The Big Four News

Oilfield services companies are in bullish mode. They are now able to raise prices for their products and services, after several years of gloom.“Oil and gas investments are on the rise, and so too is the pricing power of service companies. After losing pricing power in 2015 and 2016, oilfield service companies have since regained some of the lost ground, thanks first and foremost to industry consolidation among players that has concentrated the market over the past couple of years,” said Audun Martinsen, head of oilfield service research at Rystad Energy.“Pricing power is likely to be further strengthened within the service industry…

On Capitol Hill, October 1 was the first day of 2018, at least for the federal government’s fiscal year. In theory, on 10/1, the federal budget is supposed to be finalized with appropriations – i.e., spending – established for the next year. In practice, of course, it rarely works that way. Budget deliberations frequently last through December. And even on New Year’s Eve, Congress may be forced to vote on a Continuing Resolution to keep the government operating. The 2018 budget is of particular interest and it’s particularly important.

Capesize rates fall in a quiet market as holidays weigh; 20 charter-free capesize ships could add to downward trend. Freight rates for large capesize dry cargo ships on key Asian routes are set to drift lower next week unless there is an uptick in chartering activity from major miners, ship brokers said on Thursday. "Unless there is a rush (by charterers) to the market to fix cargoes, we will not see any positive signs," a Shanghai-based capesize ship broker said on Thursday. "I think rates can fall further - maybe 25 U.S. Rates from Brazil to China could drop faster to around $7.50 per tonne, the broker added. That came as freight rates for the Brazil-China route fell to $8.31 per tonne on Wednesday from $9.02 per tonne on the same day last week.

The Industrial and Commercial Bank of China (ICBC) has signed a financing agreement with Germany shipping company F.Laeisz GmbH. Under the agreement, the ICBC will provide 65 million U.S. dollars in export buyer's credit for F.Laeisz GmbH's project of upgrading two vehicle ro-ro ships at COSCO Shipyard in Dalian. This is another financing deal the ICBC signed with a Germany shipping company after it agreed to provide financing support for Peter Dohle last month. An executive at the ICBC said shipping industry is highly cyclical and many Germany shipping companies have looked into Chinese market in the new prosperity cycle. ICBC is a Chinese multinational banking company, and the largest bank in the world by total assets and by market capitalization.

Germany's largest bank, Deutsche Bank AG, has declared it will not finance a controversial coal port expansion in Australia near the Great Barrier Reef, responding to calls from environmental groups and tourism operators. HSBC, Europe's biggest bank, also signalled on Friday it would be unlikely to finance the project. Deutsche Bank's stand marks a win for those opposed to $26 billion worth of coal projects that plan to use the Abbot Point port, already facing delays due to weak coal prices. But one company involved said the bank's position made no difference. "This doesn't impact our proposed projects in any way," Indian firm GVK Hancock spokesman Josh Euler said.

No signs identify a barren field in northeastern Brazil that was meant to be the center of one of China's most ambitious agricultural forays into South America. In 2011, Chongqing Grain Group Corp announced plans to build a soy crushing plant, railways and a giant inland storage and transportation hub to export goods back to China. The total price tag: $2 billion. Yet today, the company has only managed to bulldoze a 100-hectare area on which the crushing plant might one day stand. Even that project is on hold, though, and shrubs are starting to grow back on the cleared terrain. The stalled plans are an example of the difficulties facing once-promising Chinese investments here.

The Port of San Diego appoints Robert "Bob" DeAngelis as Chief Financial Officer/Treasurer with immediate effect. DeAngelis will begin his new role immediately, overseeing Financial Services and Accounting as well as the Port's Business and Information Technology Services. He succeeds Jeff McEntee, who is retiring in May after 25 years of stellar service with the Port of San Diego, having held the CFO/Treasurer role since 2001. The Port conducted a nationwide search for this key position and considered a highly qualified pool of applicants before making this appointment.

