AD Ports Group drives smart port innovation with digitalization


The competition for shipping container traffic is becoming more intense due to new trade agreements, shifting alliances, geopolitical tensions, supply chain challenges, and the rising economic influence of the Global South, all of which are altering long-established maritime routes.

Amid these changes, many ports have successfully navigated turbulent times by embracing emerging technologies to digitalize their operations, transforming into what is now called smart ports.

The AD Ports Group, a leading player in global trade, logistics, and industry, provides an insightful case study on the effective implementation of digitalization in its white paper, “Digitalisation for Enhanced Efficiency: Leveraging Data for Smart Ports.”

“When applied to ports, big data and digital-twin technology are set to transform a wide range of operations. This technology can store different streams of information from ports, logistics, sensors and positioning networks; and process that information in real-time, which allows ports to create multidimensional models that help optimise port supply chains, reducing delays and congestion at the facilities and increasing the efficiency of the different stakeholders involved,” stated Noura Al Dhaheri, CEO of Digital Cluster & Maqta Gateway, AD Ports Group.

This document is valuable for understanding how digital transformation is reshaping the maritime sector and its vital role in improving global trade efficiency.

The white paper offers a comprehensive analysis of how digital technologies are revolutionizing port operations, detailing strategic approaches to harnessing data for enhanced operational efficiency, sustainability, and competitiveness.

It also explores the successes and challenges of digitalization in ports across Asia, Africa, and South America—regions that have made significant strides in port technology.

The paper emphasizes how integrating advanced technologies and data-driven strategies has been pivotal in modernizing traditional port operations to meet contemporary demands.

The Group’s experts critically address prevalent challenges such as software incompatibility, cybersecurity threats, and resistance to change within the industry. They also provide an analysis of new regulations and legislation, including the mandatory introduction of Maritime Single Windows (MSWs) in early 2024, and their global impact on port operations.

The white paper, titled “Digitalisation for Enhanced Efficiency: Leveraging Data for Smart Ports,” is available for download on the AD Ports Group website, offering stakeholders in-depth insights into the future of smart port operations.

“Undoubtedly, digitalisation increases productivity in port management and operations processes, making us more competitive. Port customers and stakeholders value the following: greater transparency, reliability, greater operational efficiency and productivity. All this cannot be achieved without digitalisation,” stated Ammar Mubarak Al Shaiba, CEO – of Maritime & Shipping Cluster, AD Ports Group.




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Senate Introduces Separation of Powers Restoration Act, Working Group in Response to Chevron Deference Decision


With the Supreme Court’s decision to overturn Chevron deference—a long-standing judicial standard that required courts to defer to agency interpretations of ambiguous laws—there is now a renewed focus on legislative authority and its implications for regulatory practices. Following the Supreme Court’s decision to overturn Chevron, Senator Eric Schmitt (R-MO) is leading an initiative to reassert legislative authority over administrative agencies. By introducing the Separation of Powers Restoration Act (SOPRA), Schmitt and his colleagues aim to solidify the shift away from agency deference. The House passed the same bill earlier in this session of Congress.

SOPRA proposes a de novo standard of review, meaning that courts will evaluate the merits of legal arguments without granting deference to agency interpretations. This change could help businesses, including the cold chain, that have been subject to increasingly stringent and burdensome regulations. Senator Schmitt’s efforts also include forming a working group of Senators dedicated to examining the impact of the recent Supreme Court decision on regulatory practices and exploring further legislative measures to limit what they view as an overreach by federal agencies.

GCCA appreciates the efforts of Sen. Schmitt and the working group and will continue to work with Congress and like-minded partners to address regulatory burdens.



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Kongsberg Maritime Adds To Rim Drive Azimuth Thruster



Kongsberg Maritime has launched a new Rim-drive Azimuth Thruster, the RD-AZ-2300.

The RD-AZ-2300, with a propeller diameter of 2,300mm, sits between the existing RD-AZ-1900 and RD-AZ-2600 models and is suited for vessels operating in demanding environments such as offshore wind farms, where precise maneuverability and low noise levels are crucial.

In adherence to DNV’s Silent R classification, the RD-AZ-2300 also provides significant advantages to underwater research vessels by reducing underwater radiated noise (URN) below sea levels, says Kongsberg Maritime.



