Transport communications

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“K” LINE Group’s Yokohama Daikoku C-4 Terminal Starts Operation Utilizing Renewable Energy

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Daito Corporation (Daito) have started operation of “K” LINE Group’s first dedicated finished vehicle terminal in Japan, at Yokohama Daikoku C-4 Terminal from April 2022. On April 5th, “IVORY ARROW” operated by “K” LINE, a pure car and truck carrier (PCTC), made its first call at the terminal. On April 15th, we held a safety prayer ceremony with the terminal operators and an opening ceremony with the attendance of many related parties.

The terminal is used not only as an export and transshipment base for finished vehicles (new and used vehicles) but also handle a wide variety of vehicles such as break-bulk cargoes by utilizing work facility with large roof in terminal in order to meet a variety of needs.

In addition, the terminal will use electric power generated from renewable energy sources with virtually zero CO2 emissions. The terminal will procure 100% wind-generated renewable energy from blockchain-based electricity traceability service (a service for specifying the power plants from which electricity is procured) of “Minna-Denryoku”, operated by UPDATER Corporation.

Overall view of C-4 Terminal

In last November, “K” LINE has revised a part of our long term environmental guideline “K”LINE Environmental Vision 2050” (Note 1) and set our new target for 2050 as “The challenge of Achieving Net-Zero greenhouse gas (GHG) emissions”. We will strive to enhance our corporate value by contributing to the sustainable development of the economy and society, while protecting the environment through our business activities.

(Note 1) “K” LINE Environmental Vision 2050

https://www.kline.co.jp/en/csr/environment/management.html#002

Terminal Overview

Name                   : Yokohama Daikoku C-4 Terminal

Location              : Daikoku Futo 22&24, Tsurumi-ku, Yokohama, Japan

Business               : Finished-vehicle logistics

Pier length          : 350 m (1 berth)

Sea depth            : 15 m

Total yard area  : Approx. 153,500 m2 (including berth area)

Parking slots       : Approx. 8,000 units

CAPTION: From left: Mr. Ito, President of Yokohama Port Corporation; Mr. Kota Fujiki, Chairman of Yokohama Port Transportation Association; Mr. Nakano, Director of Port of Yokohama; Mr. Myochin, President of Kawasaki Kisen Kaisha; Mr. Matsukawa, President of Daito Corporation; Mr. Kozo Fujiki, Chairman of Yokohama Stevedoring Association

Supply chain congestion increases threat of cargo theft

Joint report of 2021 global cargo theft trends finds shift in emphasis from risk of in-transit, vehicle- based attacks to losses while cargo is at-rest — storage locations are critical at risk areas.  Widespread congestion at ports and inland facilities lead to increased opportunity for thieves during the period

London & New Jersey, 16th May 2022

  • Globally cargo thefts from or of vehicles in-transit declined as incidents at storage facilities rose to nearly 30%
  • In North America prevalence of port congestion and railhead delays seen as crucial factor
  • Idle times in European locations also augmented theft and stowaway risk
  • Strict Covid-19 protocols at Asian ports, particularly in China created delays and backlogs leading to theft opportunities
  • Increased influence of insider infiltration into operator organisations such as haulage companies and warehousing facilities
  • Adoption by criminals of new technology- assisted by increased digitalisation of supply chain processes and communication

The annual report, based on recent incident data for the whole of 2021 collated from sources including law enforcement agencies, governments and trade associations, has been compiled, as in the past years by leading international transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI.  In this last reporting period input from the Transported Asset Protection Association’s (TAPA) Europe, Middle East & Africa (EMEA) region has also helped to significantly increase the level of intelligence in these territories.   

“Constant vigilance is required in order to combat the growing risk divergence in theft trends,” says Mike Yarwood, Managing Director, Loss Prevention at TT Club. “Criminals are quick to adapt to prevailing conditions and have swiftly responded to the increased opportunities that supply chain congestion presents through the amount of cargo laying idle.  In addition, the transport industry’s growing reliance on technology and a rapidly changing market for sourcing materials and components have opened up new avenues for criminals to take advantage of companies’ increased vulnerabilities. TT, along with its partners is committed to tracking and reporting on such developments in criminals methods of operation in order to reduce the risk of losses wherever possible.” 

