The Maritime and Port Authority of Singapore (MPA) is looking for proposals for the supply of methanol as a marine bunker fuel in Singapore from 2025. This is to ensure a resilient supply of methanol to meet the international bunkering needs at the port of Singapore.

The deadline for proposals is February 29, 2024, for methanol supply sources at a commercial scale and to find out the ways to physically transfer methanol.

Teo Eng Dih, MPA chief executive stated that the launch of the expression of interest (EOI) is a milestone towards the development of a methanol licensing framework to enable the supply of methanol at scale in the Port of Singapore.

In July 2023, the world’s top bunkering hub carried out its first bio-methanol refuelling operation for a Maersk box ship. Singapore also has worked on its first dedicated methanol bunkering tanker, Maple which was delivered in Japan to Stellar Ship Management Services, a subsidiary of Global Energy Group (GEG).

Supply chain delays and increased rates related to the Suez Canal and Panama Canal may lead shippers and forwarders to choose air cargo as an alternative. Shipping operations are currently being affected by the need to avoid the Suez Canal due to the risk of attacks in the Red Sea, and restrictions on the Panama Canal due to drought.
Pierre Van Der Stichele, Vice President of Global Cargo at charter broker Air Partner, has stated that the resulting higher costs and longer transit times for container ships could potentially increase the demand for airfreight in the long run.

Shipping companies have rerouted vessels away from the Suez Canal in Egypt due to recent attacks on container ships in the Red Sea, off the Yemen coast. These attacks were carried out by the Houthi Militia as a response to Israel’s military operations in Gaza.

Several container carriers have suspended services through the Red Sea and the adjoining Suez Canal following attacks on around 10 commercial vessels in recent weeks. As a result, companies are considering a costly and time-consuming alternative route around Africa via the Cape of Good Hope. MSC’s Palatium was among the ships attacked, with MSC reporting the incident happened on December 15 in the Red Sea, while under sub-charter to Messina Line.
As a precautionary measure to protect the lives and safety of seafarers, MSC ships will not transit the Suez Canal Eastbound and Westbound until the Red Sea passage is safe. Some services will be rerouted to go via the Cape of Good Hope instead, and this disruption will impact the sailing schedules by several days of vessels booked for Suez transit.

Other shipping companies, including CMA CGM, Maersk, Hapag-Lloyd, ONE, HMM, and potentially COSCO, also appear to be diverting or halting operations. CMA CGM has decided to reroute some of its vessels to and from the US, North Europe, and Asia or Indian Subcontinent via the Cape of Good Hope at the southern tip of Africa. All other containerships in the area that are scheduled to pass through the Red Sea have already been instructed to reach safe areas and pause their journey until further notice.

Logistics and forwarding companies are concerned about the impact of the Suez Canal blockage on shipping. According to Scan Global Logistics, the industry may face a supply chain crisis similar to the one experienced during the worst of the pandemic. The alternative route around Africa via the Cape of Good Hope will take an additional 10 days for ship voyages, leading to shipment delays and increased rate levels. Xeneta analyst Peter Sand has predicted that ocean freight prices could increase by up to 100% depending on the scale and duration of the situation. Flexport has reported that 90% of Suez Canal-bound container vessels are pausing or rerouting, which could remove roughly a quarter of the world’s total capacity, leading to inflated prices and delayed shipments. Shippers should expect significant delays, and re-routing via the Cape of Good Hope could prolong transit times by 7-10 days. The disruption is likely to affect Asia – Europe markets with similar extended sailing times and costs. Governments are now looking at measures to address the Red Sea danger, with an international task force set up to share ships and resources. Participating countries include the US, UK, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles, and Spain.

The shipping industry has faced several challenges, including restrictions on vessels passing through the Panama Canal due to reduced water levels caused by drought. The Panama Canal Authority reduced the number of ships allowed to pass through the canal from 36 to 22 per day, causing delays in the global supply chain. However, due to higher-than-expected rainfall and lake levels, the Panama Canal Authority recently decided to increase the number of daily transits to 24 starting in January, instead of a planned further reduction to 18 ships per day.

