cost-reduction opportunities whenever possible.  The liner shipping alliances are driven by a desire to reduce expense, with the original motivation having been the deployment of post-Panamax vessels.  The Journal of Commerce reports that the result is significant expansion of available capacity.”

282.  Porter, Janet. “Boom time.” Lloyd’s List on the Web 18 August 2000. 08 March 2001  .

“P&O Nedlloyd yesterday unveiled a set of sparkling figures which underlined the dramatic turnaround in global shipping markets.  The Anglo-Dutch container line’s record second quarter results provide the clearest indication yet that the container shipping trades are well on the way to recovery after the tough period that followed Asia’s economic crisis.  They come amid soaring freight rates for large tankers and a recovery in dry bulk rates from the record lows of recent years.  With world trade still growing at a brisk pace, cargo volumes are expanding on virtually all the major trade lanes, ships are full, and freight rates are climbing.  “The champagne’s not cracked open just yet, but it is definitely on ice!” said a London shipbroker yesterday.  Leo Berndsen, chairman of Royal Nedlloyd, which owns half of P&O Nedlloyd, said he believes the shipping line is now in good enough shape to go for a stock market listing very soon.  Rather than wait for an initial public offering as originally envisaged and which may require a longer financial track record, he would like the ame to be replaced by P&O Nedlloyd, giving the carrier an immediate listing.  Quotes on other exchanges in Europe and Asia could follow shortly, he added.  “P&O is still considering this idea. They have not said yes, and they have not said no,” commented Mr Berndsen.  Confidence to attract outside investors demonstrates just how far the liner shipping industry has recovered in recent months.  The rally looks set to continue, despite the large orderbook for the latest generation of post-panamax ships.

Deliveries of these giants will accelerate next year, but most industry insiders think demand growth will match the increased supply.  Robert Woods, group managing director of P&O Nedlloyd, forecast equilibrium over the next one to two years, after which demand should move ahead of new capacity.  Mr. Woods said there was good news for P&O Nedlloyd on another front, as indexed costs fall below revenue “and the jaws of the graph open up in a very satisfactory way”.”

283.  “Dry Bulk Introduction.” Lloyd’s List on the Web 01 June 2000. 08 March 2001  .

“In the containership market, London shipbroker Howe Robinson reports that their containership index has increased by a further 6.7 points, representing a 0.7% rise over the past week.  The broker said the move was hardly surprising given the recent spectacular increases and added that the market could not have maintained such momentum indefinitely.  Most containership sectors have continued to experience freight rate increases and it is the 1,000 teu class that is still leading the way.  Overall, there has been a slowing in boxship enquiry said the broker, although supply remains generally tight.”

284.  Porter, Janet. “Box bottleneck in US.” Lloyd’s List on the Web 17 January 2001. 08 March 2001  .

“Scrapping is expected to remain minimal because of the strong charter market and bullish sale and purchase sector, with Drewry estimating that only between 30,000 teu to 40,000 teu will be sold for demolition in each of 2001, 2002 and 2003.”

285.  McLaughlin, John. “CMA CGM set to conquer Atlantic.” Lloyd’s List on the Web 07 November 2000. 07 March 2001   .

CMA CGM has 17 ships on order, including eight 6,500 teu behemoths due to go into service in the Asia-Europe trade over the next 15 months.  “Then we will start putting the 4,000 teu vessels now in Asia-Europe into the Asia-US trade, replacing the existing 3,200 teu ships,” says Mr van de Merwe. “It will have a cascade effect.”  As newer, bigger vessels come onstream, so CMA CGM will continue to order new boxes, “20,000-plus this year, slightly more next and 30,000 the year after that”.  Its plans for the Americas were less fully defined, but no less ambitious.  “The details still have to be worked out, but we are talking actively with a potential partner (understood to be CSAV) about an east coast South America service.  If everything goes according to plan, we would enter the market in early 2001.”

286.  Porter, Janet. “Liner operators step up orders.” Lloyd’s List on the Web 30 January 2001. 05 March 2001  .

“In total, a further 276 ships of nearly 1m teu capacity were ordered last year, Howe Robinson estimates, while deliveries this year are expected to reach 570,000 teu, with net fleet growth after some scrapping of 9.3%.  In 2002, the fleet is forecast to increase by a further 10%.  Despite the prospect of so much additional tonnage being delivered in the coming few years, the containership charter market started the year on a reasonable note for most ship sizes after the steep fall in the final few weeks of 2000.  The start of this year has seen demand for bigger ships of 3,000 teu or more remain healthy as ocean carriers continue to reshape and expand their service networks.  Brokers report that APL has chartered three 3,100 teu new buildings for two years at a rate of almost $23,000 a day, considered a good price.  Another five geared 2,500 teu units are said to have been fixed at $18,250, with two taken for 18 months and the other three for two years — another indication of an underlying sound market.  Mediterranean Shipping Company, an adept charterer good at taking advantage of price opportunities, has fixed ships at relatively low rates as the market slipped from last autumn’s highs, while China Shipping’s expansion plans are expected to keep this relative newcomer busy in the ship hire market.  In addition to good activity at the top end of the market, smaller tonnage up to about 1,300 teu has also been in demand.  The market overall may not be quite as buoyant as last year, with owners having to accept more idle days or short-term fixtures, but overall most brokers think rates will gradually climb in the coming months.  Howe Robinson for example, while concerned about a possible collapse of freight rates as new deliveries arrive, is more confident about charter market prospects.”

287.  Dupin, Chris. “MOL picks shipyards to build eight new Panamax containerships.” Journal of Commerce on the Web 2 March 2001. 05 March 2001 <www.joc.com>.

“MOL had announced last December it would build eight new containerships to expand its cargo capacity on trans-Pacific routes, but had not announced which yards would build the vessels.  It now says four of the new ships will be built at the Mitsubishi Heavy Industries, Ltd. Kobe Shipyard and four will be built at the Ishikawajima-Harima Heavy Industries Co., Ltd. Yokohama Shipyard. Launching is slated for 2003.  The new ships will have a container capacity of about 4,500 TEU, including plugs for 400 refrigerated containers.  They have an overall length of about 294 meters, with a beam of about 32.2 meters.  The ships are also faster than those currently in operation, with a service speed of 25.5 knots.  MOL Group companies will own four of the new ships. MOL will operate the others under long-term charter contracts with Japanese shipowners.  The faster, larger ships will replace 2,800 TEU class vessels now serving MOL's trans-Pacific routes.  The new ships are part of MOL's mid- and long-term strategy to improve service quality and cargo capacity on routes served by The New World Alliance (TNWA).  The 16 containerships MOL now has on order will bring its Over Panamax and Panamax containership fleet to 25, with 13 Over Panamax vessels and 12 Panamax ships.”

288.  Bardnard, Bruce. “Scrapping surges but capacity remains high.” Journal of Commerce on the Web 03 June 1999.05 March 2001 <www.joc.com>.

“Columbus Line stressed environmental factors, not economics, when it announced plans to scrap two asbestos-contaminated container ships in China.  But the demolition of the 28-year-old Columbus America and Columbus Australia is part of a surge in containership scrapping activity over the past 18 months that is likely to continue well into the future.  In 1994, five ships, with a combined capacity of 2,800 TEUs, were scrapped.  Last year, 54 ships totaling 86,200 TEUs were scrapped, according to Container Intelligence Monthly, an London-based newsletter.  Twenty ships were sold to breakers in March and April alone.  The increased scrapping activity, however, has had little impact on overall vessel supply.  The 1998 demolitions accounted for just 2.3% of the world container ship fleet, according to Clarkson Research Studies, which publishes the newsletter.  The same year, 556,000 TEUs of capacity were delivered.  While the scrapping of bulk carriers exceeded deliveries that year, containership "breaking" accounted for just 15% of 1998 deliveries.  Clarkson forecasts that containership scrapping will fall slightly to 82,600 TEUs this year and to 70,300 TEUs in 2000.  The reason for the decline is a lack of ships older than 25 years, the traditional retirement age for oceangoing vessels of all kinds.  Those figures, while slightly below 1998's total, are well above the 2,800 TEUs scrapped in 1994. In 1996, scrapping totaled 21,500 TEUs.  In 1997 the figure was 22,000 TEUs.  Deliveries of container ships this year will fall to half the 1998 level.  The market for small vessels of 2,000 TEUs and under will benefit most, with a total capacity of 48,000 TEUs due for delivery in 2000.  Shipowners have sharply reduced investment in new tonnage.  In terms of capacity, the 33 container ships ordered in the first four months of 1999 represented an annualized decline of 19%.

289.  Richardson, Paul. “A marriage, in review.” Journal of Commerce on the Web 07 August 2000. 05 March 2001 <www.joc.com>.

“On the shipping side, where arguably the biggest changes have taken place on the Atlantic, there has been an understanding that perhaps the 16 knot Econships do not provide the best competitive edge on the Atlantic.  This is resulting in a phasing-in process of the ex-United States Lines workhorses on the Mediterranean-U.S. Gulf service, even though Maersk Sealand is retaining its South Atlantic loop with six or more Econships.  In Asia, it's been pretty quiet in Maersk Sealand's intra-Asian trade, that is, until this week.  Word is now out that the company, independent of the rest of the field, has started a Japan-China-Southeast Asia service with four 1,000 to 1,450-TEU ships.  Fact is, the 6,200-TEU container ships, ordered by Costamare at Hyundai Heavy Industries for around $300 million in total, and firmed up only on a charter contract to Sea-Land, are being taken on by Maersk Sealand.  Sea-Land New York, Sea-Land Virginia and Sea-Land Washington are all being deployed on the Asia-Europe AE1 service, displacing ships of around 4,000 TEUs.”

290.  Dupin, Chris. “CP Ships' profit doubles as cargo volume rises 31%.” Journal of Commerce on the Web 23 October 2000. 20 February 2001 <www.joc.com>.

“CP ships concluded the long-term charter of six new container ships for delivery in 2002.  CP said these ships, along with three already on order for delivery in 2002, will replace ships currently in use, add more capacity and lower overall 'ship system' cost.”

292.  AAPA Advisory, VOL. 34, No. 21, 05 June 2000. 05 June 2000

“The Evergreen Group recently christened and launched its 14th post-Panamax U-type vessel in a ceremony held at the Kobe shipyard of Mitsubishi Heavy Industries.  The 5,364-TEU Ever Ulysses, which is scheduled to enter service immediately after delivery in June, is 285 meters ( 935 feet) long and 40 meters (131 feet) wide.  It has a draft of 12.7 meters (41.7 feet), service speed of 25 knots, and is equipped with 570 reefer plugs.  The Taiwan-based shipping company has ordered a total of 18 U-types. Twelve have been delivered, with the remaining six to follow before June 2001.”

