We are here with another unfortunate maritime incident. In this blog, we will give the details of the explosion at the Colombo Port related to the MSC Cape Town vessel. On August 11, fires flamed on board MSC Cape Town III. MSC Cape Town III container ship was built in 2006 and has a capacity of 2,824 TEU. The ship was docked at Jaya Container Terminal in Colombo Port, Sri Lanka, by the time the fire started. The fire started in the area of 41/43 and spread through 100 under-deck and 60 on-deck containers rapidly; in the end, the fire led to an explosion, resulting in significant concern within port authorities and the maritime industry.

The details of MSC Cape Town III fire

While conducting its East African voyages, MSC Cape Town III experienced an uncontrolled fire during the exchange of 995 containers. When this fire occurred, all ship crew and operational personnel were immediately evacuated for their own safety. Thankfully, the SLPA Fire Brigade put the fires to an end and protected both the ship and its surroundings from further damage. H.J.K.U. Kumara, Director of Port Operations for South Louisiana Public Authority (SLPA), applauded the response team’s swift identification of the smoke source and immediate actions taken to prevent other potential fires. At this point, authorities continue to work in an investigation on what led up to this unfortunate occurrence.

What are the impacts of the incident?

Consequently, the fire and explosion on the MSC Cape Town III caused operational disruptions at Colombo Port, leading to delays in loading and unloading activities and pretty severe congestion at major Asian ports. As a result of this incident, combined with the existing issues caused by the peak season, shippers may face extended container availability delays along with ocean schedule changes and increased dwell times.

Shipsgo’s Actions on the MSC Cape Town III Incident

We closely and carefully followed the incident at the Colombo Port with our expert operation team from the first moment it occurred. After carefully investigating the vessel and the containers it carries, we informed our customers who had shipments on the ship.

We have also reached out to our customers whose shipments will be using this route and who may be potentially affected. We hope that no one will be significantly affected by the negative effects of this accident. We will closely follow the process for our customers’ affected and potentially affected containers.

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What caused the YM Mobility incident?

Yang Ming reported that the explosion originated from a reefer container carrying dry goods; speculation suggested lithium-ion batteries or organic peroxides might have been present, both highly flammable substances. No casualties were reported at the Ningbo Port, and three fire-extinguishing tug boats were sent to respond and extinguish any flare-ups at once. At this point, initial findings of an ongoing investigation indicate that an explosion occurred within a container carrying dangerous goods.

What are the impacts of the incident?

This unfortunate incident caused some delays in loading and unloading activities, disrupting container trade during the peak shipping season. The combination of existing congestion at major Asian ports and this incident has extended container delays, leading to degraded ocean schedules and extended dwell times; it’s advised to choose alternate sea routes or prepare for potential rerouting of shipments as a result of these circumstances.

Shipsgo’s Actions on the YM Mobility Incident

We closely and carefully followed the incident at the Ningbo Port with our expert operation team from the first moment it occurred. After carefully investigating the vessel and the containers it carries, we informed our customers who had shipments on the ship.

We have also reached out to our customers whose shipments will be using this route and who may be potentially affected. We hope that no one will be significantly affected by the negative effects of this accident. We will closely follow the process for our customers’ affected and potentially affected containers.

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In CIF, the seller bears the responsibility of covering all freight costs to ensure the goods are delivered at the port of destination, as specified by the purchaser.

CIF risk is transferred when the product is loaded onto the transport vessel. It is suitable for situations where the seller of the shipment has direct access to the vessel, such as bulk transportation. However, CIF is not much preferred for containerized transportation.

Seller’s obligations under the CIF Incoterm

• Delivery of goods and documents required
• Packaging and wrapping
• International freight
• Customs handling fees at origin
• Origin charges
• Insurance
• Inland transport in the country of origin

Buyer’s obligations under the CIF Incoterm

• Payment of goods
• Destination charges
• Payment of duties and taxes
• Customs handling fees at destination
• Inland transport at the destination country

Cost, Insurance and Freight Insurance Details

Under CIF, the seller is bound to provide insurance in the event of a loss or damage during transport. This can be seen as a benefit, as it relieves the buyer of the responsibility. However, it’s important to note that CIF and CIP are the only two Incoterms that require the seller to provide insurance, which may have implications for the overall cost of the transaction.

It is common for buyers to prefer the CFR Incoterm over CIF if their shipment and cargo insurance policy offers better coverage. CFR is preferred because, unlike CIF, the seller is not required to offer insurance; the buyer can instead purchase this coverage.

