Over the last few years, international shipping has come under increasing pressure. The increased demand combined with the sometimes strained supply and access to human resources has seen shipping costs skyrocket.

Many of Australia’s ports have seen backlogs and congestion which adds further cost to sea freight shipments. Freight forwards such as SPLS (that’s us!) can always look for better deals or alternative arrangements for you, however, this is only part of the solution. Costs are rising globally and another part of the solution comes from port management.

One way for the ports to combat increasing costs is to deal with port capacity and congestion. A number of Australia’s major ports are doing this in various ways.

Port Melbourne – Australia’s largest container port

Port Melbourne handles more shipping container freight than any other port in Australia. As such, it is vital to much of the import/export trade for business and consumer goods throughout south-eastern Australia.

To reduce delays and increase throughput, Port Melbourne is adding new physical infrastructure in the form of quay upgrades. The main quay is being extended an additional 71 metres. This will allow two larger ships to be at berth at the same time, thereby greatly reducing waiting times.

Additionally, upgrade works for other docks include crane renewals and improvements to the wharf decks and safety elements. These will all help to extend their design life and throughput capacity. Furthermore, additional rail facilities are being added to the port in order to remove some of the stress on the surrounding road systems. This, in turn, should further improve container shipments that do require road transportation.

Port Botany – Sydney Freight Shipping

Port Botany in Sydney has taken an alternative approach to increase cargo movements. Instead of large-scale physical infrastructure works, the port has invested in new information technology.

A system known as “Dynamic Under Keel Clearance (DUKC)” delivers precise real-time data to assist in ship berthing. This technology helps berth ships more safely by monitoring ships’ displacement and dynamic motion whilst matching with live weather conditions.

DUKC allows ships to be berthed more quickly without reducing safety. It also allows larger capacity and deeper ships to be berthed as the factors required for this can be more accurately monitored in progress. New records were recently set for both the heaviest container ship to ever berth at the port, and also the deepest ship.

The end purpose of this new technology is to increase the size and number of ship berths at the port without impacting safety. This thereby increases the overall throughput of cargo and reduces congestion.

Port Headland – Western Australia

Port Headland is of major importance to mining (mostly iron ore), however, it also deals with bulk liquids and general cargo. The new development plan for the port supports a 41 percent upgrade in capacity compared to the previous review in 2012.

Much of this new development relates to bulk materials loading and transport, which is not so important for freight forwarding. There is, however, also a plan to develop a second general cargo berth. This will allow greater movement of shipping container cargo.

SPLS Freight Forwarders

It is hopeful that these and other port upgrades will help somewhat reduce the stress on international sea freight shipping (thought here are currently many other factors).

We can help with everything from simply arranging cargo shipping, to the development of a comprehensive freight plan to assist your business goals. If you want to import or exports goods between Australia and anywhere around the world, come and speak with us – the freight specialists.

The post Boosting International Freight Shipping With Australian Ports Upgrades appeared first on Air and Sea Freight Forwarding Logistics Specialists.

With the impact that climate change is making on our planet and civilisation, humans are investigating ways of becoming more environmentally friendly.

The freight forwarding and shipping industry in particular currently have limited options open to them. Ocean-going vessels for sea freight, aircraft for air freight, and trains and trucks for road transportation still rely primarily upon fossil fuels.

Additionally, the international freight industry typically deals with very large equipment (vessels averaging upwards of 100,000 tonnes deadweight). Because of the size and scope of the shipping industry, there are types of environmental impact other than the carbon footprint. These include marine noise pollution and other forms of air or water pollution.

The good news is; much research and development are being done to address these issues. Furthermore, legislation has been introduced in many countries aimed at limiting shipping pollution in all its forms.

Let’s start by looking at some of the research into alternative propulsion methods and types of fuel for shipping.

Alternative Marine Fuels

The development of alternative fuels is driven primarily by the need to reduce carbon emissions (as well as nitrogen and sulphur emissions). Whilst each of the alternative fuels mentioned below achieves this aim, the difficulty is in making the fuel production process economically viable. This will be an important challenge over the coming years.

Hydrogen

Hydrogen is currently seen as a promising option for eventually fuelling cargo ships and reducing environmental impact. Stored in fuel cells, hydrogen would power the ships propulsion, electricity generation requirements, and heating.

There are two types of hydrogen fuel available:

• Blue hydrogen, which is generated as part of natural gas or coal production, with carbon emissions being captured and sequestered.
• Green hydrogen, which is produced by electrolysis using renewable electricity from sources such as wind or solar.

Hydrogen can be completely emissions-free up to the point of combustion, however, it does have some drawbacks. Hydrogen is highly flammable and requires special storage conditions. It also has a relatively low energy value (meaning you need a lot of it to power something).

