Trans-Atlantic Market: OCEAN ALLIANCE &
new service first sailings, Existing services last sailings
Dear Valued Customer,
With April around the corner, we are pleased to share with you the first sailing details of APL’s OCEAN ALLIANCE and new services on the Trans-Atlantic trade, offering:

• Comprehensive coverage between North Europe, West Mediterranean, U.S. East Coast and Mexico Gulf
• Superior transit time from Benelux gate-ways to Mexico and U.S. Gulf
• Leading transit time from Genoa and Valencia to Norfolk and Savannah
• Unrivalled transit time from Le Havre to Norfolk
• U.S. West Coast all water direct service providing direct connections between major North European & Californian ports
• Industry leading transit times from North Continental Europe to U.S. West Coast gateways

OCEAN ALLIANCE and new service first sailings on the Trans-Atlantic trade

Note: 1. Tandem sailing apply for AGX’s first sailing only
Note: 2. Excludes port of Charleston and Savannah
Note: 3. Excludes port of Le Havre, Miami, Houston and New Orleans
Note: 4 & 5. ECX is a non-OCEAN ALLIANCE service. First sailing information is subject to change
As we begin the transition, please find below the last sailings of APL services that will be retired with the commencement of OCEAN ALLIANCE, including those under G6 Alliance.
Last voyage of existing services

We’re moving on 3/24
New address:
21 Drydock Ave, Ste 510W
Boston MA 02210
All phone numbers will remain the same

Container Shortages in Thailand
Please be aware of serious container shortages in Thailand, especially in the Laem Chabang area, caused mainly by the congestion in the terminal which has led to the port authority controlling empty repositions into Laem Chabang.
There is no official notice from carriers for this situation, and carriers are not able to give us a time line for when the situation will be improved. But they encourage customers to pick up containers at Bangkok and Lat Krabang, when possible, where the waiting time will be much less (waiting time can still be 4-6 hours).
It is recommended to place bookings as early as possible to give all parties more time to secure space and equipment locally.

 
Maersk Line, Hapag-Lloyd Among Carriers Subpoenaed in U.S. Price-Fixing Probe
Justice Department investigators crashed a meeting of the world’s biggest container-shipping operators
By
COSTAS PARIS and
 
PAUL PAGE
Updated March 21, 2017 3:42 p.m. ET
U.S. Justice Department investigators crashed a meeting of the world’s 20 biggest container-shipping operators and gave subpoenas to top executives at several companies as part of a probe on price fixing, people with knowledge of the matter said.
Maersk Line, a unit of Danish conglomerate A.P. Moller Maersk A/S and the world’s biggest container-shipping line, confirmed it was subpoenaed during the so-called Box Club meeting in San Francisco last Wednesday. Germany’s Hapag-Lloyd AG also said it was handed a subpoena by Justice Department investigators.
The people familiar with the investigation said that many of the CEOs at the meeting were given subpoenas, while investigators went to the U.S. offices of other smaller operators.
The probe is the latest in a series of investigations by regulators around the world into possible price fixing as the largest ocean carriers have grouped into three major alliances, sharing port calls and vessels in an effort to save billions in annual operating costs. The alliances will begin operations in April and move about 90% of all cargo across the world’s major trade routes.
A Maersk Line spokesman said the subpoena didn’t “set out any specific allegations.” Maersk and Hapag-Lloyd said they would cooperate fully with the U.S. authorities.
A Justice Department spokesman declined to comment. News of the raid was earlier reported by the Journal of Commerce.
The investigation comes as industry analysts say ocean freight rates have recovered strongly from a deep trough in early 2016 that sent carrier earnings into a tailspin, and that shipping prices have been rising at a steep pace this year.
London-based Drewry Shipping Consultants Ltd. said in a recent report that freight-shipping prices from Europe to Asia rose sharply early this month amid reports by shipping lines that ships were full, something Drewry termed “highly unusual” on routes where capacity is usually plentiful.
Patrik Berglund, chief executive of Norway-based container-shipping analysts Xeneta, said freight-shipping prices under recent long-term contracts for moving goods from Asia to the U.S. West Coast are up nearly 50% from rates negotiated in early 2016.
Carriers have been able to raise prices since last year by idling ships, he said, and were helped in part by the collapse of South Korea’s Hanjin Shipping Co. last year. Shipping lines accelerated their withdrawal of ships during the period leading to this year’s Lunar New Year, when China’s production and exports typically slip.
But, Mr. Berglund said, “We don’t see the net reduction of capacity being significant enough for the uptick” in prices.
In the Asia-to-Europe route, the world’s busiest, freight rates have averaged $960 per container this year compared with $695 in 2016, according to brokers in Singapore and Europe.
Operators say anything below $1,400 per box on the route is unsustainable and have repeatedly denied price-fixing allegations.
The low freight rates and anemic trade demand resulted in around $5 billion in combined losses among the top 20 container lines last year, according to shipping executives. Korea’s Hanjin, at one time the world’s seventh-largest container-shipping line, filed for receivership last August as a result of the downturn.
The Justice Department probe is the latest in a series of investigations by watchdogs in the U.S., European Union, China, Australia and South Africa. Many such probes end without prosecutions.
The most recent Justice Department prosecution came last year in a Baltimore case when four global ferry operators pleaded guilty to price-fixing charges and were fined $230 million in total, with some executives getting prison terms.
Then-Federal Maritime Commission Chairman Mario Cordero said in December as the regulatory body approved one of the carrier groupings, called THE Alliance, that the commissioners “will continue to carefully focus on the impacts of the carrier alliance restructuring that is taking place in the shipping industry.”
Write to Costas Paris at costas.paris@wsj.com and Paul Page atpaul.page@wsj.com
Appeared in the Mar. 22, 2017, print edition as ‘U.S. Probes Price Fixing In Shipping.’

