IBM, Maersk launch blockchain-based shipping platform TRADELENS

After launching a proof of concept earlier this year, IBM and Maersk have unveiled TradeLens, the production version of an electronic ledger for tracking global shipments; the companies say they have 94 participants piloting the system, including more than 20 port and terminal operators.

The jointly developed electronic shipping ledger records details of cargo shipments as they leave their origin, arrive in ports, are shipped overseas and eventually received.

During the transportation process, all of the involved parties in the supply chain can view tracking information such as shipment arrival times and documents such as customs releases, commercial invoices and bills of lading in near real time via the permissioned blockchain ledger.

More than 160 million such shipping events have been captured on the platform, according to IBM and Maersk. "This data is growing at a rate of close to one million events per day," the companies said.

Traditionally, the international shipping industry's information systems have used paper legal documents, and electronic data was transmitted via electronic data interchange (EDI) - a 60-year-old technology that doesn't represent real-time data information.

Shipping participants have also shared documents via email, fax and courier.

When information is entered or scanned in manually, TradeLens can track critical data about every shipment in a supply chain, and it offers an immutable record among all parties involved, the companies said.

Some shipping manifests can also be moved via an API to the TradeLens platform, so that manufacturers and others in the supply chain have more timely information and improved visibility to the process.

Along with freight forwarders, transportation companies and logistics firms, more than 20 port and terminal operators are using or have agreed to pilot TradeLens, including PSA Singapore, International Container Terminal Services Inc., Patrick Terminals and Modern Terminals Ltd. in Hong Kong. Customs authorities in the Netherlands, Saudi Arabia, Singapore, Australia and Peru are also participating.

"This accounts for approximately 234 marine gateways worldwide that have or will be actively participating on TradeLens," IBM said.

Hong Kong-based Modern Terminals became a beta partner of the TradeLens blockchain earlier this year.

"Digitized documentation that can at the same time be authenticated will drive down costs and increase supply chain security," Modern Terminals CEO Peter Levesque said via email.

As a port operator, Modern Terminals doesn't have a need to track shipments outside of its operating environment, but it keeps the status of containers coming in and out of its terminals via a Terminal Operating System (TOS), many of which utilize EDI and wireless LANs and Radio-frequency identification (RFID) to monitor cargo movements. The company handles about 5.5 million shipping containers per year at its Hong Kong business unit.

The documentation that accompanies a container of cargo from the factory floor to store shelf is cumbersome and open, Levesque said. A blockchain-based electronic ledger will provide a platform where all the documentation along the way can be viewed and updated in near real time and in a secure environment by authorized supply chain participants.

It will also give customs, commerce, and border patrol agents around the world "a higher degree of certainty about what's in the box, and who loaded it," Levesque added.

"Modern Terminals plans to be a regular user of the solution once full development and testing are complete," Levesque said. "We've only begun to scratch the surface on what we can use blockchain technology for in the transportation and logistics industry. Tackling the opportunity for improving the transmission of documents around the world is a great beginning. The next decade of development will be exciting to watch."

The Forces shaping Shipping

Retailers in America & Western Europe held their breath in September 2016 when container ships bringing goods from Asia due to fill their shelves at the peak Christmas shopping season were suddenly left stuck in ports halfway. Some ships were even stranded at sea

.

Image for representation purpose only  : Hanjin, the South Korean shipping line, had filed for bankruptcy

Hanjin, the South Korean shipping line, had filed for bankruptcy, weighed down by a global economic downturn that had led to overcapacity, lower freight rates and rising debt levels in the shipping industry. The company was eventually wound up and its assets liquidated in the shipping industry's costliest and most notorious collapse.

To avoid this fate, shipping companies have for many years increasingly merged or bought each other in a classic process of consolidation that is having profound effects on the efforts of developing countries to better engage with global trade.

On the one hand, global trade benefits from low freight costs and improved shipping connectivity that result from economies of scale and technological advances, yet on the other hand the mergers among shipping lines and their investments in ever larger ships also pose serious challenges to smaller trading nations and their seaports.

The challenge for policymakers - the focus of a session at the Intergovernmental Group of Experts on Competition Law and Policy convened by UNCTAD on 13 July - is to ensure that the benefits of lower costs and improved connectivity will be passed on to the smaller shippers and ports, while also responding to concentrated markets so that players are discouraged from abusing dominant positions.

