Marine link
 

Freight Costs

Cosmo Lifts US, Mexican oil on Common VLCC

Japanese refiner Cosmo Oil has for the first time shipped U.S. condensate and Mexican crude on the same supertanker to reduce costs, industry sources said on Friday. U.S. condensate exports to Asia have slowed this year after West Texas Intermediate prices strengthened against Dubai crude, the Asian oil benchmark. Asian buyers have also faced high freight costs to ship oil from the Americas as shippers are reluctant to lease out their tankers on such long voyages. To reduce costs, Cosmo Oil is co-loading crude and condensate from the Americas onto a Very Large Crude Carrier which can carry up to 2 million barrels of oil. The Japanese refiner chartered the BW Opal, which loaded Mexican crude in early October, according to trade sources and Reuters shipping data. It then sailed to the U.S. port of Galveston later in October to load condensate. The journey to Cosmo's Yokkaichi refinery will take about 55 days, longer than the usual route as larger vessels cannot pass through the Panama Canal, a source familiar with the matter said. "The market is in contango so the time value has paid for some of the freight costs," he said. In a contango market, oil becomes more expensive in future months. Reporting by Florence Tan


A Call for Transportation Management Upgrades

Gerald Hoppe As Vice President and Product Owner Gerald is responsible for SAP’s solution package offerings for Logistics, R&D and Manufacturing Lines of Businesses. He holds a Degree in Computer Science & Business Administration from University of Mannheim.

Reduce the Headaches: The Need for an Upgraded Transportation Management System In 2009, the United States alone shipped more than 2.2 billion pounds of goods such as coal, crude materials like wood, sand and gravel, and primary manufactured goods (United States Census Bureau). Undoubtedly, this required complex logistical planning for companies shipping their goods and left many transportation managers with headaches


Baltic Exchange Shareholders Approve Singapore Exchange Takeover

Baltic Exchange shareholders on Monday approved an 87 million pound ($112 million) takeover by Singapore Exchange for one of London's oldest institutions, in a deal that will give SGX access to the multi-billion-dollar freight derivatives market. The proposed transaction, unanimously recommended by the Baltic's board last month, was approved by shareholders at a general meeting in the historic City of London. It will now need regulatory approval


U.S. Cargo Preference Billing

The Office of the Inspector General (OIG) of the Department of Transportation released a report stating that the Maritime Administration (MARAD) is required to reimburse the Department of Agriculture (USDA) for “excess” ocean freight costs that food assistance programs incur in order to comply with cargo preference statutes. There is a dispute between MARAD and USDA regarding how to calculate the amount owed. USDA recently billed MARAD $379 million in excess freight charges


Baltic Exchange Board Backs SGX Bid

The Baltic Exchange board has unanimously backed a takeover bid from Singapore Exchange Ltd , a deal that will give SGX access to a trading platform for the multi-billion dollar freight derivatives market.   On Aug. 4, SGX offered shareholders in London's privately owned Baltic Exchange 160.41 pounds in cash per share, for a total 77.6 million pounds ($102 million), and urged them to back the deal.   The exchanges have agreed on the terms of the SGX offer


Submarines As Ore Carriers?

Russia'sNorilsk Nickel - a big metal producer -- has finished a feasibility study of a project to use nuclear submarines for ore shipments, which once started will cost $80 million, Norilsk's chairman said. "The feasibility study has been prepared and now the board of directors has to approve spending of up to $80 million for its implementation," Yuri Kotlyar said. "But even then the decommissioning of the submarines should be sanctioned by the state."


CaroTrans Assures Seamless Transport on US West Coast

CaroTrans Logo

  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


Cheap Freight Erodes Thai, Australian Sugar Export Advantage over Brazil

Cheap freight is eroding Thai and Australian sugar exporters' competitive advantage over Brazilian suppliers to Far Eastern markets, traders said on Thursday.   Thai raw sugar for March/April shipment was quoted at 25 points ($0.25/lb) over ICE March futures, compared with 10 points over March for Brazilian supplies.   Cheap freight costs mean that Brazilian export offers are almost as competitive as Thai offers in China, the world's top sugar buyer


Cheaper Fuel to Boost Container Shipping

Photo: Tanner Matheny

Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container shipping companies deal with the volatility in fuel prices by adding a separate bunker adjustment factor or fuel surcharge to their freight rates. Fuel can account for more than 60 percent of the total operating costs of moving freight across the oceans so the surcharges are one of the most important elements of total


Half of Hanjin Boxships Denied Port Access

A Hanjin Containership at Sea (Credit: Hanjin)

Of 98 container ships, 44 blocked from ports. U.S. firms take legal action over unpaid bills. Roughly half of Hanjin Shipping Co Ltd's container vessels have been blocked from ports since the South Korean firm's collapse, putting manufacturers and their customers increasingly on edge about the fate of cargo and spikes in freight costs. Woes for world's seventh-largest container shipper have only deepened since its banks withdrew support and it filed for court receivership this week