Weather update – Delivers Expected Throughout the Northeast
Mar 13 2017 11:00 AM EDT | weather.com
Blizzard warnings have been issued for a part of the Northeast coast, including New York City, in advance of Winter Storm Stella which will hammer the Northeast with more than a foot of snow and strong winds Monday night-Tuesday. Stella will also deliver a swath of snow to the Midwest through Monday.
This major nor’easter will take shape as a strong area of low pressure develops off the East Coast late Monday in response to jet stream energy moving through the eastern states. That low may undergo bombogenesis as it moves northward along the coast through Tuesday night, meaning there will be a rapid drop in atmospheric pressure which indicates strengthening.

The National Weather Service has issued the blizzard warning from northeast New Jersey to far southeast New York and southern Connecticut.
Winter storm warnings are also in place across other parts of the mid-Atlantic and Northeast, including Boston, Philadelphia, Baltimore and Washington D.C. In addition to the winter storm warning, a blizzard watch is in effect for portions of eastern Massachusetts and Rhode Island.
Storm totals of a foot or more are likely in a widespread swath of the Northeast region, which will bring travel to a standstill on roads and at airports. Strong winds could cause tree damage and power outages in the Northeast, as well.
One trend in the latest forecast data is that the low may now track closer to the coast. That could cause some locations, including near parts of the Interstate 95 corridor, to change to rain or sleet for a time during the storm and cut down on accumulations where that occurs.
Below, we have the forecast for impacts in the Northeast followed by an overview of what to expect from Stella in the Midwest.
Stella’s Northeast Timing
Monday Night

• Snow will begin to develop in the mid-Atlantic region, including Washington, D.C., Baltimore and Philadelphia, as the coastal low from Stella develops and intensifies.
• The snow could be heavy at times overnight with rates of 1 to 2 inches per hour.
• Locations near Interstate 95, including parts of the Washington, D.C. and Baltimore, could change to rain or sleet for a time.
• By late Monday night or early Tuesday morning, snow may develop as far north as New York City or southern New England.
• Light to moderate snow will also impact the eastern Great Lakes region.
• Travel should be avoided Monday night in all of the above-mentioned areas.

