On Saturday August 7 two ships collided off the Mumbai coast and the port has been closed for several days.  The Port of Nhava Sheva handles 60% of India’s container traffic. The accident appears to have been caused by failure to follow standard communications protocol between the vessels and the port traffic controllers.

In addition to delays already caused by the monsoon season, the port shutdown will create severe congestion for India ocean freight.  Delivery dates for ocean shipments routing through Mumbai will most likely be delayed, and the overflow of time sensitive cargo may impact air capacity into India as well.  Import customers may have to pay additional charges for rerouting of containers to alternate ports in India.

Additionally the Port of Mumbai banned shipment of hazardous goods on August 11.  This ban will become effective on September 6.  It was triggered by a recent chlorine gas leak at the port docs that hospitalized over 100 people.

According to the port authority, “It has been decided that dangerous goods listed under the International Maritime Dangerous Goods Code will not be accepted/handled at Mumbai Port.” The movement of “relatively less” hazardous goods, which include sulphur and calcined petroleum coke, will be permitted on direct delivery basis, subject to a 15-day advance clearance.  The list of cargo allowed to be shipped will be modified depending upon the degree of hazard and quantum.”

The sudden decision has prompted protests from the local trade community. The restrictions will further restrict freight capacity in and out of India. 

For more information on how this may impact your supply chain please contact your local NNR office.

NNR Global Logistics has appointed Simon Schlapfer its new Operations Director. Mr. Schlapfer began his career with NNR in November 2004 and has been managing NNR’s Global Account organization. In his new role he will be responsible for all export and import operational matters in the US. He will work with NNR’s Branch Managers to standardize and streamline operations to maximize service quality and increase productivity. Additionally Mr. Schlapfer will be responsible for NNR’s security initiatives.

“We are excited to have Simon in this role,” said Corporate Director of Sales and Marketing Andy Hadley. “His experience with delivering operational excellence for our global accounts will be invaluable to meeting NNR’s commitment to truly exceptional customer service.”

The global recession has forced many shipping lines to drastically reduce their capacity. As was reported by industry watch dogs, at their lowest point shipping lines cut capacity by 11%. But as the effects of the financial crisis are easing, ocean lines are reporting a surprising increase in the demand for cargo capacity.

According to the senior VP Asia-Europe for CMA CGM, Nicolas Sartini, the demand figures are “a little bit incredible”. He went further in commenting on the expectations, and suggested that the demand is going to remain strong causing space to be a bit “tight”. According to Sartini, there are several factors in play when it comes to capacity and container shortages, and one of them is the lack of available credit. CMA CGM expects demand to remain strong and warns that lack of capacity will force the ocean lines to increase rates. The company has already announced a third-quarter rate increase on the Asia-Europe trade of $250 per teu, and is planning to introduce a peak season surcharge of $200 per teu.

While everyone is concerned about the situation in the Eurozone and in particular the Greek financial situation, it seems that the recovery is on a strong path toward rebound. A recent report by AXS Alphaliner highlights the positive changes that have been taking place in recent months. According to the report, China has recorded its highest ever level of exports at $137.4 billion with a 44% year-over-year increase. European exports reached a 21 month high, while the US exports topped $25.5 billion.

Many industry executives are concerned by the potential bottleneck effects of increased demand, and are urging shipping lines to increase capacity. Sunny Ho, Director of the Hong Kong Shippers’ Council, announced that the availability of containers was a “big problem”, but the situation has improved somewhat in recent months. But according to Paul Tsui, Chairman of the Hong Kong Association of Freight Forwarding and Logistics, shortages of some specialist high-cube equipment are still a problem.

While shipping lines are cautious in increasing capacity, retailers and manufacturers seem to be more aggressive in the recovery process. According to the industry reporters, peak season is expected to bring more problems and delays on the Asian routes. Capacity is going to be scarce, and the retailers and manufacturers will be willing to pay a “top dollar” for the available space.

We at NNR Global Logistics have anticipated the potential shortages, and have been rapidly expanding our ocean freight capacity. Currently we have contracts with several key Asian carriers, and offer capacity on the majority of Asian lanes. Due to the fact that we have planned ahead for the upcoming season, we can offer competitive rates on both FCL and LCL shipments.

For more information on our ocean services, please visit our website at www.nnrusa.com or contact one of our multiple worldwide locations. Contact information and further details are available on our website.

NNR Offers Cargo Screening

As a part of our continuous commitment to the highest quality of service, NNR Global Logistics has taken steps to simplify the cargo screening process for our clients. We are pleased to announce that we now have 18 locations in the US which are participating in CCSP and CCSF, and are fully authorized to carry out TSA screening procedures. Our staff have been trained and vetted to meet the new TSA security requirements and are fully competent to handle any type of cargo that our clients might have for shipping. We value the trust that you have shown in us and are taking additional steps to further improve your experience with NNR Global Logistics. In addition to CCSP qualifications, we have introduced 8 locations that fully comply with TAPA-A guidelines.

CCSP Background

Among numerous new procedures implemented by the Transportation Security Administration (TSA), Certified Cargo Screening Program (CCSP) is the latest development that will affect the way cargo is shipped on a passenger aircraft. The program has been developed as a result of a 9/11 Commission recommendation and was been launched on August 1, 2010.

The program envisions a series of security procedures in cargo screening which will ensure the safety of a traveling public. The key to the new requirements is screening cargo at a piece level. While the procedure is likely to prolong the processing times for some shippers, the benefits of security far outweigh the risks which unauthorized cargo presents to a passenger aircraft. In order to minimize the backlogs at the airports, and keep the bureaucracy to a minimum, TSA has introduced Certified Cargo Screening Facility (CCSF) program. Participants are vetted, and after an extensive evaluation, are granted a certification that allows them to perform the procedures at their facilities.

The TSA strongly encourages businesses to take notice of the new rules, and review how it will impact their supply chains. Some of the things to consider in light of the new CCSP regulations are:

• Are your shipments carried on a passenger airplane?
• Will the shipments be comprised if opened for screening?
• What will the cost of screening be?
• Are your products sensitive for delays?
• Are you participating in other supply chain programs? (C-TPAT, cGMP, TAPA, etc.)

For additional information on services NNR Global Logistics offers, please visit our website at: www.nnrusa.com.