These restrictions, combined with an increase in the Canal Tariff, have raised operational costs. As a result, pricing for cargo from South Africa, Mozambique & Namibia to South America’s West Coast transiting the Panama Canal will no longer include the Panama Canal Surcharge (PCS). Effective January 1, 2024, pricing will be subject to a PCS of USD 200 / TEU.

According to Van Der Stichele, the issues at the Panama Canal could potentially cause a longer disruption as portions of the canal might dry up unless there is a significant period of rainfall anytime soon. A technical solution is planned, but it could potentially take two years to implement. This disruption would increase shipping transit time sailings significantly, raising costs. It would mostly affect the European and African markets, but not the US, as shipping lanes would still be able to dock on western US ports.

Van Der Stichele says that it is too late in the year for the impact of the Suez Canal and Panama Canal problems to affect air cargo. Air Partner has not seen an increase in air charter business yet. This is because it is too close to Christmas and any ocean freight peak season would have already sailed and reached its destination. Even if the Suez Canal or the Panama Canal had been an issue one or two months ago, it would have caused significant delays for high-value consumer goods before Christmas.

However, the situation in Panama is a growing concern for sea container shipping companies. The shipping lines are avoiding sailings through the Red Sea and the Gulf of Aden due to recent attacks on vessels. Van Der Stichele expects the cost of ocean freight to increase significantly in the long term, whether it be for consumer goods, raw materials, semi-finished goods, built vehicles, or outsized cargo. This is because ships due to use the Suez and Panama canals will add several weeks circumnavigating the continents and this has the potential of increasing demand for airfreight just as the low season is due to start.

India has been negotiating hard to complete crucial bilateral deals with key trading partners in 2023. However, experts believe the country could secure the FTA (Foreign Trade Agreement) with the UK and Oman in the initial months of 2024.

Authorities believe that by January 2024, India will be able to sign the deal with Oman as the comprehensive economic partnership agreement (CEPA) is largely finalized. As for the UK-India FTA, the next round of talks is scheduled to happen in early 2024.

Ajay Sahai, DG & CEO of the Federation of Indian Export Organization stated that India is hopeful to sign agreements with Oman and the UK by April 2024. With the EU, which is a union of 28 countries, it will take a much longer time to move forward.

India has plans to sign an FTA with the UK, Oman and Canada but things didn’t pan out as anticipated with Canada due to diplomatic relations. On the UK part, things are relying on resolving issues around rules of origin and demand for tariff concession on electric vehicles and services.

Global Trade Research Initiative co-founder Ajay Srivastava emphasized that FTA is a mutual process between two countries, and the agreement signing depends on when both parties are completely satisfied with the terms and conditions. If India is not getting enough, then it should not sign and try to work around it as new and emerging issues like digital trade and sustainability are key aspects when discussing FTA talks. He further said that expanding the existing trade pacts with Australia and the US will help India in the long run in exploring and enhancing export competitiveness.

India’s export strategy to tap newer markets for Indian goods would be significant in arresting the effect of a demand slowdown across the globe. For April-November, merchandise exports were down 6.5% year-on-year at $278.8 billion, while imports contracted by 8.67% to $445.15 billion during the same period.

Yemen’s Houthi rebels are attacking cargo ships in the Red Sea. Recently, MT Strinda, an all-Indian crew ship experienced terror in the mid-sea. These attacks have forced the world’s leading shipping companies to either order their ships to avoid the Red Sea or halt wherever they are. Indian ships usually used this trade route to transit to Europe as journey time is shorter. If the ships look at adopting to sail around Africa via the Cape of Good Hope then the journey will be two weeks longer.

