Maritime Investments News

Insurers are facing half a billion dollars in claims for up to 60 commercial ships still stuck in Ukraine a year after the start of the war with Russia, industry sources said.When the conflict started, more than 90 merchant ships - many with food cargoes onboard - and some 2,000 crew members were caught in Ukraine and unable to leave due to the fighting.Curtailed shipments from major grain exporter Ukraine played a role in the resulting global food crisis.According to shipping and insurance industry assessments…

Bumper soybean harvests in Brazil and unsold grains stocks in the United States are set to boost dry bulk shipping rates as buyers including China restock after supply shocks last year, leading freight operators said.The dry bulk shipping market has been hit in recent months by slow activity, partly driven by the COVID lockdowns in China, one of the world’s biggest generators of seaborne commodities trade including grains as well as coal and iron ore.Grains supplies were also affected by the war in Ukraine for part of last year until a United Nations-backed corridor was set up…

U.S. Transportation Secretary Pete Buttigieg this week announced the appointment of 25 new members to the Maritime Transportation System National Advisory Committee (MTSNAC). The MTSNAC Charter will advise the Secretary, through the Maritime Administration (MARAD) Administrator, on ways to identify and address impediments hindering the effective use of short sea transportation. The MTSNAC’s counsel comes as the Biden-Harris Administration takes aim at tackling inflation and reducing the cost of goods in the country…

The U.S. Department of Transportation announced that Rear Admiral (Rear Adm.) Ann Phillips, USN, Ret., has been confirmed and sworn in as the 20th Administrator of the Maritime Administration (MARAD). Nominated by President Biden on October 21, 2021, Rear Adm. Phillips was confirmed by the U.S. Senate on May 10, 2022. She is the first woman to lead MARAD as administrator.“From her distinguished naval service to her leadership on coastal infrastructure, Rear Admiral Ann Phillips has championed America’s maritime sector throughout her career,” said Transportation Secretary Pete Buttigieg.

The Ernst Russ Group has acquired a 700 TEU geared container ship in cooperation with a strategic partner.German-based company which manages a fleet of around 80 container, tanker and bulker ships as well as other vessels said that the successful acquisition of the vessel strengthens its strategic position in the market and further expands the Ernst Russ Group fleet.The 700 TEU container ship, MV ‘Skogafoss’ was built in 2007 and is in a good technical condition. It has been operating on the North-Atlantic shipping routes to date and will be delivered into a charter with the Icelandic liner company Eimskip.The value of the transaction will not be disclosed.

German's MPC Maritime Investments, a wholly-owned subsidiary of MPC Capital, has acquired three Panamax-sized container vessels on behalf of an international investor. The transaction volume amounted to USD 42 million.In the current year, MPC Maritime has procured a total of 9 single and multi-asset deals with an investment volume of more than USD 110 million. The focus of the newly acquired vessels is on bigger container ships, supplemented by bulkers and one tanker.The majority of the vessels are technically managed by Ahrenkiel Steamship and commercially managed by Contchart. Both companies are wholly-owned subsidiaries of MPC Capital AG, an internationally active asset and investment manager specialising in real asset investments.

Indian Shipping Ministry is targeting to get investments worth $60 billion (nearly Rs 3.99 lakh crore) for a five-year term for 240 projects for the success of the ambitious Sagarmala project. The maiden Maritime India Summit 2016 in Mumbai has resulted in investment commitments of nearly Rs 83,000 crore ($13 billion) in the shipping, ports and allied sectors, Union Shipping Minister Nitin Gadkari said. The  Summit, aims to promote port-led development by harnessing the 7,500-km coastline, 111 waterways of 14,500 km. At least 150 projects have been identified — infrastructure development (Rs 4 lakh crore), industrial investment (power, steel, manufacturing, Rs 8 lakh crore), augmentation of coastal shipping and inland waterways to cut logistic cost (Rs 35,000-40,000 crore).

Dry bulk shipping companies being hit the hardest on account of the deteriorating business climate are likely to be swept by a new wave of bankruptcies, reports Nikkei. The global commodities bust has rocked the dry-bulk shipping industry, with a wave of bankruptcies washing across the sector and major players forced to restructure, divest or scrap assets. Many in the industry had hoped it would start to recover this year. But there is not much sign of that—and it looks as if more pain is still in store for shipowners. On Jan. 5, the Shanghai International Shipping Institute issued a striking report after polling about 50 of the nation's largest bulk shippers. The survey concluded that 60% of the firms it polled were struggling with long-term losses and about 40% faced liquidity problems.

Daiichi Chuo liabilities total $1.5 bln. Second dry bulker to seek bankruptcy protection this month. Japanese bulk carrier Daiichi Chuo Kisen Kaisha said on Tuesday it had filed for protection from creditors - the second shipper to do so this month - with analysts predicting more failures if the market for dry freight continues to slump. The shipping industry has been hit hard by the global commodities meltdown with the dry freight market near six-year lows and rates for large ships carrying iron ore and coal barely covering operating costs this year. Daiichi Chuo said it had been unable to make ends meet on ships it had chartered or finance ships it had ordered…

Dry-bulk shipper Global Maritime Investments Cyprus Ltd. filed for chapter 11 bankruptcy protection New York  Tuesday in order to liquidate its business due to a continued industry downturn, reports WSJ. The bankruptcy filing of the international shipping company came in New York, where Global Maritime has faced lawsuits. Most of the estimated $169 million in debt the company carries is unsecured, court papers say. The amount includes losses from 2014 worth $47.8 million and about $67.6 million from 2015 fiscal year. The company attributed the decision to seek bankruptcy protection as it was unable to pay back its debt since market overcapacity pushed down charter rates hampering the carrier’s ability to secure enough profit.