As the graphic above illustrates the products most frequently involved in global cargo thefts overall last year, included agricultural produce (12%), food and beverage (14%), construction materials (9%) and electronics (10%) Significantly, many of the materials used to produce the latter two, such as nitrogen, iron ore, lumber, steel and semiconductors, have all experienced sharp price increases since the outbreak of the global pandemic due to shortages with a consequent increase in the value of the manufactured products.

The report also offers advice on how operators can protect their cargo from the theft risks outlined.  Tony Pelli, BSI’s Practice Director for Security and Resilience has produced a checklist of precautionary action points.  “To mitigate risk there are a range of safeguards, including careful verification of trucking companies and other sub-contractors; insisting on the provision of details such as driver’s name, trailer number and appointed pick-up times and background screening of employees,” explains Pelli.  “Vigilance is paramount, and we hope our reporting and advice will help supply chain partners to maintain and increase their diligent efforts to combat crime.”

Thorsten Neumann, President & CEO, of TAPA EMEA, commented: “What we are seeing in EMEA is a heightened level of risk to virtually all types of goods moving in supply chains across our region. This comes from increasingly active and sophisticated organised crime groups which often regard supply chains as an easy and lucrative target. Sadly, too many companies wait to seek solutions until they become a victim of a cargo crime but, by then, they will have suffered a significant financial and reputational loss. The way forward is to recognise the risks which exist and to learn about the industry standards, training and intelligence solutions which are available today and which are already key to the supply chain resilience of leading manufacturers and freight transport and logistic providers. All is not lost, but it is a time for action to manage these risks and prevent rising product losses.”  

Please click the following link for the BSI & TT Club Cargo Theft Report

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 97% 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

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain. To learn more, please visit www.bsigroup.com/supplychain

About TAPA

The Transported Asset Protection Association (TAPA) is a not-for-profit industry that helps Manufacturers/Shippers and Logistics Service Providers minimise losses resulting from cargo thefts and to increase the security and resilience of their supply chains. Today, in the Europe, Middle East & Africa (EMEA) region, the Association provides a host of certifiable, independently-audited industry Standards for facilities, trucking operations and secure parking as well as training. The TAPA EMEA Intelligence System (TIS) also provide the latest and historic recorded incident intelligence, enabling more secure route planning by helping members understand when, where and how criminals are targeting supply chains, and the products most frequently stolen. The Association strongly advocates the reporting of all cargo thefts to increase industry knowledge of risks and to assist companies’ loss prevention strategies. TAPA EMEA’s President and CEO is Thorsten Neumann.

New Conceptual Designs for LNG-fueled and Battery-Powered Energy-Saving Bulk Carriers

~Approvals in Principle (AIP) Obtained from ClassNK~

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) jointly developed two conceptual designs for LNG-fueled and battery-powered energy-saving bulk carriers and obtained Approvals in Principle (AIP) (Note 1) from Japan’s ship classification society Nippon Kaiji Kyokai (ClassNK). “K” LINE developed a conceptual design for 200,000 ton class capesize bulk carrier in collaboration with Namura Shipbuilding Co., Ltd. and Taiyo Electric Co., Ltd. The other design was jointly created by “K” LINE, Shin Kurushima Sanoyas Shipbuilding Co., Ltd., and Taiyo Electric Co., Ltd for  90,000 ton class post-Panamax bulk carrier.

By selecting low-carbon LNG as the primary fuel source, an energy-saving vessel has been designed that helps reduce greenhouse gas emissions. The design was further enhanced by adopting permanent magnet (PM) shaft generator (Note 2) technology, along with lithium-ion batteries, which are already being used in a wide range of fields in the society. Moreover, by utilizing batteries as part of the platform for power supply on board, the aim is to further reduce emissions going forward by later adding green energy sources with energy-saving technology.

AIP technical features and their benefits

  1. Utilizing LNG fuel
  1. Adoption of shaft generator technology
  1. Battery technology adoption

Small-capacity batteries with excellent charge and discharge rates will be used for auxiliary power during peak hours of onboard demand. They will also be utilized to store surplus electricity.