Maersk, the Danish shipping company, the world’s largest, and German container line Hapag-Lloyd have postponed journeys through a key Red Sea strait or pause their journey until further notice if they have to pass through the Bab-el Mandeb strait following a string of Houthi drone and missile attacks that are disrupting international commerce. Around 20 Houthi missiles have been shot down by US Naval forces in the last few days.
The one-way trip from the Persian Gulf to Rotterdam port takes nearly 18 days via the Suez and more than 31 days via the Cape of Good Hope.

Peter Sand, Chief Analyst at the Global Shipping Service stated that all ships going the Suez Canal must sail through the Red Sea and Gulf of Aden, but the Houthis have made it clear that vessels will be targeted. He said that as of now the Suez Canal will not close, but with the serious impediments and escalations, it cannot be ruled out, even if it is just for a few days. He added that the global supply chain is chaotic right now as the Red Sea is witnessing the Houthis attack and also there are huge delays due to drought and low water levels in Panama Canal.

Global shipping has become a target due to the extended war between Israel and Hamas. Now, some Israeli-linked vessels have already opted for the longer route via Africa which makes the journey three weeks longer. The insurance companies are also charging double for the ships moving through the Red Sea and this new hike has the biggest impact on the shipping companies.

Currently, the shipping companies want a multinational task force to start operating in the Red Sea to deter the Houthis from any further attacks.

A new pact has been agreed at the United Nations climate summit in Dubai – COP28 – after multiple negotiations. The new pact mentions and calls on all countries to avoid the use of fossil fuels but it does not provide any text demanding the phase-out of fossil fuels.

The agreement is hailed by COP28 president Sultan Ahmed Al-Jaber who called the pact as a historic package and emphasized that the pact has the potential to redefine the economies. At the COP28, the 60 maritime organizations and govt. partners called upon to agree on a course to deliver on the IMO (International Maritime Organization) net zero targets by or around 2050. The leaders present at the event from across the world shared their mutual consent to work together to deliver a robust regulatory outcome at the IMO negotiations in March 2024 at MEPC81. The CEOs of leading global shipping lines, MSC, Maersk, CMA CGM, Hapag-Lloyd and Wallenius Wilhelmsen stood together and called for an end date for fossil-only powered new builds.

Belgian ship-owner Zulu Associates has partnered with Dutch naval architect Consoship International to reveal a concept design for a 200 teu autonomous, electric short sea container vessel featuring wind blades, designed for voyages around the English Channel. The container vessel might also feature wave foil propulsion.

Antoon Van Coillie, the CEO of Zulu Associates said that new concepts are unveiled which are challenging the traditional concepts. The new features will surely drive change and enable zero-emission shipping possibilities. The time is right for short-sea shipbuilding.

The designers are also working on a modular energy container for the concept ship using batteries and/or hydrogen-based power systems to provide the prime energy source.

India and Bangladesh agreed to extend the Indo-Bangladesh Protocol (IBP) route, with Safardighi in West Bengal as the new port of call under the Protocol on Inland Water Transit Trade (PIWT&T), according to an official statement released on Friday.

As per the statement, three high-level talks were conducted between India and Bangladesh. These talks included shipping secretary-level talks that were held during the 22nd meeting of the standing committee under PIWT&T, and the 3rd meeting of the inter-governmental committee on the use of Chattogram and Mongla Ports for the movement of goods. The talks were successfully concluded in Dhaka.

During the recent talks, various issues related to seafarers were discussed. These included making it easier to obtain visas, providing shore leave facilities, and improving the repatriation process. A joint committee will be formed to implement a common Automatic Identification System (AIS) on the IBP route. This system will improve vessel navigation and tracking.

It was agreed that the Mongla-Jamtola stretch would be included for passenger and cruise vessels to visit the Sunderbans area in Bangladesh. Both sides agreed to examine the inclusion of Payra seaport in the agreement on the use of Chattogram and Mongla Ports (ACMP) for the movement of goods between the two countries.

