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January 9, 2013
We understand that economics have a financial snow ball effect on global industries, but it’s really interesting to note how a simple product launch, such as the iPhone 5, can send air cargo into the profitable margin, and help the industry bounce back from some serious recession repercussions.
Economic Injection
The Apple product has provided much needed relief to the air freight industry which suffered a huge decrease in product volumes and rates during the tough economic period. Air cargo transport companies have seen a dramatic increase in their shipments since the demand for Apple iPhones, laptops, tablets and desktop computers has dramatically escalated.
Apple favours the use or air cargo services to transport their products across the globe, which has also helped to drastically improve the prices of air freight as they were escalating as companies needed to still cover costs, but with less income. July 2009 showed the worst returns on air cargo prices, and most recently in July 2012, but with the newest Apple products once again flooding the global market, stockists everywhere are placing urgent orders.
It’s most interesting when statistics show that some companies have seen a 50% profit increase when new product launches are advertised, not only by Apple but by many technological suppliers such as Samsung and Phillips.
Air cargo is by far the preferred mode of shipping as it’s faster in speed, as well as clearing and forwarding, however shipping companies should not put all their eggs in one basket. Apple has the means to afford air cargo as and when it is required, but not all companies are flush enough to ship products at the drop of a hat, and for this reason the shipping and air cargo community are starting to adopt a new approaching to their rates and pricing.
As with the behavioural patterns shown in tech enthusiasts where they rush to buy one product, and then cool down on the next one, so too does the air cargo and shipping industry has to roll with the economic ebbs and waves in the current economic climate.
December 13, 2012
On its maiden voyage at the most important time of the year, the world’s largest container ship docked in Southampton with tons of Christmas presents loaded on it. The massive floating warehouse measures a staggering 396 meters in length, which is the size of four football fields – sailed from China and will be making stops at several countries, with Britain being its first.
Santa’s Water Transport
The massive steel containers hold many delicious gifts all the way from the East. The latest televisions, furniture, clothing, books, power tools and just about every other conceivable gift that Santa has been required to drop off is hidden away in the massive containers.
The sheer size of the Marco Polo is a great source of pride for the company that launched the world’s largest container ship. It’s so big that for some people it defies words. As the largest man-made seafaring delivery “van” in the world, it’s almost hard to imagine unless you see it. Longer than the impressive Queen Mary 2 superliner, and four times longer than the mammoth A380 Airbus, this baby takes the breath away. As narrow boat builders, tug boat operators and even oil rig captains look on they are flabbergasted at the size of the Marco Polo.
Because the container ship’s cargo is so precious and holds many anticipated Christmas gifts, the largest container ship in the world will set sail for Hamburg, Germany where it will continue to spread the joy with its cargo.
One has to wonder if harbours and docks need to make changes as the giants of the sea will eventually become commonplace across the world and docked in ports. How does one park the largest container ship in the world? How long do boat repairs take? How long does it take to walk from one end to the other? So many questions.
August 1, 2012
The Chinese have expressed an interest in exploring the polar caps and with the recent construction of China’s first polar icebreaker the wheels have been set in motion of the first exploration. The melting caps have opened waterways that will allow the icebreaker the ability to move freely through the Arctic Ocean.
The Cool Ship
The 8,000 ton ship will have the ability to break through 1.5 metres of ice and work through the polar waterways which serve as short cuts between Europe and China allowing it to explore areas that are known for being rich in oil. This new icebreaker is expected to greatly boost the country’s exploration capacities.
Designed and still being manufactured by a Finnish company, construction workers in their orange hi vis vests and orange hi vis
trousers can be seen working on the hull of the huge ship. The polar icebreaker is set to make its debut in 2014 and will join another polar ship purchased from the Ukraine. Now that the icebreaker is in production the Chinese government has applied for Arctic observation licence that will allow it to act as an observer of the highly sensitive and protected region.
Many countries on the Arctic council need to meet to discuss the matter of the licence, but there should not be a large issue if the government is purely using the polar icebreaker to make way through the region and simply observe the Arctic.
February 17, 2012
When it comes to sea freight, there are many interesting aspects that contribute to the overall route of the trip. From the different ports of call, interesting shipping rules of the sea and of course the routes they take. There are a few key sea freight shipping canals that shape the world of freight and shipping as we know it; imagine a world where imports and exports took months longer than they currently do. Foreign aid, oil and other key industries would be hampered incredibly by ineffective slow turnover. Let’s look at the key sea freight transport canals that, in some cases, half shipping duration in half.
The Panama Canal completely cuts out an entire continent by connecting the Atlantic Ocean to the Pacific Ocean via the Caribbean Sea. Work began on the Panama Canal in 1880 and was completed thirty-four years later in 1914. This allowed sea freight containers the avoidance of the incredibly choppy and dangerous Strait of Magellan which claimed many ships over history. Ironically ownership of the Panama Canal has slipped from Columbia to France to American and only became Panama’s in 1999. In fact the majority of the economy of the country is generated by the sea freight cargo taxes that are generated by the Panama Canal. A world without the Panama Canal would exclude many economies in South America as well as make trips from the Atlantic to the Pacific dangerous.
The Suez Canal, also known as ‘The Highway to India’ is probably the most important contested canal route for sea freight in history. Opened in 1869 after a decade of construction, it linked the Mediterranean with the Indian Ocean artificially and sliced off months of travel time for sea freight. Time is said to be the biggest cost of sea freight in the UK since the major trade partners are usually on the other side of the world. The Suez Canal is interesting in its history which predates its own existence by centuries; records state that ancient Egyptians had planned a similar canal many centuries before it was eventually completed. Because of the vast importance of the canal, there is an international treaty stating that at no time, during war or peace, will usage of the canal be blocked no matter what country or organisation plans to use it.
There are many more key sea freight routes that exist, but these two canals are by far the most important that the world has in operation today. We’re sure that the future of these canals is secure because their importance is universal to sea freight regardless of nation.
January 27, 2012
The business of oil transportation is an interesting one; how can we transport many hundreds of tonnes of oil a year without fixed piping. The answer comes in the form of the biggest ships ever to cargo goods, the Batillus-Class Supertankers. By far the biggest ships in the world by gross tonnage, the line of ships were the goliaths of the ocean and among the first UULC (Ultra Large Crude Carriers) ships operating in the world. The Batillus-Class supertankers were a family of mammoth oil tankers that have since been decommissioned. Batillus was the first in the family, being built in 1976 for the French branch of Shell Oil and constructed by Chantiers de I’Atlantique. The circumstances surrounding its construction were interesting during a volatile time for freight shipping; the ‘oil shock’ as a result of the Yom Kippur War almost saw the supertanker scrapped as a project altogether. The contract to build the Batillus was signed on April 6th 1971 and by the time of the war in 1973 there was serious doubt the biggest cargo ships could use their full potential since supply of oil dropped dramatically. However Shell decided to continue construction as work commitments at the shipyard were already so far along that any cancellation would put thousands of men out of work and extreme financial stress on the shipyard.
In the same year, sister ship Bellamya was also built along the same circumstances and had a length of 412 metres which is staggering; putting it into context the biggest cruise ships in the world average at most 360 metres long. Following a year later the last two ships of the family were made, Pierre Guillaumat and Prairial who have both since been decommissioned and scraped. While sea freight demand is high, the biggest ships of all time are usually bigger than is practical. The Batillus-class ships couldn’t traverse the Suez and Panama Canals, couldn’t enter most docks having to anchor off-shore on rigs and were often idling without cargo for months. Still these modern marvels are something truly amazing to behold; their sheer size and record as the biggest ships in the world make them something special for the history books.