Moore Stephens: Shipping Needs to Improve Risk Exposure Management

Effective management of risk within the shipping industry has improved slightly over the past 12 months, a survey by shipping adviser Moore Stephens showed.

However, shipping “still needs to up its game” in terms of managing its exposure to risk, which is increasing and changing in nature, not least in terms of the threat posed by cyber security.

Respondents to the survey rated the extent to which enterprise and business risk management is contributing to the success of their organisation at an average 6.8 out of a possible score of 10, compared to 6.6 last time. Charterers returned the highest rating (8.8) in this regard, followed by owners (6.9) and ship managers (6.8). Brokers returned the lowest rating at 6.3. Geographically, Europe (7.0) was ahead of Asia (6.6), but it was the Middle East which returned the highest figure, at 7.8.

Overall, respondents rated the extent to which enterprise and business risk was being managed effectively by their organisations at 7.1 out of 10, up from the rating of 7 recorded last time and indeed in the inaugural survey in August 2015. Charterers (8.8) expressed the highest level of confidence in this regard, followed by owners (7.3) and managers (6.9). In the previous survey, charterers recorded the lowest rating (6.5) of the main respondent types.

Demand trends were deemed by the greatest number of respondents to pose the highest level of risk, closely followed by competition and the cost and availability of finance. Demand trends were thought to pose the highest level of risk for owners, charterers and brokers, while for managers it was competition that topped the list.

Geographically, demand trends were the number one concern in Europe, Asia and the Middle East, while respondents in Latin America and North America identified competition as posing the highest level of risk.

Moore Stephens informed that respondents to the survey felt that the level of risk posed by most of the factors which impacted their business would remain largely unchanged over the next 12 months, with the exception of ballast water management legislation, cyber security, geopolitics, operating costs and other changes to laws and regulations, which were all perceived to have the potential for increased risk.

“Embedding proper and effective risk management controls into daily operating procedures is a huge challenge for companies in the shipping sector, where high risk levels are an accepted and fundamental part of the industry,” Michael Simms, Partner, said.

“This is particularly the case, as is now, when the industry is ultra-competitive and grappling with an imbalance in tonnage supply and demand, and when wider global economic conditions remain extremely tough,” Simms added.

https://logisticyy.livejournal.com/674.html

Offshore, Gas Businesses Help SCF Stay Afloat

Russian shipping company PAO Sovcomflot (SCF Group) recorded a net income of USD 15.2 million in the first half of 2017, a 90.8 percent drop from USD 166 million posted in the same period a year earlier. 

As explained, a strong performance from the offshore and gas divisions provided a relief against the deteriorating conditions witnessed in the conventional tanker markets, which were most noticeable in the second quarter of 2017. This balance of revenue sources helped gross revenue for the six months ended June 30, 2017, increase by 4.4 percent to USD 710.2 million from USD 680.3 million seen in 1H 2016.

“The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows. This has impacted severely upon the profitability of those owners focused solely on conventional shipping,” Sergey Frank, President and CEO of PAO Sovcomflot, commented.

“During the first half of 2017, the benefit of the group’s growing commitment to its specialised offshore and fixed income gas transportation businesses clearly demonstrated its worth. Despite the turbulent conditions seen in conventional markets, SCF Group has continued to demonstrate resilience whilst remaining able to position itself to take advantage of the future upswing in these markets when it comes,” Frank added.

During the first half of the year, the group took delivery of the world’s first ice breaking LNG carrier, Christophe de Margerie. The vessel completed its first commercial voyage, transporting liquefied natural gas (LNG) through the Northern Sea Route (NSR) from Norway to South Korea.

Additionally, the group took delivery of two icebreaking platform supply vessels, Gennadiy Nevelskoy and Stepan Makarov, and placed the first ever orders for LNG-fuelled Aframax tankers, to provide a step reduction in shipping emissions.

On July 21, the group signed an agreement for the construction of a fourth in a series of Arctic shuttle tankers to service the Novy Port project, under a long-term time-charter with Gazprom Neft. The vessel is due for delivery in October 2019.

In March, the company raised a USD 174 million, 15-year credit facility from Sberbank to refinance two Arctic shuttle tankers, Mikhail Ulyanov and Kirill Lavrov, servicing the Prirazlomnoye project.

The group’s subsidiary, SCF Capital, issued USD 150 million of unsecured Senior Notes in April, which mature on June 16, 2023. These were consolidated and form a single series with the SCF’s existing Eurobonds. The issue was 3.8 times over-subscribed and attracted significant international as well as domestic demand. Priced at USD 102.8, the Senior Notes had a yield of 4.85 per cent, representing the lowest-ever achieved for a global shipping company rated below investment grade.