Measured by equity TEU, there is no change in the order & ranking of the top five international container terminal operators. PSA (Port of Singapore Authority) was again the leading operator in terms of equity TEU ahead of Hutchison (HPH), but by a much reduced margin following the divestment by PSA of its interests in HPH’s Hong Kong terminals. There is now a difference of only just over 4 million TEU in Drewry’s assessment of PSA and HPH’s equity TEU throughput. DP World and APM Terminals are closely matched in third and fourth spots whilst the COSCO Group’s throughput remains somewhat less than that of the top 4 players. The big four global operators collectively accounted for 26.5% of world container port throughput…

Drewry Maritime Research’s latest Annual Review of Global Container Terminal Operators report shows that whilst some things have remained the same, others have changed significantly with more change to come. Measured by equity teu, there is no change in the order and ranking of the top five operators. PSA was again the leading operator in terms of equity teu ahead of Hutchison (HPH), but by a much reduced margin following the divestment by PSA of its interests in HPH’s Hong Kong terminals. There is now a difference of only just over 4 million teu in Drewry’s assessment of PSA and HPH’s equity teu throughput. DP World and APM Terminals are closely matched in third and fourth spots whilst the COSCO Group’s throughput remains somewhat less than that of the top 4 players.

Ellicott Dredges, LLC-a unit of Ellicott Dredge Enterprises, LLC-and its management have recently received multiple awards from international and national organizations for its technical innovations, leadership in the dredging industry, organizational growth, and community contributions. Ernst & Young, one of the "Big Four" accounting firms, has announced that Ellicott Dredges' President Peter Bowe is the recipient of its 2009 "Entrepreneur of the Year" award for Maryland in the manufacturing category. An independent panel of seven judges selected Bowe from the nominee pool.

South Africa said it would not go for the wholesale sell-off of ports as they were regarded as strategic assets. Public Enterprises Minister Jeff Radebe said that the government had developed a ports policy to be released early next year. "Government does not envisage a wholesale privatization of ports. Instead, private operators will have a role in South African parts by way of concessions and public-private partnerships," said Radebe. South Africa has embarked on a process to accelerate the restructuring and partial privatization of state-owned assets -- focusing on defense group Denel, transport parastatal Transnet, telecommunications group Telkom and power utility Eskom.

In the cruise industry, it is widely acknowledged that four main shipyards are competing for the majority of all new cruise ship orders. In its latest publication, GUIDE 01, ShipPax Information of Sweden has compiled figures to illustrate the situation in a market report. According to the outcome, the dominance tends to be strengthened if anything. The four shipyards are Kvaerner Masa-Yards, Meyer Werft, Chantiers de l'Atlantique and Fincantieri. Between them, they delivered 22,630 lower berths on new cruise ships last year. Other yards contributed with 1,968. The "Big Four" had a market share of 92percent of the capacity delivered. In the early 80s and earlier, all cruise ship deliveries came from different yards, albeit the total capacity at that time was not impressive.

Drewry Shipping Consultants, the world's leading maritime consultants, has released its latest special report entitled: “Floating Production Storage and Offloading (Offtake) unit (FPSO)”. Drewry analyses the origins of the industry in the 1970s and how it has progressed to present day, as well as predicting a future of growth. Drewry's positive outlook for the FPSOs market stems from extensive research, which identifies high oil prices and strong demand for oil as the key triggers for 'marginal oilfields' now becoming more attractive financially. “The FPSOs market has come a long way since its inception in the 1970s. Offshore technology was still in its infancy and the tanker market was struggling due to escalating oil costs caused by the Middle East conflict…

For those convinced that the latest round of corporate consolidations is the last, think again. According to a new report from Drewry, the announcement by Keppel and Hitachi to further amalgamate the shiprepair industry in Singapore is the latest indication of a changing market structure through increased consolidation, diversification and an increased competitiveness from low cost emerging nations. The intense competition prevalent within the industry is exemplified by the announcement of the two giant Singapore based conglomerates Keppel Corp. and Hitachi Zosen to merge their shiprepair and building activities in a $165-million deal…