Latest news with #Maersk
South China Morning Post
6 days ago
- Business
- South China Morning Post
Maersk downplays hit from US port fees as doubts swirl over anti-China plan
When the United States unveiled plans to charge hefty fees to any China-built or operated ship entering an American port earlier this year, the shipping industry appeared to face a stark choice: cut Chinese vessels out of their fleets or see their costs soar. But months ahead of the charges coming into force, the global shipping giant Maersk insists that it will be able to avoid making that decision, casting further doubt over the US' ability to curtail the dominance of China's shipbuilders. Maersk will not raise prices for its clients due to the US port fees; nor will it exclude Chinese shipyards and shipbuilders from consideration when ordering future vessels, according to Silvia Ding, the company's Greater China president. 'Maersk has 10 per cent of its fleet that will be subject to the port fee, and we can reassign our vessels to avoid the extra cost,' she told the Post on Wednesday on the sidelines of the 2025 China International Supply Chain Expo in Beijing. Ding added that Maersk would consider multiple factors when placing shipbuilding orders, including cost and technical requirements. The comments are the latest sign that the port fees – which are due to come into force in October – may have a more limited impact than some initially thought, after several moves by US officials to scale back the policy amid industry backlash.
The Hindu
16-07-2025
- Business
- The Hindu
How is global shipping trying to decarbonise?
The story so far: Global shipping is on course towards decarbonisation by 2040-50. This represents a huge opportunity for India. Merchant ships largely use Very Low Sulphur Fuel Oil (VLSFO), diesel, and methane gas stored in liquid form as fuel. LNG-powered engines with their higher efficiency of some five percentage points are likely to be a transition fuel before shipping moves to green fuels such as green ammonia, green or e-methanol and biofuels by 2040 and net zero thereon. How are green fuels produced? Green hydrogen is made from the electrolysis of water using renewable power. Shipping will not use hydrogen directly because of issues with storage and transportation of hydrogen, a highly volatile fuel. Green ammonia, made from green hydrogen and nitrogen, is more stable. The government is also encouraging green ammonia production in India since it can substitute LNG imports in making fertilizers. Green methanol is made from green hydrogen and carbon dioxide obtained from industrial sources. What are the preferred fuels? Shipping, however, is generally a conservative industry. New technology adoption is relatively slow. Ammonia engines are a novelty, so shipping is going first for green methanol, which emits some 10% of carbon dioxide, and later green ammonia, which emits no greenhouse gas. However, ammonia use requires extensive processes onboard. Besides a storage tank and tweaks to the engine and fuel handling system, green methanol is almost a drop-in replacement for VLSFO and is stored as liquid in ambient temperature unlike green ammonia or even LNG. Already, more than 360 ships capable of operating on methanol are either in service or in order. Major container shipping companies such as Maersk, CMA, CGM and Evergreen are backing methanol. A 100% sustainable e-methanol as bunker fuel costs $1,950 per tonne (of VLSFO equivalent) in February in Singapore, while VLSFO averaged at $560 per tonne. This pricing discrepancy is primarily caused by the present price of renewable electricity, with every tonne of green e-methanol using 10-11 MWh of power, and the heavy upfront capital cost for electrolyser facilities. Estimates suggest that demand for green methanol would surpass 14 million tonnes by 2028, whereas the projected supply is merely in the order of 11 million tonnes, creating additional price pressures. What is Indian shipping's decarbonisation plans? India has committed to decarbonising its domestic shipping. Plans have been made for supporting domestic container ships using green fuels as well as creating green fuel bunkering points such as at the Tuticorin V.O. Chidambaranar port and Kandla. The government is looking at producing and supplying green fuels to Singapore, which is a fuelling station accounting for nearly one-fourth of all global ship fuelling. Singapore has committed to being a green fuels supplier and would require therefore tens of millions of tonnes of green fuels. Given that India has the land and expertise for solar power, it can aspire to be a major supplier of green fuels to global shipping. How can India do it? Making a marine green fuels production hub has some challenges. Solar panels and electrolysers to make green hydrogen need to be imported. India's solar energy revolution, however, is a model of how sovereign guarantees and policy strategic frameworks can drive the adoption of green fuels. From 2014 to 2025, India's solar capacity grew from 2.82 GW to 105 GW. This achievement was made through the convergence of sovereign guarantees, off-take assurance, and strengthened supply chain support. Sovereign guarantees have emerged as a powerful de-risking mechanism for green methanol investments that can considerably reduce prices. These government-backed assurances can fundamentally transform project economics by enabling access to international capital markets at significantly lower interest rates. Innovative financial instruments are needed for an at to scale green methanol rollout. Production-linked incentive (PLI) schemes for electrolysers can relieve supply chain bottlenecks by territorialising value chains and lessening transportation costs of raw materials. Carbon capture, utilisation, and storage (CCUS) incentives are also essential, as they increase the feasibility of the production of green methanol from sequestered CO2. Further, the government's aggressive push in creating 1.5 GW of local electrolyser manufacturing capacity and growing industrial CO2 sources (from steel and cement industries) positions India strategically to develop integrated green fuel hubs. Multilateral development banks offer financing at rates as low as 4%, as opposed to 11-12% by domestic lenders, and they can be leveraged. How can green fuels help restart Indian shipowning and shipbuilding? The government's move to inject demand-side support for shipbuilders, along with incentives for foreign cooperation, should spur economies of scale and attract global shipbuilders to the country. Partnerships with overseas shipbuilders from South Korea and Japan are being pursued to support India's shipbuilding strength. The strategy is to support new builds and retrofit current ships for green fuel compatibility. India has pledged $10 billion to support the purchase of over 110 ships. Government can provide incentives so 10-20% of these are green fuel-capable, built in Indian shipyards, and are Indian-flagged.