“In the first half of 2017, the group raised USD 341 million in debt capital, including a highly successful tap of our 2016 Eurobond issue. The latter was heavily oversubscribed, with one of the lowest yields seen for a global shipping company. It attracted significant international as well as domestic demand. The proceeds for the new capital raised were used to retire the remainder of our maturing USD 800 million debut Eurobonds, issued in 2010. Overall, the total debt capital raised by Sovcomflot during the period 2016 to 2017 is USD 1.6 billion,” Nikolay Kolesnikov, Executive Vice President, Chief Financial Officer, noted.

As of June 30, 2017, the group’s fleet comprised 149 vessels with a combined deadweight of approximately 13.1 million tons. At the end of the 1H, the group had six vessels under construction, scheduled for delivery from September 2017 to February 2019, comprising two multifunctional ice breaking (MIB) standby vessels and four ice-class, LNG-fueled Aframax crude oil tankers.

https://logisticyy.livejournal.com/370.html

Hapag-Lloyd: No New Vessels in Next Couple of Years

German container carrier Hapag-Lloyd doesn’t plan to make any investments in ordering of new vessels over the next couple of years, the company said during a conference call today.

“In terms of Capexes, we said that we don’t anticipate any material Capexes in new vessels in the upcoming couple of years. We will continue to invest in container boxes and our investment level will be around EUR 400 million every year,” the company said.

As disclosed, there have been no significant orders in the container shipping sector over the recent period, and Hapag-Lloyd believes that new orders are not necessary as there is sufficient capacity in the market to meet the volume growth.

As a result, it is not expected that a surge in orders would occur.

Regarding the IMO regulations, Hapag said that most of its vessels are in principle suited for various types of fuel and may require some additional investment. Tough, huge investments on a per vessel basis are not expected.

The company added that it would be watching very closely what would happen to the fuel prices after 2020 when the new regulations kick in. The costs are anticipated to go up, but the company said it should be able to pass them on to the customers.

For the first half of 2017, the German container carrier booked a net loss of EUR -46.1 million (USD 55.1 million,  slashed from last year’s equivalent of EUR 142.1 million.

The company said that the half-year result includes a number of one-off effects related to the United Arab Shipping Company (UASC) merger, resulting in a net impact on EBIT of approximately EUR -19 million.

Hapag-Lloyd’s results were announced as the carrier welcomes the fourth of its five Valparaiso Express class 10,500 TEU vessels, the Callao Express.

The ship, built by Hyundai Samho Heavy Industries, has been named in the port of Callao this week. The Callao Express has set sail in the direction of Puerto Anamos and Valparaiso and will return to Europe after sailing the South American west coast, the company said.

http://logisticlee.livejournal.com/13172.html

Drewry: Asia to Australasia Container Traffic Heading South

Asia to Australasia container traffic experienced its first quarterly slump in at least five years, falling by 11 percent in the second quarter, shipping consultancy Drewry said.

The slowdown affected both the North Asia and Southeast Asia export markets. After six months trade from North Asia to Australasia was down by 3.5% to 773,000 TEU, while from Southeast Asia the slide was even steeper with container shipments down by 7.5% to 345,000 TEU.

Combined, the total southbound trade experienced close to a 5% slump in the first half of 2017.

Although the deterioration in container traffic along this corridor started early this year, things have gotten much worse of late with woeful returns for May and June accelerating the trend line downwards towards zero.

“Unless there is a drastic reversal, at the current rate the southbound trade will register an annual decline for the first time in at least five years,” according to Drewry.

The pick-up in Asia to Australia spot rates in August offers hope of a wider recovery. Nonetheless, this year looks certain to end with lower volumes.

Despite the weakness in demand, carriers have resisted making sweeping changes in capacity. Very little has happened on the supply side since May, when Hamburg Süd, Maersk Line, MOL and MSC started a new NE Asia-Oceania service (YoYo/CAE/Panda).

Net capacity on that slightly more resilient leg has been kept remarkably steady since that service launch and forward schedules for September indicate that there will be around 8% more slots available than there were in the same month last year. In the weaker Southeast Asia corridor there has at least been some remedial action with net capacity scheduled to be down by around 10% y/y next month.

http://logisticlee.livejournal.com/12950.html

Robbers Steal Oil from Anchored Tanker in Nigeria

Robbers have boarded a tanker and stole some oil from the ship while it was anchored at Lagos General Purpose Anchorage, Nigeria.

The incident occurred in the early morning hours of August 19, according to a report by ICC International Maritime Bureau (IMB).

As informed, alert duty watch keepers onboard the bridge of the product tanker spotted a floating object near the starboard bow and notified the armed security guard who fired warning shots.

