Meet MOL Triumph : World's Largest Containership @ 20,170 TEU

Meet MOL Triumph : World's Largest Containership @ 20,170 TEU

Mitsui O.S.K. Lines, Ltd. announced in this week that the world's largest containership, MOL Triumph was delivered from Samsung Heavy Industries Co., Ltd. (SHI) on March 27, 2017.

MOL Triumph’s deployment on Asia – Europe tradelane

MOL's newest vessel, the first of a fleet of six 20,000 TEU-class containerships was named MOL Triumph in a ceremony at SHI in South Korea on March 15, 2017. At 400 meters in length and 58.8 meters in width, MOL Triumph is currently the world's largest containership. With a capacity of 20,170 TEU, the vessel is the first 20,000 TEU-class containership deployed in THE Alliance's Asia to Europe trade via the FE2 service.

MOL Triumph will set off on her maiden voyage from Xingang in April 2017 and will sail to Dalian, Qingdao, Shanghai, Ningbo, Hong Kong, Yantian and Singapore. She will then transit through the Suez Canal and continue on to Tangier, Southampton, Hamburg, Rotterdam and Le Havre. She will then call at Tangier and Jebel Ali on the way back to Asia.

MOL Triumph loaded with new sustainable technologies

In line with the eco-sailing initiative of MOL, the new 20,000 TEU-class containerships are equipped with various highly advanced energy-saving technologies including low friction underwater paint, high efficiency propeller and rudder, Savor Stator as a stream fin on the hull body, and an optimized fine hull form which together can further reduce fuel consumption and CO2 emissions per container moved by about 25-30% when compared to 14,000 TEU-class containerships. Additionally, the vessel has also been designed with the retrofit option to convert to LNG fueled ship in view of the implementation of the International Maritime Organization's new regulation to limit SOx emission in marine fuels which will come into effect in 2020.

MOL will take the delivery of the second 20,000 TEU-class vessel in May 2017. Eventually there will be six of the 20,000 TEU-class containerships unveiled and they will be phased in gradually on the existing trade routes of MOL.

Vessel Particulars of MOL Triumph

Length  : 400m

Breadth                : 58.8m

Depth   : 32.8m

Deadweight Tonnage     : 192,672MT

India to start intercontinental container train on Iron Silk Route

India to start intercontinental container train

In January this year, China sent a container train from East China’s Yiwu all the way to London via Germany, covering a distance of 12,000 km and demonstrating that it can be cheaper, even faster mode of freight movement between the Asian giant and countries in Western Europe and all in between. In the recent past, countries across the world have realised the potential of carrying out trade through land routes which existed in ancient eras and much is being done to revive the same!

Taking a leaf from China’s run to Europe, India is going to start an inter-continental train. India will showcase its might in freight movement by running a trans-continental container train full of goods from Dhaka to Istanbul, covering a 6,000-km journey across five countries — Bangladesh, India, Pakistan, Iran and Turkey.

New lifeline in South Asian regional (rail) connectivity
Codenamed the ITI-DKD-Y corridor, the container train’s route is scheduled as Dhaka-Kolkata-Delhi-Islamabad-Tehran-Istanbul.

Yangon will also be connected to Dhaka. The missing Tamu-Kalay link in Myanmar is still to be built.

This project will open up a new chapter in South Asian regional connectivity project. It can provide a new lifeline and much needed impetus for trade in South and South West Asia.

What has changed?

What has changed and also energized the project is that a long missing link of 150 km in Zahedan, in the Baluchestan province of Iran, has now been established, connecting the country to the Pakistan Railway network on the border. So the Trans-Asian Railway Southern Corridor, as it is formally named, under the aegis of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), is good to go all the way to Turkey after certain operational exchange of notes and coordination between the nations concerned, which India is anchoring this month.

“The demonstration run will happen very soon in 2017 and we will sort out all the issues with the countries concerned. It’s a great leap for South Asian regional connectivity in the rail sector. This will also demonstrate to the world that there can be a real, commercial trans-Asian container corridor of this magnitude in the rail sector,” informs Mohammad Jamshed, Railway Board Member (Traffic)

The long route will be cut short: Challenges addressed?

Currently, goods take a long, roundabout route from Ludhiana to Lahore which otherwise are just a few hours apart by rail. The March 15-16 meeting is aimed at discussing some common technical and operational parameters between the railway systems of the countries involved. So far, in communications between the railway systems, all countries have on paper endorsed the project and have said that the demonstration is technically feasible.

There are Political and logistical roadblocks, however. Pakistan, for instance, isn’t keen on containers from India crossing over into its railway network.

The railway networks of India and Bangladesh are connected by one weak bridge over the Padma river, according to the Indian Express, which means only lightweight cargo can be transported. So, in all likelihood, the first bit of cargo on this stretch of the Iron Silk Route will comprise cotton garments.

