No-sulphur rules to push up freight rates


12


Stena Line warns that the new sulphur directive in North European waters will have a significant economic impact on its business when it comes into force on 1 January 2015. It was one of the key drivers behind Stena Line’s decision to implement a company-wide two year Change Programme in 2013, to improve performance by £100m and included an increase in freight rates. For Stena Line, the changes mean a direct increase in fuel costs of more than £100, 000 per day, or around £41m per year as a result of having to use the more expensive low sulphur fuel. The move would have the


biggest impact on the ferry business since the withdrawal of duty free in the EU, Stena calculates. CEO Carl-Johan Hagman said Stena would have to increase prices by around 15%. “Unfortunately we are leſt with no alternative but to pass on the imposed increase in costs to our freight customers,” he added. Stena will start trials of


methanol as a potential fuel on one of its ferries while taking a closer look at deploying scrubber technologies and using LNG as a possible fuel. But converting and rebuilding our ferries will both take time and require a significant investment.


Several other shipping lines say


that they will implement a fuel surcharge when the International Maritime Organisation’s new Emission Control Area for North Europe comes into force from 1 January 2015. They include leading container carrier MSC – further details are at www. mscgva.ch. The ECA imposes stringent new limits on ships’ sulphur emissions, forcing operators to either to switch from marine heavy oil fuel to more expensive marine diesel or fit expensive scrubber equipment to their vessels. MSC’s plans include a $105 per teu increase from the UK and


Ireland to the US North Atlantic, $125 to the US South Atlantic, €140 to Canada and €45 to Asia. Peel Ports-owned short sea


operator BG Freight Line says it is adding a surcharge of €26 per teu for all UK East Coast ports and €34 per teu for Irish Sea and French Ports. Containerships adds that it will be he first shortsea operator in Europe to run ships on LNG aſter it ordered two additional dual-fuel engine-technology ships. The Finnish-owned line has already ordered two similar vessels earlier this year. The first two ships will be delivered in 2016 and the others in 2017.


Portsmouth-Le Havre set to shut


DFDS Seaways says it plans to shut its twice-daily Portsmouth to Le Havre freight and passenger ro ro service, following a meeting with union representatives in France.


DFDS Seaways France took over the Portsmouth-Le Havre service in 2012 as part of its joint venture with LD Lines but both companies have consistently recorded heavy


financial losses on this service since 2005. DFDS said it had cut costs on the


route to make it more competitive, including replacing the Norman


Voyager ship with a smaller vessel, as well as a series of sales and marketing initiatives to grow the potential customer base, but to no avail.


Writing on the wall for MyFerryLink?


Eurotunnel Group said it “regretted” the position taken by the UK’s Competition and Markets Authority (CMA)’s final order, in which it rejected


all its observations in its dispute over its MyFerryLink ro ro subsidiary. The Tunnel operator said that its position confirmed the “unalterable


determination of the CMA to bring to an end the activities of MyFerryLink.” Eurotunnel has continued to operate its MyFerryLink


subsidiary between Dover and Calais pending the outcome of an appeal which will be heard on 24-25 November.


Issue 7 2014 - Freight Business Journal


News Roundup


IAG Cargo says it will offer a full cargo service on the new British Airways passenger flights due to be launched between London Heathrow and Kuala Lumpur on 27 May 2015. Flight BA033, operated by a Boeing 777-200ER with about 12 tonnes of cargo capacity, will depart Heathrow daily at 20:15, arriving into Kuala Lumpur at 16:00 local time. The returning BA034 will leave Kuala Lumpur at 23:05 local time and arrive into Heathrow at 05:25 the next morning, enabling next day connections to almost all destinations on the IAG Cargo network.


///NEWS Air


IAG Cargo and cold chain management consultancy Exelsius have teamed up to provide the Healthcare and Life Science industry with a certificated training workshop in Good Distribution Practices (GDP). It combines classroom training in the correct handling of temperature sensitive pharmaceutical products, with a ‘live’ visit to an airport airside area. The introductory workshop will be held in London on 11-12 November For further information and to register, email GDPAcademy@ exelsius.co.uk


IAG Cargo has signed up logistics network IFLN as a preferred global forwarder partner. IFLN can use the carrier’s network of more than 350 global destinations while IAG Cargo gains access to IFLN’s freight forwarder network. Its president Michel Vanlerberghe remarked: “IFLN counts among its members top-quality air freight forwarders based right around the world – something which may explain the repeated success that the network has enjoyed in similar partnerships with other global carriers.”


Luſthansa Cargo is adding Tunis to the schedule of its freighter service to Lagos. The airline has been flying an MD11F to Nigeria twice a week since mid-September. The route will be served every Tuesday.


Air Charter Service is offering a free aircraſt guide smartphone and tablet app, with detailed information on more than 200 different aircraſt types. It includes a range of commercial aircraſt currently in service, including cargo planes with and detailed cargo hold dimensions - http://www.aircharterservice.com/aircraſt-guide-app


American Airlines and US Airways will move to a single air waybill using the American Airlines prefix 001 from 20 October. It follows the ongoing merger of the two carriers’ cargo operations.


Cargolux Airlines added a second 747 freighter flight to Beijing and Xiamen from 17 September. It complements the existing Friday flight inaugurated in 2006.


Cargolux has welcomed its 11th Boeing 747-8 freighter, named City of Zhengzhou in honour of its recently established hub in the Chinese city. Cargolux plans to increase its flights between Luxembourg and Zhengzhou to multiple daily.


Cargolux Airlines operated another charter flight to Monrovia, Liberia for Médecins Sans Frontières on 19 September. The 71-tonne consignment included personal protection equipment kits and three tonnes of chlorine for MSF’s Ebola treatment centre in the capital of Liberia. This is the second of several charter flights operated by Europe’s leading all-cargo carrier for the humanitarian organisation.


A team of 11 FedEx volunteers spent more than 50 hours helping to clean and paint the Action for Children’s Southwark Young Carers centre and even gave the garden a makeover as part of the ‘FedEx Cares’ initiative. Action for Children corporate fundraiser, Sam Waizeneker, gave “a huge thank you once again to FedEx volunteers for giving up their time to support our services in London. Our young carers and their families are delighted with the new-look centre.”


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