France will impose 300% import duty on Indonesia’s CPO

Currently, the French Parliament is working on legislation which contained the plan implementation duties amounting to 300 per cent for CPO from Indonesia. The reason, CPO containing saturated fat is considered not good for health.

As the country's largest palm oil exporter in the world, Indonesia can not remain silent. Deputy of Indoensia Trade Minister, Bayu Krisnamurthi said it would immediately lobbied the French parliament to give an explanation. "Through open debate, I explained that if anything consumed in excess is not good, not just about the CPO," he said.

Every year France imported about 160 thousand tons of CPO. This amount is relatively small compared to the overall CPO imports of European imports each year to reach 5 to 6 million tons. Half of that amount came from Indonesia.

Although the numbers are small, Bayu assume that CPO duty plan as a form of negative campaigning of the main Indonesia's export products. For that, he then touched on business interests of each country.

As is known, in recent year Indonesia airlines  has buy many of Airbus planes from France. Not to mention, some of the leading French companies such as Danone, L''oreal, and Carrefour to expand massively over the country. For that, in return, Bayu expect France to receive products from Indonesia. "CPO is  Indonesia interest. I requested it be kept as well," he said.

Attacks on oil commodities not just this time facing Indonesia. In addition to health issues, environmental issues are also often waged to undermine Indonesia's main export commodity. Problem is, Bayu said that of the 23 million tons of CPO was produced in Indonesia, 7 tons of which have been certified eco-friendly.

Negative campaign was considered very detrimental. Moreover, in 2014 the European Union will implement the new labeling rules in which each product should specify the vegetable oil it contains, whether it be from oil or soy. Previously, exports of these commodities has been disturbed by the crisis in Europe.

If that happens, oil Indonesia will no longer dealing with import regulations in each country, but directly to the consumer ratings. "If palm oil continues to tampered image to health issues, the environment, and the others, consumers will naturally resist palm oil," he said. For that, Bayu plans to work together with Association of Indonesian Palm Oil to ward off the negative campaigns.

CSCL participates in UASC's new GEM service linking Mideast to India

CHINA Shipping Container Lines (CSCL) is teaming up with United Arab Shipping Company (UASC) on its new GEM service connecting Turkey, Port Said, Red Sea, Middle East Gulf, Pakistan and India.

The first GEM sailing is scheduled for November 22. The service will call at: Port Said, Mersin, Istanbul, Izmir, Port Said, Yanbu, Jeddah, Khor Fakkan, Sohar, Port Sultan Qaboos, Karachi, Hazira, Mundra, Khor Fakkan, Jebel Ali, Bahrain, Jubail, Khor Fakkan, Jeddah, Yanbu and back to Port Said.

For the first time, the port rotation includes the Indian port of Hazira in Gujarat state, which is located about 120 nautical miles north of Nhava Sheva and Mumbai. The first call at Hazira is slated for December 20. The ships will be handled at the new Adani Hazira Container Terminal (AHCT).

A report by Alphaliner said the GEM service will also include sections of UASC's UAE-Pakistan-India service (IMC1/IMC2) as well as the carrier's Middle East feeder service (AEC1), from where the UASC ships switch deployment to join the GEM service.

In addition to direct port calls, the GEM service will provide connections to other East Mediterranean and North African ports through relay services via Port Said and will serve a number of Black Sea ports through relay services from Istanbul.

The CSCL will provide one of the eight 3,800- to 4,250-TEU ships used to operate the service, namely the 4,250-TEU Xin Yang Shan. The other seven vessels will be provided by UASC.

MAERSK LINE in the black after four quarterly losses

Rebounding container rates helped Maersk Line post a third quarter operating profit of $547 million compared with a loss of $255 million and made parent A P Moller-Maersk raise the group's full-year outlook.

Group chief executive Nils Smedegaard Andersen cautioned rates could reverse for Maersk Line, which returned to profit after four successive periods of losses, reported Reuters.

"I think one should be careful expecting that this is now very stable," Andersen told reporters. "It does not mean there is no chance of a relapse for prices on some routes."

The container unit, a barometer of world trade as its fleet carries more than 15 percent of all seaborne containers, has struggled with profitability due to the global economic slowdown and an oversupply of vessels. Maersk Line successfully managed to implement rate hikes in the third quarter along with rivals, but spot rates on the crucial Asia to Europe route were easing again this week, worrying some analysts.

"The profits are not sustainable for Maersk Line," said Alm Brand analyst Jesper Christensen. "I believe the unit will hold up in the fourth quarter but that rates will fall to unprofitable levels at the beginning of next year," Christensen said.

The Maersk group said it still expected a modest positive result in 2012 for Maersk Line, based on higher average rates in the second half, but downgraded growth estimates for seaborne container demand to three percent from four percent.