293.  Gray, Tony. “Industry faces up to era of mega boxships.” Lloyd’s List on the Web 07 July 2000. 08 March 2001  .

“Since the post-panamax containership made its debut 12 years ago the box capacity of the largest vessels has almost doubled to 8,000 teu.  But experts maintain there is some way to go before the potential of scale economies have been exhausted.  Classification society Lloyd’s Register falls firmly into this camp and has done an impressive amount of research to support its case.  Using its wide experience of post-panamax ships, LR set out to establish the optimum ultra large container ship configuration.  The result is a 12,500 teu vessel with a length of 381m, beam of 57m, depth of 29m and a draught of 14.7m fully laden.  The design speed is 25 knots, although this will be affected by the engine arrangement.  Although such a beast would represent a capacity increase of more than 50% on today’s largest boxships, the LR vessel is not an exercise in pie-in-the-sky research.  The society enlisted the help of Ocean Shipping Consultants to provide a market evaluation for the ULCS.  Not surprisingly, the consultancy firm came to the conclusion that such large vessels would only be employed on the Asia-Europe, transpacific and pendulum trades.  But the growth in container volumes in these trades is expected to be of an order that will justify the introduction of these giant containerships in the next five or six years.  Giant it may be, but LR’s ULCS is substantially smaller than the recently announced 18,000 teu ‘malaccamax’ concept of Professor Niko Wijnolst, of Delft University of Technology.  But the ‘malaccamax’, named after the largest vessels able to pass through the Malacca Strait, has a 21m draught and thus requires the dredging of the Suez Canal.  In contrast, LR’s ULCS is based on what is possible in existing trades.  And the LR-Ocean Shipping Consultants study indicates that there are limits to scale economies where further increases in vessel size provide only limited unit cost reductions.  The list the key factors determining maximum vessel size is:

• The ability of container terminals physically to berth such ships.
• The capacity of terminals to load and discharge such vessels within an acceptable period of time.
• The capability of terminals to deliver and despatch large consignments of containers and the effectiveness of hinterland linkages.
• Technical difficulties, such as maximum stack height limitations.

The dimensions of the ULCS, says LR, are compatible with maximum permissible draught restrictions through the Suez Canal, together with existing and planned infrastructure developments at key terminals.  With 22 container stacks on deck, a crucial issue facing the LR ULCS is the outreach of gantry cranes at potential ports.  The study shows that at the end of last year there were two units in operation with the required “over the vessel” capability — a net reach of 60m.  But the population of ULCS gantry cranes is expected to increase to 16 by the end of this year, and to at least 21 by the end of 2001.  In fact, the study points out, six ports which circle the globe will be in a position to handle these vessels by the end of next year — Vancouver, Halifax, Rotterdam-ECT, Algeciras, Salalah and Yokohama.  With the gantry crane capacity in place, its productivity will be another key factor.  As the study notes: “Scale economies are beneficial when the vessel is at sea.  When in port, the capital costs continue to mount up.  Three container terminals are already achieving 34 moves an hour.  Ocean Shipping Consultants believes there are no technical barriers to more rapid operations for front-rank efficient operators.  Faster container handling, it argues, can be achieved through further automation, greater use of twin-lift spreaders and faster hoist speeds and trolleys.  The study suggests that an increase in output of around 35% from each gantry can be gained in the medium term.  On this basis, the study says that for a 12,500 teu vessel with a consignment of 7,000 containers in one port, and allowing for berthing and unberthing, a turnround time of less than 27 hours should be feasible.  This compares with a present turnround time of around 24 hours for a 6,500 teu vessel handling 3,000 containers. (Of course, as productivity increases the turnround time for the smaller vessel will also improve.)  By its nature the ULCS will have a slower port turnround, reduced employment flexibility and, at around $130m apiece, a much higher capital commitment.  However, the study indicates that these difficulties do not outweigh the “major cost advantages” with these vessels.  After demonstrating that the ULCS can be physically handled at diverse ports and turned round in an acceptable period, LR’s own concept study shows that the vessel can actually be built.  LR examined the implications for midship scantlings, hull girder bending, torsional response, stack weight limitations, propulsion issues and manoeuvrability.  It came to the conclusion that there were no “major obstacles to the development of ships of this size, at least from structural and powering aspects”.  LR did not expect its study to throw up anything radical, just a bigger and longer vessel.  But the end result is less conventional than anticipated, with the superstructure located amidships rather than aft.  Based on the chosen dimensions — length of 381m, beam of 57m and depth of 29m — LR arrived at a vessel with 22 stacks on deck and 18 stacks and nine tiers in the hold.  The side structure was designed to accommodate two stacks of containers on deck each side.  LR found that this hull form and deck, taking account of visibility requirements, could accommodate only 12,100 teu.  A further design concept was developed with a narrow side structure, wide enough to accommodate just one stack of containers on the deck each side.  This concept yielded the desired 12,500 teu but structurally is more onerous due to the limited topside area available.  By moving the deckhouse forward in its initial design concept, LR was able to increase the capacity from 12,100 teu to the required 12,500 teu due to the favourable impact on visibility requirements.  Looking forward from the bridge, the water surface 500m forward of the bow must be visible.  So now we have a vessel that is technically and operationally feasible. When will they be built and how many?  Given the present market, the study believes it is unlikely that the ULCS will be introduced before 2004, “although there is clear scope for the middle of this decade”.  However, it argues: “A reasonable assessment of the market indicates that between 20 and 24 vessels may be operational by the end of 2008.  “By 2012 up to 54 such vessels could be in use on the major arterial trades.”

Ocean Shipping Consultants accepts that these projections may seem optimistic.  But in its defence the study points out that since the leap to post-panamax ships the pace of market development has been extremely rapid and the economic factors driving this trend are not exhausted.”

294.  AAPA Advisory, VOL. 34, No. 42,  20 November 2000. 20 November 2000

“The South Korean shipbuilder Samsung Heavy Industries (SHI) has completed development of the prototype of a 9,000-TEU "jumbo" container ship and is now looking for customers.  The ships would be 330 meters (1,083 feet) long, 45.6 meters (149.6 feet) wide, have a draft of 14.5 meters (47.6 feet) and deadweight capacity of 150,000 tons.  A 93,000-hp engine would drive them to speeds of up to 26 knots.  Though it has yet to sign a contract for the 9,000 TEU design, SHI is already planning to develop the prototype of an even larger vessel -- a 14,000-TEU ULCS (Ultra Large Container Ship).”

295.  “Plans for super-large ships such as Samsung Heavy Industries' 8,770 TEU-ship will intensify industry competition.” Informare on the Web 09 March 1998. 27 February 2001 <http://www.informare.it/news/review/1998/st0320.asp>.

“Among shipbuilders preparing themselves for the era of 8,000-TEU containerships is South Korea's Samsung Heavy Industries (SHI).  The proposed Samsung vessel would carry 8,770 TEU.  The design specifies a length of 345m, width of 45.3m and draft of 27m, with a deadweight of 150,000 tons.  The proposed ship is designed to carry 18 rows of containers 6 tiers high (a total of 3,908 TEU) on deck, and 16 rows of containers 10 tiers high (4,862 TEU) in the hold.  It is to be powered by a 93,000 hp diesel with a service speed of 25 knots.  Samsung claims the hull of the SHI model will be at least 5 percent lighter in size-to-weight ratio than that of 6,000 TEU ships being built in Japan, improving the loading capacity by a comparable figure and leading to greater fuel efficiency.  "By the time this new super-large container ship is built, loading and unloading is not expected to be a problem,'' Samsung predicts.  SHI officials believe their new prototype will be under construction by 2000.”

296.  Flynn, Matthew. “Boxing clever on larger ships.” Lloyd’s List on the Web 19 February 2001. 27 February 2001  .

“With container lines keen to fire the opening shot in the cheaper slot war, the stakes have been raised for everyone - lines, yards, engine makers and ports in the effort to build 9,000 teu vessels.  One of the greatest problems is the question of how to get the 25 knots out of 9,000 teu-plus ships.  Only Ishikawajima-Harima Heavy Industry has come forward with a new propeller design for a single-screw solution.  Among the shipyards, IHI has unveiled a set of 8,000 and 10,000 teu rough blueprints, while Samsung is standing ready with a 9,000 teu model.  LR recently completed a study headed by David Tozer that analysed prospects for a 12,500 teu ship.  Shipyards in general were not receptive to the concept of a twin-screwed container ship, which would by definition erase some of the economies of scale that have been driving the ships up to the 10,000 teu barrier.  Hyundai Heavy, the world's largest shipbuilder and marine engine maker, is marketing a 9,000 teu containership and starting to assess a 14,000 teu option.  The Ulsan-based company is mulling over the development of a 140,000 hp engine to power a 12,500 teu ultra containership.  HHI is already employing 12-cylinder engines.  P&O Nedlloyd's four 6,800 teu vessels constructed by the yard are powered by 12-cylinder Sulzer RTA96C engines, the same power plant that was installed by Wärtsilä NSD licensee Diesel United for the four sister ships built at Japan's Ishikawajima-Harima Heavy.  In terms of other top-of-the-line engines, Hyundai Heavy is installing Man B&W 12K98MC-C model engine in the set of five 6,500 teu ships for Hyundai Merchant Marine, which will give them a speed of 26.4 knots.  Hyundai Heavy continues to set the pace with the biggest declared ships under construction, the quartet of Hapag Lloyd 7,200 teu ships being built at the yard.  Daewoo Shipbuilding & Marine Engineering is also stepping up its big containership pretensions, marketing designs for 8,000 and 9,100 teu ships.  The 8,000 teu model has 331 m length, 14.5 m draught and a 100,000 dwt hull.  The 9,100 teu model is 346 m length, 14.5 m draught and 107,700 dwt hull.  Both call for a 12 cylinder 98MC-C engine providing a 25 to 25.5 knot service speed.  The 10,000 teu container ship developed by IHI has a 346.6 m overall length draught of 13.5 m.  With fuel consumption of 238.9 tonnes per day, the main engine output will deliver 65,880 kW/100 rpm at maximum continuous operation and another 59,290 kW/96.5 rpm in ordinary operation.  The 65,880 kW specification equates to 89,640 hp via a Sulzer 12RTA96C unit.  Marine engine makers face the greatest challenges. A senior marketing official at HSD Engine, which is the world's second largest marine engine maker, told Lloyd's List: ‘In terms of fuel consumption and speed requirements, we have been responding to the market demand for a single engine concept. There might be a 9,000 teu ceiling in that case.  Production of larger engines will not be difficult. We have the testing capability and production facilities’.”

297.  O’Mahony, Hugh. “MacGregor set for 10,000 teu boxships.” Lloyd’s List on the Web 28 September 2000. 05 March 2001  .

“Shipboard cargo care specialist MacGregor Group has received firm inquiries from two Asian yards to draw up specifications for hatch covers to equip 10,000 teu capacity containerships.  MacGregor’s deputy general manager for sales of container ships, Ilkka Lyytikäinen, predicted that an order would be placed for a 10,000 teu capacity by early 2001.  He said yard inquiries had come from South Korea.  He refused to confirm that the requests had emanated from Samsung Heavy Industries and Hyundai Heavy Industries.  In separate remarks Mr. Lyytikäinen indicated that inquiries had also been received from the same sources concerning the development of the necessary hatch cover technology to deal with 18,000 teu capacity containerships.  Such ships would feature 21 m of draught, be 400 m long and 60 m across the beam and require two engines to power them, Mr. Lyytikäinen suggested.  The technical challenges generated by the 10,000 teu container ship are few, says MacGregor, although portside constraints on lifting capacity limit the weight of hatch cover sections to 40 tonnes.  Accordingly, where the largest ships to be equipped so far by MacGregor — the 32.8 m beam, 7,200 teu vessels on order for P&O Nedlloyd and Hapag Lloyd — feature hatch covers in three sections, 10,000 teu ships would demand four-panel covers.  Mr. Lyytikäinen emphasised the technical challenges that remained to be addressed in ship design when it came to the bottom tier of containers supporting stacks above 10 high.  Here, he suggested: ‘It will be necessary to investigate deployment of an intermediary support structure.’”