The massive challenge for competition authorities

Competition authorities must analyse alliances, mergers and acquisitions in shipping and consider not only horizontal competition between carriers but also vertical integration between carriers and terminals.

For example, when shipping giant Maersk acquired competitor Hamburg Süd, the latter's services may switch from their previous terminal in Buenos Aires to the one operated by APM Terminals - which belongs to the same group as Maersk.

But there are several other phenomena shaping shipping in the 21st century that the national watchdogs must also monitor to ensure that trade continues to boost economic progress in developing countries.

Need for Bigger & bigger seaports

Ports are under pressure to dredge, expand yards and invest in ever larger ship-to-shore container cranes, often without any additional cargo throughput. Trucking, train and barge operators will incur additional expenses as vessel sizes and thus peak demand go up.

Port authorities and local governments need to carefully consider if the additional dredging and investment in berth, yard and hinterland transport capacity that shipping lines demand is worthwhile.

Domestic shipping markets

Many countries impose restrictions on international operators transporting goods domestically. In container shipping, this leads to situations in which a ship may call at two ports within the same country but is not allowed to transport cargo between these two ports.

Countries find themselves in the scenario where ports in neighbouring countries become the hub ports for their own cabotage or feedering services.

Montevideo, Uruguay, for example, acts as a relay port for services that connect two ports in Argentina. Sri Lanka benefits from cabotage restrictions in India as ships call at the port of Colombo, and from there international feedering services connect to seaports in India.

In response, policymakers should analyse the potential of opening up selected shipping services to international service providers to ensure competitive markets.

Hinterland connections

Closer distances usually involve lower transport costs and thus fewer negative externalities. However, in view of the need to fill ever larger ships, and the desire to keep alternative options open for shippers, policymakers may also want to expand each port's hinterland.

The resulting competitive pressures will encourage port operators to maximize their efficiency and pass on those efficiency gains to their clients, shippers and shipping lines.

Inter-port competition should not be limited to domestic seaports, but to neighbouring countries' ports as well, while effective instruments for enhancing inter-port competition are efficient trucking markets, rail and road infrastructure, and transit regimes.

Trade and transit

Under the World Trade Organization's Agreement on Trade Facilitation, in force since 2017, as well as the International Maritime Organization's Convention on Facilitation of International Maritime Traffic, members should establish committees in which stakeholders coordinate and cooperate in the implementation of trade and transport facilitation reforms.

Ideally, such collaborative platforms should go beyond compliance issues, aiming instead at all necessary reforms to facilitate international trade and its transport. Transit should be facilitated in line with international standards and recommendations, including those of the United Nations, the World Customs Organization and the World Trade Organization.

Monitoring and strengthening

Container shipping is a cornerstone of globalization. Thanks to the container shipping network, maritime transport connectivity has improved, and real freight costs have gone down. The operational efficiency gains achieved thanks to alliances have helped increase load factors and added further downward pressures on freight rates.

However, we have reached a situation where the reduced number of companies on some trade routes can result in oligopolistic market structures. This poses challenges to importers and exporters, who have less choice with whom to transport their goods. Larger ships and the combined bargaining power of lines in alliances also pose challenges to seaports which will have to invest ever more heavily in port infra- and superstructure.

National competition watchdogs will need to carefully monitor market developments and strengthen competition law enforcement against possible anti-competitive practices to ensure that limited competition does not lead to detrimental effects on costs, connectivity and economic growth in developing countries.

Logistics Technologies that are going to change the Industry

Globalization has revolutionized trading in so many ways, from bigger and faster vessels to robot-operated ports and vast computer databases tracking cargos, global trading has come a long way. But it all still relies on millions and millions of paper documents.

With the ongoing digital revolution, the freight Industry will surely look very different in the upcoming years.

Unlike the previous revolutions, such as “The Containerization” that took place in the 1960s, where it was all about big vessels and equipment worth millions of dollars with the big players having an unfair financial advantage, this time around there are no such unfair advantages, it’s a technical revolution, it’s about the ability to catch up with the rapidly evolving technology.

Here are Logistics Technologies that are going to change the Industry:

BLOCKCHAIN

With hundreds of pages that need to be physically delivered to dozens of different agencies, banks, customs bureaus and other entities for a single shipment, the whole trading process becomes very tedious and expensive. According to a recent survey, the processing and administration costs go up to 20-25% of the overall transportation cost.

