Ship Brokering

The shipping industry is a crucial component of the global economy, with maritime transport responsible for over 90% of the world's trade. Despite the emergence of air transport, sea transport remains a vital part of many manufacturers' supply chains, as it is a cost-effective way to move large amounts of goods and raw materials around the world. Additionally, seaborne trade is often considered more environmentally friendly than air cargo.

The success of the shipping industry relies heavily on shipbrokers, who act as intermediaries between shipowners and charterers. Successful shipbrokers are experts in the shipping industry, with a strong interest in business and a talent for developing innovative approaches and ideas. They are also excellent negotiators and influencers who are committed to delivering excellent results for their clients.

The work of shipbrokers is challenging, often requiring them to work across multiple time zones to keep up with their contacts. Even after a deal is done, the best shipbrokers continue to monitor the movements of cargo and stay up-to-date with trends in the maritime industry and the market sectors they support.

As the shipping industry continues to evolve and adapt to new technology and changing customer needs, the role of shipbrokers will remain essential in ensuring the smooth movement of goods and products around the world.

Ship brokering is a vital aspect of the global shipping industry, connecting ship owners and operators with cargo owners who need to transport their goods by sea. The role of a ship broker is to act as an intermediary between the two parties, negotiating terms and facilitating the transfer of cargo and payment. A ship broker must have a comprehensive understanding of the shipping market, including market trends, regulations, shipping contracts, and maritime law. They must also possess excellent communication and negotiation skills, as well as high levels of professionalism and ethical standards. 

The ship brokering process involves identifying the needs of both ship owners and charterers, finding suitable vessels, negotiating terms, drafting and finalizing the charter party agreement, and facilitating the transfer of cargo and payment. There are several types of ship brokering, including dry cargo brokering, tanker brokering, and chartering brokering. Each type requires specialized knowledge of the vessels, cargo markets, regulations, and contracts associated with that type of shipment. 

In conclusion, ship brokering is a complex and specialized field that plays a crucial role in ensuring the smooth flow of goods around the world. A ship broker's expertise and professionalism are essential to match the right ship with the right charterer, negotiate terms, and facilitate the transfer of cargo and payment.

In addition, ship brokers must be able to adapt to the constantly evolving nature of the shipping industry, staying up-to-date with the latest technologies and trends. This requires a continuous learning mindset and a willingness to embrace change.

Ministry of Transport announces opening of Chinese electric car market in Chile

Human Horizons

Update of Decree 26 by the Ministry of Transport will facilitate the approval in Chile of rechargeable vehicles sold in China.

A measure that seeks to enlarge the automotive industry and equate the requirements made to the different markets from which vehicles are imported, announced the Ministry of Transport and Telecommunications when announcing an update to Decree 26, which will make the approval of vehicles easier and faster the homologation of electric vehicles in the Chinese market.

Until now, electric vehicles from the Asian giant that have been marketed in Chile since 2020 had to approve their safety devices and technology according to European, Japanese or North American standards, which resulted in higher costs for manufacturers. By the way, it prevented some models that are marketed in China from being imported into our country for the mere fact of not having the validation of other markets.

Wuling Hong Guang

For the Undersecretary of Transportation, Cristóbal Pineda, this decision was made "after an exhaustive review of the existing standards in China, and which was developed during the year 2021, demonstrating that the vehicle safety elements of said origin comply with levels comparable to others markets already authorised in our country as the European one”.

The measure announced by the Government puts justice in the market, allowing all vehicles to be measured with the same yardstick. In this way, the option is opened, for example, for the arrival of models such as the Wuling Hong Guang, the best-selling electric car in China and which has brought more than a million units to the local market since its premiere in 2020. In China has a price close to 3.5 million pesos (app USD 4,400) and, if it complies with safety requirements (double airbag, ABS, ESP), it could now be offered in Chile without having to seek approval in other countries.

