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Singapore retained its position as the world's most important shipping hub on the Xinhua-Baltic International Shipping Centre Development (ISCD) Index.This is the seventh consecutive year Singapore is ranked first on the index, thanks to its advantages of geographical location, shipping industry ecosystem and supportive government policies, according to the Xinhua-Baltic Report 2020 which was released on July 11.The ISCD Index is published by the Baltic Exchange in collaboration with Chinese state news agency Xinhua. The index provides an independent ranking of the performance of the world's largest cities that offer port and shipping business services.Baltic Exchange CEO Mark Jackson said that while the latest report reflects the pre-Covid-19 period, port cities that continue to build on their strengths will be able to communicate a clear vision for the future."We call on all the main shipping hubs to continue investing in education, R&D and new services; remain open to global talent and offer an attractive international business environment," he said.The Baltic Exchange, which is headquartered in London, was acquired by Singapore Exchange in November 2016.Maritime and Port Authority of Singapore chief executive Quah Ley Hoon said: "This good news comes amidst the Covid-19 gloom. The real test will be how we bounce back in a world shaken by an unprecedented crisis."She said that Singapore will continue to rally governments and the global shipping community to work together and emerge stronger from the crisis caused by the pandemic."Within Singapore, we stand united with our maritime companies, industry partners and unions, and will strive to maintain our position as a leading International Maritime Centre and a global hub port," she said.The report showed London climbing back to the second place on the ISCD Index thanks to advantages accruing from providing high-end shipping finance, insurance and legal services.In 2018 and 2019, London occupied the third place on the index.Shanghai, the biggest port in terms of container throughput, climbed to the third spot this year, helped by steady improvement in port facilities and shipping service levels.Meanwhile, Hong Kong fell to fourth place mainly due to a decrease in cargo throughput and a drop in rankings relative to other centres in areas such as ship brokerage, insurance and legal services.Dubai, the preeminent shipping hub in the Middle East, ranked fifth for the third consecutive year.Rotterdam and Hamburg have also retained their positions since 2018, ranking sixth and seventh respectively. Benefiting from an improving business environment, Athens rose to the eighth slot.New York-New Jersey slipped by one place to the ninth position, while Tokyo rose one spot, returning to the ranks of the top 10.Mr Xu Yu Chang, president of the China Economic Information Service, a wholly-owned company of Xinhua, said:"I believe the continued release of the Index will further contribute to sustainable global economic growth by optimising shipping resources worldwide as well as promoting the scientific development of international shipping centres."..

SINGAPORE (Bloomberg) --From the Middle East to Siberia, the North Sea down to Latin America, the prices of physical cargoes of crude oil are rallying hard almost everywhere, underpinning a surge in headline futures markets. Now, though, attention is turning toward just how sustainable the recovery will really be.Brent crude traded on the ICE Futures Europe exchange has nearly doubled over the past month and is trading above $36 a barrel, while America’s West Texas Intermediate -- which dipped into negative territory at one stage -- has also soared. All that’s happened because global producers have slashed millions of barrels of output tightening the real supply of oil, while demand has started to recover, led by China.Those dynamics have allowed multiple crude streams to fetch dollars-per-barrel premiums relative to the benchmarks they trade against, when just a few weeks ago they were being sold at deep discounts. The dramatic turnaround means sellers are getting more for their oil, but higher prices can be self-defeating: enticing producers to ramp up output and quickly destroying margins that refineries are earning from processing crude.“The early signs of recovery seem to be fueling a rapid re-pricing in parts of the market,” said Richard Mallinson, an analyst at consultant Energy Aspects Ltd. “But a lot of the re-balancing depends on the supply that’s gone offline remaining offline. We’re not there yet, but you could get price levels where a lot of those early shut-ins start to be reversed.”With the notable exception of the U.S. Gulf, where traders are awaiting an influx of crude from Saudi Arabia, the prices of most physical grades have been rallying for days or weeks. The strongest have tended to be those streams most directly exposed to China, where oil demand has recovered to such an extent that it’s almost back to where it was a year ago.Sharp Surges. Russia’s ESPO crude, which is shipped mostly to Asian buyers from the country’s Far East, traded at premiums as high as $3.50 a barrel to its Dubai-crude benchmark this week. By contrast, June-loading cargoes changed hands at discounts of as much as $4.80 to Dubai last month.Cargoes of another Russian variety -- Sakhalin Blend -- traded at a discount of $1-$2 a barrel against the Dubai benchmark for August loading, a sharp narrowing from discounts that were at $8.70-$9 just a month ago.Iraq’s Basrah Light and Heavy crudes for June loading were sold to a buyer in China at a premium of between $4.50 and $4.80 a barrel to official selling prices, according to traders who asked not to be identified. That’s up from $2.50 and $3.50 in May.In Angola, where China is the main lifter, differentials have risen by about a dollar within the past week, according to traders. The North Sea has gained sharply too.The strength underscores just how fast the oil market tightened once prices collapsed last month and production began to plunge because of Covid-19 and its devastating impact on consumption of transport fuels. Alongside the demand pickup, OPEC and its allies are cutting global output by almost 10 million barrels a day, and North American drillers have cut rigs at a frantic rate.