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Archives for March 2021

GEODIS recognized as Core Carrier of Arkema China in Asia-Pacific

March 30, 2021 by

At the 2021 Arkema China Carrier Annual Conference held in Shanghai, China, GEODIS received the award of “Core Carrier of Arkema China”. The Annual Conference is held by Arkema to acknowledge and celebrate the company’s accomplishments in 2020, as well as to brainstorm ideas for future developments and innovative solutions in 2021.

In ensuring operational optimization in the customer’s supply chain, GEODIS APAC Regional President and CEO, Onno Boots said, “GEODIS is proud to be a partner of Arkema. This award is an important recognition and a key milestone for GEODIS moving forward in 2021.”


On the left is Ivan Siew, MD of GEODIS in China and on the right Thomas Gatimel, Global Supply Chain Optimization Director of Arkema

GEODIS currently manages the customs clearances for Arkema’s general cargo, as well as pre-carriage and on-carriage. Besides working with its nominated transport suppliers in optimizing its supply chain, GEODIS actively partners with Arkema to ensure the effective management of these dedicated supplier’s performance, including the responsibility of the adherence to agreed standards via an auditing process. 

Among ongoing projects in 2021 GEODIS is participating in a FCL[1] freight sourcing exercise for non-core destinations. This is estimated to encompass 1000TEUs of export volume in the Asia-Pacific region.

___________

[1] Full Container Load

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #6 in Europe and #7 worldwide. In 2020, GEODIS accounted for over 41,000 employees globally and generated €8.3 billion in sales.

Filed Under: GEODIS

Vaccine supply under threat from theft and counterfeits

March 29, 2021 by

Having warned of various threats to the COVID-19 vaccines supply chain late last year, international freight insurer TT Club is now reporting a spate of disruptions to effective distribution across the globe.

London, 29th March, 2021

All actors in the global supply chain must be increasingly alert to a range of risks due to criminal activity targeting vaccine supply.  From theft and illegal sale of authentic vaccines to counterfeiting, substitution with fake pharmaceuticals and contamination, the threats posed by criminals attempting to take advantage of this very high -value cargo, are widespread.

Mike Yarwood, TT Club’s MD Loss Prevention, warns the risks should not be under-estimated, “It is probable that the market for counterfeit pharmaceuticals is worth US$400 billion a year and the World Health Organisation (WHO) estimates that up to 1 million people die annually from counterfeited drugs,” he points out.

“The current and future supply chain challenge to distribute the COVID-19 vaccines, in all their forms, from various countries of production, will mean that these figures are likely to grow.  Multiple incidents have already been reported,” said Yarwood.  

In the Netherlands, upon opening the trailer doors of a full truck load of pharmaceutical products, the consignee was faced with ten male migrants who had been hiding in the trailer. The cargo was contaminated and destroyed.  While in the UK, three arrests were made following the theft from a truck of COVID-19 lateral flow testing kits worth over UK£100,000.

Recently two counterfeiting organisations focusing on COVID-19 vaccines were successfully broken up. In one case more than 3,000 saline filled vials were being sold as authentic vaccines and seized in Chinese police raids. Another report noted that 400 vials, the equivalent of around 2,400 doses, were discovered as containing fake vaccine in a warehouse in Gauteng, South Africa.  While in both cases a quantity of counterfeit goods was seized and arrests made, it remains unclear what volume of fakes had already been manufactured and shipped. 

Latin America is the latest region to report extensive serious malpractice.  In Mexico a variety of Pfizer vaccines and others from three Chinese manufacturers (both genuine and counterfeit) have been offered for sale at up to US$1200 per dose.  Many have been subsequently administered.  And in Brazil, water-filled and empty syringes have been found on the black market.

A range of COVID-19 vaccines have been posted for sale on the dark net. The prices, in Bitcoin, ranging from US$250-300. There is no way to determine whether these vaccines are genuine, or even exist at all, placing potential users at huge risk.

As the WHO and altruistic charitable organisations such as the Gates Foundation, with its Global Alliance for Vaccines and Immunisation (GAVI), strive to ramp up vaccine supply to the poorest nations, there needs to be appropriate investment in the security of the subsequent supply chains, maintaining the integrity of the cargo.

