At the prestigious SMM Hamburg Maritime Exhibition, China State Shipbuilding Corporation (CSSC) made waves by debuting the world’s largest container ship, the GREEN SEALION 27500, with an enormous capacity of 27,500 TEUs (Twenty-foot Equivalent Units). The vessel has not only set new standards for size but also for sustainability, showcasing the future of eco-friendly marine transport.

The GREEN SEALION 27500 is a dual-fuel ship, primarily powered by LNG, which significantly reduces carbon emissions and adheres to the International Maritime Organization (IMO) Phase III carbon reduction standards. The vessel’s Approval in Principle (AiP) certificate, awarded by the DNV classification society, further solidifies its commitment to sustainable practices. But it’s not just about the cargo capacity—CSSC has optimized the hull design to improve fuel efficiency, demonstrating that environmental responsibility and operational excellence can coexist. Moreover, the ship can achieve zero emissions while docked, thanks to its integration with shore power systems.

Expanding the Fleet of Green Marine Technology

In addition to the GREEN SEALION 27500, CSSC introduced several other revolutionary vessels that continue pushing the boundaries of sustainable shipping:

• GREEN SEALION 20000: A 20,000 TEU ammonia dual-fuel container ship, which takes a bold step towards reducing emissions by using ammonia, an alternative fuel that further lowers carbon output.
• GREEN SEALION 16000: A 16,000 TEU LNG dual-fuel container ship designed with an enhanced energy-efficient wide-body structure, ensuring optimal cargo capacity while minimising its environmental impact.
• Advanced Liquefied Gas Carriers: CSSC also revealed two cutting-edge vessels, a 103,000 cubic metre Very Large Ethane Carrier (VLEC) and a 93,000 cubic metre Very Large Ammonia Carrier (VLAC). Both ships are designed to transport LPG, ethane, and ammonia, featuring state-of-the-art propulsion and energy-saving systems to further advance green shipping solutions.

Driving the Future of Sustainable Supply Chains

These technological advancements in shipping are undeniably impressive, but their success hinges on more than just the ships themselves. To truly maximise the environmental and operational benefits, businesses and shipping companies must adopt and intergrate supply chain and climate impact visibility software. Real-time data insights provided by these systems allow Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make critical, data-driven decisions.

With real-time visibility, stakeholders can accurately track shipments, monitor environmental conditions, and anticipate disruptions, all while ensuring compliance with climate regulations. As the shipping industry faces increasing pressure to reduce its carbon footprint, such technology will be essential to navigating the complexities of modern logistics.

The ability to monitor key metrics like fuel consumption, port delays, and CO2 emissions enables BCOs and LSPs to mitigate risks and improve supply chain resilience. By integrating visibility software, companies can make informed decisions that not only optimise logistics but also support broader sustainability goals, ensuring that the transition to green shipping becomes a reality.

A Call to Action for the Future of Logistics

The debut of the GREEN SEALION 27500 and its sister vessels marks a pivotal moment for the global maritime industry. CSSC has set a new benchmark for container ships, but the next step for the industry must involve empowering BCOs and LSPs with the real-time data needed to manage the impact on their supply chains. The future of logistics depends on visibility, and as these groundbreaking ships take to the seas, the tools to monitor and mitigate supply chain disruptions must sail alongside them.

The shipping industry has recently witnessed a significant rise in weather-related cargo losses and insurance claims, driven by carriers being forced to navigate the perilous waters around the Cape of Good Hope. With the ongoing threat of Houthi attacks in the Red Sea, vessels have been re-routing to southern Africa, exposing themselves to extreme weather that they would typically avoid.

Over the past 270 days, this re-routing has led to a string of incidents involving cargo damage or loss. In fact, between 2 June and today, five major incidents have been recorded, highlighting the increasing risks associated with this route. According to maritime claims consultant MK Webster, these events include:

• 2 June: Car-carrier Hoegh London sustained structural damage off Port Elizabeth, leading to significant cargo damage.
• 8 July: Ultra Galaxy developed a heavy list in challenging conditions off South Africa’s west coast, forcing the crew to abandon the ship. The vessel later ran aground and capsized.
• 9 July: CMA CGM Benjamin Franklin lost 44 containers overboard in rough seas south of Durban, with a further 30 containers sustaining damage.
• 15 August: CMA CGM Belem suffered a collapse of containers on deck, losing 99 boxes overboard near Richards Bay.
• Most recently, MSC Antonia lost 46 containers overboard, with another 305 damaged, 29 nautical miles northeast of Port St Johns.

Patrizia Kern, chief insurance officer at Breeze, an embedded cargo insurance provider, emphasised the rising risk: “Higher-than-average wind speeds around the Cape of Good Hope, combined with ongoing turmoil in the Red Sea, have led to an unprecedented surge in insurance claims.”

