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Costs Rise

Shipbuilding: COSCO Warns of Struggle if Credit Tightens

COSCO Corp (Singapore) , part of one of China's largest shipbuilding groups, warned that its customers could struggle to pay their bills as funding costs rise, after posting sales on credit at their highest level in 11 years.   The Singapore-listed subsidiary of Chinese state-owned maritime conglomerate China Ocean Shipping (Group) Company said trade and other receivables -- sales for which the company has not received cash payment -- rose more than 60 percent so far this year to S$4.7 billion ($3.7 billion).   Reporting an almost 70 percent jump in third-quarter profit on Monday, the company said higher receivables reflected a rise in construction contracts in its marine engineering segment.   But the company said tougher credit conditions would hurt. "The availability and cost of credit may tighten, particularly with the unwinding of monetary policy stimulus, which may adversely affect the ability of customers to meet their financial obligations," the company said. Analysts agreed. "The high receivables may have something to do with some customers delaying payment," said Yeak Chee Keong, an analyst at brokerage Maybank Kim Eng. China's huge shipbuilding industry has been aggressively moving into building rigs and vessels for offshore oil and gas activities, as the market for the traditional ships remains in the doldrums due to persistent oversupply


Matson Increases Westbound Hawaii Service Rates

Matson, Inc., a U.S. carrier in the Pacific, announced today that Matson Navigation Company, Inc. will raise its rates for the company's Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 5, 2014. The increase will be filed with the Surface Transportation Board. In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 5, 2014


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


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.


Advanced Drillships a Burden for Owners as Business Slows

Not so long ago, advanced drillships costing more than half a billion dollars each and capable of operating in ever-deeper waters practically guaranteed big profits for oil-rig operators.   Now, with oil prices down by half since June, many have become a burden on their owners as drilling activity slows.   Drillship operators face a more brutal hit to margins than they did after the oil-price crash of 2008 because of the huge cost of maintaining the more than $10 billion worth of


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.


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


Urgent Need to Cut Costs in UK North Sea

A STatoil rig in the North Sea (Photo courtesy of Statoil)

Britain's North Sea oil and gas industry faces a bleak future where more fields are likely to become uneconomic and shut in as platforms close - unless costs can be controlled, operators say. For some elderly platforms in the Northern North Sea, time is running out. If the industry does not get to grips with costs quickly, fresh investment is likely to dry up, forcing unsaleable rusting rigs to be abandoned. "From a cost point of view, the chickens are coming home to roost


Russia to Cut Pipeline Oil Exports, Oil Transit

Photo: Novorossiisk Commercial Sea Port

Russia plans to cut oil exports by pipeline and oil transit by 0.6 percent to 52.5 million tonnes in the third quarter, quarter-on-quarter, trade sources citing a loading schedule said on Tuesday. The sources, who spoke on condition of anonymity


Port of Long Beach Reports Strong May

POLB Photo: Joan Day

Improving retail market propels continued Long Beach growth; strongest May in nine years   Cargo rose at the Port of Long Beach by 6 percent in May, the third consecutive month of growth, the busiest month since October 2007, and the busiest May since 2006.  


Russia's Sechin: US, Not OPEC, Rules Oil Market

Igor Sechin, the head of Russia's top oil producer Rosneft, said on Wednesday the United States is calling the shots on global oil markets, while the influence of OPEC has shrunk.   The United States emerged with renewed vigour as a top producer thanks to its shale boom


Offshore Renewables: The Future is Now

The London Array off the coast of Kent is the largest offshore wind farm in the world. Credit: London Array Limited

While the recent swoon in world oil and gas prices has predictably cooled a number of offshore renewable projects, there is a palpable change regarding the way in which the world views renewable energy. Renewable energy projects, at one time merely serving as window dressing


Hellenic Ship Finances Look Up

Photo Credit: Iolcos Hellenic Maritime Enterprises

The overall Greek loans of Hellenic maritime companies and ship owners (drawn and committed but undrawn) rose to $64.019 billion by the end of 2014, 4.1% higher than the $61.498 billion of 2013. Petrofin Research in its latest annual research says that drawn loans are up by 2


Steamship Reports Strongest Results

Image: Steamship Mutual Underwriting Association

The Steamship Mutual Underwriting Association (Bermuda)  achieved a combined ratio of 78.6% for the 2014-2015 policy year, one of the strongest results in its 100-plus years of existence. Free reserves increased by US$75 million to US$376


Prepare for Growth, Oil Industry Told

Photo: BP

The North Sea oil and gas industry has been urged to buck the trend and prepare for growth in the near future.   Attendees at an event organized by subsea intervention and commercial diving specialists K.D. Marine in Aberdeen recently, heard an upswing in oil price was imminent and


CMA CGM Reports Increased Net Profit in Q1

17,722 TEU vessel CMA CGM Kerguelen was delivered to the group on March 31 (Photo: CMA CGM)

Container shipping company CMA CGM’s board of directors met under the chairmanship of Jacques R. Saadé, chairman and chief executive officer, to review the financial statements for the first quarter of 2015.   For the first quarter of 2015


Profit Quadruples for CMA CGM

Image: CMA CGM

 French container line CMA CGM’s consolidated net profit soared to $406 million in the first quarter from $97 million a year ago as the French carrier capitalized on efficiency gains, cost cuts and sharply lower bunker prices.  


Tanker Shipping's Fortunes Rest on US Shale Oil Production

How much US shale oil production is taken out of service will be a key driver of future tanker shipping earnings, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. Tanker operators are pinning their hopes on a rise in US crude oil imports


Study Shows Rise of Performance Monitoring

Dr Jan-Henrik Hübner (Photo: DNV GL)

Only about one third of shipping companies were aiming for energy savings of 5 percent or more, suggests the new DNV GL Energy Management study. It is based on the input of 80 shipping companies and includes ship managers, owners and operators in 24 countries.


Death Toll at 103 from Capsized China Vessel

The death toll from a Chinese cruise ship which capsized on the Yangtze River rose to 103 on Friday, state television said. China's Central Television said on its microblog that 339 people remain missing and only 14 survivors have been found.


Enforcement of Maritime Passenger Rights Regulation

Maritime passenger rights regulation

  The maritime passenger rights regulation entered into force on 12 December 2012. It made it possible for passengers to complain to the authorities about, for example, cancellations and delays. Until now, this has resulted in only a few complaints.


Container Shipping Capacity Threat for Profitability

Estimated average unit revenue, 1Q12-1Q15 (US$ per teu). Source: Drewry Maritime Research

 The rapid expansion of container shipping capacity this year threatens to reverse the strong profitability ocean carriers showed in the first quarter, Drewry Shipping Consultants Ltd said.   Carriers weathered a storm of low rates in the first quarter to deliver some of the best


UK Defense Club Reports Strengthened Financial Position

The UK Defence Club, the provider of FD&D (legal costs) insurance to the maritime industry, announced its financial results for the year ending February 20, 2015.   According to the club, highlights include 3,700 ships covered, total assets of £56






 
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