OMAN SHIPPING TO GET A SECONDHAND CONTAINER SHIP OF 3000TEUS

September 29 - According to the Times of Oman, the Oman Shipping Company (OSC) is looking for secondhand container ships, each with a capacity of 3,000 teu.

The company which is best known for its tanker fleet, has a couple of container liner services.
One, Gulf Express, is operated between the ports of Sohar and Jebel Ali, UAE, and also calls at the ports of Khorfakkan and Sharjah. This service was started in April last year using a multipurpose chartered vessel, which can carry 400 teu and project cargoes.

Its other container shipping service (Oman Express) connects the ports of Jebel Ali, Sohar, Duqm and Salalah and goes back to Jebel Ali.

CONTAINERS FOR SALE : KENYA, UGANDA & SOMALIA

We once again have Shipping Containers ready for quick sale, in good sea worth condition, OVER 200 Container UNITS AVAILABLE TO CHOOSE FROM.

Total Price in Mombasa: 

20ft = $1600

40ft =$2600 (Transport Not Included)


Total Prices in Nairobi :

20ft = $1800

40ft = $2800 (Transport Not Included)

Total Prices in Kampala : 

20ft = $1700

40ft = $2500 (Transport Not Included)


Reefers

Total Price in Mombasa: 

20ft = $7000

40ft = $8500 (Transport Not Included)


Good discount given for bulk buyers and commissions given for referrals;

Viewing and reserving a container/s with Depot Managers recommended.

Terms of payment = Bank to Bank Transfers with RTGS copy as proof of payment, and you get release order on confirmation of payment, Cheques accepted, but release Order issued upon funds receipt confirmation.


NB; All units, are Ex EU, legally owned, some with valid CSC plates and can be used for export, and sold with Inter-change, and all relevant documents, including, Invoice, receipt, and Condition Report, and we will undertake minor repairs, paint and Cleaning if required.


We also offer, leasing, storage units, and transport at very discounted rate, and Container conversion / Fabrication, to accommodation units, shops, Toilets & washrooms, living quarters, according to customer demand.


(Transport empty containers @ Ksh 50K -Mombasa – Nairobi per truckload). Within Nairobi or around Mombasa possible. 

E-mail: asline@africanshippingline.ae or africanshippingdubai@gmail.com 

MSC, YANG MING LAUNCH SERVICE FROM HAMMAD PORT, QATAR

Two new maritime lines are being launched from Hamad Port on September 17 which will enhance Qatar’s trade connections with various ports in China, India, Malaysia, Turkey and Greece, among other countries.

Qatar Ports Management Company (Mwani Qatar) announced yesterday that two shipping companies, Mediterranean Shipping Company (MSC) and Yang Ming, would open the new lines from September 17, 2017.

MSC will launch a new line in Mediterranean Sea with four  ships, each with a capacity of 6,000 containers including 400 reefer containers. This new service will be weekly and run through ports of Mersin, Istanbul, Tekridag, Canakkale and Iskenderun in Turkey, Piraeus in Greece, Mundara in India, Sohar and Salalah in Oman and Hamad Port in Qatar. Mwani Qatar has also announced on its social media pages that another shipping company Yang Ming will start a weekly service with one ship of 6,000 containers including 400 reefer containers capacity.  It will connect Shanghai, Ningbo, Xiamen and Shekou in China, Kaohsiung in Taiwan, Port Klang in Malaysia and Hamad Port in Qatar.

MSC is the world’s second-largest shipping line in terms of container vessel capacity. As of the end of December 2014, MSC was operating 471 container vessels with an intake capacity of 2,435,000 twenty-foot equivalent units (TEU). The Geneva-headquartered company operates in all major ports of the world. MSC had inaugurated its maiden voyage between Hamad Port and Salalah Port in June this year and MSC KERRY was the first vessel that called the Hamad Port.



Yang Ming Marine Transport Corporation is an ocean shipping company based in Keelung, Taiwan (ROC). Yang Ming currently operates 84 container ships up to 8,250 twenty-foot equivalent units (TEU) and 17 bulk carriers.

Yang Ming’s service scope covers over 70 nations with more than 170 service points. Mwani Qatar in cooperation with its partners has launched a number of new direct shipping lines between Hamad Port and various ports of the region and beyond in the last three months. The new routes, launched after imposition of blockade by three Gulf countries, have connected Hamad Port to Sohar and Salalah ports in Oman, Shuwaikh Port in Kuwait, Karachi Port in Pakistan, Izmir Port in Turkey, Mundra and Nava Shiva Ports in India.  Within a week of three Gulf countries imposing a blockade on Qatar, Mwani Qatar launched a new direct service between Hamad Port and Sohar Port in Oman under Milaha’s DMJ service — three times a week. On June 23, another new line linking Hamad Port directly to Salalah Port was launched.

Mwani Qatar had announced launching a new maritime line between Qatar and India named “India Qatar Express Service” (IQX) on June 14. Last month, Kuwait Qatar Express Service started between Hamad Port and Shuwaikh Port in Kuwait using a 515 TEU vessel.

On August 27, Milaha announced the launch of a direct service between Pakistan and Qatar. The new service, called PQX (Pakistan Qatar Express Service), is operating weekly between the Port of Karachi, Pakistan and Hamad Port, Qatar with a competitive transit time of 4 days, making it the fastest direct connection between the two countries.