Why Has Cargo Loss Surged?

Historically, ships would steer clear of the rough seas near South Africa, especially during the transition from winter to spring in the southern hemisphere. Last year, during the same period, there were no reported container losses in the region. However, the geopolitical challenges in the Red Sea have forced shipping lines to brave the Cape of Good Hope’s treacherous conditions, leading to this surge in incidents.

The World Shipping Council even noted that 2023 saw the fewest recorded container losses since it began tracking the data in 2008. This only underscores how much of an outlier this year’s incidents have been.

A critical factor behind these losses is a phenomenon known as parametric rolling. This occurs when the wavelength of the ocean matches a vessel’s rolling motion, increasing the angle of each roll with every wave. This can cause stacks of containers to buckle, resulting in collapses and cargo going overboard. According to an analysis by TT Club, while wave height is an important factor, wave length and period play an even more crucial role in inducing dangerous rolling conditions.

Implications for Insurance and Shipping Costs

With weather now emerging as the most influential factor in cargo loss around the Cape, insurers are bracing for the consequences. Ms Kern noted: “If this trend of increased cargo claims continues, we can expect a corresponding rise in insurance premiums.”

However, despite the alarming rise in claims, Ms Kern does not anticipate a specific surcharge for vessels transiting the southern hemisphere. “The exact impact will depend on various market factors, such as the availability of capacity,” she said. Historically, overcapacity in the shipping market has tended to drive premiums down, and this trend may continue as new players enter the sector.

The Need for Supply Chain Visibility and Climate Impact Software

As vessels continue to navigate these unpredictable waters, there is a growing need for businesses to invest in real-time supply chain and climate impact visibility software. By offering instant insights into weather patterns, shipping routes, and potential risks, such tools can provide Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) with the critical data needed to make informed decisions.

With weather now an unpredictable yet critical factor in cargo safety, these tools enable stakeholders to adjust operations, mitigate risks, and protect their supply chains from sudden disruptions. In an era where both geopolitical and environmental challenges are shaping global trade, the importance of visibility cannot be overstated.

By integrating these data-driven solutions, BCOs and LSPs can better anticipate weather impacts, reroute vessels in real-time, and manage their insurance premiums effectively, ensuring continuity and reducing the risk of catastrophic losses.

In the rapidly shifting landscape of global trade, India is positioning itself as an increasingly attractive alternative to China, particularly in manufacturing and supply chain operations. According to recent insights from Transport Intelligence (Ti), India is emerging as a strong contender in the China-plus-one strategy, as global companies seek to diversify their operations away from an over-reliance on Chinese manufacturing.

A Bloomberg report highlights a major shift: this year, US tech giant Apple will manufacture its top-tier iPhone Pro and Pro Max models in India for the first time. Currently, India accounts for 14% of Apple’s global production, a figure expected to rise as the company’s assembly operations expand. Foxconn, Apple’s sub-contractor, has already begun training thousands of workers at its plant in Tamil Nadu, marking a pivotal shift in Apple’s global strategy.

Historically, Apple has relied heavily on China for both components and assembly, but its recent move into India signals a new chapter for the company. However, Ti analysts remain cautious about how much Apple’s Indian production will still depend on Chinese component suppliers. Thomas Cullen, an analyst at Ti, remarked: “The shift to Indian production by the American company has been remarkably rapid,” further noting the speed and scale at which Apple has embraced India as a production hub.

India’s Emergence as a Viable Manufacturing Hub

Cullen highlighted that while non-Chinese competitors had traditionally favoured South-east Asia, particularly Vietnam, for mobile phone assembly, Apple’s focus on India marks a significant divergence from this trend. Until recently, India was not seen as the frontrunner in the China-plus-one strategy. In fact, it was often regarded as “not very attractive” due to a range of logistical challenges.

“India had real problems with ports, roads, and internal borders,” said Cullen. “There was also a perception that the workforce lacked the necessary skills for large-scale manufacturing.”

Yet, India has made significant strides in improving its logistics infrastructure. Recent investments in Mundra Port, the addition of hundreds of thousands of kilometres of new highways, and upgrades to airfreight capabilities, such as IndiGo introducing freighter aircraft and the restructuring of Air India, have dramatically enhanced the country’s logistics network. This progress, coupled with increasing demand, makes India a compelling option for companies looking to diversify their supply chains.

The Role of Real-Time Supply Chain Visibility in Managing Risk

However, even as India rises as a manufacturing hub, businesses face a complex global trade environment. The “violent” restructuring of supply chains, driven by geopolitical tensions, cost pressures, and sustainability imperatives, makes it vital for companies to manage risks more effectively. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) need real-time data insights to navigate these challenges, especially in new and emerging markets like India.

Supply chain and climate impact visibility software can provide these stakeholders with critical insights, enabling them to make informed decisions quickly. By offering real-time data on everything from shipment delays to environmental impacts, such technology helps companies mitigate risks and optimise their supply chains.

