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Date:11 July 22 Mumbai –India

International Ports & Shipping Review

US consulate wants Russian ships barred from Mumbai coast.

India’s ongoing trade with Russia, especially imports of crude oil, has been a sore
spot with US for months. US Consulate General wrote to Mumbai Port Authority a
fortnight ago. Indian Shipping ministry asks MEA to weigh in.
New Delhi:9 July- In what can be described as the latest American attempt to discourage India from
importing cheap Russian crude oil and other goods, Mumbai’s US Consulate General wrote a letter a
fortnight ago to the Mumbai Port Authority, asking that it should not allow Russian vessels to call at
the port because of US sanctions against Russia, ThePrint has learnt.
In the wake of the Ukraine war, the US and its allies imposed strict economic sanctions against
Russia. India, however, has continued its trade with Russia, allowing cargo vessels carrying crude oil
and other commodities from the country to enter its ports.
Following the letter from the US Consulate, the Mumbai Port Authority, an autonomous body of the
Government of India under the Ministry of Ports, Shipping and Waterways, wrote to the Mumbai-

Asian Maritime News Express Page 1

headquartered Directorate General of Shipping (DGS), which deals with implementation of shipping
policy and legislation, seeking directions on what to do.
―We can’t deny permission to any ship/cargo vessel unless and until we receive directions from either
the Directorate General of Shipping or agencies like the Coast Guard,‖ an official in the Mumbai Port
Authority, who did not want to be named, told ThePrint. ―Being the regulatory authority, the DGS has
to take a call,‖ the official said.
The DGS, meanwhile, has lobbed the ball in the court of the Minist ―We have forwarded the US
Consulate General’s letter to the Ministry of External Affairs and have sought their direction,‖ Amitabh
Kumar, Director General of Shipping, told ThePrint.
Kumar said so far there has not been any direction to deny permission to ships from any particular
country from entering Indian ports. ―Vessels are free to trade if they adhere to safety protocols and do
not violate international conventions,‖ he added. Officials at the DGS and the Mumbai Port Authority
said that they haven’t heard anything from the MEA yet.
The Print reached MEA spokesperson Arindam Bagchi but he declined to comment. (Source: The
Print)

CONTAINER DWELL FEE ON HOLD THROUGH JULY 15

July 8, 2022 — The San Pedro Bay ports of Los Angeles and Long Beach will once again delay
consideration of the ―Container Dwell Fee‖ for another week, this time until July 15.

Since the program was announced on Oct. 25, the two ports have seen a combined decline of 10% in
aging cargo on the docks.

The executive directors of both ports will reassess fee implementation after monitoring data over the
next week. Fee implementation has been postponed by both ports since the start of the program. The
Long Beach and Los Angeles Boards of Harbor Commissioners have both extended the fee program
through July 28.

Under the temporary policy, ocean carriers can be charged for each import container dwelling nine
days or more at the terminal. Currently, no date has been set to start the count with respect to
container dwell time.

The ports plan to charge ocean carriers $100 per container, increasing in $100 increments per
container per day until the container leaves the terminal. Any fees collected from dwelling cargo will
be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address
congestion impacts.

The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force,
U.S. Department of Transportation and multiple supply chain stakeholders.
(Source: portoflosangeles)

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Asian Maritime News Express Page 2

 Asian Ports & Shipping Sector.

Russian firms launch chartered regular container ships to India

Mumbai-10 July-Russian companies have launched regular chartered ships to ensure the supply of
necessary goods including critical raw materials to India and China in backdrop of sanctions imposed
on Moscow after the Ukraine war impacting usual supply chains.

Chartered container shipping services have been launched between Russia and India for smooth
transfer of critical raw materials, ET has learnt.

Russian freight shipper Inteco and China-based Swift Transport Group have created joint subsidiaries
for container shipping services between Vostochny in Russia's Far East and ports in China, sources
indicated.

China spent around $19 billion to purchase Russian oil, gas, and coal in the three months till the end
of May, almost double the amount a year earlier. India spent $5.1 billion in the same period, more
than five times of the value a year ago.

