Drewry: Carriers Getting Busier on Asia-Middle East Route

Spot rates in the Asia to Middle East market are seeing the most traction as container shipments on the route improved by 1.6% year-on-year in May, according to shipping consultancy Drewry.

Although volumes registered in the first five months of 2017 were down by 2.6% to 1.3 million TEU, freight rates were on the up as westbound shipments improve from Asia to the Middle East and in particular to South Asia. Drewry said that prices in both lanes “should at the very least hold firm over the coming months.”

Despite the lacklustre start to the year, annual trade growth could rebound back in 2017, by potentially as much as 3%.

The Asia to South Asia market continues to expand. The latest Container Trades Statistics (CTS) data puts westbound volumes up by 6.4% after five months, following a massive 16% jump in May. It is very possible that demand could rise by as much as 7% this year to surpass the 2016 growth rate of 4.9%.

“There will inevitably be some seasonal drop-off in cargoes in the third quarter in comparison to the second quarter but, with both Ocean and THE now including Asia to Middle East in their vessel-sharing agreements, an opportunity exists for a more co-ordinated approach to balance trade-level supply with demand,” Drewry said.

“Spot rates on the Asia to Middle East trade have been somewhat erratic with large monthly gains quickly snuffed out.”

That was the case in May when Shanghai to Jebel Ali 40ft spot rates shed USD 600 to wipe out most of April’s hike. Spot rates on the same corridor then spiked again in June to reach USD 1,920/40ft. Ignoring the volatility, rates have trended upwards for a year and June’s benchmark was double that of the same month last year.

Freight rates on the Asia to South Asia tradelane are also trending upwards, although they lack the wild swings of the Middle East, Drewry informed. The benchmark rate for Shanghai to Nhava Sheva hit a 30-month high in June, gaining over USD 200 in a month to USD 1,290/40ft. Again, this is more than double the price of the same one year ago.

medium.com

Berge Bulk Expands Fleet with New Ore Carrier

Singapore-based dry bulk owner Berge Bulk has taken delivery of the latest in the series of four 262,000 dwt vessels, the Berge Annapurna.

Featuring a length of 327 meters and a width of 57 meters, the company’s newest ore carrier vessel was constructed by China’s Longxue shipyard and delivered to its owner on July 21.

Sailing under the flag of Isle of Man, the vessel will be deployed on the routes between Australia and China.

As part of Berge Bulk’s effort to minimize impacts on the ocean and the environment, Berge Annapurna was equipped with several energy saving devices, including the ENSaver, an energy monitoring software that provides a dashboard overview of all vital sensors to ensure the ship runs on optimum parameters; the rudder bulb and the Hub Vortex Absorbed Fins (HVAF), designed to reduce energy losses from the large propellers.

The vessel is also equipped with a Hull Monitoring System that enables the crew to monitor the stress responses in the hull structure during operations.

medium.com

New Measures to Improve Seafarers’ Working Conditions

The European Commission is proposing to incorporate an agreement between social partners to improve the working conditions of seafarers on board EU-flagged vessels in EU law.

The proposal will ensure that seafarers are better protected against abandonment in foreign ports in the future, and will strengthen their rights to compensation in the event of death or long-term disability due to an occupational injury, illness or hazard.

“Maritime transport remains crucial for Europe’s economic development. Today’s proposal will strengthen seafarers’ protection and underpin fair competition in the maritime sector,” Marianne Thyssen, Commissioner for Employment, Social Affairs, Skills and Labour Mobility, said.

“Improved working conditions will also make the shipping sector more attractive for young Europeans. This proposal is an excellent example of how social partners support the Commission in keeping EU law fit for purpose,” Thyssen added.

Additionally, the proposal will improve seafarers’ protection in the event of abandonment, including when the ship owner fails to pay contractual wages for a period of at least two months, or when the ship owner has left the seafarer without the necessary maintenance and support to execute ship operations.

“This will not only benefit seafarers themselves, but also all EU port authorities, as it will result in fewer problematic cases of abandonment,” the European Commission informed.

Furthermore, the proposal will also improve the mechanisms by which compensation is provided. This will make the payment of claims quicker and easier, which will help avoid the long delays in payment and red tape that seafarers or their families frequently encounter in case of abandonments or in case of death or long-term disability.

