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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.
June 25, 2012
The dimensions and contour is almost incomprehensible. It is most difficult to not heed her imposing presence. Blue Marlin ship is the globe’s largest seagoing carrier across the oceans. The sturdy carrier can transport an oil rig, or 22 barges, or a couple of submarines, even a couple of aircraft carriers. The semi-submersible was built purely for the transport of these massive constructs.
She is the biggest powerhouse ship on the ocean. Weighing an impressive 60,000 tonnes the Blue Marlin can load and carry additional 75,000 tonnes with absolute ease. At just over 700 feet in length and 149 in depth, the Marlin’s width is the most impressive. She measures two football fields in width and which allows her to carry mammoth structures such as rigs and up to 22 barges. Apparently a larger carrier ship is set to be launched at the end of 2012 and she will be the newest member of the Blue Marlin team. Designed to out-do the Marlin is most ways, she will carry a maximum weight of 110,000 tonnes. Now that’s impressive, but one still cannot dispute the legend that is the current Blue Marlin. Her freight and shipping capabilities are powerful and extremely dramatic.
The Blue Marlin has a crew of 24 because it takes some seriously experienced deck hands to ensure her colossal cargo is placed and
secured perfectly and safely each and every single time. It requires experienced men to ensure that the massive semi-submersible does exactly what she was designed for. Her ballast tanks fill with water, which then allows the Blue Marlin to perform a controlled sink to a depth of 15 metres. The cargo is then moved across the water onto the back on the Marlin. The water is pumped out of the ballast tanks and the ship rises so the cargo sits on top of the water, making it is ready for transportation. The crew’s job is extremely intensive and their responsibilities are heightened according to the risk and cargo their ship carries. The position of the cargo in relation to the ship is critically important.
The largest structure transported by the Blue Marlin was BP’s 60,000 tonne oil rig, still considered the largest offshore structure in the world. After loading the rig was transported all the way from Korea to the Gulf of Mexico. Clearly air freight forwarders would not work for this cargo shipment as it would have to be done in many pieces and many different trips. The structure stretched was so big stretched wider than the ship which means it stood out 55 metres on both sides. This is not the only mammoth shipment transported on the back of the imposing ship.
The Blue Marlin was commissioned by the US Navy to transport their USS Cole back to the States after it was damaged bombing attack during the Iraqi war. For the Marlin this was an easily loaded cargo. The stricken craft was then shipped back to its United States base. Now, as the bigger sister of the Blue Marlin makes its debut at the end of 2012, we cannot wait to see what she will carry.
April 5, 2012
Breaking news for Transnet SA, the port operator has announced plans to invest R33bn in port infrastructure over the next seven years. Aiming to increase economic growth and increase terminal import export efficiencies, Transnet has won the support of the ANC.
Jacob Zuma announced Transnet’s developmental strategies in his budget speech. Focussing specifically on the recently launched Port of Ngqura, just outside of Port Elizabeth, Zuma also spoke about Transnet’s plans to expand on SA’s largest port. The Durban Container Terminal will be refurbished with state-of-the-art equipment and all-round infrastructure upgrades.
In a move to make South African ports more competitive, more than 50% of the financial investment will be spent on expansion projects in an effort to make overall capacity meet the rising demand. The remainder of the money will go towards sustainable capital in a bid to uphold service delivery by accelerating operating norms. More than just a conceptual investment, Transnet will devote a percentage of their budget to replacing old equipment as well as scheduling maintenance for existing equipment.
Transnet CEO Brian Molefe is excited about the corporation’s seven-year plan to increase terminal efficiencies, as well as the government’s approval of the proposed budget. The proposed face-lift of sea freight shipping industry shows the progression of South African politics and its ability to look towards the future.
South African fruit exporters are turning to air freight forwarding companies and services to keep up to schedule with contractual demands and deadlines. Sea freight has suffered an enormously slow period in recent times due to the Transnet strike that is currently taking place at ports around South Africa.