India and Russia have been in talks to revive the Vladivostok-Chennai shipping corridor as part of
partnership in the Indo-Pacific region.

Meanwhile, the first consignment from Russia via Iran has reached the Indian port following
operationalisation of International North South Transport Corridor (INSTC). A consignment via eastern
branch of INSTC is on its way to India. On July 5, in a series of high-level talks, India urged Iran to
facilitate regular use of the 7,200-kilometre long INSTC. ..

When speaking at the 6th Caspian Summit in June, Russian President Vladimir Putin said that Russia
is expanding port infrastructure in the Caspian region. "First of all, we are talking about building the
International North-South Transport Corridor... This is a truly ambitious project, a 7,200-kilometre-long
transport artery from St Petersburg to ports in Iran and India," emphasised the Russian president.

An agreement between the Caspian littoral states on transport cooperation, which came into force last
year and is aimed at turning the Caspian Sea region into a major international logistics hub, is
designed to facilitate a faster launch of this corridor," said Putin. In 2021, cargo turnover between
Russia and India rose by 46.5%.(Source: Economics Times-India)

Asian Maritime News Express Page 3

First direct container ship leaves Ctg port for Italy

Dhaka-10 July-The first direct container vessel flagged off from Chittagong port for Italy today.
The Liberian flagged vessel, MV Songa Cheetah, carrying 952 TEUs of export load containers, sailed
out for Ravenna port in Italy at 2:55pm.

This is for the first time, a container vessel is carrying export cargo directly to a European destination
from the country’s premier seaport.The vessel is expected to reach Ravenna by the next 16 days,
said Mohammad Rashed, chairman of the ships’ local agent firm, Reliance Shipping and Logistics
Limited.

Talking to media at a brief ceremony held at the Jetty No. 4 of New Mooring Container Terminal,
Chittagong Port Authority Chairman Rear Admiral M Shahjahan said this shipment would be a
milestone for the country’s foreign trade.

Songa Cheetah came directly from Ravenna on Saturday carrying 945 TEUs of empty containers and
seven TEUs of import load containers and got a berth at the port jetty within two hours of its arrival.
Italian shipping company Kalypso Compagnia di Navigazione SPA has introduced this new direct
waterborne service between Chittagong and Ravenna with two small-sized vessels Songa Cheetah
and Cape Flores.

Due to the port’s inability to accommodate bigger sized vessels, export containers are currently at first
transported on small-sized feeder vessels to four transhipment ports including Colombo, Singapore as
well as Tanjung Pelepas and Port Klang of Malaysia and some ports in China and then containers are
loaded to connecting bigger mother vessels to Europe, USA and African destinations.
(Source: Daily Star Bangladesh)

Asian Maritime News Express Page 4

Use Kolkata, Haldia as ports: India advise to Bangladesh

New Delhi-9 July-India has urged Bangladesh to use Kolkata and Haldia ports for
transshipment to make coastal shipping more cost effective for bilateral trade.

The initiative will thereby shift cargo from the costly land route, and create an opportunity for
Bangladeshi garment exporters to reach European and American markets avoiding
congestion at the Chittagong port, The Hindu BusinessLine reported on October 11.

Indian customs authorities have already cleared the deck for Bangladesh to use Haldia as a
transshipment port. However, Bangladesh is yet to approve the same. The proposal was
reiterated at a ministerial meeting in Dhaka earlier this week, report said.

At the crux of the proposal is the growing need to augment handling capacities on either side,
keeping in tune with growing trade volumes.

India-Bangladesh trade grew 38 per cent to $9.1 billion over the last four years. On a year -
on-year basis, the trade grew 24 per cent in 2017 -18. This was followed by nearly 22 per cent
growth in April-July 2018.

Keeping in tune with the trend, movement of bilateral cargo through coastal shipping is also
rising. During the first six months of FY19, the port handled approximately 4,000 containers
traded between the two nations. This is higher than 3,700 boxes handled in the full year of
2017-18. But there is a problem. As the overall trade is heavily in India’s favour, the volume
of return cargo from Bangladesh is abysmally low. The low capacity utilisatio n keeps the
coastal freight rate — between Pangaon river terminal near Dhaka and Kolkata — at a high of
$13.5 a tonne.

