More Shipping line offering logistics services – Hapag Lloyd is now offering cargo insurance

Do I need cargo insurance for my shipment..?? Is a question asked by many customers around the world.. Whether they are exporters or importers or traders.. This is a question that has been going for long and is expected to go on longer..

As much as we discuss why I cargo insurance and insurers matter, in the recent past the question of who is the cargo insurer is coming to the fore as the line between the shipping line(s) and logistics services providers seems to be getting blurred..

Maybe this is one way shipping lines are trying to add more value to their business..?? Till the recent past, shipping lines were only concerned with and offering ocean shipping services with some extending to carrier haulage services including road and rail services..

Now more and more shipping lines seem to be moving to offer comprehensive logistics services including intermodal transportation covering truck, rail and barge, customs clearance, cargo insurance and more..

On one hand these end to end solutions by shipping line may be welcomed by customers as they get these services in once place, I dare say it may also be making traditional logistics service providers nervous..??

Hapag Lloyd has announced Quick Cargo Insurance, their first-class single cargo insurance cover for shipments.. Hapag Lloyd will be using leading global insurer Chubb for this project which is being piloted currently for cargo shipped from Germany, the Netherlands and France..

On their website, Hapag Lloyd is promising

• Direct access to high class cargo insurance
• Simplicity
• Competitive pricing
• Instantly insured with all required documents

The 5th largest container shipping line in the world details their insurance coverage as below :

• Insurance cover exists for all risks to which the goods are exposed during the insured journey
• Insurance cover exists to shipments under Hapag-Lloyd´s custody
• Declarations are made on a case by case single shipment basis online via Hapag-Lloyd´s online platform
• Storage during and related to the transit up to 60 days is also covered
• Cover and reimbursement of recovery and / or disposal costs
• Cover and reimbursement of removal and / or protection costs
• Contingency and DIC insurance included
• Certificate issued upon request
• Pre-voyage and return goods are covered under the same conditions under Hapag-Lloyd´s custody

Chubb recently announced that it will provide instant shipment insurance on the Networked Trade Platform (NTP) via its Value-Added Service (VAS) listing..

Chubb’s Quick Cargo Insurance for individual shipments through Hapag-Lloyd is said to be designed for and targeting SMEs (small and medium-sized enterprises), transporters and freight forwarders with cargo coverage up to a limit of EUR 500,000/- mail-order and online companies and brokers with a high volume of individual shipments via Hapag-Lloyd..

As per Chubb, special features include direct entries using the Hapag-Lloyd online platform with limited number of risk assessment questions.. The system is said to issue policy confirmation and invoices automatically..

The cover is said to include reimbursement for costs and expenses (whether successful or not) for General average contribution including surety, guarantee and, if applicable (Remember the Yantian Express) , advance payments, loss prevention, mitigation, and assessment costs, including an advance payment if applicable, costs for reloading, interim storage and additional costs for further transit as a result of an insured event..

Other lines who are already offering cargo insurance include Maersk with their Value Protect, CMA CGM, ANL (part of CMA CGM Group)..

So what do the logistics service providers of the world and customers feel about these actions by the shipping lines..??

More Shipping line offering logistics services – Hapag Lloyd is now offering cargo insurance

Do I need cargo insurance for my shipment..?? Is a question asked by many customers around the world.. Whether they are exporters or importers or traders.. This is a question that has been going for long and is expected to go on longer..

As much as we discuss why cargo insurance and insurers matter, in the recent past the question of who is the cargo insurer is coming to the fore as the line between the shipping line(s) and logistics services providers seems to be getting blurred..

Maybe this is one way shipping lines are trying to add more value to their business..?? Till the recent past, shipping lines were only concerned with and offering ocean shipping services with some extending to carrier haulage services including road and rail services..

Now more and more shipping lines seem to be moving to offer comprehensive logistics services including intermodal transportation covering truck, rail and barge, customs clearance, cargo insurance and more..

On one hand these end to end solutions by shipping line may be welcomed by customers as they get these services in once place, I dare say it may also be making traditional logistics service providers nervous..??

Hapag Lloyd has announced Quick Cargo Insurance, their first-class single cargo insurance cover for shipments.. Hapag Lloyd will be using leading global insurer Chubb for this project which is being piloted currently for cargo shipped from Germany, the Netherlands and France..