In the new post-Panamax carrier design, emissions will be reduced by using large-capacity batteries instead of a dual fuel generator during cargo loading and unloading. (The number of dual fuel generators installed can be reduced by one.)

In the new capesize carrier design, the battery capacity will be greater due to amount of power required during cargo handling. Here emissions during cargo handling will also be reduced by enabling vessel connection to shore power (Note 3).

Image of Future next-generation bulk carrier

In addition to the equipment for greenhouse gas emissions reduction under the recent AIPs, the aim is to further reduce emissions going forward by installing various optional technologies.

ダイアグラム

自動的に生成された説明
テーブル

中程度の精度で自動的に生成された説明

Last November, “K” LINE partially revised its Environmental Vision 2050 (Note 4) and decided to take on the challenge of achieving net-zero greenhouse gas emissions. “K” LINE views this challenge as one of the concrete initiatives that will help achieve its vision by 2050.

While public attention to the greenhouse gas emissions including from shipping is becoming increasing, “K” LINE will actively work to reduce environmental impact by researching, developing, and introducing ships with excellent environmental performance to achieve our goal set on “K” LINE Environmental Vision 2050 .

  • An Approval in Principle (AIP) indicates that a certification body has reviewed and approved the conceptual design. This means the design meets relevant technical requirements and standards, even in the case of new technologies and areas not specifically covered by current regulations.
  • A shaft generator uses the rotation of the ship’s propeller shaft to generate electricity.
  • A system that allows ships to switch off their generators when docked and obtain the necessary electricity through a connection to the onshore power grid.
  • Released Nov 4, 2021: The Challenge of Achieving Net-Zero GHG Emissions

Revision of 2050 Targets for “K” LINE Environmental Vision 2050

https://www.kline.co.jp/en/news/ir/auto_20211102423677/pdfFile.pdf

Appointments to the GEODIS Executive Board

GEODIS, a global leading transport and logistics provider, announces the appointment of:

  • Celeste Thomasson as Executive Vice President and General Counsel of the Group, supervising legal, insurance, compliance and audit 
  • Pascale Dubois as Executive Vice President, Corporate Communications & Brand

Celeste Thomasson and Pascale Dubois join the Group’s Executive Board, strengthening the management team of Marie-Christine Lombard, Chief Executive Officer of GEODIS.

Celeste Thomasson

Celeste Thomasson began her career in 1992 as an associate at Baker & McKenzie in Los Angeles, before joining Fournier Laboratories in 1999. She joined the Safran group in 2002 as Legal Counsel. She was promoted to Senior VP and General Counsel for Safran USA in July 2008, before being appointed Vice President Legal Affairs. In January 2014, she joined MorphoTrak (a subsidiary of Safran) as President and CEO, becoming a board member of the Zodiac Aerospace in February 2018. Appointed CEO of Safran Seats UK in January 2019, she filled the roles of Executive Vice President, Corporate Secretary & President of the Ethics Committee for Safran group in 2020.

Celeste Thomasson holds a juris doctor degree from Southwestern University School of Law in Los Angeles. She has been a member of the California bar since 1993.

Pascale Dubois

Pascale Dubois began her career in 1985 as a journalist.

In 1989 she joined Compagnie du BTP as Deputy Communications Manager. In 1994 she became Head of Press Relations and Financial Analyst Relations at Euro RSCG Finances (Havas Group). At the Colas Group in 1996, she was appointed Internal Communications Manager, before becoming Head of Communications in 2000. May 2008 saw Pascale in the role of Head of Communications and Philanthropy at the Safran group and an Executive Committee Member in 2015.

Pascale Dubois has a Master’s degree in History and has completed a training course dedicated to female board members (Certificat Objectif Administratrice) at the EM Lyon Business School.

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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,000 people globally and generated €10.9 billion in revenue.

GEODIS Announces Turnkey eCommerce Fulfilment Site in Spain

GEODIS, a global leading transport and logistics provider, continues its growth in servicing booming eCommerce retail channels across the world with an investment in a dedicated 55,000m² new warehouse space at Torija in the Province of Guadalajara, Spain. 