“What the Ministry of Transport did is update the security regulations and minimum mandatory security elements required for any origin and within the regulations that are now accepted, regulations of Chinese origin are allowed -known as GB- and without a doubt which is good news," said Diego Mendoza, General Secretary of the National Automotive Association of Chile.

Byton

This modification is very important since China represents almost 60% of the sale of electric vehicles in the world. In this line, the authority indicated that "it will be much easier for Chinese brands to enter the Chilean market and this also has a drop in prices. It is estimated that Chinese vehicles have a cost between 20% and 30% less in comparison to other producing countries.

This is a measure that responds to the need to encourage electric transportation in the midst of a climate emergency that forces people to reduce greenhouse gases. In addition, it is part of the national electro mobility policy agenda that aims for 100% of the cars sold to be electric by 2035.

Despite the fact that electric cars are positioned as a more expensive option than vehicles that use fuel, the Undersecretary of Transportation maintained that international estimates project that "in ten years prices will tend to be the same between an internal combustion vehicle and an electric one.

Source: El Mercurio & La Tercera

BYD

Shanghai lockdown threatens to halt China's car production

Chinese automakers have warned that they will have to stop production if the COVID-19 epidemic continues in Shanghai.

Shanghai's health restrictions against the spread of the disease have forced the city's 25 million residents to stay home for weeks, forcing manufacturers to close operations and making China's goal of GDP growth of 5.5% seems unattainable.

Carriers have also warned that the Shanghai closure will cause congestion at the world's busiest container port.

The spread of COVID-19 across the country, and the related slowdown in economic activity, have hit the auto industry hard, with car sales falling 10.5 percent in March.

“If supply chain companies in and around Shanghai couldn't find a way to get to work and start production faster, all OEMs would have to stop production in the month of May,” wrote Shipping Purchasing Manager.

Containers have been piling up at Shanghai's port as the city faces limited shipping capacity.

Maersk issued a notice this week saying "several vessels will bypass Shanghai" due to a shortage of available container space at the port, particularly for specialized and reefer cargoes.

Figures from Bloomberg suggest that as many as 500 ships are currently anchored off the Chinese coast.

Source: Global Trade Review & Tech Xplore

TIGER (Transforming Intelligent Ground Excursion Robot) by Hyundai

TIGER (Transforming Intelligent Ground Excursion Robot) is the newest UMV designed to function as a mobile science platform.

TIGER is completely autonomous and can even be paired with a UAV to place it in remote locations or charge batteries.

Once on the ground, TIGER's wheel and leg system allows full 360-degree directional control and all-wheel drive.

If it encounters extreme terrain, it can use its walking ability to overcome obstacles and get your supplies to your destination.

Based on a modular platform architecture, its features include a leg and wheel locomotion system, 360 degree directional control and a range of sensors for remote observation.

The vehicle is being developed by Hyundai Motor Group's New Horizons Studio in association with Autodesk and Sundberg-Ferar.

Santiago - Valparaíso high speed train and to Pudahuel airport (2019 Public Account)

The announcements in transports

During the Public Account in the National Congress, the President of the Republic Sebastián Piñera, detailed several infrastructure projects. One of the emblematics, the idea of ​​"declaring of public interest" the proposal to create a high-speed train service from Santiago to Valparaíso and San Antonio.

"Announce today that the Ministry of Public Works has declared of public interest the projects to build the much desired passenger and freight trains, which will connect the city of Santiago with the ports of Valparaíso and San Antonio and preparing us to call an international tender", said the President.

The construction would be the first high-speed train in South America, which would be available to around 7 million people. 

Although today there is a layout for railways in the Central Zone, one option is the construction of a new one, which would cross the Valley of Maria Pinto and Casablanca through three tunnels, linking Santiago with Valparaiso in a trip that is estimated to last 45 minutes approximately. At least that is the project of Tren Valparaíso Santiago (TVS), a company that has proposed to carry out the work. In this idea, the tour includes four stations: one in Valparaíso (Baron sector), another in Viña del Mar (downtown), Casablanca and finally in Maipú (Vespucio-Pajaritos).

