Eighth Aframax Handed Over to TEN

Athens-based shipping company Tsakos Energy Navigation (TEN) has taken delivery of the eighth in a series of nine tankers built against long-term employment to an undisclosed European oil firm.

The vessel in question is the 112,700 dwt aframax tanker Stavanger TS, which is one of four ships from this order with ice-class specifications.

Built by Romania-based Daewoo-Mangalia, the tanker has a capacity of 123,933 m3. It features a length pf 249 meters and a width of 44 meters.

The final ship from the batch of 15 vessels, the Bergen TS, is scheduled to be delivered in the third quarter of 2017. Upon delivery, the ship will be deployed on its long-term employment.

With the delivery of the Bergen TS, TEN’s current expansion program will reach its conclusion and result in 75% of the fleet in secured contracts with minimum gross revenues of USD 1.5 billion and average charter duration of 2.6 years.

TEN’s pro-forma fleet, including one Aframax tanker under construction, consists of 65 double-hull vessels, constituting a mix of crude tankers, product tankers and LNG carriers, totalling 7.2 million dwt. Of these, 45 vessels trade in crude, 15 in products, three are shuttle tankers and two are LNG carriers.

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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.

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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.

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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.