According to Sharad Varma, Managing Director of the Kolkata -based shipping agent, B
Ghose & Co, availability of return cargo can bring do wn the freight rate by at least $4 a
tonne, helping both the sides to access each other’s market at a lower cost.

For Bangladesh there are twin opportunities Lower trade costs will boost its garment exports
to India. Categorised under HS codes 61 and 62 by the Ministry of Commerce, India’s
garment imports from Bangladesh under the two categories increased by 52 and 88 percent
respectively during April-July.

Asian Maritime News Express Page 5

The key to opportunities lies in transshipment. Majority of Bangladeshi garment exporters are
concentrated in and around Dhaka and their main markets are located in Europe and
America. Currently, goods are transported by road to Chittagong port from where it is shipped
via Colombo or Singapore.

Congestion at Chittagong

The road movement and the 10-12 days waiting period at Chittagong due to congestion,
makes this logistics costly. Moreover, international garment trade is highly time sensitive and
the congestion at Chittagong adds to the export risks. Bangladesh is expanding the capacity
of Chittagong port but it is bound to take time.

If Dhaka responds to India’s proposal, Bangladeshi exporters can send their products from
Pangaon to Haldia to be loaded on to Colombo or Singapore -bound ships.The whole process
will be completed in a maximum of three to four days.

While there is no available cost estimate, Indian officials expect shipping lines to tap the
opportunity and offer competitive rates to make the proposition viable.

―We are trying to create options to facilitate trade. As per our preliminary discussi ons with
shipping lines, transshipment operations through Haldia will be competitively priced to attract
users. The gains are shared,‖ said an Indian official. (Source: The Daily Star)

UWL and Swire Shipping Announce Seattle to Vietnam Express

July 10th, 2022-a top 10 American-owned NVOCC and leading provider of global 3PL services
and in collaboration with Swire Shipping, has introduced a new dedicated, express ocean export
service from Seattle, Washington to Ho Chi Minh, Vietnam.

Offering a 21-day transit time, this new service includes priority berthing at both origin and destination
as well as a dedicated equipment pool for suppliers in Seattle. This includes 6000 brand-new
containers, with 40-foot-high cube and 20-foot containers already in rotation.

Additionally, reefer equipment is currently being positioned in the rotation and should be available in
Seattle by July. This will help exports moving temp-controlled commodities such as apples, grapes,
and dairy products. Predictability is assured, as schedules are published 6 months in advance, with 2
sailings per month.

About UWL
UWL is a full service, asset-based global 3PL. We are fully licensed and bonded to provide freight
forwarding, customs house brokerage, ocean freight (FCL, LCL), bulk liquid logistics, supply chain
visibility, vessel chartering services and project cargo and airfreight internationally.
About Swire Shipping
Headquartered in Singapore, Swire Shipping is a leading provider of specialist customer solutions for
a wide range of cargo and aims to provide a full suite of land and ocean solutions to our customers.

(Source: Global Trade)