The Hindu
12-07-2025
- Business
- The Hindu
Vizhinjam Seaport marks first anniversary; second phase extension to begin by September
It was business as usual at the Vizhinjam International Seaport as the first deep-water container transshipment port in India celebrated its first anniversary of the commercial berthing of the maiden mother ship, MV San Fernando, owned by SFL Corporation Ltd. and chartered by Maersk (AP Moller Group), Denmark, carrying cargo from the Xiamen Port in China, on Saturday (July 12, 2025) Although the formal commercial commissioning of the port took place on December 3, 2024, the port began its limited-scale operations on July 12, 2024, after a ceremonial reception for the first mother vessel. In just one year, Vizhinjam emerged as a symbol of India's maritime might and technological and infrastructural leap by handling around 395 ships, including 23 ultra-large container vessels—most notably, MSC Irina, the world's largest container ship, which docked in India for the very first time—and handling 8.4 lakh TEUs (twenty-foot equivalent units) of cargo, scripting a new milestone in the global port development benchmarks. This underscores the prowess of the Vizhinjam, as it has become one of the few ports globally to operate at full capacity within months of launch, a rare achievement. Achieving 100% capacity utilisation within a few months of commencing commercial operations, the Adani Vizhinjam Ports Private Limited (AVPPL), which developed the port as a Public-Private Partnership (PPP) with the State government, is set to undertake the second and third phase development of the port by the end of September or the beginning of October. As part of the expansion of the project, the breakwater of the port will be extended by 1 km from the existing 3 km-long breakwater structure. Additionally, the berth in the port will be extended by 1.2 km from the existing 800 meters, along with the development of container yards and related infrastructure. Materials required for the port work have already been procured, and the work on the second and third phases, for which the port concessionaire will make an investment of about ₹10,000 crore, once the Arabian Sea becomes calm after the peak monsoon season, said sources. The port developer would also increase the number of cranes from the current 32 to 90, including 20 ship-to-shore cranes. The expansion of berth will allow the port to facilitate the berthing of five mother vessels at a time from the existing two. The port has already created 2000 employment opportunities and is expected to create more employment as it is set to grow into the gateway to India's maritime supremacy—anchoring the country's vision of becoming a global logistics powerhouse. However, one year into operation, the port could not start the EXIM trade from here due to a lack of road and rail connectivity to the port, which is the main shortcoming of the port now. As per the existing schedule, the rail and road connectivity will be completed by 2028, although a road being developed from the port concessionaire to connect the port with the National Highway is expected to be completed in three months. The full potential of the Vizhinjam port can be tapped for the EXIM community when freight transport reaches the point where it can be transported by land and rail from the port. At present, the port only facilitates transshipment of cargo from here by sea.