298.  Porter, Janet. “Buyers get in line for Samsung 12,000 teu design.” Lloyd’s List on the Web 28 August 2000. 05 March 2001  .

“Designs for ships able to carry up to 12,000 teu developed by Samsung Heavy Industries are attracting considerable interest from potential buyers.  The South Korean builder has prepared blueprints for vessels of 8,000 and 9,000 teu capacity, plus designs for a 10,000 teu class, which in reality would be able to take up to 12,000 teu.  Speaking at the naming of three 5,762 teu ships built for the shipfinance company Nordcapital, whose sister shipowning company E R Schiffahrt will charter them to P&O Nedlloyd, Mr. Cho described the commitment to build larger containerships as integral to a change of strategy for Samsung.  The biggest containerships built by Samsung so far are the 15 units of around 5,500 teu ordered by Nordcapital for a number of operators.  In the pipeline are four 6,200 teu ships for Nippon Yusen Kaisha plus many more medium-sized units.  The move to the next generation of jumbo containers required new design concepts, said C Y Kim, general manager of Samsung’s sales engineering team.  Mr Cho believed there was definitely interest in the market for even bigger containerships than the 8,000 teu vessels now in service.  P&O Nedlloyd, which has a large number of ships of between 2,500 teu and 4,100 teu on order with Samsung through Nordcapital and other ship finance companies, as well as four 6,700 teu ships being built elsewhere, had looked at the designs for the next generation of ships, Haddo Meijer, chairman of the executive board, said.  The first of the ships named on Saturday, the P&O Nedlloyd Vespucci , will enter service on September 9 when she joins the Grand Alliance’s Loop 3 between Europe and Asia.  Sistership P&O Nedlloyd Magellan will be ready at the end of September and be deployed in Loop 4 of the Grand Alliance’s Europe/Asia service, as will the P&O Nedlloyd Torres, which will go into service on October 25.”

299.  Gray, Tony. “Lloyd’s Register dismisses ‘malaccamax’ concept.” Lloyd’s List on the Web 02 June 2000. 05 March 2001  .

“The optimum size of ultra large containerships is substantially smaller than the recently announced 18,000 teu “malaccamax” concept, according to a new study by Lloyd’s Register and Ocean Shipping Consultants.  In contrast, the study concludes that the optimum ultra large containership would have a capacity of around 12,500 teu.  Although this is 50% larger than any existing containership, LR and OCS predict that such a vessel could be in service within the next decade.  Interest in the prospect of huge containerships was reignited earlier this month when Professor Niko Wijnolst, of Delft University of Technology, discussed the “malaccamax” concept, so named after the largest vessels able to pass through the Malacca Strait.  This behemoth would have a draught of 21 m, length of 400 m and breadth of 60 m and be able to carry 18,154 teu.  Scale economies are the driving force behind the growth in containership capacity.  But the LR-OCS study indicates that there are limits to scale economies where further increases in vessel size provide only limited unit cost reductions.  LR and OCS state that the key factors determining maximum vessel size are:

• The ability of container terminals physically to berth such ships.
• The capacity of terminals to load and discharge such vessels within an acceptable period of time.
• The capability of terminals to deliver and despatch large consignments of containers and the effectiveness of hinterland linkages.
• Technical difficulties, such as maximum stack height limitations.

After consideration of these and many other factors, LR identified the optimum ultra large containership, or ULCS, configuration as a vessel with approximately 12,500 teu capacity.  Following the study LR has developed a concept design for the ULCS.  The classification society explains: “Dimensions consistent with this capacity are compatible with maximum permis- sible draught restrictions through the Suez Canal, together with current and planned infrastructure developments at key terminals.  “Indeed, a number of container terminals will be in a position to handle such ships by the end of this year.”  Lloyd’s Register says that, when looking at the structural and performance aspects of its ultra large containership concept, midship scantlings were developed and hull girder bending and torsional response considered together with manoeuvrability and propulsion.  “All studies show that there are no insurmountable technical challenges perceived for a vessel of this size,” it adds.  Lloyd’s Register concludes: “The container shipping industry may well be looking, within the next five to 10 years, for ships with a capacity of around 12,500 teu — the ULCS.”  It is only a matter of time before such ships are built.”

300.  Dickey, Alan. “Malacca-Max 2 — this time it’s shallower.” Lloyd’s List on the Web 28 November 2000. 05 March 2001  .

“P&O Nedlloyd’s admission that it is considering newbuilding options for container ships of between 7,600 teu and 10,000 teu is further evidence of the seriousness with which the liner operator sector takes the debate about the need for ever greater ship capacity.  The discussion was given a somewhat controversial shot-in-the-arm last year in the Netherlands when professor Niko Wijnolst, chairman of the foundation Dutch Maritime Network and then member of the Marine Engineering faculty at the respected Delft University of Technology, and Marco Scholtens, a Delft student of Naval Architecture unveiled their malaccamax containership concept, for a design for the world’s largest containership, an 18,000 teu leviathan.  Since the malaccamax idea first broke water, Prof Wijnolst has adopted a high profile in pushing the concept to operators and builders alike, culminating with a new publication, published by university publishers Delft University Press, and entitled Malacca-Max Container Shipping Network Economy.  Working closely with a team from Delft University, Prof Wijnolst says research now indicated that 17,000 teu-18,000 teu ships could be built with a far shallower draught than that of the initial malaccamax blueprint; 18 m is now a real option, rather than the 21 initially suggested.  Given continuing dredging work in the Suez Canal, a shallower draught ship could transit this key commercial channel as early as next year.  A variety of other factors are coming to a head, the report suggests, which will make such super ships a commercial reality far sooner than anyone had expected.  There are, the book states, developments by top diesel engine manufacturers such as MAN B&W, to develop engines capable of generating 103,000 kW propulsion power.  Add to this factor the current high oil prices which prevail, and malaccamax-sized ships become an even greater commercial reality.  The bottom line is that big is beautiful when it comes to cost savings.  The report also puts forward the concept of hub-feedering based on a new segmentation in the port sector.  It states: “Very few ports will have the opportunity to become mega hubs, while most of the ports will be reduced on the main container routes to a secondary or feeder status.  The report outlines three methodologies or geographical locations for hub selection applied to the Mediterranean Sea, the Indian Ocean and the Far East.  It notes that the selection of the port of Rotterdam in northwest Europe is uncontested as no other port in the region can accommodate malaccamax draught ships.  In the Mediterranean Sea, the choice is reduced to just two ports: Malta’s Marsaxlokk and Gioia Tauro in southern Italy, although other possible options could be east Port Said and the growing Spanish port of Algeciras.  All four ports would, however, require redevelopment were malaccamaxes to be afforded ease of access.  In the Indian Ocean, the report’s top choice of ‘mega-hub’ is Salalah/Port Raysut, in the southern region of Oman, although it gives detailed review to other options in the region, including Djibouti, the Yemen port of Aden, India’s Cochin and Sri Lanka’s Colombo.  Based on the mega hub network of five ports, Rotterdam, Marsaxlokk, Salalah, Singapore and Hong Kong, a detailed transit time comparison was made with the present services offered by the container lines; it showed that on the basis of conservative assumptions, the transit times of the malaccamax hub-feeder system are more or less in line with current services.  If two variables are changed, namely the dwell time at the mega hubs of feeder containers and the type of feeder service (direct instead of loop feedering) are changed, then malaccamax service levels are almost identical with those in use today say the researchers.”

301.  Flynn, Matthew. “IHI breaks barrier to speed giant boxships.” Lloyds List on the Web 06 February 2001. 06 February 2001  .

“Harima Heavy Industries has made a technological propeller breakthrough to allow 10,000 teu containerships achieve a crucial 25-knot sea service with existing marine engines.  The contra-rotating propeller innovation with a small and larger propeller on a single shaft resolves the size barrier for the container industry, which has been struggling to find a single-engine, single-screw engineering solution to powering giant containerships.  The new application is part of a design unveiled by the yard for 8,000 teu and 10,000 teu containerships.  Until now, existing engine specifications even for the largest bore and greatest number of cylinders such as the Sulzer 12RTA96C and Man B&W 12K98MC-C were unable to achieve the crucial 25 knot service and 20% sea margin for a 10,000 teu model.  The CRP system features two propellers lined up one in front of the other on concentric shafts and rotating in opposite directions.  The ships are also expected to offer a 12% energy savings for jumbo containerships.  The "contra-rotating propeller" has also been successfully field tested with energy saving effects of 14% to 15% for two ships retrofitted with the technology.  After developing the world's first large-scale CRP system in 1998, the Japanese shipyard installed the set-up on a 37,000 dwt bulk carrier in 1989 and a 259,000 dwt VLCC in 1993.  Both ships have performed successfully and for the high-speed demands of the container field, IHI focused its technological efforts on applying the CRP technology to achieve twice the transmission torque of a VLCC.  The CRP system can be used for panamax type 4,000 teu class up through the 10,000 teu class containerships.   IHI pointed out that with existing vessels hitting the 6,000 teu-7,000 teu level, it was anticipating a market demand for even larger sizes in excess of 8,000 teu.  The diesel engines available in the market have not been powerful enough to serve such larger containerships of 10,000 teu class at the required cruising speed, without moving to an expensive and uneconomical twin-engine twin-screw configuration.  "If the newly developed CRP system is adopted, however, single engine/single-screw container ships of 10,000 teu with the required service speed of 25 knots becomes feasible," said a statement from IHI.  The yard acknowledged that there would be additional investment costs, but the fuel saving advantage considering today's fuel costs, would allow an investment payback in a matter of 2.5 to three years.  "The larger the power such as in containerships, the larger is the fuel saving effect, which would contribute to shortening the recovery period of the investment," said the yard, pointing out that the cost is far more economical than the investment cost to provide a twin screw/twin engine arrangement, not to mention the advantage in fuel consumption.  By sharing the load between the two propellers, the optimum diameter of the propellers can be reduced by about 10% compared with conventional size, which of course also reduces the ship's draught.  With propulsive power being halved for each propeller, hull vibration is kept low due to lessened cavitation and reduction in propeller surface force.  Furthermore, the yard points out that "there will be no need for check helm because of the characteristic mechanism of aft rotational wake flow being transformed to propulsive thrust, and the vibration levels at vessel's turning or astern motion will remain similar to that of the ahead motion."

The particulars of the 10,000 teu container ship developed by IHI has a 346.6 m overall length, breadth of 29.6 m and a draught of 13.5 m.  With fuel consumption of 238.9 tonnes per day, the main engine output will deliver 65,880 kW/100 rpm at maximum continuous operation and another 59,290 kW/96.5 rpm in ordinary operation.  The 65,880 kW specification equates to 89,640 horsepower powered by a Sulzer 12RTA96C marine diesel.”

302.  Richardson, Paul. “The 18,000-TEU ship - No, that isn't a typographical error.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“A few analysts are predicting that the 18,000-TEU containership (known as the Malaccamax) will be with us by the end of the decade.  The Malaccamax would be 1,300 feet long, 195 feet wide, with a loaded draft of 69 feet – more than twice the capacity of traditional containerships.  Niko Wijnolst, a professor at Delft University of Technology in Holland, has joined colleagues Marco Scholten and Frans Waals in an extensive design and feasibility study at the Delft University of Technology in Holland on these ships.  Most U.S. ports would not come close to the 69 feet of water depth necessary for the Malaccamax, but there is Rotterdam in North Europe, Malta in the Mediterranean, and Singapore and Hong Kong that are welcoming them.”