This is the first such investment of GEODIS in the country, being in part a response to a national growth rate in eCommerce sales of 17% last year, which drove the total value of the market to US$27 billion (Euros24.3 billion)[1].  Located just one hour from the center of Madrid on the main highway to the industrial city of Zaragoza, the 110,000m² site boasts a warehouse with a capacity of circa 50,000 pallets and 55 loading bays; direct employment for 150 will be generated.

“Undoubtedly the logistics challenges of servicing a fast-growing and at times unpredictable sector such as eCommerce requires flexibility in designing and implementing traffic flows as well as skilled and motivated manpower,” says David Pele, Country Operations Manager for the Contract Logistics line of business of GEODIS in Spain. “These considerations were paramount in our choice of location in a region where logistics skill-sets are well established within the local workforce. Fast efficient transport links to Spanish retail consumers and international road, rail and air links were also factors.”

While GEODIS has a presence in Spain at sites in Palencia and Burgos providing contract logistics services, the Torija facility will be a turnkey project for its supply chain management offering specifically tailored to an eCommerce retailer. The Company’s innovative IT solutions that increasingly enable eCommerce customers to grow their businesses rapidly and reliably across the globe will now be brought to bear in the Spanish market.

“ECommerce as a retail channel had 58% market penetration in 2021, meaning over half of Spaniards bought at least one product online last year. A maturing market such as this is regarded as both stable and one of potential steady and consistent growth as long as customer experience standards are maintained by retailers,” points out Iván Sánchez Intxaurbe, Managing Director in Spain. “It is these very attributes of guaranteed high service standards and a persistent drive for continual improvement that we believe marks out GEODIS.  We expect Torija to be the first of a number of eCommerce fulfilment centers within our future Spanish operations.”

[1] Source:  ecommerceDB.com

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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,000 people globally and generated €10.9 billion in revenue.


[1] Source:  ecommerceDB.com

“K” Line : Changes of responsibilities of Executive Officers

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided in a board meeting held today on changes of responsibilities of Executive Officers.

  1. Changes effective as of June 1, 2022
PositionNameResponsibilities
Senior Managing Executive OfficerYukio Toriyama(Present) Responsible for CFO Unit (Corporate Planning, Research, Corporate Sustainability, Environment Management, IR and Communication, Finance, Accounting, Taxation), CFO (Chief Financial Officer)

(New) Responsible for CFO Unit (Corporate Planning, Research, Corporate Sustainability, Environment Management, IR and Communication, Finance, Accounting, Taxation) and Legal, Corporate Legal Risk & Compliance Unit, CFO (Chief Financial Officer)
Senior Managing Executive OfficerYasunari Sonobe(Present) Responsible for Product Logistics Business Unit (Car Carriers, Logistics, Port and Affiliated Business)
(New) Responsible for Product Logistics Business Unit (Car Carriers, Logistics, Port, Short Sea and Coastal Business and Affiliated Business)
Managing Executive OfficerMakoto Arai(Present) Responsible for Legal, Corporate Legal Risk & Compliance Unit, Assistance to Internal Audit, CCO (Chief Compliance Officer)
(New) Supervising Legal, Corporate Legal Risk & Compliance, Assistance to Internal Audit, CCO (Chief Compliance Officer)

2. Responsibilities of Executive Officers on and after June 1, 2022

Please see the attached list of responsibilities of Executive Officers scheduled on and after June 1, 2022.