Philly Shipyard Delivers Third Product Tanker to APT

US-based Philly Shipyard (PSI) has delivered the third of four product tankers that it is building for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan.

The next generation 50,000 dwt American Liberty, which has a carrying capacity of 14.5 million gallons of crude oil or refined products, was handed over to its owner on July 26.

The tanker is based on a proven Hyundai Mipo Dockyards (HMD) design that also incorporates numerous fuel efficiency features, flexible cargo capability, and the latest regulatory requirements.

American Liberty has also received LNG Ready Level 1 approval from the American Bureau of Shipping (ABS).

“This vessel is delivered on time, the hallmark of great shipbuilding that our customers depend on. As we celebrate this achievement and say farewell to the American Liberty, we wish the crew a safe and successful voyage beyond our shipyard here in Philadelphia,” Steinar Nerbovik, Philly Shipyard’s President and CEO, said.

This delivery is the 27th vessel built by PSI, formerly known as Aker Philadelphia Shipyard. The shipyard currently has one additional 50,000 dwt tanker for APT and two 3,600 TEU containerships for Matson Navigation Company under construction.

Diana Containerships Bounces Back to Profit

Athens-based shipowner Diana Containerships has managed to return to black during the second quarter of the year as it reported a net income of USD 36.5 million compared to a net loss of USD 8 million seen in the same period of 2016.

Net income for the second quarter of 2017 included a gain from a debt write-off, arising from the settlement agreement with respect to the secured loan facility with The Royal Bank of Scotland plc (RBS), which was signed on June 30, 2017. The specific gain, net of related expenses, amounted to USD 42.2 million.

Time charter revenues, net of prepaid charter revenue amortization, were USD 5.5 million for the second quarter of 2017, compared to USD 8 million for the same period in 2016, mainly due to reduced employment opportunities and lower time charter rates.

For the six-month period ended June 30, 2017, the company delivered a net income of USD 29.1 million, compared to a net loss of USD 13.8 million reported a year earlier.

Time charter revenues, net of prepaid charter revenue amortization, for the six months ended June 30, 2017, amounted to USD 9.3 million, compared to USD 19.8 million for the same period in 2016.

Scorpio Bulkers Cuts H1 Loss

Monaco-based bulker owner and operator Scorpio Bulkers resumed its recovery streak from the first quarter slashing its half-year net loss to USD 48 million in 2017 from a net loss of USD 83 million reported for the six months ended June 30, 2016.

Time Charter Equivalent (TCE) revenue was USD 72.2 million in the first half of 2017, Scorpio said, with TCE revenue per day of USD 8,673 for the first half of 2017, almost doubling from last year’s USD 4,396.

“TCE revenue increased significantly versus the prior year due to the increase in rates, attributable to increased worldwide demand across all bulk sectors, regions, and commodities, as well as a reduction in supply as fewer vessels are now on order, combined with the increase in revenue days associated with the growth of our fleet,” the company explained.

For the second quarter of 2017 the company’s GAAP net loss was USD 13.4 million, also down year-on-year when compared to last year’s USD 24.7 million net loss.

Scorpio said that it has agreed with lenders in July 2017 to reinstate the deferred debt repayments on its USD 45.4 million debt facility.

“Under these agreements in principal, we will be required to make principal payments of approximately USD 7.3 million in the third quarter of 2017 and quarterly principal payments ranging from USD 1.0 million to USD 4.5 million per quarter from the fourth quarter of 2017 through the fourth quarter of 2020,” the company added.

As a result, all restrictions on the payment of dividends that were put in place as part of prior loan amendments have been removed from the company’s credit facilities.

During the second quarter of 2017, Scorpio sold SBI Cakewalk and SBI Charleston for USD 22.5 million each, and took delivery of SBI Jive, a Kamsarmax vessel, delivered from Hudong-Zhonghua (Group), thus completing delivery of all 46 vessels in the company’s newbuilding program.

In addition, during the quarter Scorpio hired an Ultramax vessel within a time charter-in agreement lasting for two years at approximately USD 10,125 per day. The charter hire can be extended for one year at approximately USD 10,885 per day, and is expected to commence by the end of October 2017.

