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UTC Sets New Heavylift Record

UTC Sets New Heavylift Record

heaviest cargo ever mobilized in colombia - fully assembled 300t engines

utc overcomes mounting challenges for greenfield project in colombia

UTC's global heavy lift experts coordinated the transportation of the heaviest cargo ever mobilized on Colombian roads.

Over the last two years, a team of UTC Overseas professionals has been transporting the equipment needed to operate the new El Tesorito power plant in Cordoba Province, Colombia. Having worked on many greenfield projects before, these specialists had the knowledge, experience, and contacts to arrange ocean transport, loading and unloading, port manipulation, storage, on-carriage, and discharge onto the foundation.

gen-sets
Heaviest Piece:
tons
Additional
containers

Diligent planning and precise execution were vital in carrying out the operation

UTC’s skilled crew took care of every detail, locating the port nearest the job site so the motors could ship fully assembled, saving the customer considerable time and money. The equipment would travel to the Port of Tolú, a breakbulk and project cargo facility with the capacity and infrastructure to handle the equipment efficiently.

Starting out as breakbulk cargo on multi-purpose vessels, the equipment began the first leg of the journey. The first shipment contained 11 generators weighing 72 tons each, along with 8,845 cubic meters of additional equipment. The second vessel carried three transformers, 97 tons each, and 460 cubic meters of accessories. The third vessel transported 11 assembled engines which were 300 tons each and six meters high. The oversized and overweight cargo originated in Brazil, Bolivia, the U.S., Finland, Italy, and Mexico. In addition to the equipment, there were over 400 containers of related material.

3 MAR 2022 Tesorito _ NO LOGO sized
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Challenges Mounting: Adverse weather, pandemic supply chain disruptions & holiday chaos factor in

With any large-scale EPC contract, there are many challenges to overcome, but this one was compounded by the Christmas and New Year holidays, the pandemic, and supply chain disruptions. A host of new, unfamiliar situations arose, such as port closings, labor shortages, and strict distancing and sanitary procedures. Weather also contributed as much of this move occurred during the rainy season.

Despite advance planning and extensive road surveys, unannounced road construction began on the planned route to the job site, so alternate plans had to be devised quickly. Security measures were developed and implemented for the new route ensuring safe passage for the personnel and equipment in the caravans.

The available bridge that led to the construction site could not hold the weight of the assembled units. The bridge needed reinforcing to allow safe passage. Due to excessive rain, the roads were muddy, and the river created high currents. The elevated water levels made excavation difficult, so a dam was constructed to impede the water flow. This type of work requires environmental licenses stipulating that everything must be returned to its natural state when work is completed. Due to this, the bridge reinforcements were deconstructed after the final equipment delivery.

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Last-mile transport: Local regulations & outreach

Abiding by local laws and regulations is essential when completing any project. This one went one step beyond, though. UTC was traversing rural communities with limited resources. Electricity had to be taken off-line for six-hour stretches each time a caravan of trucks moved through one of the towns. It was a hard sell to win over the locals and garner support for the project. The impact on the region was significant, but the long-term improvements would more than make up for the temporary disruptions.

UTC professionals became diplomats, meeting and discussing concerns with the local communities. Ignacio Benedetti, UTC Regional Director West Coast Latam, recounts some of the meetings. “This was a socially sensitive project. Power was interrupted as lines were moved to allow the large pieces to travel through towns on national roads. Generator backup did not exist, meaning residents and businesses were without power and water for long stretches - this happened multiple times over the course of a few months. We met with community leaders, business owners, and utility companies to explain the benefits of the project and the government’s investment in improving energy services. We shared an explanatory video to educate all concerned parties on the benefits of building up power resources in the area. To further complicate the situation, election training took place during one span of the project, and alternative energy sources had to be supplied so the training could be completed in time for election day.”

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Breaking records to support energy transition to renewables

“The weight of the units was massive and set a new record for the heaviest pieces mobilized on Colombian roads. To receive the necessary transport permits, bridge and infrastructure impact studies were required, and a route study and pavement calculations had to be completed to ensure weight compliance guidelines outlined in the permits were not exceeded. A thorough traffic control plan was also required, as was coordination with utility companies responsible for lifting the power, internet, and phone lines in the towns along the route. Equipment moved using Prime Movers. Their large turning radius precluded them from entering the facility, so the oversized equipment was transferred to SPMT to reach the foundations,” says Jorge Duarte, UTC Project Manager.