Indeed, TT urges equal attention by all governmental agencies to the end-to-end vaccine supply chain to avert fatal undermining of the substantial R&D efforts globally.

Yarwood concludes, “Should the responsibilities of the pharmaceutical companies and organisations funding the supply, end at the point of production and sale, leaving local governments to manage security through the supply chain? A degree of uncertainty will prevail and security effectiveness differ from region to region. Operators who are called upon to transport, store and deliver such vital supplies therefore must be super vigilant in guarding against loss through theft and the infiltration of fakes into the supply chain.”

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Filed Under: TT Club

EVER GIVEN Successfully Refloated, Normal Transits of Suez Canal Resume

March 29, 2021 by

March 29, 2021 – Evergreen Line is pleased to confirm that EVER GIVEN has been successfully refloated within the Suez Canal at approximately 15:00 March 29 local time. In order for the Canal to resume normal operation, the vessel is leaving the grounding site with assistance of tugboats.

The chartered vessel will be repositioned to the Great Bitter Lake in the Canal for an inspection of its seaworthiness. The outcome of that inspection will determine whether the ship can resume its scheduled service. Once the inspection is finalized, decisions will be made regarding arrangements for cargo currently on board.

We are most grateful to the Suez Canal Authority and all the concerned parties for their assistance and support through this difficult and unfortunate situation. We would also like to express our deepest appreciation to the crew who remain steadfast in their posts as well as the salvage experts and dredging team for their professionalism and relentless efforts over the past 6 days toward securing this outcome.

Evergreen will coordinate with the shipowner to deal with subsequent matters after the shipowner and other concerned parties complete investigation reports into the incident.

EVER GIVEN is a 20,000 TEU-class container ship, currently leased by Evergreen Marine Corp. under a time charter agreement. The ship is deployed on a Far East-Europe service route.

Filed Under: Evergreen Line

Ever Given Situation Report

March 25, 2021 by

As of 07:00 Egypt time Thursday 25th March Evergreen can confirm the following:

After 48 hours of proactive efforts to re-float Ever Given, the time chartered vessel’s grounding situation has not been resolved.

The shipowner confirms that the crew, ship and cargo are all safe, and no marine pollution has materialized. There had been no black out resulting in loss of power prior to the ship’s grounding.

The shipowner has appointed two maritime professional rescue teams from the Netherlands (Smit Salvage) and Japan (Nippon Salvage) to attend the ship. These teams will be working with the Captain and the Suez Canal Authority to design a more effective plan for refloating the vessel as soon as possible.

Evergreen Line will continue to coordinate with the shipowner and Suez Canal Authority to deal with the situation with the utmost urgency, ensuring the resumption of the voyage as soon as possible and to mitigate the effects of the incident.

As the vessel is chartered, the responsibility for the expense incurred in the recovery operation; third party liability and the cost of repair (if any) is the owners.

A further up-date on the situation will be made as material information becomes available.

Filed Under: Evergreen Line

GEODIS acknowledged as having the ‘Best HR Strategy In Line With Business’ in Asia-Pacific

March 23, 2021 by

The ‘Best HR Strategy In Line With Business’ category award was presented to GEODIS during the Global Best Employer Brands 2021 awards ceremony at the 29th edition of the World HRD Congress.

The Global Best Employer Brands 2021 celebrates the efforts of organizations and individuals for having the best practices. Particularly, ‘Best HR Strategy In Line with Business’ recognizes the importance of aligning Human Resources (HR) with the organization’s business strategy to boost performance and engagement.

(from left to right): Shweta Navani, Anne Tan, Marc Khoo, Joel Shoo

GEODIS Asia-Pacific (APAC) embarked on a major transformation and growth journey 2 years ago.  An ambitious strategy and program were launched in line with the Group’s “Ambition 2023” goals, anchored in the guiding principle of “Led By Clients, Powered By Data, Driven By People”. This transformation program aims to pivot the business model to a much more solutions-based one and double the size of GEODIS in APAC within 5 years.

