34 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015

Asian seaborne trade has roughly

quadrupled in the last 25 years.

Three Chinese mega-ports in

particular — Dalian, Guangzhou and

Ningbo — have more than quadrupled

TEUs in the last decade.

Analysts predict continuing recovery

of demand in developed countries,

and although demand in emerging

economies may fall, it is still expected

to outpace growth in high-income

countries. As consumer economies

take hold in Asia and the southern

hemisphere, the balance of trade

continues to shift to those areas.

To manage whopping volumes and

upsized vessels, Asian transshipment

hubs are energetically investing in docks,

terminals, equipment, draft, inland

connectivity, and smart transportation

solutions.

“The evolutionary timeline toward

larger vessels has sped up dramatically.

Ports and terminals are challenged to

make sizable investments in terminal

infrastructure at an accelerated rate to be

able to accommodate the bigger ships,”

said Kurt Nagle, president and CEO,

American Association of Port Authorities.

Port investments that expedite

vessel turns and cargo movement

are welcomed by carriers looking to

continually to improve performance.

Delay concerns emerge when there is

congestion in ports such as Shanghai,

Ningbo, Nhava Sheva and Mumbai, said

Rafi Ben-Ari, vice president of shipping

for ZIM Integrated Shipping Services.

Fortunately, recent announcements will

C argoSmart Limited provides global

shipment management software solu-

tions that enable shippers, consignees,

logistics service providers, non-vessel-

operating common carriers and ocean

carriers to improve planning and on-time

deliveries.

Connected to more than 30 ocean

carriers, CargoSmart leverages big data

sources and a cloud-based platform to of-

fer award-winning sailing schedules,

visibility, documentation, contract

management, compliance, analytics and

benchmarking solutions.

BIG DATA TECHNOLOGY

CargoSmart monitors a complex

interplay of sea traffic metrics, covering

90 percent of the world’s ocean container

traffic, to deliver unprecedented insights

for customers to make better decisions.

LEADING-EDGE CLOUD

CargoSmart’s scalable and secured

data management system offers cost-

effective solutions to fulfill customers’

business needs and provides a seamless

connection with their business networks.

EXTENSIVE SHIPPING INDUSTRY

KNOWLEDGE

Leveraging decades of industry knowl-

edge and experience in vessel operations,

CargoSmart helps customers create busi-

ness value in the age of shipping industry

digitization.

Launched in 2000, CargoSmart helps

more than 130,000 transportation and

logistics professionals increase delivery reli-

ability, lower transportation costs, stream-

line operations and improve collaboration

between supply chain associates

CargoSmart is changing the way you

use digital shipping data, enabling you

to be in control of and actively manage

your shipments. For more information,

please contact a CargoSmart representa-

tive today.

CONTACT INFORMATION

CargoSmart Limited

5/F, Lakeside 2,

No 10 Science Park West Avenue

Phase 2, Hong Kong Science Park,

Shatin, Hong Kong

Global Inquiries: +852-2233-8000

U.S. Inquiries: +1-408-325-7652

info@cargosmart.com

www.cargosmart.com

CARGOSMART TRANSFORMS SHIPPING DATA FOR YOUR ADVANTAGE

Asia’s Ports Chart Global Advancement Course

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benchmarking solutions.

36 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015

provide relief for carriers in some ports.

India’s Nhava Sheva plans for

a deep-sea satellite port north

of Mumbai; privately-owned

Krishnapatnam – one of India’s deepest

container ports – has new state-

owned inland rail connectivity; China’s

Xiamen anticipates a main channel

project; Phnom Penh announced

a new terminal to support exports

to developed markets; and Laem

Chabang, Thailand’s largest port, has

approved an expansion.

At Malaysia’s Port of Tanjung Pelepas,

an investment of more than $400 million

will answer new alliance needs for

heightened reliability and productivity.

China Merchant Holdings (International)

continues its global advance in Colombo,

Sri Lanka, with a joint venture that will

see a half-billion-dollar new terminal

investment. In Singapore, a new, $8 billion

port will double the alpha city’s port

capacity to an estimated 65 million TEU.

