Driving To Deliver Your Business


Essar Shipping eyes more revenue from cargo handling

MUMBAI: Essar Shipping aims to increase third-party cargo handling to 50% of its total revenue by 2020 from 30% at present, as the company engages with companies in India and the Gulf, trying to make up for loss of captive business after the parent group’s oil refining company was sold and the steel business got stuck in bankruptcy proceedings.

“We are working with steel companies, not just in India but also Qatar and Bahrain among other Middle Eastern markets. We are focusing a lot on the Gulf areas which are in close proximity to us,” CEO Ranjit Singh told ET in a recent interview. The company needs to look for new clients with a chunk of its captive business gone.

Essar Oil was sold to Russian oil giant Rosneft, fund UCP and Swiss commodities trader Trafigura for £12.9 billion last year. Essar Steel is under insolvency[3] proceedings before the National Company Law Tribunal. Essar Shipping[4] has also bid for the tender floated by staterun oil marketing companies Bharat Petroleum Corp[5] and Indian Oil Corp for carrying crude oil. Some clarity on the bids will emerge by end of April, said Singh, adding the company is looking to acquire a very large crude carrier (VLCC) and a Suezmax if it wins the deal.

Essar Shipping handled 13.06 million tonnes of cargo in FY17 and registered a 28% growth in total cargo tonnage in the third quarter of FY18. The company is set to increase capacity from 15-16 million tonnes to 20-21million tonnes by FY19 with increase in tonnage and higher operational efficiency. The company operates a fleet of 14 ships that include two VLCCs, one capesize ship, six mini-capesize ships, one panamax bulk carrier, two supramax bulk carriers and two 13,000 dead weight tonnage (DWT) general cargo ships.

Analysts said getting fresh third party business wouldn’t be so easy in these times of still weak economic activity and oversupply in shipping capacity. “Charter rates are still on a downward spiral and there are numerous players in the market. The problem of overcapacity persists and it would be difficult to get new business for a player,” said a senior analyst who didn’t want to be named.

Singh said that while the dry bulk has improved since its downward spiral starting 2008 — the benchmark Baltic Dry Index has increased four times from its February 2016 low — the crude segment has hit “rock-bottom”.



  1. ^ Shipping (economictimes.indiatimes.com)
  2. ^ bankruptcy (economictimes.indiatimes.com)
  3. ^ insolvency (economictimes.indiatimes.com)
  4. ^ Essar Shipping (economictimes.indiatimes.com)
  5. ^ Bharat Petroleum Corp (economictimes.indiatimes.com)

2017 was one of the most successful years ever for Lufthansa Cargo

(C) Typhoonski

By [1]

Lufthansa Cargo has erased 2016’s dire numbers from its memory as it announced one of its most successful years to date. Operating profits for the 12 months to December 2017 hit EUR242m – a stark contrast to the EUR50m loss it reported a year ago. Chief executive Peter Gerber said 2017 had developed into one of the “most successful” years in the history of Lufthansa Cargo.

“We have achieved impressive earnings and, in the volatile logistics business, our team demonstrated high professionalism and passionate commitment,” said Mr Gerber. “For the current year, we will therefore remain focused on pursuing our efficiency programme and investing in our future.” Sales, in revenue tonne km (RTKs), rose by 7.4%, far outstripping the 3.3% growth in capacity, with the carrier handling some 1.6m tonnes leading to EUR2.54bn in revenues, up 21.1% on 2016.

However, its RTKs were still some way below industry average, with European sales down 0.4% compared with average industry growth of 11.8%. Operating expenses crept up 6.7% to EUR2.4bn, with the price of fuel representing the biggest increase, up 25.9% to EUR326m. But growing costs were more than written off by the near 600% increase in ebit, while load factor also climbed 2.7% to 69.3%, amid heightened demand and yield increases of 14%.

Mr Gerber told The Loadstar that “clearly” the strong market for air freight played a hand in the carrier’s return to growth, but said there were other factors. “We also underwent a successful restructuring, which took place while the market was down,” said Mr Gerber. “And we had nearly completed this process when the air freight market began to pick up again.” The restructuring included reducing its employee count by some 800 and scrapping two of its MD-11 freighters.

The carrier now operates a fleet of 12 MD-11Fs alongside five B777 freighters, and has plans to alter its fleet composition in the near future. “We intend to bring in new cargo aircraft, but the question is ‘when?’,” Mr Gerber said. “For us it is good that we have these old MD-11 as it leaves us flexible – we can bring in new aircraft and drop the MD-11s if we need to reduce capacity.” When asked about overcapacity, Mr Gerber said he could not foresee a repeat of the start of the decade, which saw the market flooded with capacity causing rates to plummet.

Amid the optimism, chief financial officer Martin Schmitt told The Loadstar the change in the market was “unforeseen” by the industry. “Before the shift, what we had was very definitely a buyer’s market but now – especially after the November and December peaks – we have a seller’s market,” said Mr Schmitt. “It flipped the game in a fairly extreme and unforeseen way.” Mr Gerber highlighted e-commerce as an important avenue for growth, noting that express operations had increased “considerably”.