One robber was seen jumping overboard from the forecastle.

IMB added that the alarm was raised and PA announced made. All crew except watch keepers retreated to the citadel.

After the security guards checked the deck areas, the crew emerged from the citadel and carried out a thorough search of the vessel. They noticed a flexible hose pipe inserted into a Butterworth pocket of No. 1S COT.

One robber was noticed hiding in the hawse pipe, was apprehended and tied up by the security guard and later handed over to the local agents, IMB said.

http://logisticlee.livejournal.com/12699.html

First LNG Bunkering Carried Out in the UK

For the first time in the UK, a ship has been bunkered with liquefied natural gas (LNG). This is part of a project carried out between UK’s LNG provider Flogas and compatriot port operator Associated British Ports (ABP). 

The project, which mirrors similar successful schemes in other European countries, saw a 110-meter cement carrier named Ireland – operated by Norwegian shipping firm KGJ Cement AS – refueled with LNG at the Port of Immingham on August 16.

The joint venture between Flogas and ABP is said to be a step forward for maritime bunkering in the UK. It means ships from across the globe will now have direct access to LNG – a fuel that is becoming increasingly popular in shipping, due to its ability to help vessels comply with current and future climate legislation.

“There is great potential for LNG in the maritime industry as a more environmentally-friendly alternative to traditional oil-based bunker fuels, but until now this potential has remained untapped here in the UK,” Lee Gannon, Managing Director at Flogas, explained.

Although only a limited number of ships currently bunker with LNG, demand is expected to grow rapidly as environmental regulations increasingly prohibit the use of polluting heavy fuel oils. Both Flogas and ABP see potential to replace thousands of tons of heavy fuel oil each year with cleaner, cost-effective LNG.

“We are proud to be a key part of this flagship operation, which has really put the UK on the map as the latest European hub for more climate-friendly bunkering. Demand is already beginning to shift away from oil across the international fleet, and we very much see natural gas taking its place as the marine fuel of choice. We look forward to welcoming increasing numbers of ships to Immingham as a result of our new … offering in partnership with Flogas,” Mark Frith, Port Manager for ABP Immingham and Grimsby, added.

The new tanker-to-ship service provides the flexibility needed to service current demand, but as the LNG marine market grows, Flogas plans to invest in storage and bunkering facilities at ABP ports when required.

http://logisticlee.livejournal.com/12522.html

USCG Fines Bulker for Unapproved Ballast Water Discharge in Willamette River

The United States Coast Guard (USCG) issued a USD 5,000 fine to the owners of a freight vessel for unauthorized ballast water discharge into the Willamette River in Portland on August 16.

During a routine port state control ballast water examination on the 590-foot Handy bulk carrier Ansac Moon Bear, marine inspectors discovered that the ship had discharged untreated ballast water into the Willamette River on three separate occasions during port calls in 2017.

Under the port state control exam, log books were reviewed during administrative evaluations by the marine inspectors, which led to the ballast water discharge discovery.

As part of the enforcement process, prior to the ship’s departure, the owner was required to either pay the USD 5,000 Notice of Violation fine or provide a Letter of Undertaking in the amount of USD 38,175 as adequate surety that the owner will pay the fine assessed in the civil penalty process, up to the maximum penalty amount, according to the USCG.

Shortly after issuance of the notice of violation fine, the company operating the vessel paid the fine with minimal disruption to the vessels schedule.

VesselsValue’s data shows that the 32,200 dwt bulker is owned by Japan-based Ansei Carriers SA and operated by compatriot company Abo Shoten.

“Marine Safety Unit Portland effectively identified and enforced the US Ballast Water regulations that visiting vessels are required to meet,” Capt. Thomas Griffitts, commanding officer MSU Portland,said.

“These regulations are essential to protecting our marine environment as untreated ballast water may pose serious ecological, economic, and health problems due to the multitude of marine species carried in ships’ ballast water,” he added.

The ballast water implementation schedule is based on vessel construction dates and ballast water capacity. At this time, more and more existing vessels are entering compliance and implementation schedules that will eventually make all commercial vessels compliant to environmental preservation acts that the Coast Guard enforces.

In the meantime, vessels operating in US waters are subject to USCG standards and the implementation schedule.

http://logisticlee.livejournal.com/12201.html

Alnic MC, John S. McCain Arrive in Singapore for Inspection

The Liberian-flagged oil/chemical tanker Alnic MC has reached Singapore’s eastern anchorage for inspections following the collision with the US Navy’s guided-missile destroyer John S. McCain while underway east of the Straits of Malacca and Singapore.

The tanker, owned by Brave Maritime Corporation from Greece, suffered damage to its fore peak tank 7 meters above the waterline, based on initial information. However, the ship’s crew remained unhurt.