303.  Reyes, Brian. “Mega-boxships could pose hidden challenges.” Lloyd’s List on the Web 24 November 2000. 13 February 2001  .

“Drawbacks aside, bigger vessels are very much on the agenda.  P&O Nedlloyd’s announcement last week showed that.  Drewry’s Annual Container Market Review and Forecast, published in September, predicts that existing vessels in the 5,500 to 7,000 teu range will become the “Boeing 747” of the principal east-west liner routes, with smaller ships shifting down into regional networks.  ‘It is also likely that a few very big ships (10,000 teu and above) will be ordered by those carriers and alliances which have both the volumes and liner network to support them,’ the consultants’ report said.  ‘But deployment will be highly selective and focused on a few key hubs.’”

304.  McLaughlin, John. “P&O Ports in New Orleans deal.” Lloyd’s List on the Web 27 June 2000. 06 March 2001   .
“Alistair Baillie, P&O Port’s regional director, said the company viewed New Orleans as the number one port on the North Gulf Coast, and as competitive for gateway cargoes with the South Atlantic ports of Charleston, Jacksonville and Savannah.  Among other assets, he said New Orleans benefited from six major railroads and good intermodal connections to major markets.  “It is a comparatively smaller port with the potential to achieve higher-than-average growth rates.”  New Orleans handled 268,630 teu last year, up from 244,624 teu in 1998.”

305.  Richardson, Paul. “While They Talk of Suez, Keep an Eye on Panama.” Journal of Commerce on the Web 3 April 2000. 24 August 2000 <http://joc.com>.

“Paul Richardson from the Journal of Commerce reports that Evergreen has ideas of launching an all-water service between Asia and the U.S. East Coast using the Panama Canal because it wants to provide its customers with an all-water alternative that caters to the China marketplace.  It wants to do that because there are congestion problems developing on the U.S. West Coast, with ports and inland transportation.”

306.  Freudmann, Aviva. “Big Ships, New Problems.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“The environmental impacts of dredging projects and increasing shipping traffic from the “megaships” are major considerations for ports.  Dredging can change the port aesthetically and create some environmental concerns that must be weighed against the recent increases in container shipping traffic.  The huge new vessels already are having a dramatic impact on ports.  Terminals are coming under pressure to introduce cranes capable of simultaneously loading and unloading both sides of a ship.  If Rotterdam and Singapore welcome the Malaccamax, they will be impacted by thousands of containers being trundled through the back streets of suburbia each day and night as these ships unload their cargoes.  They will also have to adjust to their tourist industry being overwhelmed by thousands steel boxes on the streets.  The industry is still struggling to adjust to 6,000-TEU vessels, let alone 18,000.”

307.  “Quonset: A Summary of Issues and Concerns.” Save The Bay on the Web April 1999. 30 Aug. 1999 <http://savethebay.org>.

“Because prospective load centers or hubs are generally located in densely populated urban areas, they often do not have space to build the necessary ground transportation infrastructure.  In addition, there are concerns that increased rail and road traffic will change the aesthetic feel of the ports and that air pollution from ships, railroad cars, and trucks could be a threat to human and environmental health.  Conservation Law Foundation (CLF) and Save The Bay feel that air pollution from trucks, cars, and ships may exceed Federal clean air standards and poses threats to human and environmental health.”

308.  McLaughlin, John. “Charleston container volumes soar despite port’s troubled year.” 04 August 2000. 07 March 2001   .

“The port of Charleston, which has registered substantial growth over the past decade, saw container volumes surge again in the fiscal year ended June 30 by 16% to more than 1.5m teu.  The increase, from 1,347,618 teu in fiscal 1999 to 1,567,593 teu this time, a new record for the US South Atlantic and Gulf Coasts, came with of a sharp 19% increase in exports to 823,918 teu.  Imports, meanwhile, rose 13% from 656,847 to 743,675 teu over the same period.  The cargo increase came despite a minimal rise in the number of vessels visiting the port.  This was a reflection, the port noted, of “the trend toward larger ships and higher per-vessel throughput”. Charleston handled 1,963 ships last year and 1,981 this time.  For all Charleston’s recent success in attracting and handling the increased demand, however, this has been a troubled year for the port.  There has been labour unrest on the docks, with union protests against the Danish carrier Nordana following its decision to use non-union stevedores to handle containers.  The dispute ended in violence, arrests and a series of indictments.  In addition, the port’s efforts to expand at a massive projected new facility on Daniel Island has run into stiff opposition from environmentalists and local residents.  As if that were not enough, Charleston also faces the threat that Maersk SeaLand, its biggest customer, might desert it for Savannah.  Over the past three years the carrier has nominated New York-New Jersey and Los Angeles as its regional container hubs for the North Atlantic and the West Coast respectively.  It made those choices only after a lengthy courtship ritual that many observers believed was expressly designed to secure the best terms possible for the carrier.  Naturally enough given the massive cargo volumes concerned, the contests were fiercely competitive and ended with Baltimore and Long Beach feeling jilted and little used.”

309.  “Charleston surges with US economy.” Lloyd’s List on the Web 27 October 2000. 13 February 2001  .

“The Port of Charleston saw container volume jump 11% in the third quarter of this year to 417,558 teu, with high import demand from a surging US economy continuing to fuel the increase in throughput.  The improved quarterly figures took container volumes moving through the South Carolina port to 1.2m teu for the year to date, again 11% up on last year.  Loaded import containers rose 13% in the first nine months of the year and export containers were up 10%.  Bernard Groseclose, president and chief executive of South Carolina State Ports Authority, said: ‘While exports to South America and Asia are expected to remain healthy, they simply cannot match the US economy and our demand for foreign goods.  Imports from Europe and Asia should continue to lead the way.’  In some ways, however, the continuing surge in volume through Charleston is a double-edged sword.  The port has had to struggle to keep pace with demand, searching out space in an increasingly congested port and finding innovative ways to handle increases in tonnage.  This year Charleston expects to invest almost $50m in equipment and infrastructure improvements to that end.  There are six new RTGs under construction, five new seven-high stackers on order, two super-post panamax container cranes recently delivered and two more expected in the next two weeks.  At the same time, its longer-range hopes of developing a massive new terminal complex to meet its needs for decades ahead on Daniel Island have run into unexpectedly stiff and effective local opposition.  Indeed, concern about the impact of such an extensive development on Charleston and the surrounding area have prompted a major reassessment that is still continuing.”

310.  McLaughlin, John. “Charleston trumpets Maersk deal.”  Lloyd’s List on the Web 11 January 2001. 13 February 2001  .

“After months of uncertainty, Charleston port officials said on Tuesday that they had reached agreement with Maersk Sealand on a contract that will keep the mega-carrier at the South Carolina port for the next four years. The contract was due to be signed yesterday.  At the same time, Maersk Sealand officials insisted they had made no decision as yet on the site of a future South Atlantic hub; a process that has been going on for some months, with Savannah the main rival to Charleston.  As a spokesman said: “Our options remain open in the South Atlantic. We have not selected a new load centre by any means.”  Charleston officials declined to comment on the terms of the contract, save to say that it included provisions for four five-year extensions.  They added that the contract was a significant victory for the South Carolina port.  Maersk Sealand is Charleston’s biggest customer, running seven ships a week through the port.  Its commitment to Charleston had been in some doubt, however, ever since it moved its TP2 service to the Far East — and 20,000 containers a year — down the coast to Savannah last year. Company officials said at the time that they wanted to test Savannah’s efficiency, and suggested that the Georgia port was a candidate for the South Atlantic hub.  At the same time, there are also obvious parallels with the courtship battles that developed between rival ports when Maersk Sealand went looking for regional hubs on the North Atlantic and the West Coast.  In each case, some observers believed, the mega-carrier had deliberately set up a bidding war to secure better terms from its pre-chosen hub, New York on the North Atlantic and Los Angeles on the West Coast.  For its part, the company described this four-year contract at Charleston as giving it the breathing room to make an informed decision.  As the company’s spokesman put it: “We will now be able to perform a comparative study of the South Atlantic market to determine the best location for a hub port.”  Separately, Charleston also appears close to resolving another issue critical to its prospects: the selection and approval of a site for its new container terminal.  The port has been struggling to meet fast-rising demand for some years, and long ago targeted a site on Daniels Island in Charleston Harbour for its expansion.  Recent studies suggest Charleston could require a facility as soon as 2006.  When it moved to develop the 1,300 acres it owns on Daniels Island, however, it ran into a barrage of criticism from local politicians and residents’ groups, environmentalists and conservationists.  After a lengthy review process, a spokesman said it was now close to securing approval to develop a smaller 550-acre site on Daniel Island, with 5,500 ft of straight line berth allowing for the docking of five post-panamax vessels.  He said the port had also considered two other potential sites — the former Charleston Naval Base and a location on the Savannah River in Jasper County — but Daniel Island had significant advantages in terms of environmental impact, cost and the time-frame for development.”

311.  “Charleston achieves box record.” Lloyd’s List on the Web 12 December 2000. 13 February 2001  .

“If volume of cargo handled was the sole gauge of a port’s success then Charleston would have little to complain about as it looked back over the first year of a new millennium.  In the financial year ended June 30, the South Carolina port posted record container throughput of 1,567,593 teu, a hefty 16% up on financial 1999.  The improvement, which consolidated the port’s status as the premier facility in the US South Atlantic, included solid gains in both exports, which jumped 19% to 823,918 teu, and imports, which rose 13% to 743,675 teu.  It also came despite a negligible increase in vessel calls, reflecting the trend towards larger container vessels and higher per-vessel throughput.  Volumes have continued to rise since then. In the third quarter of this calendar year, container movement through Charleston jumped 11% on the same 1999 period, to 417,558 teu, maintaining the pace of growth established from the beginning of the year.  And for the first nine months of calendar 2000, container movements hit 1,218,851 teu, 11% up on last year, although this time it was surging US consumer demand that powered the increase.  Imports rose 13% and exports 10% over the period.  Earlier this year, Maersk Sealand moved its TP2 Far East service and the 20,000 teu that go with it to Savannah, Charleston’s long-time rival.  As the carrier explained it, the move was designed to test the Georgia port’s capabilities.  But it will not have escaped the attention of either port that Maersk Sealand is now considering its options as regards the location of its future South Atlantic hub.  For the moment, Charleston would seem to be ahead in the race for Maersk Sealand’s hand, if only by virtue of its long-standing relationship with the carrier, and its lead in the race to offer the 50-ft channel depths necessary to accommodate a new generation of mega-containerships.  The port last year began the Charleston Harbour Deepening Project, which will see the inner harbour dredged to 45 ft and the entrance channel to 47 ft, and some $100m in dredging contracts have now been awarded.  But the Maersk Sealand issue is not settled yet by any means and Charleston’s other great disappointment of this year, its failure to secure approval for a massive new terminal expansion plan, may yet count against it.  Over the years Charleston has had to be imaginative in maximising the use of the space it had, converting every available square yard to profitable use, organising co-operative chassis pools and investing heavily in equipment.  The port is in the midst of a five-year, $165m capital plan for equipment and improvements to existing facilities. This year alone, it will spend almost $50m, buying six new rubber tyred gantries, five new seven-high stackers and four super-post panamax container cranes.  Yet it has long been apparent that a quantum leap in port capacity was necessary if Charleston was to keep pace with surging demand.  And the most immediate solution to the port’s quandary has been obvious for almost as long: development of an immense 1,300-acre site on Daniel Island, a broad peninsula separating the Cooper and Wando rivers, with the potential to more than double the port’s capacity.  The port has been homing in on Daniel Island for years.  It was already laying the groundwork for the project five years ago and, in 1998, port authority chief executive Bernie Groseclose said he expected to be fully permitted and ready to begin construction by the end of the following year, with a $400m first phase to include up to 3,000 ft of berth and 100-150 acres of storage space likely to be completed by early 2005.  It was not to be.  Since then, widespread local concern over the port’s plan has coalesced into a powerful opposition movement, deeply worried about the immense impact of the proposed expansion on the Charleston area and determined to stop Daniel Island in its tracks.  It includes conservationists and environmentalists, local politicians and the federal Environmental Protection Agency, residents whose homes lay in the path of projected new rail links to the terminal and other citizens convinced that historic Charleston and its way of life was in danger.  In the face of the storm, the port has retreated from its initial master plan.  In March the port authority’s board voted to build that first phase on the less sensitive, more industrialised Cooper River side of Daniel Island.  By August, it was considering a scaled-back terminal of 500-550 acres on the Cooper River side, though that option still faced opposition because of the need for a new rail link.  Now the board is examining three options: that same Cooper River site; the former Charleston Naval Base and a site in Jasper County on the Savannah River.  The Daniel Island site is more or less the same size but has more room for expansion.’  As for the Jasper County site, the Georgia Department of Transportation which owns it has denied port officials access, so estimates on any score are difficult.  It is Jasper County, though, that now seems to be emerging as the favorite, with major port terminal operator Stevedoring Services of America announcing last week that it was considering a new 1,000 acre terminal at the site and the state negotiating to buy the land.  Local reports suggest that SSA plans to invest $200-400m in the site, a long-time dredged spoils dump, with a potential start-up date of 2004 for the new facility.  The timing would certainly be convenient: recent trade analyses suggests new capacity could be needed as early as 2006.”