Tuesday

• A large swath of the Northeast will see snowfall, heavy at times, from Stella during the daytime hours.
• Snowfall rates of 1 to 4 inches per hour are possible near and northwest of the Interstate 95 corridor.
• Blizzard or near-blizzard conditions are possible in coastal areas.
• Road and airport travel are likely to be snarled across the region. Some roads may become impassable.
• Strong winds (gusts over 40 or 50 mph), and the weight of the snow could cause some tree damage and power outages.

Tuesday Night – Wednesday

• Snow, heavy at times, will continue throughout much of New England Tuesday night.
• Farther south, snow will become lighter overall, but gusty winds will continue and contribute to blowing snow.
• On Wednesday, lighter snowfall and gusty winds will continue across the Northeast region, but the worst of the storm will be over.
• Cold temperatures will continue through Thursday after Stella departs, making for icy conditions on untreated roads and other surfaces.

How Much Snow to Expect in the Northeast?
Heavy snowfall accumulations are likely in the Northeast region from Stella, though the exact track of the low is still somewhat uncertain. Therefore, keep in mind the forecast totals shown on our graphic below could change depending on the exact track of Stella and its evolution.
The latest forecast guidance suggests the low will track far enough west to change some coastal areas to rain or sleet for a period of time. All snow is likely to the west of Interstate 95.

• A foot or more of snow is possible along and especially west of the Interstate 95 corridor from Stella, including Albany, New York, Boston, Hartford, New York City, Portland, Maine, Scranton, Pennsylvania, and Worcester, Massachusetts. It’s not out of the question that some locations may pick up 18-plus inches of snow from Stella.
• In portions of the mid-Atlantic, including Washington D.C., Baltimore, the Delmarva peninsula and southern New Jersey, snow amounts are still somewhat uncertain and dependent on where the rain/snow transition line sets up. The best potential for a foot of snow is likely to be northwest of the Interstate 95 corridor in this area.
• Snowfall rates of 1 to 4 inches per hour are possible during the height of the storm in the most intense bands.
• Blizzard or near-blizzard conditions, with wind gusts to 50 mph, may occur Monday night through Tuesday in the blizzard warning area.
• Poor travel conditions will also exist in other parts of the Northeast due to gusty winds causing blowing snow and low visibility.

This may be the heaviest snowstorm so far this season in Boston and New York City, which saw 9.4 inches and 10.9 inches from Winter Storm Niko on Feb. 9, respectively.
New York City has seen 36 winter storms since 1869 that have produced a foot or more of snow, according to the National Weather Service. Just four of those storms have occurred in March, with the last to do so March 3-4, 1960.
Coastal Flooding Possible
Coastal flooding may also become a problem from the Delmarva peninsula and Jersey Shore to Long Island, Cape Cod and the islands Tuesday and Tuesday night as strong, potentially damaging winds from the south and east push water ashore in those areas. Tides on Tuesday may run 2 to 3 feet above average and coastal erosion is likely.
Wave heights on the ocean waters off the coast are forecast to range from 12 to 18 feet, with breaking waves of 6 to 9 feet at the shore, especially along the Atlantic-facing Delaware and Jersey beaches.
In addition, widespread flooding of vulnerable shore roads may lead to numerous road closures in coastal areas.
Stella’s Midwest Forecast
As mentioned before, Stella is also impacting the Midwest with light to moderate snowfall accumulations across a large part of that region through Monday.

Many cities in the southern Great Lakes will see at least light snowfall amounts of a few inches.
Lake-effect snow could continue in northeast Illinois and southeast Wisconsin, including Chicago and Milwaukee, into Tuesday. Locally heavy accumulations are possible in persistent bands of snow.
Chicago’s O’Hare Airport had picked up 2.2 inches of snow from Stella as of Monday morning, ending a record streak without an inch of snow cover. The Windy City last had an inch of snow on the ground on Christmas Day.