Hapag-Lloyd to Double Its Operations in Turkey

German shipping major Hapag-Lloyd expects to increase its presence in the Turkish market after it finalizes the integration of the Dubai-based United Arab Shipping Company (UASC).

Hapag-Lloyd Turkey, which has grown from being a minor player to the third biggest carrier in the Turkish market within a few years, expects to more than double the size of its Turkish operations from about 230,000 TEU yearly to almost 500,000 TEU.

This development recently peaked with the first ever call of a 13,200 TEU Hamburg Express-class vessel, the Leverkusen Express at the Istanbul Kumport terminal.

With more than 5,500 moves at Kumport terminal, the vessel, which operates in the new THE Alliance MD3 service, has set the record for the highest move-count to date at the terminal, according to Hapag-Lloyd.

“The arrival of the Leverkusen Express is an important milestone for Area Turkey. The new THE Alliance service MD3 service provides us with many opportunities, since it connects Piraeus, Istanbul, Aliağa and Mersin directly with Asia. Istanbul is the main port in the Turkish rotation, especially discharging Far East Westbound cargo,” Danny Smolders, Area Manager, said.

“With the capacity of the Hamburg Express class vessels and our considerable growth we’re clearly up for some nice challenges here in Turkey, however, we’re ready and look forward to taking them on,” Smolders added.

Turkey’s Alternative Wins EBRD Loan to Buy RoRo Ship

Turkey’s fast-growing Ro-Ro firm Alternative Transport has secured a EUR 27.5 million loan (USD 31.6 million) to finance the acquisition of a new roll-on/roll-off (Ro-Ro) cargo ship.

Alternative Transport is investing in a new EUR 55.5 million-vessel, Meleq, with a capacity of 283 trailers to carry wheeled cargo such as cars, trucks, trailers or railroad cars that are driven on and off the vessel.

The new cargo ship will enable the firm’s much-needed expansion on the route connecting the Istanbul port of Haydarpasa and the north-eastern Italian port city of Trieste, increasing profitability and operating efficiency.

The EBRD has previously financed the acquisition of the other three ships on this route.

Back in 2014, the bank provided the company with a EUR 63 million-loan to buy three ships it had been operating on a charter basis.

Sea shipping is the leading mode of transport for Turkish international trade, both by value and volume. Over 60 per cent of imports and 55 per cent of exports, by value, are seaborne.

Ro-ro vessels form an integral part of developing the “motorways of the sea”, an international vision to transform shipping into a genuine, more environmentally friendly alternative to overcrowded land transport.

“Although the importance of ro-ro transportation between Europe and Turkey is increasing rapidly, shipping companies in Turkey suffer from scarce access to long-term financing. This is our second transaction with Alternative Transport, a truly international sea transport firm, as we believe shipping operations are not only a successful business but also support a cleaner, safer and more efficient transport system for the country’s booming trade,” Sue Barrett, EBRD Director for Transport, said.

“We are pleased with the support of EBRD, which helps to make possible the execution of our strategy to develop intermodal solutions linking major European ports. On top of that, we keep developing our infrastructure; we invest in new vessels, trucks, warehouses and own ports to the benefit of our customers,” the founder and chairman of Alternative Transport, Ahmet Musul, said.

Alternative Transport was established in 2013, and gained a market share of as much as 18 per cent in its first year of operations, according to EBRD.

The company’s fleet is currently comprised of four RoRo ships.

Next Decade Looks to Build LNG Terminal at Port of Cork

LNG development company NextDecade has signed an agreement to investigate the development of a new floating storage and regasification unit (FSRU) and LNG import terminal at Ireland’s Port of Cork.

Under the terms of the Memorandum of Understanding (MOU), the potential development at the Port of Cork would receive LNG from NextDecade’s planned Rio Grande LNG project in South Texas.

NextDecade believes the Port of Cork facility could support imports of up to 3 mtpa from RGLNG.

“The MOU commits the parties to undertake exclusive negotiations to develop the LNG import project,” NextDecade said. The development would provide “competitively priced energy solutions” to Ireland and its regional partners under long-term contracts.