312.  The Port of Charleston on the Web <http://www.port-of-charleston.com>.

“The Port of Charleston consistently tops 40 gross moves per hour per crane and has set a new U.S. record of 64.8 moves ph/pc.”

313.  Bartelme, Tony. “Charleston's volume continues to increase.” Journal of Commerce on the Web May 31 2000. 31 May 2000 <www.joc.com>.

“Two-hundred-fifty years later, Charleston has reclaimed its trading and maritime prominence, emerging this time as the nation's fourth-busiest container port.  The main commodities pouring through the South Carolina State Ports Authority's terminals are containerized shipments of rubber, chemicals, textiles and consumer goods.  More than 40 ship lines use the port, including nine of the world's 10 largest.  These lines serve 140 countries.  More than 700 companies in South Carolina regularly ship their goods through the authority's four terminals.  Last year, powered by improving conditions in Asia and South America, Charleston handled the equivalent of 1.14 million TEUs, a volume exceeded only by Long Beach, Los Angeles and New York, according to the Port Import/Export Reporting Service (PIERS), a unit of The Journal of Commerce Group.  That was an increase of 13% over 1998.  In fact, during the last three months of 1999, Charleston led all U.S. ports in exports on the busy trade lanes to Northern and Southern Europe, the Mediterranean, South America and Africa.  Latin American container volume was particularly strong -- up 68% from 1998.  All told, the port moved a record 12 million tons of cargo worth more than $29 billion.  Charleston also has emerged as the nation's largest export hub to South America.  In 1999, Charleston's South American business jumped 75%, mainly because of new East Coast services to Brazil and Argentina.  Carriers have opted to consolidate their operations in fewer ports, moving services north from Florida.  Charleston was well-positioned to take advantage of an upturn in world trade.  Charleston handled 139,911 TEUs in March 2000, up 16% from the corresponding month a year earlier.  The pace of growth has been somewhat surprising; port leaders had predicted a more moderate increase for 2000.  The authority is in the midst of a five-year, $150 million effort to upgrade its terminals.  The port authority also has invested $9 million in its new yard management system, a comprehensive effort to track and manage boxes.  Officials believe these and other investments in its terminals will enable Charleston to accommodate growth for at least six more years before its box facilities reach their maximum capacities.  To ease these space problems in the long run, the authority hopes to build a new container terminal, dubbed the Global Gateway, on Daniel Island.  The first phase is scheduled to open in 2007, although the agency has encountered stiff resistance to its plans from environmentalists and local politicians.”

314.  “Eastern Offshore Hubs.” Pacific Shipper 5 Jan 2001. 19 Jan 2001

“The volume we transship through Freeport is growing,’ said Cluadio Bozzo, senior vice president, Mediterranean Shipping Company in North America.  Bozzo said the Freeport is a value-added service for its customers because the line is able to set up many new direct service routes throughout the world by transshipping at the Caribbean hub. ‘For us, Freeport has proved the concept that through transshipping we can maximize vessel usage in order to improve revenue and especially to improve vessel efficiency.  At the present time we are doing around 28,00 to 30,000 moves a month in Freeport and last year at this time it was 10,000 moves a month less. That is a very big increase.’”  He said that the increase isn't solely due to decisions made by the carrier to boost its use of the hub, but also to a general increase in business. Although transshipping means adding another step to the movement of some cargoes, it frequently speeds service by allowing boxes to reach their destinations without stopping at a number of intermediate points. ‘This is a vital link in our increasing global network,’ Bozzo said. ‘Cargo bound from Southeast Asia to Europe often gets transshipped in Freeport and we use it as a hub for cargo going to Miami. We also transship all our cargo to the Gulf through Freeport.  But for us, the reality for us, more than anything, is that it is exactly located in the center for all our services.  It's a place all our vessels have to go without leaving the trade lanes.’ Asked if larger vessel sizes and their associated deeper drafts was one reason for the booming use of Freeport, the MSC executive said it was only a minor consideration. ‘The reality is we can get any of our vessels into any East Coast port,’ Bozzo said. ‘The thing is we would like to put full vessels into the ports and we can't do that everywhere. We like our vessels to be completely full to maximize profits.’ While MSC is considering increasing the services that get transshipped through Freeport, Bozzo doesn't see it becoming a major feeder center for East Coast ports anytime soon. ‘Our only feeder service now is to Miami.  All others are just transfers from one mother vessel to another mother vessel.’”

315.  Mongelluzzo, Bill. “Asia-East Coast All-Water Route Attracts More Liner Services.”  Journal of Commerce on the Web 4 February 2000. 28 August 2000 <http://www.joc.com>.

“Most of the containers going to eastern states move on intermodal stacktrains to rail hubs there.  According to Mongelluzzo, the mini-landbridge from from the West Coast is the most popular with shippers because transit time to the East Coast is 7 to 10 days quicker than the all-water route through the Panama Canal.  All-water freight rates are about $300 to $400 per 40-foot container lower than mini-landbridge rates.  For most cargoes that move all-water, price dictates.  However, Mongelluzzo reports that though shippers save $300 or more per container, the savings on a per-unit basis is small.  For example, a $300 savings on a container carrying 1,500 boxes of shoes translates to a savings of 20 cents per pair of shoes.  With the quicker transits of mini-landbridge, and the large investments carriers have made in mega-ships, terminals and stack-train service, West Coast port executives say all-water services will skim only some of the growth from the Asian trade.  PIERS statistics show that although cargo volumes in the all-water services increased by 65% the past six years, the East Coast's share of U.S.-Asian trade declined slightly, from 16.9% to 16.7%.”

316.  Mongelluzzo, Bill. “Ports strain to keep up with Asian imports.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>.

“If the first four months of the year are any indication of what containerized imports from Asia will be like during the peak season, West Coast ports had better prepare now to keep their terminals open longer and to expand their intermodal capacity.  Containerized imports through West Coast ports are running about 16% higher than they were during the first four months of 1999, and the rate of growth appears to be accelerating.  The Port of Los Angeles, which attracted more than a half-dozen new shipping lines this past year, recorded a 44% surge in imports in April.  Imports in neighboring Long Beach increased 10.5%.  In Tacoma, which is benefiting from the addition of Hyundai Merchant Marine, imports increased 33% in April.  If these predictions are accurate, all participants in the intermodal chain will have to expand their capacity by the time the peak season cargo begins moving later this summer.  Union Pacific and Burlington Northern and Santa Fe railroads, whose orders of intermodal cars from TTX Corp. will increase by as much as 14%, could experience an equipment shortfall if imports continue to accelerate on the West Coast.  Harbor trucking companies are working longer hours.  Those marine terminals and importers that keep their gates open only 8 a.m. to 5 p.m. five days a week will have trouble securing enough drayage capacity during the peak.  Trucking companies are finding it difficult to attract more owner-operators to the harbors, so they must utilize the drivers and equipment they have more efficiently.  The long-haul trucking companies that carry shipments from the third-party consolidation warehouses on the West Coast to retailer distribution centers in the Eastern half of the country will also be strained to handle the growing traffic.  During the 1999 peak season, there was a severe shortage of long-haul trucking capacity from Southern California.  Third-party logistics companies and consolidators are expanding their operations rapidly, with no end in sight to the growth, said Kent Valley, senior vice president of Majestic Reality in Los Angeles.  Many terminal operators, especially those in Los Angeles-Long Beach, must move from a wheeled operation to a stacked operation during the peak months.  With carriers entering large new container ships of 5,000- to 6,000-TEU capacity into their Pacific Southwest services that call in Los Angeles-Long Beach, the Southern California port complex continues to grow faster than the other port ranges.  Container volume in Los Angeles-Long Beach increased about 400,000 TEUs each year for the past six years, and similar growth is projected for 2000.  The ports and intermodal carriers are under constant pressure to expand their capacity in order to avoid congestion.”

317.  Mongelluzzo, Bill. “Growth in containerized imports slows at Los Angeles-Long Beach.” Journal of Commerce on the Web 20 October 2000. 20 October 2000 <www.joc.com>.

“Containerized imports from Asia increased again in September through the nation's largest port complex, although not at the double-digit rate of recent months.  Imports through Los Angeles were up 22% over September 1999.  However, containerized imports through neighboring Long Beach declined 4.7%. Imports through the Los Angeles-Long Beach port complex increased 7.4% over September 1999.  Los Angeles-Long Beach is the largest gateway for Asian imports.  Importers and ocean carriers therefore view the statistics as a barometer of the trans-Pacific trades.  Also, September and October are considered the height of the peak shipping season.  The September statistics could indicate that the 15% growth in imports that trans-Pacific carriers have experienced most of the year is slowing down.  But port managers cautioned against attaching too much significance to month-to-month fluctuations.”

318.  “Seattle on the comeback trail.” Journal of Commerce on the Web 30 May 2000. 30 May 2000 <www.joc.com>

“The Port of Seattle was rocked last year when its biggest tenant, Hyundai Merchant Marine, moved its two weekly ship calls to the rival Port of Tacoma.  But in the last 12 months, the fifth-biggest U.S. container port has roared back.  It's landed several new trans-Pacific services and opened a new cruise-ship terminal.  The port has attracted weekly services from China Shipping Container Lines, Fesco, Zim Israel Navigation Co. and a joint service of Norasia and ESCO.  The Grand Alliance of Hapag-Lloyd, NYK, Orient Overseas Container Line and P&O Nedlloyd has added a fourth weekly sailing, the China Korea Express.  The port, in the first year of a five-year, $3.2 billion capital investment program, is doubling the size of its 110-acre Terminal 18.  A $300 million expansion program at Terminal 5, now occupied by APL Ltd. and the New World Alliance, was recently completed.  The terminal's size was nearly doubled from 88 acres to 156

The port's container volume, now about 1.5 million TEUs a year, has been growing at an annual rate of 2% to 4%.  Seattle's traffic is so congested, an air cargo warehouse complex adjacent to the airport at the south end would likely require up to a 30-minute drayage to reach the airfield.”