The new project presented by AGUNSA

The new railway option would start in Mapocho station, would go through Til Til, Olmué and Limache to finish its journey in Viña del Mar and Valparaíso.

The new project was presented by a consortium of companies formed by the Spanish Talgo, AGUNSA and FCC.

Train to the airport, Line 10 and possibility of subway in regions

Another of the points that the President addressed in his speech was the connectivity problem that currently affects the Santiago airport, due to the lack of public transportation to the airport and to which it intends to provide a prompt solution. Well, although in recent years different ways of fixing this problem have been proposed, such as the extension of line 7 of the underground to the airport -a project that different experts have ruled out due to the large investment that would have to be made- or the implementation of more buses.

Piñera revealed that the option chosen by the Executive would be the creation of a train to the Pudahuel airport. On the same occasion, the President took the opportunity to inform that some Metro Lines will be extended and again showed his intention to create Line 10, which had been announced in January this year by the Head of State.

"We are promoting a profound modernization of our public transport system, which includes the duplication of the Metro network in the Metropolitan Region, going from 150 to almost 300 km, through the recently inaugurated Line 3, the new Lines 7, 8, 9 and 10, and the extensions of Lines 2 to San Bernardo, 3 to Quilicura, 4 to Bajos de Mena, 6 to Isidora Goyenechea and the train to the airport", commented the President. Additionally, the President revealed that "we have also begun studies to analyze the feasibility of building underground in other cities, starting in Concepción".

Source: EMOL

Sulphur 2020 (IMO Regulation) - What is and how it would affect International Trade

The regulations for the Prevention of Air Pollution of Ships seek to control the air emissions of ships and their contribution to local and global air pollution.

The current global limit for the sulphur content of the fuel oil of ships is 3.50% m/m (mass per mass). The regulations to reduce sulphur oxide emissions have introduced a new global limit for the sulphur content of ships, and from January  1st 2020, the new global sulphur content limit will be 0.50% m/m.

Ships can also meet SOx emission requirements using approved equivalent methods, such as exhaust gas cleaning systems or "scrubbers," which "clean up" emissions before they are released into the atmosphere.

Naturally, such compliance requirements entail additional costs and uncertainty in terms of fuel costs for shipments and shipping lines.

Although the BAF surcharge is designed to recover the increases in costs related to the bunker, these compliance costs have not been covered by any of the shipping companies.

Important container lines have already commented that these compliance costs will have to be transferred to customers and/or trade through the implementation of new fuel surcharges or an adjustment to existing ones, which may vary depending on the commercial routes.

Obviously, the first reaction of the international trade has not been favorable.

But do the shipping lines have any other option, since these regulations are aimed at improving the environment and reducing its impact for all?

New International Maritime Organization Regulation

IMO has set a global limit of sulphur content in the fuel oil used on board ships of 0.50% mass / mass as of January 1st, 2020. The implementation of this limit will significantly reduce the amount of sulphur oxide coming from the ships, which will imply important health and environmental benefits for the world, particularly for the populations near the ports.

When did the IMO adopt the rules to control air pollution caused by ships ?

IMO has worked to reduce the harmful effects of maritime transport on the environment since the 1960s. Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL Convention) was adopted in 1997 to address atmospheric pollution caused by maritime transport.

What are the limits of sulphur content provided in the rules ?

The global limit of the sulphur content of the current fuel oil of ships is 3.50% m/m. The new global limit will be 0.50% mass / mass and will be applied from January 1st, 2020.

Can this date change ?