In late 2016, NextDecade agreed with FSRU provider FLEX LNG for the joint development of a full value chain infrastructure solution utilizing FSRU and dockside regasification import technology. FLEX LNG will be supporting the company to provide a fully integrated regas import solution for the proposed LNG terminal at the Port of Cork.

The company is in discussions with European energy companies to enter into long-term purchase contracts for delivery of LNG at the Port of Cork.

Additionally, NextDecade will manage shipping from its proposed RGLNG export facility at the Port of Brownsville in South Texas to the Port of Cork.

Tallink Sells Superfast Duo to Stena Ropax

Oslo-listed AS Tallink Grupp has inked agreements to sell its two superfast ferries to Stena Ropax Limited in a deal worth EUR 133.5 million (USD 152 million).

The ships in question are Superfast VII, now renamed to  M/S Stena Superfast VII and Superfast VIII, also renamed to M/S Stena Superfast VIII, both built in 2001.

As disclosed, the vessels are slated for delivery to the buyer in December 2017. Until then they will continue operations in the UK waters according to the charter agreements concluded in August 2011 by Stena Line Ltd.

“The cash flow from the sale of the vessels will strengthen the group’s financial position. The profit from the sale of the vessels is not significant to the consolidated results of AS Tallink Grupp,” Tallink said commenting on the deal.

Prior to the sale AS Tallink Grupp had four fast ro-pax ferries and operated one vessel under charter agreement.

The company also owns 9 cruise ferries, which are operating under the brands of Tallink and Silja Line, and two vessels orientated on cargo transportation.

See more at sowoll.

SCPA Posts Record Annual Volumes

South Carolina Ports Authority (SCPA) moved a record 2.14 million TEU units in fiscal year 2017, an increase of 10 percent over the previous year’s container volumes.

As explained, highest-ever June volumes of 183,237 TEUs gave SCPA a strong finish to its fiscal year, which runs July through June. The port’s previous record was 1.98 million TEUs, achieved in FY2006.

“We had a very strong fiscal year…Such growth enables the port to continue to make the necessary investments in equipment and infrastructure to support the big ships being deployed to the East Coast today,” Jim Newsome, SCPA President and CEO, commented.

As measured in pier containers, the port handled its highest ever pier container volume of 1.21 million boxes during FY2017, surpassing the previous record of 1.13 million boxes in FY2005. Additionally, SCPA moved a record 104,010 containers across the docks of its two container terminals in June.

SCPA owns and operates seaport facilities in Charleston, Georgetown and Greer. In the Port of Charleston, SCPA opened at the end of June a new refrigerated container service area, marking a USD 14 million investment to support growing cold chain business in the Southeast.

SCPA’s loaded refrigerated cargo volumes have grown 86 percent since 2011, driven by proximity to export pork and poultry producers, access to a deepwater harbor, which allows ocean carriers to load ships heavy with frozen exports, and growing regional demand for import reefer commodities.

See more at sowoll.

Verifavia Gathers 1K Ships for EU MRV Assessment

Emissions verification company Verifavia has surpassed the 1,000 mark for ships and Monitoring Plans (MPs) under assessment for compliance with the European Union’s Monitoring, Reporting, and Verification (EU MRV) regulation.

This is a significant milestone for the company, which became the first globally accredited verifier to receive dual accreditation under ISO 14065 standard and Regulation 757/2015 three months ago.

With accreditation from the United Kingdom Accreditation Service (UKAS) and France’s national accreditation body, Cofrac, the company is able to assess or verify any ship, anywhere in the world, regardless of country of ownership, flag state, or class.

Verifavia’s client roster comprises global shipping companies including The China Navigation Company (CNCo), The Wallem Group, E.R. Schiffahrt, Chios Navigation (Hellas) Ltd, Oldendorff Carriers, NORDEN, DFDS, Fairmont Shipping, OSM Maritime Group, and Enesel S.A & Limited.

See more at sowoll. 

#Morningenergy July 13, 2017

#Morningenergy Good morning dear friends~~~

You peel it off one layer at a time, and sometimes you weep. What's this?

