TODAY’S BULLETIN OF MARITIME NEWS
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- First View : DRAFTDODGER
- New Macuse rail link & port to handle regional cargo in addition to coal
- Mombasa port scores improved handling times
- Japan & India to develop SEZ around Mombasa port
- MSC Cruises and Fincantieri celebrate float out of MSC Seaview
- Feature: Incoterms and Purchasing Goods Abroad
- Int’l: CMA CGM Theodore Roosevelt becomes largest ship to cross Panama Canal
- Winds close Durban port to all traffic
- PRESS RELEASE: Important step for Damen Antarctic Supply Research Vessel
- Expected Ship Arrivals and Ships in Port
- Cruise News and Naval Activities
- Pics of the Day : STOLT APAL
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Can there be a double meaning to this ship’s name? If so, is there a story behind all this, one wonders? Seen at the Durban Fairway Buoy just off the port was this bulk carrier, DRAFTDODGER (66,545-dwt), with the port pilot boat alongside transferring the marine pilot aboard, as the helicopter service was not available. Built in 2016 we can’t find out too much of her and certainly nothing relating to the name, except that she is owned by Greek interests and is managed by Niovis Shipping Co SA of Piraeus, Greece. The vessel is 200 metres in length with a beam of 36 metres and has a draught of 7.2 metres – maybe that’s her secret? We think, but have not been able to confirm, that this ship was built by Mitsui Engineering & Shipbuilding Co., Ltd. (MES) as one of their Eco-Ship ‘neo66BC’ type bulk carriers. Confirmation or otherwise of this appreciated. This picture is by Ken Malcolm
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The new Moatize – Macuse railway line, which will carry coal from the mines of Tete province to a new port being built at Macuse south of Quelimane in Mozambique, will be extended by approximately 120 kilometres to connect with the Chitima region, where most of the mining companies are located, reports an article in the Portuguese language newspaper, Notícias
The initial design of the line from Moatize to the coast and running on the northern side of the Zambezi River, was just short of 500 kilometres, but an agreement reached with the developers, finance banks and other parties now sees the line being extended as far as Chitima.
This was revealed to media in Quelimane last week by Abdul Carimo, a member of the Board of Directors of Thai Moçambique Logistic, which is the concessionaire of the future deep water port in Macuse. He said that the extension of the line to Chitima would respond to mining companies’ interest in using the Port of Macuse to export production to the international market.
According to Carimo, another reason for altering the initial design has to do with errors in the concession process.
Carimo said that in December 2013, the government had approved the concession and implementation of the project, but problems arising made it necessary to reformulate the initiative, which took time, delaying the start of the venture.
Carimo says these delays had not been fully taken care of, but in order to provide greater credibility to the enterprise, it had been decided to move ahead with the changes already anticipated.
The project review had created conditions for the laying of the first track sometime next year, giving impetus to the construction of the US$ 2 billion Chitima-Macuse railway line and Macuse deep-water port.
The Port of Macuse will be able to handle deep draughted vessels up to Capesize and is being designed to also handle general cargo in addition to coal for export. Traffic from the hinterland including Malawi, Zambia and Zimbabwe will be potential users of the line and port through the Zambezia Development Corridor, which will attract new business opportunities through small and medium-sized enterprises along the route of the railway corridor.
The contract to build the new line was awarded to a consortium formed by the Portuguese construction group Mota-Engil and the China National Complete Engineering Corporation, who signed the contract with Thai Moçambique Logistica to build a 500 kilometre railway from the Moatize coal basin in the western province of Tete to a new mineral port to be built at Macuse, in Zambezia province.
Thai Moçambique Logistica is the company that won the concession for the Macuse port and railway in 2013. It was formed by the Thai company Italthai Industrial Company Limited, with 60% of the shares, the publicly owned port and rail company CFM with 20% and the private Mozambican business group Corredor de Desenvolvimento da Zambézia (Codiza), also with 20 per cent.
According to a release from the Mota Engil-CNCEC consortium the contract has a deadline of 44 months to build the railway at a cost of US$ 2.389 billion. sources: Notícias and O Pais.
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Kenya Ports Authority (KPA) reports improved container ship handling times, with a reduction of half a day in handling times at the container terminal.
KPA says average working times reached 1.93 days in the week ending 16 August. This compared favourably with an average of 2.55 days the week previously.
