Archive for the 'Transportation' Category

10
Aug
11

Profitting from the Shipping industry

Many people are aware of the profits and potential of the shipping industry to make good money on their investable assets, yet many people don’t have the slightest idea how to participate in it. That’s not a slap in the face. It’s true that, like the Oil sector, the majority of shipping is done by a few very wealthy companies. The enter into the shipping business you need some very deep pockets, friends in high places, and very easily, even some government backing as well.

Port MontrealWhat are the options?

It’s easy to get discouraged or even stop looking once you realize that the ports are run by government funding and massive corporations. New companies like India’s Ports Global, are using these very same methods and to the average person, there don’t seem to be other avenues than the stock market to participate in the growth of the shipping industry.

And who wants to even think about the stock market anymore? More often than not, the same factors that discourage people from looking further into the shipping industry influence the stock market the exact same way. We’ve quoted it before and we’ll do it again. Take a look at the movie, “The Inside Job“.

The same people who lead the world, its leading companies, and leading educational institutions are the same one’s that make the policies, structure the boards, and write the curriculums and books that students study. In turn, the way that the world and the financial markets function are all an effect of a very few elite individuals that use their own greed and selfishness to manipulate things in their favor.

A Great Article

Here’s a link from an article entitled “Why Global Shipping Industry May Produce a Wave of Profit”. I read on the topic I wanted to share with you. I’ll quote bits and pieces from it and comment accordingly.

“To get a quick idea of the enormity of worldwide shipping activity, you need only look at the U.S. trade numbers.”

The numbers here will give you a huge knee-jerk reaction. It’s one thing to think that the shipping industry posts big numbers. It’s another thing to see it in black and white.

“In March 2011 alone (the last month for which complete figures are available at the time this post was published), the United States imported $220.8 billion worth of petroleum, other raw and agricultural materials, and finished products from foreign countries. And more than 90% of that total entered by ship.”

To break it down even further for you, that’s 198.72billion dollars worth of goods that entered the country in one month.

“At the same time, the United States sent $172.7 billion worth of manufactured goods, grains, and assorted other materials abroad.”

“Because of differences in reporting standards and fluctuating currency values, worldwide totals are harder to grasp, but the industry’s major trade group, International Chamber of Shipping, estimates that marine shippers transported over 7.7 billion tons of cargo in 2008, covering more than 32 trillion miles and generating roughly $380 billion in freight charges alone.”

“And that was in a year hit midway by a global recession.”

A global recession that has proven to be one of the most heinous in almost a century. It’s clear now, that more than 3 years later, the world and especially the United States is still fighting with all its might.

“Responsible for those shipping totals is a worldwide fleet of more than50,000 merchant ships registered in more than 150 countries and employing more than 1 million crew members. Because of liberal laws and tax incentives, Panama and Liberia play host to the most registered merchant vessels. Ships flying those country’s flags accounted for nearly 300 million tons of cargo in October 2010 alone.”

Own Shipping Container and  Direct Line to Demand

That’s a lot of ships. One thing they are short of is containers to move the goods and service that go on them. With demand in Asia and Africa spiking to unprecedented levels, more and more people are crawling out of poverty and building better lives for themselves.

Owning shipping containers gives you direct participation into this industry and puts you far way from any speculation that is done through the suits and ties on Wall Street or any other world-wide exchange. Demand calls for shipping containers which you lease out to paying customers. Your containers transport goods from port to port all the while providing you with a handsome monthly income.

Stay away from the stock market and the massive speculation that goes on there. Owning shipping containers gives you direct participation, growth, and piece of mind (through insured assets) and pays you very well. Contact Pacific Tycoon and let us show you how are clients are making double-digit returns and sleeping well at night.