These major inefficiencies that have plagued the world of logistics for decades, and Blockchain, the electronic ledger system, has emerged as a solution. With the help of Blockchain, the involvement of physical paperwork can be minimized if not completely abolished. Moreover, Blockchain can also help in reducing processing times for goods at customs checkpoints, thus making custom clearance quicker.

INTERNET OF THINGS (IoT)

As there are numerous parties involved in any transportation, the major issues faced by organizations are the lack of transparency and connectivity between all parties involved. With the Internet of Things (IoT), a centralized cloud-based network can be set up, allowing all the devices to capture and share critical data, thus increasing real-time visibility, connectivity it enables the organization to effectively track their shipments, and the conditions of these shipments, thus making the process faster and efficient.

ARTIFICIAL INTELLIGENCE

It has been of great interest for many organizations in the past, but the high costs of integrating high-end industrial robots for complex logistics operations acted a barrier for many years. Now, with technology getting cheaper, more accessible and easier to integrate, many manufacturers are looking forward to capitalizing on it.

In recent years, it has proved to be very effective in crucial port-operations, such as Fleet management – Warehouse management, Self-driven vehicles and more.

Many big players have successfully adopted Artificial Intelligence to mitigate costly repairs and downtime, thus decreasing maintenance and insurance charges making the productivity levels reach previously unimaginable levels of optimization.

PREDICTIVE ANALYSIS

Predictive analysis, the new buzzword, is a practice that is being used by many companies, which allows them to anticipate the status of the market, by identifying emerging patterns in the marketplace and give a strong piece of information, enabling them to create customer specific strategies to act upon. 

By continuously monitoring and analyzing the shipping data, the performance of the carriers and liner rates, one can build strategies to optimize the supply chain.

ROBOTICS

Robotics has been a part of logistics, for a very long time. In Freight Industry, where it is mandatory to be very consistent and precise in the day to day tasks that are repetitive in nature, the adoption of robotics and automation is not very surprising.

DHL's new robot picker

With the incorporation of the Internet of Things, Artificial Intelligence and Robotics, many shipping companies have successfully cut down labor and maintenance cost and also have increased quality and performance of the process.

Shipping feels the heat of geopolitical crises

The international shipping sector has been under intense pressure over the past few years, impacted by concerns about overcapacity, volatile fuel prices, the enforcement of new environmental regulations and the challenges of digitalisation. Now, an array of geopolitical crises are looming over the industry, threatening to impact trade flows and leaving shippers uncertain of their next move.

A much-welcomed industry redress was observed in the second half of last year, after the Baltic Dry Index rose by 50% over the six-month period, and overall industry confidence hit a three-year, as analysts from the Moore Stephens shipping industry group observed.

But both old unresolved international disputes and new conflicts are contributing to an uncertain geopolitical climate, and much like a stormy sea, such forces can quickly destabilise shipping and alter trade flows.

As the London School of Economics notes, entrepreneurs, market participants and central bank officials view geopolitical risks as a key determinant of investment decisions. In 2016, 74% of CEOs of the world’s largest companies polled by PwC cited ‘geopolitical uncertainty’ as their second most important concern.

The US-China tariff stand-off

The ongoing tariff dispute between the US and China is threatening to approach a full-on trade war, with both sides imposing higher levies on billions of dollars’ worth of imports, while experts fear that the crumbling political relationship between the two superpowers might have a detrimental effect on container shipping lines.

According to geopolitical intelligence platform Stratfor, the $50bn in tariffs officially announced by the US, as well as China’s retaliation, would have put nearly 7% of the US-China container trade at risk.

However, while such tariffs would not influence the actual volume of goods being transported – as market demand isn’t necessarily affected by spur-of-the-moment political decisions – they could potentially change the direction in which goods travel. This is tricky in itself, as international trade already relies heavily on a handful of transit chokepoints that are already over capacity, and switching up these shipping lanes could cause further complications, lengthen transport times and burden shippers with additional costs.

US sanctions on Iran

The fraught relationship between the US and Iran is another source of worry for shipping insiders.

The next wave of sanctions, which will take effect in November, targets the Iranian shipping industry in particular, with companies including the Islamic Republic of Iran Shipping Lines (IRISL), South Shipping Line Iran, and their affiliates to be most affected. These sanctions will comprise of restrictions on providing insurance to a wide range of Iranian industries, including shipping, sanctions on Iran’s port operators, shipbuilders, and shipping lines and sanctions on petroleum-related transactions with the National Iranian Oil Company. Iran’s energy and financial sectors are also being targeted.