The big carrier alliances that are

forcing vast changes to port models in

Asia and globally continue to build Far

East-U.S. East Coast capacity. In April,

industry analyst Alphaliner said that the

summer launch of six new strings — by

carriers expecting continued volume shifts

away from the U.S. West Coast — would

add about 26,800 TEU slots per week to

the trade, which would be a 24 percent

capacity increase from March.

Despite an increasing dominance of

the alliances, not all lines are members.

With a total of 11 Asia-America services,

some of which boast industry-leading

transit times, ZIM maintains a strong

The big carrier alliances that are forcing

vast changes to port models in Asia

and globally continue to build

Far East-U.S. East Coast capacity.

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www.joc.com THE JOURNAL OF COMMERCE 37

ASIA PORTS

independent presence in the Asian

trades. Operating a fleet where the

largest vessels max out at slightly more

than 10,000 TEUs, ZIM has not yet

chosen to trade its enviable operational

flexibility for the savings that might

come from an alliance membership.

It is challenging to offer a unique and

efficient service, but ZIM has emerged

from a corporate overhaul and is doing

just that. “These improvements are both

on the operational level, improving

service reliability, as well as on the

commercial and customer service level,

which is part of our strategic focus,” said

Vice President of Sales Nissim Yochai.

“During the severe disruptions in

U.S. West Coast ports, ZIM has proved

its strong commitment to customers by

responding fast and providing creative

solutions,” Ben-Ari said. The company

initiated customer-pleasing ‘extra loaders’

via the Suez Canal during the difficult

period. The line’s new Seven Star Express,

or Z7S, followed as a permanent solution.

The Z7S offer a particularly speedy

gateway for Asian reefer and dry cargo

moving over the U.S. East Coast to the

Midwest, but ZIM still has big plans for

the West Coast. “ZIM is well prepared

for the new enlarged Panama Canal,

and will deploy larger vessels offering

more capacity and options to customers.

We provide several gateways to U.S.

Due to the U.S. West Coast port strife in late 2014

and early this year, a portion of Asian freight will

permanently shift routing to East and Gulf Coast ports.

IN FAVOR OF NEAR-SOURCING

Carriers and beneficial cargo owners alike need options to combat West Coast port

congestion and other supply chain disruptions. This shift filters down through the sup-

ply chain all the way back to Asian ports and, ultimately, suppliers. It won’t alter their

domination of the North American import market any time soon, but has underscored,

for buyers, an important benefit of near-sourcing.

Some of the supply chain alternatives cobbled together to simply get through the

West Coast impasse panned out so well that shippers are signing on for the long term.

Having suffered heavy financial losses once, some beneficial cargo owners refuse to be put

in jeopardy again and are switching some or all of their cargo to U.S. East and Gulf Coast

alternatives.

RAMIFICATIONS FOR U.S. EAST AND GULF COASTS

Record volumes at certain East and Gulf Coast gateways have continued even after

February’s return to “normal” on the West Coast. Georgia Ports Authority reported that

Savannah, for example, enjoyed a 27.8 percent increase in March alone (compared to

March 2014) – a full month after the labor contract problems ended. They also recorded

a 15.3 percent increase in TEU volumes for the nine-month period ending in March 2015.

For many eastern and Gulf seaboard ports some diversions have become conversions.

Asian imports made up the lion’s share of the diverted cargo. In Jacksonville, Florida,

the 2014 year-over-year TEU counts for Asian containerized trade were up 20 percent,

reaching a record 272,500 TEUs, or about 2.1 million tons. For a port already deemed

the fastest-growing Asian box port on the U.S. East Coast for the last five years, accord-

ing to PIERS reports, the short-term western impasse provided a fine opportunity to

showcase its gateway’s supply-chain to new BCOs and commodities. Through Jackson-

ville, 2014 Asian imports were led by furniture, vehicles and parts, coffee, frozen fish,

plastic products, bags and toys.

Some analysts are concerned that the labor issue resolution may not be a panacea

and that systemic problems related to the arrival of alliance vessels with large cargo

volumes needing to be distributed in short windows is unresolved. Certainly, there is

room for improvement in West Coast terminal productivity, trucker availability and truck

turnaround time, but those opportunities apply through many other North American

gateways.