@ http://www.sowoll.com/

Port of Hamburg Handles a Bit More in 2016

Total seaborne cargo throughput at Germany’s Port of Hamburg reached 138.2 million tons in 2016, representing a growth of 0.3 percent, or 347,000 tons, compared to the previous year.

The increase was attributable to general cargo throughput, which in 2016 represented a 67.5 percent share of the total, after 67 percent in the previous year.

In the year under review, throughput of general cargo, both containerized and conventional – at Hamburg terminals totalled 93.3 million tons, an advance of one percent or 922,000 tons on the previous year, driven by the container throughput.

As in the two previous years, in 2016 the Port of Hamburg’s index figure for containerization, or containerized general cargo’s proportion of the general cargo total, was around 98.4 percent. At 91.7 million tons, in 2016 containerized cargo throughput was up by 1.1 million tons or 1.2 percent on the previous year.

In 2016 throughput of non-containerized general cargo totalled 1.5 million tons, a downturn of eleven percent.

The positive general cargo throughput trend sufficed to compensate for a fall in bulk cargo handling. After a strong performance in the previous year, this fell by 1.3 percent or 575,000 tons to 44.9 million tons in 2016.

With a throughput of 22 million tons slightly down on the previous year, the grab cargo category dominated this segment.

USS Fitzgerald’s CO Relieved of Duty as Ship Enters Drydock

The commanding officer of the guided-missile destroyer USS Fitzgerald that collided with ACX Crystal in June, killing seven US Navy sailors was relieved of duty temporarily on July 11 for medical reasons, the navy said.

“Cmdr. Bryce Benson, who is recovering from injuries sustained during Fitzgerald’s June 17 collision with the merchant vessel ACX Crystal, was relieved temporarily by Capt. Jeffrey Bennett, commodore, Destroyer Squadron 15,” the navy said in a release.

Separately, the guided-missile destroyer entered dry dock today to continue repairs and assess damage sustained from the collision.

The navy informed that the ship’s damage is being assessed so as to determine whether the ship will be able to travel to the states under its own power or will need to be towed, and  inform options for long term repairs.

Lt. David Reinhardt, SRF-JRMC’s Docking Officer said the ship’s hull would be inspected for any potential “abnormalities”.

The warship collided with the Philippine-flagged containership, operated by Japan’s NYK Line, on June 17, some 56 nautical miles southwest of Yokosuka, Japan.

Several investigations into the incident are currently underway, including those launched by the US Coast Guard, the Navy and the relevant Japanese authorities.

See more at sowoll.

Central Shipping Monaco Inks LR2 Tanker Order with HHIC

Tanker management company Central Shipping Monaco has placed an order at Hanjin Heavy Industries & Construction (HHIC) in the Philippines for up to four 115,000 dwt tankers.

The order includes two firm plus two additional Long Range 2 (LR2) tankers, valued at USD 45 million each, according to Intermodal Research and Valuations.

The newbuildings are scheduled for delivery in 2019.

Central Shipping Monaco has seven tankers in its fleet and three newbuildings, also being built by Hanjin Heavy Industries, slated for delivery in 2018.

World Maritime News is yet to receive a reply from the company seeking comment on the matter.

See more news at sowoll.

#Morningenergy July 12, 2017

#Morningenergy Good morning everybody~~~

Little compliments mean so much to me sometimes.

@ http://www.sowoll.com/

HMM, SNP Partner Up on Vietnam Port Development

South Korean shipping company Hyundai Merchant Marine (HMM) has signed a memorandum of understanding (MOU) with terminal operator Saigon Newport Corporation (SNP) for joint cooperation on port development in Vietnam.

The signing ceremony took place at Cat Lai Terminal in Ho Chi Minh City, Vietnam, on July 6.

Both parties intend to develop port and container depot facilities in Vietnam, sharing the consensus of exchanging various know-hows in port development and shipping.

“We are well aware of the importance of Vietnam in a global logistics market. HMM’s volumes in Vietnam will increase over 50% from last year due to the rapid growth of emerging market,” Yoo Chang-Keun, HMM CEO, commented.

“This MOU will be an opportunity for both HMM and SNP to strengthen the partnership and expand the scope of cooperation, not only in Vietnam but also on a global scale,” Chang-Keun added.