“Simply put, OPEC+ led production cuts and global shut-ins are working,” RBC Capital Markets analyst Michael Tran wrote in a research note, highlighting particular strength in most North Sea and West African crude grades.While the bank was expecting the oil market to flip into deficit by late June or early July, “preliminary indicators are suggesting that balances are cleaning up four-to-five weeks ahead of our anticipated time line, as are prices,” he said.Europe, U.S. Recovery. In Europe, the demand recovery is still well behind Asia’s, though it’s benefiting from some sharply reduced loading programs. The price of Russian Urals crude in northwest Europe has been mostly stable at a small premium to the benchmark during the past week, but nonetheless much stronger than a discount of about $3 a barrel a month ago, according to traders.The latest Urals loading program for the first five days of June shows a steep drop in exports compared with the same period in May. Exports of Mediterranean CPC Blend crude are set to slump to a 13-month low in June, giving an upward lift to prices.The bleakest spot for a price recovery remains the U.S. Gulf Coast, where a flood of exports from Saudi Arabia has exacerbated a surplus, adding to pressure on competing offshore grades like Mars Blend. Onshore, West Texas Sour crude has dropped to a discount of 35 cents a barrel below WTI futures, down from a premium of $3.50 as recently as May 11. WTI in Midland, Texas -- the heart of the state’s shale region -- has also slumped.Prices in the Midwest and in Western Canada have been better supported by the supply cuts and demand recovery. Bakken crude is 75 cents over WTI, from a $15 discount in mid-April. Western Canadian Select last week reached the strongest level in data stretching back to 2008.The wider rally, though, means that some analysts view a short-term pull-back in prices as possible.“In the very short-term, prices may have accelerated a bit too fast,” said Eugene Lindell, an analyst at JBC Energy GmbH in Vienna. “The situation on the refining side is pretty brutal right now.”Still, it could be positive for sellers if they maintain supply discipline, he said. Beyond the next two or three weeks, JBC is “ultra bullish” because the production cuts will make the global market “seriously tight.”..

The Covid-19 pandemic still rages unabated in April 2020, affecting lives, businesses, individuals and industries in ways that will change the world forever. The International Labor Organization predicts that as many as 25 million jobs worldwide could be wiped out by a worldwide recession brought about by the pandemic.In many countries, governments imposed “lockdown” to restrict the movements of its citizens and to control the rapid spread of the pandemic. The lockdown was implemented throughout the countries in Southeast Asia in stages:a) Malaysia: The Malaysia government announced a national lockdown on March 18 by issuing the Movement of Control Order (Restricted Movement). The period of the lockdown was initially until March 31, but it has been extended to April 14. Specific exceptions have been given to transportation and some other essential service sectors.b) Indonesia: The Indonesian government on March 15 formed the National Disaster Management Agency (BPNP) and declared National Disaster – Non-Natural situation until May 29. It has requested all citizen to work, study and pray from home.c) Singapore: On April 3, Singapore announced ‘circuit breaking’ measures, a euphemism for lockdown. Earlier measures included trade and border control measures: the Maritime and Port Authority of Singapore implemented temperature screenings at all sea checkpoints, including ferry and cruise terminals, PSA terminals and Jurong Port for inbound travelers. It has also taken additional precautionary measures such as prohibiting shore leave for personnel in Chinese ports, mandatory temperature checks, keeping a log of crew movements and restricting staff travel to China, among others.d) Thailand: Thailand’s lockdown operates until April 30. e) Philippines: President Rodrigo Duterte’s lockdown came five weeks after the first case was discovered, and a declaration of a State of Emergency on March 25 gave him extraordinary powers.Cruise IndustryAs the pandemic raged worldwide, the plight of the passengers and crew on board cruise ships and the cruise industry came into stark focus. Cruise ships - with large numbers of passengers and crew and an emphasis on communal dining and group activities - became incubators of the Covid-19 virus, and infections on ships like the Diamond Princess have been described as floating nightmaresThe Diamond Princess, operated by Princess Cruise Lines, departed from Yokohama on February 4 for a round trip cruise. On January 20, an 80-year-old passenger from Hong Kong embarked in Yokohama, and he disembarked in Hong Kong on January 25. On February 1, six days after leaving the ship, he visited a Hong Kong hospital, where he tested positive for Covid-19. The ship was due to depart Yokohama for its next cruise on February 4, but it announced a delay the