Combusting hydrogen in some circumstances can also produce nitrogen oxides (harmful pollutants) which would need to be captured as part of the process.

Green Ammonia

Ammonia is seen as a viable option to hydrogen. It has a much higher energy density and can be stored more easily and safely.

Ammonia can be produced from green hydrogen, loaded and stored on the ship, then converted back to hydrogen onboard.

The downsides to this fuel alternative are cost and toxicity. As there is an additional production step beyond green hydrogen, this will push the cost up. Also, ammonia is highly toxic to animals (both human and marine life). This will require careful handling.

Methanol

Methanol is already used as a fuel for some shipping and is available at over 100 ports globally.

Whilst is offers a generally clean fuel option, methanol does have a relatively high amount of formaldehyde emissions. It also has only a moderate energy density, delivering less mileage and requiring more frequent refuelling.

Some ships are being developed as dual-fuel vessels, given the option for various fuel usage depending upon the circumstances.

There is an additional issue with all of these alternative fuel sources; for them to become mainstream, a massive change in infrastructure will be required.

Clean Propulsion and Fuel Reduction Methods

Another way of reducing emissions is to make existing fuel usage more efficient. By reducing the fuel usage of a given voyage by 20% you thereby reduce emissions by 20% (as well as fuel costs, of course).

This goal is driving the development of new technologies that were not previously considered a priority. Energy efficiency technologies such as optimisation systems for steering and propulsion can deliver considerable fuel savings.

Other systems are available that monitor power production and match generation with predicted requirements much more accurately. By eliminating energy wastage, ships require less fuel.

Another growing trend, perhaps seen as an easy win, is wind-assisted ship propulsion. By adding sail-like configurations, sometimes to existing ship infrastructure, significant savings in fuel usage can be made. The “sails” take advantage of prevailing wind conditions to help propel the ships.

Lowering Carbon Emissions and Other Pollutants

Carbon dioxide is a primary emission contributing to climate change, however, there are other harmful pollutants as well.

Two common polluting emissions in the shipping industry are nitrogen oxides and sulphur oxides. Both of these are generated (along with CO₂) with the combustion of traditional hydrocarbon fuels. Methods for onboard capturing and sequestering these pollutants is a goal for new technologies

Carbon capture systems for shipping are in ongoing development, with options recently becoming available and tested.

Alternative fuels do not have problems with sulphur oxide emissions, however, nitrogen oxides can still be an issue with hydrogen.  Ships using these fuels also require onboard systems for nitrogen oxide capture in order to remove these pollutants.

Noise Pollution

Up until now, we have spoken only about fuel usage in the shipping industry. There are other forms of marine pollution and environmental impact which shipping is a major cause of; namely noise pollution.

Marine noise pollution can have a serious impact on marine life, especially larger mammals such as whales and dolphins. It affects their ability to communicate properly, a little like a human trying to speak with someone at a loud party. This can lead to issues with navigation, such as mass strandings.

High levels of marine noise is also correlated with an increase in stress hormones with species of crabs and fish. This causes them to spend more time looking for danger than caring for offspring, with mortality rates increasing dramatically as a result.

More work is currently underway to understand the impact of marine noise and methods for avoiding it. The DNV classifications organisation has started a classification standard for ship noise, called the SILENT class notation. These offer goals and guidelines for measuring and reducing underwater noise in shipping and other marine activities.

Bans and Legislation – reducing environmental impact through law

The final angle this article notes with regard to progress for environmental protection is legal. In recent years there has been a growing understanding of the damage being done to the planet through human activity. In many countries legislation has been introduced to recognise and address this.

The current global standard for addressing pollution from shipping is, The International Convention for the Prevention of Pollution from Ships (MARPOL). This forms the basis from which many governments around the world introduce laws surrounding shipping.

These include, amongst others:

• Guidelines for the maximum level of sulphur content in shipping fuel oil.
• Ban for the usage and carriage of heavy fuel oil (HFO) in arctic regions.
• Recommendations for the treatment and suitable disposal of toxic or polluting substances in the shipping industry.
• Recommendations for the treatment and disposal of traditional garbage and waste created onboard ships.

Whilst there is much work to do, progress is being made. Many governments and companies are beginning to see the benefits, both environmentally and economically, of promoting change in the industry.

SPLS believe in supporting this change and actively look for environmentally friendly options in shipping, where possible. We can help develop shipping plans that take this into consideration.

If you are concerned about the environmental impact of your ocean freight shipping, come and speak with us.

The post A Green Future for Freight Forwarding appeared first on Air and Sea Freight Forwarding Logistics Specialists.