HMM currently operates four services that connect Korea and Vietnam (Ho Chi Minh City / Haiphong).

See more news at Sowoll.

India Starts Building LNG Import Terminal in Dhamra

India has taken a step toward increasing seaborne imports of liquefied natural gas (LNG) as the country held a ground breaking ceremony for the construction of an LNG terminal in Bhadrak.

Officials informed that cargoes carried from the US, Canada and Qatar would be delivered to the INR 60 billion (USD 930.3 million) Bhadrak terminal, which will be located at the port of Dhamra. Although India has import terminals in Gujarat and Maharashtra, the new terminal will be the country’s first LNG terminal.

Under the development plans, the LNG terminal will have a capacity of 5 million metric tons per year and is expected to contribute to the process of development and economic growth in eastern India, according to Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas.

Pradhan further informed that the terminal, which will provide employment and investment opportunities, along with access to clean fuel, is expected to be commissioned by 2020-21.

“Dhamra will be a vital link in connecting Eastern India to the gas infrastructure of the country and will also benefit neighboring countries,” Pradhan said.

See more news at Sowoll.

Japan’s Trio Sets Up Container Shipping JV

Japan’s three major container shipping companies established a holding and operating company on July 7 as they move toward the integration of their container shipping businesses.

Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines (MOL), and Kawasaki Kisen Kaisha (K Line) was planning to set up the joint venture company at the strt of July, however, they pushed the establishment date despite claiming to have received all necessary approvals for compliance with local competition laws.

The JV company, which includes worldwide terminal operation businesses outside Japan, received the approvals in regions and countries where compliance is required for the establishment of Ocean Network Express (ONE).

In late June, the Republic of South Africa’s competition commission decided to block the trio’s proposed merger saying that the structure of the container liner shipping market “is conducive to coordination based on previous collusive conduct in the container liner market in other parts of the world.”

The companies earlier said they expect to complete the approval process for compliance with competition law before the service commencement date of April 1, 2018.

“Overall, there is no impact on the three companies’ integration plans for the new container shipping business, and the service commencement date for the new company is likewise unchanged from April 1, 2018,” MOL informed.

See more at sowoll .

Abu Dhabi Ports Opens New Delma Port

Port developer and operator Abu Dhabi Ports officially inaugurated the new Delma Port, set to play an active role in promoting economic and social growth in the Al Dhafra region, on June 6.

Located on the eastern side of Delma Island, the new port will better serve the community as an upgraded multipurpose port capable of handling cargo, passenger ferries and fishing vessels. In addition, it will help support the growth of the tourism sector in Dalma, the Islands and the surrounding areas.

“The development of Delma Port comes in line with the Abu Dhabi Plan, which calls for an effective transportation system to serve the community and economy, with an emphasis on the development of sustainable sea transport,” Faris Khalaf Khalfan Al Mazrouei, Chief of the General Authority for the Security of Ports, Borders and Free Zones, and Board Member of Abu Dhabi Ports, said.

With a budget of over AED 170 million (USD 46.2 million), the new Delma Port covers a total area of 280,725 m2, with 58,500 m2 of pavement for easy transport. As one of the biggest ports in Al Dhafra region, it features an accessible breakwater with platform to integrate the operation of ferry terminal and CICPA facilities.

“The Delma Port project is one that promises to be a foundation stone in the development of the Al Dhafra region through its focus on meeting the highest quality standards. In addition, the deep foresight and strategic thinking that has gone into the planning of this project is evidence of Abu Dhabi Ports’ commitment to the success of Delma Port in accordance with the objectives of our government,” Al Mazrouei added.

Abu Dhabi Ports said it works closely with its strategic partners, Abu Dhabi Urban Planning Council, Department of Municipal Affairs and Transport, Critical Infrastructure and Coastal Protection Authority (CICPA), Abu Dhabi National Oil Company (ADNOC) and several other government entities, to execute its plan.

See more at sowoll. 

#Morningenergy July 10, 2017

#Morningenergy Good morning every body~~~

Fear is a product of ignorance.