Below is a recap showing some of the top snow totals from Stella in each state for the Midwest as of late Monday morning.
Illinois: 5.2 inches near Moline, 5.1 inches in Gurnee
Iowa: 13 inches in Ringsted, 8.8 inches in Waterloo
Michigan: 4 inches in Belleville
Minnesota: 12 inches in Currie, 6.5 inches in Rochester, 3.7 inches at Minneapolis/St. Paul Int’l Airport
North Dakota: 4 inches in Watford City and Ashley
South Dakota: 10 inches near Watertown, 9 inches in Aberdeen
Wisconsin: 8.8 inches in Elmwood Park, 5.5 inches in Racine
Stella’s First Phase Recap: Snow Dusts the South
Parts of the South saw snow from Stella’s first phase Saturday into Sunday.
Up to 5 inches of snow was reported near Cave City, Arkansas, and 4 inches was measured in Paris, Tennessee.
Sunday morning, parts of north Georgia, North Carolina and northern South Carolina saw snow from Stella. Most of the accumulations were on grassy and elevated surfaces.
Snow was even observed as far south as Columbia, South Carolina, Sunday morning. The National Weather Service said this was just the 17th time it has snowed there in March, dating to 1888.
PHOTOS: Winter Storm Stella

“THE Alliance” Final Product/Port Rotations & Contingency Plan
March 9, 2017
Port rotations of 32 services finalized / First contingency mechanism of an alliance for case of financial distress of a partner / More safety for customers’ cargo
THE Alliance announced its final network after all needed preparations have been finalized. The product starting from April 2017 features fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships. This is thanks to the “best ship for the loop principle” and a dedicated shuttle service design. More than 240 ships will be deployed in 32 services connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub Continent and the Middle East with a wide range of direct port-port-connections.
Trans Pacific – West Coast
PN 1:
Qingdao – Shanghai – Nagoya – Tokyo – Tacoma – Vancouver – Tokyo – Nagoya – Kobe – Qingdao
First Sailing Qingdao: “TBN”  April 07, 2017
First Sailing Tacoma: “TBN”  April 25, 2017

PN 2:
Singapore – Laem Chabang – Cai Mep – Kaohsiung – Yantian – Tacoma – Vancouver – Tokyo – Kobe – Kaohsiung – Singapore
First Sailing Singapore: “TBN”  April 01, 2017
First Sailing Tacoma: “TBN”  April 24, 2017

PN 3:
Hong Kong – Yantian – Ningbo – Shanghai – Pusan – Vancouver – Seattle – Pusan – Hong Kong
First Sailing Hong Kong: “Seaspan Zambesi”  April 05, 2017
First Sailing Vancouver: “Seaspan Zambesi”  April 27, 2017

PS 1:
Kobe – Nagoya – Tokyo – Sendai – Los Angeles / Long Beach – Oakland – Tokyo – Nagoya – Kobe
First Sailing Kobe: “TBN”  April 05, 2017
First Sailing Los Angeles: “TBN”  April 21, 2017

PS 2:
Kobe – Nagoya – Shimizu – Tokyo – Los Angeles / Long Beach – Oakland –Tokyo – Kobe
PS 3:
Singapore – Laem Chabang – Cai Mep – Hong Kong – Los Angeles / Long Beach – Oakland – Tokyo – Hong Kong – Singapore
First Sailing Singapore: “TBN”  April 08, 2017
First Sailing Los Angeles: “TBN”  May 04, 2017

PS 4:
Hong Kong – Yantian – Kaohsiung – Keelung – Los Angeles/Long Beach – Oakland – Keelung – Kaohsiung – Da Chan Bay – Hong Kong
First Sailing Hong Kong: “YM Mobility”  April 09, 2017
First Sailing Los Angeles: “YM Mobility”  April 27, 2017

PS 5:
Shanghai – Ningbo – Los Angeles/Long Beach – Oakland – Shanghai
First Sailing Shanghai: “NYK Argus”  April 07, 2017
First Sailing Los Angeles: “NYK Argus”  April 23, 2017

PS 6:
Qingdao – Ningbo – Shanghai – Pusan – Los Angeles/Long Beach – Oakland – Pusan – Qingdao
First Sailing Qingdao: “Hong Kong Bridge”  April 07, 2017
First Sailing Long Beach: “Hong Kong Bridge”  April 27, 2017