On their website, Hapag Lloyd is promising

• Direct access to high class cargo insurance
• Simplicity
• Competitive pricing
• Instantly insured with all required documents

The 5th largest container shipping line in the world details their insurance coverage as below :

• Insurance cover exists for all risks to which the goods are exposed during the insured journey
• Insurance cover exists to shipments under Hapag-Lloyd´s custody
• Declarations are made on a case by case single shipment basis online via Hapag-Lloyd´s online platform
• Storage during and related to the transit up to 60 days is also covered
• Cover and reimbursement of recovery and / or disposal costs
• Cover and reimbursement of removal and / or protection costs
• Contingency and DIC insurance included
• Certificate issued upon request
• Pre-voyage and return goods are covered under the same conditions under Hapag-Lloyd´s custody

Chubb recently announced that it will provide instant shipment insurance on the Networked Trade Platform (NTP) via its Value-Added Service (VAS) listing..

Chubb’s Quick Cargo Insurance for individual shipments through Hapag-Lloyd is said to be designed for and targeting SMEs (small and medium-sized enterprises), transporters and freight forwarders with cargo coverage up to a limit of EUR 500,000/- mail-order and online companies and brokers with a high volume of individual shipments via Hapag-Lloyd..

As per Chubb, special features include direct entries using the Hapag-Lloyd online platform with limited number of risk assessment questions.. The system is said to issue policy confirmation and invoices automatically..

The cover is said to include reimbursement for costs and expenses (whether successful or not) for General average contribution including surety, guarantee and, if applicable (Remember the Yantian Express) , advance payments, loss prevention, mitigation, and assessment costs, including an advance payment if applicable, costs for reloading, interim storage and additional costs for further transit as a result of an insured event..

Other lines who are already offering cargo insurance include Maersk with their Value Protect, CMA CGM, ANL (part of CMA CGM Group)..

So what do the logistics service providers of the world and customers feel about these actions by the shipping lines..??

Infrographic- How Long does Plastic take to Break Down?

Most plastic pollution will outlive us, potentially up to ten times over. Did you know that it can take a single bottle of soda up to one thousand years just to break down!? And breaking down doesn’t mean that it has been eradicated from the ocean, just that it is now in microscopic pieces contributing to what scientists refer to as a “plastic soup”.

This infographic takes a hard look at the length of time it takes different kinds of plastic to break down, and how long they could potentially impact our waters for.

Flashback in Maritime history – Opening of the Panama Canal – 15 August 1914

The Panama Canal opened to traffic on 15 August 1914 with passage of the SS Ancon. First conceived in the 1600s, actual construction work was first begun by a French company in 1880. That attempt was defeated primarily by malaria and yellow fever. Work began on the present-day Panama Canal in 1904, success due in large part to wide-scale eradication of the mosquito discovered to carry yellow fever. The first major change to the Canal in 101 years, the Canal Expansion Project to allow for transit by larger vessels, is nearing completion.

France began work on the canal in 1881, but had to stop because of engineering problems and high mortality due to disease. The United States took over the project in 1904, and took a decade to complete the canal, which was officially opened on August 15, 1914. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan. The shorter, faster, and safer route to the U.S. West Coast and to nations in and around the Pacific Ocean allowed those places to become more integrated with the world economy.

The Panama Canal opened to traffic on 15 August 1914 with the passage of the SS Ancon.

During construction, ownership of the territory that the Panama Canal now passes through was first Colombian, then French, and then American. The US continued to control the canal and surrounding Panama Canal Zone until the 1977 Torrijos–Carter Treaties provided for handover to Panama. After a period of joint American–Panamanian control, the canal was taken over by the Panamanian government in 1999, and is now managed and operated by the Panama Canal Authority, a Panamanian government agency.

Annual traffic has risen from about 1,000 ships in 1914, when the canal opened, to 14,702 vessels in 2008, the latter measuring a total of 309.6 million Panama Canal/Universal Measurement System (PC/UMS) tons. By 2008, more than 815,000 vessels had passed through the canal; the largest ships that can transit the canal today are called Panamax. It takes 6 to 8 hours to pass through the Panama Canal. The American Society of Civil Engineers has named the Panama Canal one of the seven wonders of the modern world. After the Panama Canal expansion, it can accommodate even larger vessels as shown below.