QATAR RECOVERING FROM SLUGGISH GULF SANCTIONS

Sluggish July imports in Qatar show sanctions still hurting economy

Hamad port is pictured in Doha, Qatar, June 14, 2017 (Sources: Reuters)

DUBAI (Reuters) - Qatar's imports recovered only slightly in July after plunging in June, government data released on Thursday showed, suggesting the country's economy is still suffering from sanctions imposed by other Gulf states. Saudi Arabia, the United Arab Emirates and Bahrain cut diplomatic and transport ties with Qatar on June 5, accusing Doha of supporting terrorism, which it denies.

The closure of the Saudi border with Qatar and disruption to shipping routes via the UAE slashed Qatar's imports by 37.9 percent in June compared with May, forcing Doha to scramble to arrange new shipping routes and import some goods by air. Thursday's figures showed Qatar is still far from restoring its imports to normal. Imports recovered by only 6.3 percent month-on-month to 6.24 billion riyals ($1.71 billion) in July; they were 35.0 percent below their level in July 2016.

Much of the disruption appears to be to big-ticket items. Imports of aircraft parts were down 40.5 percent from a year ago at 292 million riyals in July. The diplomatic crisis has deprived Qatar Airways of two of its biggest markets, Saudi Arabia and the UAE.

Incoming shipments of equipment and building materials for Qatar's big infrastructure projects may also have slowed in some cases. Imports of gas turbines dropped 19.8 percent from a year ago to 328 million riyals. Many dairy products and other perishable foods used to be imported across the Saudi border. Although there are no reports of food shortages in Qatar, disruption to imports appears to be pushing up food and drink prices, which rose 4.2 percent in July from June, data released last week showed.

Thursday's trade figures suggested the sanctions are not affecting Qatar's natural gas exports - July exports of petroleum gases and other gaseous hydrocarbons rose 7.8 percent from a year ago - and are no longer slowing other exports much. As a result, Qatar's trade surplus expanded 78.1 percent from a year earlier to 11.91 billion riyals in July, although it edged down 4.8 percent from the previous month.



Analysts think the sanctions damage should ease in coming months as new shipping routes develop. Qatar Navigation launched a direct Qatar-Turkey service this week after starting a container service to Kuwait last week; construction of a food processing and storage facility at Qatar's Hamad Port received $440 million of bank financing this week.

A Reuters poll of analysts published last month found them still expecting the Qatari economy to be one of the region's strongest performers in 2017 and 2018.

MOL, NYK TO JOIN NEW SHIPPING MERGER DESPITE EARLIER BLOW

TOKYO — In a fresh sign of the economic fallout from weaker global trade, Japan’s three largest shipping companies agreed on Monday to merge a major portion of their businesses, saying they needed to join forces to survive.

The president of one of the companies, Nippon Yusen Kabushiki Kaisha, said the groups faced bleak prospects on their own. The shipping industry was shaken in August by the bankruptcy of South Korea’s biggest container shipping line, Hanjin Shipping, while other shipping companies in Asia, Europe and the Middle East have sought to protect themselves through mergers and acquisitions.

“If we don’t want the number of Japanese shipping companies to be zero, we need to create one strong, splendid company,” the president of Nippon Yusen, Tadaaki Naito, said at a news conference.

By combining their container operations in a joint venture, the three companies — the others are Kawasaki Kisen Kaisha and Mitsui O.S.K. — will create a business worth about 300 billion yen, or $2.9 billion, according to a news release. It will operate 256 ships, representing about 7 percent of the global market by container volume. Kawasaki Kisen and Mitsui O.S.K. will each own 31 percent of the new company, while Nippon Yusen will own 38 percent.

They said they expected combining their fleets to save about ¥110 billion per year. The deal is expected to be complete by July 1, with operations beginning in April 2018. The companies’ bulk-shipping lines, which transport cargo like grain and iron ore, will remain independent.

Continue reading the main story
The global shipping industry has struggled with a soft global economy, which has reduced both the amount of consumer goods traded around the world and the prices that shipping companies can charge. The 2008 global financial crisis hit trade volume, and trade flows since then have been weaker than expected as Europe muddles through debt problems, the United States experiences a soft recovery and China’s heady growth rates slow.

A shipbuilding spree that took place before the crisis has exacerbated the problem. Shipping lines set plans a decade ago to buy more ships and expand at a time when trade looked strong, and today they have far more capacity than they can profitably use.

Shipping lines have explored consolidation and alliances as a result. CMA CGM of France is acquiring Neptune Orient Lines of Singapore, the German shipping line Hapag-Lloyd AG agreed this year to merge with United Arab Shipping Company, and several mergers have taken place among state-owned shipping businesses in China.

But regulators around the world have heavily scrutinized the industry and its proposed mergers, often asking whether such tie-ups will lead to higher shipping rates for customers.

Perhaps anticipating such scrutiny from Japanese regulators, Eizo Murakami, president of Kawasaki Kisen, acknowledged that the three-way tie-up would reduce competition. But he said consolidation elsewhere in the industry only made it more crucial.

“This is a big decision, since it will create what will be the only container-shipping company in Japan,” he said. “But with the European industry consolidating and the business becoming more of an oligopoly, we need the scale that being a single company would provide.”