The Indo-Bangladesh Protocol Route and Coastal routes are shared by both countries for the transportation of cargo and passengers. These routes are important as they provide an alternative connectivity option to the northeast through Bangladesh.

India is considering connecting Matarbari Port to the northeastern states. Bangladesh is looking forward to increasing its exports with the construction of the country’s first deep sea port in Matarbari, which is being built with the help of Japan. The new port will not only improve the country’s ability to handle cargo from international markets, but also enable it to enhance its exports to Southeast Asia, and other Asian markets.

The Japan International Cooperation Agency (JICA) is helping Bangladesh finance the Matarbari project, which aims to enhance the port’s cargo-handling capacity and streamline logistics operations with neighbouring countries. The project includes the construction of a multi-purpose deep-sea port for containers and general cargo in the Matarbari area of Cox’s Bazar, under the Chattogram division. This initiative is expected to contribute significantly to Bangladesh’s economic growth. Earlier this year, JICA granted a $750 million loan to the Bangladesh government for the Matarbari development.

The Matarbari port is set to start operations in 2027, which will reduce the burden on crowded ports like Chittagong. In March, JICA (Japan International Cooperation Agency) extended an additional $400 million loan to enhance road infrastructure between Chittagong Port and Cox’s Bazaar, improving road connectivity to the Matarbari port. The new Matarbari port is expected to strengthen economic ties and open up new development prospects for India’s northeastern states, including Tripura. The initiative is a result of the plans by Japan, Bangladesh, and India to attract manufacturing to the Northeast and Bangladesh and to establish a new industrial value chain in South Asia for exports to Indo-Pacific markets.

According to sources, India is actively exploring ways to enhance connectivity to Matarbari, either through a bilateral initiative or in partnership with Japan, which is already engaged in major road connectivity projects in Bangladesh.

No response was received until press time from queries sent to the external affairs ministry and Bangladesh High Commission in New Delhi. New Delhi is taking proactive measures to enhance connectivity with Bangladesh, which will promote bilateral trade and economic ties in South Asia. These initiatives include reviving cross-border railway projects, constructing energy pipelines, and sponsoring road projects in Bangladesh.

India is also showing interest in the Bay of Bengal Northeast Industrial Value Chain concept led by Japan. This project will result in increased infrastructure connectivity and synchronized trade policies between New Delhi, Dhaka, and Tokyo. Concerns have been raised about China’s growing presence in Bangladesh. Beijing was initially interested in financing a deep sea port in Sonadia in the southeastern part of the country. However, Sheikh Hasina’s government decided to cancel the plan in 2020 and focus on building a port at Matarbari in collaboration with Japan. News reports at the time suggested that New Delhi was opposed to the Sonadia port project.
India recognizes China’s significant presence in the region and has shifted its focus towards resolving disputes and strengthening bilateral relations through connectivity and economic prospects.

Logistics as an industry is going through a remarkable transformation, largely fuelled by tech interventions and advances. AI (Artificial Intelligence), cloud computing, data analytics, and RPA (Robotics Process Automation) have changed the way logistics operations are handled and managed, paving the way for accuracy, scalability, and speedy alerts. With tech being an integral part of logistics, the positive impact is visible on the supply chain efficiency and effectiveness.

However, even with digital advancement, there is always a lasting impression of the human touch in the logistics equation. While algorithms and machines can process huge data and optimise routes, they can’t understand the nuances of human behaviour, emotions, and personalised interactions and this is where the human touch stands out in supply chain logistics operations

In inventory management and distribution, the human touch denotes the unique connection and support that real people bring to the table through the encouraging voice on the other end of the line, the focused ear that listens to your issues, and the problem-solving mindset and adapting swiftly to unforeseen challenges. In customer service, the human touch becomes the differentiating factor that can make or break a business relationship.