Equally importantly, container dwell time…
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Plans have been finalised for Japan and India to develop Special Economic Zones (SEZ) in several Africa countries, which is seen as an attempt by both Asian nations to counter the expanding Chinese footprint on the continent.
According to a report in the Hindustan Times the first SEZ will be near the Kenyan Port of Mombasa, developed jointly by Indian and Japanese interests.
The report said at least 10 Indian companies have shown interest in developing the SEZ which will focus on infrastructure, pharmaceutical, fertilisers and manufacturing.
Mombasa port is the gateway to the East African market, where Indian firms have an established historical influence. “Indian companies have large presence in the region and Japanese companies have advanced technologies, both of them coming together for Africa is a win-win situation for both countries,” the Japanese ambassador to India Kenji Hiramatsu told Hindustan Times in a recent interview.
The report said that India and Japan are “warming up to Africa in a way amid China’s rapidly expanding economic and strategic influence in the resource-rich continent.”
In particular, China’s new military base in Djibouti — the first in the region — has raised concerns in many world capitals as this suggested China’s strategic intent in the continent.
India’s involvement in large infrastructure projects in Africa is however a recent phenomenon. Japan is focusing on a ‘quality infrastructure strategy’ — aimed at countering China’s infrastructure development spree in many parts of the world.
Various estimates say that China would pump in one trillion US dollars as part of its ‘One Road One Belt’ initiative into Africa [which focuses at least initially on Kenya]. Japan’s Overseas Development Assistance to Sub-Saharan Africa was 226 billion yen in 2015 and the figure for Middle-East and North Africa in the same year was 171 billion yen. source: Hindustan Times[/restrict]
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The second ship in the MSC Cruises’ Seaside class enters the final phase of construction ready for her inaugural season in the Mediterranean
MSC Cruises, the Swiss-based world’s largest privately-owned cruise line and market leader in Europe and South America, and FINCANTIERI, heir to the great tradition of Italian shipbuilding and one of the largest shipbuilding groups in the world, last week (23 August) celebrated the float out of MSC SEAVIEW.
The ceremony took place at the Monfalcone shipyard in Italy, where the ship is being built.
MSC Seaview is the second of MSC Cruises’ Seaside generation of cruise ships, based on a highly-innovative prototype designed to bring guests closer to the sea than ever before, for warmer climates and the ultimate sun and sea cruise experience. She is set to come into service in June 2018, just six months after MSC SEASIDE will first come into service in December 2017 with her Grand Voyage from Trieste, Italy to Miami, USA.
MSC Seaview will sail her inaugural 2018 summer season in the Mediterranean, offering holidaymakers the chance to experience the jewels of this region like never before on a cruise ship. Guests will discover seven different lively ports from four countries, all without unpacking a suitcase – Genoa, Naples, Messina, Valetta, Barcelona and Marseille.
Following this inaugural season, the ship will follow the sun to Brazil and the Southern Hemisphere for the winter 2018-2019 season, with an itinerary that includes Santos, Ilha Grande, Buzios, Porto Belo and Camboriu.
Pierfrancesco Vago, MSC Cruises’ Executive Chairman, commented: “The float out of MSC Seaview is another significant milestone in the expansion of our fleet. She is part of a ten year investment plan that will have already seen the delivery of six new ships by 2020.”
“At MSC Cruises, we are truly leading the way with our ship designs, as each new class of ships that we bring into service is rooted in meeting the needs of holidaymakers of different ages, demographics and holiday desires. With MSC Seaview, in particular, our vision has been inspired by our passion for the sea and we are appealing to guests who are seeking the classic elements of a holiday – sun and sea – taken to the next level with a one-of-a-kind fully immersive and interactive seaside experience even whilst cruising at sea.”
Mr Vago concluded: “We are already the market leading cruise brand in the Mediterranean and Europe and the deployment of MSC Seaview in this key region will help us further push boundaries by bringing one of the most innovative cruise ships to an area that we are deeply committed to and is a cornerstone of our business.”
Giuseppe Bono, CEO of Fincantieri, stated: “MSC Seaview is a challenge that Fincantieri is proud to carry out successfully, as demonstrated by the milestone reached today. She is a spectacular ship, the second of a new generation that is testing all of our best technical and managerial skills, considering that the float out takes place less than nine months away from that of the prototype that launched this class of ships, MSC Seaside. These two beautiful ships require a real endeavour and our Group will deliver them to meet the high expectations of the shipowner in terms of reliability and product quality.”