It did not offer outlook for next year, but raised its 2012 group net profit forecast to US$3.7 billion from "slightly above" last year's $3.4 billion result. Group net profit jumped to $933 million in the third quarter from $371 million in the same period last year, lagging an average forecast of $1.20 billion by analysts in a Reuters poll.

Maersk Oil reported a 33 percent fall in operating profit to $1.16 billion, lagging forecasts.

Shipowners are struggling with an oversupply of vessels that could intensify next year. Raising rates and cutting costs are amongst ways the companies can cushion falling volumes as trade slows worldwide.

The group said last month it would step up investment in its oil, ports and drilling businesses to cut its exposure to the volatile container shipping industry.

The shipping downturn has forced banks to pull back from shipping finance amid a four year-long downturn that is likely to extend well into 2013. Maersk could decide to increase its planned bond issue program, Smedegaard said.

"Our bond programme is still of a limited size and what will decide how large it will be is how the banks' behaviour will change in the future," he said. "If the banks view credit for large companies increasingly in terms of bonds, we will definitely increase our bond programme," Smedegaard said. The group's four core businesses are Maersk Oil, APM Terminals, Maersk Drilling and Maersk Line.

CSAV back in black with US$37 million third quarter operating profit

CHILE's flag carrier CSAV restored its profitability by posting an operating profit of US$37.3 million in the third quarter after suffering from losses in previous eight quarters, reversing a huge operating loss of $354.9 million a year earlier.

But CSAV is still sailing in the red after counting the results of first nine months, though losses have been reduced 74.2 per cent year on year. As the carrier took a bold move to rationalise its services and capacity last year, revenue has dropped 30.5 per cent.

"We are satisfied with the work done. We have been able to carry out a deep change in our business model and today our efforts are being reflected in our results following a long period of losses," said CSAV chief executive Oscar Hasbun.

He said this quarterly result reflected the successful effect on the carrier's restructuring with "a sustainable long-term business model".

After suffering from huge losses, CSAV has enlarged the joint operations to the present level of 95 per cent of its network capacity from 30 per cent in the past. It has also increased in its own fleet, from eight per cent at the end of 2010 to 37 per cent in the second half of the year.

"The market and freight rates are still unstable, as well as the oil price, so the company is continuing to work to improve its operating efficiency through several initiatives as part of the work being done with the consultants McKinsey," he said.

DHL Global Forwarding launch LCL direct service Jakarta-Hamburg

DHL Global Forwarding, the air freight and sea freight company that belongs to Deutsche Post DHL, has announced the launch of Less than Container Load (LCL) between Jakarta (Indonesia) and Hamburg (Germany).

Delivery service, which was launched on Sept 13, at least has transit time for 25 days, or 10 days more efficient. Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific said the new service ensure faster service for delivery of goods to Germany.

"According to recent business report, Southeast Asia is one of the areas experiencing the strongest economic growth in the world. Direct LCL service from Jakarta to Hamburg will help Indonesia to expand exports, and provides the advantage of being cost-effective," said Leung.

Meanwhile, Welani Widjaja, Managing Director of DHL Global Forwarding Indonesia added that the current condition of Indonesia's exports have exceeded the 2008 crisis. As a result, many exporters are looking for better and faster service.

Currently, the products are exported to Europe, dominated by palm oil and agricultural products, fuel, textiles and furnishings dominate Indonesia's exports to Europe. "We are ready to serve the export sector," said Welani.

The new service from DHL is part of the company's efforts to strengthen delivery networks all over the world. DHL is now sending nearly 2 million cubic meters of LCL goods annually. All LCL services are supported best DHL Information Technology facilities, such as DHL Track & Trace and other facilities, allowing full monitoring of the supply chain process.

For employers who do not want to lose, DHL provides insurance services to customers as a value-added service. Shippers Interest Insurance (SII) to protect the loss or damage of all cargo transported by DHL and transportation costs.

NYK liner trade slides 250pc to post annual loss of US$571 million

JAPAN's second biggest container line, NYK, has posted an annual loss of JPY44.7 billion (US$571 million)in the liner trade business, down 250 per cent against last year's profit of JPY30.2 billion for the fiscal year 2011, ending on March 31, 2012.

NYK, the world's 13th largest container carrier, attributed the loss to high bunker prices and a decline of freight rates for its core trade lanes, saying overcapacity was to blame.

Overall group revenues declined 6.7 per cent to JPY 1.80 trillion. Revenue for the liner business was JPY418.7 billion, resulting in an operating loss of JPY43 billion.

The poor performance in liner trade business was the main cause of NYK's deficit for fiscal 2011. The company said in its annual report that the supply-demand balance had deteriorated with the completion of numerous large containerships, mainly on European routes, which resulted in plummeting rates.

Sluggish cargo movements were also experienced, which were worsened by the "Great East Japan Earthquake and flooding in Thailand."

