Tag Archives: ocean shipping

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Hamburg deepens Elbe channel

The project will cost $700 million, and it went through a long series of legal battles, mostly about environmental issues.  But now the project is ready to begin. The Port of Hamburg let the contract to DEME engineering, as World Maritime News reported.  Dredging Today reported that the contract has a value of EUR 238 million (including VAT). The article below contains many facts about the project’s scale, but does not offer a completion target date.

It is interesting to point out, as  did in his Loadstar article, that Hamburg, by virtue of its inland location, is also able to link with rail service via the One Belt One Road initiative of China, as well as multiple barge routes.

The Maritime Executive reported that the project was approved finally in August of 2018.  But such a large investment takes time to get ramped up.

There is still some resistance to the project and there are a few appeal opportunities left. But it seems very unlikely that opponents will take them up.

The port has recently experienced an upsurge in container traffic.  According to Port of Hamburg, almost one-third of the container traffic is related to China.  Seaborne cargo throughput reached 34.6 million tons, up 6%.  Container handling reached 2.3 million TEUs.  Some of this was due to four new transatlantic services run by THE alliance.

And hinterland traffic grew 8.0 percent.  Hamburg is famous for offering many feeder links, including around 2100 block train (unit train in US lingo) connections.

Part of the upswing is due to volatility induced by the tariff games going on in the world right now.  Firms are stocking up before the tariffs go into effect.  Whether the upward trend will continue is unclear, but certainly deepening the Elbe waterway will offer ocean carriers greater flexibility in route selection.

I have a special fondness for the Port of Hamburg after visiting it for the IAME conference in 2016.

screenshot-Dredging today 2019-05-21  via DEME Bags Elbe Deepening Contract – Dredging Today

logo  via Elbe upgrade signals opportunity for port of Hamburg to regain former glory – The Loadstar

screenshot-Maritime Executive 2019-05-21  via Hamburg Receives Approval to Dredge the Elbe

screenshot-World Maritime News 2019-05-21   via Elbe Deepening Contract Goes to DEME | World Maritime News

screenshot-Port of Hamburg 2019-05-21  via Port of Hamburg | Port of Hamburg – strong first-quarter growth powers upswing

 

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CMA CGM and CEVA detail tie-up

Chris Dupin has an interesting article in the most recent American Shipper.  CMA/CGM is trying to buy a majority interest in CEVA, the 3PL firm based in Switzerland.   CEVA has been the target of another buyout effort by DSV, another 3PL.  the time was certainly ripe for a consolidation in both the 3PL and the maritime transport space.  This merger or combination is another attempt to deepen the reach of a maritime company into downstream supply chain management.

Like all of these mergers, we’ll have to see if it works out, and if the combination succeeds in improving results for shippers and receivers of goods.  But for me it is  a step in the right direction for a maritime company.  If you try to tackle the downstream problems, you will start to understand how to improve and deliver more value.  Whether a purchase is the best route is an open question, but it is certainly a good try.

The article also points out that CMA/CGM is innovating in other ways now.  It has an in-house incubator, ZeBox, of small concerns that have ideas for improvements. It’s moving ahead on tracking containers and monitoring some of the risk conditions they face while traveling; and it is making some investment in bill of lading improvements through a blockchain technology project with BuyCo, another startup.  These are certainly ways to get innovators thinking about the maritime supply chain problems.  Who winds up with the rents is yet to be determined.

 

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via CMA CGM and CEVA detail their tie-up

New Paper in American Journal of Transportation and Logistics

My colleague and I and a student recently published a new paper in the American Journal of Transportation and Logistics.  You can see it below.  The paper is based on a presentation made at the International Association of Maritime Economists’ 2017 annual meeting in Japan.

The paper is about Ocean Trading Intermediaries (OTI’s) and their distribution across the US. The data came from the Federal Maritime Commission’s lists of registered US and foreign OTIs, which includes Ocean Freight Forwarders and Non Vessel Owning Ocean Carriers.  WE discuss the history, legal framework, and current conditions facing OTIs and make special reference to the Chicago area, in which a cluster of these businesses has arisen.

We used statistical cluster analysis to show that despite the belief that ocean freight forwarding is becoming more technology driven and thus able to locate anywhere, the businesses still choose to form clusters in major ports.

AJTL logo   via Built to Last? The Changing Role of Ocean Transportation Intermediaries: Disintermediation and Reintermediation – eSciPub Journals: Open Access Peer Reviewed Journals

You can get the pdf here.  AJTL-2018-01-0201 published

How to cite this article:
Christopher Clott. Built to Last? The Changing Role of Ocean Transportation Intermediaries: Disintermediation and Reintermediation.  American
Journal of Transportation and Logistics, 2018,1:5.