319.  “Sea Consortium starts third med feeder service.” Lloyd’s List on the Web 06 July 2000. 08 March 2001  .

“The Mediterranean arm of Singapore-based feeder operator Sea Consortium is starting its third service on July 18, writes Marcus Hand, Singapore.  The new fortnightly service operated by the 470 teu X-Press Italia will link Spain, Italy and Sardinia.  Sea Consortium is the managing agents for X-press feeders an established feeder operator in southeast Asia, the Indian subcontinent and the Middle East markets.  The company moved into the Mediterranean market late last year with acquisition of a small Italian operator Sea Med Link.  Sea Consortium said volume growth by its Adriatic service, which has been operating for two months, was “very encouraging particularly with the development of intermodal rail links to central Europe through Koper”.  Sea Consortium is not the only southeast Asian feeder operator to look to the Mediterranean region for growth. Indonesian-owned Samudera Shipping Line has been studying the market for some time, but has yet to make any concrete moves.  The X-Press Feeders group operates a fleet of 28 container vessels ranging from 300 teu to 1,500 teu through southeast Asia, the Indian subcontinent and the Middle East.  It also has slot share arrangements on a further 30 vessels with other operators.”

320.  Richardson, Paul. “China Shipping Group to order world's largest container ships.” Journal of Commerce on the Web 5 January 2001. 27 February 2001 <www.joc.com>.

“Li Kelin, China Shipping Group President, also is understood to have told China Shipping representatives and port operators on the U.S. West Coast that his company wants to offer a feeder network through Los Angeles that would deploy Panamax-sized ships for the Canada-U.S.-Mexico market.  Los Angeles would operate as a hub, with much of the direct trans-Pacific trade flowing through the port.  Kelin said the new ships will offer a high reefer capacity, with around 800 slots provided on each vessel.  China Shipping is expected to start ordering containers shortly, including 40-foot high cube and 45-foot boxes.”

321.  James, Canute. “Ports Prosper as Trade Grows in the Hemisphere.” Journal of Commerce on the Web Dec 1999. 19 June 2000 <http://www.joc.com/issues/19991207/t1rade/e51293.htm>.

“Because of its geographical location, the Caribbean has benefited from expanding trade between North America and South America.  The demand for increased transshipment facilities in the Caribbean has also been caused by constraints on the expansion of the more established ports in the U.S. Southeast.  In the future, the region may be dominated by two or three megaports, with the others becoming feeders.”

322.  Watson, Wade and Sydnee White. “Terminal 5: Another Innovative Port Venture.” Seattle Daily Journal of Commerce 30 Aug. 1999. 30 Aug. 1999 <http://www.djc.com/special/maritime>.

“According to the Seattle Daily Journal of Commerce, the Port of Seattle’s Terminal 5 load center has been designed to utilize an under-developed and polluted industrial property to help generate benefits to neighboring urban areas.  The 188-acre expansion presents the introduction of an on-terminal rail facility, operational innovations, and environmental mitigation measures.  Some of the design features include cleanup of 100-acreas of contaminated environment, computerized railroad operations, loading tracks to accommodate intermodal rail cars, pedestrian overpass structures, and public viewing towers of the bay and Seattle skyline.”

323.  Pacific Shipper “Eastern Offshore Hubs.” 5 Jan 2001. 19 Jan 2001

“Shaul Cohen-Mintz, president of Zim Israeli North America, says ‘we do have a small feeder activity from Kingston.  But for the most part, I don't think this will solve anything.  The volume of business into the East Coast calls for direct service.  Feeder service is correct for the Gulf and for neighboring ports in the Caribbean and Central America.’  For its limited feeder activity, he said Zim uses a ‘combination of feeders operated strictly by us and we use other operators to handle some of the feeder service.  We've been in the Port of Kingston since the early 70s, and we are growing together with it.  The port is taking the proper measures to develop its facilities and provide needed services.’  He said cargo volumes through Kingston are growing at 10 to 15 percent annually.  ‘Every year we add new markets and the hub becomes more important.’  For Zim, Kingston is one of five major hubs around the world, with the others in Hong Kong/Skekou, Columbo, Barcelona, and Haifa with a smaller hub operation in Busan, Korea, to handle car go intended for northern China.  He said the carrier has a formula it uses to determine where to position its hubs.  ‘It's the intersection of routes, plus facilities, plus proper prices at ports and the productivity of the ports.’  One person who would really like to see the Caribbean ports become true feeder hubs is Bruce Fenimore, president of Columbia Coastal.  The company operates barges along the East Coast, providing service from one U.S. port to another that can only be offered by so-called Jones Act carriers – companies that are U.S.-owned and operate U.S.-flag, U.S.-crewed, and U.S.-built vessels.  He sees a future for feeder services to the East Coast.  ‘The way shipping is going with bigger ships servicing fewer ports, I think this will get more prominent.’  He said each carrier will look at its Caribbean service differently, depending on its needs.  ‘It makes sense for some lines to use transshipment points without actually going to some ports.  That allows them to service more markets with fewer ships.  Each line has different needs for what trying to accomplish.  One line told me in the last couple of weeks that it is not expanding the size of its service outside the United States, but rather trying to find more places to expand.   I think the feeder ports will continue because terminals in the U.S. are running out of room.  There is a shortage of berthing space, room in terminals and even cranes in some cases.  We are commited to this and prepared to throw whatever assets at it when its needed.’”

324.  Pacific Shipper “Eastern Offshore Hubs.” 5 Jan 2001. 19 Jan 2001

“The potential of business in the Caribbean has lured one U.S. terminal company to expand there as well.  CSX World Terminals earlier this year announced plans to build a state of the art facility in Caucedo in the Dominican Republic, holding a 50 percent stake in the $200 million development.  ‘We have a long history of operating there – 20-some years," said Geret DePiper, chief commercial officer of CSX World Terminals.  ‘We had a number of reasons for choosing it for building a new facility.  The number one reason was the indigenous traffic we've been handling there for years.  But another driver was the possibility for developing a transshipment hub facility.’  He doesn't see Caucedo ever developing as a feeder port.  ‘We are too far away to function in that capacity.  Freeport is further north, and it would be hard to compete with them on that.  This will cater to the Caribbean, the north coast of South America and Central America and anything coming out of the Panama Canal.  Not every carrier chooses hubs using the same set of criteria.  Steamship lines like to feel special tenant, and they don't all want to be in the same port. Most lines choose hubs based on looking at their global fleet and where exchanges can best be handled.  In the Caribbean there are a lot of ports.  It's not like Singapore, where until very recently everyone had to go because there was no other choice.  Here there are four or five choices.’  CSX chose Caucedo because of a lower wage base, a work force he described as very productive and already trained.  ‘We will own the land with our partners.  It isn't a lease.’  Only half of the land purchased by the partnership will be used for the terminal.  The other half , which lies between the port terminal and an adjacent international airport, is being developed as a foreign trade zone.  The company is wooing apparel companies to set up operations there to take advantage of several sets of trade benefits. The whole Caribbean Basin, but especially the Dominican Republic is building a big apparel trade. That's the new model we're seeing around the world - companies trying to get enough land to have a terminal and a free-trade zone.”

325.  James, Canute. “Ports Prosper as Trade Grown in the Hemisphere.” Journal of Commerce on the Web Dec 1999 <http://joc.com>.

“The demand for transshipment facilities has also been caused by constraints on the expansion of the more established ports in the U.S. Southeast.  James Canute reports in the Journal of Commerce that in order to take advantage of growing business, Latin America would be dominated by two or three megaports, with the others becoming feeders.”

326.  Costantini, Peter. “Dry canal Across Nicaragua - International Consortium Plans Mega-Project.” Speakeasy Inter Press Service on the Web Oct 1996. 19 June 2000 <http://www.speakeasy.org/~peterc/nicaragua/drycanal/drycanal.htm>.

“For container traffic, which tends to carry higher-value and more perishable cargoes, the U.S. land bridge has grown in the last twenty years into a faster but more expensive alternative to the Canal.  Depending on the route and the cargo’s shelf life, shippers can save time by using more rail or truck, or save money by going farther on water.  U.S. engineering firm Parsons Brinckerhoff began a $20 million feasibility study of a “dry canal” or “land bridge” across Nicaragua in 1996.  The project would construct deep-water container ports and free-trade zones on the Caribbean and Pacific and connect them with a 210-mile high-speed railroad.  For North Americans, it would reduce shipping costs and benefit the consumer and important export companies.  Although it faces competition from proposed land bridges across other parts of Central America, it enjoys support across the Nicaraguan political spectrum.  The route across Nicaragua to the U.S. East Coast could cut the U.S. land bridge’s $1,500 to $2,000 per container price nearly in half, while remaining competitive on shipping time.  For containerized cargo heading from southeastern Asia to the eastern U.S. and Latin America, a sea-land-sea route across Central America might prove profitable.  Shippers could gain economies of scale by moving product across the Pacific in big post-Panamax vessels, transferring it into smaller feeder vessels at both ends of the dry canal for journeys north, south, and east.”

327.  McCosh, Daniel J. “Landbridge plan attracts skeptics.” Journal of Commerce on the Web 24 April 2000. 26 June 2000 <http://www.joc.com>.

“The Canal Interoceanico de Nicaragua, a consortium trying to raise money for the project, estimates that the project would produce a rate of return of at least 18 percent.  According to Daniel McIntosh from the Journal of Commerce, Nicaragua's political environment has stabilized, and the intermodal project has won backing from the government as well as from opposition leader Daniel Ortega.  Local leaders are excited by the promises of 20,000 jobs during the peak of construction and 6,000 jobs afterward to operate the facilities.  The project would be a huge undertaking, requiring two or three major river crossings and about 70 minor crossings.  Everything, including the ports, would have to be built from scratch.  With the Panama Canal project in progress, luring carriers from established connections across Panama would not be easy according to McCosh.  In addition, Panama has the benefit of ship traffic.  It has to either be cheaper than Panama, or faster than Panama and a good value for the money.  Jay Brickman, vice president at Crowley American Transport in charge of the carrier's Mexican service said, "the economy is obviously not there.  If it were, you would have more people looking at it.”  He said the extra unloading and loading required by a trans-isthmus intermodal connection would be expensive and risk delay and damage.  "Stevedoring is horribly expensive, and you risk moving containers to the wrong place, you could drop them, or have a ship on the other end that is out of sync.”  He said that a carrier that goes through the trouble of loading and unloading a ship likes to be able to count on some local cargo – for example, to supply the Los Angeles consumer market.”

328.  Privette, F. “First phase of dry canal investigation ready in August.” La Nacion on the Web 1998. 19 June 2000 <http://www.lanacion.com>.

“Prospects for eventual success remain uncertain.  According to F. Privette from La Nacion, if the project moves forward, it will take five years for construction.  The canal will increase the country's Gross Domestic Product and will place Nicaragua in the modern and global community.  The Nicaraguan President, Arnoldo Alemán, told the press that he holds his position on the construction on the canal.  If the President is convinced that it will not harm the environment and does not pose a threat to the country's sovereignty, he will support the project.”