The date appears in the MARPOL treaty. So it can only be modified by an amendment to Annex VI of the MARPOL Convention. This would require an amendment proposal to be submitted by a Member State that is a Party to Annex VI. The amendment proposal would then be circulated and finally adopted by the MEPC. An amendment to the MARPOL Convention is required to be circulated for at least six months prior to adoption and to enter into force after at least 16 months after adoption. Given that Parties in Annex VI of the MARPOL Convention decided in October 2016 to implement in the 2020 term, a proposal of this type is not expected to be presented.

So, can implantation be delayed ?

No, there can be no change in the implementation date of January 1st, 2020 as it is too late to modify the date and for a new date to take effect before January 1st, 2020.

However, IMO Member States will work in relevant IMO technical bodies to address all issues that may arise with respect to ensuring consistent implementation.

When was the date of January 1st, 2020 decided ?

The date of January 1st 2020 was established in the rules adopted in 2008. However, a provision was adopted requiring IMO to conduct a review on the availability of low sulphur fuel to use by ships, with the aim to assist Member States in determining whether the new lower limit to the global limit of sulphur emissions from international maritime transport could effectively enter into force on January 1st 2020 or be deferred until January 1st 2025.

The IMO Marine Environment Protection Committee (MEPC 70), in October 2016, decided the limit of 0.50% will apply as of January 1st, 2020.

What will this new maximum limit mean for ships ?

With the new maximum limit, vessels must use on board fuel oil with a sulphur content not exceeding 0.50% mass / mass, compared to the current limit of 3.50%, which has been in force since January 1st 2012.

The interpretation of "fuel oil used on board" includes that used in main and auxiliary engines and in boilers.

How can ships comply with low sulphur emission standards ?

Vessels can comply with the prescription using fuel oil with a low sulphur content.

In addition, an increasing number of ships also use gas as fuel, since the emissions of sulphur oxides they produce are of negligible nature, which has been recognized in the elaboration of the International Code for ships that use gas or other low-flash point fuels (IGF Code), which was adopted in 2015.

Another alternative fuel is methanol, which is used in some short sea shipping services.

Vessels can also meet the requirements for SOx emissions by using some of the approved equivalent methods, such as exhaust gas cleaning systems, or "scrubbers" that "clean up" emissions before they are released into the atmosphere. 

What controls will be put in place once the global limit comes into force ?

Ships that have fuel oil for use on board ships must obtain a fuel delivery note, which will establish the sulphur content of the fuel oil supplied. Samples may be taken for verification.

Each Flag State will have to issue to ships an International Air Pollution Prevention Certificate (IAPP Certificate).

This certificate includes a section indicating that the vessel uses fuel oil with a sulphur content that does not exceed the applicable limit value as recorded in the fuel delivery notes, or that uses an equivalent provision.

Port States and riverbanks may use supervision by the Port State to verify that the ship complies with the rules. They could also use surveillance - for example, aerial surveillance - to evaluate smoke columns and other techniques to identify possible infractions.

What sanctions will be applied in case of non-compliance ?

Sanctions will be established individually by the Parties to the MARPOL Convention as flag States and port States. The IMO does not establish sanctions or fines: it is up to each Party.

What additional measures will be put in place to encourage a consistent  implementation ?

The implementation belongs to the field of competence and responsibility of the Administrations of flag States (States governing ports / coastal States). Ensuring uniform and effective implementation of the sulphur content limit of 0.50% mass / mass by 2020 is a high priority.

What is currently the average sulphur content in the fuel oil used on board the ships ?

IMO monitors the sulphur content of the fuel oil used on board ships worldwide. Samples are taken of residual fuel oil (the "heavy" fuel normally used in ships), as well as of the distillate fuel ("light" fuel, with low sulphur content, which is normally used in emission control areas that have limits stricter for sulphur emissions).

The latest figures showed that the average sulphur content of the residual fuels analyzed in 2016 was 2.58%. The average sulphur content worldwide of the distillate fuels was 0.08%.

Where can I find more information related to the sulphur rules ?

Find more information here: 

IMO - Pollution prevention

Source: International Maritime Organization (IMO)