COSCON BUYS OOCL IN NEW MERGER

https://www.bloomberg.com/news/videos/2017-07-10/costco-offers-to-buy-orient-overseas-for-6-3b-video

COSCON BUYS OOCL FOR USD 6.3 BILLION & OOCL STILL KEEPS BRAND

Chinese shipping line, unit make offer at HK$78.67 per share
Controlling shareholders Tung family have agreed to sell

Cosco Shipping Holdings plans to buy Orient Overseas Container Line (OOCL) with the help of Shanghai International Port Group (SIPG) for $6.3 billion, in a deal that would maintain the Hong Kong carrier’s brand and marks a new chapter in ongoing industry consolidation.

The deal, subject to regulatory approvals, culminates long-running speculation that Cosco would purchase OOCL, a carrier seen by some analysts as the only attractive takeover target of substantial size remaining in the market following rapid carrier consolidation over the past year and a half.

The combined Cosco Shipping, a subsidiary of Cosco Shipping Holdings, and OOIL would have a fleet of more than 400 ships and a total capacity of 2.9 million TEU including the orderbook. Together, Cosco and OOCL would operate the third-largest mega-ship fleet and be the second-largest mover of US containerized goods would be created, according to an analysis of PIERS data and the IHS Markit orderbook.

Under the deal, OOIL would keep its Hong Kong corporate headquarters and the independent share listing. It would also put off any headcount reductions at OOIL for at least 24 months, Cosco said in a statement. Cosco acknowledged the separate and distinct culture that has led OOCL to become of the industy’s best performing and highest regarded carrier in the eyes of BCOs, and clearly indicated that was an important part of the value it was acquiring.

“We respect OOIL’s management team and its expertise, not to mention its people, brand and culture,” said Wan Min, chairman of Coscol Shipping Holdings.

By leveraging the strengths of each company and achieving synergies, the businesses aim to enhance their operating efficiencies and competitive positions to achieve sustainable growth in the long term. Both companies are members of the Ocean Alliance, and will continue to work together under this framework.

“We are proud of the business we have built and the people who have been building it. This decision has been carefully considered and we believe it helps ensure the future success of OOIL. We are confident that Cosco Shipping Holdings is the right partner for us,” OOCL CEO Andy Tung said Sunday.

It came as little surprise that Cosco would maintain OOCL as a standalone brand. OOCL is known for a high quality of service relative to many of its competitors, as well as strong BCO relationships, and CMA CGM and Maersk Line have maintained the APL and Hamburg Sud brands, respectively, after their acquisitions. Given legacy cultural differences — Cosco being a Beijing state-owned enterprise and OOCL a fully commercial, standalone business — a full integration would be seen as extremely difficult. Even prior to the acquisition, Cosco and OOCL were drawing increasingly closer particularly in their participation in the Ocean Alliance.

The deal continues what has been a breakneck pace of consolidation in container shipping and raises further questions about the surviving carriers’ ability to parlay that concentration into pricing power. Rates overall have been on the upswing this year, but that can be easily attributed to capacity dislocations as the new alliances phased into service in April, as well as accelerating trade growth driven in part by Europe's economic recovery, the sustained US recovery, and economic growth in many developing markets, bolstering the slowing but largely uninterrupted growth in China.

Given carriers’ history of predatory rate wars with the ultimate — in some cases overtly stated — purpose of knocking competitors out of a market or out of business entirely, a cultural shift by carriers into an oligopoly environment will not occur overnight or easily, especially under the harsh gaze of antitrust regulators, principally in the United States and Europe.

In maritime analyst Drewry’s analysis of rates across the first half of the year, it found that its Global Freight Rate Index across a wide spectrum of trades was 36 percent higher after six months of 2017 versus the same period in 2016. However, Drewry did note that last year was exceptionally poor for carriers trying to secure compensatory rates, and when compared with the first half of 2015, spot rates for the first six months of 2017 were still 4 percent lower.

Nevertheless, rate increases on the spot market have been more muted in the eastbound trans-Pacific, where spot rates are up 33 percent from last summer, compared to the Asia-Europe trade lane, where the increase is 61 percent. Other, smaller trade lanes such as Asia to Brazil have seen huge increases in recent months.

There is little evidence thus far that industry concentration by itself is has translated into any kind of unspoken truce by carriers in pricing. But that said, carriers’ vessel ordering has slowed significantly and industry analysts are predicting that by 2019 the market could turn decisively in carriers’ favor, again not due to concentration by itself, but rather a slowdown in capacity additions combined with stronger trade growth driven by healthier economies in Europe and North America, and a steadily growing middle class in China.

Cosco, for example, earlier this month told its investors they can expect a $272 million profit for the first half, turning around a $1 billion loss recorded in the first six months of last year as the carrier benefits from rising container volume and freight rates. Cosco said its average freight rates in the container shipping business increased in the first half year over year, with cargo volume growing by 34.72 percent, driving up profitability.

OOCL reported a $273 million loss in 2016 as weak freight rates dragged down the average revenue per TEU by almost 19 percent to just $774 per container. Although it did not disclose earnings for the first quarter, Cosco on April 28 reported volume rose 7 percent year over year, while revenue increased 6.4 percent, to $1.18 billion. Overall revenue per TEU, however, slipped 0.6 percent from first-quarter 2016.

NYK LINE, MOL, K-Line MERGER TO FORM OCEAN NETWORK EXPRESS REJECTED

The South African Competition Commission has rejected the merger of the container divisions of NYK, MOL and K Line to create Ocean Network Express.