Even with months still to go before these sanctions are enforced, international operators have already started pulling out of Iran in anticipation, with the Wall Street Journal reporting that Maersk Line and Mediterranean Shipping Company have already started pulling out their cargo shipments. Meanwhile in Europe, the UK, France and Germany have emphasised they will continue their trade relationship with Iran.

Despite support from Europe, the sanctions will have global reverberations, as Iran accounts for 5% of the global output of crude oil, the majority of which goes to China, Japan, India and South Korea.

Brexit confusion leaves shippers wondering

The debacle surrounding Britain’s exit from the European Union (EU) is still raging on, and while more negotiations, U-turns and much animosity are still to come, the UK shipping industry has been trying to find its bearings amid the chaos.

At the beginning of this year, Maritime UK chairman David Dingle pleaded with the government to “do this as quickly as possible because if there is no transition period the industry as a whole will be in trouble”.

This plea came after Dingle urged the development of a new customs agreement between the UK and EU in February last year, warning that “failure to secure a deal will not only see delays and disruption at ports like Dover, Holyhead and Portsmouth, but also in the EU at ports like Zeebrugge, Calais and Dublin.”

While the full impact of Brexit on shipping – from general market conditions to border controls, cabotage, ports and terminals – is still unknown, the British International Freight Association noted that “a slowdown in UK GDP will mean a slowdown in UK maritime trade”. However, in the long term, as trade agreements are negotiated with other, non-EU countries, the UK could work with those nations to open up new import sources and export destinations.

South China Sea dispute

At the crossroads between Hong Kong, the Philippines and Vietnam, the South China Sea is both a key shipping route and one of the world’s top resource regions, home to half a billion people who live within 100 miles of its coastline and rich in oil and natural gas.

But the region is also at the heart of an international territorial dispute, in which China uses the controversial ‘Nine-Dash Line’ to claim 90% of the territories in the South China Sea. This demarcation is contested by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

This is problematic, since as much as 50% of global oil tanker shipments pass through the South China Sea, according to the Council on Foreign Relations, making the waters one of the world’s busiest international sea lanes. It is also the easiest access route from Europe to Asia, with 33% of the world’s maritime traffic passing through these waters.

An escalation of this long-standing conflict took place in May, when Philippines President Rodrigo Duterte threatened to go to war over China’s attempts to exploit the area’s resources. The threat came after China placed long-range bombers on one of the disputed islands for the first time, fuelling fears that conflict is brewing.

Passing through this region, tankers carrying goods worth billions of dollars are often in hot waters: trespassing any demarcation lines would have tremendous consequences for international trade, and could even escalate to an armed conflict.

Rebels use Red Sea strait as political pawn

The acrimonious conflict between Yemen, Saudi Arabia and domestic rebel forces following a failed attempt to restore prosperity within the country after the Arab Spring led to what the UN has called “the world’s worst man-made humanitarian disaster”.

The tragedy is unfolding at one of the most strategic trade points by sea, as Yemen sits on the Bab-el-Mandeb strait, a narrow chokepoint between the Horn of Africa and the Middle East, which serves as the gateway between the Mediterranean Sea and the Indian Ocean.

The fact that the strait is a critical access point for much of the world’s oil shipments is being used as a bargaining chip by Yemen’s Houthis, who since 2015 have repeatedly threatened to either attack commercial ships passing through the 18km-wide waterway, or completely block the lane.

Several countries have flagged potential armed attacks on merchant vessels as a top risk in the area and have issued guidance for those who need to pass through these waters, including advice to use armed security staff on board for protection.

A gentle reminder : Flowers for Valentine's Day generate a carbon footprint

Flowers for Valentine's Day generate a carbon footprint

Our pursuit of goodwill and affection towards humanity through the giving of cut flowers is hurting the Mother Nature

Millions of flowers are sold around the world on Valentine's Day. This contributes to carbon emissions and waste ! Last year Australians imported more than 5.22 million rose stems between Feb 1 and 14, mostly from Kenya. Assuming typical bouquets of 24 roses, that’s 217,500 bouquets sold in two weeks.

The problem is that our pursuit of goodwill and affection towards humanity through the giving of cut flowers is hurting the number one lady in all of our lives: Mother Nature.