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Department of Transportation Expands FLOW Initiative to Largest West Coast Container Ports


The U.S. Department of transportation announced on August 13th that the Port of Oakland and the Northwest Seaport Alliance, including the Port of Seatle and the Port of Tacoma, are now members on the Freight Logistics Optimization Works (FLOW) initiative. FLOW is a public-private partnership among industry and government to build a forward-looking, integrated view of supply chain conditions in the United States. This expands the FLOW initiative’s reach to the five largest container ports on the West Coast.

The Port of Oakland and the Northwest Seaport Alliance join the Port of Los Angeles and the Port of Long Beach as FLOW members. Collectively, they comprise roughly 95% of West Coast inbound container volume. With all major West Coast ports now FLOW members, ocean carriers, shippers, truckers, and railroads will be able to better plan for and predict capacity needs to keep cargo moving.



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Observer Program Failing Australian Sheep



A report released by Australia’s Inspector-General of Animal Welfare and Live Animal Exports highlights ongoing and systemic failures within Australia’s Independent Observer program designed to provide independent reporting of animal welfare at sea.

The program was established after the 2017 death of over 2,400 sheep on the livestock carrier Awassi Express (now Anna Mara). The sheep died of heat stress, and in 2018, television footage aired from this and four other voyages widely undermined public confidence in the treatment of animals in the livestock export trade.

The Inspector-General’s report concludes that the Independent Observer Program, implemented in 2018, does not appear to provide acceptable levels of assurance regarding the health and welfare of livestock.

“This makes a mockery of any claim from live exporters that they’re effectively regulated,” said RSPCA Australia Chief Science Officer Dr Suzie Fowler.

RSPCA notes that available data demonstrates ongoing animal welfare issues including 80% of reports indicating sheep starving on board and at least 60% reporting heat stress.

From April 2018 to May 2023 observers were only present on 53 out of 172 live sheep export journeys.

“To quote the report, the fact that Independent Observers are not being deployed on most voyages that meet the criteria for a deployment is evidence that the program’s assurance objectives are not being met,” says Fowler.

She says the Independent Observer program is failing to provide that much-needed transparency. “For example, Independent Observer footage released under FOI this year from a voyage in 2018 showed several serious sheep welfare issues including indicators of severe heat stress — a very different picture to footage posted on social media by the live exporters at the time from the same voyage.

“Rather than being transparent about this and releasing the Independent Observer footage, the regulator and the live export industry fought tooth and nail to keep the footage secret. It was only after a lengthy battle that the RSPCA won access to the footage, six years later.

Australia has legislated for the phase out the live export of sheep by May 1, 2028, in favor of a chilled and boxed meat trade.



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FDA Announces Public Meeting on the Enhanced Systematic Process for Post-Market Assessment of Chemicals in Food


The Food and Drug Administration (FDA) has announced that it will host a public meeting to share the agency’s enhanced systematic process for post-market assessment of chemicals in food and hear stakeholder perspectives on their proposal.

The FDA is developing a systematic process for conducting post-market assessments of chemicals in food. This includes ingredients considered generally recognized as safe (GRAS)food additivescolor additivesfood contact substances, and contaminants. This is intended to guide post-market assessment work going forward and includes a transparent process for identifying and prioritizing food chemicals currently in the market for safety reviews. This project is part of a larger enhanced approach for food chemical safety.

The public meeting will occur on Wednesday, September 25, 2024, from 12:30 – 4:30 PM ET. The meeting will be held in-person at the FDA White Oak Campus, with the option for virtual participation. You can register for this meeting HERE, and registration will remain open until the meeting begins.



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Barge Confirmed As Earliest Known Wreck In Swan River


A barge wreck found in September last year has been confirmed as the earliest known shipwreck discovered to date in Western Australia’s Swan River, the WA Museum said. The barge was identified as one that lost in 1882 while carrying limestone from Fremantle to Perth.

The State Government’s release of detailed 3D multibeam surveys of the Swan River riverbed played a crucial role in the initial discovery of the wreck, which was first identified by Maritime Archaeology Association WA President Patrick Morrison and his colleagues Jess Green and Ian McCann.

Following this discovery in 2023, WA Museum Maritime Archaeologist Ross Anderson undertook thorough investigations of the site and historical documents to pinpoint the wreck’s identity, age, and its historical and archaeological significance. Important factors in the identification included the wreck’s design, its precise location and depth, and the presence of a large ceramic demijohn found at the site.