In South Africa, NYK operates its shipping business through the Mitchell Cotts Maritime agency; MOL through subsidiaries MOL South Africa and MOL ACE South Africa; and K Line though K Line Shipping South Africa.

The SA commission judged that on the evidence of past collusion between container shipping firms, the merger would have led to an increased likelihood of further anti-competitive behaviour.

“The commission has found that the structure of the container liner shipping market is conducive to coordination, based on previous collusive conduct in the container liner market in other parts of the world.

“The merger increases the likelihood of coordination as it creates further structural linkages in the container liner market,” it said.

While the creation of Ocean Network Express was solely limited to the shipping companies’ container businesses, the commission also looked at whether it would affect the car-carrying business, especially after the car-carrying divisions of all three were found to be part of price-fixing cartel,  which also included Hoegh, Walenius Wilhelmsen, EUKOR and CSAV, in the inbound US trade.

“The commission also found that the proposed transaction creates a platform for coordination in the car carrier market which has a history of collusion involving the merging parties. The parties have been prosecuted in some jurisdictions, while investigations are underway in others. It is the commission’s view that the merging parties may require a formal mechanism for the further collusive conduct in the car carriers market. The joint venture provides such a mechanism.

“The commission is of the view that the proposed transaction is likely to increase the scope for coordination in the container liner shipping market, while creating a platform for coordination in the car carrier market.

“The commission further found that there are no efficiencies that outweigh the anticompetitive effects of this transaction and that there are also no remedies sufficient to address these effects,” it said.

The proposed Ocean Network Express also continues to await a decision from the US. Last month, the Federal Maritime Commission (FMC), to which the lines had submitted their merger proposals, decided it could not rule on mergers, as they are de facto acquisitions.

FMC chairman Michael Khouri said: “The Shipping Act expressly excludes acquisition agreements from the act’s coverage. The cases that address the commission’s authority to review these types of agreements have noted that Congress gave the commission the power to review cooperative agreements that produce efficiencies, in order to prevent consolidation.

“This proposed agreement is not the type of arrangement in which the parties would surrender control over a particular matter for the duration of the agreement but maintain their separate identity and original independence in the same line of business in all other respects. Thus, the commission has determined that the creation of the joint venture, including the pre-consolidation cooperation intended to facilitate and permit its creation, falls outside the commission’s jurisdiction.”

MAERSK IN CYBER ATTACK

“We can confirm that Maersk IT systems are down across multiple sites and business units due to a cyber attack,” it said on its website. “We continue to assess the situation. The safety of our employees, our operations and customer’s business is our top priority. We will update when we have more information.”

Ukraine’s government, its National Bank and large power companies have also been affected, as has Russian oil company Rosneft, and Kiev Airport.

The airport noted: “Our IT services are working together to resolve the situation. There may be delays in flights due to the situation… The official site of the airport and the flight schedules are not working.”

According to media reports, companies are receiving a ransomware note in English, demanding $300 in Bitcoin, similar to the recent WannaCry ransom.

Maersk Line UK informed customers via Twitter in the morning that: “Unfortunately our computer systems here in the U.K. & Ireland are down. Our phone systems are live and we’re on hand to answer any Q’s.” It only admitted to a cyber attack several hours later. Subsidiary Damco’s website appeared to be working normally, however.

MV THERESA ARCTIC SALVAGE UNDERWAY IN KENYAN COAST : KILIFI

Product tanker THERESA ARCTIC ran aground on reefs in the afternoon June 20, in position 03 39S 039 53E, off Kilifi port, Kenya, north of Mombasa Port of Kenya. Vessel loaded with 27500 tons of vegetable oil was en route from Port Klang Malaysia to Mombasa, says Andrew Mwangura, Mombasa.

As of June 26, vessel was still aground, Smith Salvage and local company Alpha Logistics contracted for salvage, four tugs were already deployed, but reportedly, lightering is required. No information on hull breaches and leak, understood no leak yet. Crew remained on board.

Understood on a photo from The Star Kenya grounded THERESA ARCTIC.

Product tanker THERESA ARCTIC, IMO 8715508, dwt 84040, built 1988, flag Tuvalu, manager (according to AIS) RAFFLES SHIPMANAGEMENT SERVICES PRIVATE LTD, Singapore.

NEW SHIPPING CONCEPTS COLLIDE WITH AGING INFRASTRUCTURE

QATAR BEING SERVED BY MAERSK, MSC FEEDER FROM SALALAH (OMAN)

Hundreds of containers on their way to Qatar from Oman

A Qatari food company owner said shipments began arriving on Sunday from Oman, and that about 12 vessels were headed to Qatar from Sohar and Salalah.

"There are around 300 containers of fresh and frozen food coming. Some have arrived and the others are on their way," Ahmed al-Khalaf said.

He said containers at Jebel Ali port of the United Arab Emirates were still stuck, but that others, including from Europe, were being diverted to Oman's ports.

The world's number 1 container line, Maersk of Denmark, said on Monday it would accept new bookings for container shipments to Qatar from Oman.

Swiss-based MSC, the world's number 2 line, said it would deploy a new dedicated shipping service to Qatar from Salalah.
                                                        

Last week, Qatar Ports Management launched a new direct service linking Hamad port in the Qatari capital with Sohar Port in the Sultanate of Oman.