Past the Dhaka border, there is the inland container depot in India which will service the rail cargo train on its way to Kolkata. From Kolkata to Delhi and then to Attari and Lahore will be smooth sail, as per railway officials.

Free Trade Zone Locations of Today’s Global Supply Chains

Free Trade Zone Locations of Today’s Global Supply Chains

A free trade zone (FTZ) is defined as a “specific class of special economic zone. It is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured, and re-exported under specific customs regulation and generally not subject to customs duty”. Designed to stimulate economic growth, FTZs are often found throughout the world and around major seaports, international airports, and other locations with strong transportation ties.

Shifts in trade are placing an emphasis on such geographies as India, Singapore, UAE and Africa. Indian government plans to open a special economic zone at its largest port, JNPT. Despite the bright outlook for Africa, risks remain and the need for infrastructure investment is great.

While most of the focus has been on Europe and the US, drivers of global economic trade since World War II, a shift in trade is occurring as domestic spending power expands in such emerging markets as Africa, Dubai, India and Singapore.

India

India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

India has had its ups and downs with using these zones to stimulate economic growth due to government bureaucracy, poor infrastructure and the lack of foreign investment. However, through the years, the government has worked to improve these zones by cutting government red tape as well as investing in infrastructure.

In late 2015, the government announced development plans for a special economic zone at Jawaharlal Nehru Port Trust (JNPT), the country’s largest container handler. JNPT accounts for 60% of the total container cargo moving via India’s twelve major public ports and about 40% of the nation’s overall containerized ocean trade.

Singapore

Often viewed as a gateway into Asia as well as its financial center, Singapore continues to serve in not only these roles but also as a gateway for the AESAN Economic Community. The Community which is a collection of Southeast Asian countries including Malaysia, Indonesia, Thailand and Vietnam, is investing heavily in infrastructure projects to link each country in a seamless manner as well as to meet growing domestic needs of its rising middle classes.

Singapore is generally a free port and an open economy. More than 99% of all imports into Singapore enter the country duty-free. Singapore has three Free Trade Zone (FTZ) authorities, PSA Corporation Ltd, Jurong Port Pte Ltd and the Changi Airport Group (Singapore) Pte Ltd. and nine free trade zones.

UAE

Located along the Persian Gulf within the Middle East, the UAE has benefited from global trade as a transshipment location between Asia and Europe. In addition, as the region lessens its dependence on oil exports, it is encouraging diversification into other industries such as pharmaceuticals and telecommunications.

Among the free trade zones available in the UAE is Jebel Ali, one of the largest such entities in the world. Established in 1985, Jebel Ali is home to about 7000 companies from 150 countries around the world. The port is situated between Jebel Ali Port, Dubai, a global top 10 container port and Al Maktoum International Airport, described as “the world’s largest cargo airport”.

Africa

The “Sleeping Giant” is awakening and as such many infrastructure projects are underway. Despite the many risks – political, economic and natural – the interest in this continent is real as foreign investors such as General Motors, Procter & Gamble and Roche Holding expand operations to the continent. Indeed, Africa is seen not only as an outsourcing location but also one with great promise for its rising middle class. According to the African Development Bank, Africa now has the fastest-growing middle class in the world. Some 313 million people, 34% of Africa’s population, spend USD 2.20 a day, a 100% rise in less than 20 years (Note: The bank’s definition of middle class in Africa is people who spend the equivalent of USD 2 to USD 20 a day).

As interest in Africa grows, so too does the need for free trade zones as a means to attract investors. With financial assistance from China, Djibouti has begun construction of what has been described as Africa’s largest free trade zone. The agreement was signed in early 2016 as an initiative to stretch its “One Belt, One Road” strategy into Africa. The free trade zone will be 48 square kilometers and according to the agreement, the zone is expected to handle $7 billion in trade within two years. In addition, Djibouti will create a unified customs system with China, establish a transit trade center and set up a currency clearing system.

What’s Next?

As the focal point of global trade shifts away from Europe and US in favor of Southeast Asia, India, Middle East and Africa, the need for free trade zones will only grow further to support the growth. In addition, the need for logistics and transportation providers will also grow and with this growth, the need for technology and automation will be great to maintain efficient operations.

Technology Trends Changing Supply Chain in 2017

Technology Trends Changing Supply Chain in 2017

2016 sparked a long-term shift in the way we transport goods. Tech giants have penetrated the commercial freight market. Big-time shippers overhauled distribution networks to capture a share of the growing e-commerce pie and cater to lofty consumer expectations. Technology advancements drove unprecedented innovation by logistics providers and shippers alike.

It’s been a dizzying year for supply chain and logistics managers, and that’s likely to remain the case in 2017. While we may not be ready for autonomous trucks to take over the roads, we are also not as far off as some might think. We know one thing for sure: Technology will continue to innovate the industry worldwide, and all players will be forced to adapt or be left behind.