The US Navy ship arrived at Changi Naval Base earlier today and has reported significant damage to the hull resulted in flooding to nearby compartments, including crew berthing, machinery, and communications rooms. Damage control efforts by the crew halted further flooding, the US Navy said.

Search and rescue efforts on the scene for the missing crew members are continuing. In total, some 250 personnel from the various Singapore agencies were deployed on the scene for the SAR operations, according to the Maritime and Port Authority of Singapore (MPA).

As of 1800 hours, five sorties have been carried out, MPA said, adding that it has been issuing hourly navigational broadcasts to advise passing vessels of the incident and requested them to keep a lookout for any persons in the water.

“As at 2030 hours, SAR operations are still underway to locate the 10 crew who are unaccounted for. Efforts will continue through the night at sea with the Republic of Singapore Navy and PCG vessels deployed, even as the US investigates the damaged interior of USS John S. McCain,” the MPA told World Maritime News in an update.

MPA is investigating the incident.

http://logisticlee.livejournal.com/11861.html

Oil Spills in Johor Waters after Ship Collision

Authorities are working on containing an oil spill resulting from a collision between the Sinica Graeca bulk carrier and Chemroad Mega oil/chemical tanker in Johor waters that took place on Thursday, August 17.

There have been no casualties reported from the incident, however; the Marshall Islands-flagged bulker suffered considerable hull damage.

The two ships crashed off Tompok Utara near Pengerang, Kota Tinggi.

Local authorities have launched an investigation into the incident.

Oil booms have been deployed to the scene along with dispersant spraying systems, Malaysian Marine Department said.

The 30, 400 DWT handy chemical tanker, built in 2000, is owned by Iino Marine Service from Japan, and has a market value of USD 9.08 million.

The Ultramax bulk carrier Sinica Graeca, built in May 2015, is owned by Greek-based shipowner Angelakos.

The owners of the vessels have been asked to post a USD 1.16 million bond in response to the oil spill, Bernama news agency informed citing the country’s transport ministry.

Both vessels have been detained while the spill recovery activities enter their third day.

http://logisticlee.livejournal.com/11702.html

New US Shipping Firm to Launch First Services

Atlantic Coastal Shipping (ACS), a newly-formed shipping company based in Miami, Florida, plans to start trading soon with a domestic RoRo/container vessel.

As informed, the vessel is planned to be deployed on a weekly cabotage route along the US Atlantic East Coast corridor between the Port of Miami and Port Newark.

Additionally, the company intends to start a regular weekly Caribbean feeder service with a multi purpose twin deck geared container vessel. The service will cover three hubs in the Caribbean and South Atlantic –  Kingston Container Terminal in Jamaica, DP World Caucedo in the Dominican Republic and The Freeport Container Port in the Bahamas.

The company explained that the project to launch new services is consistent with the Marine Highway Program that considers the movement of cargo by sea along America’s East Coast reducing air pollution and traffic congestion on I-95.

The first sailings of the ACS’ new services are to start in mid/late November, Armando M. Bustillo, the company’s CEO, told World Maritime News.

The exact date of launching is yet to be announced.

http://logisticlee.livejournal.com/11518.html

Aker Arctic to Help Improve Safety in Arctic Ship Ops

Finland-based Aker Arctic has joined a new EU-funded project to address improved safety and efficiency in Arctic ship operations.

A consortium of 13 research organisations and industrial partners from six countries launched the joint development project SEDNA at the beginning of June 2017.

Funded by the EU’s Horizon 2020 programme, the project is set to develop an innovative and integrated risk-based approach to safe Arctic navigation, ship design and maritime operations, to enable European maritime interests to fully embrace the Arctic’s growing shipping opportunities, while safeguarding its natural environment.

The three-year project focuses on the main topics including the modern bridge systems with state of the art tools, improvement in voyage planning incorporating data transfer and big data utilisation, research on the anti-icing solutions, safety assessment of low flash point fuels as well as risk-based methodology in the design and operation for ice-going vessels.

“This international development project provides a good platform to further improve the areas in safety and efficiency of the designs for the arctic shipping and navigation,” Reko-Antti Suojanen, Managing Director of Aker Arctic Technology, said.

http://logisticlee.livejournal.com/11146.html

SeaIntel: Niche Carriers Offer Better Rewards, but with Higher Risks

Niche carriers have both outperformed and vastly underperformed the top 16 carriers, with a high degree of volatility in schedule reliability, according to SeaIntel Maritime Analysis.

“If on-time performance is a priority, niche carriers offer better rewards, but with higher risks.”