Toll to Build Two New Ships

Photo:  Toll Holdings Limited

Toll Group announced it is investing $170 million to build two new ships to support trade between Victoria and Tasmania and to meet the demands of continued growth.   The new, purpose-built ships, operating between Burnie, Tasmania and Melbourne, Victoria


AAPA Commends Senate Leadership For WRDA Passage

AAPA President and CEO Kurt Nagle

The American Association of Port Authorities (AAPA) today lauded leaders of the Senate Committee on Environment and Public Works (EPW) and the Senate’s Transportation and Infrastructure (T&I) Subcommittee for their success in advancing S


More Collapses, M&A Will Follow Hanjin, Warns Flitch

Photo: Hanjin Shipping

 Korean Hanjin Shipping's filing for receivership reflects an unsustainable supply-demand imbalance in container shipping, Fitch Ratings says.    "We expect more defaults and M&A activity in the short and medium term but these will only restore equilibrium and boost


CMA CGM Posts Loss in Q2

Photo: CMA CGM

 Ocean Carrier CMA CGM reported a net loss of $128 million for the second quarter of 2016, compared to a net gain of $156 million for the second quarter of 2015.       Its revenue declined to $3.5 billion ($3.3 billion excluding the contribution from Singapore’s Neptune


Freight Rates Spike after Hanjin Collapse

File image (DP World)

The cost of transporting containers from ports in Asia to Northern Europe and the United States jumped this week after the collapse of South Korean Hanjin Shipping Co Ltd. Container spot freight rates on the world's busiest routes from Asia to Northern Europe jump 36


44 Hanjin Ships Denied Access to Ports

Photo: Hanjin Shipping Co Ltd

 Some 44 of Hanjin Shipping Co Ltd's ships have been so far denied access to ports while 1 ship has been seized, Reuters reports quoting a company spokeswoman.   The 44 ships include instances where port service providers such as lashing firms have denied service


Dry Bulk Shipping Outlook Good

Graph: BIMCO

 The dry bulk commodity imports into and exports out of China we have seen in the first half of 2016 are very positive – and nothing short of extraordinary, says BIMCO.   But, putting it into perspective, compared to the devastating freight rate levels over the same period


More Hanjin Ships Seized, Box Rates Surge & Shippers Fret

About 10 Hanjin vessels effectively seized at China ports; Court says plans to start rehabilitations proceedings soon. Hanjin Shipping Co Ltd vessels have been seized at Chinese ports in the wake of the South Korean firm's collapse, further roiling the industry as freight rates jump and


Growth in the Leased Container Equipment Fleet to Slow

Source: Drewry Maritime Research

 Following markedly slow growth of just 3.5% in 2015 due to decreased rental demand, the global leased container equipment operating fleet is forecast to increase by little more than 1% in 2016, according to the latest edition of the Container Leasing Industry Annual Report 2016


Hapag-Lloyd: UASC Merger Benefits to show in 2017

file image (Credit: Hapag Lloyd)

German container shipping line Hapag-Lloyd expects to reap a third of targeted annual synergies of $400 million from the planned merger with Arab rival UASC already next year, chief executive Rolf Habben Jansen told investors on Friday. Addressing a shareholders meeting which will decide on


Asia’s Biggest Container Shipper Posts Loss

Photo: China COSCO Holdings Company Limted

 Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn net profit seen during the same period last year as excess capacity dragged down cargo rates.  


Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects demand for commodities to pick up this year. Africa's biggest shipping group, which is present in 37 countries worldwide


BG Freight Line Orders Four Containerships

Image: BG Freight Line

BG Freight Line, a fully owned subsidiary of Peel Ports Group, is to receive new tailor-made short sea container feeder vessels optimized for the company’s Irish Sea Hub services.    The new class of ‘green’ vessels has been developed by BG Freight Line operation with


Vizag Port Mulls Major Expansion

Photos: Visakhapatnam Port Trust

Vishakhapatnam Port is poised for major expansion, with the Minister for Shipping, Road Transport and Highways Nitin Gadkari inaugurating several projects during his visit to the port, says government press release.    The Minister inaugurated a Container Freight Station of 1 lakh TEU


Wave goodbye to $50 bln - Drewry

Figure 1 Estimated industry revenue, 2008-16F (USD billion) Note Preliminary forecast based on smaller 1H16 sample

Container industry revenues are contracting faster than carriers can cut costs. First-half results so far suggest sales are down by around 18%, increasing the pressure to reduce costs. The container shipping industry is currently enduring a severe revenue contraction that is placing carriers






 
rss feeds | archive | privacy | history | articles | contributors | top news | contact us | about us | copyright