The GEODIS HR Strategy in APAC was created to support this end goal and built around four key pillars: Building a Talent pipeline; Accelerating Growth; Managing Performance and Creating An Inspiring Workforce.  HR has been working closely with all departments to ensure that within the time-scale, the right competencies and talent pool are in place, along with the appropriate development and training to support employees in their new and/or expanded roles, including critical change management that is key to a major transformation. HR has also focused on building an environment that is collaborative and engaging, in order to swiftly reach at the critical tipping point for such a successful transformation.   

Anne Tan, GEODIS’ Head of Human Resources in APAC said, “People are truly our most important resources and assets. As they are the ones implementing the business strategy on a day-to-day basis, motivating them and ensuring that our policies and processes are in place to enable them to achieve the business strategy, remains fundamental.”

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #6 in Europe and #7 worldwide. In 2020, GEODIS accounted for over 41,000 employees globally and generated €8.3 billion in sales.

Filed Under: GEODIS

Dachser expansion in Magdeburg

March 22, 2021 by

Kempten/Magdeburg, March 16, 2021 – Logistics provider Dachser began operations at a new distribution centre at its Magdeburg location in mid-February. At the 40,000 m2 facility, the family-owned company provides logistics services for its customer Globus Baumarkt and other companies in the region. The expansion created 40 new jobs.

Dachser’s new facility comprises 84,000 m2 and includes two warehouses with a total logistics area of 40,000 m2. One of the warehouses has been specifically designed for the storage and picking of food and non-food items and covers approximately 8,000 m2. The second warehouse for contract logistics activities has an area of 32,000 m2. Through the expansion, the office and social space at Dachser’s Magdeburg distribution center now cover some 1,880 m2. There is also an additional 3,000 m2 of outdoor storage adjacent to the site. Including the distribution centre 40 kilometres away in Oschersleben, Dachser’s Magdeburg logistics centre now provides 55,000 m2 for logistics operations in total, and space to accommodate some 80,000 pallets.

“At our new facility, we furnish warehousing and distribution services for our customer Globus Baumarkt as well as well-known regional and global manufacturers and retailers of industrial goods and food products,” explains Christian Schäckel, General Manager of the Magdeburg logistics centre. “On their behalf, our employees implement a future-oriented logistics strategy designed to help them grow.” 

A strong partner in the region for over 25 years

Dachser has been operating in the Magdeburg region for over 25 years. Some 170 employees are responsible for ensuring the smooth execution of logistics services. “In addition to classic transport services, we also handle storage of industrial goods and food products and provide value-added services such as display-build and finishing,” Schäckel says. Dachser’s Magdeburg facilities are located in the Gewerbegebiet Nord commercial zone in the north of the region, providing convenient access to the A2 and A14 highways. From Magdeburg, the logistics provider serves destinations such as Belgium, the Netherlands, and Austria with daily departures. Dachser’s Air & Sea Logistics branch in Langenhagen, near Hanover, connects the Magdeburg logistics centre to all the global markets.

About Dachser

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 31,000 employees at 393 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 5.7 billion in 2019. That same year, the logistics provider handled a total of 80.6 million shipments weighing 41.0 million metric tons. Country organisations represent Dachser in 44 countries. 

For more information about Dachser, please visit www.dachser.com

Filed Under: Dachser UK

TT Club highlights significant changes to RHA’s Conditions of Carriage

March 22, 2021 by

Freight transport liability insurer TT Club provides important insight to recent changes to the UK’s Road Haulage association’s (RHA) Conditions of Carriage (2020) that have ramifications to carriers’ liabilities.

London, 17 March, 2021

The latest version of the RHA conditions of carriage (2020)* were released last year, effective 1 September. TT highlights changes to three clauses in particular: protecting carriers’ obligations if delays in transit result from the customer’s omission, clarifying the issue of liabilities for loading and unloading cargo from the vehicle, and providing a useful definition of ‘commencement of transit’ with its implications on liability in the event of damage or loss prior to that point.