Asian Maritime News Express Page 6

 Indian Maritime Industry

2017 Ennore oil spill: NGT orders more relief for one lakh fishermen

After several rounds of discussions and a Madras High Court order, a compromise was
arrived at between the two shipping companies to pay Rs 240 crore compensation.
CHENNAI: More than 1 lakh fishermen who were affected by the Ennore oil spill in 2017 will get
additional compensation. The National Green Tribunal (NGT) has directed the Tamil Nadu
government to encash the bank guarantees deposited by two shipping companies and disburse
the amount proportionately to the affected persons after deducting the amount spent on restoration
measures.
"This may be overseen by a joint committee headed by the Principal Secretary of Fisheries, with
the Director of Fisheries and the District Magistrate of Chengalpattu as members. The Director of
Fisheries will be the nodal agency for coordination and compliance. The committee will be at
liberty to take assistance from any other individual/institution as may be found necessary for
executing the work," the five-member NGT bench headed by Adarsh Kumar Goel said.
The order was passed while disposing of four applications related to the collision of two cargo
ships - MT BW Maple and MT Dawn Kancheepuram - near Kamarajar port on January 28, 2017,
and the resultant damages caused.
After several rounds of discussions and a Madras High Court order, a compromise was arrived at
between the two shipping companies to pay Rs 240 crore compensation towards the claim of the
State government.
Of the total amount, Rs 141 crore was deposited towards the claim of the fishermen and Rs 15
crore was reimbursed to the government for the interim compensation paid to fishermen and also
environmental restoration projects. For the remaining, a bank guarantee of Rs 84 crore was
provided.
As per the status report submitted by the fisheries department on July 5 this month, 18 teams were
constituted to assess the exact quantum of livelihood loss suffered by various sectors. A total of
1,04,728 eligible beneficiaries were identified, to whom the first phase compensation of Rs 131.28
crore was paid.
The Relief Recommendation Committee recommended limited compensation to owners of
mechanised fishing boats, motorised fishing crafts and non-motorised fishing crafts to the
maximum of 50 per cent of the assessed value of livelihood loss and 80 per cent for fishing
labourers and fisherwomen.
Based on this calculation, another Rs 72.11 crore needs to be distributed, for which Rs 84 crore,
available in the form of bank guarantee, can be utilised, the r eport said.
However, the shipping companies argued that all the claims, including loss of ecology, restoration
cost and remedial measures, have already been taken care of by the deposit of Rs 156 crore and
no further claims were pending nor will arise in the future. The shipping companies had asked for a
refund of the bank guarantee.
This argument was rejected by the petitioner’s counsel saying the bank guarantee cannot be
returned because the original compensation preferred by the State government was Rs 240 crore
and the pending compensation dues can be paid only from the bank guarantee.
(Source: Indian Express)

Asian Maritime News Express Page 7

 Asian Logistics Sector

Tanee touts trade corridor to Laos, China after Wang Yi visit

Thailand and China will strengthen bilateral relations by building an economic corridor connecting
Thailand to Laos and China, says the Ministry of Foreign Affairs (MFA).
Tanee Sangrat, a spokesman for the MFA and director-general of its Department of Information, said
the recent visit of Chinese State Councillor and Foreign Minister Wang Yi was an opportunity to
promote bilateral relations and scale up investment in the country.
He said Foreign Minister Don Pramudwinai and Mr Wang discussed a number of strategic issues as
well as international collaboration, such as the Asia-Pacific Economic Cooperation (Apec) and the
Brics (Brazil, Russia, India, China and South Africa) Plus economic cooperation.
There was also a discussion about safety standards to ensure exported fruit are not contaminated
with Covid-19 as well as to improve service at Mohan border checkpoint in Yunnan, China.
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Both sides also discussed creating an economic corridor to further connect China to Thailand's
Eastern Economic Corridor (EEC) via Laos and China's Yunnan province.
This would allow Thailand to transport goods to Europe through China's International Land Sea Trade
Corridor to promote trade and logistic connections to link China's Chongqing in the West to
Singapore.
The department's director-general also said China has allowed Thai airlines to resume operations,
three flights a week to China, together with permission for Thai students to return to study in the
country.
So far, 135 Thai students are in the process of returning to China and hopefullMr Don also urged Mr
Wang for cooperation in suppressing call centre scam gangs -- which have caused widespread issues
among people living in Thailand -- by signing a memorandum of understanding (MoU) on cyber
security witnessed by the digital economy and society minister, said the MFA spokesman.y more will
follow suit, he said.

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 International Logistics
WAR IN UKRAINE RAISING GLOBAL SHIPPING COSTS, STIFLING TRADE

Shutterstock/Unkas Photo|A cargo crane and grain dryer in Odessa port, Ukraine.-Inland Container Depot

London-7 July-The UN Conference on Trade and Development (UNCTAD) says the war in Ukraine
is stifling trade and logistics of the country and the Black Sea region, increasing global vessel demand
and the cost of shipping around the world.

In a report entitled "Maritime trade disrupted: The war in Ukraine and its effects on maritime trade
logistics" published on June 28, UNCTAD said Ukraine's trading partners now have to turn to other
countries for the commodities they import.