The float out is a key milestone in the construction of a cruise ship, as it is the moment when the vessel is first touched by water as her dry dock is flooded and the ship is moved to a wet dock for the final phase of her construction. The exterior of the ship is now complete and work moves to complete interiors, fixtures and furnishings.
At 323 metres long and a gross tonnage of 154,000-grt, the ship will feature a maximum capacity of 5,179 guests. MSC Seaview is the second of two identical ships in the Seaside class. Her sister ship – MSC Seaside – is set to enter service later this year in November.
MSC Seaview will be the third next-generation ship coming into service in just 12 months, following on from MSC MERAVIGLIA (June 2017) and MSC SEASIDE (December 2017).
Visit www.msccruises.co.za to find out more about MSC Seaview.
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by: Berning Robertson, senior associate at Bowmans
E-commerce and online shopping are growing rapidly In South Africa with a number of well-known online South Africa retailers and international retailers. Estimates indicate that approximately R37 billion were spent online in the previous financial year by South African consumers with the US being the most popular cross border destination. These online retailers offer a host of products including books, electronics, furniture and appliances.
In addition, some of the traditional supermarkets allow you to shop online and have your groceries delivered to your doorstep without you having to face the crowds and queues at shopping centres. Online shopping does not only entail business-to-consumer transactions but also includes business-to-business transactions and even consumer-to-consumer transactions.
The benefits of online shopping includes the convenience of having goods delivered directly to your designated address, the time that you save in avoiding crowds and queues at shops and that the special savings that shops offer on goods for a limited period only are easily accessible.
The drawbacks of online shopping are that the there is a considerable waiting period for the goods to be delivered and secondly the costs associated with delivery, otherwise known as the shipping costs. The R100 that you save on a product by buying online locally can easily be offset by the shipping costs.
When buying online internationally the shipping costs are even higher, goods that appeared to be a bargain suddenly become expensive but exactly what expenses should the shipping costs cover in international sales, and how are the shipping costs allocated between buyer and seller in international sales?
Shipping costs include those costs related to the packaging of the goods at the seller’s warehouse, clearing the purchased goods for export to South Africa, freight via either ship or air, importing the goods into South Africa and paying import duty, if any, and onward delivery to the customer’s specified address.
In order to reduce or remove altogether uncertainties arising from different interpretation in different countries of the terms of an international contract of sale, certain trade terms have developed over time and they govern the place, time and manner of delivery and allocate certain costs and risks between buyer and seller and these trade terms have gained widespread acceptance.
The trade terms in widespread international use are those sponsored by the International Chamber of Commerce (the “ICC”) and called Incoterms. The ICC derived the word Incoterm from INternational COmmercial TERMS. These trade terms or incoterms that define the method of delivery and the allocation of costs and risks have evolved from and been developed by international commercial custom. The incoterms have also been further standardised by having been taken up in and explained in published format.
Parties to international sales incorporate the incoterms, and their interpretation, by way of express or tacit reference to them in their contracts of sale. Parties to an international sale of goods are of course not obliged to incorporate them in their contract and can vary the incoterms or agree on their own terms. The certainty that an Incoterm provides however makes it an attractive option to include in the international sales contract.
For example, in certain to-door deliveries that we find in online shopping, the parties may agree on the incoterm called DDP (Delivery, Duty Paid) which is most onerous for the seller, as the seller needs to fulfill his obligation to deliver the product at the named place in the country of importation. The seller has to bear the risks and costs, including import duty, freight and other charges of delivering to product to place of destination. The seller therefore accepts responsibility for the shipping costs.
Sellers may include these costs in the final sale price of the goods and then market their product as including shipping costs or “free shipping”. Alternatively, they may add it just prior to funds being deducted in the online transaction. In the online shopping environment this is an effective marketing strategy as it is unlikely that the prospective buyer will decide not to cover the costs of shipping at such a late stage and opt out of the transaction altogether.
The opposite of the incoterm DPP is the incoterm EXW (Ex Works) as this incoterm is most onerous for the buyer. If the parties agree in their international sale contract that the incoterm EXW should govern delivery, risk and transportation then the only obligation on the seller is to make the product available for collection by the buyer. It is then up to the buyer to arrange for importation to his chosen destination.