“Although relatively small, these changes can have significant impact on the liabilities sustained by carriers under certain circumstances,” says TT Club’s Mike Yarwood. “Since Brexit, for example, there have been a number of occasions of hauliers arriving at UK ports seeking to cross the EU border without the necessary documentation or permits. Documentary errors, potentially by the customer, cause delay, which if perishable cargoes are involved can result in extensive losses.  Under clause 5 (4) of the new conditions, a carrier has the right to suspend or possibly even terminate the performance of the service, and in addition damages such as loss of business and driver’s wages could be claimed from the customer,” he explained.

TT Club and commercial law firm Hill Dickinson have worked together to outline the important clause changes that effect the customer-carrier contractual relationship.  Hauliers and other stakeholders who incorporate the terms of the earlier, 2009 version are encouraged to alter their own Standard Trading Conditions (STCs) in line with the new provisions.

A further issue clarified in the 2020 conditions is connected to liabilities for loading and unloading cargo from a vehicle. Clause 4 now states that unless otherwise agreed in writing, responsibility for loading cargo onto the vehicle and the unloading of the cargo at the consignee, rests with the customer. Further, the customer is also required to indemnify the carrier from and against all and any loss, damage, death or injury that might arise during such operations. 

Yarwood goes on to profile another clause that has been altered, “TT has recently been active in reporting the increase in theft from warehouse premises, a consequence primarily of pandemic related backlogs and delays.  This includes from loaded trailers awaiting departure.  In this regard, Clause 7 of the new conditions sees a material change to the definition of commencement of transit.  This is defined as after the consignment has left the premises from where the consignment is collected.”

This is of significant assistance to the carrier when no alternative secure parking facility is available enroute to the destination or the driver does not have sufficient driving time to reach a secure parking location.  In the spirit of security, it would now be advantageous from both a liability and a security perspective to leave the loaded trailer at the shipper’s premises until the driver’s hours allow a more seamless delivery option.

TT Club consistently advises carriers to review their STCs on a regular basis in order to maintain control over their risk profile.  In this instance, the RHA have provided a valuable service in up-dating some of the clauses of these conditions of carriage, which it would be wise of carriers to adopt.

*https://www.rha.uk.net/membership/member-benefits/conditions-of-carriage-and-storage

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com

Filed Under: TT Club

American Club experiences a positive 2021 P&I Renewal both Mutual and Fixed Premium sectors see increases in Revenue

March 22, 2021 by

American Hellenic Hull strengthens Balance Sheet and Key Financial Indicators

• Year-on-year annualized income for Club’s mutual P&I business increases by 8% at February 20.

• Year-on-year P&I tonnage increases by 5%.

• Funds under investment generate a 5.4% return for 2020, despite challenging market conditions

• Retained claims for 2020 tracking lower than 2019, but Pool exposures continue to climb.

• Eagle Ocean Marine grows revenue while maintaining solid profitability.

• American Hellenic Hull strengthens balance sheet and key indicators as pricing power persists.

NEW YORK, MARCH 16, 2021: At its meeting conducted virtually from New York last week, the Board of the American Club noted that, despite challenging business conditions, the Club enjoyed a solid performance over
the 2021 P&I renewal season. Both its mutual and fixed premium P&I portfolios performed well while American Hellenic Hull continued to consolidate its market position, gaining further momentum since the beginning of the year.

Year-on-year annualized premium for the Club’s mutual P&I class grew by a little under 8% at February 20, while revenue for its Freight, Demurrage and Defense (FD&D) business increased by over 10%.  Taking into account growth in the Club’s charterers’ business, total income on renewal is projected to be about 8% higher for 2021 by comparison with the previous year.

Premium attributable to renewing P&I entries for 2021 saw an increase, in cash terms, of approximately 5%, a rise in conformity with that ordered by the Board last November.  However, taking into account increases in deductibles, in some cases significant, and changes to other insurance conditions, the overall premium increase, as if expiring terms had applied, was closer to 7.5%.

Tonnage in the Club’s mutual P&I class increased by about 5% year-on-year, to approximately 18 million gt overall.  However, its Freight, Demurrage and Defense (FD&D) entries moved substantially higher in tonnage terms, by nearly 14%, to 12.2 million gt.  In addition, as mentioned above, there was an increase in daily tonnage on risk in regard to the Club’s charterers’ business.