CIF and Container Transportation Details

CIF Incoterm does not have the same risk transfer as other incoterms. “Cost, Insurance and Freight Insurance” transfers risk only when the goods are loaded onto the ship.

As an Incoterm, CIF is not suitable for containerized goods that are typically delivered to the terminal several days before loading. This could create a gray area in which shipment can be unknowingly damaged.

Due to the nature of containerized goods, which remain unopened until they reach their destination, it is almost impossible to determine when and if any merchandise has been damaged. CIP is recommended as an alternative to CIF when dealing with container shipment.

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It is important to know that under free alongside ship, the seller must deliver the goods alongside the ship and bear all risks and costs until the goods are placed. Under FAS, the buyer is responsible for the cost of clearing export and unloading. This is an important thing, as under FAS the seller is obliged to pay the customs fees at the place of departure of the goods.

Seller’s obligations under the FAS Incoterm

– Delivery of Goods and Documents Required
– Packaging and Wrapping
– Inland Transport in the Country of Origin
– Customs Handling Fees at the Origin

Buyer’s obligations under the FAS Incoterm

– Payment of Goods
– Origin Charges
– Destination Charges
– Customs Handling Fees at the Destination
– Inland Transport at the Destination Country
– Payment of Duties and Taxes

Free Alongside Ship Insurance Details

While not mandated under FAS, acquiring insurance is a prudent and highly recommended step for both the buyer and seller. It’s a common practice to secure coverage for the portions of the shipment’s journey they are each responsible for. This ensures that any unforeseen circumstances during transit are adequately covered, providing a strong sense of security in an otherwise unpredictable shipping process.

As a buyer or seller operating under the FAS Incoterm, you have the option to take on the responsibility of securing shipment insurance for the entire shipping process. This decision, however, should be clearly communicated and agreed upon in your sales contract. By doing so, you maintain control over the insurance terms, ensuring they align with your specific needs and risk tolerance.

FAS and Container Transportation Details

Insurance is not mandatory under FAS but it’s a wise and recommended step both for the buyer and seller. The practice is to insure the portion of the shipments journey for which each party is responsible. It is a common practice to ensure that the shipment’s journey is adequately covered in case of any unexpected circumstances.

As a buyer, or seller who operates under the FAS Incoterm you can choose to be responsible for shipments insurance during the entire shipping process. It is important to communicate and agree on this decision in your contract. This allows you to maintain control of the insurance terms and ensure they match your specific needs.

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Today, many areas are changing, and new regions are emerging. For about 1.5 years, a reality like AI has existed. It would be interesting if these issues did not affect the container transportation industry.

However, an organization has been using artificial intelligence technology and digitalization in the container transportation sector for a long time. The Shipsgo Container Tracking system. It can instantly give you a lot of information about your shipment and support it with notifications. In sudden situations, the autonomous system will take action with its expert team and protect you from harmful situations.

You can check out our tutorial on this subject if you want more information about Shipsgo Container Tracking.

5 Key Trends Shaping the Future of Supply Chains

1- More Freight Capacity

According to BIMCO (an international shipping association), global container volumes are estimated to increase by 4.8% in 2024, while ocean fleets will increase by 7.8%. Air freight forwarding is expected to grow in 2024.

Due to increased competition, customer loyalty could be affected, causing shipping companies to tighten their belts to compete.

2- Digital Transformation Increasing Efficiency

Artificial Intelligence, Machine Learning, and the Internet of Things are powering Digital Transformation in Supply Chains. They are moving beyond buzzwords and aiming to fundamentally change operational dynamics. The main goal is to improve the time and labor curve and increase profitability and future of container transportation.

Artificial intelligence and machine learning will enhance predictive analytics, enabling smarter decisions by analyzing massive data sets. More effective use of statistical data may lead to a rethinking of strategies. IoT technology will offer unprecedented visibility into supply chains, enabling real-time tracking.

With warehouse management and transportation process management, issues such as Detention and Demurrage can also become more accessible to overcome. This digital transition is vital to achieving sustainability goals while remaining agile.

3- Fleets Embracing Sustainability

Carbon emissions and sustainability largely depend on your fuel sources. Gray and Brown Methanol Types are no different from traditional fuel types.