Attachment: The responsibilities of Executive Officers on and after June 1, 2022

TitleName Responsibilities
President & CEOYukikazu Myochin 
Vice President Executive OfficerAtsuo AsanoAssistant to President & CEO, Responsible for Dry Bulk Carriers Unit, In charge of Drybulk Planning, Responsible for Marine Sector, Advanced Technology, Ship Technical, GHG Reduction Strategy Unit
Senior Managing Executive OfficerYukio ToriyamaResponsible for CFO Unit (Corporate Planning, Research, Corporate Sustainability, Environment Management, IR and Communication, Finance, Accounting, Taxation) and Legal, Corporate Legal Risk & Compliance Unit, CFO (Chief Financial Officer)
Senior Managing Executive Officer
Kazuhiko HarigaiResponsible for Energy Transportation Business Unit
Senior Managing Executive Officer
Yasunari SonobeResponsible for Product Logistics Business Unit (Car Carriers, Logistics, Port, Short Sea and Coastal Business and Affiliated Business)
Senior Managing Executive Officer
Kiyotaka AyaSupervising Marine Sector, CSO(Chief Safety Officer)
Managing Executive OfficerDaisuke AraiResponsible for Containerships Business Unit, Digitalization Strategy Unit, CIO(Chief Information Officer)
Managing Executive OfficerMakoto AraiSupervising Legal, Corporate Legal Risk & Compliance, Assistance to Internal Audit, CCO (Chief Compliance Officer)
Managing Executive Officer
Shingo KogureResponsible for General Affairs, Human Resources Unit
Managing Executive OfficerTakenori IgarashiIn charge of Car Carrier Business, Car Carrier Planning & Development, Car Carrier Quality and Operations
Managing Executive OfficerNoriaki YamagaIn charge of Corporate Planning, Research, Corporate Sustainability, Environment Management, IR and Communication
Managing Executive Officer
Keiji KuboIn charge of Logistics, Port and Affiliated Business
Managing Executive Officer
Yuji AsanoIn charge of Finance, Accounting, Taxation
Managing Executive OfficerMichitomo IwashitaSupervising Ship Technical, GHG Reduction Strategy, In charge of Electricity and Offshore Business, Advanced Technology
Managing Executive OfficerMasatoshi TaguchiIn charge of Coal & Iron Ore Carrier Business, Coal & Iron Ore Carrier Planning & Operation
Executive OfficerToyohisa NakanoIn charge of Ship Technical, GHG Reduction Strategy, General Manager of Ship Technical Group
Executive OfficerSatoshi KanamoriIn charge of LNG, Carbon-Neutral Promotion
Executive OfficerAkihiro Fujimaru
In charge of Marine Sector
Executive OfficerHisashi NakayamaIn charge of Tankers, Fuel Strategy & Procurement
Executive OfficerFumiyoshi SatoIn charge of Legal, Corporate Legal Risk & Compliance, General Manager of Legal Group and Corporate Legal Risk & Compliance Group

“K” Line – Change of Director

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has decided during board meeting held today on following change of Director.

1. Change of Director
(1) Retirement scheduled for June 23, 2022

NameNew PositionPresent Position
Makoto AraiManaging Executive OfficerDirector Managing Executive Officer

HPC to Assess and Validate Capacity Expansion at Inland Port Greer

HPC Hamburg Port Consulting to evaluate new equipment and capacity requirements at the South Carolina Ports facility  to add capacity to the Southeast’s supply chain

Hamburg, 28 April 2022 – South Carolina Ports has commissioned Hamburg Port Consulting (HPC) to assess the capacity expansion of the Inland Port Greer, one of its intermodal rail terminals located in the Northern part of the state. The assessment was used to validate HPC’s original capacity and review options for expanding total capacity, ensuring the rail-served inland port can handle growing cargo volumes for customers.

Credit : South Carolina Port Authority SCPA

SC Ports operates multiple cargo facilities in South Carolina, among them the seaport in Charleston and its inland port in Greer, which extends the Port of Charleston’s reach 212 miles inland via a rail link that enables the smooth movement of goods for customers.

Extending the range of the seaport’s economic influence has been a driving factor for the development and construction of SC Ports’ inland port in Greer. In light of the growing container volumes handled at Inland Port Greer, SC Portscommissioned HPC to develop a capacity improvement plan for the terminal with the aim of evaluating the potential for expansion as a timely response to future volume developments.

“As operators, we aim for flexibility in responding to the supply chain disruptions that are more and more becoming a new normal, while also considering our planned expansion efforts to meet our customers’ needs,” said Steve Kemp, Senior Director Intermodal, Chassis and Operations Projects at SC Ports. “We opted to have our yard and equipment capacity plans reviewed by independent specialists to be prepared for meeting future volume demand.”