This wreck holds historical importance as it highlights the role of barges in transporting bulk cargoes between Fremantle and Perth during the 19th century, before the advent of motorized transportation.

In addition to its historical value, the wreck is of considerable archaeological interest due to its well-preserved state, which provides insights into the construction and cargo handling methods of typical Swan River barges.

Culture and the Arts Minister David Templeman said, “I commend the outstanding work of the WA Museum and Maritime Archaeology Association of WA for integrating state-of-the-art search technology and historical research to find and identify this historic wreck.

“WA has a rich maritime history with more than 1,600 ships wrecked off our vast coastline. It is exciting to see how new technology is unveiling further glimpses into our maritime history.

“Having identified the wreck from 1882, it is protected under the State’s Maritime Archaeology Act. While people may visit or dive the wreck, it is important to remember it is an offence to anchor on, damage or remove objects from a protected site.”

(Image: WA Museum)



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Charting Pitney Bowes Global Ecommerce’s path to bankruptcy


The struggles of Pitney Bowes’ former e-commerce logistics unit have been laid bare in its Chapter 11 bankruptcy process as operations wind down.

Court filings detail the years-long struggle of Global Ecommerce, or GEC, to become profitable and subsequent efforts by Pitney Bowes to offload the business. Despite handling millions of packages every month, servicing hundreds of brands and utilizing a network of 12 U.S. parcel sortation centers, the shipping provider never provided the necessary return for its parent company.

“Simply put, the GEC business is no longer profitable and has not been for some time,” said Eric Kaup, chief restructuring officer of DRF Logistics – GEC’s new name as it heads toward closing – in an Aug. 9 court filing.

That fundamental issue led Pitney Bowes to sell its majority interest in GEC to Hilco Global. The financial services firm will liquidate and close the business through the Chapter 11 process, which is slated to wrap up in early 2025. Several vendors, including UPS and Ambi Robotics, are seeking repayment through the process.

Here’s what led to GEC’s closing, according to Kaup’s account.

Profitability woes never faded

Pitney Bowes originally saw the GEC business as a way to jump into the growing e-commerce package delivery space while hedging against long-term mail volume declines, a threat to its mail processing business.

To build up the GEC segment, Pitney Bowes acquired cross-border services provider Borderfree in 2015 for $395 million. Two years later, it purchased delivery, returns and fulfillment provider Newgistics for about $471 million to expand into the domestic parcel delivery market.

But the potential upside of those acquisitions never materialized, Kaup said, despite Pitney Bowes’ heavy investments to build out GEC’s network infrastructure through the years. GEC reported consistent annual drops in earnings before income and taxes since the Newgistics acquisition in 2017.

Pitney Bowes Global Ecommerce losses mounted for years

Earnings before interest and taxes since 2017

Recent market trends further challenged GEC. The parcel delivery space has grappled with excess capacity, or a supply-demand imbalance, since the pandemic-fueled e-commerce boom cooled off and slowed volume growth.

Carriers have offered up shipping discounts in an attempt to cover fixed costs and fuel volume growth in a softer market. However, this lowered the amount of revenue GEC received per package and further strained profitability.

“These forces (among others) placed significant financial pressure on the GEC business,” Kaup said.

GEC sale explored for months

Amid continued losses, last year Pitney Bowes launched a strategic review of the segment. As part of the review, the company sought out potential buyers.

On Pitney Bowes’ behalf, J.P. Morgan contacted 30 potential purchasers starting in November 2023. Pitney Bowes executed non-disclosure agreements and shared confidential materials with 17 of those potential purchasers.

“This robust and comprehensive marketing process was undertaken over a period of more than eight months,” according to an Aug. 15 disclosure statement.

The company ultimately didn’t receive any binding bids for the GEC unit at a price it found acceptable, Kaup said. Pitney Bowes did manage to make some GEC-related sales beforehand, however. It sold the fulfillment portion of its business to Stord in July for $1.25 million. GEC also sold $500,000 worth of robotics equipment and chargers to healthcare company Medline the same month.

But without a buyer in place for the entire GEC unit, Pitney Bowes determined that a liquidation and wind-down of the business was the best path forward to maximize creditor recoveries, Kaup said.

GEC’s top 30 unsecured creditors, the majority of which are transportation vendors such as UPS, are seeking more than $24.7 million in payment, according to an Aug. 8 court filing.