The freight forwarding and shipping industry has had a tumultuous few years, with no signs of a let-up any time soon.

Whilst there is always something happening in the shipping industry, the global nature of COVID-19 introduced a new set of issues. Together with the more standard everyday issues such as poor weather and industrial disputes, these have combined at times to create the “perfect storm”.

For anyone wanting to transport goods internationally, whether import or export, this means delays and costs.

Factors causing delays in international shipping

There are numerous factors that can cause delays in the arrival of goods to their intended destinations. These can range from minor to extreme, and common to rare in the likelihood of occurrence.

Whenever there is uncertainty with overseas shipping, especially sea freight, the added costs inevitably fall back onto the customer.

Weather

Poor weather is always the enemy of international shipping, especially for ocean freight. With climate change, however, the variability and incidence of extreme weather events are growing.

Bad weather can cause delays to the vessel’s arrival at a given port or force it to redirect to another port. In the worst case, extreme weather can cause damage to containers and contents, or the ship itself.

Industrial disputes, port strikes, and closures

More common in developed nations, industrial disputes can restrict cargo movements at a given port. This can result in delays in offloading, or redirection of the vessel to another port to offload.

Redirection to an alternate offloading port means that goods need to be shipped overland by road transport. This adds both additional time and costs to a shipment.

Trade disputes and restrictions

Trade disputes can cause disruption and uncertainty between different countries which can flow on to changes in shipping schedules. Even if your goods are not under restriction, the reduction of overall shipments can impact the time it takes to get yours.

Wars and civil conflict

Wars and conflicts break out at various times and places all over the world. This can lead to complete border closures or restrictions of cargo entering or leaving a given country. At the least, these tend to cause delay.

Extended quarantine

Whilst COVID-19 was a global event, there have at times been more localised epidemics. These can cause a high level of restriction and delay in shipping to the involved countries.

Extended quarantines can be required for certain goods, or shipments arriving from those countries. This complicates not only the actual transportation of goods but their handling at either end of the journey.

Additionally, under these circumstances, preference is often given to the personal safety of the crew, handlers, and port staff.

Access to shipping containers

There has been considerable upheaval in the flow of sea cargo around the world. Because of this, some regions can end up with an excess of shipping containers and others with not enough.

If there is a lack of containers in the country you wish to ship from it can take longer to source shipping containers. Additionally, some shippers are willing to pay more for containers in order to get their goods moving. This means shippers are faced with the choice of added cost per shipment or further delay.

Accidents

A notable recent event, the blocking of the Suez Canal, caused massive delays in shipping worldwide. Ships and shipping companies were faced with the choice of an unknown wait for the canal to be re-opened or a longer and more dangerous trip around the Horn of Africa. Either way, this caused delays and additional costs.

Accidents, unfortunately, cannot usually be predicted (though accidents due to safety issues could potentially be). In these circumstances, it is important to have your freight forwarder keep up to date with the situation, or look at other alternatives.

Further effects of international shipping uncertainty

Delays with international sea cargo shipping can have a variety of secondary effects, most of which further impact time and cost. These can include;

• Backlog of goods and containers waiting to enter the origin port.
• Vessels are more full than usual. This can result in longer unloading times, or more ports to visit.
• A possible end to ship-on-demand or drop-shipping for which turnaround times are growing too long. This may mean a return to more goods warehousing locally in order to balance out uncertainties in shipping times.
• The increasing price of some goods.
• Greater difficulty in sourcing certain raw materials for manufacturing.

The flow on from extended shipping times may touch upon many areas of business, which in turn will affect consumer access to goods.

The important thing is that trade will not stop; we’ll just need to discover new ways of working.

How you can save money or disruption in uncertain times

There will always be the potential for late shipments or additional costs with international freight. There are, however, a few things that may help reduce costs and disruption to your business.

• Use a freight forwarding company that knows the shipping industry well, like SPLS.
• Have your freight forwarders negotiate deals, or look at alternative shipping lines.
• Consider locking in shipments further in advance. Develop detailed shipping or freight plans.
• Don’t rely on ship-on-demand freight; it is no longer reliable. Consider shipping larger volumes but warehousing locally.
• Pair with other shippers, but only ones you trust totally.
• Integrate rises in shipping costs with your pricing models. Don’t worry too much about the competition with this. Almost everyone who import/exports is in the same boat (no pun intended), so they also need to either absorb the cost or pass it along.
• Look at local manufacturing alternatives, even if it is just to continue supply whilst awaiting further shipments.

To discuss your import/export shipping options, come and speak with us.

The post Uncertainty in International Shipping and Freight Forwarding appeared first on Air and Sea Freight Forwarding Logistics Specialists.

24 Nov 2011 | MISC Berhad

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