At a press conference held at Hamad Port, Qatar Ports Management said: "In light of the recent developments in the region, Mwani Qatar (Qatar Ports Management) and its partners have ensured the business continuity of its ports and shipping operations in and out of Qatar to mitigate the impact of any action that would affect the imports and exports to and from the country."

The service will operate three times a week and journey's will take up to one and a half days.

In an advisory released Sunday, the UAE’s transport authority suggested that the Emirates no longer bars non-Qatari vessels that are engaged in Qatari trade from entering UAE ports – an important development in the ongoing dispute, as the Emirates’ Port of Fujairah is home to the region’s main bunkering facility.

“This notice differs in substance to notices which have been issued by some of the ports within the UAE during the course of the last week,” commented law firm Ince & Co. in a client advisory. “Of particular relevance is the fact that there is no reference to vessels not being given port clearance if the last port of call or next port of call is Qatar, This could mean that vessels which have loaded in Qatar and wish to bunker in Fujairah may be able to do so.”

The announcement still forbids UAE ports from handling any cargo of Qatari origin, receiving any Qatari-owned or -flagged vessel, or loading any cargo of UAE origin bound for Qatar. The transport authority called on “those concerned to implement strictly .”

Oman emerges as a transshipment alternative

The Qatar Ports Management Company announced Sunday that it has initiated two new container services between the Omani ports of Sohar and Salalah and Hamad Port, Qatar. The UAE’s shipping ban has stranded thousands of Qatari containers in the Emirates, as most normal transshipment services to and from Hamad are routed through Jebel Ali and Khalifa Port. The new substitute feeder routes from Oman will each run three times a week. Maersk Lines, Evergreen, OOCL and COSCO had all announced service suspensions to Qatar and stopped accepting shipments bound for Hamad Port.

With transshipments routed through Oman, Maersk has since resumed all normal operations; in a statement Monday, number two carrier MSC proudly noted that it never stopped accepting consignments, unlike competitors.

The new feeder services will ease pressure on Qatar’s supplies of fresh and frozen food, which the tiny nation of three million obtains through imports. Iran and Turkey have been flying provisions into Doha as an emergency measure, but with a sea route reopened, at least 300 containers of food supplies are now on their way, trader Ahmed al-Khalaf told Reuters.

CHINA BELT AND ROAD FORUM : THE NEW CHINA SILK ROUTE COVERING MOMBASA PORT

China currently is trying to flex its might in the geopolitics arena with this initiative that will cost them 1.4 trillion dollars in 10 years. They are looking to revitalize the ancient silk road to usurp America as the top dog in the world.

We all know what the ancient silk road did for the ancient somali civilization, imagine the benefits this project could do for the country. China is investing 150 billion annually in upgrading roads/ports, building railways, and setting up pipelines.

China Silk Trade Covering Parts of Africa

However, as it stands the current map bypasses Somalia but the country is abundant with natural resources. Once Somalia takes care of its house in the next few years it could take advantage of this opportunity by asking china to help build pipelines to service our offshore black oil to the global market.

All in All, we need to find a way to eat a piece of this pie to catch up with the modern world.

MOGADISHU PORT : THE NEW FACE OF SOMALIA SHIPPING INDUSTRY

AFRICAN SHIPPING LINE -SOMALIA

africanshippingdubai@gmail.com

Aerial view of the Port of Mogadishu, Somalia. Three cargo ships, large, medium and small sized vessels are moored to the docks. A tugboat is heading out of the port.

Mogadishu’s port, having recently modernized to facilitate the shipping of containers, has made it much easier for the country to ship larger quantities of goods in and out of its port facilities. The use of containers at Mogadishu’s port, as opposed to off loading items individually, has dramatically increased the amount of goods that can be imported and exported to Somalia.

The Port of Mogadishu, also known as the Mogadishu International Port,is the official seaport of Mogadishu, the capital of Somalia. Classified as a major class port, it is the largest harbour in the country.



Since Roman centuries existed a commercial port called Sarapion in what is now modern Mogadishu. However during the Middle Ages the port of Mogasdishu was very small and only with the arrival of the Italians in 1890 were made the first improvements in order to create a modern port. Since then the port has increased in capacity until now when it is the most important port of Somalia and one of the biggest in eastern Africa.

The port of Mogadishu was created as a modern port (called in Italian Porto di Mogadiscio) with magazines and docks in the late 1920s by the Italian government of Italian Somalia.

In 1930 a protective dike with breakwaters was made in front of the enlarged port, that was connected to the Somalia interior by a railway and even by a new "imperial road" (from Mogasdishu to Addis Abeba). After incurring some damage during the civil war, the Federal Government of Somalia launched the Mogadishu Port Rehabilitation Project, an initiative to rebuild, develop and modernize the Port of Mogadishu.

A joint international delegation consisting of the Director of the Port of Djibouti and Chinese officials specializing in infrastructure reconstruction concurrently visited the facility in June 2013.

According to Mogadishu Port manager Abdullahi Ali Nur, the delegates along with local Somali officials received reports on the port’s functions as part of the rebuilding project’s planning stages. In November 2014, Minister of Transportation Said Jama Mohamed launched a new transportation reform initiative at the Port of Mogadishu.



The minister met with local transportation union officials to discuss how to optimize the new system’s implementation, ensure its transparency and accountability, and gauge their requirements and those of the owners of transported goods that they represent.

According to Mohamed, the project’s ultimate goal is to establish a fair transportation system. He also stressed that transport owners should make sure that their vehicles are in good condition and attain the standards of goods owners.