It then attributed the shipping and transport hurdles in the Black Sea region to disruptions in regional
logistics, the halting of port operations in Ukraine, the destruction of important infrastructure, trade
restrictions, increased insurance costs, and higher fuel prices.

UNCTAD noted that as shipping distances have increased, so are transit times and costs.

Higher energy prices exacerbate challenges for shippers

The intergovernmental organization intended to promote the interests of developing states in world
trade also pointed out that the Russian Federation is a leading oil and gas exporter.

"Confronted with trade restrictions and logistical challenges, the cost of oil and gas has increased as
alternative sources of supply, often at more distant locations, are called upon," the report said.

It added that daily rates for smaller-size tankers, which are key for regional oil trading in the Black
Sea, Baltic Sea, and Mediterranean Sea regions, have dramatically increased.

The higher energy costs have also led to higher marine bunker prices, raising shipping costs for all
maritime transport sectors, UNCTAD said.

"According to the report, by the end of May 2022, the global average price for very low sulphur fuel oil
had increased by 64% since the start of the year," the report added.

UNCTAD said the war in Ukraine has exacerbated the rise of grain prices and shipping costs which
began in 2020.

The report added that between February and May 2022, the price paid for the transport of dry bulk
goods such as grains increased by nearly 60%.

Asian Maritime News Express Page 9

The accompanying increase in grain prices and freight rates would lead to a 3.7% increase in
consumer food prices globally, UNCTAD added.
Call to keep global trade flowing
"UNCTAD calls for urgent action to open Ukraine's ports to international shipping so the country's
grain can reach overseas markets, at lower shipping costs," the report said.

The organization says continued collaboration is needed among vessel flag states, port states, and
other actors in the shipping industry to maintain all necessary services, including bunkering supplies,
health services for sailors, and certification of regulatory compliance.
UNCTAD also says alternative ways of transport must be pursued and that easing transit and the
movement of transport workers – even temporarily – can reduce the pressure on cross-border trade
and transit. (Source: Asian Cargo News)

Intra-Asia Trade.
Chinese textile industry suffers, orders flow to Vietnam, India

Due to the shrinkage of global markets and subsequent fall in demand, Chinese Textile Industries
suffered profit erosion throughout the pandemic period and will continue to bear the loss due to rising
raw material prices, read a report by First Finance and Economics Daily of China.

The report revealed that since the onset of 2020, the textile industry has been experiencing massive
losses as the industry is unable to raise product prices due to the pandemic.

Moreover, orders are 40 per cent lower than last year, the report added.

According to the estimate of the China Chamber of Commerce for Import and Export of Textiles, the
scale of China's textile and apparel order transfer was about 6 billion US dollars in the first half of
2020, of which the cotton textile order transfer scale was about 1 billion US dollars.

Twenty-six per cent of companies underlined that the proportion of outbound customer orders was
more than 30 per cent, and 39 per cent of companies said that the proportion of outbound customer

Asian Maritime News Express Page 10

orders was between 10 per cent and 30 per cent, the report by First Finance and Economics Daily of
China stated.

Meanwhile, more than 90 per cent of the enterprises said that the current order schedule has been
shortened compared with the second half and fourth quarter of last year and almost 59 per cent of the
companies' orders are scheduled for 13 months.

As per the import and export data, the growth rate of China's apparel and home textile products
showcased a relatively obvious slowdown trend as the Industry insiders revealed that this year most
garment factories' orders will be completed by September

According to data from the US Department of Commerce, China's share of US cotton textile and apparel imports
in 2021dropped from 23.5 per cent in 2019 to 17.1 per cent, and its share of cotton apparel imports
dropped from first place in 2019 to second place, and Vietnam became the second major supplier.
China's share of US cotton textile and apparel imports slipped to 15.3 per cent, which has been
surpassed by Vietnam, Bangladesh followed by India.

Cotton textile orders are mainly transferred to India, and clothing orders are mainly transferred to
countries such as Bangladesh, Vietnam, India, Indonesia, and Cambodia. The China Chamber of
Commerce for Import and Export of Textiles recently conducted a survey on enterprises, and 85 per
cent of the enterprises indicated that the outward migration of customer orders was obvious, the
report read. .