PS 7:
Xiamen – Hong Kong – Yantian – Los Angeles/Long Beach – Xiamen
First Sailing Xiamen: “MOL Breeze”  April 08, 2017
First Sailing Los Angeles: “MOL Breeze”  May 01, 2017

PS 8:
Dalian – Xingang – Qingdao – Pusan – Los Angeles/Long Beach – Oakland – Pusan – Kwangyang – Dalian
EC 1:
Ningbo – Shanghai – Pusan – Tokyo – (Panama Canal) – Manzanillo – Savannah – Jacksonville – Charleston – Norfolk – Miami (Seasonal) – Manzanillo – (Panama Canal) – Balboa – Los Angeles / Long Beach – Oakland – Tokyo – Kobe – Ningbo
First Sailing Ningbo: “TBN”  April 08, 2017
First Sailing Savannah: “TBN”  May 08, 2017

EC 2:
Qingdao – Ningbo – Shanghai – Pusan – (Panama Canal) – New York – Boston – Wilmington – Savannah – (Panama Canal) – Pusan – Qingdao
First Sailing Qingdao: “Helsinki Bridge”  April 04, 2017
First Sailing New York: “Helsinki Bridge”  May 04, 2017

EC 3:
Kaohsiung – Xiamen – Hong Kong – Yantian – Shanghai – (Panama Canal) – Savannah – Norfolk – (Panama Canal) – Balboa – Pusan – Kaohsiung
First Sailing Kaohsiung: “TBN”  April 07, 2017
First Sailing Savannah: “TBN”  May 10, 2017

EC 4:
Kaohsiung – Hong Kong – Yantian – Cai Mep – Singapore – (Suez Canal) – New York – Norfolk – Savannah – Jacksonville – Charleston – (Suez Canal) – Singapore – Kaohsiung
First Sailing Kaohsiung: “Northern Jupiter”  April 07, 2017
First Sailing New York: “Northern Jupiter”  May 09, 2017

EC 5:
Laem Chabang – Cai Mep – Singapore – Colombo – (Suez Canal) – Halifax – New York – Savannah – Norfolk – Halifax – (Suez Canal) – Jebel Ali – Singapore – Laem Chabang
First Sailing Laem Chabang: “Ningbo Express”  April 08, 2017
First Sailing New York: “Ningbo Express”  May 09, 2017

Vessels indicated in this newsletter are subject to change.
Through this robust network, THE Alliance will offer a superior, reliable, efficient, and wide ranging product suite to shippers in the East/West lanes. The partners of THE Alliance will keep monitoring customers’ demand and will react to markets if needed.
Furthermore, the members of THE Alliance announced today a new and unique contingency plan in the unlikely event a member of THE Alliance suffers a bankruptcy. The five member lines will establish an independent trustee to manage funds to be used in the case there is insolvency within the group. It is envisioned that the fund will be used to continue alliance operations in the event of insolvency of one or more member lines. The independent trust fund shall safeguard that customers’ cargo on board of the affected members’ ships will be carried to the port of destination. “Customers’ reaction to the incident last summer showed a clear demand for such a safety net and the partners of THE Alliance are proud to present the first contingency plan of its kind in liner shipping”.