Additional Insurance & Cargo Liability

Do you know what the difference is between cargo insurance and cargo liability insurance? Unfortunately, not many people know the big difference in cargo insurance and contingent cargo insurance or liability.

Cargo liability is insurance for motor truck cargo insurance on freight or goods that are hauled by a for hire trucker. This applies to general freight. This insurance covers the liability of cargo that is damaged or lost due to fire, collision, or striking of a load. If you are looking to start your trucking business, cargo liability insurance is essential and mandatory by the D.O.T to operate. This provides you protection to start your operation regardless of the commodity or goods that you are transporting.

Now cargo insurance or freight insurance that Ramon Insurance provides is full replacement value insurance for the goods all risk from origin to destination. We offer all risk cargo insurance for your goods so that if any damages happen to it, your goods are protected. If you have multiple shipments of the same good, we offer an annual policy or multiple shipment policy.

We also offer additional cargo insurance which supplements your current policy, let’s say you already have existing cargo liability insurance for $100,000.00 and you need additional insurance for $400,000.00, we can provide you that additional insurance for a lower rate than your existing insurance.

Ramon Insurance has been in business for over 31 years. We provide free consultation by experts who have been insuring billions of dollars of freight every year. Feel free to contact us!

Why cargo insurance and insurers matter

Cargo insurance is a type of insurance that covers/compensates a buyer or seller of goods against cargo damage or loss of cargo.. Despite insurance having been around for centuries, there is still a feeling that any form of insurance is a “grudge purchase”.. By its nature, insurance is an intangible benefit, one that can only be tested under adverse circumstances and there is nothing more adverse than cargo damage.. From a Local (Street to Street, City to City, Town to Town) shipment; to Provincial shipment within the same province/state; to National shipment within the country; to Regional trade within regional trade blocs like EU, BRICS; to Global trade between countries there are several modes and types of trade/shipments around the world.. Although it may seem obvious, it is shocking to see how many customers still do not take the right Cargo Insurance to cover their cargo comprehensively.. I don’t think this lack of proper insurance cover is intentional, but may be due to ignorance or lack of knowledge on the part of the client as far as Cargo Insurance goes.. So when I read an article from Tom O’Malley of TJO Cargo, I felt I had to share it with my readers for a better understanding of Why cargo insurance and insurers matter..

Key benefits of GPS and IoT systems for freight industry

In many ways, the transport industry is the backbone of human society. Various forms of transportation have been used for travel and trade since the 1800’s, by water, rail, road and air.

Today, almost everything we use, eat or drink is transported by vehicle and delivered to our doorstep or a nearby shop, and public transportation is essential in our societies for transporting people between home, work and school.

To ensure a seamless operation when delivering goods or moving people, transport enterprises have to manage hundreds or even thousands of vehicles at once.

Precision, efficiency and productivity are essential.

Luckily, there are technological advances to help overcome many of the daily logistical challenges: developments in GPS and IoT have paved the way for sophisticated fleet management systems, which can be used to manage almost every aspect of a transport operations business.

With the implementation of fleet management systems, field managers gain access to countless prominent tools to streamline operations such as real-time tracking, geo-fence zones, route planning and event alerts.

These features can be used to increase efficiency, reduce operating costs, improve the overall safety of the workforce, and optimise vehicle performance. Fleet management systems have been revolutionary for the transport industry, to say the least – they offer a solution for almost every problem fleet companies may face.

Before the implementation of GPS and IoT systems, managing a business that transports people or goods had its fair share of problems: dangerous work conditions, air pollution caused by idling, high operational costs, to name a few.

The quality of service can determine the profitability of transport businesses, and today’s state-of-the-art management systems play a big role in providing a first-class service to customers. From large enterprises to individuals, the customer demands to be informed about the status and location of their delivery every step of the way until your customers receive the packages.

Effectively managing a fleet business requires vast amounts of information which can be obtained by IoT devices. Onboard IoT devices gather and store a surprising amount of information on a vehicle, and GPS technology allows these devices to send regular location and route updates to a cloud-based tracking server to be stored on the server for up to 6 months of route history.

This data can be processed using sophisticated fleet management software to ensure every aspect of the operation is up to speed, and all branches of the company are communicating with each other to function at optimum levels.