West Coast Strife Upshot

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38 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015

inland. The PNW gateway proved

reliable and performed excellently during

the West Coast crisis. In addition we

offer alternative gateways via Houston,

Savannah, New York,” Ben-Ari said.

Strategically expanding its existing

network and smart logistics solutions for

Asian trade is an important part of ZIM’s

strategic model. “We are proud of our

legacy and look ahead with confidence,”

said President and CEO Rafi Danieli, as the

company celebrated its 70th anniversary.

At the end of the day, exceptional,

innovative carriers still need exceptional,

innovative port services. Automation

brings great competitive advantage,

and the massive ports of Asia offer

exceptional fodder for automation.

Finland-based crane and equipment

maker Konecranes PLC is a leader in port

automation. “Asia is the world’s most

dynamic region, and Konecranes aims

to be part of that dynamism,” Product

Marketing Manager Svend Videbaek said.

Automated container handling is

already in place in many ports, most

commonly with rail-mounted gantry

systems. Konecranes also offers automated

rubber-tire container yard gantries, a

first in the industry. Its Boxhunter RTG

product was inaugurated two years

ago in Singapore, and is planned for

Myanmar. “In principle, nothing prevents

complete automation of the container

terminal, from STS quayside operations

to loading of external road trucks

taking containers out of the terminal,”

Videbaek said. In practice, human remote

operators currently guide truck loading

and unloading in container blocks, while

other container moves are completely

automated.

More automation is coming.

A BRIGHTER FUTURE

Konecranes is a world-leading group of

Lifting Businesses™, serving a broad

range of customers, including manufactur-

ing and process industries, shipyards, ports

and container terminals. Konecranes pro-

vides productivity-enhancing lifting solutions

as well as services for lifting equipment and

machine tools of all makes. In 2014, Group

sales totaled EUR 2,011 million. The Group

has 11,900 employees at 600 locations in 48

countries. Konecranes is listed on the Nasdaq

Helsinki (symbol: KCR1V).

Automatic moving and stacking of

containers is the next step in the evolution of

container crane technology that began with

the introduction of containerized shipping in

the 1960s. Konecranes automated container-

handling systems offer significant advantages

in an ever-more automated industry.

Automated container handling is

well-established in Automated RMG, or

ARMG, container yards around the world.

The benefits of automating a container

terminal operation are well-known:

increased safety, greater productivity and

better predictability. With the Konecranes

Automated RTG system, these impor-

tant benefits are brought to RTG-based

container terminal operations as well. With

this concept, brownfield terminals that cur-

rently operate man-driven RTGs or reach

stackers can move to automated opera-

tion. With a step-by-step approach, the

risks of automation are reduced and the

terminal can adapt and learn as it goes.

In Asia, the automated container han-

dling system of newly inaugurated Lamong

Bay Terminal, Pelindo III in Indonesia, is

also provided by Konecranes. It consists

of 20 Automated RMG cranes, remote

operating stations, or ROSs, and associated

container yard infrastructure. Konecranes

also provided 10 ship-to-shore cranes

and five straddle carriers. Handover of the

automated container blocks is proceeding

smoothly. Konecranes is providing expert

engineering support on-site.

With its long experience of successful

automation projects in the field,

Konecranes is in a unique position

to deliver automation value to

container terminals considering

automation in their long-term busi-

ness planning: the future of your

container terminal is brighter.

At the end of the day, exceptional,

innovative carriers still need exceptional,

innovative port services.

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40 THE JOURNAL OF COMMERCE www.joc.com JUNE 29.2015

Desired redundancy, precise container

detection that compensates for fog

and dust, canyon driving, container

sway elimination – diverse container

handling objectives related to

reliability, predictability and cost – are

all being addressed by automation.

“Wherever container traffic grows

in future, we can expect to see higher

levels of automation coming into play in

container terminals,” Videbaek said.

In May, Indonesia’s Lamong Bay

Terminal inaugurated a system of

automated stacking cranes, remote

operating stations and associated

container yard infrastructure. “It is the

next generation container terminal

… This will be the key to build up

business success …,” by providing

reliability, productivity, predictability

and safety for shipping line customers,

said Prasetyadi, president director of

Terminal Teluk Lamong.