Image: CanadianManufacturing
Source: SeekingAlpha

09
Aug
11

India-China Shipping Lane Brings More Containers Along

Just when you thought you couldn’t possibly hear any news from India, they’ve sprouted another vein of commerce that’s pumping goods straight from the heart of Asia.

india-mobile

Demand is Calling

On July 24th it was reported that  Japanese Shipping Company,Kawasaki Kisen Kaisha (“K” Line), will launch a new dedicated service called CIX-2 between Asia and the Indian Sub-Continent from August 10. In business, if customers and demand are calling then there will be an answer and subsequent action taken. India is pushing boundaries with its growth along side China right now and a dedicated line was the answer.

The new service, will run with six 2500-2800 TEU vessels and offer a fixed-day weekly sailing.

The ports involved are Xingang (China), Qingdao (China), Shanghai (China), Ningbo (China), Singapore, Tanjung Pelepas (Malaysia), Port Klang (Malaysia), Nhava Sheva (India), Karachi (India), Colombo (Sri Lanka), Port Kelang, Tanjung Pelapas, Singapore, Xingang.

All of these are ports in Asia that we have reported about during the last month that are moving serious amounts of cargo/containers for their respective countries.

“K” Line presently operates another weekly service called INDFEX calling at Nhava Sheva port. The new service will double sailing frequency for Nhava Sheva and newly add Xingang and Qingdao as direct calling ports.

Asian Explosion

There’s no hiding the fact that Asia is booming. Imagine a hundred plus years ago, going back in time and handing Wyatt Earp and Doc Holiday, Apple iPhones. That’s basically what is happening in some developing countries in Asia and Africa now. India now has over 600 million mobile subscribers.

Add to the fact that new infrastructure and development costs through massively more efficient technology, increased knowledge and speed of development is knocking down barriers it took the western world decades to conquer, are coming down in a fraction of the time.

Steve Jobs for President

Apple now has more cash than the US government.

The Federal Reserve reported last year that nonfinancial companies had socked away $1.84 trillion dollars in cash and other liquid assets as of the end of March 2010. That’s up 26% from a 2009 and the largest-ever increase in records going back to 1952. Cash made up about 7% of all company assets, including factories and financial investments, the highest level since 1963.

That money is coming from cost saving that are made by exporting business overseas. That investment in overseas markets, like India, China, Vietnam ( the list is very long) is also putting record numbers of cash in the hands of these residents and driving up their buying power along with their thirst for the same material goods that many of them work on day in and day out.

At Pacific Tycoon, we’re in the business of managing containers. The same containers that ship brand name products from port to port and supply the distributors with them to sale to their customers. We help you lease containers to these very same Fortune 500 companies and pay you very well. Contact us to let us show you how you can get involved.

Image: ITGrunts

Source: CargoNewsAsia, WallStrettJournal

08
Aug
11

Arctic Ice Melt Clears the Way for Shipping

It’s unfortunate for future generations, the damage we have caused to our Earth. While it is a sad truth that our children and grandchildren will definitely feel the heat from, there are opportunities that are arising at their expense. My father used to tell me, “When one door shuts, another opens.” Although this is not exactly a perfect example of a door being open or closed, and the damage we’ve done is a shame, possibilities are coming to light that will make trade easier.

IcebergsGlobal Shipping Impact

Arctic sea ice is melting at a near-record pace. This event is opening shipping lanes for cargo traffic between Europe and Asia, said Russia’s environmental agency.

The ice coverage is 56% less than average in some areas, allowing “very easy” sailing that will persist through September, the Moscow-based service said.

Melting ice is making it easier for Russian and other European shippers to ship to Asia via the northern sea route, which is about  a third shorter than the Rotterdam-Yokohama route through the Suez Canal. This obviously saves time, fuel puts products in consumers hands quicker, and adds to the bottom line of shipping companies.

Iceland’s President Olafur Ragnar Grimsson said last year that the pace of global warming in the Arctic is three-times faster than elsewhere else, cutting journeys between Asia, Europe and America by as much as half.

On their website, July 18th, the U.S. National Snow and Data Center reported that melting occurred “at a rapid pace through the first half of July and is now tracking below the year 2007, which saw the record minimum.”