Here are a few trends every stakeholder in the supply chain should watch closely in 2017:

1. Growth of the Tech-Enabled Logistics Provider

Technology permeates every area of the supply chain. Tracking solutions, sensors and other devices embedded in cargo and vehicles provide a real-time picture of assets (of all types, not simply trucks) in the field. On the backend, transportation management systems (TMSs) are becoming increasingly sophisticated, providing comprehensive transportation management from end to end.

Shippers and carriers will continue to lean on providers in 2017 as the tech leaders. Both parties, along with receivers, will look to smart logistics providers to tie seamless TMSs together with onboard tracking platforms and inventory management. The goal is optimized supply chains connecting in transit based on a real-time inventory snapshot.

2. Constricting Freight Market?

For much of the past year or so, shippers enjoyed favorable rates thanks to relatively highly available capacity. As a result, those who honed in on spot rates may have seen short-term cost savings, while those who focused on strategic carrier relationships traded potentially higher rates for long-term mutual benefits.

Recent reports indicate the pendulum may swing back in favor of the strategic approach, as capacity tightened modestly over the past few months. Several factors will influence whether this is a long-term or seasonal shift. Shippers and their logistics providers should keep a close eye on potential spikes in fuel cost, and pending hours of service and driver wage regulation, which will impact capacity in the coming years. In the case of market constriction, those with locked-in, long-term carrier relationships will reap the benefits—greater access to consistent and reliable capacity, more stable rates, and the ease and efficiency which come with familiarity.

3. Mastering E-Commerce Logistics

Online purchases continue to account for an increasingly large portion of overall retail sales. In fact, the U.S. recently experienced the highest e-commerce penetration in history, according to the U.S. Department of Commerce. This completely reset consumer expectations and, in turn, retailers’ delivery policies. Next-day and even same-day delivery are fast becoming the norm and retailers now have more stringent delivery deadlines (not to mention fees for late deliveries).

The e-commerce pie only continues to grow and retailers will continue to grapple for their share. We’ll likely see retailers establish a continuously broad network of distribution and fulfillment facilities near dense population centers. Enhanced business intelligence and in-vehicle technology will also be key, as retailers and their logistics providers seek ways to trim the e-commerce-related factors that historically drive costs higher, like high fuel consumption and inefficient routing.

Many retailers already established e-commerce delivery networks. Conquering the art of cost containment will be the next step.

4. Digital Freight Matching versus Driverless Trucks

Uber’s acquisition of self-driving trucking platform Otto sent a message to supply chain stakeholders: Silicon Valley has commercial transportation and logistics in the crosshairs. Reaction varied, and many set their sights on the potential for driverless or co-piloted trucks. But it’s another aspect of the deal—Uber’s long-term goal to establish a national digital freight matching (DFM) network—that may be more intriguing in the short term for logistics providers.

The two don’t necessarily fall hand in hand. Though driverless trucks may have more curb appeal, DFM apps could change the way shippers connect with carriers (and how logistics providers do business). In their current form, DFM apps could work for smaller-scale shippers, but not those with a large, regional and national footprint. More importantly, DFM apps will drive the industry at large (including third-party logistics or 3PLs) to innovate and develop more advanced TMSs, as well as challenge providers to diversify services.

5. Advent of Omnipresent Web Services leading to Better information sharing in freight.

The supply chain industry is dangerously reliant on antiquated platforms to transmit data. Compared to other industries, the freight industry truly is stuck in the stone ages when it comes to sharing information between technology platforms. This isn’t necessarily a hit on supply chain technology in general, a lot of companies are building brilliant capabilities to analyze data, optimize transportation decisions and do things of the like, but when it comes to sharing that information from one system to another we are woefully dependent on technologies like EDI, email, phones and fax.

This will literally change our capabilities overnight. There’s such a tremendous amount of waste in the supply chain industry because of unreliable or slow-moving data transmission that we just don’t need to deal with anymore. This is going to change the way that companies charge for their services, how they perform advanced demand analysis, reduce the number of electronic “touches” on each shipment and so much more.

We will finally catch up to where so many other industries are today and reduce millions of dollars of waste in the process.

6. Globally Connected Supply Chains will create a Flat World

The proliferation of technology will continue to disrupt the global supply chain in 2017. It will change the way that importers/exporters are able to manage their connections with transportation vendors of all different shapes and sizes to be able to service customers anywhere in the globe. It will reduce our dependency on having innumerable intermediaries throughout the world to handle our shipping and – as a result – decrease the cost of logistics that companies have to spend to get their products in front of new markets.

The challenges in the global supply chain market are many, but the rise of these types of technology platforms will allow us to overcome them and build better and stronger supply chains.

It changes everything. This technology and its impacts will create the ‘Flat World’ and foster a global marketplace unlike anything we have ever seen.

Technology advances will continue to drive seismic shifts in the logistics industry in 2017 and we’ve only scratched the surface for what that could look like. Each stakeholder within the supply chain will address these areas in different ways, but ultimately, with the same goals: To provide higher quality customer service and more efficient, secure transportation.