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“It is Observed Decline in Containerization in World Trade”

ECLAC’s specialist, Ricardo Sánchez, in an interview with MundoMaritimo of Chile, reveals an innovative approach on the stagnation in the movement of containers in Latin America, consistent in that the proportion of commodities is higher than the 20 years ago, fact that generat the use of fewer containers, which leads to rethinking the previous trend that all the growth of the container was explained by trade, by technological change. Today not anymore: there are other factors that make that be reduced by what we can expect that we do not have growth rates of the containers as spectacular as we had 10 years ago. This reaffirms the so repeated position of Latinports of the need to rethink the port business.

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Fierce Criticism of ITF to Porta-container Shipping Alliances

Unfortunately our pessimistic predictions of the past years more and more come to reality and so as, according to the study by ITF to which we will refer below, “the three major alliances, which currently control more than 90 percent of the container market”; the worse, “the buying power of the alliance carriers can create destructive competition between terminal operators” for which reason ” it is essential that these public expenditures be based on sound economic assessments and that risk-minimisation strategies are in place” and that ” Governments should define clearly which ports are expected to service mega-ships and which ports have different roles”. Otherwise we are doomed to failure.

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Top global ocean carriers and terminal operators initiate blockchain consortium

The members of Ocean Alliance (CMA, Cosco Shipping, APL, Evergreen, and OOCL), Yang Ming (The Alliance), DP World, Hutchison Ports, PSA International and Shanghai International Port Group (SIPG), along with CargoSmart have agreed to form a consortium to develop an open digital platform based on blockchain technology. The platform, named the Global Shipping Business Network (GSBN), aims to establish a digital baseline connecting stakeholders including carriers, terminal operators, customs agencies, shippers, and logistics service providers to enable collaborative innovation and digital transformation in the supply chain.

The announcement follows Maersk and IBM’s recent launch of TradeLens, another blockchain-based platform aiming to simplify the flow of information and documentation throughout the supply chain.

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Shipping Siege Continues Closing

Major shipping companies of Ocean Alliance and The Alliance partnerships (51.4% of the world market), announced a strategic partnership in the Mediterranean-US East Coast service from December. This may be a first approximation for the merger of these two alliances, which could lead to the 83.1% of the global market would be in the power of the new Alliance (Alliance/The Ocean Alliance) and 2M Alliance, strengthening the shipping oligopoly at the expense of the port business.

On the other hand, Hapag-Lloyd and Ocean Network Express (ONE) agreed to collaborate strategically in a network of feeder services that has had their first exchanges in Asia and will soon be extended to Europe. In this respect, the Vice President for Latin America and the Caribbean of Maersk, Lars Nielsen, just predict that will be more consolidation in the shipping industry.

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Ecuadorian Government will built viaduct to improve connectivity of Guayaquil

It is to highlight the Ecuadorian Government decisión to build a 44.2-kilometre viaduct which, with an investment of $800 million,  will connect the port of Guayaquil with the south production centers of the country, substantially improving its connectivity, the main bottleneck in the region.

About this endemic evil in the region, Maritime & Port Council of Mexico (Comport in Spanish) will end in September a study that aims to show the next Government that, although the ports are competitive in the upload and download vessels, which increases the cost of goods from and to the port are deficiencies that arise in port procedures and poor connectivity with railway and road transport.

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Dangerous Shipping Oligopoly

Be more than 80% of global container transport focused on three alliances and the growing presence of the shipping companies in port and logistics operation, urged to seriously reflect the regional port sector on the consequences of this hoarding of the logistics chain.

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