Freight bottlenecks caused by busy roads or unexpected road works are a major issue for the transportation industry, as they can cause serious losses in revenue if not dealt with promptly. Route management systems are the perfect answer to freight bottlenecks.

Field managers can analyse the telematics data and plan more efficient routes for future trips. With proper route planning, fleets can save significant amounts of money on fuel as well as maintenance expenses by reducing vehicle degradation.

Driver-related issues are far too common for fleet businesses. If left unchecked, these problems could have severe consequences or even ruin a company’s reputation.

Risky driving habits such as speeding, idling and harsh braking can endanger the public and significantly drive up operating costs.

Idling is a major cause of excessive fuel usage, and when driving, the amount of fuel used increases with the speed of the vehicle.

With onboard GPS trackers, a manager or supervisor can assess how fast vehicles are being driven and how often or long they remain idle, amongst other indicators of undesirable driving habits.

Drivers can be warned or rewarded based on their performance according to company policy, but either way, the company will be better off on their next trip.

Advanced tools like real-time location tracking and route planning are essential to creating solutions for transportation companies, but fleet management systems offer much more than that.

From open-door sensors and zone alerts to trip logs and location-based alerts, there are countless features that fleet businesses can use to assist decision making and reduce operational costs.

What’s more, as the requirements for their services vary greatly from industry to industry, fleet management systems can be customised to match the needs of every business operating within the transport industry.

For many companies, a small van or truck is sufficient to transport commodities between destinations. Others, like automobile manufacturers, use trains to transport thousands of vehicles at once – a week’s worth of production from a single factory.

With thousands of miles of roads in the UK and millions more abroad, transportation has become easier and faster for both passengers and freight carriers thanks to cutting-edge fleet management systems.

The industry has been growing consistently due to the importance and need for transportation systems. This constant growth and increased demand have created new business opportunities, leading entrepreneurs to invest heavily in ride-hailing businesses all over the world.

However, maintaining a high level of service quality is challenging, and generating revenue in the business sector as competitive as transportation is not easy. Fleet management systems supported by GPS and IoT technology provide the necessary tools for companies to take their business operations to the next level – and reap the benefits.

MRV:Updated EU Regulation

As already previously mentioned, on 1^st of July 2015 Regulation (EU) 2015/757 on the monitoring, reporting and verification of carbon dioxide (CO2) emissions from maritime transport, entered into force. The Regulation (EU) 2015/757 aims to gain a better understanding of fuel consumption and CO2 emissions from shipping activities within the European Union (EU), and it could be used to create any future greenhouse gas reduction initiatives. As a first step, the regulation is intended to measure CO2 emissions, which will then allow the EU to define reduction targets and finally provide with the means to achieve those targets, as appropriate.

In November 2016 the European Commission (EC) adopted the last two Delegated Regulations completing the legal framework of Regulation (EU) 2015/757. The Delegated and Implementing Regulations aim at helping companies to fulfil their monitoring and reporting obligations in a harmonised way, and set additional rules for verification and accreditation of MRV shipping verifiers.

Regulations:

Commission Delegated Regulation (EU) 2016/2071of 22 September 2016

Is amending Regulation (EU) 2015/757 Annexes I and II with regards to the methods for monitoring carbon dioxide emissions and the rules for monitoring other relevant information.

Commission Delegated Regulation (EU) 2016/2072of 22 September 2016

Includes requirements on the verification activities and accreditation of verifiers. It is important to note that as per Articles 6 and 16 of the delegated regulation, a site visit is required to be carried out by verifiers both for the assessment of monitoring plans and the verification of emissions report. The delegated regulation includes further requirements on documents to be submitted by the Companies, the materiality level, the verification process and other important information.

Commission Implementing Regulation (EU) 2016/1928of 04 November 2016

Includes requirements on determination of cargo carried for categories of ship others than passengers ro-ro and container ships. The Implementing regulation outlines the following concerning the determination of cargo carried:

• for oil tankers, as the mass of the cargo on board;
• for chemical tankers, as the mass of the cargo on board;
• for LNG carriers, as the volume of the cargo on discharge, or if the cargo is discharged at several occasions during a voyage, the sum of the cargo discharged during a voyage and the cargo discharged at all subsequent ports of call until new cargo is loaded;
• for gas carriers, as the mass of the cargo on board;
• for bulk carriers, as the mass of the cargo on board;
• for general cargo ships, as deadweight carried for laden voyages and as zero for ballast voyages.