same day to allow Japanese authorities to screen and test passengers and crew still on board. On February 4, the authorities announced positive test results for SARS-CoV-2 for ten people on board, the cancellation of the cruise, and that the ship was entering quarantine. By late March, about 712 of 3,711 people on the Diamond Princess (19 percent) had been infected by Covid-19.Beginning March 15, Australia banned cruise ships arriving from foreign ports. However, exemptions were granted to allow four ships that were already en route to Australia to dock and disembark their passengers. On March 19, the Ruby Princess - one of the four ships given an exemption - docked in Sydney after a cruise to New Zealand. The cruise ship was forced to return to Sydney early after a passenger reported a respiratory problem, but when disembarking, passengers were not told that anyone on board presented any symptoms during the voyage.Many countries in Southeast Asia banned cruise ships from disembarking their passengers for fear of importing the virus through infected passengers and crew. Cruise ships are often registered under flags of convenience, e.g. Panama, the Bahamas and other countries chosen for their low wages, cheap fees and lenient health and safety regulations - and, more often than not, their non-existent tax regimes. At the time of writing there are still cruise ships with passengers and crew infected by Covid-19 seeking safe harbor. These ships often have difficulty finding countries and ports willing to receive them and allow them to disembark passengers. Each country can set conditions for entry into its ports and many have denied entry to these ships seeking safe harbor. These incidents involving cruise ships pose the question whether the cruise industry can survive or recover from the effects of the pandemic.Port CongestionMany countries have responded to the pandemic by imposing lockdown or restricting movement. Some retailers and manufacturers fail to pick up their cargo and containers because their warehouses are full or closed. Some ports remain open but have reduced workforce, which exacerbates the cargo congestion. This causes disruption of the supply chain, including movement of essential goods and foodstuffs. The cargo lying uncollected at ports creates congestion and takes up space, reducing capacity for incoming cargo and containers. Some ports have taken the precaution to declare ‘force majeure’ to pre-empt claims and legal liability. The closure of ports and port congestion have caused disruptions in the supply chain and import and exports.Supply ChainsThe pandemic has exposed the fragility of the global supply chains and brought into acute focus the shortages of critical medical components needed in the fight against the pandemic.Wuhan and China in general were important manufacturing bases for manufacturing of key components for companies like Apple. The pandemic lockdown and measures taken stopped manufacturing of crucial component items and disruption of supply chain. When the manufacturing Countries ravaged by the pandemic find it hard to provide adequate medical care due to shortages of critical medical equipment such as ventilators, protective masks and other gear. In the U.S., the shortage has multiple causes, including problems with the global supply chain. Before the pandemic, for instance, China produced approximately half the world’s face masks. As the infection spread across China, their exports came to a halt. Now, as the infection spreads globally and transmission in China slows, China is shipping masks to other countries as part of goodwill packages. The United States has not been a major recipient.CrewThe Philippines, China, India and Indonesia are among the biggest suppliers of crew members. According to one report, the pandemic has caused some 40,000 Indian crew serving on merchant and cruise ships to be stranded worldwide.Airline and port restrictions in most of these countries have made it nearly impossible for crew members to get home if the governments do not make special arrangements. Even if a ship reaches an open port, the crew members may still be out of luck because most international air traffic is grounded. The safe repatriation of the crew from the vessels will require the joint efforts of the governmental agencies, the crew manning agency and the owners.InsuranceInsurance implications arise from the disruption of shipping and logistics due to the pandemic. Cargo owners, importers, risk managers and insurers need to monitor closely: (a) Accumulation of Cargo; (b) Delay; (c) Delay Clause; (d) Demurrage Charges; (e) Deviation; (f) Force Majeure; and (g) Interruptions in Transit.The insurance implications of the disruption include:a) Cargo and stock throughput – limited workforce availability will reduce capacity to distribute and handle goods. Cargo is also envisaged to be held for a longer duration at ports and for storage locations to see a volume increase whilst stocks await their next destination.b) These areas raise the limitations of cover of the normal marine cover:Delay – although many will want to keep their cargo moving, delay during the ordinary course of transit or while the goods are in storage could soon be inevitable. Most cargo and stock throughput policies exclude loss or damage solely caused by delay.Additional costs/charges –hold-ups or re-routing goods to an alternative destination due to government prohibition will incur an additional cost. Although these costs are usually sub-limited, the additional forwarding costs clause (or similar) will provide extra financial support should you experience added expenses.Vulnerable goods – perishable items such as pharmaceutical products and produce