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El Tesorito will provide critical grid balancing capacity to supplement intermittent energy derived from renewable sources such as solar and wind and help the grid cope with varying weather conditions. In case of a shortage, it will also be available to provide backup power. It is an important project to support the energy grid in the region. The plant complies with strict environmental regulations and creates operational and maintenance jobs for the local population in this rural region.

UTC’s teams of experts successfully handled the myriad of obstacles that presented themselves throughout the execution of the project overcoming the challenges and delivering on time.

UTC's expert team has specialized knowledge of your equipment, allowing us to provide the most innovative and cost-saving logistics solutions.

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UTC Sets New Heavylift Record

utc overcomes mounting challenges for greenfield project in colombia UTC’s global heavy lift experts coordinated the transportation of the heaviest cargo ever mobilized on Colombian roads. Over the last two years, a team of UTC Overseas professionals has been transporting the equipment needed to operate the new El Tesorito power plant in Cordoba Province, Colombia. Having worked on many greenfield projects before, these specialists had the knowledge, experience, and contacts to arrange ocean transport, loading and unloading, port manipulation, storage, on-carriage, and discharge onto the foundation. 11 gen-sets Heaviest Piece: 300 tons Additional 400 containers Diligent planning and precise execution…

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Labor negotiations, looming energy crunches, and more lockdowns? Current events are changing the landscape for tomorrow's supply chain.

Here's 5 things you need to know today.

    • USWC labor negotiations
    • Freeport LNG explosion will have major ripple effect on global energy supply
    • China’s COVID-Zero policy & ongoing lockdowns
    • Uyghur Forced Labor Prevention Act: US CBP will start enforcing June 21
    • German labor negotiations

Labor negotiation déjà vu: Are we in for a repeat of 2014-2015?

Contracts for over 22,000 port workers employed at 29 US West Coast ports will expire on July 1. Originally negotiated over nine tense months in 2014-2015, the negotiations resulted in work slowdowns and lockouts that sent a ripple effect through the supply chain. In late Nov 2021, the ILWU rejected an extension.

    • The ILWU and PMA have been negotiating since early May, with a brief 10-day break Both organizations have agreed to a media blackout. (The Loadstar)
    • In a joint statement on June 14, ILWU and PMA stated that they are both committed to reaching an agreement and keeping cargo moving without disruption during the negotiation process, as they expect talks to extend beyond the July 1 expiration date. (JOC)
    • Experts say that automation is the hot-button issue during these negotiations. The ILWU is opposed to automation, stating it will take jobs away. PMA advocates for automation to improve efficiency: in 2021, the ports of Long Beach and Los Angeles were ranked 369 and 370 out of 370. (World Bank Container Port Performance Index 2021)
    • Just before negotiations, PMA released a report on the benefits of automation, finding that automated terminals processed containers twice as quickly as conventional ones, while paid worker hours rose by almost one-third. (Supply Chain Brain)
    • Existing supply chain issues, like disruptions in rail service and shifting vessel schedules, along with the possibility of upcoming congestion, shortages, and slowdowns has led to more ships avoiding the USWC in favor of East and Gulf Coast ports. USWC ports handle over 40% of containerized trade with East Asia. (Supply Chain Brain)

As Summer Comes into Full Swing, Energy Crises Loom

    • After an explosion in an over-pressurized pipeline on June 8, Freeport LNG reported on June 14 that the facility is entirely offline, hoping to resume partial operations in 90 days. The plant expects to have completed all repairs and be fully operational by the end of 2022. Freeport LNG represents almost 20% of the US’ LNG processing capacity. (CNBC)
    • The plant had been operating close to full capacity, forgoing regularly scheduled maintenance to maximize output. The explosion impacted the pipe racks that transfer LNG to storage and dock facilities. No liquefaction trains, storage tanks, dock facilities, or LNG process areas were damaged. (NYT)
    • This will result in widespread energy crunches in Europe, where buyers have been seeking alternatives to Russian gas. In recent months, ~70% of Freeport’s exports have gone to the European Union and Britain. (Reuters)
    • The June 14 announcement that Freeport LNG would be offline until September was compounded by news of reduced LNG shipments to Germany via Russia’s Nord Stream pipeline due to planned maintenance. Europe previously relied on Russia for 40% of its gas supplies. (NYT)