The company said it had taken actions to tackle the problems. One of the main cost reduction measures was the practice of slow steaming to reduce bunker oil consumption, resulting in cost savings of JPY30 billion.

This saving, said NYK, combined with reductions in selling, general and administrative expenses and variables expenses in the liner trade business, contributed to a total cost reduction of JPY34.5 billion.

However, its "measures were unable to fully absorb a larger-than-expected downturn in market prices," said NYK.

For fiscal 2012 ending March 31, 2013, NYK chief financial officer Kenji Mizushima said: "We plan to achieve profitability through further cost reductions and contributions to business results from businesses with stable freight rates, which we are focusing on expanding under the medium-term management plan."

Cathay Pacific to stop import of SHARK FIN to Hong Kong

Cathay Pacific has bowed to pressure from environmental groups and banned shark fin from its cargo flights as well as on its subsidiary carrier Dragonair. The move by the airline - believed by environmentalists to fly up to 50 per cent of all shark fin imported by air to Hong Kong - was hailed as a major victory for opponents of the trade, reported the South China Morning Post.

Cathay imposed the ban Dragonair weeks after receiving a letter signed by 40 groups ranging from Greenpeace Hong Kong and the Hong Kong Dolphin Conservation Society to the US-based Humane Society Internationaland Ric O'Barry's Dolphin Project.

The green groups estimate that Cathay Pacific flew up to 650 tonnes of shark fin into Hong Kong last year. The airline has declined to put a figure on how much it carried, but is understood to have told campaigners that it only carries a fraction of that amount.

The airline said: "Cathay Pacific has decided to stop shipping unsustainably sourced sharks and shark-related products. "The carrier expects the transition to this new policy will take approximately three months as it notifies shippers and puts the appropriate procedures in place. However, effective immediately, Cathay Pacific will not enter into any new contracts in this regard." Cathay Pacific said it had been researching the issue for "a very long time".

"Due to the vulnerable nature of sharks, their rapidly declining population, and the impact of overfishing for their parts and products, our carriage of these is inconsistent with our commitment to sustainable development," it said.

The letter from environmentalists was sent in late July and followed by talks between the petitioners and the airline.

The letter said: "Hong Kong government data indicates that over 10,200 [tonnes] of shark fin were imported into Hong Kong in 2011, of which 13 per cent was by air cargo. With an estimated 20 to 50 per cent flown on Cathay Pacific Cargo, up to 650 tonnes of shark fin were potentially imported by Cathay Pacific alone last year."

Hong Kong-based photographer Alex Hofford,co-author of the letter, said: "[The airline's move] sends a strong signal to the trade and to Hong Kong in general. For a big blue-chip company like Cathay Pacific to do the right thing is brilliant."

Hofford said the move would restrict the availability of shark fin in Hong Kong and on the mainland. Hong Kong handles about half the world's shark fin trade. "That was the whole idea behind this - to put a stranglehold on the trade," he said.

Asked how much shark fin Cathay Pacific carries on its cargo planes a year, a spokeswoman said: "It would take some research to determine the exact number. More important, however, is that we used to ship it and now we're going to stop."

The shark fin the airline transported came primarily from Southeast Asia for the Hong Kong and mainland markets, where shark's fin soup is popular at wedding banquets, she said. The airline stopped serving shark's fin soup to first and business class passengers some years ago.

Ali Bullock, the airline's digital marketing manager, said: "I'm really proud of Cathay Pacific for taking a bold and important environmental step to protect sharks."

Activists estimate that fins from up to 73 million sharks are traded worldwide every year. More than half of the shark species are at risk of extinction now or in the near future, they say. Last year, The Peninsula hotel in Hong Kong took shark's fin soup off its menu, followed by the Shangri-La chain. But campaigners said the hoped-for domino effect on other five-star hotels had not materialised.

Garuda Indonesia will buy 100 planes worth IDR 37.5 trillion

In order to strengthen its position in commercial aviation, PT Garuda Indonesia (Persero) Tbk will gradually increase the number of aircraft. The company's ambition is to bring 100 units of aircraft until 2015.

President Director of Garuda Indonesia, Emirsyah Satar said it had set up an investment of IDR 37.5 trillion to streamline the plan. "Investing is not yet included for maintenance facility outside of Jakarta," he said in Jakarta.

Emirsyah said two-thirds of the value of the investment is the purchase of new aircraft from bank debt. "We have formed a partnership with Standard Chartered," he said. Not only that, the company also opens the option to issue bonds or shares (rights issue).

Currently, the company's stock coded GIAA has had 94 aircraft. If all aircraft orders arrived, Garuda Indonesia to fly as many as 194 aircraft. Fleet that will be imported is composed of several types. The details, as many as 50 Boeing 737-800, 10 Boeing 777-300ERs, 36 units Bombardier CRJ100, and the rest of Airbus.