operate on a stringent and well-monitored time schedule. The normal cover for marine insurance does not cater to the characteristics of these cargoes due to exclusions for inherent vice and delay. Both will operate when ports are congested and cargo clearance is delayed in the current outbreak. Legal DisputesThe disruption caused by the pandemic has legal effects. The cargo owner who charters vessels to ports to load or to discharge cargo is required to nominate a “safe port” - i.e. a port which the vessel can safely call at, conduct cargo operations and safely leave. When the intended port is closed, the cargo owner / charterer would be obliged to nominate an alternative port. This is often not possible as there will not be any alternative destination the cargo can be discharged at.If the cargo is non-essential cargo, it cannot be moved to the ports during a national lockdown. This may result in the vessel arriving at the port and finding no cargo to be shipped, causing incurring of costly demurrage.Before the vessel can take on cargo, it must be cleared by the health authorities of the port, a process known as obtaining “free pratique.” In the pandemic-affected countries the process of vetting the crew may take time, and this delay will fall on the shipowner rather than on the charterer.The effects of the pandemic may possibly be covered in the force majeure clauses in some contracts, but these are not uniform and will not be always be available. The disruptive effects of the pandemic will cause losses and the result in the most part will be to determine who will bear or share these losses.While these legal issues and disputes do not immediately arise, they will certainly surface once countries recover from the immediate effects of the pandemic.Philip Teoh is a practicing lawyer and partner, and he is the head of the Insurance, Shipping, International Trade and Arbitration Practice at Azmi & Associates Malaysia. He has been in legal practice in Singapore and Malaysia for over 30 years and is an international arbitrator with several international arbitration centers of AIAC, ICC, SCMA, LMAA, KCAB, AABD, Brunei, CAAI Taiwan, LCIA. ..

How has the logistics industry in Singapore has evolved over the years? What is being done to help Singapore maintain its position as one of the region’s leaders in the logistics sector?Logistics – The Early DaysAccording to the Singapore Logistics Association (formerly the Singapore Freight Forwarders Association), freight forwarding began to take shape in the 19th century along with the development of entrepôt trade, where Singapore was a “bustling centre for the exchange of products of Europe, India and China”, and this opened up opportunities for storage, cargo insurance and local forwarding.In the early 80s, Singapore-based freight forwarders began expanding to Indonesia, Malaysia, Thailand and the Philippines. After the recession in the mid-80s, companies began to expand their range of services. For example, those who concentrated on air freight started to show interest in sea freight, and vice-versa. The mid-80s also saw an increasing shift into warehousing and distribution. Later on, freight forwarders progressed, and went on to include services like warehousing, inventory management, configuration – all which are broadly referred to logistics.Fast forward a few decades, and Singapore has become one of the region's leaders in logistics, and is home to specialised logistics capabilities like healthcare and cold chain, chemical, aerospace, art and wine logistics. It also ranked as the top logistics hub in Asia in the 2012 and 2014 Logistics Performance index by the World Bank.Going GlobalSingapore is one of Asia's leading global business and financial centre, and its strategic location has also encouraged businesses in the region and around the world to explore business opportunities. According to the Singapore Economic Development Board (EDB), there are two industry trends which suggest that Asia will be the home of future global leaders of transport and logistics. The long-term shift in trade and investment from the West to East was cited as one of the reasons for growth, with further growth attributed to Asia's early advantage in low-cost competition and “frugal engineering”, which is “a product design approach that emphasises using the bare minimum of resources to create basic, no-frills products”.Excellent ConnectivityThe logistics sector in Singapore is also known for its technological capabilities. For example. TradeXchange®, an initiative led by Singapore Customs, the EDB and the Infocomm Development Authority of Singapore (IDA) facilitates the exchange of information within the trade and logistics facility. TradeXchange® also offers a single electronic window for integrated workflow, submissions and enquiries to the sea ports, airports, maritime authorities, Customs and Competent Authorities. This results in simplified and seamless trade transactions across the supply chain which will yield higher productivity, business agility and, ultimately, strengthen Singapore's competitiveness in the global trade and logistics sector.Industry Outlook for Singapore’s Logistics IndustryThe EDB and SPRING Singapore has drawn up a five-year roadmap to increase the long-term productivity of the logistics and transportation industry.This S$42 million Logistics and Transportation Productivity Roadmap will boost the long term productivity of the logistics and transportation industries and in turn, enhance productivity in the manufacturing and services sectors as well. The roadmap will help select segments of the logistics and transportation industry increase the value-added (VA) per worker by about 30 per cent to reach S$130,000 