b'november 9 - 22, 2020terminal operators & stevedores 9Ceres_AJOT_2020_Layout 111/2/203:58 PMPage 1(BEYONDcontinued from page 8) chartered in] container fleet amounted effect on 1 January 2020. to 2,208,762 TEUs capacity with a stag-gering 885,330 TEUs allocated to ves-G rowths Purt ?sels over 15,000 TEUs, or about 40% of One of the side-effects of the pan- the fleets total TEU volume. To look atC e r e s T e r m i n a l s I n c o r p o r a t e ddemicisworldwideaccelerationofthe impact another way, of 507 vessels digitalizationofcommerce.Forter- inthefleet32.6%(50ships)account minaloperators,thedigitalizationoffor just over 40% of the total capacity freight movement works hand-in-handand the share for the larger ships 17,000 with the efforts to more fully automateTEUs and up is rising faster than other terminal operations. And the automatedsmaller vessel classes further tilting the terminal, integrating autonomous yardscalestowardslargerboxshipsinthe handling equipment matched to digitalnear future. execution and communication with theWill the building of ever large con-parties throughout the supply chain, istainerships continue? While the short-the elusive holy grail for TOs. Butterm analysis seems to suggest at least the goal of a joystick computer game- another generation of ships of 20,000A Leader In Stevedoring & Terminal Operations like terminal ops located far from theTEUwillslipdowntheways,some quay, may be farther off than most portstudiessaythisgenerationofships pundits believe. Not because of tech- might be the last mega-containerships. nological obstacles rather because con- In DeloittesGlobal Port Trends tainerization still has a lot of growing2030 (released in April) noted, The to do and terminal automation couldraceforeconomyofscalevessels prove elusive.seems to have come to an end. Large- ContainersROROBreakbulkCruise ServicesIn a February 2019 investors pre- scale ship building projects are there-sentation Cargotec, one of the worldsfore unlikely to continue.largestsuppliersofterminalequip- Stillbeforegiantcontainerships ment and software [of which Kalmargo the way of the megalodon, termi-andNavisarenotablesubsidiaries],nals will still need to address the con-pointed out, only 40 terminals (1,200siderableconcernsofmovingboxes terminals)areautomatedorsemi- rapidly off the mega-boxships or risk automated globally.becomingchokepoints(orchoke- For over sixty years, the Ceres name has been the standard of excellence and service throughout North America.And while the containerized move- ports) in the cargo stream. Our track record of success is largely attributable to the high quality of service, productivity and complete ment of freight is well over a half centuryIt seems wherever you look, newdependability we have delivered to our customers in every Ceres location. With a strong management teamold and normally considered a maturegantry cranes and other equipment areand a commitment to customer service and safety, Ceres is uniquely positioned to capitalize on future industry, the penetration of container- being delivered, whether it is the Portopportunities for growth and profitability in the terminal operations and stevedoring market. Ceres experience,ization still remains very low.ofVirginia,Charleston,LosAnge- quality service, reliability, attention to detail and can-do attitude ensures customer satisfaction and alwaysAccording to Drewrys (in a DPles, Long Beach or terminals in Asia,delivers world-class service. Worldinvestorsreport)theglobalEurope or the Middle East.averageTEUperthousandpeopleTheres a reason for the rush of (TEU/000) is 104, with countries likenew equipment. A tandem lift gantry the UK and China being on the highcrane is an expensive but doable solu-side, 168 and 165 respectively, whiletion to container handling the larger on the low side the nations of Latinvolumes brought by larger ships. But America notched 93, Africa at 22 andexoticengineeringisntnecessarilyCeres Terminals Incorporated Nashville, Tennessee615-232-7800India just 13. These penetration num- enough to address issues both insidewww.ceresglobal.combers point to a sizeable gap betweenand outside the terminal gates.thecontainerhavesandcontainerThesituationisfurtherexacer-have nots. From a TO perspective thatbatedbytheconstructoftheoceanan illustrative explanation of the impacttial IMO strategy mentioned above by