Garuda Indonesia's just not going to buy the whole plane. Some of them rent or lease status. Unfortunately, Emirsyah not reveal its composition. Vice President Corporate Communications Garuda Indonesia, Pudjobroto explained that currently half of Garuda Indonesia's own status and half rent. He admitted, it is easier to buy than rent a plane. "Renting is also a strategy of keeping aircraft average age of the aircraft still young, which is five years," he said.

Later, the new aircraft will be used to connect the hub in Indonesia. Fleet will be brought not only to the needs of Garuda, but also for Citilink Indonesia that business in low-cost service.

Pudjobroto explained, adding the aircraft would be done gradually. In the second semester, the Garuda will add 11 aircraft. Thus, at the end of this year, Garuda will operate 105 aircraft. In October, Garuda will be the arrival of two units with a capacity of 96 passenger Bombardier CRJ100. "The aircraft will be put in Makassar hub for low-density routes," said Pudjobroto.

In addition to strengthening its fleet, the airline will also continue development of five hubs. After Jakarta and Denpasar, the next hub will be built is Makassar, Medan and Balikpapan.

Currently, Garuda has started putting planes in Makassar hub. While the hub Medan expected to be completed next year as it is awaiting the readiness Kualanamu Airport. While the Singapore hub will begin construction next year.

Later, after the fifth hub operations in 2014, Garuda flight frequency targets were now only 390 a day to 1,000 a day. With the increasing frequency of flights, Garuda also targets increasing the number of passengers. If last year flew 17.1 million people this year to 45.4 million. The number was a combination passenger and Citilink Garuda.

In 2012, Garuda eyeing a revenue of IDR 32.59 trillion. The amount is 20% higher than last year's realized income, IDR 27.16 trillion. Until the first half of this year, Garuda Indonesia has earned revenues of U.S. $ 1.51 billion, or around IDR 13.89 trillion. Revenue was up 17% compared to the same period in 2011. But, Garuda still bear a net loss of U.S. $ 2.02 million in the first half of this year.

Singapore's APL to quit Westbound Transpacific Stabilisation Agreement

SINGAPORE's APL, the container shipping arm of shipping group Neptune Orient Lines (NOL), is quitting the Westbound Transpacific Stabilisation Agreement (WTSA), the discussion forum covering the westbound trade from the US to Asia, with effect from September 1.

APL is the third carrier to leave the WTSA over the past decade, following in the footsteps of MOL's departure in June 2005 and previously Maersk Line, which was known at the time as Maersk Sealand and left the group in July 2002.

This reduces WTSA members to nine shipping lines: Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, NYK Line, OOCL, Cosco, Evergreen, Hanjin and Yang Ming.

According to Alphaliner estimates, the remaining WTSA carriers, as of August, control 55 per cent of the total westbound Asia-North America capacity.

It said the 15 member ocean liners of the WTSA's eastbound counterpart, the Transpacific Stabilisation Agreement (TSA), control an estimated 92 per cent of total capacity on the Asia-North America route.

TSA members include: APL, Maersk, China Shipping, CMA CGM, Mediterranean Shipping Company (MSC) and Zim.

The Westbound Transpacific Stabilisation Agreement  (WTSA) was established in 1990 to replace a more rigid rate conference system for the US-Asia market. It offers a discussion forum for its members to develop non-binding guidelines relating to freight rates, surcharges and other fees.

CMA CGM cuts APL link, renews Far East-Red Sea Rex2 with Hanjin, Yang Ming

MARSEILLE's CMA CGM, the world's third largest shipping line, has announced the re-launch of its old service, with new partners, Hanjin and Yang Ming, from the Far East to the Red Sea ports starting July 22.

The Rex 2 will replace the Rex 1 service, which has been operated under a vessel sharing agreement with Singapore's APL, which ended in June.

The Rex 2 service keeps CMA CGM active on this major trade lane and from July 22, it will now operate under a vessel sharing agreement with Hanjin and Yang Ming.

CMA CGM will deploy one vessel, the 3,900-TEU Ville d'Aquarius, which will rotate through Shanghai, Ningbo, Kaohsiung, Shenzhen-Skekou, Singapore, Jeddah, Sokhna, Aqaba and back to Shanghai.

"It was essential for CMA CGM to offer again Egypt and Jordan calls with a direct and improved service from Asia. This new Rex 2 service is the first step of CMA CGM redeployment in the zone and confirms the group's will to increase its presence in these countries for both import and export," said CMA CGM vice president Stephane Courquin.

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EVERGREEN optimistic about box SHIPPING MARKET prospects in third quarter

VICE Chairman of Evergreen Bronson Hsieh says he is positive about the container shipping market in the third quarter as carriers have increased rates, kept his books balanced and even made a little profit despite weak US and European economies, Xinhua reports.

