Slow Steaming (SS) or Super Slow Steaming (SSS) for Container Shipping Part II

Although slow steaming or super slow steaming saves shipping lines’ fuel cost, it does not benefit certain exporters who consider transit time is their enemy.

According to Stuff.com.nz, New Zealand meat exports, a $1 billion business per year, worries about slower speed shortening their meat’s shelf life when delivering to major companies in Europe, such as such as Marks & Spencer, Tesco and Waitrose.

Take chilled lamb as an example, the shelf life is approximately 70 days. The transit time from New Zealand to major cities in Europe takes:

~ 7 days preparation in New Zealand & to its port.

~ 32 days normal speed service from Maersk

OR

~ 40 days slow steaming service from other shipping lines.

(New Zealand ---> Southeast Asia ---> Europe)

~ 10 - 14 days from distribution networks in Europe to consumer markets.

From quickest 49 days to slowest 61 days transit time, chilled exporters only have about 10 to 20 days of shelf-life before selling the chilled lamb.

While exporters cannot control the new “normal” transit time on waters, they can manage shorter preparation and distribution time on your supply chain at origin and destination, including an experienced and efficient freight forwarder and customs broker. We believe Universal Cargo Management can be one of your supply chain partners and give you an edge on a fast-paced logistics world.

Slow Steaming (SS) or Super Slow Steaming (SSS) for Container Shipping Part I

2010 was the year our operations received the most roll-over notices and delay arrival-to-port notices. After reading several news reports, slow steaming (SS) or super slow steaming (SSS) plays a major part on the containers arriving late to ports.

What is slow steaming or super slow steaming?

It is used to reduce the speed at which ships travel.

Why slow steaming? How does it affect the supply chain business?

“A combination of the recession and growing awareness in the shipping industry about climate change emissions encouraged many ship owners to adopt "slow steaming" to save fuel two years ago. This lowered speed from the standard 25 knots to 20 knots, but many major companies have now taken this a stage further by adopting "super-slow steaming" at speeds of 12 knots (about 14mph).”¹

“In some cases, freighters are taking as many as 15 days to make a Pacific crossing that used to take 11 days…Sailors grumble that it's making long voyages even more tedious. Some ships are crawling at just 12 to 14 knots, or about 14 to 16 mph. Many cargo ships are capable of moving at nearly twice that speed.

A typical 8,000-container ship traveling at 21 knots will burn 125 metric tons of fuel to go 500 nautical miles, said Lee Kindberg, environmental director for Maersk North America. The same ship will need just 80 metric tons of fuel to travel the same distance if the speed drops to 15 knots.”²

What are the benefits to shipping lines & to our environment?

“For the 6,310-nautical-mile voyage from Hong Kong to Long Beach at current bunker fuel prices, that's a potential savings on fuel of $250,000, according to Maersk.

Slow steaming absorbs a significant portion of the world fleet and should improve reliability," said Wolfgang Freese, president of Hapag-Lloyd America, the U.S. arm of the Hamburg, Germany, conglomerate that ranks sixth in the world among ocean shipping lines. "We see no, or very little, risk to the supply chain," he told a recent shipping conference in Long Beach.”²

“Maersk, with more than 600 ships, finds that super-slow speeds reduces fuel consumption and is believed to have saved the company more than US$102 million on fuel since the measure was introduced.

Maersk spokesman Bo Cerup-Simonsen said "The cost benefits are clear. When speed is reduced by 20 per cent, fuel consumption is reduced by 40 percent per nautical mile. Slow steaming is here to stay. Its introduction has been the most important factor in reducing our CO2 emissions in recent years, and we have not yet realized the full potential. Our goal is to reduce CO2 emissions by 25 percent."³

How does it affect importers?

“Mona Williams, Vice President for buying at the Container Store, said the company was telling manufacturers to book space well in advance and that it was moving delivery dates earlier.

And for items that simply must arrive, well, there are ways to do it. “Sometimes you can offer to pay a steamship company a larger amount of money, and they might take somebody else’s container and not put it on,” said Jeffrey Siegel, the chief executive of Lifetime Brands, but “in most cases, you just have to wait.

To play it safe, Mr. Siegel has started scheduling items to arrive as long as three months before they need to be in stores. That means a higher cost for holding inventory than usual, but interest rates are relatively low, and he would rather have the goods in hand, he said.”³

“Some supply experts say complaints have been muted because of the weakness of the economic recovery, but Jon DeCesare, Chief Executive of World Class Logistics Consulting Inc., predicts that concerns will be heightened once consumers are spending more freely.

"When the economy picks up, the last thing retailers are going to want are unexpected delays. They cannot afford to be out of stock," DeCesare said.”²

1: “The Observer” http://www.guardian.co.uk/environment/2010/jul/25/slow-ships-cut-greenhouse-emissions

2: “The Los Angeles Times” http://articles.latimes.com/2010/jul/31/business/la-fi-slow-sailing-20100731

3: “Seeking Alpha” http://seekingalpha.com/article/216899-slow-steaming-to-affect-retailers-as-shipping-supply-and-demand-are-out-of-whack

Shipping Containers have Multipurposes: Innovative Ways to Build, Decorate & Recycle (pictures re-posted from dailygreen.com & inhabitat.com)

As logisticians, we coordinate and arrange containers’ deliveries every day from one point to another point around the world. However, containers can become a business store, our living shelters, regardless of rich or poor or even a playground.