The top 16 carriers have both a lower degree of volatility than the niche carriers, and are grouped much closer together. This consistency in the top 16 carriers can, to a large degree, be explained by their high level of interconnectedness, through alliances, VSAs, and slot charters.

The niche carriers, however, are a completely different story. SeaIntel said that they in general have greater schedule reliability volatility, and “we can see the trend go upward as we move down the rankings, meaning that the smaller niche carrier are more volatile.”

The Transatlantic Westbound trade lane is a perfect example of this. The niche carriers may offer better reliability on the higher end of the spectrum, but then there is the risk of choosing the wrong niche carrier and ending up facing consistent delays. ICL has consistently scored better in on-time performance than the top 16 carriers, with an average reliability of 95.5% from the first quarter of 2012 to the second quarter of 2017. ARRC, on the other hand, has recorded an average schedule reliability of 78.1 percentage points below ICL in this period.

“This volatility makes choosing a niche carrier over a top 16 carrier potentially risky. There is the obvious reward of getting higher on-time performance if the right niche carrier is chosen, but there is also the obvious pitfall of extremely poor schedule reliability if the wrong niche carrier is chosen,” Alan Murphy, SeaIntel CEO, said.

http://logisticlee.livejournal.com/10849.html

NGOs Push for Financial Incentives for Clean Ship Recycling

NGOs are calling on the European Union not to put on hold the introduction of a financial incentive for sustainable ship recycling under the EU Ship Recycling Regulation.

Namely, the European Commission (EC) has released its report on the viability of such a financial incentive for sustainable ship recycling. Whilst it acknowledges the benefits of clean and safe ship recycling such an incentive would bring, the EC has decided to wait with its introduction.

NGOs urge the EU to take action now as it is well documented that shipowners will with ease be able to circumvent the EU Ship Recycling Regulation by simply swapping the flag of their vessel to that of a non-EU State, NGO Shipbreaking Platform said.

The report of the EC is based on the study which was conducted by Ecorys, DNV-GL and the University of Rotterdam/Erasmus, and published at the end of 2016. The proposed instrument in the study is in the form of a license which each ship, regardless of its flag, needs to acquire in order to enter EU ports. This license can be bought monthly, yearly, or every 5 years, depending on the trading requirements and will be ship-specific.

At the end of the ship’s life, the money spent on buying the licenses will have been put aside and can be paid back to the last owner of that ship once it is recycled at a facility which is approved according to the EU Ship Recycling Regulation. Such an incentive will offset the higher profits made when selling to substandard shipbreaking yards and ensure the proper recycling of EU-trading ships regardless of their flags.

In the report published on August 8, the EC sees the license system as a workable solution if it is demonstrated that there are many ships that will flag out to circumvent the EU Ship Recycling Regulation, thereby weakening its effectiveness. All EU-flagged vessels will have to be recycled in an EU-approved facility starting from the end of 2018 at the latest. Only once it is clear what the effects of the EU List are on the recycling choices of shipowners, the EC will consider whether to go ahead with introducing the Ship Recycling Licence. Therefore, if shipowners choose to recycle their vessels responsibly in a facility on the EU List and do not flag out in order to circumvent the abovementioned regulation, the EC believes that it will not be necessary to introduce a financial mechanism.

However, flagging out at end-of-life is a practice which is already widespread. Most shipowners sell their obsolete vessels to so-called cash buyers. These scrap-dealers become the new owners of the ships and both re-name and re-flag the vessels for their last voyage to the beaching yards in South Asia.

Particularly popular registries amongst the cash buyers are the Paris MoU grey- and black-listed flags of Comoros, Palau and St. Kitts and Nevis – flags that are known for their poor implementation of laws governing labor rights and environmental protection at sea. Maersk also already threatened that it would flag out its fleet from the Danish registry if the Alang beaching yards they have recently chosen to use are not approved by the EU.

Swapping the flag of a ship is easy and makes it very simple for cash buyers and shipowners to circumvent the law. The motivation for doing so is also simple: dirty and dangerous shipbreaking brings higher profits due to the lack of investments in infrastructure, illicit handling of hazardous wastes and extremely poor working conditions.

For these reasons, the NGO Shipbreaking Platform urges the EC to not wait for the effects of the EU List, but instead show that it intends to take all measures possible to change the current deplorable shipping practices and commit now to making a legislative proposal to introduce a financial incentive.

“The huge benefit of this licence scheme is that it will also apply to non-EU flagged ships, meaning that the scope of the EU Ship Recycling Regulation will be much wider and will truly be a driving force for change in the shipping industry,” Ingvild Jenssen, Director of the NGO Shipbreaking Platform, commented.

