Autonomous vehicles

Environmental developments you may have missed

Oct 5, 2022 | , , ,

While we continue to drive forward our ‘green’ initiatives, by selecting environmentally focused partners and further developing our MVT ECO platform in managing, measuring and offsetting carbon emissions, we also monitor ‘green’ developments that may impact our sector.

The Hydrofoil alternative to air freight

Air freight emissions account for 0.5% of global emissions and are expected to grow to 6-13% by 2050. Boundary Layer Technologies (BLT) is developing a hydrofoil fast vessel powered by emission-free green hydrogen, as a viable alternative to air.

The vessel (Argo), due to be launched in intra-Asia trade lanes in the first quarter of 2025, will carry 20 TEU, with a range of 1,500 nautical miles and cruise at 40 knots, as a replacement for short-range air freight transport.

The team behind Argo’s development claim it can replace air freight with only a small increase in door-to-door transit time and will target high-value, time-sensitive cargo like electronics, automotive parts and pharmaceuticals. It will be equipped with power to support reefer containers and offer freight prices that will be 50% cheaper than air freight, based on average 2019 rates.

Argo is intended to be powered by green liquid hydrogen fuel cells, although BLT has yet to secure a supply contract for green hydrogen and it is unclear whether dedicated pipelines for the transport of green hydrogen to the ports used by Argo will be built in time for its launch.

ARGO image courtesy of Boundary Layer Technologies (https://www.boundarylayer.tech/argo)

Sustainable aviation fuel (SAF)

SAF is similar in its chemistry to traditional fossil jet fuel and is produced from sustainable feedstocks, including cooking oil, non-palm waste oils from animals or plants; solid waste from homes and businesses, and food scraps that would otherwise go to landfill or incineration. Other potential sources include forestry waste, such as waste wood, and energy crops, including fast growing plants and algae.

Using SAF results in a reduction of up to 80% in carbon emissions over the lifecycle of the fuel compared to the traditional jet fuel it replaces, depending on the sustainable feedstock used, production method and the supply chain to the airport. 

We work closely with the Air France/KLM/Martinair SAF programme, in growing the adoption of SAF and reducing the carbon footprint of our air cargo miles. We are considering migration to programme partnership and contributions to further SAF acquisition.

Driverless electric trucks on public roads

Swedish freight technology company Einride has granted a permit in the United States for a pilot project, to test electric, autonomous trucks, which will run for two weeks in the third quarter of 2022 and take place on public roads.

The Einride autonomous electric truck operates without a driver and is monitored by a specially-trained remote driver who can take control if necessary.

Autonomous trucks will mix with normal traffic on public roads located near project partner GE Appliance’s plant near Memphis, Tennessee. 

As part of the pilot, the autonomous trucks will test moving goods, as well as loading/unloading goods with warehouse teams at nearly locations.

Image courtesy of Einride (https://www.einride.tech)

Automated container terminals

Following on from ECT, which opened in 1993 and became the first fully automated terminal in the world, a new container terminal with five deep sea berths is being developed at Rotterdam. It will add 7m teu of annual capacity when it begins operations in 2027, with 2.6km of quay at the north end of the ECT terminal.

Like ECT, the new facility will be fully automated, with vessels unloaded by autonomous cranes and cabin-less ground vehicles.

The cleanest vessel power source

The greenest of power sources, wind propulsion, has received a lot of interest as ship owners aim to reduce fuel consumption and lower CO2 emissions. Depending on the size of the sails, efficiency gained from wind propulsion assists mechanisms generally in the range of 15-20%.

Maersk’s liquid bulk division sold the Maersk Pelican to an Indonesian carrier last year, the vessel was the world’s first product tanker to incorporate wind propulsion technology into its operations.

The vessel was sold with the technology installed on board and Maersk has confirmed that it will continue to work with relevant parties to enable the use of wind propulsion technology, optimise vessel performance and reduce CO2 emissions.

From giant kites that pull cargo ships to inflatable sails to spinning rotors that create lift, the move towards wind-powered commercial vessels will generate a doubling of such ships on the water by 2023, as lines work to help meet the industry goal of cutting greenhouse gas emissions from the global fleet by 50% by 2050, from 2008 levels.

In July, Japanese  carrier K Line boosted its kite orders to five and signed a contract to install as many as 50 on its fleet of about 420 vessels, as part of its move to net-zero greenhouse gas emissions by 2050.

