Costs Rise

Single Hull Tanker Ban Could Send Freight Rates Soaring

When OPA 90 was introduced in wake of the Valdez accident, the stipulation that tankers trading in the U.S. must be double hulled was roundly panned throughout the world, as industry experts bemoaned the fact that one country have such a deciding impact on vessel design. How soon they forget. Ten years and a few tragic sinkings off European shores have let to Italy's sudden plan to ban single-hulled tankers from seven key port areas, a move which some contend will cripple a pipeline feeding oil to Germany from the Italian port of Trieste, a leading brokerage warned. "The ban will be felt in Germany and Austria," said Italy's largest brokerage Banchero Costa. "Unilateral action by the Italian ministry could...lead to chaos in the supply chain." Italian Environment Minister Willer Bordon said the government was preparing a directive aimed at reducing the risk of environmental damage from oil spills by banning single-hulled tankers from seven key port areas from April 23. But brokers and shippers warned that there were simply not enough double-hulled tankers in the region to service the need of the Italian oil trades. "This directive represents a notable leap in safety," Bordon said. "We will be at the vanguard of Europe and the world." The ban would apply to several areas with major tanker terminals, including eastern Sicily, Genoa and Trieste

Tsakos Reports Profits Q2 2009

Tsakos Energy Navigation Limited (NYSE: TNP) reported results (unaudited) for the second quarter and first half of 2009. Revenues, net of voyage expenses and commissions, were $88.60 million in the second quarter of 2009 compared to $146.64 million in the comparable 2008 period reflecting the lower freight rate environment. TEN deployed on average 46.0 vessels versus 44.0 vessels in the prior year quarter. Fleet utilization remained high at 97.8% as compared with 97

Canadian Committee of GL, Annual Meeting

"How to make ships more efficient?" This was the key question posed at the 15th Canadian Committee meeting of Germanischer Lloyd (GL). More than 20 representatives of the Canada and U.S. Flags, ship owners and operators, yards, consultants, and port authorities attended the event hosted by Executive Vice President Americas Capt. Kevin Coyne and Committee Chairman Peter Cairns from the Shipbuilding Association of Canada.

Hyundai Heavy Q3 Profit Drops

·        Higher steel costs weigh on margins ·        Outlook weakens but top players set to weather downturn Hyundai Heavy Industries Co Ltd 009540.KS reported on Oct 30 that its quarterly net profit fell by a third, hit by rising raw materials costs and losses from the weaker won. The shipbuilding industry faces declining orders and falling shipping demand amid a deepening global downturn

Report: Producing Oil, Gas More Costly

The cost of producing oil and gas has risen about 53 percent the past two years, and the trend is expected to continue this year, according to a report released Monday. Business Week reported that those same costs have climbed 67 percent since 2000, but most of the increase has come since the end of 2004, according to an analysis by Cambridge Energy Research Associates and its parent, IHS Inc., which together have created what they call the Upstream Capital Costs Index.

Rising Steel, Oil Prices Raise LCS Costs

Lockheed Martin Corp. says a double-digit jump in the cost of steel and rising oil prices have influenced the rise in the final price tag of its latest warship for the Navy to more than double the initial estimates.  Navy officials last month told lawmakers the service's initial estimate of $220m per ship had ballooned to as much as $550 million, which they blamed on design changes that occurred during construction.

Surging Commodity Prices Drive up Coating Costs

International Paint Ltd. is set to initiate product price rises in response to spiraling global raw material costs.   “During 2010 the cost of raw materials critical to the manufacture of both our Marine and Protective Coatings’ product ranges increased significantly,” said Paul Westcott, Marine & Protective Coatings Commercial Director. “We have attempted to minimize the impact on our customers for as long as possible by leveraging our buying power and

US Inland Waterway Transportation Outlook

A rise in freight transportation and revenue from fuel surcharges will restore growth according to new IBISWorld research report With consumers increasing their spending as the economy recovers, and manufacturers likewise boosting their production, demand for inland water transportation will get a boost. Additionally, rising fuel costs will lead to operators earning more money from fuel surcharges. However, the industry will experience some turbulence from rail transport providers

DOS: Cost of non-immigrant Visa to Rise

The US Department of State issued a final rule amending the regulations regarding security measures for issuance of non-immigrant visas. Effective January 1, 2008, fingerprinting and name checks will be required for all visa applicants (with certain narrow exceptions not pertinent here). The cost of these additional security measures will be included in the fees for the visas. While not reflected in the Federal Register

China Demand Edges Commodity Freight Rates Upward

Rates to ship iron ore, coal and grains rose for the longest streak in almost a year on speculation Chinese demand increased. The Baltic Dry Index gained for a 15th straight session, adding 1.4 percent to 912 today, according to the Baltic Exchange, the London-based publisher of shipping costs. That’s the longest streak since March 30, 2012. Daily earnings for Capesizes, the largest ships tracked by the gauge, rose 1.7 percent to $4,977, according to the exchange, reports Bloomberg.