by 2015 and focuses on:Enhancing Supply Chain Management ExpertiseSupply chain management (SCM) is a strategic competitive advantage and key differentiator for global industry leaders. By enhancing their SCM capabilities, companies in Singapore can work towards higher productivity and lower operating costs. Under this initiative, the EDB will strengthen the SCM expertise by encouraging leading industry players to facilitate knowledge transfer of global best practices and know-how to Singapore.Developing SCM expertise specifically for Asia also serves as an additional differentiating factor as it will help businesses in Singapore navigate the trade landscape in the region and capture new growth with rising intra-Asia trade. For example, the EDB is working with logistics companies to train supply chain managers on building new practical knowledge on the operating landscape in Asia and harnessing opportunities for supply chain optimisation.Logistics companies in Singapore are also given opportunities to develop specialised capabilities and solutions for the manufacturing and services industries. Industries where logistics companies can develop specialised capabilities include biomedical sciences, perishables, oil and gas and aerospace. EDB and SPRING Singapore are continuously working with academic institutions to equip students with the relevant skillsets, and the EDB will also work with leading logistics players to develop these specialised capabilities.Enhancing Innovation and Improving Efficiency at Enterprise and Industry levelThe Centre of Innovation for Supply Chain Management (COI-SCM) was launched in 2011, and serves as the platform and one-stop centre to assist companies in appreciating efficiency gains through process innovation, use of technology and automation, process re-design and re-engineering. It also helps help logistics companies develop expertise through training courses. This enables the logistics industry in Singapore stay relevant to the new demands from their customers through continuous innovation and improving efficiency. SPRING also encourages enterprises in Singapore to innovate and consider new business models to drive efficiency and productivity and work towards enhancing business capabilities and gaining market share.The logistics and transportation is also one of the 16 priority sectors to benefit from the National Productivity and Continuing Education Council (NPCEC) initiative. Set up in April 2010, the NPCEC Council aims to achieve national productivity growth of two to three per cent per annum by 2030 by focusing on developing:National productivity initiatives at the sectorial, enterprise and worker levelsA comprehensive, first-class national Continuous Education and Training (CET) system; andA culture of productivity and continuous learning and upgrading in Singapore.With such initiatives and support from government associations for continuous development, combined with Singapore’s strategic location, world-class infrastructure and stellar global connectivity, the nation’s logistics industry is set to reach even greater heights...

The Singapore port is unanimously regarded to be the busiest port in the world. While generalising, it is referred to as the Singaporean port, it is in fact a collection of all porting and harbouring amenities offered by the nation to all international and national vessels in transit.According to the 2005 statistics tabulated, the port of Singapore had catered to vessels exceeding over one-point-five billion in gross tonnage, making it the world’s busiest port. Alongside, the port was also categorised as the world’s most engaged port when it came to transhipment activities.Transhipment activities are carried out on those cargo which need further work or modifications to be carried out before they can be transported to their intended final port of destination. In the international maritime arena, the Singaporean port undertakes many such vital transhipment activities, which has further enhanced its credibility amongst the other ports of the world.The statistical figure of vessels’ gross tonnage catered to by the Singaporean port grew by 0.11 billion tonnes from 1.04 tonnes in 2004 to 1.15 tonnes in 2005The port is now ranked second after the Shanghai port in terms of the cargo handled, handling over 400 million tonnes of cargoEven in the container aspect, the port of Singapore container domain is a market leader in many waysIn the year 2011, the port handled almost 30 million Twenty-foot Equivalent Units (TEUs) of containersIn terms of refrigerated cargo containers, the port handled over one million TEUs of refrigerated cargo containers in the year 2011Vessels arriving at the busiest port, get easy route connexion to 600 various ports and harbours across the worldThe port of Singapore is also well-known as a leading player in the international fuelling (bunkering) domainThe Singapore port has been presented with numerous awards and accolades by international marine societies and institutes. These acknowledgements act as a catalyst and also as a verifiable testimony about its achievements and activities. Two most noteworthy accolades presented to the busiest port of the world include the best port operator award conferred by Lloyd and the best container terminal award conferred by the Asian Freight and Supply Chain awards. Both these awards were won in the year 2011 and not for the first time.The port of Singapore attempts to revitalise the Asian maritime industry while competing against its Chinese, Korean and Japanese counter-parts. Through a resourceful campaign, the nation has re-defined the perception of Asian players in the once-Western dominated marine industrial and shipping sector...