As to the performance of its funds under investment, the Club enjoyed a 5.4% return over the year to December 31, 2020.  Although not as high as the previous year’s earnings, this was nonetheless a creditable result in view of the market uncertainties which characterized the period.

Retained claims for 2020 are emerging more favorably than those for 2019.  The latter year experienced several unusually large exposures below the pooling threshold, but has been able to take some benefit from reinsurance protection as a hedge against further deterioration.  Pool claims for 2020 are developing in an above-trend direction in a manner similar to the experience of 2018 and 2019.  Although the American Club, once again, had no claim on the Pool for its own account during the year, nor has had since 2016, its contributions to pooling continue to form a significant part of the Club’s overall claims exposure.

The American Club’s fixed premium brand, Eagle Ocean Marine (EOM), has continued to make progress into the beginning of 2021.  Premium for the 2020/21 policy period to date has grown by about 10% over the figure for the previous year at the same point, and is forecast to exceed $16.5 million in total for the current facility year, a record.

Aimed at the operators of smaller vessels in local and regional trades, with a substantial footprint in Asia, EOM continues to be a steady contributor to the American Club’s mutual membership, enjoying a cumulative combined ratio of about 75% since inception.  As the fixed premium P&I space continues to undergo transition and realignment, the attraction of EOM as a haven of stability, and the gold standard for service provision, will continue to energize its development.

American Hellenic Hull, the Club’s hull and war risks underwriting subsidiary, has continued to enhance its market position.  Preliminary results for the financial year to December 31, 2020 disclose a small loss for the year, similar to that for 2019.  However, against a background of robust premium pricing, the insurer’s balance sheet strengthened at year-end, net assets (equity) increasing by 29% by comparison with the previous year.

There were also improvements in several other key ratios at year-end 2020, including the insurer’s solvency capital requirement (SCR) at 130%.

American Hellenic Hull’s performance has gained yet further momentum into the early part of the current year, with vessels insured, underwriting income, operating profitability and balance sheet strength all maintaining an encouraging upward trajectory.

Commenting upon the confluence of these positive trends across the Club’s diversified portfolio of interests, Joe Hughes, Chairman and CEO of SCB, Inc., the Club’s managers, said:  “Although uncertain business conditions prevail in both the shipping and insurance sectors, the American Club’s recent experience has been encouraging.  The 2021 renewal of the Club’s mutual P&I and FD&D portfolios proceeded in a positive direction, while both EOM and American Hellenic Hull have performed with credit over recent months.

“Although we live in challenging times, my colleagues and I are certain that the difficulties of the present will generate opportunities for the future.  These opportunities will be found across the increasingly broad marine insurance landscape which the American Club, by virtue of its diversified capabilities, is richly equipped to develop over the years to come.”

Notes to Editors

The American Club

American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American Club) was established in New York in 1917. It is the only mutual Protection and Indemnity Club domiciled in the entire Americas and its headquarters are in New York, USA.

The American Club has been successful in recent years in building on its US heritage to create a truly international insurer with a global reach second-to-none in the industry. Day to day management of the American Club is provided by Shipowners Claims Bureau, Inc. also headquartered in New York.

The Club is able to provide local service for its members across all time zones, communicating in eleven languages, and has subsidiary offices located in London, Piraeus, Hong Kong, Shanghai and Houston, plus a worldwide network of correspondents.

The Club is a member of the International Group of P&I Clubs, a collective of thirteen mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.

The American Club also operates a fixed premium facility, Eagle Ocean Marine (EOM), aimed at the operators of smaller vessels in local and regional trades.  Since it commenced underwriting in 2011, EOM has enjoyed considerable success in building a growing footprint in this specialist market and generating strong profitability for the Club.

American Hellenic Hull Insurance Company, Ltd. (AHHIC) is a wholly-owned, Solvency-II accredited hull and war risk subsidiary of the Club, based in Cyprus.  Since it began operating in mid-2016, AHHIC has enjoyed an increasing market presence coupled with growing premium volume and rising profitability.

