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
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
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
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
Brazil hopes that during a visit by Chinese President Xi Jinping it can boost ties with its biggest trade partner beyond the exchange of commodities for manufactured goods, but that may be wishful thinking. Accords China will sign with Brazil when Xi meets with President Dilma Rousseff on Thursday focus on improving infrastructure to make sure raw materials China is hungry for make it to port, with railways a top priority.
3rd U.S. condensate export cargo heading to Singapore; Pioneer expects exports to rise to 50,000 bpd next year. Eyes exports of bigger cargoes to reduce freight costs. Pioneer Natural Resources plans to double its U.S. exports of condensate, an ultra-light oil, to 50,000 barrels per day (bpd) next year, its chief executive said on Monday. The U.S. shale resources explorer, along with Enterprise Product Partners LP, received the green light from the U.S
Asia petrochemicals firms are building tanks and retooling plants to store and process liquefied petroleum gas imported from the United States, counting on a flood of supply from the shale boom to replace costlier naphtha as a raw material. Samsung Total Petrochemical, LG Chem and Royal Vopak are among a number of companies in Asia expanding import terminals or retrofitting plants over the next one to two years as they buy more LPG
SeaBridge Freight, Inc. of Jacksonville, FL announced that it will launch its “marine highway” short sea transportation service on December 1, 2008. SeaBridge Freight will initiate its bluewater container-on-barge operation between the Port of Brownsville, TX and Port Manatee, FL. The Company’s 600 TEU capacity barge (approximately 300 truckloads) will link the large and growing Texas/Mexico and Southeastern U.S. markets.
The global breakbulk and heavy-lift markets have had to navigate choppy waters in recent years. Not necessarily due to a shortage of freight, but as a consequence of unsustainably low freight rates. The global economic recovery since 2009 has been slow
Despite challenging market environment with freight rates reaching historic lows in several key trades, ZIM Integrated Shipping Services continues to outperform the average adjusted EBIT margins in the Industry. ZIM Integrated Shipping
The global steel company SSAB and Aspo Group’s ESL Shipping Ltd have signed a long-term frame agreement covering sea freight for SSAB’s inbound raw material sea transport within the Baltic Sea and from the North Sea.
The CMA CGM's move to buy Singapore’s Neptune Orient Lines (NOL), could lead to one of the biggest acquisitions in the shipping container industry in years. If it goes through, NOL and CMA's merger would be the biggest container shipping deal in years
In a container freight market challenged by volatility and facing the prospect of further consolidation, member shipping lines in the Transpacific Stabilization Agreement (TSA) have announced a phased increase in rates and a package of 2016-17 service contract guidelines intended to ensure
At its meeting in New York on November 20, the American Club’s board resolved to levy a general premium increase of 2.5 percent for P&I cover, but no increase in the cost of FD and D for the 2016 policy year. The club’s board also reviewed release call requirements for open policy
In third-quarter 2015, CMA CGM once again outperformed the market average in an industry shaped by a sharp fall in freight rates and overcapacity in certain markets. Freight rates were especially weak on certain lines, including Asia-Europe
France's CMA CGM, the world's third-largest container shipping firm, said freight rates should recover next year after a market downturn led to a sharp fall in its third-quarter profits. The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk
A slump in dry bulk shipping is set to worsen as the meltdown in global commodities and too many ships free for hire rock the sector used by investors to gauge the health of world trade. Slower coal and iron ore demand from China - the world's biggest industrial importer - have battered
Shipping freight rates for transporting containers from ports in Asia to Northern Europe plunged by 27.9 percent to $295 per 20-foot container (TEU) in the week ending on Friday, one source with access to data from the Shanghai Containerized Freight Index told Reuters.
Record high freight rates are creating more headaches for traders looking to house millions of barrels of unsold crude oil and who already face potential losses due to record high stocks. They have to decide on whether to use tankers for longer term storage until they can sell their
Capesize market could worsen in short-term; 3.5 mln tonnes could be cut from Brazil ore exports. Freight rates for capesize bulk carriers could drift lower next week as Brazil's Samarco iron ore mine disaster and uncertain ore demand from China weigh on cargo volumes, brokers said.
Peel Ports has today (Thursday 19 November) announced that it has secured 50 advocates for its Cargo200 initiative and is urging other shippers in the North-west to add their weight to the campaign. Launched in May, Peel Ports called for importers and exporters whose goods began or ended
The cost of operating cargo ships is forecast to rise over the next two years after falling in 2015, according to the latest Ship Operating Costs Annual Review and Forecast 2015/16 report published by global shipping consultancy Drewry.
India and Bangladesh have signed the standard operating procedure (SOP) to launch the ‘Agreement on Coastal Shipping’, which is expected bring down the logistic costs of export-import cargo between the two countries.