Japanese freight carrier Kintetsu World Express Inc is buying Singapore's APL Logistics for US$1.2 billion, paying a higher than anticipated price for an overseas deal at a time of slow domestic growth. Tokyo-headquartered Kintetsu Express said on Tuesday that it agreed to pay S$1.6 billion to buy all of APL's shares from its parent, Neptune Orient Lines (NOL). Its own capital and bank loans will be used to fund the deal, it said. The sale of APL Logistics to the Japanese company will enable NOL to concentrate on its core but troubled container-shipping business. The Singapore Company said the deal will “unlock the value of the logistics business for its shareholders and strengthen the financial position of the NOL Group”. NOL said the sale price is 15 times APL Logistics’ EBITDA [earnings before interest, tax, depreciation and amortization] of $80m last year, with KWE winning a competitive auction for the unit with the highest bid price – and reportedly beating competition from the likes of XPO Logistics and Korean company CJ Express – and one that is considerably above the current market average for acquisitions. The expected APL Logistics deal value is far higher than the US$750 million to US$900 million range that sources said Singapore-based NOL had been looking for
Hvide Marine/Sun State Christens New Ship Hvide Marine Incorporated (HMI) and subsidiary Sun State Marine Services, Inc., recently christened the first in a series of new cargo ships at its U.S. shipyard facility in Green Cove Springs, Florida. Constructed entirely on-site by Sun State Marine Services, Inc., the 190-foot 'landing craft' type freight vessel is specially designed and ideally suited for conducting trade with Bahamian and Caribbean markets that have minimal or unimproved
Based in Coos Bay Oregon, Sause Brothers Towing has been towing between Pacific Northwest and Southern Californian ports for over 50 years. A new double-hulled 105,000-barrel oil barge, Sunset Bay, is currently alongside at the company shipyard in Coos Bay. With the hull built at the Gunderson yard in Portland it is being outfitted by Sause. Also at the yard, the ocean going tug Powhatan is undergoing an extensive repower that will see a pair of 850 HP engines replaced with a pair of
Pilot Freight, worldwide transportation & logistics provider, picks up its seventh 'Ryder Transportation Management Carrier Quality Award'. Every year Ryder recognizes carriers through this award who demonstrate excellence in on-time performance, claims handling, customer service, technology applicants, economic value and innovation. The Ryder awards recognize excellence through a variety of metrics including: on-time performance, claims handling, customer service, technology applicants
CargoSphere, cloud-based global rate management solution and confidential Rate Mesh network for the ocean and air transportation and logistics industries, has announced the completion of Blu Logistics’ integration with CargoSphere’s freight rate management solution. Blu Logistics, a global logistics company offering sea and air freight services, customs brokerage, ground transportation, and warehousing, previously outsourced freight rate and contract management
As freight rates keep declining, cost reductions are the top priority for box carriers. Drewry’s 2Q14 Container Forecaster highlights that there is a widening gap between the positive financials of the few carriers really focused on cutting costs and the rest of the top 20 lines, as they battle with the pressure of falling freight rates. Drewry forecasts that once again, average freight rates will be lower than in the previous year
By David Tinsley, Technical Editor While catamaran and multi-hull vessel technology is increasingly being explored for its potential in high-speed military and logistical support applications, Rolls-Royce has unveiled a proposal for a fast naval sealift ship based on a monohull RoPax ferry design. The impulse for developing a vessel type with that rare combination of exceptional speed and relatively high payload capacity originates from the changing emphasis in military support
After a downtrend in the freight shipping tanker market since the middle of 2007, the industry has seen nothing but rate increases in the last month. This freight rate increase can affect consumers across the board, according to the freight transportation The cost of freight shipping can mean an increase in the cost of many consumer products, according to FreightBrokering.info, which is why it's so important to keep freight transportation costs down
Drewry Maritime Research, the global leader in freight rate benchmarking, has expanded its flagship Container Freight Rate Insight publication and now provides freight rate benchmarks on 550 international trade routes. Published monthly, the report provides all-in spot rates on all the key shipping routes of the world, including both headhaul and backhaul trades. In addition to the monthly report, subscribers also have access to an online database of both current and historical freight
CaroTrans, a leading global NVOCC (non-vessel operating common carrier) and ocean freight consolidator, today announces their U.S. West Coast port readiness program to address potential supply chain disruptions. Congestion and current labor issues are impacting the flow of cargo at U.S. West Coast ports and there is the likelihood of further instability. To address this infrastructure challenge, CaroTrans has developed alternative routing solutions to lessen the impact on supply
The container shipping market may find comfort in the fact that global volumes were up by 1.1% in the first six months of 2015. Following a disastrous first quarter, all three months of the second quarter posted year-on-year increases. Behind the headline, though
Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 17.3 percent to $259 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters.
Maersk Line CEO Soren Skou called for consolidation in the container-shipping industry, citing “extremely weak” demand growth amid steadily increasing capacity, says a report in the Wall Street Journal. Skou said sharing costs with partners would help keep freight rates
Deltamarin Ltd and Brevik Technology AS, a VARD affiliate, have joined forces to develop a novel multigas carrier design concept that combines the design of Deltamarin’s B.Delta and the new-generation patented cylindrical gas tanks by Brevik Technology.
The Federal Election is an important opportunity to boldly support the marine industry as a means to sustainable Canadian growth. During this election and post-election period, political leaders are urged to build upon Canadian domestic shipping for the Canadian economy and sustainable economic
Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 31 percent to $313 per 20-foot container (TEU) in the week ended on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters.
China's slower growth and economic transition will pose significant risks for the already struggling shipping sector, rating agency Fitch said. The shipping sector is already faces overcapacity, weak freight rates and stretched financials.
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
Ocean freight rates for cargo moving under contracts on the major East-West routes have seen a sharp reduction since the beginning of the year, according to Drewry’s Benchmarking Club, a closed user group of multinational retailers and manufacturers who closely monitor their contract freight
Nigeria's latest effort to combat theft could imperil its oil income lifeline, compounding the damage the crude price fall has done to its finances, access to dollars and imports. Oil traders and shipping brokers said a newly implemented "letter of comfort" requirement under which
Weak holiday demand to pressure rates lower. Rebound seen after China returns to market on Oct 8. Freight rates for capesize bulk carriers could come under pressure next week as lower cargo volumes due to holidays in China thwart shipowners efforts to push rates higher, ship brokers said.
UK P&I Club, a shipping protection and indemnity mutual insurers, and TT Club, an international transport, freight and logistics insurance provider, have welcomed the amendment to the Safety of Life at Sea Convention (SOLAS) from the International Maritime Organization (IMO) on the
Transatlantic eastbound chemical freight rates dropped slightly this week on a continued lull in the spot market, ICIS reports brokers as saying. It was the second drop in as many weeks. The latest SSY Base Oil Shipping Report noted that eastbound rates “took a tumble
Mideast crude freight to Japan highest since 2010. North Asian refiners have snapped up Russian crude oil loading in the last two months of this year to meet peak winter demand as Middle East and West African grades have become more costly after freight rates hit multi-year highs
Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.