There are in total eleven incoterms that the buyer and seller can agree to. Other well-known incoterms are FOB (Free on Board) and CIF (Carriage, Insurance, Freight). If the parties agree on incoterm FOB then it is the seller’s responsibility to get the product on board a ship ready for transportation and obtaining an export license. The buyer in turn bears the responsibility and expense of conveyance of the goods, arrange importation and pay import duties. The risk also passes to the buyer as soon as the product is loaded and as a result it is the buyer that needs to arrange insurance if he so desires. If a product is sold CIF then the seller has to arrange for insurance and the freight to the buyer’s country. CIF is therefore more onerous for the seller than FOB.
In many cases, the online seller will stipulate its own bespoke terms of delivery and the costs of the shipping will be predetermined. However, certain online sites, especially those where goods are sold business-to-business or customer-to-customer incorporate specified incoterms in the international contract of sale.
One should always be aware when the risk passes to the buyer and which party is liable for insurance at any given stage as it is not always the seller’s responsibility up to final delivery. Understanding the consequences of the chosen incoterm can be of great benefit to any buyer in mitigating the risks of having any goods delivered to its chosen destination.
Bowmans is a leading Pan-African law firm. Its track record of providing domestic and cross-border legal services in the fields of corporate law, banking and finance law and dispute resolution, spans over a century.
With 400 specialised lawyers, Bowmans is differentiated by its geographical reach, independence and the quality of legal services it provides.
The firm delivers integrated legal services to clients throughout Africa from six offices (Cape Town, Dar es Salaam, Durban, Johannesburg, Kampala and Nairobi) in four countries (Kenya, South Africa, Tanzania and Uganda).
Bowmans works closely with leading Nigerian firm Udo Udoma & Belo-Osagie, and Mozambique-based boutique firm, Taciana Peão Lopes & Advogados Associados. It also has strong relationships with other leading law firms across the rest of Africa and a representative of Lex Mundi, a global association with more than 160 independent law firms across the globe.
Clients include corporates, multinationals and state-owned enterprises across a range of industry sectors as well as financial institutions and governments.
Bowmans expertise is frequently recognised by independent research organisations. The firm has been named African Legal Adviser by DealMakers for the last three consecutive years and South African Law Firm of the Year for 2016 by the Who’s Who Legal. Bowmans also won the Banking, Finance and Restructuring Team of the Year, the Employment Team of the Year, and the Property Team of the Year Awards at the prestigious African Legal Awards hosted by Legal Week and the Corporate Counsel Association of South Africa in 2016.
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CMA CGM Theodore Roosevelt has become the largest ship ever to cross the Panama Canal, on its way to New York to inaugurate the Bayonne Bridge on 7 September.
The container ship transited the canal on 22 August after having sailed from the Asian shipyards where the ship was built on 26 July.
With a capacity of 14,414 TEUs and a…
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Strong winds from the North East closed the port of Durban to incoming, sailing and shifting traffic last night (Monday), according to a notice issued by the port.
It said that winds of…
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Important step for Damen Antarctic Supply Research Vessel
Construction of the Damen Antarctic Supply Research Vessel (ASRV) has taken an important step forward with an official keel laying ceremony. Following the long-established maritime tradition of placing a coin under the vessel’s keel, the ceremony was carried out by Dr Nick Gales, Director of the Australian Antarctic Division (AAD).
The keel laying of the ASRV took place at Damen Shipyards Galati, Romania. The ceremony was attended by invited guests and business contacts, including the Romanian Ambassador to Australia Mrs Nineta Barbulescu, and CEO of Serco Asia Pacific Mark Irwin.
Placing a coin under the keel of a ship at the start of construction is a…
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QM2 in Cape Town. Picture by Ian Shiffman
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The chemical and oil products tanker STOLT APAL (33,000-dwt), accompanied by the harbour tug UTHUKELA (and blissfully ignored by two fishermen pumping for bait) heads down the Esplanade Channel leading from Maydon Wharf towards a berth at Island View where the ship was at the time of this report. Built in 2016 the 185-metre long, 29m wide Stolt Apal is owned by Hassel Shipping 4 of Norway and flagged in Cardiff, Wales. The picture is by Trevor Jones
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