Commission Implementing Delegated Regulation (EU) 2016/1927 of 04 November 2016

Includes templates for monitoring plans, emissions reports and documents of compliance. Companies must use the templates included in this implementing regulation when preparing their monitoring plan for each ship as well as later on when submitting emissions reports to verifiers. Companies may split the monitoring plan into a company-specific part and a ship-specific part, provided that all elements set out in Annex I of the Implementing Regulation 2016/1927 are covered. The information contained in the company-specific part, which may include tables B.3, B.6, D, E and F.1 shall be applicable to each of the ships for which the Company is to submit a monitoring plan pursuant to Article 6 of the Regulation (EU) 2015/757.

Amendment of Annexes XIII (Transport) and XX (Environment) to the EEA Agreement of 28 October 2016

A decision of the EEA Joint Committee No 215/2016 of 28^th of October 2016 amended Annexes XIII (Transport) and XX (Environment) to the EEA Agreement which provide Extension to EEA and in practical terms means extension of Regulation (EU) 2015/757 to ports under jurisdiction of EEA MS:

• from the last port of call outside the European Economic Area (EEA) to a port of call situated in Norway or Iceland (incoming voyages),
• voyages from a port of call in Norway or Iceland to their next port of call outside the EEA (outgoing voyages),
• voyages between two ports of call in Norway and/or in Iceland and,
• emissions within NO and IS ports,

are also to be monitored and reported from 1^st of January 2018.

Applicability:

Irrespective of a ship’s flag, the regulation applies to ships greater than 5,000 GT undertaking one or more commercial voyages into, out of or between EU ports. The regulation however, does not apply to warships, naval auxiliaries, fish-catching or fish-processing ships, wooden ships of a primitive build, ships not propelled by mechanical means and government ships used for noncommercial purposes.

Important deadlines:

Dromon Bureau of Shipping

DBS as an International Ship’s Classification Society and Inspection Body is anticipated to be among the first accredited verifiers and will be able to assess monitoring plans and verify CO2 emissions reports.

DBS can offer the following services:

• Assess the conformity of the monitoring plan with the requirements laid down in Article 6 of Regulation (EU) 2015/757 and its delegated regulations;
• Assess the conformity of the emission report with the requirements laid down in Articles 8 to 12, Annexes I and II of Regulation (EU) 2015/75 and its delegated regulations;

For further information about DBS please visit www.dromon.com or via email at mrv@dromon.com

Since all delegated regulations have been released by the EC, DBS is encouraging Companies to start preparing for the implementation of Regulation (EU) 2015/757. Companies can start considering the methodology to be followed to fulfil the forthcoming monitoring and reporting obligations of their fleet using existing and new procedures in order to have a robust system for collecting and reporting greenhouse gas emissions.

Paris MoU releases Annual Report on port state control for 2018 and White, Grey,black lists

The Paris MOU on Port State Control, has posted the 2018 Annual Report which also contains their White-grey-Black lists (for infographic check out the bottom of this article).

In 2018 there were 24 Refusal of Access Orders (ban) issued. This shows a decrease from 32 in 2017. Refusal of access (banning) has been used 77 times since 2016. The detention percentage has decreased to 3.15% (from 3.87%). Consequently, the number of detainable deficiencies has decreased as well to 3,171 (from 3,883 in 2017). The number of inspections carried out was 17,952; this is slightly higher than in 2017 (17,923).

Over the past three years 73 ships have been banned for multiple detentions and four ships were banned “failing to call at an indicated repair yard”. Ten ships of these ships were banned for a second time. Over a three year period the flags of Comoros, the United Republic of Tanzania and Togo have recorded the highest number of bannings.

Looking at the Paris MoU “White, Grey and Black List” the overall situation regarding the quality of shipping seems to be stabilising. Although some flag States have moved between lists, the total amount of 41 flags on the “White List” is almost similar to that in 2017 (40). The “Grey List” contains 18 flags (20 in 2017); the “Black List” 14 flags (13 in 2017).