If those 217,500 bouquets were each wrapped in 75cm of plastic cellophane, that adds up to more than 163km of plastic wrapping used in a two-week period – just for roses, just in Australia.

So this Valentine’s Day, let’s consider making smarter, more sustainable flower purchases.

PETAL POWER

In Australia alone, there are more than 900 flower farms intensively cultivating 4,470 ha in order to supply almost 2,000 florists. However, the majority of cut flowers sold in Australia actually originate overseas, with imports from Ecuador alone valued at A$1.9 million (US$1.5 million) in 2015.

If you’re asking yourself “why are delicate flowers shipped halfway around the world?” that is a great question. Countries near the Equator, like Ecuador, benefit from good growing conditions, including 12 hours of daylight all year round. In these regions, the contribution of the flower industry to the economy of small or less developed countries is often significant.

In eastern Africa, for example, flowers account for more than 10 per cent of total exports, second only to tea. Lower wages in countries like Ecuador and Kenya also contribute to the economics of flying cut flowers around the world. Unfortunately, this often comes at a cost for local growers and pickers, who experience poor working conditions.

THE THORNY CARBON ISSUE

In the United States, the roughly 100 million roses grown, shipped and purchased on a typical Valentine’s Day produce some 9,000 tonnes of carbon dioxide emissions, from field to florist.

But, as with most things in our complex and busy world, the question of a flower’s carbon footprint isn’t as straightforward as it might seem.  The Netherlands is one of the world’s biggest exporters of cut flowers, where the majority are grown in heated or refrigerated green houses.

Maintaining the controlled environmental conditions inside these buildings requires artificial light, heat and cooling, so each rose grown in the Netherlands contributes an average of around 2.91kg of carbon dioxide to the atmosphere.

In contrast, a single rose grown on a farm in Kenya contributes only 0.5kg.

This is largely because Kenyan hot houses do not use artificial heating or lighting, and most farm workers walk or cycle to work. As a result, flowers grown in tropical regions are sometimes considered low-carbon.

Of course, this doesn’t always factor in international transport.

PESKY PESTICIDES

As flowers are not an edible crop, they are typically exempt from regulations on pesticide use. As a result, the cut flower industry is one of the biggest consumers of pesticides worldwide.

In Kenya and other countries, chemicals such as methyl bromide and others that are banned in countries like the US are regularly imported in significant quantities by flower growers for pest control.

Worryingly, methyl bromide is an ozone-depleting substance. In some cases, run-off of these chemicals from growing fields adjacent to water bodies, such as Kenya’s Lake Naivasha, has resulted in the collapse of fish stocks that are crucial to local communities.

LET US TAKE ACTION

The good news is that there are plenty of eco-friendly ways to show your devotion.

The best option is to grow your own flowers to give as gifts.

You can also give that special someone a living plant that can grow in their garden for years to come.

If you decide to buy imported flowers, look for labels indicating that suppliers are members of regulatory schemes.

It’s also worth asking or insisting that your local florist switch from plastic cellophane wrapping to butcher’s paper (or similar environmentally friendly material).

GREEN BUSINESS IS GOOD BUSINESS – CASE STUDY

The reality that growers are facing a market that is increasingly getting concerned over unsustainable practices dawned on the industry when supermarkets stated that they will only be sourcing flowers from growers involved in sustainable practices.

n adherence to this requirement, Kenyan flower grower and exporter Oserian Development Corporation has come up with a raft of measures aimed at maintaining production over a long period of time without compromising on natural systems or its responsibility to workers, suppliers and the local communities.

As one of the largest exporters of cut roses to the European Union, Oserian has adopted a ‘champions by nature’ approach to flower growing. The company utilises the integrated pest management (IPM) system, hydroponics to reduce water and fertiliser consumption and has the world’s largest geothermal heating project for maintaining the temperature in its greenhouses and for the provision of carbon dioxide (CO2) needed by the plants.

The company has adjusted its production system to address the ongoing changes in European Union’s environmental legislation which has increased pressure on agricultural production from EU’s trade partners. “We’re seeing developments in legislation on pesticides and bee-friendly products,” says Hamish Ker, Oserian’s technical director. He adds that the EU currently measures maximum residue limits (MRL) of pesticides on vegetables and fruit imports.