India’s evolving logistics infrastructure, while promising, still comes with unpredictability. For companies to fully capitalise on India’s manufacturing potential, they must integrate visibility tools into their supply chain management to counteract potential disruptions and maintain agility in an increasingly competitive market.

India’s rapid transformation into a manufacturing hub signals a significant shift in global trade dynamics, especially as companies like Apple look to reduce their dependency on China. With the right investments in infrastructure and supply chain visibility, India can continue to solidify its position on the global stage. But for BCOs and LSPs, embracing real-time data insights will be key to navigating the risks and maximising the opportunities that come with this shift.

Global trade is changing fast, with both the Far East and Middle East playing major roles. While the Far East has advanced infrastructure and rapid growth, the Middle East is catching up with a slower but steady development. This analysis looks at three key indicators—Liner Shipping Connectivity, Container Port Throughput, and GDP Growth—to understand how these regions are shaping global trade and economic power.

Stability vs. Growth

The Middle East, though less developed than the Far East, has shown consistent progress in improving its shipping infrastructure. Its growth has been stable, avoiding major disruptions. On the other hand, the Far East, with its highly advanced maritime systems, experienced a sharp decline in trade during the 2019-2020 Covid-19 pandemic, but its stronger infrastructure allowed for a quicker recovery.

The Importance of Shipping Connectivity

A key finding is that shipping connectivity plays a vital role in recovery from global crises. The Far East’s advanced network of ports and logistics helped it bounce back quickly after the pandemic. In contrast, the Middle East was less affected by the crisis due to its lower exposure to global supply chains but still has a long way to go in enhancing its infrastructure to match the Far East.

Supply Chain Visibility Is Key

To better handle future crises, both regions need supply chain visibility. Real-time data on shipping routes, port activity, and climate impacts will be crucial for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make quick, informed decisions. This kind of technology allows businesses to respond faster to disruptions and adapt to changes in trade, making their supply chains more resilient and efficient.

The Middle East is on track to become a major player in global trade, but significant investments in maritime infrastructure are still needed. The Far East’s quick recovery from the pandemic highlights the importance of advanced shipping networks. Both regions can benefit greatly from real-time supply chain visibility software, which will help them navigate future global challenges and maintain smooth trade operations.

Sea-Intelligence has released issue 156 of the Global Liner Performance (GLP) report, offering a comprehensive overview of schedule reliability data up to July 2024. The report covers an impressive 34 trade lanes and over 60 carriers, delivering critical insights into the state of global shipping. This analysis focuses on the global highlights, revealing the challenges and opportunities that lie ahead for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs).

A Year of Fluctuating Reliability

In July 2024, global schedule reliability saw a decline of 2.1 percentage points month-over-month (M/M), dropping to 52.1%. This figure mirrors the situation at the start of the year, underscoring the ongoing trend of reliability oscillating between 50% and 55%. The year-over-year (Y/Y) comparison paints a more concerning picture, with schedule reliability plummeting by 12.0 percentage points.Despite the decline in reliability, there was a slight improvement in the average delay for late vessel arrivals, which decreased by 0.02 days M/M to 5.24 days. However, this delay is still significantly higher than pre-pandemic levels, with July 2024’s figure standing 0.63 days higher than the same period in the previous year.

Maersk Leads, Wan Hai Lags

Among the top 13 carriers, Maersk emerged as the most reliable in July 2024, boasting a schedule reliability of 54.6%. Only three other carriers managed to surpass the 50% mark, while the majority fell within the 40%-50% range. Wan Hai, in particular, struggled, with its reliability dropping to a low of 41.3%.Interestingly, only ZIM and MSC managed to improve their schedule reliability M/M in July 2024. Conversely, Wan Hai experienced the most significant decline, with a sharp 11.6 percentage point drop. The Y/Y analysis revealed a broader industry challenge, with no carriers achieving an increase in schedule reliability. Yang Ming recorded the smallest Y/Y decline of -5.2 percentage points, while Wan Hai again led the downturn with a staggering -27.4 percentage point drop.

The Need for Real-Time Supply Chain Visibility

These fluctuations in schedule reliability highlight the critical need for BCOs and LSPs to implement robust supply chain visibility and climate impact software. Real-time data insights are no longer a luxury—they are essential for making business-critical decisions that can mitigate the adverse effects of schedule disruptions. With the right tools, companies can not only anticipate delays but also adapt their logistics strategies to ensure smoother operations, even in the face of fluctuating reliability.As the global shipping industry navigates these turbulent waters, the adoption of cutting-edge technology will be key to maintaining resilience and flexibility. The insights provided by supply chain visibility software can empower businesses to counteract the impacts on their supply chains, ensuring they remain competitive in an increasingly unpredictable market.