Mr Hsieh said, according to Alphaliner's prediction, the world container shipping market will be growing at a rate of 6.5 per cent this year. In the later half of year, US cargo traffic growth will grow 3.5 - 5.5 per cent, while Europe's will go up from zero to 2.5 per cent. Besides, IMF also estimated the world's GDP growth rises to 3.5 per cent this year and 4.1 per cent next year.

Mr Hsieh stressed that the outlook for the rest of this year and next year is optimistic. Though capacity will grow from 7.9 per cent to 10.6 per cent next year, the world's economy might turn better and is able support the industry.

During the passed three years, there were 253 ships of over 8,000 TEU come into service. But Evergreen decided to use small and medium ships to enhance vessel utilization rate. Starting from July, Evergreen will deploy 30 new and greener L-type ships by 2015.

Mr Hsieh pointed out that for the shipping industry, making profit is not necessarily affected by the world's economy. After the world's financial crisis in 2008, Evergreen recorded a loss of US$20 billion in 2009 but made a profit of $15 billion later in 2010 because of tighter capacity control. This year's GDP growth is slower than in last year, but the carriers has succeeded in raising rates in March, April and May.

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Indonesia AirAsia intends to IPO in the first quarter of 2013

PT Indonesia AirAsia will offer it’s IPO in the first quarter of 2013. The move comes after AirAsia moved its regional operations center to Indonesia.

Chief Executive Officer of AirAsia said the plan follows the steps taken by AirAsia X Sdn Bhd which will go public around October-November 2012. AirAsia X is a AirAsia business unit that specializes in serving long-haul flights.

Tony admitted that no bank was appointed as the lead underwriter yet. "The decision depends on the board of directors," he said.

AirAsia has decided to focus on developing the market in Indonesia. One proof shifts Tony Fernandes of AirAsia Sdn Bhd became Indonesia AirAsia. Tony replaced by Aireen Omar who is regional head of corporate finance and treasury AirAsia.

AirAsia currently has a 49% stake in Indonesia AirAsia. It operates 17 Airbus A320 aircraft and serves six cities in Indonesia. The airline is also flying from Indonesia to the four cities of Southeast Asia and one city in Australia.

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DHL opens Jakarta warehouse to meet high tech growth expectations

DHL Supply Chain, a provider of contract logistics solutions, has opened a new US$2.3 million multi-user warehouse in Cililitan, East Jakarta, to meet anticipated growth from the technology sector and pursue an ongoing plan to improve its facilities in Indonesia.

This development follows last year's announcement by the government of plans to develop the country's hi-tech electronics industry.

The company's managing director for Indonesia Abdul Rahim Tahir said: "With anticipated investment coming into the consumer electronics and information technology sector, DHL Supply Chain Indonesia expects an increase in requirements from our existing and new customers from this industry. We want to be ready to take this on."

The new 17,000-square metre warehouse utilises operational processes from loading docks and dock levellers, to RFID technology for barcode scanning, to accelerate delivery time to customers. Operational processes have been optimised to improve efficiency by 20 per cent and reduce costs. The facility is expected to handle 75,000 spare part units per month.

Complementing the five existing multi-user warehouses in the Jabodetabek area, the new facility consolidates and stores shipments before re-distributing them to 300 locations in the area. The other warehouses are mostly used to service clients in the automotive, retail, consumer and industrial sectors. Together this network forms a total combined warehouse space of 60,000 square metres in the East Jakarta area.

Oscar de Bok, DHL chief executive officer for south and southeast Asia added: "Indonesia's strong economic performance has positively impacted the logistics industry here with reports estimating it to grow 4.2 per cent to IDR1.4 trillion (US$153 billion) this year. With this expansion plan in place, we are confident in our ability to take on this growth."

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CHINA will build 70 NEW airport until the year 2015

China will build 70 new airports in the next three years. China ambitious expansion comes amid a slowing local economy.

Head of Civil Aviation Administration of China (CAAC), Li Jiaxiang, added from 2012 to 2015, local airlines will add 300 fleet per year. It is also listed in the five-year economic plan of China.

"China plans to build 70 new airports in recent years, increasing the number of airports that are now reaching 100 pieces," said Li Jiaxiang in high-level meeting the International Air Transport Association (IATA) in Beijing.

Li Jiaxiang also targeting a number of airports in China could reach 230 pieces at the end of 2015, while China airlines will operate more than 4,700 aircraft.

China will continue to expand aggressively while Chairman Tony Tyler IATA airline warned profits could be reduced by half this year due to high oil prices and the crisis in Europe.

Based on projections of IATA, the airline industry profits in the Asia-Pacific will reach U.S. $ 2 billion at the end of 2012, this figure is even less than half profit ever achieved in 2011 ago.