In 2013, the Port of Mogadishu’s management reportedly reached an agreement with representatives of the Dubai-based company Simatech Shipping LLC to handle vital operations at the seaport.

Under the name Mogadishu Port Container Terminal, the firm is slated to handle all of the port’s technical and operational functions. In October 2013, the federal Cabinet endorsed an agreement with the Turkish firm Al-Bayrak to manage the Port of Mogadishu for a 20-year period.

According to the Prime Minister’s Office, the deal was secured by the Ministry of Ports and Public Works, and also assigns Al-Bayrak responsibility for rebuilding and modernizing the port.

Al-Bayrak had previously overseen construction of the Istanbul Metro in Istanbul.

In April 2014, the Federal Parliament postponed finalization of the Seaport Management Deal pending the approval of a new foreign investment bill. The MPs also requested that the agreement be submitted to the legislature for deliberation and to ensure that the interests of the port’s manual labourers are taken into account.

In September 2014, the federal government officially delegated management of the Mogadishu Port to Al-Bayrak.

The Turkish company’s indicated that under the terms of the agreement, 55 per cent of revenue generated at the seaport will go to the government and the remaining 45 per cent is earmarked for the firm.

According to Minister for Transports and Seaport Yussuf Maalim Amin, the management transfer is expected to double the federal authorities’ income from the Port.

Al-Bayrak’s modernization project will cost $80 million.



According to Al-Bayrak, the majority of its revenue share will be re-invested in the seaport through additional port-based trade and new docks, construction materials and machinery.

The company also plans to install an environment wall and a closed circuit camera system in accordance with international security protocols, erect a modern port administration building, and clean the ship entrance channels via underwater surveillance.

As of September 2014, the first phase of the renovations are reportedly complete, with the second phase underway. During its first month of operation under Al-Bayrak, the port generated $2.7 million in service revenue.

Towards the Year 2014, A Dubai registered Shipping Line Company advanced its expansion to Mogadishu port and in 2015, African Shipping Line -Kenya managed to make registration and presence as Ship Liner Agents in the Port of Mogadishu.

African Shipping Line -Mogadishu being a representative of Kenya-based company African Shipping Line- Kenya to provide services related to Ship Liner Agency as well as Container Logistics Operation at the Mogadishu port, Somalia.

Africa Shipping Line Now Runs a Container Feeder Service Between Mombasa (Kenya), Mogadishu (Somalia) fortnight service. 

'OCEAN ALLIANCE' & 'THE ALLIANCE' ASIA AND EUROPEAN PORTS JITTERS

Shipping Companies have described the Asia-Europe schedules of the Ocean and THE alliances as ‘organised chaos’ this week, with thousands of containers stranded in Asia and European Ports. The Ocean Alliance brings together the recently formed China Cosco Shipping, with Evergreen Line, CMA CGM, and OOCL in a vessel sharing agreement, while THE alliance consists of NYK Line, MOL, “K” Line, Hapag-Lloyd, and Yang Ming Line.

Commentators say there is very little chance of vessels hitting itineraries before June as the two major shipping alliances transition ships and containers from previous schedules to their new alliance hubs.

The move has proven more complicated than expected, according to one shipping alliance member that spoke to The Loadstar. The shipper added that it had containers stranded at terminals between Asia, the Middle East and Europe. He admitted that phasing-in and -out had been “a disaster”, resulting in big gaps appearing in network coverage.

“We are chartering-in or using commercial feeders where we are allowed to,” he said, “but it is tough to get approval, and sometimes the containers will just have to stay on the quay until the next big ship call.”

He added that where an alliance was no longer calling at a terminal, a “best-cost option” to repatriate containers was being applied.

The greatest disruption is in Shanghai, where hundreds of containers have been stranded for as many as eight weeks, port officials say that much of the congestion is being driven by ultra-large containerships running off-schedule and ‘bunching’, clogging the port.

There have been reports of ships waiting at anchor for up to three days to get onto berths, a situation exacerbated by dense fog and congestion is now said to be spreading to other major Chinese ports, such as Ningbo and Qingdao.

Dubai’s Jebel Ali Port did not respond to a request for comment, but according to AIS data there have been no berth shortages at the port, which is going ahead with a major expansion project to increase capacity and throughput.

Source: ASC

SEYCHELLES TO IMPORT LIVESTOCK FROM KENYA

Seychelles will start importing poultry and Livestock meat products from Kenya, instead of Brazil, to help lower his citizens’ cost of living. This was said by visiting President Danny Faure to Kenya during his visit last week. The Seychelles head of state assured that enhanced business cooperation will see his country import meat products (Livestock) and increase cooperation with Kenya in terms of Maritime Security and Tourism.

Seychelles President Visiting Kenya Livestock Sector

President Danny Faure also had a visit at the Kenya Meat Commission (KMC) factory during his tour to see the company's products in Athi River, Kenya, to see the standard of Kenyan Livestock set for Export to Seychelles. 

Currently Seychelles imports most of its poultry and beef products from Brazil. According to Kenya Meat Commission’s website the factory is the biggest and most modern licensed export abattoir in East, Central, and the Horn of Africa. 