“Those shipowners that are already taking responsibility for their end-of-life fleet should be supportive of the Ship Recycling Licence as it will create a level playing field ensuring that also their competitors pay the price of clean and safe ship recycling,” Jenssen added.

As explained, legislation based on flag state jurisdiction alone is far too easy to circumvent. That is why more policies aimed at improving the social and environmental performance of shipping is being enforced via port state control. The Ship Recycling Licence is as such in line with international trade law.

Taking also into account the widespread acknowledgment that financial incentives are key in ensuring the success of environmental policies, it seems obvious that a return scheme for ships is needed to change the behavior of shipowners that currently earn profits at the detriment of workers’ health and lives and the environment, the NGO Shipbreaking Platform concluded.

http://logisticlee.livejournal.com/10630.html

HMM Slashes Operating Loss

South Korean container carrier Hyundai Merchant Marine (HMM) managed to narrow its operating loss to KRW 128.1 billion (USD 111.8 million) in the second quarter of 2017 from KRW 254.3 billion (USD 222 million) recorded in the same period a year earlier.

The company’s operating loss in container business stood at KRW 96.2 billion, improved by KRW 123.8 billion YoY from KRW 220 billion due to various cost-saving efforts.

HMM ended 2Q 2017 with a total revenue of KRW 1,241.9 billion, a 22.1 percent increase when compared to a revenue of KRW 1,016.8  billion seen in the same quarter last year.

Total revenue in USD increased by 26.4 percent due to the influence of foreign currency translation gain.

Container volume in 2Q rose by 45.5% YoY to 986,022 TEU from 677,540 YEU reported in the three-month period of 2016. Volumes in the US trades climbed by 34.5% and in Intra-Asia by 94.5%.

“2Q’s total revenue, operating loss, transported volume, and container utilization ratio have all improved YoY. However, SCFI rate – to US – that dropped 25% in 2Q QoQ hindered drastic improvement in profit,” HMM said.

“Increased cost occurred as to 2M+H’s re-allocation of vessels for the reorganization of services. However, this shuffle will contribute to profit in 3Q as the reorganization has been completed,” the company added.

As explained, container freight rate is improving as the peak season begins and this is likely to continue as to increasing transport volume in the US trades.

For the US trades, China and South East Asia market have been showing great improvement with the arrival of peak season, and freight rate in July has increased dramatically, HMM further said.

HMM expects over 100% of loading rate in Asia-US trades after July and is considering deploying extra vessels if necessary.

“3Q results will be dramatically improved with our regained trust from all customers and our continuous cost saving efforts. We will do our best to grow further as Korea’s national carrier and contribute to rebuilding Korea’s maritime business,” an official from HMM commented.

http://logisticlee.livejournal.com/10294.html

Hansa Heavy Lift Ships 13 Modules to Australia

German shipping company Hansa Heavy Lift has transported 13 modules measuring over 147,124 cbm from China to Australia, to help with the redevelopment of the Nyrstar Smelter in Port Pirie.

The cargo was loaded on four separate voyages at the Yanda Module Yard in Jiangsu, China, with the largest piece weighing 690 metric tonnes, and measuring 28 metres in length, 17 metres in width, and 26.7 metres in height.

“This was a particularly challenging project which required the use of three of our vessels on four separate trips operating at their full capacity, including HHL New York, HHL Lagos, and HHL Valparaiso,” Henry Woo, Head of AsiaPacific (APAC), Hansa Heavy Lift, said.

“Lifting and rigging were particularly challenging for this project due to the height of the modules combined with the offset centre of gravity, with up to five lifting beams required for a single lift,” Woo added.

The decks of each vessel were extended to the aft and in some cases even to the starboard side to accommodate up to five modules per trip. The over dimensional cargo required the installation of additional bow radars and the extra crew to double up bridge watches.

Modules had to be placed onto the self-propelled modular transporter with minimum clearance in between each vessel’s hull and the fixed structures on the wharf to overcome the limited space on the jetty in Port Pirie.

“We are proud to have completed the project with a smooth execution at every stage, resulting in a safe and on-time delivery of all modules,” Jens Grever, Head of Cargo Management, Asia, Hansa Heavy Lift, said.

The Port Pirie Redevelopment Project will convert the smelting facility operated by Nyrstar to a multi metals processing and recovery facility.

http://logisticlee.livejournal.com/10184.html

OSG Earns Less amid Weakening Spot Markets

NYSE-listed Overseas Shipholding Group (OSG) has delivered lower earnings in the second quarter of 2017 mainly due to weakening spot markets.

The company’s net income was at USD 3.2 million for the quarter ended June 30, 2017, compared to USD 29.8 million for the quarter ended June 30, 2016.