Arabian Post
04-07-2025
- Business
- Arabian Post
Saudi Post–Maersk tie-up gains early momentum in Jeddah logistics hub
Arabian Post Staff -Dubai Saudi Arabia's burgeoning e‑commerce sector has taken a strategic leap forward as the landmark partnership between Maersk Saudi Arabia and Saudi Post transitions from agreement to action. Evidence is already emerging that this alliance—anchored by Maersk's newly launched Integrated Logistics Park in Jeddah—is beginning to streamline the kingdom's supply chains and attract international players. Operations in Jeddah have officially begun, with Maersk overseeing global transport, bonded warehousing, and origin-end logistics, while SPL manages express customs clearance and last-mile delivery domestically. The MoU, signed on 3 July 2025, outlines joint digital integration, combined marketing, coordinated customer service and operational efficiency. ADVERTISEMENT Industry sources suggest that several multinational online retailers are in advanced talks to leverage the new gateway. Although specific names have been withheld, analysts view the integrated model as particularly attractive to Asia‑based brands seeking fast, low‑cost market entry into Saudi Arabia and the wider Gulf Cooperation Council. Experts highlight that Maersk's global reach combined with Saudi Post's local footprint addresses major bottlenecks in cross-border trade—namely customs delays and fragmented distribution networks. SPL's national infrastructure, originally developed to support Vision 2030's economic diversification goals, now aligns seamlessly with Maersk's logistics corridors. Karsten Kildahl, Maersk's Chief Commercial Officer, previously noted that global supply chains remain unpredictable, and enhanced visibility and resilience are crucial for upstream customers. This partnership directly supports those objectives via real‑time digital tracking, automated handovers, and unified service teams. Market response has been swift. Regional logistics analysts report a 15% increase in inbound parcel volumes through Jeddah's port cluster in the past month compared to the same period last year. While other factors—such as seasonal demand shifts—are at play, the increase aligns with the ramp‑up of cross-border operations facilitated by the Maersk–SPL alliance. Customs officials in Jeddah confirm expedited clearances under a 'premium e‑commerce lane' established within the SPL framework. They say this streamlining has shaved several days off processing times for inbound B2C shipments, helping foreign brands meet tight delivery schedules. Saudi Post's International Business Sales Director, Rouni Saad, stated the arrangement 'is pivotal in streamlining cross‑border e‑commerce flows to and from the Kingdom … enhancing connectivity, reliability and growth opportunities across the region'. Maersk's Ahmed Al Olaby added that combined networks would meet the growing demand for efficient fulfilment by global players entering or expanding in the Saudi market. Consultants note that Saudi Arabia is now positioned to compete more effectively with regional hubs such as Dubai, which has long served as the GCC's principal logistics centre. With the integrated infrastructure online, analysts predict intra‑GCC e‑commerce flows will re‑route through Jeddah over the next six to twelve months. The alliance also aligns with Saudi Vision 2030, reinforcing the kingdom's commitment to modernise its logistics backbone. By linking global ocean routes with domestic delivery channels, the partnership promises smoother, faster access to consumers in a market anticipated to grow double‑digit annually in e‑commerce sales. However, questions remain around digital interoperability. The MoU commits to systems integration, but execution will depend on effective collaboration between both entities' IT architectures. Some industry insiders stress the need for standardised APIs and seamless data sharing to avoid fragmentation. Scaling services beyond major urban centres, and replicating integration in other GCC markets, pose additional challenges. Achieving cohesive bonded fulfilment across borders demands regulatory alignment and bilateral coordination.
Yahoo
03-07-2025
- Business
- Yahoo
US container import tariffs averaging 21%, says Maersk
Importers are paying an effective 21% tariff on all containerized imports entering the United States, the world's second-largest ocean line said. That's less than half the rate of the peak average earlier this year, Maersk said Wednesday in a market update. 'On average, companies are currently paying an effective average tariff rate of approximately 21% relative to container load on all U.S. imports, according to Maersk's container-weighted effective average tariff rate metric,' the company said. 'At its peak, shortly after April 2, the average effective rate was 54%.' China and the U.S. announced a 90-day pause in their escalating tariff fight April 9. That pause ends July 9, and some extend to next month, but it's unclear how many new trade agreements Washington will complete by then, or whether tariffs will return to previous levels. Washington has come to basic terms on trade deals with China, Vietnam, and Great Britain. 'Visibility has worsened and trade barriers have increased since the U.S. formally announced its tariff package to the world on April 2,' Denmark-based Maersk (OTC: AMKBY) said. 'For now, most country-specific import tariffs are paused while long-term deals are being negotiated, with deadlines coming up in July and August. However, there are still trade tariffs impacting how companies move their cargo, particularly between the U.S. and China.' Ocean container rates from China to U.S. West Coast ports have fallen sharply in recent weeks on weaker demand following an initial surge as liner operators rushed to restore vessel capacity during the tariff pause. At the same time, the SONAR Inbound Ocean TEU Volume Index as of July 3 was 2307.46, compared to a high mark of 2693.35 in June, 2021. Some U.S. companies in apparel and fashion have shifted their sourcing, and have reached 'single-digit' dependency on Chinese manufacturing, said Maersk Chief Commercial Officer Karsten Kildahl, in the update. '[O]ther commodities like home improvements have a significantly higher level of Chinese manufacturing due to the nature of the goods. This is not just a short-term tactical reaction to escalating geopolitical tensions, but rather a long-term strategic move to future-proof supply chains and remain resilient.' Global container demand grew 6.1% in the first quarter, comparable to previous quarters. Maersk said preliminary second quarter figures will reveal a high degree of volatility triggered by tariff announcements. The company in May said global container demand would be within a wide range of –1% to 4% for all of 2025. The company added that tensions in the Middle East continue to make the Red Sea-Suez Canal an elevated security risk. Maersk said its Gemini services with Hapag-Lloyd (OTC: HLAGF) had a 90.9% schedule reliability in May, above its 90% forecast. Find more articles by Stuart Chirls trade outlook improves, container rates — not so much Why 44% fewer cancelled sailings could be [blanking] bad news for SoCal trucking US maritime chief 'not a big fan' of ocean carriers' 'approach' as agency reviews antitrust immunity Drewry: No 'lasting impact' from tariff break as ocean rates fall again The post US container import tariffs averaging 21%, says Maersk appeared first on FreightWaves.