The company has invested heavily in natural solutions. It has launched a new outfit called Two Lakes, to develop new biological solutions through own research or by partnering with leading IPM companies. Oserian considers investing in natural solutions as a means of improving the company’s products for lowering costs. Ker says that this makes Oserian more competitive. “Yes, we have to invest in training on how to use these unique systems, but once you have that capacity, you find that nature’s solutions are more sustainable from all perspectives. To all intents and purposes, what you’re doing is creating a balanced ecosystem on the farm.”

Initiatives to reduce carbon footprint : To further reduce its carbon footprint, the company has imported seven electric vehicles from the Netherlands. “We’re going to use them to convert our trucks from fossil fuel to electric vehicles, which we can power from our geothermal plant,” says Ker. “If the project goes well, we’ll see more electric vehicle use in the future.” “Green business is good business,” says Ker who adds that the company hopes to save on the $500,000 it uses on diesel each year.

In addition, the company has embraced a more environmentally-friendly transportation process. It has adopted a unique concept for packing flowers developed by a Nairobi-based company, Cargolite. The latter’s cardboards are strengthened with a plastic skeleton. “This means a lighter box, which saves on air freight, cardboard, and results in a reduced impact on the environment.” Ker adds that by using the new packaging system, Oserian now saves as much as $8,000 for every one million stems transported to Europe.

Support to farmers & herders: Further, the company has been supporting local farmers to develop clean seeds. “Our sister company, Stokman, has developed clean seed banana planting materials and potatoes in its labs.” Ker says that the company helps local farmers by doing soil analysis, “so that they can understand the imbalances and can apply the right fertilisers and other corrective measures.”

Oserian has been providing high-breed sheep to local herders. “We have sheep on the farm to keep the grass short around the greenhouses, which reduces the insects and the diseases.” Ker says that the company imported a pedigree breed of sheep from South Africa called the Dorper, which it crossed with the local Maasai breed. “We set aside some of the ram lambs every year and donate them to the community, to help improve their flocks.

Agility joins IBM & Maersk's blockchain project

Agility, a global third-party logistics provider, has joined IBM and Maersk's blockchain collaboration, the companies announced Tuesday.

IBM and Maersk revealed their global trade digitization platform, built on the Hyperledger Fabric 1.0 blockchain, in January. DuPont, Dow Chemical, TetraPak, the U.S. Customs and Border Protection and others piloted an early version of the project.

The latest participant, Agility will share and receive information about individual shipment events through the blockchain in hopes of reducing the massive cost of administration and documentation – which reportedly accounts for one-fifth of the world's total $1.8 trillion annual shipping costs.

"Blockchain technology is going to make shipping cheaper, safer and more reliable. As early adopters, companies like Agility can help Maersk and IBM understand the needs of shippers and develop standards that will make trade more efficient," Essa Al-Saleh, CEO of Agility Global Integrated Logistics, told American Shipper.

Blockchain technology can streamline shipping by showing the status of documents like customs forms and bills of lading, thus helping to reduce the time it takes for shipments to clear inspections. Migrating shipping information onto the blockchain could also help facilitate more comprehensive risk analysis.

1+1+1 = 1 : Three Japanese carriers coming together as ONE

K Line, MOL and NYK are joining hands! They are banking their future group profitability on the success of the Ocean Network Express (ONE) – the merger of the Japanese transport groups’ respective container businesses scheduled for April.

The trio say they expect to save ¥50bn ($440m) in costs in the first fiscal year ending 31 March 2019m and thereafter ¥110bn a year.

The synergies will come from personnel consolidation, combining agencies and subsidiaries and a lowest-common-denominator-reduction strategy on port costs and service provider fees.

In their traditional New Year messages to staff today, the presidents of K Line, MOL and NYK, Eizo Murakami, Junichiro Ikeda and Tadaaki Naito, spoke of the advantages of the integration and a “turning point” for their companies.

 Feedback from shippers continues that they are being told by sales reps from the Japanese carriers that expiring contracts will be rolled over, with new deals stemmed to start from 1 April onwards.

After the merger, ONE will rank sixth in terms of global ranking by capacity with its combined 1.48m teu on 234 ships, above Evergreen’s 1.1m teu and just behind Hapag-Lloyd’s 1.56m teu. However, with a combined orderbook of some 187,000 teu, ONE could leapfrog Hapag-Lloyd, which has no ships on order.

Primary function for the new ONE ship planners will be to reduce costs by cutting out duplicated sailings, and there is likely to be a number of charter ships off-hired in due course.