China's economic growth slowed to just 8.1 in the first quarter of 2012. A fairly slow growth in the last three years. However, the economic growth of the Chinese government adviser, Ma Kai, said the China aviation industry has tremendous growth potential. "Since 2005, the airline industry has recorded an annual growth of about 17.5%," he said.

Li Jiaxiang added that until the end of 2011, China already operates a 2888 commercial aircraft. A total of 1.2 million people working in this industry.

MAERSK LINE to restructure, terminate 400 jobs

Danish oil and shipping group A P Moller-Maersk said it would slash about 400 jobs as part of a restructuring of its struggling container shipping division Maersk Line.

The group said in a statement that a key objective of the reorganization was faster decision-making and that about 250 of the job cuts would be at its Copenhagen headquarters, reported Reuters.

The shipping industry has been hit hard during the global economic downturn as weak demand and excess capacity knocked freight rates to loss-making levels.

Maersk said last month it expected 2012 results "slightly lower" than in 2011, a modest improvement on previous guidance, but below analysts' hopes.

Maersk Line reported a loss of US$599 million in the first quarter. In a stark illustration of the damage caused by excess tonnage in a poor rate environment, Maersk Line’s volume increased by 18 percent while the average freight rate declined by nine percent compared to the first quarter last year.

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GARUDA INDONESIA expects 10% rise in passenger numbers

PT Garuda Indonesia Airlines Limited (GIAA) targeting an increase in passenger numbers by 10% in the second quarter compared to first quarter 2012 of 4.6 million passengers. While the first quarter of 2011 compared with year-on-year (yoy), there will be an increase of 20%.

"For the next quarters, the relative has the same growth," said Elisa Lumbantoruan, Director of Marketing and Sales PT Garuda Indonesia.

According to Elisa, the increase was due the addition of the aircraft that carried out by PT Garuda Indonesia. The company will operate 194 aircraft in 2015. On the other hand, the company is also to increase the utilization of operational aircraft. "Now we have 92 aircraft," he said.

Flight to Jakarta-Taipei route, added Elisa, PT Garuda Indonesia passengers projected occupancy rate (load factor) of 70%. With daily flights (daily flight) or seven times a week. "The reason to reopen, we see the traffic from the airline China Airlines and EVA Air up to 110 flights per week from Taipei to Indonesia," she said.

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LION AIR passenger numbers in the first quarter rose 10%

Indonesia national airline PT Lion Mentari Airlines or Lion Air successful a growing number of passengers during the first quarter of this year. The number of airline passengers increased by 10% over the same quarter last year.

General Director of Lion Air, Edward Sirait explain the increase in passenger numbers due to the revitalization of the fleet is carried out by the company. In addition, Lion Air also made additional flight frequencies on domestic routes.

In the first quarter of this year, Lion Air recorded an increase of about 800,000 passengers, up 10% over the same quarter last year amounted to 7.2 million passengers.

"Of the eight million passengers, mostly from domestic flights is 98% or 7,840,000 passengers, while the rest coming from international flight around 160,000 passengers," said Edward. 

Edward said that most domestic routes is Jakarta-Medan route. This route has 20 times flights per day. The load factor for the Jakarta-Medan route stable at 82.5%. While on international routes, the airline is still concentrating on the route from Jakarta to Singapore, Jakarta to Jeddah and Jakarta to Kuala Lumpur.

Although there is the addition of 10% the number of passengers in the first quarter of 2012, but he was pessimistic until the end of this year could raise the overall airline passenger numbers up 10%. Edward argued, the month of July, after the September school holidays and after the Eid holidays are the low season.

Last year, Lion Air transport 24.97 million domestic passengers in 2011, or approximately 41.59% of total domestic passengers nationwide. Edward says, the flight routes which opened earlier this year was a direct route from Jakarta to Manado since last February 2012. While the end of this month Lion Air will open two direct routes namely Surabaya to Ambon and Surabaya to Palu without transit in Balikpapan.

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Maersk posts a quarterly loss of US$599 million despite 18pc volume rise

DENMARK's AP Moller-Maersk Group has posted its first quarter results, which its container shipping unit Maersk Line suffered US$599 million year-on-year loss despite a 18 per cent growth in volumes.

The carrier said the average freight rate fell nine per cent compared to the same period last year.

Overall, the group delivered a profit of $1.2 billion, drawn on revenues of $14.32 billion, down one per cent year on year. Compared to the same quarter of 2011, it experienced almost zero growth in the first quarter. Excluding divestment gains and one-off tax income from the settlement of an Algerian tax dispute, the group recorded zero profit in the first three months, against a profit of $1.1 billion in the same period of 2011.

Group CEO Nils Andersen said the company is "not satisfied" with its first quarter performance, adding "earnings in shipping were weak due to the continued loss-making rates in the container and tanker markets. However, our efforts to increase container rates are paying off and we will continue our initiatives to improve rates throughout the year.

