Schednet 14/8/07

THE Global Shippers Forum (GSF) has voiced "grave concerns" about the cargo scanning mandates in a new US security law ahead of the group's annual meeting in Singapore next month.

The "Implementing Recommendations of the 9/11 Commission Act of 2007" requires "scanning" of all air cargo carried aboard commercial aircraft within three years, and all maritime containers destined for the US at foreign ports after five years.

GSF says 100 per cent scanning will result in enormous costs to consumers without accomplishing what the requirements seek to achieve, and that its views are supported by the US Department of Homeland Security, all major cargo organisations, shippers, the ocean carriers, the European Commission, and the governments of Belgium, Canada, Denmark, Finland, France, Germany, Greece, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden and the United Kingdom.

Nicolette van der Jagt, Secretary General of the European Shippers' Council (ESC) said: "One can only imagine the queues when every container has to run through radiation scanners."

Said Robert Ballantyne, president of the Canadian Industrial Transportation Association: "This looks like a barrier to trade and must raise questions whether it breaches the rules of the World Trade Organization."

Said John Lu, chairman of the Asian Shippers' Council: "Asia will be the hardest hit. The enforcement of this ruling will slow down cargo and cause a gridlock. Shippers are likely to bear the brunt of increased costs as carriers exploit their position of strength over shippers in this region of the world."

Peter Gatti, executive vice president of the US National Industrial Transportation League said: "The scan-all container amendment contradicts many of the objectives of the 9/11 Commission. This legislation could have disastrous consequences for trade. No scanner we know about can do the job the law demands."

Said Ted Kawamura, managing director of the Japan Shippers' Council: "There is a growing number of security initiatives based on risk assessment, but shippers will now be left wondering whether there is any point if all freight is to be scanned."

The rash of orders, reflecting carriers' fears that they will run short of capacity within a few years, will boost the world box fleet to more than 16 million TEUs in 2011.

STX's nine ships will be chartered to a major ocean carrier at daily rates likely to range between $60,000 and $65,000. Soaring rates have prompted leading owners to join carriers in ordering massive container ships even though they have not lined up firm charters. Most recently, Hamburg-based Nordcapital signed a $1.1 billion contract with Korea's Hyundai Heavy Industries for eight 13,100 TEUs vessels -- the biggest containerships ordered speculatively.

Most leading ocean carriers are reportedly considering fresh orders for container ships, spurred by evidence of lengthening delivery schedules at fully booked Korean shipyards. "A few (Korean) yards are already claiming that they are well committed into the first half of 2011, having sold a number of containership series which run through from 2010," Clarkson said.