329.  Stares, Justin. “Panama logistics hub tender.” Lloyd’s List on the Web 03 July 2000. 08 March 2001  .

“Howard air force base, which had already been eyed as a potential hub by couriers, will now be put out to tender alongside the new container port at Farfan.  The project also includes residential property, said Walter Myers, ARI marketing director.  “This is a huge project,” he told Lloyd’s List. “We are talking about 1,500 ha expandable to 2,500 ha, which is a third of the size of Panama City.”  The International Finance Corporation, the private sector arm of the World Bank, had agree to act as consultants for the project, said Mr Myers.  “They have told us that it is too big for one company, so the developers who get involved will be able to strike alliance with companies in other sectors.”  The deepwater port at Farfan will be designed to handle post-panamax box ships in line with the new generation of vessels able to use the third set of locks planned by the Panama Canal Authority, he added.  Dredging would be a “piece of cake” as the material on the bed of the port approach channel is soft.  The port will reportedly have a connection to the bi-oceanic railroad now under construction.  Panama has already established itself as a regional transhipment centre for the deep sea container trades.  Two large hub ports — the Stevedoring Services of America facility at Manzanillo and the Evergreen facility known as the Colon Container Terminal — are already operating on the Caribbean side of the isthmus.  A large container facility on the Pacific side of the Canal, known as Balboa and operated by Hutchison Whampoa, is also now going into operation; the port and the new Farfan facility will eventually compete, Mr Myers said.  With railfreight and airfreight connections expected to be up and running next year, Panama could soon be one of most significant multimodal hubs in the region.  In addition to DHL, the facilities to be put out to tender are understood to interest Ross Perot’s Hillwood Strategic Services and Evergreen Aviation.”

330.  Spurrier, Andrew. “Le Havre traffic at record high.” Lloyd’s List on the Web 10 January 2001. 13 February 2001  .

“Containerised general cargo accounted for most of the growth, increasing 7.5% to 13.8m tonnes.  Container transhipment traffic was particularly dynamic, showing a 16.5% increase to 2.7m tonnes. Ro-ro cargo rose 21.7% to 622,000 tonnes but Channel ferry freight dropped 5.8% to 2.6m tonnes — a reduction which the port attributed to competition from the Channel tunnel.  In the liquid bulk category, crude oil imports edged up 0.8% to 34.3m tonnes, while refined products surged 35.2% to 8m tonnes.  In solid bulks, coal was down 3.3% to 3.3m tonnes, while cereals moved up 1.1% to 0.7m tonnes.”

331.  “Testimony of Lillian C. Borrone, Director, Port Commerce Department, Port Authority of New York & New Jersey, and Chairman, American Association of Port Authorities, Before the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation.” American Association of Port Authorities on the Web 29 Jul. 1998. 30 Aug. 1999 <http://www.aapa-ports.org>.

“Lillian C. Borrone, Director of the Port Commerce Department at the Port Authority of New York & New Jersey and former Chairman of the American Association of Port Authorities, testified before the House on July 29, 1998, that cargo movement to and from the U.S. will be increasingly concentrated on larger vessels.  Borrone also stated that these vessels are expected to call at a few primary gateways, and other ports are expected to strengthen their roles as regional or feeder ports.”

332.  Freudmann, Aviva. “Big Ships, New Problems.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“The introduction of these larger ships is a big factor in the rapid growth of hubs for transshipment of cargo between large ships and smaller feeder vessels.  The development of transshipment hubs is attributable not only to market conditions, but also to improvements in port technology and inland transportation.  The increased use of transshipment hubs is changing the definition of feeder ships, whose average size is growing as steadily as the average size of mother ships.  In most parts of the world, a feeder ship used to be a small vessel with capacity of 500-to-1,000 TEUs.  Now, 1,500-TEU feeder ships are common, and ships with less than 500-TEU capacity are having trouble finding employment.  The average size of feeder ships is growing fastest in the Far East, where volume growth has turned some former feeder routes into major trade lanes.  The 4,500-TEU ships now used in the trans-Pacific and Europe-Asia trades may be transferred to the trans-Atlantic trade once the mega ships are delivered.  The ships now plying the Atlantic may be moved to smaller East-West routes, such as the Mediterranean, Europe-South America and South Atlantic lanes.”

333.  Freudmann, Aviva. “Western European Ports Riding Wave of Trade.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <http://joc.com>.

“In Western Europe, Drewry Shipping Consultants predicts that a regional port construction boom will add 8.6 million TEUs of capacity by 2005, with most of it expected to serve the transshipment trade.  By 2015, demand for transshipment services is expected to rise dramatically again, with another 13 million TEUs of capacity required.[xii]

334.  “Rail Costs Determined Megaport Selection.” Journal of Commerce on the Web 11 May 1999. 26 Aug. 1999 <www.wtci.org/maersk.htm>.

“Maersk/Sea-Land Service Inc., leader in the ownership of the new class of super-sized containerships, is building North American’s largest container terminal at the Port of New York/New Jersey.  The load center is in response to the general direction of the shipping industry’s consolidation of shipping lines and increasing vessel sizes.”

335.  Storey, Greg. “New Revolution: a Beltway for Ships.” Journal of Commerce on the Web June 2000 <http://joc.com>.

As vessels continue to increase in size, many ports will struggle to accommodate them.  However, recent changes in container shipping could improve transport efficiency without requiring new dredging, additional land, or extensive infrastructure improvements at most ports.  The Pure Transshipment Port concept shifts containers from the new mega-ships to other vessels.  The traditional-sized vessels would run from the transshipment ports to traditional seaports.  This would lead to an equatorial round-the-world service pattern using 12,000- to 15,000-TEU vessels that would move up to half the world's containers.  Meanwhile, the other half of the world's container trade would proceed as it does today, on a more direct basis between individual ports.  Transshipment would also enable carriers and shippers to achieve enormous economies of scale for high-volume cargo through the use of vessels of roughly double the size of an 8,000-TEU ship and would not require any technical or scientific advances.  The new ships would be operated in limited numbers at high speeds between a handful of ports built to handle them.  Because containers could be transferred directly between ships, traditional seaports and the new transshipment ports would not need to be dredged.  The ports could handle cargo more efficiently and productively than by unloading them to shore, moving them alongside another ship and then loading them onto that ship.  Marine transfers also would keep requirements for land to a minimum.  However, in order to implement the transshipment concept, the Panama Canal must be expanded.  At the present time, it cannot accommodate ships of more than about 4,000 TEUs.”

336.  “Testimony of Lillian C. Borrone, Director, Port Commerce Department, Port Authority of New York & New Jersey, and Chairman, American Association of Port Authorities, Before the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation.” American Association of Port Authorities on the Web 29 Jul. 1998. 30 Aug. 1999 <http://www.aapa-ports.org>.

“Lillian Borrone states that ‘this hub and spoke port system should be encouraged by the Federal government because the roadways and rails will be unable to efficiently distribute all of the cargo to or from a load-center port.  A hub and spoke transportation system will reduce truck traffic around load center ports, which will help many of the congested urban areas comply with the Clean Air Act.’”

337.  Freudmann, Aviva. “Big Ships, New Problems.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“The bigger ships could also lower per-unit costs for carriers.”

338.  Richardson, Paul. “The 18,000-TEU ship - No, that isn't a typographical error.” Journal of Commerce on the Web 05 June 2000. 05 June 2000 <http://joc.com>.

“The Malaccamax would call at up to six ports on a typical Asia/Europe string, and produce a 16 percent reduction in operating costs compared to the largest container ships in service today.”

339.  Tirschwell, Peter. “An Unmistakable Message to West Coast Ports.”  Journal of Commerce on the Web 7 April 2000. 24 August 2000 <http://joc.com>.

“Two groups of major international container lines have launched all-water services from Asia to the East Coast that go through the Panama Canal.  According to Tirschwell, they're intentionally bypassing the West Coast to get cargo to markets on the Eastern seaboard.  One is the consortium of Yang Ming Line, Kawasaki Kisen Kaisha ("K" Line) and China Ocean Shipping Co.  The other includes China Shipping Group, CMA-CGM and P&O Nedlloyd.  Evergreen Marine Corp., the world's second-largest container line behind Maersk Sealand, is reportedly considering an all-water route as well.”

340.  Pacific Shipper “Eastern Offshore Hubs.” 5 Jan 2001. 19 Jan 2001

“And, while off-shore hubs such as Freeport and Nassau, Bahamas; and Kingston, Jamaica are growing at double-digit rates, they are doing so more as transshipment points, not feeder operations.”

341.  Freudmann, Aviva. “Western European ports riding wave of trade.” Journal of Commerce on the Web 31 May 2000. 31 May 2000 <www.joc.com>.

“Drewry predicts that a regional port construction boom in the Mediterranean will add 8.6 million TEUs of capacity by 2005, with most of it expected to serve the transshipment trade.  That construction boom is projected to lead to overcapacity and falling terminal charges paid by carriers by 2005.  But in the decade after 2005, demand for transshipment services is expected to rise dramatically again, with another 13 million TEUs of capacity required.  Gateway ports, which serve defined hinterlands, still account for a majority of the throughput at Mediterranean ports.  But their share of the total, now estimated at 67%, is expected to drop to 55% by 2015, as transshipment volumes grow.”

342.  Luxner, Larry. “Puerto Rico to develop transshipment port at Guayanilla.” Journal of Commerce on the Web 5 October 2000. 5 October 2000 <www.joc.com>.

“The economically depressed Puerto Rican town of Guayanilla one day could be transformed into a giant port, transshipping cargo between the U.S. mainland and Latin America, Europe and Asia.  Puerto Rico Gov. Pedro Rossello announced recently that Guayanilla had been selected as the site for the transshipment port, based on a feasibility study commissioned by the Government Development Bank (GDB).  Guayanilla would vie with Kingston, Jamaica; Freeport, Bahamas; and even San Juan for transshipment business.  The government will finance $360 million, or 35%, of the project's total cost.  The remaining 65% would be financed by private investors to cover the cost of engineering services and infrastructure, though the Puerto Rican government would own the port facility's land and equipment.  ‘Right now, there are three or four global transshipment ports.  It is well-known that there's a need for another one or two value-added ports in the Western Hemisphere,’ he said.  ‘What we aim to do is capture the volume that is now going through Long Beach and other mega-transshipment ports.  The way we'll do it is have components coming from the Far East go through the Panama Canal directly to Puerto Rico, where value will be added for reshipping back to Europe and other destinations.’  Hector Rivera, executive director of the Puerto Rico Ports Authority said, ‘Puerto Rico is a natural place to handle transshipment of cargo that comes east-west or north-south.  But we have learned that, for the port to be successful, you have to have a local economy.  In Freeport, everything that goes in goes out.  There is no local economy.  They have been successful, but not in the way they first thought they'd be.  We're talking about a big draft port, and Guayanilla is a natural.  Guayanilla hasn't been dredged in 30 years, and still has a depth of 64 feet.  Also, you have more than 1,000 acres of land available around the Port of Guayanilla.  There is no development. Right now, less than 5% of the port's capacity is being used.’  Carl Fox, executive vice president of planning and administration at Navieras/NPR Inc. said, ‘one of the most important things is being able to get the rates that'll make the transshipment port competitive.  Number one, I don't know if that's reachable, and number two, I don't know if the authorities here have the capability to handle such a massive project.’  This year, the facility, which has been dredged to at least 40 feet, will handle 100,000 lifts -- about a third of that transshipment cargo.   ‘It's our goal as a company to develop a state-of-the-art transshipment and local cargo terminal in Puerto Nuevo,’ Fox said.  ‘It's our contention that, with a significantly less amount of money, you can develop a premier transshipment facility in Puerto Nuevo.  Yes, we need additional funds through the ports authority to further develop our facility, but I can assure you it's a whole lot less than $1 billion.’  Leo Holt, a spokesman for Philadelphia-based Holt Group Inc., which owns NPR, questions the Guayanilla project's return on investment.  ‘This project is a generation away at best, and our Puerto Nuevo marine terminal -- as it exists now and as planned for future expansion -- is a vibrant and thriving complex that can accommodate almost any conceivable growth in volume.’”