President Faure was accompanied by the Seychelles Fisheries and Agriculture Minister Michael Benstrong; Ports and Marine Minister Maurice Loustau-Lalanne, chairperson of the Seychelles Chamber of Commerce (SCCI) for a tour of the facilities and further explore the possibilities of enhancing cooperation for the trading of agricultural meat products between Seychelles and Kenya. An agreement, derived following successful bilateral talks by President Faure and President Kenyatta on Monday.

African Shipping Line does Livestock shipping from many ports in Africa Including Mombasa, Mogadishu, Berbera and Djibouti.

We can get some livestock for you from Africa especially Kenya, Somalia, Djibouti or Tanzania. Please send an email: africanshippingdubai@gmail.com or call/whatsapp +971 56 953 8569 or +254 726 722 226

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CONTAINER SHIPPING SET TO GROW IN 2017 : MAERSK GROUP

Container shipping may grow 2%-4% in 2017 as economy revives: Maersk
Singapore (Platts)--30 Mar 2017 456 am EDT/856 GMT

Cargo volumes moved in container ships are expected to grow 2%-4% this year, up from around 1.5%-2% in 2016 as the industry capitalizes on a revival in demand in the US, Europe, China and major oil exporting countries, a senior Maersk executive said Thursday.

"The economy in both Europe and US is picking up though it is not back to the heyday, there is a lot of talk of Chinese economy growing. The oil export-dependent economies in West Africa and South America will benefit for the increase in crude prices," Group Representative Asia Pacific, Maersk Group, Rene Piil Pedersen, said at the Seatrade roundtable discussion in Singapore.



He said oil prices were a double-edged sword as they increased shipping lines' costs but expressed optimism they could be reflected in freight rates.

"It is only when oil prices rise and fall very fast that they are difficult to pass on to the customers," Pedersen said. Maersk's fleet of container ships is less than eight years old compared with the global average of 12, he said. "For an energy efficient fleet, higher fuel prices are less of a problem."

While the demand for container ships is rising, there is a large overall global program of new builds and "there is a big question of how that capacity will be managed," he said.

Last year, there was a significant amount of recycling and scrapping of older ships, that kept the supply in check, he added.

The World Container Index assessed by Drewry Maritime Research, a composite of container freight rates on eight major routes to or from the US, Europe and Asia, fell almost 3% week on week to $1,350.61/40 feet container as of March 23. Nevertheless, the index is more than double what it was a year earlier.

"The increase compared with the previous year is from a very low base and we are not out of the woods yet," Pedersen said.

CONSOLIDATION

The supply and demand for container ships is now more balanced but better capacity management will be required, Pedersen said. "Some consolidation in the container shipping sector has been announced but these are early days and it is yet to take effect," he said.



He was referring to New Ocean Alliance that is expected to begin operations from Saturday and includes the Evergreen Line, CMA CGM, Cosco China Shipping and Orient Overseas Container Line.

Another grouping, called The Alliance has brought together members including Hapag-Lloyd, Yang Ming, MOL, NYK Line, and 'K' Line.

Maersk and Mediterranean Shipping Co. or MSC, the two market leaders by deployed capacity, already have a 2M Alliance in place. The two companies also have a strategic cooperation agreement with Hyundai Merchant Marine or HMM.

One ramification of the bankruptcy of Hanjin Shipping last year is the wave of consolidation that followed in the container shipping industry. He said at one point of time around $14 billion worth of cargo was stranded at sea or ports due to the bankruptcy.

"If one has to survive, it has offer a global product. You can't be a small fish in a big lake," Pedersen said. "The consolidation is not huge, the top 20 container shipping companies have now become the top 12. There are still a lot of small players," he said.

The next two years would be tricky because demand would increase but a lot of ships will hit the water, he warned.

Maersk alone will take delivery of nine 14,000 TEU and 11, 19,000 TEU new container ships this year, Pedersen said. The company has not placed any new orders so far this year.

REDUCING COSTS

Pedersen stressed that there was an increasing need to transform the containers business through digitalization.

"This is a huge opportunity for Maersk. Until around three years ago making a booking with us required a couple of hours, now it is in minutes and by next year we want to reduce it as low as five seconds," he said.

A better cost structure around the containers, container ships, terminals and cranes could reduce the overall costs of handling cargoes, he added.

Pedersen cited the example of a case study Maersk did sometime ago, when tracking a cargo of flowers and avocados from East Africa to to Northern Europe revealed involvement of close to 200 sets of documentation or paperwork and engagement with 30 different entities.

"The future lies in using a much more transparent and efficient process to dealing with these entities called the block chain technology which will be seamless and save time and costs," he said.

On the new global norms for sulfur emissions that will be implemented less than three years from now in 2020, Pedersen said the Maersk Group would be ready but was concerned over enforcement.

"The rules are clear, what is not clear is how different [geographical] jurisdictions will police it and may disrupt the level playing field," he said, adding that if were to happen, those like Maersk who followed the rules might be at a disadvantage to others who did not.

ILLEGAL FISHING IN SOMALIA COAST : BIG CAUSE OF PIRACY

Somali pirates who seized a Comoros-flagged oil tanker earlier this week after five years without a major Sea Piracy off the Indian Ocean have released the ship and its crew without conditions, officials said late Thursday.

Security official Ahmed Mohamed told The Associated Press the pirates disembarked the ship, which was heading to Bossaso port, the region's commercial hub, with its eight Sri Lankan crew members aboard. Monday's hijacking of an oil tanker off Somalia's northern coast surprised the international shipping community after several years without a pirate attack on a large commercial vessel there. Naval patrols by NATO members and other countries like China had calmed the crucial global trade route that once saw hundreds of attacks.