Unfortunate but Profitable

As more shipping lanes open up, there is no reason not to take advantage of the faster, more economical solutions. Now it seems as though it’s a window that has opened until September. Maybe in a few years time it will be permanent. Time will only tell. We have done an excellent job of cutting emissions and slowing the global environmental impact we are making and thus can only wait to see what happens.

Image: IziSmile

Sources: HellenicShipping, Bloomberg

03
Aug
11

Indonesia

Don’t tell the Transportation Minister of Indonesia about a world economic slowdown. He doesn’t have time to worry about the problems of the developed world. He’s got plenty on his plate at home to deal with and it’s quite the opposite as the woe as me blues being felt by America, and Europe.

indonesia

Progress isn’t cheap

As reported by World Maritime News on July 18th, the Indonesian government is now planning a huge project to develop 14 new ports in the country.

The project has yet to go into development stage as the government is still working on how it will fund the ports development. Nonetheless, they are not at a loss of options. “We will partly make use of the ASEAN Infrastructure Fund [AIF] to finance the projects,” said Transportation Deputy Minister, Bambang Susantono. He also added there is the option of using funds from interested countries such as China, Japan, and South Korea.

Better late than never

Indonesian ports are now stretched to capacity and they are sporting the largest logistics costs in the ASEAN (Association of South Eastern Asian Nations) community due to it. With +6% growth last year and increases projections for the next two, the economy of Indonesia is running full steam ahead and this action is a step in that direction.

Michael Lund Hansen, APM Terminals’ Asia-Pacific Regional Director of Portfolio Management, recently noted in an Asian conference, focused on Indonesia that five out of the six major Indonesian container ports, which together handle 90% of the country’s container traffic, are operating above capacity, reducing efficiency and adding to logistics costs.

According to World Trade Organization data, Indonesia ranks 30th in global exports with $119 billion, and 31st in global imports, with $92 billion, during the global economic downturn of 2009.

The growth in Indonesia is just one of the handful of reasons you should give container ownership a closer look and learn more about the advantages of partnering with an Asian management team like Pacific Tycoon to manage those assets.

Image: IndoFlick (taken by Jill Gocher, Getty Images)

Sources: IFW, WorldMaritimeNews, WorldTradeOrganization

01
Aug
11

Qatar and Egypt team up for Port Construction

People who are employed spend a lot more money than those who do not. That’s as basic an economic lesson as you can get. In fact that boils down more to common sense than economics. Based on that little tidbit of info, we’d be safe to say that 1 million newly employed people will spend a lot more than if they were not. 6 zeros behind any number look good and  that’s exactly what a new agreement between Egypt and Qatar aims at accomplishing.

EgyptThe Sands of Time are Moving….

…and on the continents of Asia and Africa, they are ticking off dollar signs as fast as they are seconds. According to Qatar’s Minister of State for International Corporation, Egypt and Qatar just signed a new agreement for Qatar to build be new facilities in the ports of Port Said and Alexandria, Egypt.

After leading a delegation to Egypt, the Minister said there will also be bilateral cooperation in establishing two investment companies in Africa, with one of them focused on Sudan. The Minister said that the two sides would draw up a plan to carry out their agreements and set a time frame for the establishments of the ports.

Qatar News Agency published comments in which he said, 1m job opportunities would be created by the Port Said port project with another 200,000 jobs as a result of the Alexandria proposal.

He also added that a group of Qatari businessmen would visit Egypt next month to look for more investment opportunities.

Qatar is Full Steam Ahead

Aside from the good development partnership, Qatar has also gotten revised numbers moving its previously projected GDP growth up and over 20% possibly surpassing the growth that was forecast for Ghana just a few weeks ago. The Arab Monetary Fund (AMF) reported on Tuesday of last week, due to high oil prices and increased exports, Qatar’s GDP would grow 20% keeping it in line for a battle of the number one spot it claimed last year, as well.