For more information, please visit the Club’s website http://www.american-club.com/

P&I Insurance

Protection and Indemnity insurance (commonly referred to as “P&I”) provides cover to shipowners and charterers against third-party liabilities encountered in their commercial operations; typical exposures include damage to cargo, pollution, death/injury or illness of passengers or crew or damage to docks and other installations.

Running in parallel with a ship’s hull and machinery cover, traditional P&I cover distinguishes itself from usual forms of marine insurance by being based on the not-for-profit principle of mutuality where Members of the Club are both the insurers and the assureds.

Filed Under: The American Club

GEODIS announces the appointment of Fabrizio Airoldi as Country Managing Director in Italy

March 22, 2021 by

Fabrizio Airoldi takes on the role of Managing Director of GEODIS in Italy after significant experience gained in the Group. He is responsible for the Freight Forwarding and Contract Logistics activities in Italy.

Fabrizio joined GEODIS in 2006 as Management Control Manager after a degree in Business Administration and experience in the logistics sector as well as in industry.

His academic background led him to carry out different roles within the financial function before making a decisive step into operations where he continued for three years in the AMERICAS region of GEODIS.  It was there that he held the position of Deputy COO with direct responsibility for logistics activities in the LATAM region.

Back in Italy in 2018, he was appointed General Manager of GEODIS for the Contract Logistics activity in Italy. He took up his new position as Managing Director of Italy as of January 1st, 2021 and replaces Francesco Cazzaniga.

“Fabrizio’s extensive experience and his in-depth knowledge of the Italian market will be key in strengthening our presence in Italy which is the second largest country in the WEMEA region of GEODIS in terms of turnover,” says Laurent Parat,Executive Vice President, Contract Logistics and President & CEO of Western Europe, Middle East & Africa (WEMEA).

“I am very proud of this appointment and I thank the Group for trusting me,” comments Fabrizio Airoldi. “For me this is a gratifying personal achievement in my logistics management career and I am looking forward to the new challenges ahead I am sure that the professionalism and knowledge of all my colleagues in the Italian organization will allow GEODIS to continue along the steady path of growth it has achieved in recent years.  We will continue to serve our customers with a determination to help them overcome their logistics constraints”.

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #6 in Europe and #7 worldwide. In 2019, GEODIS accounted for over 41,000 employees globally and generated €8.2 billion in sales.

Filed Under: GEODIS

“K” Line delivery of Next-generation Environmentally Friendly Car Carrier Fueled by LNG “CENTURY HIGHWAY GREEN”

March 22, 2021 by

On March 12, the “CENTURY HIGHWAY GREEN”, a car carrier fueled by LNG (liquefied natural gas) that had been under construction at Tadotsu Shipyard Co., Ltd., part of the Imabari Shipbuilding Group, has been delivered to “K” LINE.

“CENTURY HIGHWAY GREEN”

She is a next-generation environmentally friendly vessel expected to reduce emissions of carbon dioxide (CO2), which is a greenhouse gas (GHG) by 25% to 30%(*1), emissions of sulfur oxides (SOx), which cause air pollution, by almost 100%, and emissions of nitrogen oxides (NOx) by 80% to 90% with the use of Exhaust Gas Recirculation (EGR) in addition to the use of LNG fuel, compared to conventional vessels using heavy fuel oil. The launch of “K” LINE’s first LNG-fueled car carrier realizing transportation with a low environmental impact is an important milestone for achieving the targets set forth in the “K” LINE Environmental Vision 2050(*2).

In addition, a remote naming ceremony was carried out on March 3, ahead of the vessel’s delivery. Four locations in Aichi, Kagawa, Okayama, and Tokyo were connected online, with attendees including Toyota Motor Corporation (head office: Toyota-city, Aichi; President and Representative Director: Akio Toyoda) Chairman and Representative Director Takeshi Uchiyamada and his wife, Ministry of Land, Infrastructure, Transport and Tourism Maritime Bureau Director-General Shinichiro Otsubo, Ministry of the Environment Chugoku-Shikoku Regional Environmental Office Director Kenji Kamita, Imabari Shipbuilding Co.,Ltd. President Yukito Higaki and “K” LINE President and Representative Director Yukikazu Myochin. The vessel was named by adding the word “GREEN” evoking images of harmony with the planet and the environment to the traditional name of “CENTURY HIGHWAY” that has been used in four of “K” LINE’s car carriers in the past.