Carbon emissions do not change significantly when green and blue methanol is not used. It is important to use sustainable sources. This can reduce carbon emissions. At Shipsgo, we understand the importance of a sustainable world and are working towards it. You can review the Shipsgo Carbon Offset page in more detail…

4- Increased Mergers and Acquisition

In the container shipping industry, mergers and acquisitions have increased significantly since the pandemic. This trend will likely continue in 2024, as smaller and independent shipping companies will merge to tackle challenging marketing conditions.

Established carriers may use this opportunity for acquisitions. In addition, the largest known transportation companies may expand their operational network by acquiring smaller carriers this year.

5- Blockchain for Supply Chain Visibility and Security

Blockchain technology is drawing attention to the future of the container transportation industry. Blockchain technology could gain popularity by increasing security and transparency in supply chains. Blockchain’s decentralized ledger offers a revolutionary way to track and exchange data, recording transactions in a virtually undetectable way.
Blockchain technology can be a valuable tool in preventing counterfeit goods and ensuring compliance.

The unique numbers carried by each chain can close security gaps in the matching and storage of goods. This would lead to more secure and efficient supply chain operations. Imagine tracing a defective product to its manufacturer and knowing the exact material and batch used. Wouldn’t that be great?

Blockchain technology and tokenization will continue to impact the container shipping industry as they have in many other areas.

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What Happened the Port of Baltimore after Key Bridge Collapse ?

When the container ship Dali hit the Key Bridge, unfortunately, some people were on the bridge. From that moment on, Coast Guard teams started to search for people who had fallen overboard. But as you can imagine, the current in the sea, the dark time of the accident, and the magnitude of the accident made the whole process difficult.

Here are some of the developments following the accident:

• According to Guatemala’s Foreign Affairs Ministry, two of the six workers missing after Baltimore’s Francis Scott Key Bridge collapse are Guatemalans.
• The US Coast Guard halted the rescue effort for six workers trapped on the bridge after it collapsed. Commander Shannon Gilreath told reporters that the US Coast Guard did not believe they would find survivors.
• Maryland Gov. Wes Moore told reporters that the crew had called in a “mayday,” which allowed the authorities to stop the traffic before impact. It likely saved lives.
• The collapse of the Baltimore port, which has halted all ship traffic indefinitely, could negatively impact the local economy. It may also strain supply chains or cause delays in deliveries along the US East Coast.

Shipsgo’s Actions for Baltimore Port

We closely and carefully followed the incident with our expert operation team from the first moment it happened. As we mentioned in our previous Shipsgo Blog, we informed our customers who had shipments on the ship.

Following our detailed research, we notify over 150 shipments in the following process. We will closely follow the process for our customers’ affected and potentially affected shipments/containers.

In addition, there is currently no clear date for the reopening of the Port of Baltimore, and many modes of transportation need to find a new port. We will see how this process affects the supply chain.

We are attaching the official announcement made by the Port of Baltimore for you:

The post Updates from the Port of Baltimore- Key Bridge Collapse appeared first on Shipsgo Blog.

Many videos and images have been shared on social media. In the first information, it is not clear whether there are dead or injured. Experts are at the scene and are conducting research on the subject. Baltimore Mayor Brandon M. Scott tweeted the following about the issue:

Key Bridge Images After the Accident

The Francis Scott Key Bridge across the Patapsco River, Baltimore, Maryland, collapsed in recent minutes after being hits by the container vessel Dali of Singapore.

Shipsgo’s Approach to the Key Bridge Accident

On the other hand, the container ship has carried many containers, and the shipments may have been damaged. After the accident, transportation delays and many potential problems are on the schedule. As Shipsgo, we inform our customers who have cargo on board, and our expert operation team is closely following the process.

We will keep you informed as new progress occur.

Why Tracking at ShipsGo?

Using ShipsGo for shipment tracking has several benefits for both shippers and receivers. Firstly, it allows you to stay informed about the progress of your shipments. Giving you peace of mind and enabling you to plan your operations accordingly. You can export/import as you wish and monitor all of your shipments in one place.

Overall, the ShipsGo Container Tracking Platform is an indispensable tool for anyone looking to track shipments. Its user-friendly interface and real-time updates make it a reliable and efficient way to stay on top of your shipments and ensure that everything arrives on time and in good condition.

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What is LCL Shipping Costs ?

LCL costs are calculated primarily based on volume, typically expressed in cubic meters (CBM). More space means more money. LCL shipping prices are also affected by weight. However, because container ships can handle a large amount of weight and transport much of it, volume has tended to be more critical.

Pickup: Cost of pick up your shipment in the warehouse.