Shipping revenues were USD 96.2 million for the current quarter, a decrease of 18.7% from USD 118.4 million seen in the prior year quarter. The decrease was also driven by lower charter rates.

Time charter equivalent (TCE) revenues for the second quarter 2017 were USD 91.1 million, down 20.6% compared to the same period in 2016.

“Increasing exposure to weakening spot markets during the just completed quarter weighed on top-line performance,” Sam Norton, OSG’s President and CEO, stated.

“However, cost discipline helped to mitigate the effects of these developments, and, together with earnings from our shuttle tanker and lightering operations, served to produce healthy cash flows. Progress continues strengthening our balance sheet and, with over USD 275 million of available liquidity, OSG remains favorably positioned to respond to opportunities in our markets,” Norton added.

For the first half of 2017, OSG reported a net income of USD 8.6 million, down from USD 80.6 million reported in the first six months of 2016.

Shipping revenues for the period were at USD 204.3 million, a decrease of USD 29.1 million compared to USD 233.4 million seen in the first half of 2016. TCE revenues for the first half of 2017 were USD 193.4 million, dropping by USD 33.6 million from USD 226.9 million reported in the first half of 2016.

http://logisticlee.livejournal.com/9821.html

Report: Zeaborn Buys Heavy Lift Quintet from Rickmers Holding

Bremen-based shipping company Zeaborn Group has decided to buy five heavy lift vessels from Rickmers Holding, according to reports by several German media.

The ships in question are Rickmers Singapore, Rickmers Jakarta, Rickmers New Orleans, Rickmers Seoul, all of them built in 2003, and Rickmers Dalian, constructed in 2004. They will be delivered to Zeaborn in late September.

The price tag of the alleged deal has not been revealed.

However, each of the abovementioned ships currently has market values between USD 6 and USD 7 million, VesselsValue’s data shows.

The vessels will join the 2002-built Rickmers Hamburg, which Zeaborn acquired earlier this year as part of a deal to take over business operations of compatriot Rickmers-Linie. This included the entire operating business of Rickmers’ subsidiaries, MCC Marine Consulting & Contracting and NPC Projects.

In June, Rickmers Holding was forced to file for insolvency after HSH Nordbank AG rejected further negotiations of the restructuring.

World Maritime News contacted Rickmers Holding and Zeaborn for more details on the sale. Rickmers Holding declined to comment, while Zeaborn is yet to reply.

http://logisticlee.livejournal.com/9653.html

NSRI Evacuates Crewman after Fall aboard Bulker

A 25-year-old crewman has been evacuated after he fell on board the cargo ship New Taizhou which was anchored some nine nautical miles off St Helena Bay, South Africa. 

The incident occurred on August 3, according to a report issued by the National Sea Rescue Institute (NSRI).

The crew member, a Chinese national, had suffered back pain and lacerations in the fall.

Morne Dettmer, NSRI Mykonos Deputy Station Commander, said that NSRI Mykonos duty crew were activated in the morning hours of August 4 by the Transnet National Ports Authority (TNPA) following a request for medical assistance from the 175,885 dwt bulk carrier.

“We were informed that the back pain had been relieved following medical assistance by the ships medical crew but arrangements had been made for the crewman to be seen to by a doctor on shore,” Dettmer explained.

The sea rescue craft was towed to St Helena Bay and launched. Upon its arrival, the injured crewman was transferred onto the sea rescue craft and brought to shore.

Later that day, the injured seamen was transported back to the ship following a medical treatment.

As of August 7, the 2010-built cargo ship, operated by ZOSCO, is still anchored in the area, New Taizhou’s AIS data shows.

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G E Shipping to Acquire LR2 Tanker

India-based Great Eastern Shipping (G E Shipping) is continuing with the fleet expansion as it has signed a contract to buy a secondhand LR2 product carrier.

G E Shipping has not disclosed the seller of the 105,000 dwt vessel.

As informed, the 2009-built tanker is expected to join the company’s fleet in Q2/Q3 FY2018.

In June, the company took delivery of Jag Pavitra, a secondhand medium range (MR) product tanker bought in April this year.

Currently, G E Shipping’s fleet stands at 46 vessels, comprising 30 tankers and 16 dry bulk carriers with an average age of 9.76 years aggregating 3.80 mn dwt.

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Ardmore Gets USD 12.3 Mn Boost

Bermuda-based tanker owner and operator Ardmore Shipping Corporation completed in 2Q 2017 a refinancing of two 47,000 dwt Eco-Mod product tankers under a Japanese sale and leaseback arrangement, releasing USD 12.3 million in cash. 

The transaction including the two 2008-built vessels, Ardmore Sealeader and Ardmore Sealifter, is said to be “a new and attractive source of financing for the company”.