Will the next Universal Cargo Management’s office be built by containers?

Wanna see how efficient an ocean vessel transports your cargo(es) from one place to another place. Now you can thanks to the initiative from the Carbon War Room.

Shippingefficiency.org records about 60,000 international vessels based on the United Nations' International Marine Organization’s (IMO) Energy Efficiency design Index (EEDI) & Clean Cargo Working Group (CCWG) index.

It’s a highly informative site to let each logistics parties know their greenhouse emission when producing goods & making business decision.

Take the world largest shipping vessel, Emma Maersk, as an example, it has EEDI grade C rating (A is the best; G is the worst) & CCWG grade A rating.

Blue Eco-friendly Containers

Next time, if you see a blue container, don't just think of "Maersk Line" container. It may be one of the 400 eco-friendly prototype containers being tested and used in the real world.

After researching and testing, the Institute of International Container Lessors (IICL) introduced 2 types of eco-friendly containers in September and October 2008.

The objectives are:
1. Reduction of wood in container floor.

2. Application of water-based exterior paints.

3. Eco-friendly production that are relatively subtle and cost neutral to the industry.

The 2 selections being tested are:



1. A pattern of every other wood blank separated by a steel strip that runs the length of the container, which IICL calls the “omega”.



2. The “tunnel” pattern which includes a wide steel strip up the middle of the box with wood planks on both sides.

Traditional Containers:
All-wood container floor
Solvent-based paint

Advantage: dry within 24 hours even in extreme humidity

Disadvantage: adverse effects on earth ozone layer.

Eco-friendly Containers
Half wood, half steel plating
Support folk lifts and heavy cargo
Allow blocking materials to be nailed into the floor
Meets IICL and classification society criteria
Low-solvent, non-zinc water-based paint

Advantages:
Allows Hydrocoat to be applied inside without harsh paint fumes. reduces the risk of toxic solvent exposure.

Disadvantages:
Require temperature and humidity control for drying.
Unknown about the tolerance of salty, moist air on ocean waters.

So, if you use one of these 400 blue containers next time and want to write a comment, you can send it to Universal Cargo Management and we will forward it to IICL and/or its shipping line.

Furniture to be Greener, but Pricier

With a new law (S.1660 - Formaldehyde Standards for Composite Wood Products Act) passed by President Obama, USA Today reports that we will embrace for more expensive furniture in the coming years. Here’s the excerpt:

“Formaldehyde, which is used in many building materials, is linked to cancer and has long been known to cause respiratory problems.”

“Particle board, which is created using sawdust, wax and formaldehyde-based glue, is often used in inexpensive furniture and cabinets and can contain high formaldehyde levels.”

“Some Chinese plywood, also used in low-priced furniture, also can contain high levels of formaldehyde to compensate for excessive moisture during production. Domestic hardwood plywood, considered to be among the highest-quality materials available to make furniture and cabinets, is dried using costlier techniques that eliminate the need for glue containing formaldehyde to bond the plies.”

“Prices for plywood and particle board could increase from 3% to 15%, but notes that this wood is only a small part of the total cost for a piece of finished furniture.”

“ California officials just extended the deadline until Dec. 31, 2011, for stores in that state to sell furniture and cabinets that surpass formaldehyde limits.”

For more detail about the news, please go to the link below or attached PDF.

www.usatoday.com/money

For more detail about the law, please go to: www.opencongress.org

The Carbon Footprint the 2010 World Cup

2010 FIFA World Cup recently completed. What have left are Spain’s celebration, fans unforgettable memories and about 2.75 millions tons CO2 emitted into our atmosphere. Let’s convert this 2.75 millions ton CO2 into some comparable & concrete numbers.

The carbon footprint the 2010 World Cup:
2.8 million tons of CO2, which is equivalent to:

• 6 times more CO2 than in 2006 World Cup in Germany
• 1 million cars operated over a year
• 6,000 space shuttle fights
• 10 billion cheeseburgers manufactured

Why was it so much CO2 in this season’s World Cup in South Africa ?

• Not too many direct flights: all people have to take multiple stops before arriving Johannesburg , South Africa .
• 70% of electricity are come from burning coal.
• Lack of train or subway networks: fans have to drive their own vehicles or take all kinds of buses.
• Hotels are not as green & efficient as World Cup in Germany, using 4 times more energy.
• Sponsors were not keen on sponsoring carbon-neutral projects.

Sources: Feasibility Study for a Carbon Neutral 2010 FIFA World Cup in South Africa

The Guardian “What's the carbon footprint of ... the World Cup?”, http://www.guardian.co.uk/environment/green-living-blog/2010/jun/10/carbon-footprint-world-cup