China’s COVID-Zero policy continues to cause disruptions

Less than two weeks after lifting lockdowns, Beijing and Shanghai are imposing new restrictions and mass-testing measures, raising concerns that stricter lockdowns may once again be on the way.

    • Shanghai briefly placed the majority of the city on lockdown to conduct mass testing, causing residents to rush to stock up on basic supplies. (Bloomberg)
    • A survey of 130 US businesses with operations in Shanghai has revealed that many have resumed operations, but activity levels are far below normal (Bloomberg)
    • Truck flows in Shanghai had recovered by almost 80% since lockdowns were eased on June 1. However, many truckers are still cautious about traveling to certain regions, facing rigid requirements to produce a negative COVID test and traffic permit, (FreightWaves)
    • Experts anticipate USWC port congestion ahead and are already seeing measures taken to shift deliveries to East and Gulf Coast ports to avoid potential delays. Once Shanghai fully reopens, drayage rates in China will increase, resulting in a wave of cargo that could overwhelm the Post of Los Angeles and Long Beach. As logistics managers are moving more containers to the East and Gulf Coast, ports are adjusting for the anticipated increase with additional gate hours and pop-up container storage lots. (FreightWaves)

Uyghur Forced Labor Prevention Act: Imports from Xinjiang not welcome after June 21

Starting June 21, US Customs and Border Protection (CBP) will begin enforcing the UFLPA, banning all imports from Xinjiang Province, China from entering the US.

    • The UFLPA establishes a “rebuttable presumption” that all products imported from the region were produced using forced labor. (Material Handling & Logistics)
    • On June 13, CBP released Operational Guidance for Importers to prepare for UFLPA enforcement. The guidance specifies that all enforcement actions will be taken on a case-by-case basis; CBP will review each shipment to determine any ties to the Xinjiang Uyghur region or other use of forced labor. (JD Supra)
    • Prior to the June 21 enforcement deadline, CBP issued “known importer letters” to several importers who have previously imported merchandise subject to the impending presumption and ban to encourage them to take steps to address their supply chain before enforcement goes into effect. (Material Handling & Logistics)
    • Several Chinese manufacturers have responded to the crackdown by creating supply chains outside of Xinjiang to cater to the US market. However, this has been met with skepticism as it is well-known that Uyghurs are transported to various locations throughout China to work in factories as contracted labor and that other Chinese people outside of Xinjiang are also working under forced labor conditions. (Material Handling & Logistics, S&P Global)

German ports enter into contentious labor negotiations

Port employer Central Association of German Seaport Companies (ZDS) and ver.di, the union representing dock workers, are negotiating to hold off a strike that would disrupt already stressed operations.

    • Talks broke down over the weekend as the union was not satisfied with the offer ZDS brought to the bargaining table. In light of the rising cost of living in Germany, ver.di felt the offer was inadequate, while ZDS felt it was extensive. A new date for negotiations is expected to be announced in the next few days.
    • A warning strike was held for several hours on June 9. Given global supply chain disruptions, ZDS called the short strike “absolutely irresponsible.” Any further action by the union will impede the already strained supply chain in Northern Europe. Delayed ships are expected to arrive at German ports in the coming weeks, which will put further pressure on operations, and other European ports are heavily congested and unable to accept transshipped cargo.
    • The negotiations affect 12,000 workers at the ports of Hamburg, Bremerhaven, and Lower Saxony. (GCaptain)

With international and local expertise, diligent risk assessment, and multi-modal capability, our teams will work with you to keep your cargo moving. Contact UTC today to develop a transportation strategy that works best for you.

UTC's experts are dedicated to providing you with the most innovative and cost-saving logistics solutions.