“It is clear that this sector is strong and growing fast, and we expect to see more e-commerce volumes going forward,” he said. “We are looking to develop a special product that will improve our participation within this sector, and I do believe we will have a result soon.” Neither Mr Gerber nor Mr Schmitt would offer much on the picture for the air freight market in the long term, but both were confident about the next quarter or so. Citing “certain base factors”, Mr Gerber said he was anticipating growth of 3-4% for the next mid-term cycle, while Mr Schmitt said 2018 has started well.

“I cannot say how long we will see growth in the market, but the good times did not stop after Christmas, with IATA positive for the next few months at least,” he added.

“For Lufthansa Cargo, though, the biggest and most important season runs from November to December and this I can’t predict – we will see.”


  1. ^ (theloadstar.co.uk)

Global Cargo Shipping Market in 2022: Nippon Express, Hapag-Lloyd AG, Ceva Logistics, Deutsche Bahn AG

Brooklyn, NY — (SBWIRE[1]) — 03/22/2018 — Qyresearchreports include new market research report Cargo Shipping to its huge collection of research reports. The global Cargo Shipping market dynamics is influenced and shaped by a variety of regional as well as global trends, an incisive analysis of which forms the core of this study. The analysis of the market begins with elaborating on the market definition and scope, industry chain overview, and the key elements of business regulatory landscape.

The research further offers insights into key adoption trends, emerging business models, and recent technological advances affecting the growth trajectory. The study on the global market then presents detailed assessment of the governmental regulations and recent paradigmatic changes in related industries expected to positively impact the course of the market. The analysis tracks key developments in the competitive landscape and highlights the introduction of new services and products.

Innovative launches expected to create promising avenues in the global Cargo Shipping market are also covered in the report. The study also takes a closer look at share and size of top players. For more info, get sample report for FREE here: https://www.qyresearchreports.com/sample/sample.php?rep_id=1000979&type=S[2]

Market participants and business executives striving to gain evidence-based insights into lucrative and lackluster trends will find the study helpful. Opinion leaders and policy makers as well as new entrants and emerging players in the global Cargo Shipping market wanting to keep a tab on disruptive business models can glean through the report. The study also tracks administrative nuances affecting the governmental spending in emerging economies aimed at create new opportunities in the market.

Prominent players exploring new streams in untapped markets can base their strategies on the research findings. The study on the global Cargo Shipping market employs tools such as SWOT analysis and Porter’s five forces analysis to ascertain the intensity of the competitive. Investments into research and development activities to sustain the spirit of innovation are also highlighted in the analysis.

Furthermore, perusing the report will enable market participants to gain an insight into disruptive offerings. This report studies the global Cargo Shipping market, analyzes and researches the Cargo Shipping development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global market, like
AP Moller-Maersk Group
Mediterranean Shipping Company SA
Panalpina World Transport (Holding) Ltd
DHL Global Forwarding
China COSCO Holdings Company Limited
Nippon Express Co Ltd
Hapag-Lloyd AG
Ceva Logistics
Deutsche Bahn AG

Market segment by Application, Cargo Shipping can be split into
Water Traffic
Air Transport
Land Transportation Read Complete Table of Content of the Report at: https://www.qyresearchreports.com/report/global-cargo-shipping-market-size-status-and-forecast-2022.htm/toc[3] Table of Contents

Global Cargo Shipping Market Size, Status and Forecast 2022
1 Industry Overview of Cargo Shipping
1.1 Cargo Shipping Market Overview
1.1.1 Cargo Shipping Product Scope
1.1.2 Market Status and Outlook
1.2 Global Cargo Shipping Market Size and Analysis by Regions
1.2.1 United States
1.2.2 EU
1.2.3 Japan
1.2.4 China
1.2.5 India
1.2.6 Southeast Asia

2 Global Cargo Shipping Competition Analysis by Players
2.1 Cargo Shipping Market Size (Value) by Players (2016 and 2017)
2.2 Competitive Status and Trend
2.2.1 Market Concentration Rate
2.2.2 Product/Service Differences
2.2.3 New Entrants
2.2.4 The Technology Trends in Future

3 Company (Top Players) Profiles
3.1.1 Company Profile
3.1.2 Main Business/Business Overview
3.1.3 Products, Services and Solutions
3.1.4 Cargo Shipping Revenue (Value) (2012-2017)
3.1.5 Recent Developments
3.2 AP Moller-Maersk Group
3.2.1 Company Profile
3.2.2 Main Business/Business Overview
3.2.3 Products, Services and Solutions
3.2.4 Cargo Shipping Revenue (Value) (2012-2017)

4 Global Cargo Shipping Market Size by Type and Application (2012-2017)
4.1 Global Cargo Shipping Market Size by Type (2012-2017)
4.2 Global Cargo Shipping Market Size by Application (2012-2017)
4.3 Potential Application of Cargo Shipping in Future
4.4 Top Consumer/End Users of Cargo Shipping
… About QYResearchReports
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Reports from QYResearchReports feature valuable recommendations on how to navigate in the extremely unpredictable yet highly attractive Chinese market.

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  3. ^ https://www.qyresearchreports.com/report/global-cargo-shipping-market-size-status-and-forecast-2022.htm/toc (www.qyresearchreports.com)
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