Aside from oil the country is now exporting its expertise in port building and operations. Now is a great time to consider owning containers and putting them to work in the highly contested developing markets of Asia and Africa. Pacific Tycoon is here, managing these hard assets, making sure our container customers are getting paid well to be the harbingers of consumer demand.

Give us a call to find out how we can help you buy containers and get paid very well by letting us handle the leasing solutions that are demanding  space in these sizzling markets.

Image: VidalTravel

Source: WorldMaritimeNews, MENAFM, HelenicShippingNews

22
Jul
11

China, tonning it.

The inland expansion of China keeps shining through. It’s no more evident than in the shipping and container industry. Week after week, we are seeing reports of increased capacity these ports are handling and in the number of businesses that are picking up and moving in to pick up cheaper labor.

China

Container and Shipping Growth

A few weeks ago Chinese ports reported growth of 13% for the first 5 months of the year, handling 63.8 million TEU (twenty-foot equivalent units). Shanghai alone was up 11.4%. cumulative coastal ports were up 12.5%  and river ports showed increases of 18.3%.

Shanghai International Port Group (SIPG) chairman Chen Xuyuan said in June that Shanghai’s container volume is expected to increase 10 percent per annum over the next five years.

One number we saw that does not surprise us at all was a pretty big drop off of the activity in the Shenzhen port. Even though growth was still positive (1.9%), this slowdown is a direct reflection of the companies that we have talked about over the last couple of weeks that are headed inland up the Yangtze river, which is a good reason you see such a large increase in the handling capacity at river ports (18.3%).

Yesterday, we saw a report on World Cargo news that discussed the current drought that is effecting the Yangtze river and central China . In the post he talks about the need for dredging and a few transport issues that have arisen due to the lower levels of water in the area:

“Deepening the channel should be one of the main priorities, because Beijing’s “Go West” initiative is picking up speed and there is no turning back now.”

Dig it

Ask and you shall receive. Actually, what the author of the quote above is pointing out had already been considered long ago and plans to get the river to the speed of development in the area are well in place. As reported on May 3rd from Dredging Today, a leading global source of information for the dredging community, China has already pledged $USD 2.7 billion for construction that has begun this year and will run to the year 2015.

Looking from the outside in, it looks as if China has everything planned out well in advance.

Source: WorldCargoNews, CargoNewsAsia, DredgingToday

Image: LibCom

21
Jul
11

India Stacking the Trains to Quench Demand

Demand can create some pretty interesting things. That’s not just limited to innovation in computers, mobile phones, and other fashionable accessories. It can also be accomplished in transport. Taking a cue from the English public transport, India is doubling up on its container movement via train.

Double Stack

As we reported last week, India is number 6 (8.43%)on the fastest growing countries list of 2011, right behind Liberia (9.003%).

Although Indian consumer demand for larger ticket items like computers has trailed off the past 2 quarters because of high inflation, it doesn’t stop the train that is running full speed through the country that is developing the cities, towns and villages that are in need of basic goods that containers deliver to them.

This is why APL IndiaLinx, the rail operations arm of APL Logistics, has launched its first double-stack container train service in India.

APL IndiaLinx (IILPL) as a freight rail service is designed to meet the growing demand for rapid and reliable transportation solutions among India’s growing import/export & domestic sectors.

The double-stack plan follows Indian Railways recent decision to allow stack train access along the Mundra-Kishangahr rail corridor as part of a bigger project to provide a freight-dedicated network of railroads with double-stack capability connecting key gateway ports and major North Indian industrial centres before the end of 2016.

APL IndiaLinx plans to expand its stack train service network as more rail corridors are opened to double-stack access.

The Mundra-Kishangahr rail corridor extends to the Mundara port. The Mundra Port and Special Economic Zone, India’s largest multi-port operator, released it fiscal year results on March 31st of this year. To give you and idea of how business is booming in India, take a look at the port manager’s performance. Total income for the year was up 36%. Net profit is up 41%.

Image: EricsAdventures

Source: MundraPort, APLIndiaLinx, WorldCargoNews




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