Recognized Organizations (ROs) are authorised by flag States to carry out statutory surveys on their behalf. For this reason, it is important to monitor their performance, which is why a performance list for ROs is presented in the Annual Report as well. Out of 566 detentions recorded in 2018, 97 (17%) were considered RO related (14.3% in 2017).

The number of inspections is stabilising. The detention percentage in 2018 (3.15%) however shows a significant decrease compared to 2016 (3.85%) and 2017 (3.87%). The level of detainable deficiencies has decreased as well from 3,883 in 2017 to 3,171 this year.

Members with the largest number of inspections, namely Spain, the United Kingdom, Italy, the Russian Federation, the Netherlands, Germany and France, jointly accounted for 52% of the total number of inspections this year.

With 1,098 inspections and 145 detentions the ships flying a “Black-listed flag” had a detention rate of 13.2%, which is substantially less than the 16.9% in 2017. For ships flying a “Grey-listed flag” the detention rate was 6.4%, which is lower than the 7.4% in 2017. Ships flying a “White-listed flag” had a detention rate of 2.3% which is slightly less than in 2017 (2.5%) and 2016 (2.6%).

The five most frequently recorded deficiencies in 2018 were “ISM” (4.73%, 1,911), “fire doors/openings in fireresisting divisions” (2.62%, 1,057), “nautical publications” (2.01%, 811), “charts” (1.72%, 693) and “oil record book” (1.64%, 661). The first four are consistent with 2016.

Relatively the total number of the top five has slightly increased from 12.6% in 2017 to 12.7% this year.

For more details, click on below image to download full report:

Noah’s Train – Climate minded train for climate change awareness

It really warms the cockles of my heart when I see the shipping and freight industry taking positive steps to address the issue of climate change..

I was truly inspired when I saw the initiative by Rail Freight Forward led by Europe’s freight operating companies as part of its commitment to boosting climate protection..

Noah’s Train, the world’s longest mobile work of art, has been travelling through Europe since December 2018 stopping at various cities in Europe..

Europe’s freight operating companies are using this special train, which was inspired by Noah’s Ark, to promote the movement of more freight traffic via rail in the interests of the environment..

Sylvie Charles, CEO of TFMM Rail and Multimodal Freight Transport, said: “Today’s freight transport in Europe equals 275m tonnes of carbon emissions every year. We urgently need to do something about it. The solution exists, and it’s about making more use of rail freight. We need an increase in awareness from the public, which is why Noah’s Train is an invitation to having more freight transport via rail.”

This initiative organised by Rail Freight Forward involves partners including PKP Cargo, DB Cargo, SNCF, Lineas and the Rail Cargo Group, who came together on this project to promote and increase rail freight movement from 18% to 30% by 2030.

As per Rail Freight Forward, Noah’s Train, the world’s longest mobile artwork, is designed to draw attention to the coalition’s goal of shifting 30% of freight to rail by 2030 – “because rail freight is the only possibility to combine economic growth with climate goals“..

As per below chart from Maersk Line, rail transport is the 2nd most efficient mode of transport in terms of carbon emissions after maritime transport..

The Polish city of Katowice was the starting point for the project, to coincide with the World Climate Conference that took place there in December 2018..

When the train left Katowice on 14 December, the containers were coloured bright green.. The train’s final destination was Brussels, Belgium via Vienna in Austria, Berlin in Germany and Paris in France..

At each of these stops, the containers would be added with more art work..

Inspired by Noah’s Ark, once the train reached Austria, prominent Austrian street artists, spray painted two of its containers and decorated it with colourful images of wildlife and nature..

10 days later when the train arrived in Berlin after passing through Frankfurt and Halle, Berlin’s world-famous graffiti community gathered to paint two new containers with similar images before it left for Paris..

In Paris, street artists from the French capital were invited to decorate two wagons before the railcar left again for its journey through Europe heading to Brussels..

The train arrived in Brussels on the final leg of its journey where a few more art work was added on..

Noah’s train reached Rome on the 7th of May where further artwork was added..

After completing its European journey, the sustainable train is expected to be shipped to Chile where the next climate conference will be hosted later on in 2019..

You can follow the journey of Noah’s train here..

Freight traffic via rail is not new to Europe and holds quite a lot of promise in terms of environmental friendliness and should be further promoted..