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Gemini relaunch likely to add to congestion pressure at Khor Fakkan

Gemini may be relaunching connections between the Far East and Middle East this weekend, to restore direct ocean links, but after replacing Jebel Ali calls, Khor Fakkan appears to be showing signs of buckling under the pressure. As reported by The Loadstar yesterday, the relaunched service, marketed as AGX by Hapag-Lloyd and FM1 by Maersk, is set to operate under a revised rotation that sees Khor Fakkan replace Jebel Ali, because of the US-Iran war, but warning signs of congestion have appeared at the Emirati gateway. A Kuehne+Nagel update that Khor Fakkan and Fujairah "taking on a lot of the volumes shifted to ports outside the Strait of Hormuz in recent months" had led to congestion across the UAE's corridors, with the two ports now the "main pressure points in the region". It added: "Through Fujairah and Khor Fakkan, transit times vary by destination, while final-mile delivery and corridor connectivity remain under the control of UAE government-affiliated logistics providers. "However, as congestion in Jeddah decreases, we expect cargo flows to redistribute towards alternative gateways, including Jeddah, Aqaba, and Salalah. Looking ahead, we expect Khor Fakkan and Fujairah to remain under significant pressure in the coming weeks." This was also recognised by Maersk, which said in its latest operational update: "Vessel congestion and limited berth availability at Khor Fakkan, together with high yard utilisation, road congestion and extended truck waiting times, are delaying cargo clearance." Meanwhile, Expeditors has somewhat downplayed the extent of the problem, noting that "UAE gateways remain largely unaffected and outside the Strait risk area", but nonetheless added that Khor Fakkan and Fujairah were "showing signs of congestion". With Gemini's relaunched service scheduled for 17 October, on its Qingdao-Ningbo-Tanjung Pelepas-Khor Fakkan-Singapore-Qingdao rotation, the congestion issues have raised questions as to how beneficial the additional capacity will prove for shippers. Maersk said that it would be relocating some boxes to an inland container depot at Sajja, which it hoped would help ease pressure on the port, while it is planning for the possible redirection of some shipments to Jebel Ali. Even so, cargo arriving at ports still needs to reach its final destination, and hauliers and logistics operators have been crying out for support to provide additional hinterland connectivity, with trucking the most obvious solution. However accessing that capacity has become a key hurdle, with forwarders telling The Loadstar that, since the outset of the war, this capacity was being "hoovered up" by "forwarders with the biggest pockets, rather than shipments with the most need".

Solar power a shining example of export progress across sub-Saharan Africa

Solar energy is becoming increasingly important for bolstering sub-Saharan Africa's trading potential, with supply chain executives telling The Loadstar that Kenya and Nigeria are two of the fastest-growing markets for the technology. By the end of the first quarter, Nigeria had climbed into the top 10 of solar panel suppliers to the US, with some 40% of the country's total exports of the technology, totalling $64bn, ending up in the US. That growth has been felt by forwarders and logistics partners. DHL Express's chief executive for Sub-Saharan Africa, Hennie Heymans, told The Loadstar the company was seeing "incredible growth" in solar-panel exports out of Nigeria - and nor is that country alone. "We actually see an incredible growth in solar panel exports towards the United States from Nigeria and Kenya," he said, pointing out that for Africa in general the "new energy" vertical was proving something of a winner, experiencing 20% growth year on year. Interestingly, local forwarders told The Loadstar solar panels were also proffering volumes in the reverse direction for Kenya, although there was debate around whether the volumes were part of a local redevelopment of energy infrastructure or the result of chaos in the supply chains. One forwarder told The Loadstar that, amid the situation in Hormuz and growing pockets of congestion at typical transhipment hubs, volumes were routing via Kenya in an effort to avoid being caught up in the chaos. Mr Heymans, however, believes the growth in solar typifies the present story across Africa, noting that DHL had experienced a recent uptick in enquiries about special economic zones (SEZs) in several African countries, particularly Kenya and South Africa. Without stating just how many SEZ-related enquiries his office had handled, Mr Heymans said: "In Kenya, we have seen interest focused specifically on Mombasa, as well as Nairobi, and we have seen new entrants in both locations." And he is not alone in noting this: businesses the world over are reassessing international supply chains amid geopolitical tension and changing trade policies, with growing indications that the continent is more than well suited as a base for production.

Mammoth Freighters inducts its first 777-200LR to STAECO

Mammoth Freighters has announced the induction of a Boeing 777-200LR aircraft at its MRO partner STAECO's facility in Qingdao, China. The aircraft, owned by Jetran, represents the first Mammoth 777 freighter conversion to be undertaken at STAECO and marks a significant milestone in the expansion of Mammoth's global modification network. Fort Worth, Texas-based Mammoth announced in July that it had selected STAECO as its latest conversion MRO provider. "The induction of our first 777-200LR at STAECO represents an exciting milestone for Mammoth Freighters and an important step in the continued expansion of our global conversion network," said Cameron France, Mammoth Freighters vice president of operations. "STAECO brings an exceptional level of technical expertise, a highly skilled workforce, and a proven track record in freighter modifications. "We are excited to officially launch conversion operations in China and look forward to working closely with STAECO and Jetran to deliver world-class Mammoth 777 freighters." The induction of the aircraft, registered N60VL (MSN 39254), further strengthens the company's presence in the rapidly growing Asian air cargo market. The addition of STAECO to Mammoth's modification network provides greater geographical flexibility for aircraft owners and operators while supporting the increasing demand for efficient, long-range, widebody freighter aircraft throughout Asia and beyond, said Mammoth. The move follows Mammoth's delivery of its first converted Boeing 777-200LRMF freighter to Texas-based lessor Jetran, which passed on the aircraft to DHL for UK operations. "We are extremely pleased to see N708DN enter conversion at STAECO, marking another important milestone in our longstanding relationship with Mammoth Freighters," said Jordan Jaffe chief executive Jetran. "As the first Mammoth 777 to undergo conversion at this facility, this aircraft represents an exciting new chapter in the program. We have tremendous confidence in both Mammoth and STAECO and look forward to seeing more Mammoth 777 freighters enter the global cargo market." "We are honored and excited to welcome the first Mammoth 777 aircraft to our facility," said chairman Huang Enfang of STAECO. "This induction marks the beginning of an important new partnership and represents a significant step forward in expanding our widebody freighter conversion capabilities. "Our team is eager to apply its extensive modification experience and technical expertise to the Mammoth 777 program, and we look forward to building a successful, long-term relationship with Mammoth Freighters and Jetran."