This was announced in Ardmore’s financial report which shows that the company suffered a net loss of USD 1.9 million during the three months ended June 30, 2017, as compared to a net income of USD 55 million in the same period a year earlier.

The company reported EBITDA of USD 12.9 million in 2Q 2017, against USD 17.3 million seen in the same quarter last year. 

“As the oil market continues to work its way through elevated inventory levels, we are satisfied with our performance in the second quarter and encouraged that the highly compelling MR industry fundamentals remain firmly intact. Our fleet is performing well under soft market conditions and we continue to effectively manage our costs and execute on our strategy,” Anthony Gurnee, Ardmore’s Chief Executive Officer, commented.

During the quarter, Ardmore delivered a “satisfactory chartering performance” with spot and pool MR tankers earnings an average of USD 13,765 per day and Eco-Design chemical tankers an average of USD 10,736 per day.

“MR charter rates improved from the prior quarter, driven by increased activity in the Atlantic basin and product flows to Latin America. Meanwhile, despite refined product inventories declining in April and May, levels remain above historical averages and continue to curtail trading activity and tonne mile demand in the short term. Nonetheless, the underlying fundamentals for MR product tankers are very positive,” Gurnee added.

“Taken together, tonne mile demand growth is set to continue in the range of 4-5% annually. Meanwhile, supply growth for MR product tankers has declined significantly, with the MR orderbook at historical lows, scrapping continuing, and the pace of deliveries declining further over the remainder of 2017 and into 2018. As a result, we expect net fleet growth to be in the range of 1-2%, well below demand growth and creating a clear tension that should result in a sustained increase in charter rates,” Gurnee concluded.

Currently, Ardmore has 27 vessels in operation, comprising 21 Eco MR tankers ranging from 45,000 to 49,999 dwt and six Eco-Design IMO 2 product/chemical tankers ranging from 25,000 to 37,800 dwt.

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Teekay Tankers, TIL See The Light in Merger amid Q2 Losses

The announced merger between Teekay Tankers and Tanker Investments Limited (TIL) comes at a crucial point of the shipping cycle, the two companies stressed while announcing net losses for the second quarter of 2017.

Seasonal weakness and increasing tanker deliveries drove down tanker rates resulting in further headwinds to an already weak tanker market.

Tanker Investments reported a net loss of USD 5.8 million for the second quarter of 2017, against USD 12.6 million in 2016. The company’s half year results saw a plunge to USD 2.6 million net loss from a USD 31 million profit in the first half of 2016.

Teekay Tankers also swung to a loss in the second quarter posting GAAP net loss of USD 37.5 million, and adjusted net loss of USD 7.1 million in the second quarter of 2017. When compared to last year’s figures, the fall is considerable as Teekay Tankers had reported USD 31.6 million adjusted profit for the quarter.

For the first half of the year, Teekay posted USD 33 million in losses against last year’s USD 63 million in income.

Teekay Tankers has declared a cash dividend of USD 0.03 per share for the quarter ended June 30, 2017.

“The proposed merger with Tanker Investments Ltd. is strategically very important for Teekay Tankers,” said Kevin Mackay, Teekay Tankers’ President, and Chief Executive Officer.

“The 18-vessel Tanker Investments Ltd. fleet will provide Teekay Tankers with greater scale to continue servicing its customers, while also allowing us to renew our fleet on an opportunistic basis at the right point of the cycle. We believe this merger is in the best interests of Teekay Tankers’ shareholders as it is immediately accretive to the company’s earnings per share, reduces our average fleet age by one year, and reduces our cash break-even rate. Importantly, the merger is expected to increase Teekay Tankers’ liquidity and reduce our financial leverage.”

As explained by TIL’s CEO William Hung, with over 35 percent of Teekay’s fleet booked on fixed-rate charters and a strong balance sheet, along with USD 200 million of pro-forma liquidity, the combined company will be well positioned during the period of weaker tanker rates.

Both companies expect the tanker market to remain weak well into the third quarter before rebounding into stronger winter period. However, a strong improvement in tanker rates is not expected until the second half of 2018 following an expected slowdown in tanker fleet growth and better oil market fundamentals.

In May 2017, Teekay Tankers agreed to acquire TIL and its fleet of 18 mid-sized conventional tankers in a share-for-share merger. Closing of the merger, which remains subject to various conditions, including approval from both TIL shareholders and TNK Class A common shareholders, is expected to occur in the fourth quarter of 2017.

Teekay Tankers currently owns a fleet of 40 double-hull tankers, including 20 Suezmax tankers, 13 Aframax tankers, and seven Long Range 2 (LR2) product tankers, and has three contracted time charter-in vessels.

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