Niels Kim Balling, of Econships Ltd, is confident that container shipping is about to gain significant tonnage from the dry bulk sector due to various new operating factors.

Mr Balling said: “Dry Bulk spot rates have now reached a new high (in recent times) of about US$30 per ton for basic raw materials. This could set the stage for a significant containerisation of some of the `minor bulk’ markets as much of it moves in the so-called `empty legs’ of the container trades.

“Including inland transport and handling cost the container lines can now compete very effectively with bulk transport for say scrap and animal feeds from the US to China.

“The trend applies to other areas as well, like Europe and Latin America. Should these markets start to improve markedly (which I believe they will do, as China’s demand is unlikely to stall in the near term) what we will finally see is an improved container equipment balance – one of the most costly issues the industry has had to contend with for the past decade.

“What we might see in the next decade or so is therefore a slightly lower top-line growth but a fundamental improvement of the container operators’ profitability.”

Mr Balling sees the “China factor” as a significant mover in the containerisation-dry bulk scenario.

He said: “Obviously many parties are questioning whether the China effect is actually sustainable. The answer is a clear yes when one consider the two statistical facts that the China economy is already split 50/50 between trade and domestic demand, with the domestic demand growing slightly faster than trade.”

“We must take this opportunity to demonstrate leadership and responsibility to address the increased volume of cargo entering and leaving our port,” said Councilwoman Janice Hahn, who is co-chair of the committee.

“The solutions to improving the quality of life for residents in the harbour area and also increasing the efficiency of port operations is finally within reach.”

Points of discussion at the committee’s recent meeting included the necessity for entities in the cargo supply chain to participate in finding a systems approach solution; having consistent terminal operations and distribution networks as a goal to successfully implement extended gate hours; and quantifying costs of operating during non-peak hours.

“This meeting was a positive step for the industry. It was clearly understood that this working group needs to identify solutions to reducing truck traffic before regulations are legislated,” said Port of Los Angeles Harbor Commissioner James Acevedo.

The Working Group is comprised of approximately 60 participants representing various entities of the international cargo supply chain, including importers, exporters, shipping lines, terminal operators, trucking companies, distribution centres, labour, railroads, MTA, Caltrans, US Customs, local law enforcement and legislators.

The new high comes at the start of what is traditionally the busiest period of the year for carrying freight.

The airline carried 25,996 tonnes of cargo in October, an increase of 1.4 per cent over September’s record of 25,627 tonnes, and a 36.7 per cent rise over October last year.

“Cargo is continuing its upward trend, with a string of records set due to the high demand for shipments,” said chief executive officer Stanley Hui.

“We are expecting November to continue the record-breaking run, as it is usually a peak month ahead of Christmas and the New Year.”

Meanwhile, Dragonair’s passenger numbers stabilised after the difficulties earlier in the year.

The airline flew 334,989 passengers, up 9.1 per cent on September’s figure of 307,157 and down by 1.9 per cent compared to the number carried in the same month last year.

“The number of individual travellers remains strong, especially those flying on business,” said Mr Hui. “Leisure traffic should continue to pick up as we head to the year-end holidays and into the New Year.”

Mr Ohashi discussed ANA’s plans with Central Japan International Airport Ltd officials.

Chubu International Airport will be located south of Nagoya, close to the industrial and technological heart of Japan.

ANA intends to operate daily scheduled services to both Seoul and Shanghai from the opening of the new airport in February 2005, which coincides with the start of the 2005 World Exposition in Aichi, east of Nagoya.

The exact flight schedule and type of aircraft that will be used to serve these destinations have still to be announced.

ANA is also considering opening routes from Chubu to other parts of Asia, especially to China.

Since August, three stations have acquired the certification for the Phase 1 of the project and another 11 will be compliant by the beginning of 2004.

The three stations are Zurich, Frankfurt and Brussels.

Markus Vetsch, vice president Operations Swiss WorldCargo, said: “The application of a state-of-the-art quality concept and the standardisation of processes will lead to an overall improvement of our service, marking a boost in transparency and synergies at all levels.”

The Phase 1 implementation plan is currently underway in Amsterdam, Paris, Hong Kong, New York, Los Angeles, London, Milan, Tokyo, Chicago, Singapore and Montreal. “This is a challenging plan indeed” said Gianni Mauri, general manager Process & Claims, Swiss WorldCargo.

“We are confident that the high level of professionalism and commitment to quality of our staff will enable us to achieve this goal by the beginning of next year.”

An IATA Interest Group bringing together 25 major airlines and freight forwarders, Cargo 2000 is aimed at implementing a new quality management system for the worldwide air cargo industry.

Mr Mullin will step down as CEO on January 1, but will remain chairman until Delta’s annual shareholders’ meeting on April 23.

Delta has named two highly regarded former chief executive officers, who have been integrally involved with Delta, to succeed Mr Mullin.

Gerald Grinstein has been named Delta’s CEO effective from January 1.

He is a 16-year member of Delta’s board and has chaired the board’s executive sessions since 1999.

John Smith has been elected as the presiding director of Delta’s board and will assume the position of non-executive chairman of Delta effective at the company’s annual meeting in April.

He is a former chairman and chief executive officer of General Motors Corporation and has been a member of Delta’s board since 2000.

The company appointed Vietnam Japan Trading and Container Service Company (Vijacont), which holds shipping agency and logistics-related licences, as its agent in the southeast Asian country in February.

The Japanese company said MOL (Vietnam), or Molvina, will take over the business of Vijacont and that this will help it to tailor services to both local and regional needs. The company will initially employ 57 people.

Molvina will have branches in Hanoi, Haiphong, Danang, and Quy Nhon, which are to be linked to MOL’s Starnet liner service system.

The company added that as one of the few logistics companies in Vietnam, Molvina hopes to enhance customer service in the country and strengthen cost competitiveness.

The terminal operator said the past year had been productive, with several records, including berth usage rate, berth productivity and vessel stoppage time, being broken.

CSXOT is a joint venture between the Port of Tianjin Authority and US company CSX World Terminals New World Ltd.

The facility has an annual throughput capacity of 1.4 million TEU and houses four specialised container berths, which have the ability to accommodate sixth generation containerships. The terminal currently receives calls from 18 shipping lines.

The Port of Tianjian has been forecast to handle over three million TEU this year.