Digital-age knowledge also builds

logistical success.

Leveraging shipping industry

knowledge using leading-edge data

Z IM Integrated Shipping Services Ltd. was established in 1945,

and has developed into one of the largest, leading carriers in

the global container shipping industry.

At ZIM, we are committed to providing our clients around

the world with reliable, flexible shipping solutions based

on expertise gained from over half a century of experience.

We cultivate long-term partnerships with our customers to

delivering a range of services adapted to meet their specific

needs, with the ZIM seal of quality.

For ZIM’s highly skilled and professional staff, there is no

cargo challenge that cannot be met. ZIM’s customers enjoy

the peace of mind that comes from working with a carrier that

offers proven shipping solutions, including out-of-gauge cargo,

perishable goods, or hazardous cargo.

ZIM remains at the forefront of the carrier industry by rapidly

adapting to commercial developments and emerging markets.

This approach is an integral part of ZIM’s working philosophy,

and drives the expansion of our operations in established East-

West trade routes, while we pursue the development of our

carrier services in the world’s newest, most dynamic markets.

When your cargo is far from home, it is close to ZIM’s heart.

At ZIM, we view every customer as a valued individual. As

a ZIM customer, you will enjoy the benefits of working with a

carrier that is large enough to provide shipping services in every

corner of the world, yet small enough to give you the personal

attention you deserve.

ZIM offers comprehensive account management services

delivered by your personal service representative, a professional

shipping expert dedicated to anticipating and meeting your

needs. This individual approach ensures that you receive first-

class, fully customized services, handled entirely by ZIM, so you

are free to focus on your business.

ZIM is 32 percent owned by an Israeli corporation and

68 percent owned by financial institutions and shipowners. ZIM

shareholders are committed to helping this veteran shipping

company fulfill its mission. As we face the future, ZIM is ideally

positioned to successfully navigate the global shipping market

while remaining dedicated to the delivery of the highest level of

customer service.

ZIM — Delivering on Our Promise

GLOBAL REACH, LOCAL TOUCH

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www.joc.com THE JOURNAL OF COMMERCE 41

technologies, Hong Kong-based CargoSmart Limited helps

customers unlock business value in the age of digitization.

“The company monitors a complex interplay of sea-traffic

metrics, covering 90 percent of the world’s ocean container

traffic, to deliver unprecedented insights for business value

creation,” Chief Commercial Officer Lionel Louie said. Sea

traffic metrics and a scalable platform help provide analytics

and insights for customers.

CargoSmart provides global shipment management

software solutions to enable shippers, consignees, logistics

service providers, non-vessel-operating common carriers

and ocean carriers to improve planning and on-time

deliveries, lower transportation costs and streamline

operations. Clear information can help logistics managers

tackle port congestion, service changes or labor disruptions.

The company’s offerings include analyses of live sea-traffic

to optimize sailing

schedule data; a daily

Schedule Delay Alert;

a Private Label Sailing

Schedule solution

for non-vessel-

operating common

carriers; a sailing

schedules mobile

application with

reliability rankings;

a segmentable monthly Carrier Performance Insight report;

and the “Innovating” newsletter that reports, for example,

cargo delays by port. From July to September 2014, there

were nearly 22.5 million global schedule changes, 57 percent

of which occurred at Asian ports. Among Asian ports,

Singapore had the most schedule changes.

Products offering better real schedule visibility are

extremely beneficial to the enormous Asian market,

helping shippers improve planning and bookings.

Comparing performance by port, port-pair, and carrier

can be particularly useful. “In such competitive Asian

markets, carriers, ports and terminals need to find ways

to differentiate their services,” Louie said. CargoSmart

is helping to fill visibility gaps in the ocean portion of

shippers’ supply chains, especially during peak season and

times of high port congestion.

Innovative products and practices are being propagated,

in part, by the sheer size and volume of business moving

through Asian hubs. The global shipping industry stands to

gain by riding the coattails of ports, carriers and shippers in

Asian markets – the early adopters who have leveraged their

opportunities and are set for success.

Contact Lori Musser at lori.musser@comcast.net.

Clear information can help logistics

managers tackle port congestion,

service changes or labor disruptions.

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