Vendors seek payment from Pitney Bowes Global Ecommerce

Creditors with the 10 largest unsecured claims against the company

UPS and several other creditors listed did not respond to requests for comment.



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Carrier’s remote reefer container cargo monitoring


Singapore: Carrier Transicold’s BlueEdge Partner Program now has a platform that complements Carrier’s Lynx Fleet telematics for real-time remote monitoring of reefer containers onboard ships.

The Vessel Control Tower platform, offered through the BluEdge reseller channel, ensures network coverage at sea, giving ship crew an overview of all connected assets onboard – Carrier Transicold units or otherwise – and for assets beyond container refrigeration units. This works in tandem with Lynx Fleet, which helps refrigerated transporters maintain compliance and accountability for perishable food and pharmaceuticals. 
   
The Vessel Control Tower platform supports the ‘management by exception’ operating ethos, displaying notifications and alerts for onboard connected assets via an intuitive vessel bayplan user interface. This minimises the need for seafarers to perform laborious and often dangerous manual reefer monitoring walks.  

Vessel Control Tower’s technology offers full visibility of connected assets for both crew members and onshore personnel in real-time, and is a breakthrough in supply chain management as it supports:  

  • mixed-reefer fleet view (any refrigerated unit with a telematics device)
  • mixed-asset view (refrigerated units, dry boxes, gensets, etc. with a telematics device)
  • partner shipping line’s asset view (with a data-exchange agreement). 

“VCT fills a crucial coverage gap encountered during extended voyages at sea, and when used in conjunction with Carrier’s Lynx Fleet telematics solution, enables complete end-to-end remote monitoring of connected assets, thus eliminating the need to manually check on container conditions,” said Tan Bor Yow, senior channel manager, BluEdge, Global Container Refrigeration, Carrier Transicold.

“This ensures optimal cargo safety, cost reductions and operational efficiency throughout the voyage, and represents a leap in supply chain management.”  

The platform works with cellular and long-range technology, and it transports data to the cloud without the need for APIs. It uses a cost-effective, dedicated satellite terminal and service to enable near real-time monitoring on land or at the main office. The Vessel Control Tower system hardware can be easily retrofit on existing equipment and can be installed on any container vessel within four hours with minimal cabling by an authorised BluEdge Partner.



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TS Lines in renewed drive towards long-haul routes


Taiwanese intra-Asia carrier TS Lines has ambitions of expanding further into long-haul
routes.

On 13 August, TS Lines launched a standalone Asia-US West Coast express service, AWC2,
just over a month after returning to the transpacific lane through a joint AWC service with
Dubai-based SeaLead Shipping.

AWC2, connecting Guangzhou, Xiamen, Busan and Long Beach, was launched with the 1,800 TEU TS Bangkok, carrying toys, construction materials, apparel, shoes and hats, setting out from China’s Guangzhou port. The ship will arrive in Long Beach on 5 September, offering a 23-day turnaround time.

According to TS Lines’ website, two other ships, TS Melbourne and TS Tokyo, have also been assigned to AWC2.

Despite the ongoing correction in freight rates, particularly on the Asia-US West Coast
routes, TS Lines’ management is optimistic about filling the ships.

TS Lines’ Xiamen representative, Wu Chengyan, said: “Shipping demand is very strong,
especially in the apparel, footwear, manufacturing, bulk commodities and cross-border e-
commerce sectors. We designed the route to use Xiamen as the last port of call (in China),
and after leaving the port, the ship goes directly to the US West Coast, so customers will no longer have to worry about transit.”

Wu indicated that if demand is good, TS Lines could deploy up to five vessels to AWC2.

On 30 May, TS Lines renewed its listing application on the Hong Kong Stock Exchange. The
company’s prospectus disclosed its intention to resume long-haul services.

The company made its long-haul entry in 2021, during the COVID-19-fuelled boom, but
withdrew from this trade in 2023 as the market corrected. This year, TS Lines made a
comeback to long-haul services as the Red Sea crisis sent rates skyrocketing again.

To bolster its competitiveness on long-haul routes, TS Lines ordered two 14,000 TEU and
two 8,000 TEU ships from Shanghai Waigaoqiao Shipbuilding in May, for delivery in 2027.

Wu said TS Lines is also keen to start a Far East-Mexico service, as rates between the Far
East and Central/South America are at two-year highs.


Martina Li

Asia Correspodent




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