Read More

Industry Update April 2022

UTC Overseas Industry Update April 2022: Global trade is shifting, and it's getting more difficult to transport cargo from Point A to Point B. Here's 5 things you need to know today.

Global trade is shifting, and it's getting more difficult to transport cargo from Point A to Point B.

Here's 5 things you need to know today.

    • Shifting port congestion & backlogs
    • Trucking in the US
    • KwaZulu-Natal Flooding
    • China's COVID lockdowns continue
    • Looking ahead: German Rhine water levels critically low

Shifting port congestion & backlogs

As COVID restrictions, labor shortages, and consumer spending dominate the headlines, port congestion is not  disappearing – it is just shifting. A sobering report from Windward, the maritime AI company, indicates that 20% of the world’s containers are currently stuck in port congestion (Maritime Executive).

Congestion has eased on the USWC, but has shifted to Gulf and East Coast ports.

    • The slowdown in China is providing temporary relief to US ports on both coasts, as well as in Europe, but will likely be followed by a tsunami of deferred cargo once the lockdowns are lifted. (FreightWaves)

Sanctions against importing Russian goods have strained the European supply chain.

    • European ports, railroads and trucking junctions are seeing increased congestion since mid-February. Isolating, storing, and inspecting containers carrying Russian goods, has resulted in a backlog of over 4,500 containers.
    • Of all containers passing through Rotterdam, about 10% are linked in some way to Russia. About 30% of Russian crude oil, 25% of LNG, and 20% of oil products and coal are imported via Rotterdam. (Fortune)
    • Russia’s invasion of Ukraine and the EU’s resulting sanctions have led to production halts and components shortages for many companies, particularly automotive manufacturers and their suppliers. (Bloomberg)

Capacity remains tight and unpredictable in India; lockdowns in China are hampering local manufacturing and global trade.

    • The economic crisis in Sri Lanka is causing a severe shortage of container trucks (due to fuel scarcity) at Colombo Port, which handles the bulk of cargo transshipped in and out of the region. Several carriers are skipping the port, or will only accept shipments “Freight Prepaid,” due to a shortage of USD and the devaluation of Sri Lankan Rupee (LKR). Alternate ports of Mumbai and Vallarpadam are seeing increased volume due to diverted ships. (JOC, Logistics Update Africa)
    • Lockdowns in China are impacting manufacturing, production, and global trade. Windward, a maritime AI firm, estimates that 25% of all container ships are waiting offshore at Chinese ports (Maritime Executive). Import dwell times for containers at Shanghai marine terminals has increased nearly 75%. Export storage time has fallen. (FreightWaves)
    • More than 90% of trucks supporting import/export deliveries are out of action because of the restrictions. Slow cargo pickup has resulted in long container dwell times, leaving less room to place arriving import boxes. Decreased terminal efficiency is causing container vessels to wait at anchor to berth while others skip the port altogether.
    • Manufacturing hubs in Vietnam and Cambodia are suffering a shortage of Chinese components for manufacturing industries. Pharmaceutical companies in India, which source 70% of their active ingredients from China, are facing limited supplies. (FreightWaves)

Flooding in southern Africa has led to a backlog at the Port of Durban, with several carriers attempting to redirect to alternate ports. Alternate ports of Cape Town, Port Elizabeth and Ngqura handle significantly lower volumes and will likely suffer congestion as more ships are being redirected. (FreightWaves)


Trucking in the US

Several factors have contributed to a high spot truck rate: clean energy initiatives, increased diesel prices, increased salaries to attract truck drivers, maintenance and repair, and new purchase orders. In addition to the above, many carriers signed contracts in the first quarter at high rates to guarantee capacity. However, many experts state that we are at a peak and will see a trucking capacity glut in the second half of 2022.

    • Market volatility and higher fuel prices make it unclear how far or for how long truckload spot rates might drop. Declines in rates have been met by increases in fuel costs and surcharges that could affect truck capacity moving forward. (JOC)
    • Operating expenses have increased and the price of diesel is rising (FreightWaves, CNBC, FreightWaves)
    • March saw soft truckload volumes, an oversupply of trucking capacity, and a low rejection rate. (FreightWaves)
    • Consumer spending and operating costs are key factors in how this will play out. Experts anticipate that people will spend more on experiences than material goods as restrictions lift. However, even if consumer spending on physical goods decreases, if operating and maintenance costs continue to rise, it will cut into the anticipated spot rate decrease.