Private equity has pumped $32 bln into shipping in past 2 years. Ships totaling 299 mln dwt to enter global fleet from May. Some private equity-backed shipping IPOs have been put off on weak sentiment. The shipping industry faces a looming capacity glut as billions of dollars pumped into it by private equity have stoked a vessel-buying spree, threatening its prospects just as the sector is emerging from its worst downturn in three decades. Backed by private equity and hedge fund financing, shipping companies have placed orders for thousands of new ships over the past two years, reminiscent of the ship-ordering binge of the mid-2000s that eventually led to overcapacity after the global financial crisis severely hit cargo demand.

Kirby Corporation completes the acquisition of Penn Maritime Inc. & Maritime Investments LLC, US operators of tank barges and tugboats. Penn's fleet, comprised of 18 double-hulled tank barges with a capacity of 1.9 million barrels and 16 tugboats, operates along the East Coast and Gulf Coast of the United States. Penn's tank barge fleet has an average age of approximately 13 years with a product mix that consists primarily of refinery feedstocks, asphalt and crude oil. Penn's customers include major oil companies and refiners, nearly all of whom are current Kirby customers for inland tank barge services. Kirby Corporation, based in Houston…

Kirby Corporation (Kirby) has signed an agreement to acquire Penn Maritime Inc. (Penn) and Maritime Investments LLC. Penn Maritime is an operator of tank barges and tugboats participating in the coastal transportation of primarily black oil products in the United States. The total value of the transaction is approximately $295 million (before post-closing adjustments and transaction fees) and will consist of cash, Kirby common stock and the retirement of Penn's debt. Penn operates a fleet of 18 heated, double-hulled tank barges, with a capacity of 1.9 million barrels, and 16 tugboats along the East Coast and Gulf Coast of the United States.

According to a Bloomberg report by Rob Sheridan and Isaac Arnsdorf, record coal stocks at power plants in China, the biggest consumer of the fuel, are threatening to reverse the rally in rates for commodity carriers and diminish returns for ship owners to the lowest in more than a decade. The utilities have 91 million metric tons in reserve and stockpiles at the largest ports come to more than 90 percent of capacity, according to the China Coal Transport & Distribution Association and SteelHome, a Shanghai-based research company. Panamax rates will drop 48 percent to an average of $5,000 a day this quarter, said Steve Rodley, managing director at Global Maritime Investments Ltd., which operates 64 ships, who correctly predicted a slump in earnings for larger Capesizes in March.

Genco Shipping & Trading Limited (NYSE:GNK) reported its financial results for the three months ended March 31, 2010. The following financial review discusses the results for the three months ended March 31, 2010 and March 31, 2009. --  Genco Claudius, a 2010 built Capesize vessel, with Cargill International S.A. --  Genco Augustus, a 2007 built Capesize vessel, with Cargill International S.A. --  Genco Knight, a 1999 built Panamax vessel, with Swissmarine Services S.A. --  Genco Vigour, a 1999 built Panamax vessel, with Global Maritime Investments Ltd. --  Genco Hunter, a 2007 built Supramax vessel, with Pacific Basin Chartering Ltd. --  Genco Predator, a 2005 built Supramax vessel, with Pacific Basin Chartering Ltd.

Genco Shipping & Trading Limited (NYSE:GNK) announced that it has reached an agreement to extend the time charter for the Genco Muse, a 2001-built Handymax vessel, with Global Maritime Investments Ltd. for approximately 10.5 to 12.5 months at a rate of $17,750 per day, less a five percent third-party brokerage commission. The time charter is expected to commence on or about January 21, 2010 following the expiration of the vessel's current time charter and is subject to the completion of definitive documentation. Currently, Genco has approximately 58% of its fleet's estimated available days secured on contracts for the remainder of 2010.

Genco Shipping & Trading Limited (NYSE:GNK) announced that it has reached an agreement to enter into a time charter for the Genco Vigour, a 1999-built Panamax vessel, with Global Maritime Investments Ltd. for approximately 10.5 to 13.5 months at a rate of $24,000 per day, less a 5% third-party brokerage commission. The time charter is expected to commence on or about January 8, 2010 following the expiration of the vessel's current time charter and is subject to the completion of definitive documentation. Currently, Genco has approximately 54% of its fleet's estimated available days secured on contracts for 2010.

Genco Shipping & Trading Limited announced it has reached an agreement in principle to enter into a time charter for the Genco Acheron, a 1999-built Panamax vessel, with STX Panocean Co. Ltd. The time charter would be for eleven to thirteen months at a rate of $30,000 per day, less a 5% third party brokerage commission. The company also announced it has reached an agreement in principle to commence a time charter for the Genco Leader, a 1999-built Panamax vessel, with AS Klaveness Chartering for twenty-three to twenty-five months at a net rate of $25,650 per day, equivalent to a gross rate of approximately $27,000. Since February of 2006, the vessel traded in the Baumarine Pool, a spot pool of approximately 80 vessels.