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
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 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
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
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
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, 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 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
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
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
The cost of operating cargo ships has fallen for two successive years but is forecast to rise in 2017 and beyond, according to the latest Ship Operating Costs Annual Review and Forecast 2016/17 report published by global shipping consultancy Drewry.
Freight ferry company Seatruck is reporting growth of more than 18pc in 2016 consolidating its position as the fastest growing operator on the Irish Sea, as more hauliers switch to its services. Seatruck chief executive Alistair Eagles said freight levels are also up 30pc in November 2016
In this white paper, Drewry consultants investigate the drivers behind the accelerating use of new e-business models and online platforms in international shipping transactions and assess the implications for freight forwarders, ocean carriers and those investing in the technology and
India is trying to boost sales of its low-quality coal by offering more of the fuel at home and initiating steps to lower freight costs, while global prices are high, with the government hoping the moves will help cut imports. State-controlled Coal India
Maritime Strategies International (MSI) is forecasting a firm festive season for the dry bulk market, swiftly followed by a New Year comedown. In its latest Dry Bulk Freight Forecaster* MSI notes that after a steady fall in average daily TCE spot earnings in October
Weakness in freight rates will increase tanker shipping demolitions over the next two years, with the trend accelerating in later years as a result of the IMO regulation on ballast water, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry.
European oil traders rushed on Tuesday to book vessels to carry gasoline to consumers on the U.S. East Coast left stranded without their main domestic supply source, more than quadrupling shipping costs, traders and ship brokers told Reuters.
U.S. Transportation Secretary Anthony Foxx today announced that the U.S. Department of Transportation’s Build America Bureau is now soliciting applications for up to $850 million in Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies
China COSCO Holdings , owner of the world's fourth-largest container shipping fleet by capacity, warned of a loss for the year on Friday as it failed to capitalise on a market recovery in the third quarter. Slowing global trade had saddled the sector with a glut of container ships
Freight rates for large capesize dry cargo ships on key Asian routes, which fell to an eight-week low on Wednesday, are likely to continue to slide next week as charterers drip-feed cargoes in an over-tonnaged market, brokers said on Thursday.
The recent rally in Asia to Europe spot market rates has improved carriers’ chances of securing higher 2017 contract rates. How much extra will shippers have to fork out? It has been another typically volatile year as far as the spot freight rate market (i.e
International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015. This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction
Hanjin’s receivership represents the trough of the container shipping market and despite continuing concerns of weak trade growth and fleet oversupply a gradual market recovery is now expected, according to the latest annual Container Forecaster and Review 2016/17 report published by global
CMA CGM informed its customers that the collection of Terminal Handling Charges (THC), which was introduced in Ghana on July 20th, 2016, has been temporarily suspended, effective October 4th, 2016. CMA CGM will communicate on the resumption in due course.
The European Union's securities markets regulator has dropped proposals to make participants in the multi-billion dollar commodity derivatives market for freight rates disclose knowledge of loading conditions, the Baltic Exchange said.