Giant commodity trader Cargill will pilot-test two 120-foot-high rigid wind sails made of steel and composite glass that will be outfitted on the 751-foot-long carrier that it charters and could help cut emissions by as much as 30%, which equates to about 6,400 metric tons of carbon dioxide per year. If the trial is successful, Cargill will retrofit up to 10 more ships.

There are about 12 wind propulsion systems on the market, with seven more coming online in 2023, including 37 meter rigid sails, 100-square-meter inflatable wing sails and 35 meter rotor sails.

The biggest hurdle for many shipowners is the capital investment, with rotors and rigid sails easily costing $1 million to $1.5 million each and ships often needing at least three or more. The return on investment typically is about seven to eight years, but with higher fuel costs, that time is being trimmed dramatically.

Seawing image courtesy of K Line (https://klineurope.com)

Metro has committed to Sustainability Disclosure Requirements and is achieving CO2 neutrality by measuring, reporting and offsetting our CO2 emissions.

The ‘free of charge’ Eco module, that sits in our MVT supply chain platform, monitors the energy emissions, emission costs and CO2 equivalent emissions, of our customer’s consignments, by every mode. Which means that Metro customers can monitor the environmental impact of their supply chains and participate in offset projects that will eradicate their supply chain CO2 footprint.

To request a demo or discuss your requirements, please contact Simon George, who can outline our proven carbon reduction strategies and the availability of offset projects.

Lines effectively write off 2020 peak season

Carriers stepping up Golden Week capacity cuts

Oct 5, 2022 | , ,

For much of the last two years, container shipping lines have struggled to maintain sufficient capacity to meet demand, but in recent months demand has fallen away, which means that some vessels are not fully utilised, with carriers blanking more sailings and reducing supply using various tactics.

As demand has weakened over recent months due to global events, a percentage of the world's container vessels have not been fully filled and freight rates have been under pressure, which would typically prompt tactical blank sailings, to reduce available capacity and support higher rate levels and reducing the erosion of rates on the spot markets.

Golden Week, which began on Saturday, is traditionally a time for lines to blank sailings as demand dips around the holiday, but carriers are cutting much more aggressively this year, as they attempt to artificially manage freight rates, in the face of diminishing demand. In fact some carriers have pulled whole services completely, in particular so far on the transpacific trade, but it is widely anticipated that this will be replicated with the Asia/ Europe trades in the coming weeks.

Post Golden Week capacity reductions on the Asia to North Europe trade lane are removing almost 20% of available volume, which is in line with 2019, but higher than the 2014-2018 average.

The carriers use blanking strategies, as a lever to reduce and increase capacity, but the demand outlook has deteriorated so significantly on transpacific trade lanes that lines are scrubbing services, with MSC suspending bookings for its express Ningbo and Shanghai to Los Angeles Sequoia service.

MSC’s announcement follows the closure of Matson’s China-California Express (CCX) service and suspensions of CU Lines TPX service and CMA CGM’s Golden Gate Bridge loop.

Maersk has suspended an Asia-US east coast service, with the last sailing of its TP28 pendulum service from Vung Tau, Vietnam, on the 13th October. The cut loop will be merged into Maersk’s TP20 pendulum service, with a revised rotation of: Jakarta-Vung Tau-Shanghai-Ningbo-Busan-Panama Canal-Mobile-Newark, returning to Jakarta via the Suez Canal.

Demand for US east/Gulf coast services has remained strong, with volumes up 12%, as cargo has shifted from congested west coast ports amid nervousness about the lack of a new west coast labour agreement and the continuing risk of labour dispute disruption.

Transpacific routes are barometers for North European trade lanes, which tend to mirror transpacific trends in the short term, so it is a little concerning to note that capacity reductions to the US east and west coasts range between 22% and 28% of deployed weekly capacity in the weeks following Golden Week, up 50% on 2019, and well over double the average of 2014-2018.

It is anticipated that the main container shipping lines will continue to use a variety of tools to balance supply versus demand, as the markets change at a pace not seen in recent years. We will continue to advise, report, make recommendations and advise all options available to ensure that cost effective and reliably consistent service continues, as changes continue to be made.

We negotiate long-term and FAK contracts with shipping lines across all three alliances to secure space and rates, to provide the best alternatives and options, whatever the situation. Over the last decade this has proven to be the best approach, especially during the pandemic where rates and capacity were at a premium.

By leveraging agreements across the alliances – and spot rates, when appropriate – we can often adapt port pairs and routings, to work around blanked sailings, to maintain resilient and reliable supply chains.