The vessel utilizes a variety of environmental measures and digital technologies in an effort to improve safety, environment, and quality that are important issues for “K” LINE

Overview of the Vessel

Length of over all  : 199.98 meters

Beam : 37.2 meters

Maximum number of cars loaded : 7,080 vehicles

Gross tonnage : 73,515 tons

LNG fuel tank capacity : 2,439 cubic meters

Registry  : Japan

  • Environmental Specifications of the Vessel　
  • The vessel uses a dual fuel main engine and auxiliary engines (generator, boiler) capable of operating on either LNG or Marine Gas Oil (MGO). The main engine uses a high-pressure type ME-GI engine, reducing emissions of methane slip (unburnt gas), which is a greenhouse gas.
  • The main engine utilizes EGR and the generator utilizes Selective Catalytic Reduction (SCR), clearing NOx Tier III regulations when using either LNG and MGO fuel.
  • The construction of the vessel received support of the “Model Project for Measures to Reduce Emissions of CO2 from Vessels Utilizing Alternative Fuels” that is a joint project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism.
  • Part of the construction funding for the vessel was procured from Mizuho Bank, Ltd. and Sumitomo Mitsui Trust Bank, Limited through Japan’s first climate transition loans.

Please see <Related Links>.

  • The vessel is equipped with training vessel specifications to promote the spread of LNG-fueled vessels and the reduction of greenhouse gases. An issue for the expansion of LNG-fueled vessels is the acquisition of IGF(*3) qualifications by the captain, chief engineer and all engineers. The requirements of IGF include on-board training on an LNG-fueled vessel, and this vessel has been designed from the outset with a maximum crew of 50, which is one of the largest crew capacities in the world, to enable many crew members to train on board.
  • Digital Technologies Installed on the Vessel
  • Expansion of on-board Wi-Fi

In addition to residential area, Wi-Fi has been installed on the cargo deck and in the engine room and LNG fuel-related equipment compartment with the aim of improving efficiency of operations such as remote monitoring of the vessel interior.

  • Installation of cameras inside the vessel

Several web cameras have been installed on the cargo deck and in the engine room, enabling real-time monitoring via PC or mobile phone within the vessel via the on-board Wi-Fi. Recording is also possible, enabling monitoring of the conditions on board from land via the Internet.

  • Utilization of mobile devices

On-board Wi-Fi can be used to share audio, video, text communication, and electronic files using smartphones and smart glasses, enabling the improvement of operational efficiency, reduction of workload, and strengthening of communication among crew members. These devices are also utilized for ship-to-shore audio and video communication.

  • Dual fuel generator preventative diagnosis system

The vessel is equipped with “ClassNK-CMAXS” made by Nippon Kaiji Kyokai as the generator status diagnostic system for preventing serious failures based on the early detection of engine anomalies.

(*1)            Based on EEDI (Energy Efficiency Design Index), the vessel is expected to reduce CO2 by approximately 45% ,which is higher than Phase-3 target of more than 30% reduction applied for new vessels with contract date after 2025.

        About EEDI : https://www.kline.co.jp/en/csr/environment/regulation.html

(*2)            “K” LINE Environmental Vision 2050 is a long-term vision on the environment established by “K” LINE in 2015. It was revised in June 2020 to set the target of “improving CO2 emission efficiency by 50% compared to 2008” which exceeds the International Maritime Organization (IMO) target for 2030 of “40% improvement,” and “introduction of LNG-fueled vessels” was set forth as an action plan for achieving this.

(*3)            The “International Code of Safety for Ships Using Gases or other Low-flashpoint Fuels” (IGF Code) established by the International Maritime Organization (IMO).

Filed Under: "K" Line
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