meanstherearemanyregionsthatcarrierservicesthemselves.Thereterminal shifts in the companys 2019thePSAsPeter Voseraimstoreduce remain inadequately covered and thusarenowfewermajorcarrierscarry- annual report writing, The three con- CO2 emissions from shipping by at least havehighgrowthpotentialsomeingmoreboxestheneverybefore.tainer terminals in Bremerhaven closed40% by 2030, with a goal of moving analysts saying the TO market couldAndfurthercomplicatingcontainerthe year with clear volume losses oftowards70%by2050,andtoreduce grow by $4.64 billion over the nextflows is the fact that most of the carri- -10.9% to 4.871 million TEUs (2018:GHG(GreenhouseGasEmissions) fouryearsalone.Butmuchofthisers operate within one of three major5.467 million TEUs).The transfer ofemissions by at least 50% by 2050 com-potential lies in regions where it willcarrier alliances [2M, THE Alliance,fourtransatlanticservicesoperatedpared to the base year of 2008. be difficult to construct and manageand Ocean Alliance]thus the loss orby THE Alliance to HHLA ContainerHowtheoceancarriersandthe newterminals.Regionsoftenlack- addition of an alliance call can dras- TerminalAltenwerderinHamburgterminals will accomplish this is still ing both economic structure to attracttically alter a terminals volumes updelivered a bitter blow to EUROGATEvery much a work in progress. investment and to develop the neces- or down. Added to this mix is the factContainerTerminalBremerhaven,From an ocean carrier perspective, sary supporting infrastructure (roads,that in many circumstances the con- leading to a volume loss of 58.6% com- the number of scrubber fitted container rail and IT) for building terminals. tainer flow is heavily weighted in onepared with 2018. ships has increased to 652 at end of directionfor example Asia to the USFortuitously for Eurokai, they wereOctoberwithonly9moreongoing 20,000reasons West Coastcomplicating the returnalso the recipient of the good fortuneretrofits, according to Alphaliner. This Another issue facing terminal oper- ofcontainers. Withterminallandatas volumes increased at EUROGATEmeansthat395scrubber-fittedcon-ators is the increasing size of containera premium, moving freight at veloc- ContainerTerminalHamburghittingtainer ships have been added since the ships. With linehaul containerships nowity can be compromised by a flood ofover 2 million TEUs of throughput inbeginning of the year. However, long-regularly topping 20,000 TEUs, termi- empties being repositioned. 2019, nearly 28% higher than in 2018term scrubbers wont solve the carbon nal operators need to move more boxesForexample,asThomasEckel-as the terminal operator won a con- problem and the search for alternative fasterthroughtheterminalthanevermann,chairmanofthemanagementtractwithOCEAN AllianceEurope- vessel fuels like LNG (11 operational before. For example, take Maersk, [2019boardofHamburg-basedEurokaiFarEastserviceoperatedbyCMAboxships)orpotentiallyhydrogenis annual report] the carriers owned [not(parent company for Eurogate) offeredCGM. Still for most TOs (and ports)well underway. the loss of a carrier alliance contractThesecarrierinitiativesarejust is devastating to the bottom line. Andpartofthedynamicofhowvessels while the global TOs may be able towill have to conform to regulations in offset the loss in one part of the worldport waters (some ports have already with the addition of an ocean carrierinstituted incentive programs for using alliance (possibly even the very samehigher fuels with less GHG emissions) carrier alliance) somewhere else in theand ship-to-shore connections, and to portfolio, to the port the lost call isntwhich TOs also must adhere.soeasilybalancedout. TothispointRegional, national and local envi-there is certain reticence among manyronmental regimes are also reshaping largerports(andportauthorities)ofthe supply chain. How much influence placing all their bets on one TO. the new regulatory matrix will have on vessel routings is a very open ques-t hem anys haDes ofG reen tion at this moment in time. To some There is also the challenge for ter- degree, carriers do have the luxury of minalstobecomegreeneroperatorsmovingassets(ships)tofitcircum-particularlyinurbanportareaslikestancethis years blank sailings and PSA Halifax receives the largest container vessel, the CMA CGM Brazil, to enter a Canadian port. Los Angeles and Long Beach. The ini- (BEYONDcontinued on page 12)'