@ http://www.sowoll.com/

COSCO Shipping Forecasts Return to Profit in H1 amid Market Rebound

Chinese shipping major COSCO Shipping Holdings, the container arm of China Cosco Shipping Group, expects to book a profit of CNY 1.85 billion (USD 272 million) for the first half of this year, the company said in a stock exchange filling citing preliminary forecast.

This is a major rebound when compared to the last year’s loss of CNY 7.2 billion for the corresponding period.

The recovery builds upon the positive results reported for the first quarter of this year when the company posted a net profit of CNY 270 million (USD 39.1 million) against a net loss of CNY 4.46 billion year-on-year.

The shipping firm’s revenues for the first three months surged by 48 percent to CNY 20.1 billion from CNY 13.5 billion seen a year earlier, while its operating profit reached CNY 425 million, bouncing back from an operating loss of CNY 4 billion.

COSCO attributed the shift to the recovery of the container shipping market, market stabilization along with the company’s reorganization activities aimed at cost cutting.

As informed, the average freight rates for box shipping business have risen, accompanied by cargo volume increase of 34.72% year-on-year, and earnings have continued to rise since the fourth quarter of last year.

UK Chamber: EU Ports at Risk amid Brexit

The UK Chamber of Shipping has warned that Brexit would have a wide impact on European ports saying that “the dangers to major EU ports has been understated.”

The Chamber informed that the return of border controls would lead to increased bureaucracy, “guaranteed” lorry gridlock and threats to the prosperity of both EU member states and the UK.

“The EU sells GBP 240 billion of goods to the UK each year, most of which travels through ports. So the negative impact of a so-called hard Brexit on ports such as Dover will be felt just as severely if not more so by European ports. I don’t think the EU has fully grasped this yet,” Guy Platten, Chief executive of the Chamber, said:

Platten urged Brexit negotiators to “put ideology aside” and retain frictionless trade between the United Kingdom and the European Union.

“Much of the attention on the impact of leaving the customs union has been on UK ports such as Dover,” he said, adding that major EU ports such as Calais, Zeebrugge and Dublin would find themselves “equally as vulnerable.”

The Chamber informed that Brexit negotiators on both sides “must agree” that the reintroduction of border controls would be a bad thing, however, by protecting trade, “both the economies of the EU and the UK would be safeguarded.”

“The UK Government understands the importance of sorting this out around the negotiating table, but we are yet to see evidence that the EU negotiators fully understand their own vulnerability,” Platten concluded.

#Morningenergy July 7, 2017

#Morningenergy Good morning dear friends~~~

Whatever happens,happens for a reason.

@ http://www.sowoll.com/

SM Line Eyes Nine More Ships

South Korean shipping company SM Line is keeping busy with fleet expansion plans as it sets sights on adding nine more ships by the end of the year.

The intentions were revealed to the local media by company executives, according to which, the new ships will be deployed on the new intra-Asian and trans-Pacific routes.

Availing of the relatively low asset prices, the company plans to acquire five 8,500 TEU and four 5,000 TEU containerships by the end of this year, Ki Hun Kwon, president of SM Line, is quoted as saying at the meeting.

As disclosed, the 8,500 TEU ships are intended for a new Pacific Northwest service, while their smaller counterparts would be deployed on a new US East Coast service, both set to launch in 2018.

Separately, the company expects its revenue to reach USD 380 million this year, while in 2018 the revenue target of USD 800 should be achieved.

The announced acquisitions, once completed, will push the company’s fleet to 26 vessels.

Post-Panamax Bulker Detained in Singapore Waters

The 2010-built bulk carrier Americana, operated by Greece-based Merchant Marine Management, has been arrested in Singapore waters, Supreme Court of Singapore’s data shows.

Featuring 91,941 dwt, the bulker was detained in the afternoon hours of June 30, a day after it arrived in the port of Singapore.

According to AIS data provided by Marine Traffic, the 51,130 gross ton ship, which has a status of laid up, is still moored in the port.

Arresting solicitor was Dentons Rodyk & Davidson LLP, while Focal Investigation & Security Agency has been appointed for security and investigation purposes related to the ship’s arrest.

The Liberia-flagged Post-Panamax bulker has a market value USD 16.3 million, according to Vessels Value.