Ocean carriers warn of cargo diversions as port strikes loom
By Alexander Whiteman
02/03/2017
Maersk Line has warned shippers that some cargo will be re-routed or diverted to avoid strikes in Spanish ports.
In response to the  labour disputes in Spanish ports next week, the carrier will divert westbound services to avoid Algeciras.
Members of the International Dockworkers Union will strike every other day between 6 and 25 March following the Spanish government’s decision to alter legislation and adhere to the EU Treaty’s freedom of establishment principle.
A spokesperson advised: “As a customer of Spanish ports highly dependent on undisrupted terminal operations, Maersk Line hoped for a positive solution to the dispute and has been committed to a constructive dialogue with all parties. Regretfully, stevedores’ unions have announced a series of strikes.”
Under current Spanish law, all dockworkers must be members of stevedoring societies, known as Sociedad Anonima de Gestion de Estibadores Portuarios (Sageps), which recruit and train port workers before making them available to terminal and cargo operators.
The European Court of Justice ruled that this limits employer options for sourcing workers and last July levied a €15.6m fine on Spain’s government, adding a €134,000 daily penalty until amendments are made.
However, the International Dockworkers Community (IDC) argued that the Spanish government sought to make the change without consultation.
Maersk said it would re-route vessels from Algeciras to other facilities in the Mediterranean where it has secured capacity. Eastbound services and transhipment connections will continue to call at the Spanish port.
The carrier said some shippers may experience vessel re-routing, port omissions and additional transhipment of cargo.
“Kindly note that this is an exceptional situation and contingency plans may be subject to change due to urgent or unforeseen circumstances,” added the line.
“We remain committed to providing … timely updates and will continue to do so as the situation develops and as soon as new information is available.”
Meanwhile, Hapag-Lloyd has warned that while industrial action in Gothenburg has ended, the “negative impact” from the Dockworkers’ Union strike continues and it has diverted its Gothenburg express service to Varberg until further notice.
“Overtime work at the terminal is still voluntary and there is currently quite a high rate of absence,” said the carrier in a statement.
By Alexander Whiteman
02/03/2017
“A high-level meeting last week between terminal management and the IDC ended without any results, therefore we are expecting more notices of strikes and blockades.”
The carrier added it could not “under any circumstances” absorb any additional costs arising from the situation in Gothenburg, advising shippers to book “as much cargo as possible via Vargberg” to ease the situation and avoid the risk of waiting-time, short-shipment and storage costs.
The carrier’s Loop 7 and Sweden Denmark Express services will still call at Gothenburg, while calls to Helsingborg and Halmstad are not affected.
The action in Spain and Sweden has been supported by US International Longshoremen’s Association (ILA) vice president Kenneth Riley, who visited the ports last week to “build solidarity” and boost his own call for action at American east coast ports.
However, ILA president Harold Daggett this week countered Mr Riley’s calls and urged members not to engage in any work stoppage or any other violations of the ILA’s current master contract.
“We hear your anger, we hear your frustration and we intend to address it,” said Mr Daggett. “With a delegation of ILA leaders, I will be heading to Washington to seek help for our industry from Congress.
“I am confident Congress will understand the urgency of our issues and help us resolve all problems.”
Mr Riley has called for a shutdown of US east coast ports in protest over mounting jobs losses and ongoing interference by the South Carolina Port Authority – Mr Riley also presides over the ILA Local 1422 Charleston South Carolina – and the Waterfront Commission of New York Harbour.
He initially called for east coast ILA dockworkers to march on Washington on 27 February to vent their displeasure at practices that “deliberately reduced dockworker numbers”.
This date was pushed back by a “week or so”, with Mr Riley telling The Loadstar the postponement had been made to “educate rank and file members” and industry stakeholders.
Asked by The Loadstar if Mr Daggett had given his support to the planned protest, Mr Riley said they had not consulted the national branch of the ILA, noting that “this was a rank and file decision”.

Cargo Ship Partially Sinks Off Ecuador
February 27, 2017 by Mike Schuler,
www.gcaptain.com

The Isla Bartolome aground off Ecuador
Officials in Ecuador are coordinating the environmental response and salvage of the general cargo ship Isla Bartolome, which ran aground and partially sank last Thursday in the main shipping channel from the port of Guayaquil.
The 3,818 DWT Isla Bartolome had just departed Guayaquil for the Galápagos Islands when it ran aground on a sandbar near the town of Posorja on the afternoon of February 23. All crew have been removed from the vessel.
Officials observed a small sheen which was expected to evaporate.
The Ecuadorian Navy said it is coordinating with the shipowner and other stakeholders regarding a salvage plan for the vessel.
The Isla Bartolome is operated by Ecuardor’s Transnave and under contract with the Navy.
The Navy said it will update its plan on the vessel once details are confirmed.

Every Shipper Needs Cargo Insurance
Global trading involves risk; however, broad insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years.
Protecting your investments by insuring your goods provides peace of mind.
Who’s really responsible if your product is lost or damaged in transit?
How much is that insurance really costing you?
Is the coverage your supplier purchased for you adequate?