343.  Giles, David L. “Faster Ships for the Future.” Scientific American October 1997. 26 Aug. 1999.

“Fast ships have been on the drawing boards for many years because shipbuilders have been unable to design a ship that can deal with powerful waves and travel at high speeds.  Designers have also been challenged because ships battle waves of their own making.  The faster a ship travels, the larger the disturbances.”

344.  “ESG on the Web.” The Electronic Shipping Guide on the Web 19 Jun. 1997. 08 Nov. 1999

“Crowley American Transport has one of the largest, fastest fleet in the trade, with six ships having capacities of more than 2,000 TEUs and speeds over 20 knots.”

345.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 .

“Keeping pace with the demands of international commerce will require a more efficient line of ships that can deliver goods within hours instead of days or weeks.  Shipbuilders around the world are responding to international shipping demands and many have projects underway.  Companies such as FastShip Atlantic, Austal Ships, Incat, Finnyward, and WaveMaster are providing the craft to fill the need for speed.”

346.  “Speedy Delivery.” Marine Log on the Web 26 Aug. 1999. 26 Aug. 1999 <www.marinelong.com/DOCS/hisp.html>.

“Australia has become a leader in the high speed market and has pioneered its way into the Japanese market, the country traditionally known for building its own ships.  Australians see possibilities for fast freight services in North America as well, and Australia’s Advanced Multi-Hulls has licensed its technology to U.S. builders.  The AMD 1240 is a shallow draft, fast catamaran configured for high speed while laden with cargo in unprotected waters.  Loading of containers on the AMD 1240 is accomplished by using terminal tractors which maneuver the cargo over shore-based stern ramps into position on the main deck.  The vessel can carry twenty 48-foot trailers in five lanes, has a fuel capacity for an 800 nautical mile range, equating to 367 tons of deadweight, and has a full load speed of 46 knots.”

347.  Tinsley, David. “Fast Craft Review.” Marine Link October 1997. 26 Aug. 1999. <www.marinelink.com/oct97/MR1004.htm>.

“Additional building volume of this vessel over the 1997-2001 five-year period could amount to between 68 and 134 vessels.  These vessels are attracting shippers of mostly high-value, perishable goods that otherwise go by air.”

348.  “Revolutionary FastShip Design Coming.” Dermaga on the Web 08 Nov. 1999. 08 Nov. 1999 <http://members.tripod.com/dermaga/dreng.htm>.

“Another forerunner in the high speed market is FastShip Atlantic according to MGI.  FastShips are 770 feet long, can carry up to 1,360 TEU's, and travel at a maximum speed of 42 knots and a service speed of 37 knots.  FastShip plans to build and operate up to eight cargo vessels capable of crossing the Atlantic in less than half the time of existing ships.

349.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“FastShip appears to be farther along than its competitors in terms of raising capital and actually bringing its product to market.  FastShip has recently entered into a letter of intent with NASSCO to build up to four RO/RO ships (cargo containers that drive onto and off the ship) that will cross the Atlantic at close to 40 knots.”

350.  Giles, David L. “Faster Ships for the Future.” Scientific American October 1997. 26 Aug. 1999. <www.sciam.com/1097issue/1097giles.html>.

“FastShip plans to use gas turbines, based on aircraft jet engines, which are smaller and lighter than diesel engines of comparable horsepower, and water jets that produce more thrust than propellers.  The new longer and slimmer design makes smaller waves and allows the ships to move faster.  FastShips hardly slow at all in high seas and waves, traveling at about 40 knots and losing at most 2 percent of its speed.  FastShip’s deep, v-shaped bow cuts through waves and its wide, shallow rear with a concave profile underwater allows for a smoother ride at high speeds.  The FastShip is designed to reduce drag and enhance high-speed seakeeping relative to conventional long and thin hull designs.  FastShips are also more environmentally friendly.  Compared with marine diesels of the same weight and volume, FastShip’s latest gas turbines produce far greater amount of power for no more fuel.  The gas turbines emit only 4 percent of sulfur oxides and 5 percent nitrogen oxides that diesels produce.”

351.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“FastShip’s design improvements reduce total transit times between cities in Europe and the US to a week or less, compared to current cargo that takes 14 to 35 days.   FastShip is changing the way some ocean shipments move by focusing on door-to-door transit times.  Conventional container ships rely on cranes to stack containers, requiring loading and unloading times up to several days.  FastShippers are developing efficient loading and unloading systems and are allowing FastShips to call at only one port per voyage so all containers on board can be replaced at once, avoiding delays at intermediate ports.  Because gas turbines are much smaller than diesel engines, loading goods onto a FastShip should prove efficient.  Stevedores can roll cargo into the ship lengthwise instead of relying on a crane to pack it in from the bottom up, and FastShip can complete unload/load sequence in less than 6 hours.”

352.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“Though fast ships address the design limitations of conventional container ships, their major drawback is the expense.  The 774-foot transatlantic version, FastShip TG-770, is estimated to have an acquisition cost of roughly $155 million per vessel or approximately $115,000 per TEU of cargo capacity versus $10-20,000 for the conventional container ship.  FastShips also need tremendous amounts of power in order to move twice as fast as conventional ships.  Because turbine engines are less fuel-efficient than diesels, FastShips burn significantly more expensive fuel.  FastShip will burn more than ten times as much fuel per TEU as a conventional container ship.  FastShips would have to cruise faster (40+ knots) to control their unit cost disadvantages because its competitive advantage erodes with distance.”

353.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“Conventional container ships generally make multiple stops in North American, picking up traffic at each one (inter-porting), which results in longer and less predictable crossing times.  FastShippers are developing efficient loading and unloading systems, allowing FastShips to call at only one port per voyage so all containers on board can be replaced at once and delays at intermediate ports are avoided.  However, FastShip needs over $700 million in capital to launch the transatlantic service.  Furthermore, inter-porting fills up large container ships and gives ocean carriers the lowest unit costs.”

354.  “An Assessment of the U.S. Marine Transportation System, A Report to Congress.” U.S. Maritime Administration on the Web September 1999. 08 Nov. 1999 <http://www.marad.dot.gov/MTS/report/chapters/trends.pdf>.

“As international shipping volumes continue to increase, the intercontinental cargo industry will depend on improvements from ship designers to build more reliable, efficient vessels.  The question is whether vessels will be faster or larger.  As ships get larger, ports will become less able to accommodate them, increasing the need for dredging.  While fast ships do not require constant increased channel depths, dredging costs can be recovered more quickly at this point than the cost of fast ships.  Dredging deeper channels can also be environmentally friendly, and dredged material can have beneficial uses.”

355.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“The whole FastShip system is geared toward daily service with smaller loads and greater frequency.  FastShip is aimed at the higher-value and more time-sensitive traffic since shippers currently have no speed options between 7 and 14 days and no rate options between $.12/pound and $.45/pound.  FastShip is targeting the bottom portion of the existing air cargo market and the top portion of the ocean market.  Growing investment in large, high-speed vessels will pose considerable challenges to conventional vessels.”

356.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“The majority of ocean traffic is neither high value nor time sensitive and cannot justify the cost of FastShip’s service.  Each FastShip may make up to five times the number of transatlantic crossing/year, but with a six to eleven fold slot cost disadvantage.  The vast majority of existing ocean cargo is so rate-sensitive that it cannot afford any type of premium service.  It is likely that no more than 6-8 percent of the North Atlantic ocean market will shift to FastShip in the long run.  Carriers will ad “ro-ro” ships to their fleets and launch additional direct ocean service where feasible.”

357.  “Fast Ships.” Merge Global, Inc. MGI Cargo Analyst on the Web 26 Aug. 1999. 26 Aug. 1999 <http://www.mergeglobal.com/fastship.html>.

“While fast ships offer flexibility and improved service levels, they cannot offset the projected increased operation costs.  A “wait and see” attitude adopted by many existing ship owners has left the present order flow for fast ships at a moderate level.  However, as fast ships begin to out-perform conventional vessels, fast ocean services have the potential to spread throughout the shipping industry.”

358.  South Atlantic Ports Study 3.2.6, p. 3-11

“The trade forecasts for this study are developed on a route and commodity-specific basis.  Containerized trade for both U.S. imports and exports is forecasted to grow at a robust annual rate of 5.8% for imports and 6.5% for exports from 1991 to 2000.  The rate of growth for containerized exports will slow from 2000 to 2050 to produce an annual rate of 3.7% from 1991 to 2050, the entire period of the study.  Containerized imports are projected to grow at an annual rate of 2.8% from 1991 to 2050.  Over a 60-year period, growth rates averaging well over 2% or 3% a year amount to huge increases in trade volumes.  Outbound, there will be 35.1 million twenty-foot equivalent units leaving the U.S., or 8.6 times the number that left the country in 1991.  Inbound, where the growth is projected to be more moderate, by 2050 there will be 24.6 million TEUs coming into the U.S., or 5.3 times the 1991 level of 4.6 million TEUs.”

359.  South Atlantic Ports Study 5.2.3.1, p. 5-14

“DRI/McGraw-Hill projects that b the year 2050 total South Atlantic import and exports trade will grow to 500% and to 800% of today’s levels, respectively.  The fastest growth will occur for trade either destined to and originating from the South Atlantic region itself.”

360.  South Atlantic Ports Study 5.2.1, pp. 5-2

“The exports through South Atlantic ports will continue to grow more quickly than the imports.  However, unlike a decade earlier, trade through the South Atlnatic ports is projected to grow slightly more slowly than that of the country as a whole.  The South Atlantic will see its outbound trade to the world grow at 5.8% between 1991 and 2010, while U.S. outbound trade growth will be marginally larger at 5.9%.  Inbound, the South Atlantic will see 4.3% growth, while again the U.S. will experience a marginally higher rate of 4.4%.  Between 2010 and 2050, growth rates will roughly halve, with the U.S. growing a bit faster than the South Atlantic region.”

361.  “UK haulers increase pressure over diesel cost.” Lloyd’s List on the Web 28 August 2000. 08 March 2001  .

UPS Logistics Group has won a five-year $150m contract to manage National Semiconductor’s global supply chain.  A new dedicated global distribution center in Singapore will manage the fulfillment of more than 450,000 semiconductor orders a year, with an average delivery time of 48 hours.  It also has the capacity to receive an average 12m inbound chips per day.  National Semiconductor expects to ship 4bn products this year, twice the amount in 1999.”

362.  South Atlantic Ports Study 4.2.3, p. 4-10.

“The assessment suggests that the current infrastructure capacity will be adequate to meet the needs of increasing container and other traffic for the next 18 years.  Beyond the year 2010, given no change in current infrastructure capacity or modal splits between highway and rail, highway capacity could potentially become an issue.  Although the assessment does not suggest any overall capacity constraints, the general approach does not address potential route-specific capacity issues.”