"We will also maintain a high level of costs for oil exploration and development of discoveries for production. We are confident that these investments will enable us to stop the decline in our oil production and then return to growth towards our target of 400,000 barrels per day."

Looking ahead, Maersk expects the group's year-end 2012 earnings will be slightly lower than the $3.4 billion recorded in 2011. Cash flow used for capital expenditure is expected to remain the same as in 2011.

For container shipping, Maersk Line said it "expects a negative up to neutral result in 2012, based on the assumption that the rate restoration that has taken place since March 2012 will continue."

The Maersk Line projects the global demand for seaborne containers will increase by four to six per cent in 2012, with lower increases on the Asia-Europe trades, but higher increases on the north-south trades.

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MANDALA AIRLINES will focus on international routes

This year, Mandala Airlines will give priority to the opening of the international route rather than opening domestic routes. Currently, Mandala Airlines has been serving local route from Jakarta to Medan and international route Medan – Singapore. On Friday (4/5), Mandala open a new route from Jakarta to Kuala Lumpur.

Commissioner of Mandala Airlines, Diono Nurjadin, revealing the opening of new international routes will take priority rather than the opening of domestic routes. This decision is due to competition on international routes for airlines low cost carrier is not too tight as well as in domestic flights. "If domestic is already congested, especially our competitors already have a number of planes a lot, while we had three planes," said Diono.

Another reason why more focus on opening the international routes duet to ticket sales promotion of Mandala Airlines is easier because have a partner with Tiger Airways as one of the shareholders of Mandala Airlines. Diono said with this synergy it is easier to do promotions in overseas passengers since Tiger Airways has been known in Asia. "So we will also use Tiger Airways to link the promotion of Mandala Airlines," he added.

With this strategy, is optimistic his side can continue to increase the number of Mandala Airlines passengers on two international routes and one domestic route. "So with theses three routes, the passenger occupancy target is 80% to 84%," he said.

Regarding the new route from Jakarta to Kuala Lumpur is open from Friday, Mandala Airlines will serve with a frequency of 14 flights per week. Expansion about the opening of new routes, Diono explained, that Mandala Airlines will open up international routes provided that the distance of not less than four to five hours. For example, to Hong Kong or India. This year Mandala Airlines will bring 7 new Airbus A320 aircraft. While currently only three aircraft that have been operated.

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China Cosco's loss widens to $428m

China Cosco Holdings’ net loss deepened in the first quarter as the company's dry-bulk business slumped amid a slowdown in the global shipping industry, reported The Wall Street Journal.

The Beijing-based shipping company said its net loss totalled US$428.2 million for the three months ended March 31, according to Chinese accounting standards, compared with a net loss of $79.7 million a year earlier.

Revenue fell 4.6 percent to $2.49 billion from $2.61 billion. The results lend weight to a gloomy outlook for the year made in March by China Cosco chairman Wei Jiafu, who said oversupply and a funding squeeze would continue to dog the global shipping industry.

Wei said at the time that he expected lower rates and the financing squeeze to force weaker competitors to default on their payments or go into bankruptcy.

Pressure has been particularly high on China Cosco's dry-bulk unit, which carries commodities including coal, grain and iron ore. The unit said its first-quarter shipping volume fell 15 percent from a year earlier to 55.6 million metric tonnes.

China Cosco, which has 147 dry-bulk ships under charter and owns 229, last year stopped paying fees on some ships it leased before 2009 from Chinese and Greek ship owners, triggering the seizure of three ships. The company later said it had resumed its payments.

The company said it expects excess shipping capacity to weigh on the dry-bulk unit, forecasting dry-bulk capacity growth of 11 percent this year, higher than an expected four percent rise in demand. China Cosco said that as of March 31 it had orders of 20 dry-bulk cargo vessels totalling 1.9 million deadweight tonnes.

China Cosco's container unit showed a recovery in the first quarter, as shipping volumes rose 20 percent, pushing the unit's revenue up two percent to $1.28 billion. China Cosco, the listed flagship of state-owned China Ocean Shipping (Group), has businesses that include dry-bulk shipping, container shipping, port operations and container construction.

Indonesia bans US beef imports due to mad cow disease in dairy herd

INDONESIA has banned US beef imports because of mad cow disease in one American dairy cow and will not lift the ban until it is assured that the disease has been wiped out, said vice agriculture minister Rusman Heriawan.

"We will lift the ban as soon as the US can assure us its dairy cows are free of mad cow disease. It could be one month or one year. It depends on how long it takes to resolve this case," he told a press briefing.

US Trade Representative Ron Kirk told The Associated Press: "There is no reason to be concerned about the consumption of US beef. We would expect that Indonesia would quickly reopen its market. It [banning] must be done in the context of standards established by the World Health Organization."