(Source:Economic Times)

China continues to have dominant share in Australian textile imports

Despite soured diplomatic relations between the two, China continues to enjoy dominant position in
textile and apparel imports by Australia. In the first five months of this year, over 60 per cent of textile
products (apparel and home textiles) imported by Australia originated in China. In 2021 too, China
took over 50 per cent share in Australian imports.

Considering Australian apparel imports during January-May 2022, China accounted for 63.15 per cent
of total import of $2.726 billion. The other countries among top five suppliers were Bangladesh with
11.03 per cent share, followed by Vietnam with 6.1 per cent, India 3.53 per cent, and Indonesia 3.13
per cent, according to data from Fibre2Fashion’s market insight tool TexPro.

Last year, China share was 62.82 per cent in Australia’s total apparel imports of $7.382 billion. The
other countries in top five suppliers were Bangladesh, Vietnam, India and Indonesia.

In terms of home textiles imports by Australia during the first five months of 2022, China supplied
54.09 per cent of total import of $836.959 million, as per TexPro. India stood a distant second with
11.49 per cent share, followed by Singapore with 8.73 per cent, Pakistan 5.17 per cent, and
Bangladesh 3.07 per cent.

In 2021, Australia’s home textiles imports stood at $2.374 billion, of which 58.32 per cent of suppliers
came from China. India, Pakistan, United States and Bangladesh were the other suppliers among
top five.(Source: Fibre2Fashion News Desk)

India’s Foreign Trade.

Asian Maritime News Express Page 11

Nepal exports over 3,000 sacks of cement to India for first time
For the first time, Nepal has started exporting cement to India

For the first time, Nepal has started exporting cement to India. The official process began on Friday
with Palpa Cement Industries Limited exporting its Tansen brand to India. The company located at
Sunwal Municipality-7 in West Nawalparasi district hosted a special function to mark the launch. The
government in its annual budget had introduced a subsidy of 8 per cent in cash to companies
exporting cement using Nepali raw materials.

"Today, we exported some three thousand sacks of cement to India. Now onwards, we will be
exporting it as per the demand on a daily basis," said Jeevan Niruala, the public relations office of the
Palpa Cement.

Industrialists have welcomed the development as Nepal has become self-reliant on this construction
material. Over 50 cement companies operate in Nepal. Of them, 15, including Palpa Cement
Industries Limited, produce both cement and clinker.

Various reports show that the total cement production capacity of the companies is 22 million tonnes.
Industrialists say that Nepali cement products face stiff price competition in the Indian market.
Shekhar Agrawal, executive director of Palpa Cement Industries Limited, said that cement export
could slash Nepal's trade deficit with India by 15 per cent.

He said the demand for PPC cement was high compared to OPC in the Indian market, and that his
company has its own limestone ore to use for producing the cement. Palpa Cement Industries has
been producing 1,800 tonnes of cement and 800 tonnes of clinker daily while it has an installed
capacity to produce 3,000 tonnes of cement.(Business Standard)

Bangladesh among top 10 Indian wheat importer

Bangladesh was among the top 10 importing countries of Indian wheat in the 2020 -21 fiscal
year, according to the Indian commerce ministry.

India's wheat is mainly exported to the neighbouring countries and Bangladesh has the
largest share of more than 54 per cent in both volume and value terms in 2020 -21, data from
the Directorate General of Commercial Intelligence and Statistics (DGCIS) of I ndia's
commerce ministry showed.

However, the top 10 countries imported more than 99 per cent of India's wheat in 2020 -21,
reports our New Delhi correspondent.The other nine top importing countries are Nepal,
United Arab Emirates, Sri Lanka, Yemen, Afghan istan, Qatar, Indonesia, Oman and Malaysia.

Compiled by Dr.Sham Choughule through various sources for private circulation

Dr. Sham Choughule. Mumbai, India

Shamc2001@yahoo.co.in
Director (Logistics and Maritime Transport )
Association for Global Economic Development-India

Asian Maritime News Express Page 12