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Download Move Magzter App from Android & Apple Store INTERVIEW INDIA'S LOGISTICS COSTS DEDICATED FREIGHT LOGISTICS Raj Chopra Container Logistics Cost: CORRIDORS Data You Can Director, Freya Shipping Myth VS Facts Bringing the Modal Shift Bank On! south asia’s premier mariti me business magazine R100 APRIL 2020 WWW.MARITIMEGATEWAY.COM RNI NO: TELENG/2009/30633 POSTAL REGISTRATION NO: HD/1137/2019-2021 DATE OF PUBLICATION: 25/03/2020 DATE OF POSTING: 28/03/2020 IMO 2020 AND THE COVID-19 CURSE MARITIME TRADE QUARANTINED China is gradually recovering from the pandemic which is spreading to other parts of the globe bringing them under quarantine, once again highlighting the vulnerability of the global supply chain APRIL 2020 | MARITIME GATEWAY 3 FROM THE EDITOR PANDEMIC TEACHES RESILIENCE hile the actual impact of COVID-19 digital technology to organize and collaborate to the global economy is still with suppliers, thereby ensuring supplies reach Wunknown, but the very basic measure the people who needed the most. to prevent from getting bitten by the virus - In China’s major cities, home delivery of social distancing will surely give more pain to the Indian economy already reeling under items purchased online can be made within 20 slowdown. Prime Minister Narendra Modi minutes. This is largely down to the deployment appealed to citizens to stay at and work from of digital technology. Alibaba’s Cainiao network, home to curb the coronavirus outbreak. The for example, supports the supply chains of the People services sector, which accounts for about 55 per merchants it serves via an AI-enabled digital leveraged cent of India’s GDP is poised to be the worst hit. inventory system that links the online and offl ine Social-distancing measures could mean a dent to shopping worlds, in which merchants’ physical digital productivity and consumption because of job or stores serve an extended distribution network. pay losses. If we have a widespread community As a result, almost as soon as the lockdown technology to outbreak then GDP could fall as low as 3.5 per was declared in Wuhan, Alibaba was shipping organize and cent starting April 1. medical and food supplies into the province. collaborate Public discourse is focused on the practicalities In the past fi ve years, Alibaba Group, JD.com, of life under lockdown: How will people get MTDP (Meituan Dianping) and many other with suppliers, food supplies? Can the medical services cope? companies have transformed the purchasing Will people get paid? Some insights emerging behaviour of Chinese consumers, moving thereby from China point at how we can cope with the them away from bricks-and-mortar shopping ensuring social and commercial disruption. A key driver, into online spaces, often consolidated through it turns out, is digital technology. a so-called “super app.” The combination supplies reach of consumer digital maturity and digitally For the past few months, China’s cities with supported supply chains has enabled supplies the people empty streets and deserted shopping malls reach people in self-quarantine. looked like the set of a post-apocalypse TV who needed series. In Wuhan when the lockdown was We hope the global society soon emerges out the most. declared panic buying quickly emptied the of this pandemic with minimal loss to life and supermarkets. Yet in a matter of days, supplies economy. Till then stay sanitised and safe with began to fl ow into Wuhan as people leveraged your families. R Ramprasad Editor-in-Chief and Publisher [email protected] 4 MARITIME GATEWAY | APRIL 2020 APRIL 2020 | MARITIME GATEWAY 5 NOW YOU CAN READ YOUR FAVORITE MAGAZINE ON THE DOWNLOAD MOVE MAGZTER APP FROM ANDROID & APPLE STORE CONNECT WITH MG FOLLOW US ON @MARITIMEGATEWAY EDITOR AND PUBLISHER EDITORIAL R RAMPRASAD, [email protected] ADVISORY BOARD GENERAL MANAGER - OPERATIONS RAVI TEJA, [email protected] SABYASACHI HAJARA FORMER CHAIRMAN, SCI CHAIRMAN EDITORIAL ADVISORY BOARD ASSOCIATE EDITOR OMER AHMED SIDDIQUI, [email protected] BILL SMART CHIEF EXECUTIVE, BENGAL TIGER LINES DESIGN TEAM DR A JANARDHANA RAO SR DESIGNER: VIJAY MASA MANAGING DIRECTOR INDIAN PORTS ASSOCIATION MARKETING & SALES JULIAN MICHAEL BEVIS SENIOR DIRECTOR, GROUP RELATIONS, NATIONAL & INTERNATIONAL : SATISH SHETTI SOUTH ASIA A.P.MOLLER-MAERSK MANAGER, [email protected] +91 99207 05534 CAPT DEEPAK TEWARI CHAIRMAN, CONTAINER SHIPPING LINES RESEARCH ASSOCIATION (CSLA) RAKESH ORUGANTI, [email protected] ADARSH HEGDE JOINT MANAGING DIRECTOR EVENTS ALLCARGO LOGISTICS MAYURI, MANAGER, [email protected] P JAIRAJ KUMAR CHAIRMAN & MD ADMINISTRATION OCEAN SPARKLE LIMITED KISHORE P, CHIEF MANAGER, GENERAL ADMINISTRATION SHARDUL THACKER MADHUKAR, MANAGER, [email protected] +91 93937 68383 PARTNER, MULLA & MULLA & CRAIGIE BLUNT & CAROE FINANCE DHRUV KOTAK C K RAO, GENERAL MANAGER MANAGING DIRECTOR, JM BAXI GROUP RAKESH U MANISH SAIGAL MD, ALVAREZ & MARSAL JASJIT SETHI CEO, TCI SUPPLY CHAIN SOLUTION CAPT DINESH GAUTAMA PRESIDENT, NAVKAR CORPORATION LIMITED CAPT SANJEEV RISHI ADVISOR, WORLDS WINDOW Maritime Gateway is printed by R Ramprasad published by R Ramprasad on behalf of Gateway Media Pvt Ltd, D.No. 6-2-984, #407, INFRASTRUCTURE & LOGISTICS PVT LTD 5th Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004, Telangana, India. NAVIN PASSEY MANAGING DIRECTOR, WALLEM Printed at M/s PVB Printers, 11-5-418/A, Ground Floor, Skill Adobe Apartment, Redhills, Lakdikapool, Hyderabad - 500004. Published SHIPMANAGEMENT (INDIA) PVT LTD at Gateway Media Pvt Ltd, D.No. 6-2-984, #407, 5th Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004, Telangana, India. REGD. OFFICE: D.No. 6-2-984, #407, 5th Floor, Pavani Plaza, Khairatabad, Hyderabad – 500 004, Telangana, India. CIN: U74900TG2007PTC054344 EDITOR: R Ramprasad Views expressed in the articles are those of the writer(s) and may not be shared by the editor or members of the editorial board. Unsolicited material will not be returned. COPYRIGHT: No material published here should be reproduced in any form without prior written permission from Gateway Media. FEEDBACK: Readers are advised to send all feedback and comments to [email protected] 6 MARITIME GATEWAY | APRIL 2020 APRIL 2020 | MARITIME GATEWAY 7 CONTENTS VOLUME 12 | ISSUE 07 | APRIL 2020 MARITIME TRADE QUARANTINED 24 COVER STORY China is gradually recovering from the pandemic which is spreading to other parts of the globe bringing them under quarantine, once again highlighting the vulnerability of the global supply chain 29 40 TECHNOLOGY MARINE FUEL ELECTRIC SOLUTIONS FOR TERMINAL OPERATIONS Once considered meagre value of combustion catalysts 30 and additives usage in EMISSION NORMS shipping, changed the version IMO 2020 AND THE after understanding the COVID-19 CURSE 42 necessity in using marine The COVID-19 outbreak has DEDICATED FREIGHT CORRIDORS fuel additives as ships shaken and stirred the already BRINGING THE MODAL SHIFT started using mixture of volatile bunker market. While The freight corridors will take various low-sulphur fuels the refi ners adjust their off 70 per cent of freight load from different sources capacities and shipping lines based on International in the form of goods trains choose their path to compli- Maritime Organisation (IMO) 2020 regulations for from the passenger network ance, the market dynamics are sustainable environmental practices. yet to reach an equilibrium and the logistics cost will be trimmed by 50 per cent 45 INTERVIEWS UPDATE RASUWAGADI BORDER TO 36 REMAIN CLOSED Dr Abhijit Singh Executive Director, Indian Ports Association India’s logistics cost is 35 high and there are several LOGISTICS elements in the logistics chain DATA YOU CAN BANK ON! which add to the logistics cost. 46 Raj Chopra 38 Director, Freya Shipping INDIA'S LOGISTICS COSTS CONTAINER LOGISTICS COST: MYTH VS FACTS India’s logistics cost is high and OTHERS there are several elements in the logistics chain which add to the 10 NUMBERS & GRAPHS logistics cost. Sunil K. Vaswani, 12 POINT BLANK Executive Director, Container 14 INTERNATIONAL NEWS Shipping Lines Association (INDIA) 16 BRIEF NEWS brings to the fore some of them 18 NEWS 8 MARITIME GATEWAY | APRIL 2020 APRIL 2020 | MARITIME GATEWAY 9 NUMBERS & GRAPHS ASIAN BUNKER DEMAND GROWTH BY YEAR NO. COVID-19 BLANK SAILINGS (million b/d) ANNOUNCED, TRANSPAC & ASIA-EUROPE 2020* JAN-MAR, 2020 Gasoil 90 2019* 80 Naphtha 2018 70 2011-17 Mogas 60 50 LPG 40 JKero 30 20 FO 10 0 Others Week 6 Week 7 Week 8 Week 9 Week 10 -1.0 -0.5 0.0 0.5 1.0 1.5 *Forecast Source: S&P Global Platts Analytics GLOBAL CRUDE PRODUCTION BY QUALITY Heavy Sour Ultra Light RIDING THE WAVE 11% 4% How China's role in seaborne trade has grown Light Sweet Heavy Sweet 18% Global share in 2003 2019 2% Exports from China Light Sour 14% 12% 8% Medium Sour 8% 7% 45% 4% 2% More than 10% 1% . 0% Medium Sweet Container Chemicals Dry bulk Crude and Gas 11% Shipments commodities oil products Imports to China 35% PERCENTAGE OF INVESTORS INTENDING TO INVEST OUTSIDE ASIA PACIFIC IN 2020 20% 18% 16% 11% 7% 4% 5% Korea 79% 18% 6% Singapore 56% Dry bulk Chemicals Gas Crude and Container Commodities oil products shipments Hong Kong SAR 41% Japan 41% Source: Clarkson Research Note: Figures exclude domestic China trade Mainland China 18% NET GASOIL EXPORTS BY THE ASIAN "BIG FOUR" (million b/d) RATIO OF VGO HYDRO TREATING Jan-May - 19 TO FCC CAPACITY Korea 2018 2017 0% 15% 30% 45% 60% 2016 India North and Central Europe 60% 2015 North America 50% Russia and Central Asia 43% China Mediterranean 31% Asia-Pacific 29% Middle East 28% Japan Latin
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