After providing a development plan for the facility a few years ago, HPC has now prepared an update, taking into consideration the impacts of ongoing supply chain disruptions in North America and the need for more capacity to handle customers’ growing supply chain needs. Amongst others, the layout concept and equipment procurement plan for long-term expansion have been generally validated within the framework of a sensitivity analysis. HPC has analysed the influencing factors under different dwell time scenarios to map the supply chain resilience.  As a result, some adjustment measures have been suggested, making the facility capable of handling up to 300,000 rail units. 

“Our clients want answers to whether their planning is sufficient to cope with various future scenarios,” says Christoph Schoppmann, Project Director and responsible for intermodal planning at HPC. “With resilient planning, they can give their customers the unprecedented flexibility and control required by manufacturers with tight production lines, and retailers with high demands for efficiency and reliability of their supply chain.”

Thanks to the HPC-internal’s “Intermodal Planning Model”, all traffic and volume flows on the terminal can be mapped and assessed. “We consider all possible terminal resources such as tracks, lift equipment, yard, empty yard, gate, etc., individually and in combination with each other,” says Schoppmann. “As a result, the customer enjoys a better understanding of the options and can make well-informed decisions on making the facility fit for future growth.”

HPC has extensive intermodal and rail terminal planning expertise. The consulting firm for ports, terminals and hinterland connections has already implemented more than 130 intermodal projects worldwide of which 60 have been in North America.

For more information on consulting services for the intermodal sector, please visit the website: www.hamburgportconsulting.com

Contact

Steffi Karsten, HPC Marketing / PR, email: s.karsten@hpc-hamburg.de

About HPC

HPC Hamburg Port Consulting operates as a logistics consulting company, specialised in strategy and transformation services for the ports, terminals, and rail sectors. Since establishment in 1976, the Hamburg-based consulting company has delivered approximately 1,700 projects across 130 countries spanning six continents, along the full port project development cycle. HPC employs about 100 domain experts with a background as terminal operators, software engineers, logistics managers, transport economists and mathematicians. As a subsidiary of the Hamburg Port and Logistics Corporation (HHLA), HPC has its roots in port handling of container, break bulk and multipurpose, as well as hinterland operations. www.hamburgportconsulting.com

Time to take charge of lithium battery moves

Amid a number of recent fire incidents affecting container transport, ro-ro ships and air cargo movements allegedly involving lithium batteries, international freight transport insurer TT Club is calling for increased vigilance to ensure a secure safety environment for the fast-developing supply chains of this increasingly common component.

The market is exponentially increasing through consumer demand for a wide variety of rechargeable products from handheld devices to power tools and electric vehicles. Recently recorded incidents of container fires caused by, or suspected to involve lithium batteries, as well as conflagrations of significant proportions on car carriers and ro-pax ships mean that safety concerns rightly continue to grow amongst the maritime community.  In addition to which revised regulatory restrictions regarding the carriage by air of lithium batteries, which took effect from 1st April, may result in greater volumes being transported by surface modes.

“Understanding the risks is crucial,” comments TT’s Risk Management Director, Peregrine Storrs-Fox.  “As with many successful technologies, market demand has outpaced the development of safety regulations. Since the mid-1980’s lithium batteries have been classified under dangerous goods regulations for transport based on the weight of lithium contained in the cells or batteries and the potential hazard presented by a given battery is also related to the amount of lithium it contains. However, as technology has advanced, the amount of energy derived from the active material has increased by up to 50%, leading to regulatory mismatch where provisions are essentially framed around mass and energy output.”

Lithium batteries are required to be certified to an international standard involving a rigorous series of tests performed by an approved independent testing laboratory, to ensure they can both withstand everyday use through their expected lifetime and the rigours of transport. Responsibility for testing and achieving certification rests with the shipper and/or manufacturer. The sharp rise in demand has been accompanied by supply of cheaper, poorer quality and untested batteries, including refurbished and even homemade power banks. E-commerce platforms have facilitated a global trade in potentially lethal products, often circumventing global standards and regulations.

Throughout their intermodal journey the primary risks exist when batteries are poorly manufactured, untested or defective; these have a higher propensity to malfunction. However, supply chain risk – at any point of handling, storage and transport – is compounded by used, fully or partially charged batteries. As such the reverse logistics of batteries must be carefully managed; damaged and faulty products being returned or shipped as waste for disposal or recycling present increased risk.