World Maritime News Staff; Image Courtesy: Ship spotting

#Morningenergy July 6, 2017

#Morningenergy Good morning~~~

Success is the ability to go from one failure to another with no loss of enthusiasm.

@ http://www.sowoll.com/

Yangzijiang Shipbuilding’s Orderbook Hits USD 133 Mn in Q2

Singapore-listed Yangzijiang Shipbuilding (Holdings) has bagged six effective orders in the second quarter of 2017 totaling in USD 133 million, the company said in a stock exchange filing on Monday.

The six contracts include three 1,800 TEU boxships that were exercised from the existing options, while the remaining three are new shipbuilding contracts for 82,000 DWT bulk carriers.

As the new ships are scheduled to be delivered between 2018 and 2020, therefore they will not have any significant impact on the earnings of the company for the financial year ending 31 December 2017, the filing further reads.

Yangzijiang Shipbuilding said that, year to date, it has secured a total of nineteen shipbuilding contracts with an aggregate value of USD 450 million.

In addition, the existing contracts include nine outstanding options for one 6,500 DWT ConRo Vessel, two 62,000 DWT bulk carriers, three 1,800 TEU containerships and three 29,800 DWT self-unloading vessels to be exercised.

NordLB Not Selling Shipping Loans to KKR

The German shipping bank Norddeutsche Landesbank (Nord/LB) has given up on the decision to sell its shipping loans to KKR, Nord/LB confirmed to World Maritime News.

The company said that the parties “agreed to not pursue the mentioned shipping portfolio transaction anymore.”

Under the previous sale agreement reached between the companies, Nord/LB was supposed to sell a portfolio of performing and non-performing shipping loans with a total volume of about USD 1.5 billion to KKR.

The shipping bank was reportedly expecting to complete the sale by the end of June, however, the parties were not able to reach an agreement on the loans.

In August 2016, Nord/LB informed that the contract was to include up to 100 ships and would form the seed mandate for a shipping portfolio management company that the investors would create simultaneously with the closing of this sale.

The deal was a part of the shipping bank’s efforts to reduce its overall ship loan exposure from its current volume of EUR 19 billion due to a slowdown in the shipping market.

The bank was planning to cut the exposure by outsourcing risks and targeted reduction to a future volume of some EUR 12 to 14 billion.

Korean Register to Survey, Class Bangladeshi-Flagged Ships

Classification society Korean Register (KR) has signed an agreement with the Government of Bangladesh to deliver services on behalf of the Bangladeshi flag administration.

Under the agreement, KR will conduct vessel surveys and audits and issue certificates to Bangladeshi-flagged ships for compliance with SOLAS, MARPOL, ITC, ICLL, and MLC.

KR said it has been working to obtain the authorization to deliver statutory services to Bangladesh, anticipating an increase in sea-borne transport between Southern Asian countries and Bangladesh.

“We are delighted to receive the authorization to deliver statutory services on behalf of the Bangladeshi government. This means that we will be able to provide a wider range of sought after services…, adding value to their businesses in Southern Asia, including those in India and Sri Lanka,” Lee Jeong-Kie, Chairman and CEO of KR, commented.

The latest authorization brings the total number of countries where KR is authorized to carry out ship survey and certification work to seventy-seven.

Established in 1960, KR currently classes an international fleet of 3,042 vessels totaling 69 million gross tons.

Hapag-Lloyd Launches Notes Offering

German shipping major Hapag-Lloyd has launched a euro bond offering with a volume of EUR 300 million and a maturity of seven years.

As informed, the proceeds will be used for the early redemption of the company’s euro bond due in 2018 and the early partial redemption of the euro bond due in 2019.

Currently, the redemption is envisaged for October this year, according to Hapag-Lloyd.

On May 24, Hapag-Lloyd closed the merger with the UAE-based liner shipping company United Arab Shipping Company (UASC), expecting annual synergies of USD 435 million from 2019 onwards.

A significant portion of these savings should be realized in the course of 2018, while the full amount is expected to first be reached in 2019, the company earlier said.

UASC’s 58 vessels have been integrated into the fleet of Hapag-Lloyd, with Hapag-Lloyd assuming the fifth spot in terms of capacity with 230 vessels and a shared fleet capacity of approximately 1.6 million TEU.