On 28 October the Government of France announced that it was postponing the ecotaxe. They cited the reason for this as disruption in Brittany by hauliers and farmers, but freight operators felt that the introduction was in any case being rushed. The registration process has been slow, which means that not enough haulage companies have been registered to make the scheme work.
State-owned Eskom on Monday said it had cut back on its coal-hauling times on the back of a recent spate of driver fatalities on Mpumalanga roads.
The trucking of coal to Eskom s power stations, which was an around-the-clock operation, would be halted from 18:00 on Fridays to 06:00 on Sundays the period said to have accounted for 36% of fatal road accidents.
Speeding, fatigue, poor visibility, road conditions, contravention of the rules of the road and alcohol were found to be some of the main factors contributing to the accidents over the past three years, Eskom noted, citing information sourced from the Department of Community Safety, Security and Liaison s road safety and law enforcement division for the Gert Sibande district.
The majority of the coal-haul road network fell in the Gert Sibande district.
Over the past three months, Eskom consulted various stakeholders in the transport and coal-mining industry to review options to improve safety on the coal-haulage routes in Mpumalanga.
This intervention will result in increased rest time for truck drivers and all transporters staff, which will aid in fatigue management and allow for regular intervals to conduct in-depth maintenance and mechanical performance testing of trucks to further minimise incidents resulting from mechanical failure, Eskom said in a statement.
Last year, about 14-million tons of coal had been transported by Eskom s contracted coal road-haulage companies, with another 20-million tons moved by companies contracted directly with mining companies that supply Eskom s power stations.
All stakeholders, including the Department of Community Safety, Security and Liaison, the Chamber of Mines and Eskom s logistics and mining partners, would continue to review the implementation of this safety initiative to ensure that operations continue to run smoothly, Eskom concluded.
Edited by: Chanel de Bruyn
Norbert Dentressangle has acquired Daher Group s freight forwarding activities, which achieved a turnover of ‘ 80 million ( 69.6 million) in 2012.
The deal is set to be complete during the third quarter of this year, following approval by the French competition authorities.
Norbert will take on 287 of Daher s employees and eight of the company s offices in France, as well as three in Russia.
Norbert hopes the deal will strengthen its links with respected clients in the aviation, automotive, chemical and luxury goods sectors, who already work with Daher.
This acquisition is a clear illustration of our on-going strategy to expand our freight forwarding business to reach our agreed target after just three years of trading, said Herv Montjotin, chief executive officer of Norbert Dentressangle.
It gives us a significant, solid base in France, a key market in which we foresee a wide range of opportunities for commercial synergies with our group s transport1 and logistics activities. It will also improve the profitability of our freight forwarding business.
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The influence of American coal exports on seaborne transportation has grown significantly over the past decade. In 2002, the US exported 20.1 million tons by sea, but in 2012 that number had increased to 106.7 million tons. The effect on shipping has multiplied due to the fact that much of the demand growth has come from East Asian countries. With a large part of the US Coal destined for East Asia being shipping out of the US East Coast ports, this will increase the demand for tonnage.
Chief Shipping Analyst at BIMCO, Peter Sand, says: As a consequence, the transportation demand stemming from US coal exports has surged from 84.7 billion tonne-miles in 2002 to an estimated 707.3 billion tonne-miles in 2012 (835% over the period). In comparison, the Chinese coal imports in 2012 accounted for an estimated 697.6 billion tonne-miles of demand for seaborne transportation. This means the US coal exports was more important to the dry bulk shipping market than the Chinese coal imports in 2012 . (For more details on Chinese coal imports see the April edition 2013 of BIMCO Shipping Market Overview and Outlook).
The US exported 22.0 million tons of coal to the East Asian countries of South Korea, Japan and China in 2012, of which 5.1 million tons came from Pacific ports. The Pacific ports export thermal coal to East Asia, while the US East coast and Gulf coast (USEC/USGC) ports export both thermal coal and coking coal. Of the total 22.0 million tons exported to East Asia in 2012, coking coal made up 14.9 million tons (68%) and thermal coal made up 7.1 million tons (32%). 40% of the coal exported to East Asia came from Baltimore, a Capesize-accommodating port that attracts Asian buyers, who also has to accept an extended distance of more than 14,000 nautical miles to reach the port of discharge.
Likewise, the US exported 51.3 million tons of coal to the EU in 2012. The main destinations were the Netherlands and the UK with a total of 23.1 million tons. A part of the coal exports to the Netherlands are subsequently transhipped to German buyers. Traditionally, most of the European trade has been for coking coal, but 2012 marked the year where this pattern changed. In 2012, the US exported 27.9 million tons of thermal coal to the EU (54%), but only 23.4 million tons of coking coal (46%). Unlike the exports going to East Asia, all coal exports to Europe came from USEC/USGC ports making the transit distances substantially shorter. The result is that the exports to East Asia are more beneficial for the shipping industry than the exports to the European Union, despite involving much lower volumes.
Thermal coal exports Reflecting a new energy market in the US
The increased thermal coal exports is explained by the large-scale exploitation of unconventional fuels in the US, which has made consumption of domestic oil and gas relatively cheaper. The average Brent-WTI spread went from nothing to around USD 17 per barrel during 2011 and 2012, while domestic US natural gas prices have halved since mid-2000s.
As a consequence, the domestic consumption of coal fell by 11% to 807.8 million tons in 2012. Since the production only fell by 7.2% to 922.1 million tons, the potential for exports has increased.