The consequences of lithium fuelled fires can be more extensive than others.  They are very difficult to extinguish, prone to thermal runaway and present an explosion risk. Due to the heat generated, re-ignition once a fire has been extinguished is an additional risk.  In the unforgiving maritime environment, where the crew capability to fight fire is strained, the hard lessons learned by land-based fire responders, particularly relating to electric vehicles, need to be assimilated.

“The majority of shippers will take all practicable steps to ensure that their lithium batteries achieve certification and are classified, packaged, packed, labelled and declared correctly. A small – frankly criminal – minority are motivated to avoid compliance, entering cargo into the supply chain that presents great risk to all,” Storrs-Fox observes.  “Once lithium batteries are placed into the intermodal supply chain, there is little opportunity for the cargo to be checked, visually or otherwise to verify compliance. For all who are contracted to transport, handle or store lithium batteries therefore, developing a thorough understanding of this particular cargo is a prudent step. Moreover, due diligence into the origin of manufacture and integrity of the shipper instigating the move of these potentially lethal power sources is critical.”

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

“K” Line Wind Service is Granted for Innovation Endorsement Provider Certification by ClassNK

“K” Line Wind Service, Ltd., a joint venture company between Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Kawasaki Kinkai Kisen Kaisha, Ltd. (*1), is granted for Class C Innovation Endorsement Provider Certification for organizations by ClassNK.

ClassNK offers its third-party Innovation Endorsement “Provider Certification”, which supports innovative initiatives, to companies and organizations. As companies pursue ESG-oriented management and SDGs, ClassNK conducts the third-party certification on the initiatives to transform their own business methods and organizations in order to establish the sustainable and competitive business. There are three categories of certification available to companies according to their innovation activity stage. (*2)

Certification Presentation on April 19th, 2022

Offshore Wind development is recognized as one of the most important items for Japan to reach carbon neutrality by 2050 and in order to contribute to its development in Japanese ocean, “K” Line Wind Service has been established as a business platform of “K” Line group for any vessel and transportation business around Offshore Wind projects in Japan.

“K” Line Wind Service is established with mission to contribute to the development of offshore wind as well as marine industry in Japan through the activities such as the program of “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted by Green Innovation Fund run by NEDO. (*3)

“K” Line Wind Service will continuously explore the new and competitive solutions in Japanese Offshore Wind projects while pursuing SDGs.

(*1) “K” Line Wind Service, Ltd

A joint venture company established by Kawasaki Kisen Kaisha, Ltd. and Kawasaki Kinkai Kisen Kaisha, Ltd. on June 1st, 2021 targeting the contribution to Offshore Wind in Japan throughout the marine solution that the group have developed in the history of 100-year.

Announcement on April 30th, 2021:

Establishment of “K” Line Wind Service, Ltd. for Offshore Support Vessel Operation

(https://www.kline.co.jp/en/news/energy/energy1216843343315336832/main/0/link/210430EN2.pdf)

(*2) Innovation Endorsement by ClassNK

ClassNK started to offer its third-party Innovation Endorsement in 2020, which supports innovation initiatives, to companies and organizations. There are three categories (1) Notation, (2) Product & solutions certification, and (3) Provider certification with three categories of certification available to companies according to their innovation activity stage.

Class C (Concept: Organizational policy and system in place for innovation)

Class D (Development: Specific innovation activities being carried out)

Class S (Sustainable Implementation: Sustainable innovation with results implemented in the business)

https://www.classnk.or.jp/hp/en/activities/techservices/dgd2030/iea/index.html

(*3) “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted by Green Innovation Fund run by NEDO

“K” Line Wind Service, Ltd., a joint venture company between Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Kawasaki Kinkai Kisen Kaisha, Ltd. (*1), together with Japan Marine United Corporation, Nihon Shipyard Co., Ltd. and Toa Corporation is pleased to announce that the project of “Mass-Production and Cost Reduction of Floating Offshore Wind Installation” was officially adopted as Green Innovation Fund for “Cost Reduction for Offshore Wind Power Generation Projects”

Announcement on January 21st, 2022:

Joint project on “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/energy/energy-7251549612202879904/main/0/link/220121EN.pdf