But people in this sleepy village saw something like this coming. Some are former pirates themselves who quit in recent years as the international pressure grew and armed guards appeared on cargo ships. They turned to fishing but now say they're the ones being targeted at sea.

In recent years, local officials have warned that rampant over fishing by foreign trawlers was destroying the livelihoods of Somali coastal communities, stoking fears of a return of piracy as a way to make money to secure their way of life. They have blamed Yemeni, Chinese, Indian, Iranian and Djibouti-flagged fishing boats and trawlers.

“The illegal fishing is a very serious problem. Fishing has declined, equipment was confiscated and they destroyed our livelihoods and properties,” said Aisha Ahmed, a fish dealer. The chairman of the fishermen's association, Mohamed Saeed, said frustrations are growing. “They have no choice now but to fight,” he said.

Somalis say illegal, unlicensed, and unregulated fishing forced them to turn to piracy 10 years ago in order to recoup their losses. "We got fed up and took guns to the sea," said one Bosaso fisherman, Mohamed Adan Ahmed.

The hijacked oil tanker was anchored Tuesday off the town of Alula, local elder Salad Nur told The Associated Press. He said young fishermen, including former pirates, had gone searching for a foreign ship to seize out of frustration.

“Foreign fishermen destroyed their livelihoods and deprived them of proper fishing,” he said.

The armed men were demanding a ransom for the ship's release and were holding the crew captive, the European Union anti-piracy operation off Somalia said late Tuesday after making contact with the ship's master. Illegal fishing needs addressing, said John Steed, the director of Oceans Beyond Piracy. “It's an aggressive business and in some cases international fleets pressure, even attack, local fisherman, which breeds resentment,” he wrote in an email.

“We have a famine and food is short. Fish is one answer,” he said, referring to the drought that Somalia recently declared a national disaster. “Fishing communities are angry and out-of-work fishermen have become - and are - pirates.”

In December, NATO ended its anti-piracy mission off Somalia's waters because there was no piracy for the past 4 years. Abdirizak Mohamed Ahmed, the director of the Anti-Piracy Agency in northern Somalia's semi autonomous state of Puntland, said he wasn't surprised by Monday's hijacking. The Incident happened in the Northern Puntland state.

Ahmed said fake fishing licenses issued to foreign fishermen and lenient enforcement of regulations by local authorities are major factors in the increase of illegal fishing. Fishermen have reported several cases of attacks by illegal fishermen, including close-ramming of their boats by trawlers. One fisherman died and another was seriously injured after a trawler ran over a small skiff off the coast early this month, Ahmed said.

Local fishermen also have reported incidents of foreign fishermen opening fire at them or robbing them of their catches before being chased away.

“It's matter of life and death. Now we have to fight at any cost,” Bile Hussein, a Somali pirate commander, said Tuesday, after the new hijacking was reported. He said he was in contact with the armed men on the seized oil tanker and that they had not yet decided on how much ransom to demand.

The ship in the Monday’s incident was owned by Flair Shipping Trading FZE in the United Arab Emirates and linked to UAE-based ship management firm Aurora Ship Management FZE. It was flying under the flag of Liberia at the time. It was not immediately clear if the companies were still linked to the ship.

Argyrios Karagiannis, the managing director of Flair Shipping, declined to comment. Calls and emails to Aurora went unanswered.

Concerns about piracy off Africa’s coast have largely shifted to the Gulf of Guinea.

THE FUTURE OF KENYA NATIONAL SHIPPING LINE

The Government of Kenya Ministry of Transport is seeking to to revive The Kenya National Shipping Line which has been dormant for many years.

It says, it has plans to revive the Kenya National Shipping Line (KNSL) that has the potential to contribute over 3 billion U.S. dollars into the country’s economy annually, a government official said on Sunday.

Kenya's State House Spokesperson Manoah Esipisu said the shipping line is expected to create an average of 3,000 job opportunities for youth in the first year, and thereafter progressively increase to 6,000 in five years.

"This administration has invested billions of shillings in this region to build or improve security, infrastructure and general service delivery, with the simple goal of uplifting the lives of residents in an inclusive way," he told journalists in Mombasa.

Esipisu said negotiations are at an advanced stage for the exit of foreign shareholders who have expressed desire to cease working with KNSL, due to KNSL having become a parastatal.

The revival of the shipping line is expected to return Kenya to its historical place as a rich seafaring nation with highly respected seafarers. The shipping line has been dormant for decades.

Esipisu said the plan which is being rolled out by the State Department of Maritime and Shipping Affairs, is part of the government’s wider plan to boost the economy of the coast region as well as that of the whole country.

SOMALIA SMALLER PORTS

AFRICAN SHIPPING LINE will be supporting the Current Humanitarian Crisis in the Horn of Africa by providing Door - Door Services of Containerized Cargo as well as Barge Services from Mombasa to Somalia and Djibouti through the Following Smaller Ports:

Kismayo Port
Bosaso Port 
Berbera Port
Hobyo Port


Please feel free to inquire about Shipping Services to Kismayo Port, Bosaso Port, Berbera Port and Hobyo Port In Somalia from Mombasa Port, Dubai Jebel Ali, Sharjah Ports, Ajman Port or Salalah (Oman) Port.

Send an Email: africanshippingdubai@gmail.com