Origin: LCLs need to be loaded on containers with other shipments. They can also be combined at a Container Freight Center (CFC). Container stuffing is another name for this process.

Central leg: The cost of the sea voyage. Although this is the central portion of the shipment, it may cost little. Charges at the CFS are sometimes very high because of the large machines and personnel required.

Location: After arriving at the destination, LCL shipments must stop in a CFS facility for deconsolidation or unstuffing.

Delivery: Cost of hauling your goods from the warehouse to the destination.

The advantages and disadvantages of LCL Shipping

Advantages of LCL Shipping

• With LCL shipping, you only pay for the volume of goods you are shipping. There is no flat rate like FCL.
• Spending less space on storage means shipping fewer items more often.
• LCL costs less than air freight. You can reduce shipping costs by waiting for your shipment.
• If container capacity is limited (for example, during peak shipping seasons or other periods with high shipping volume), LCLs can be found more easily and shipped faster than FCLs.

Disadvantages of LCL Shipping

• LCLs must be unloaded and loaded from containers. This can add a couple of days to your journey.
• LCL is more expensive per cubic foot than FCL, sometimes twice as high.
• The delays caused by other shipments can cause your items to be delayed as well.
• LCL merchandise is handled more, which increases the chance of damage and loss.

LCL or FCL Shipping – Which one is better ?

LCL is ideal for small loads. However, sometimes it’s better to pay for a full container, even if the load isn’t large enough. LCL costs more for each CBM compared to FCL. Once you reach a certain volume, a full container may be the best option. Shipping FCL is slightly more expensive, but you get many benefits, including faster transit times and less chance of damage.

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Each has its handling and characteristics. Dry bulk freight can be defined as tangible goods in their unprocessed, raw form, such as grains and minerals. Solid bulk cargo usually travels on large bulk carriers with large storage areas.

It can be stored and handled relatively simply. The load is not packaged and stored in a natural state. Liquid cargo, on the other hand, refers to liquid goods such as liquid chemicals, oil, and gasses.

What is the risk of bulk cargo transportation? 

Transporting liquid and dry cargo poses different risks. Dry cargo can be at risk of physical damage or even loss. This can happen due to improper handling or stacking of the load, which results in damage or loss.

Theft is another risk factor because dry cargo can be stolen during transportation. Leakage or spillage is a significant risk for liquid cargo. Leakage is caused by damage to the tanker’s structure or pipeline and human error in loading, unloading, and transit.

It can lead to severe environmental effects and financial losses by those responsible for storing or shipping the product. One of the other risk factors is shipment contamination. This can render the cargo unsafe or unusable.

Types of Bulk Cargo

Break Bulk

It is goods that are not packaged or shipped in bulk. It requires handling and special equipment for loading and unloading. Break-bulk cargo includes pipes, machinery, and lumber.

Neo Bulk

Neo-bulk describes large-scale shipments, including grains, minerals, ore, and raw materials. These products are transported in bulk carrier ships, which can transport large quantities of goods on a trip.

Containerized Bulk

It is transported in FIBCs (flexible intermediate bulk containers). These containers transport loose, powdered, or granular materials, such as grains, chemicals, ore, and construction materials.

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Kocaeli crane accident occurred while the ship named YM Witness belonging to Hong Kong-based Yang Ming company was docking in Evyap Port. As a result of the ship’s inability to stop and maneuver sufficiently while docking, it dropped three cranes. Containers also fell overboard during the incident.

Certainly, we are aware that the incident was very risky, and the health of the people working in the port was at risk. We feel their pain deeply.

Another impact of the incident is the disruption of transportation and organizational processes due to overturned cranes and containers falling into the sea. The accident may affect shipments in the port (Gate-In Status) and shipments scheduled for loading (Booked Status). Some disruptions may occur due to a possible increase in time, possible damage to containers, and other operational delays.

What is the approach of ShipsGo to the Kocaeli Crane accident?

As ShipsGo, we are closely monitoring the terrible accident at the port. Our expert operations team is monitoring affected and potentially affected shipments. We are notifying our customers of the affected or potentially affected shipments identified by our team.

The process poses some challenges not only for the ship involved in the accident but also for other vessels. The operational processes have slowed down considerably in the part where the cranes collapsed, which will affect the estimated voyage times of other vessels.

Our expert operation team is inspecting and transferring your Gate-In and Booked shipments to you in the fastest way possible and will continue to do so throughout the process. In addition, it may also affect ships that still need to be in port (Gate-In is empty), and our team is informing you about such potential delays.

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