The latest US case of bovine spongiform encephalopathy was discovered in a dairy cow scheduled to be slaughtered at a rending plant, where the animal remains are not used as food.

Indonesia is a small market for US beef. In 2011, it purchased beef worth US$879,000. In the first two months of 2012, sales of US beef to Indonesia totaled just $21,000.

Said US Meat Export Federation president Philip Seng: "US beef is safe. We are reaching out to contacts around the world to reassure them that this finding is an indication that the system to safeguard the wholesomeness and safety of US beef is working."

GARUDA INDONESIA will fly to Italy in 2014

President Director of Garuda Indonesia, Emirsyah Satar said Garuda Indonesia is reviewing the opening of flight routes to Italy. If there is no obstacle, Garuda Indonesia plans to fly to Italy on 2014. "Route to Italy the most rapidly will be opened by 2014. There is only one choice, whether Rome or Milan," said Emirsyah.

Emirsyah said, for time being Garuda Indonesia route that have been opened to the European region only Amsterdam, The Netherlands. State-owned airline is still looking at the economic conditions of Europe to add a route to other countries. Garuda Indonesia plans to open a flight route to the five countries, namely the Netherlands, Britain, Germany, Italy and France.

Another consideration is the Garuda Indonesia is still awaiting the arrival of 10 Boeing 777 300 ER. The plan, said Emirsyah, the aircraft began to come next year. "There have been 10 order of Boeing 777 aircraft. Will be empowered to Europe and the Middle East. Direct flight," he added.

Determination of objectives between Rome or Milan will be based on market demand, the city where the most targeted people of Indonesia. "And we see, the Italians whether from Rome or Milan a lot to Indonesia," he continued.

So, he said, opening the route Garuda Indonesia to the number of European countries will not be directly opened simultaneously. The opening of the routethat is closest to London, England. "Not all, gradually. Italy is not the closest. Second is the UK, London town for sure," he added.

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Indonesia to invest US$2.47 billion to boost port's to 18 million TEU

INDONESIA Port Corporation (IPC), the largest port operator in Indonesia, is planning to invest US$2.47 billion in the development of Kalibaru Port, an extension to the existing Tanjung Priok Port in North Jakarta, Indonesia, according to UK's Port Technology International.

Upon completion in 2023, Kalibaru Port, or New Priok, will more than triple the annual capacity of Tanjung Priok from five million TEU to 18 million TEU.

Indonesia Port Corporation confirmed earlier this month that it had received approval from Indonesia's Presidential Regulation to begin works on the ambitious project, the port operator said in a statement.

The first phase of the project will include the installation of $1.38 billion worth of container terminal infrastructure and related equipment, while $730 million will be made available to construct the port's new petroleum product terminal. In addition, a further $305 million will be used to build toll roads, a power station and industrial area, with the remaining $50 million earmarked for other services.

IPC also said that further funding in the development of New Priok could come from outside investors and in the form of loans from national and international lenders.

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AIR ASIA Indonesia fly-thru service, Bandung-China

Air Asia Indonesia held a fly-thru service, linking Bandung with major cities in China. Bandung - China interconnection service which was launched two weeks ago it easier for passengers to fly to China, because it uses only one ticket although have to transit via Kuala Lumpur (KL).

Air Asia Indonesia Communications Manager Audrey Progastama Petriny said Air Asia fly thru add service in order to connect the major cities in Indonesia to China every day.

"Air Asia fly-thru service connects Jakarta, Bandung, Medan, and Surabaya to several cities in China such as Guangzhou, Shenzhen, Macao, and Hong Kong," said Audrey.

So far, Bandung residents who want to travel to China to go through Kuala Lumpur or Singapore first. Flights to China to do with connecting flights to Kuala Lumpur where consumers no longer need to take care of the new airline tickets. "One ticket for the two destinations," she said.

Passengers fly thru service users from Bandung to make a reservation or purchase tickets with a booking code and one ticket to two destinations at once. "Passengers can save the cost of visa application, because passengers can travel without a transit visa," she said.

"We will also process the baggage to the final destination. This means that passengers do not have to make the process of moving luggage from destination to destination early next," she explained.

According to Audrey, since Air Asia opened the Bandung-Kuala Lumpur route, the airline passenger growth shows quite positive. Air Asia recorded an average load factor above 80%. "If from Bandung to China, load factor its just of 5%," she said. This service is Bandung predominantly of going to China, rather than vice versa. "If from other cities could reach 10%," said Audrey.

Air Asia Indonesia will continue to boost the promotion of these services so tourists visiting Bandung-China China and vice versa is growing. She hoped that in the future Air Asia can serve other direct routes which connecting Indonesia with a number of countries in the world. Air Asia currently serves 150 routes, with 76 destinations that connect 22 countries.

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