FXT dock

Shippers brace for Felixstowe and Liverpool walkouts – a double whammy

Sep 23, 2022 | ,

Strikes at the key container ports of Felixstowe and Liverpool commenced at the latter on the 19th September and will continue to the beginning of October, with dates overlapping for maximum disruption.

Dock workers began their planned two-week strike at Liverpool port on Monday, 19th September, while an eight-day at Felixstowe, the UK's busiest port, will begin on the 27th September.

The port of Liverpool strike will continue to the 3rd October, while the Felixstowe strike will run until the 5th October, which means that strike action will overlap for seven days, increasing the potential for disruption, while putting more pressure on London Gateway and Southampton.

The Unite Union blamed the Felixstowe Dock and Railway Company for unilaterally ending pay talks, after refusing to improve its pay offer and imposing a pay deal of 7% on the workforce.

The 7% increase was already rejected in August, which resulted in an eight-day strike at Felixstowe between Monday 22nd August and Monday 29th August.

Unite members at Liverpool port rejected a pay increase of 8.3% and a one-off payment of £750, stating that the wage increase would be a pay cut in real terms, with the union seeking a deal iro 20%.

Peel Ports argued that the basic pay of their Liverpool employees has increased above inflation by 16-26% every year for over a decade. 

The previous Felixstowe strike saw vessel calls drop from 29 to 5, with many carriers calling at alternative ports or just delaying calls to avoid disruption.

The first Felixstowe strike happened before peak shipping really got underway, but these walkouts in Suffolk and Liverpool coincide with the beginning of the peak arrivals, in late September and early October.

As with earlier disputes, we will be focused on clearing cargo from terminals ahead of strike dates. We will make use of London Gateway and Southampton when appropriate and consider alternatives like Rotterdam or Hamburg, should the situation warrant.

We are in continuous contact with all our shipping line partners to assess their contingency plans and mitigate the impact of these strikes.

We will continue to monitor and manage the emerging situation and will keep you updated should there be any significant developments.

As with previous industrial action, we are well prepared, with contingency plans in place to protect supply chains and work around points of disruption.

rail freight

Potentially disruptive rail strike averted in US, while, unfortunately, UK braces for more

Sep 22, 2022 | , ,

President Biden’s administration has averted a rail strike that would have caused further issues within the country’s fragile supply chain infrastructure, while rail strikes will recommence  in the UK from October, following the recent deferment of the original announced action.

US shippers and retailers had warned of the negative effects of a rail strike and the ‘11th hour’ contract agreement brokered by Biden’s team shows that the White House was particularly sensitive to the issue, as any strike would have had a hugely negative impact on the pending midterm elections.

Freight railroads and unions reached the tentative contract agreement for 60,000 employees just hours before a strike or lockout could have happened from midnight last Friday.

The deal brokered by the Biden administration averts a strike that had the potential to impact the country’s supply chain, by disrupting the movement of containers inland and the positioning of products throughout the country.

Shippers are relieved that the devastating nationwide rail strike has been avoided, with many applauding the Biden administration’s intervention, at a time when high inflation and economic uncertainty are challenging consumer budgets and putting business resiliency at risk.

Confidence in rail freight transportation is higher in the wake of the tentative deal and with many of the biggest volume shippers moving freight worth billions of dollars via the rail network, their dependency on reliable services is absolute.

The tentative deal means railroads and ports can unwind the contingency plans they had begun to implement ahead of the strike deadline, with inland ports resuming normal operations.

However, train strikes are set to resume in the UK, after unions cancelled their most recent planned action following the Queen’s death, with ASLEF train driver members at 12 rail companies set to strike on Saturday 1st October and Wednesday 5th October. This does also effect the movement of containers throughout the UK and puts further pressure on the inland logistics required for export and import movements, including an upsurge in demand for pure road transport, especially if the strikes are longer than 24 hours.

The Rail, Maritime and Transport (RMT) union has also announced a strike for the 1st October among its members at Network Rail and 14 train companies.

Workers are striking over pay and conditions, with unions objecting to pay offers that sit well below inflation.

RMT general secretary Mick Lynch said: “We will continue to negotiate in good faith, but the employers and government need to understand our industrial campaign will continue for as long as it takes.”

Previous rail strikes have had restricted direct impact on our container movements, but we monitor the situation closely and our transport team work closely with our rail service providers, to work around potential disruption.

If you have any questions, concerns, or would like any further information regarding the situation in the United States, please don’t hesitate to contact Kevin Lake, who leads our North American operations. 

Category: Sea

China | Coronavirus | Sea | Supply Chain

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