Meanwhile, European gas-driven power plants suffer from oil-indexed contracts and higher oil prices, making coal the cheapest option for energy in Europe. Working in the same direction was the collapsing carbon prices within the EU ETS which only made the appetite for coal more significant. Back loading or not in the EU ETS, this is probably going to be the case also in the coming years. The low freight rates during the past two years have also been an incentive for importing coal from countries far away such as the US and Colombia.
in the coming years. The low freight rates during the past two years have also been an incentive for importing coal from countries far away such as the US and Colombia.
The thermal coal to East Asia is primarily shipped to South Korea, who has virtually no coal mining industry. The increased South Korean demand for US coal originates from a desire to diversify trading partners to manage rising coal costs.
Coking coal exports a matter of Chinese steel production
Coking coal demand in East Asia has largely been a result of an increased Chinese steel production. The Chinese steel output in 2012 was four times larger than in 2002, while the production in Japan and South Korea has remained relatively unchanged. As a consequence, China has increased its imports of coking coal, which has benefitted the US as well.
South Korea has traditionally imported coking coal from Australia, Canada and China. However, due to the Chinese domestic demand, South Korean steel mills have to source their coal elsewhere than China, which has benefitted exporting countries such as the US and Russia.
Japan has imported less coking coal post-2008, but the country has increased its coking coal imports from the US as a substitute for Australian coking coal, which means that the distances travelled increase fourfold.
In the EU, seaborne coking coal demand has been relatively stable over the last decade, but a larger share is being sourced from the US. In 2002, the US exported 9.9 million tons to the European Union; in 2012, the number had increased to 23.4 million tons. The increased demand for coking coal came from Germany and the Netherlands in particular, but also from Italy, France and the UK.
Looking forward, India could become a medium-term growth factor as the country has experienced very high demand growth for US coal during the past five years. The US exported 6.4 million tons to India in 2012 all shipped from USEC/USGC ports.
Back in the US there are talks about building a large coal export terminal at Cherry Point, state of Washington or in the state of Oregon. One proposal, at Cherry Point near the Canadian border on the West Coast, plans to have a capacity of 48 million tons per year. The terminals would accommodate the large thermal coal reserves in Montana and Wyoming. Out of the 431.1 million tons of thermal coal produced in 2011 in these states, only 15.5 million tons were exported (source: EIA). The terminals are being built to meet the increasing demand for coal-fired power generation in East Asia, and at full capacity, the Cherry Point terminal would create employment for 40 Capesize vessels on an annualised basis. We expect to see a surge in exports if the terminals are built.
US thermal coal exports to East Asia in April were slightly up from the same month last year (8%), but down by 24% from the month before which represented an all-time-high in total coal exports. Coking coal is more of a joker, as the April numbers throw a wet blanket over the party. Coking coal exports to East Asia were substantially down from the same month last year (-40%) as well as from last month (-44%). Sources attribute this to lower GDP growth in China combined with a massive oversupply of coal in East Asia. Some analysts therefore expect US coal exports to be 10-15% lower this year compared to last year.
Another potential threat comes from the talks of a Chinese ban on high-sulphur and low-calorific coal, as much of the US coal going to China has a high content of sulphur. In 2012, China imported 8 million tons of coal with sulphur content above 1%. It is however uncertain if Beijing will ratify the coal ban. However the US has lots of low sulphur coal reserves to substitute the high sulphur coal if it is demanded.
When we look into the future, global demand for thermal and coking coal is set for solid growth with thermal coal being in the driving seat both in terms of volume and percentage growth. If the US can stay price competitive in the market and scale up Pacific port capacity, the longer sailing distances are likely to benefit dry bulk shipping demand along the road adds Peter Sand.
Source: Peter Sand / BIMCO
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Groupage is the consolidation of cargo into a mixed load. We collate groupage shipments at our depots across Britain for export to our neighbours across the channel in France.
Groupage to France1 can be anything from one carton upwards but generally it is most cost effective over 75 kilos or 0.75m3. Smaller shipments are generally cheaper on a parcel service like DHL, UPS or TNT.
We make collections every day throughout Britain and plan shared cargo deliveries directly to our regional depots in places like Calais, Paris, Rouen, Nantes, Lyon, Marseill, Bordeaux and Toulouse.
Pro-rata groupage shipments to France are much cheaper than sending a dedicated van the whole way to France, cargo shares space on a truck and this spreads the cost.
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Westward Freight was formed in 1996, we are an International Shipping Company based in London England, UK. We aim to deal with both the intricate logistics and freight forwarding requirements of major companies and PLC’s as well as smaller companies and household removals. With everybody receiving the same high level of professional service – whether using our express air services or cheaper freight forwarding or groupage freight shipping services.
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Westward Freight offer express import and export van courier services
Global import and export Air Freight services.
Sea freight shipping services for full and part container loads.
We are now able to offer warehousing services.
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Very impressed with the customer service from Westward Freight Management….Harvey Nichols London
Thanks again for helping me move house and with help packing my goods for export shipping to Italy.Mrs Umberti
European – road air or sea ; (including our express service) UK, Ireland, France, Germany, Austria, Holland, Belgium, Luxembourg, Italy, Spain,Andorra, Portugal, Greece, Turkey, Sweden, Norway, Finland, Iceland, Denmark, Poland, Bosnia, Latvia, Liechtenstein, Croatia, Slovakia, Slovenia, Russia and Eastern Europe “We specialise in customer satisfaction, not in any one method of transportation” International Shipping company, Freight Forwarder, Express Haulage, London, UK Worldwide – air or sea; (including express freight services) UK to USA & South America, UAE, Jordan, Middle East, Libya, Turkey, Japan
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Ports in France, Switzerland and Germany have decided to co-operate more closely in developing the Rotterdam-Genoa freight corridor. All are inland ports on the Rhine, and will especially aim to enhance rail freight connections. The nine ports currently handle about 33% of container barge traffic and 20% of Rhine borne bulk freight.