KwaZulu-Natal Flooding

Torrential downpour in KZN province triggered massive flooding and mudslides that have disrupted services at South Africa’s largest port, Durban. Several areas reported as much as 13 inches of rain in less than 24 hours, resulting in a devastating loss of life and wiping out critical infrastructure.

  • Port of Durban has resumed operations, but the 36-hour closure of the port resulted in a backlog of more than 23 cargo ships waiting at anchorage outside the port, and a backlog of between 8,000-9,000 containers, which will take between 5-9 days to clear. In addition to wiping out critical infrastructure providing access to the Port, floodwaters brought a variety of natural, household and industrial debris into the harbor, which was cleared after 72 hours of dredging. (US News)
  • Floods caused extensive damage to Bayhead Road, which handles 13,000+ heavy vehicles per day and links the port operations to the rest of the country. The damage to roads leading to the port, railroads, and warehousing facilities, is estimated to total 10 billion rand ($675m). Damage to the rail system could take up to eight weeks to repair fully. (M&G South Africa)

China's COVID lockdowns continue

With many cities in China experiencing the most extensive lockdowns since the initial outbreak in early 2020, carriers are shifting strategies to keep on schedule. The ripple effect of the lockdowns is being felt throughout the world:

    • COVID lockdowns are spreading as surges of new cases are affecting more cities. Guangzhou, Kunshan and Ningbo have all initiated partial lockdowns, mass COVID testing and/or other low-level restrictions.
    • Truck rates have soared. Due to restrictions, more than 90% of trucks supporting import/export deliveries are out of service. Special permits and negative COVID tests are required to get in and out of cities or enter certain zones, resulting in huge traffic jams at ports. There are reports of truckers waiting up to 40 hours at certain highway entrances to pick up cargo.
    • Lack of labor and cargo has caused air carriers to announce widespread cancellations, along with some ocean carriers skipping port calls to avoid delays. Experts anticipate ocean carriers may temporarily idle vessels or cancel outbound Asia sailings.
    • Many carriers are unloading temperature-controlled and dangerous goods containers at other ports due to lack of warehousing capacity in Shanghai; others are not accepting new bookings.
    • Rerouting cargo has become challenging as scattered outbreaks have led to a virtual ban on truck drivers transporting cargo from low-risk areas to medium- or high-risk areas. No cargo will be accepted if the driver has been to or picked up cargo from medium- or high-risk areas within the last 14 days.

 


Looking ahead: German Rhine water levels critically low

Barge transportation on the Rhine River is critical to Europe’s supply chain, linking German and Swiss industry with Rotterdam. Without significant spring rainfall, water levels may drop dramatically in late summer, causing a repeat of the crisis of 2018.

    • At the end of March, the water gauge stood at just 95cm at Kaub, a major chokepoint for barge transportation connecting north and south Germany. Typically, the river carries twice as much water at this time of year. Waterway traffic is already beginning to slow down due to unusually low water levels for this time of year after a mild and dry winter. (Bloomberg)
    • Energy plants are reporting shortages due to shipping restrictions on the Rhine. Current levels mean that a typical 110m barge carrying diesel fuel or chemical products can only transport about one-third of its capacity to avoid getting grounded.
    • A low water surcharge is imposed when water levels drop under 150cm, increasing the cost of freight significantly. An “extreme low water” alert is issued if it drops under 80cm. Traffic must stop if the water drops below 40cm.
    • Over 100 trucks would be required to replace the transportation capacity of a barge. With diesel prices rising and potential shortages looming, this could have an even larger impact than in previous years.

 

With international and local expertise, diligent risk assessment, and multi-modal capability, our teams will work with you to keep your cargo moving. Contact UTC today to develop a transportation strategy that works best for you.

UTC's experts are dedicated to providing you with the most innovative and cost-saving logistics solutions.

Read More