In today’s fast-paced world, where digitalization is given utmost importance, customers still value the human touch, the personal and emotional connection that makes them feel valued and understood. The business today must know how to strike the right balance between the human touch and digitalization to maximize logistics performance and customer experience. Let’s look at some ways to help achieve this balance.

Know your customer and their requirements

Understanding the needs of the customers is the very first step. Know what your customers need, their pain points and expectations, their feedback and suggestions. By talking to them, you can get valuable insights into their preferences and satisfaction. With a clear understanding, you can easily customise your automation and human touch strategies.

Digitalise the mundane tasks

The second step is to digitalise the repetitive and mundane tasks that do not require much human interaction or creativity. The best example could be email automation to handle simple inquiries, confirmations, reminders, updates and chatbots. Not only that, with the use of AI, data entry, document generation and quality assurance can be easily automated ensuring the optimisation of time, money and resources as well as reducing human errors. This automation could also allow employees to focus on meaningful tasks that require human skills and expertise.

Initiating the Personal Interventions where it matters most

The third step to finding the accurate balance between automation and the human touch is where it matters most. For example, human emotions can handle complex or sensitive issues, such as complaints, refunds, or escalations. Human touch can be used to provide personalised recommendations, advice and guidance wherever needed as per customers’ needs and preferences. Automation can help solve issues related to operations. Still, it’s only the human touch that can offer rapport and trust to customers through gratitude and appreciation for long-lasting customer relationships.

STRIKING THE BALANCE

The fourth important point is to monitor the balance between the automation and the human touch strategies. This can be done via key performance metrics like response time, resolution rate, and customer satisfaction score (CSAT), to measure the effectiveness and efficiency of the automation. The result of human angle can be measured by collecting feedback from customers on how they find the solutions that are offered and how they are helpful to their businesses.

Automation and the human interventions are complementary to each other, finding the right balance between the two is significant to optimize the business performance and for customer experience and satisfaction. The key is to understand your customer’s needs and preferences and work around them using automation and human touch as a combined package. By doing so, it can create a competitive advantage for any business in the digital age

Environmental Defense Fund (EDF) and Lloyd’s Register (LR) Maritime Decarbonisation Hub, in partnership with Arup, have launched the Sustainable First Movers Initiative Identification Tool which would help shipping stakeholders align investment decisions that help the maritime energy transition away from fossil fuels.
The tool scores a port’s potential to produce and bunker electrofuels while transporting local environmental and community benefits in association with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

Marie Cabbia Hubatova, director of global shipping at EDF stated that ports play an important role in kick starting shipping’s decarbonisation process even before global policies are established and by allowing for the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be improved and directed to locations where these initiatives will make a greater impact.

With close to 2 billion people living in coastal zones globally, it is important to consider the role of local port communities and their impacts as the sector decarbonizes.

The tool analyzes 108 ports in the Indo-Pacific region based on land suitability, air quality, renewable energy surplus, economic resilience, and shipping.

The study includes investigating different types of ports such as ports that are looking at fuel production and bunkering, ports that are considering exporting fuel, and ports that are exploring fuel imports and bunkering. By evaluating various criteria and scenarios, the research aims to identify ports that have the potential to take the first step towards sustainable initiatives that can lead to significant reductions in emissions and create a positive impact on nearby communities, such as improved air quality and economic stability.

Dr. Carlo Raucci, a consultant at Lloyd’s Register Maritime Decarbonisation Hub reacted to the development stating that the shift towards clean energy for the shipping industry can only be realized when all stakeholders work together. As per her, the first step towards achieving this goal is to identify potential port locations. She further added that this approach lays the foundation for a sustainable transition at a regional level that takes into account the impact on port-side communities and the need to prevent regions in the Global South from trailing behind.

The tool can be customized based on the needs and goals of stakeholders, and its suitability depends on the desirability of the scenario. The next phase of this initiative will involve selecting and thoroughly evaluating ten ports to gain a better understanding of local requirements.