VLCC Rates to Remain Weak on Output, Tonnage Woes
Freight rates for very large crude carriers (VLCCs), which fell to a near six-month low on Thursday, will remain weak until the Asian refinery maintenance season gets completed, starting April-end. "I haven't seen a collapse in rates like this for some time. People are taking insane rates," said Ashok Sharma, managing director of ship broker BRS Baxi in Singapore. Output cuts by oil producers, refinery maintenance in Asia and the reactivation of older vessels previously used as…
IMO Contributes to Meeting of Asia-Pacific Ship Safety Heads
International Maritime Organization (IMO) is participating in the annual gathering of Asia Pacific Heads of Maritime Safety Agencies (APHoMSA) in Langkawi, Malaysia (20-24 March). Participants from 24 IMO Member States as well as observers from IALA, IHO and SPC are taking part in discussions surrounding APHoMSA's work to promote safe, secure shipping and a clean marine environment within the Asia-Pacific region. The event coincides with the Langkawi International Maritime and Aerospace Exhibition 2017 week…
Singapore Approves Japan Shipping JV
The Competition Commission of Singapore (CCS) has given the nod to a proposed joint venture between three Japanese shipping lines. Japan’s big three shipping groups, Kawasaki Kisen Kaisha (K Line), Mitsui OSK Lines (MOL) and Nippon Yusen Kaisha (NYK), announced last year an integration of their container shipping business with the establishment of a joint venture by 1 July 2017 and the commencement of joint servce from 1 April 2018. Under the JV, the Parties will merge their container liner shipping business, and their container terminal services businesses outside Japan.
Thailand Boosts LNG Imports
Thailand is signing new contracts for LNG purchases and expanding terminals to boost imports to replace flagging domestic production, Bloomberg reported. Southeast Asia’s second-largest economy will boost LNG imports by more than 70 percent this year. The report said that the country is doing everything it can to facilitate increased LNG imports to replace the declining domestic production. These include expanding the existing terminals. Producers of the fuel are expected to expand…
Asia Tankers-VLCC Weighed by Excess Tonnage
MidEast, West Africa rates diverge; oil output curbs in Iraq and West Africa could weigh on tanker market. Freight rates for very large crude carriers (VLCCs) are likely to remain under pressure with hire rates from the Middle East to Asia tracking lower in the face of excess tonnage in the market, brokers said. Cuts in the output from Iraq and West Africa this month as part of an agreement between oil producers to curb crude production to bolster oil prices are also expected to weigh on the tanker market as the number of voyages are curtailed, brokers said.
Containership Scrapping: Sizing Up The Suspects…
Last year saw a record level of boxship demolition, and this rapid pace of scrapping was sustained into early 2017 with a record monthly level of boxship recycling recorded in January and nearly 0.2m TEU scrapped so far this year, Clarksons Research reported. In 2016, a record 194 boxships of 0.65m TEU were demolished, and several key themes were evident. A key component of scrapping in 2016 was ‘old Panamax’ vessels, following the opening of the new locks at the Panama Canal in June 2016. Nearly half of capacity scrapped in 2016 was accounted for by ‘old Panamax’ units.
Mega 20,150 TEU Containership Named MOL Triumph
A new 20,150 TEU containership has captured the “world’s largest” title: MOL Triumph, the first in a series of new mega containerships for Japan’s Mitsui O.S.K. Lines, Ltd., (MOL) was named at Samsung Heavy Industries, Ltd.’s (SHI) Geoje, South Korea shipyard. MOL Triumph is the first of four 20,000 TEU class ultra-large container carriers ordered by MOL in February 2015 to be built by SHI for 2017 delivery. Each surpasses the record setting 19,000+ TEU vessels built by Daewoo Shipbuilding & Marine Engineering (DSME) for Mediterranean Shipping Company (MSC)…
Asia Tankers-VLCC Rates Falling as Tonnage Outweighs Demand
Freight rates for very large crude carriers (VLCCs), which fell to five-month lows this week, are set to drop further as excess tonnage and an absence of port congestion weigh on the market, brokers said. Supertanker charter rates, which are already below the breakeven levels for ship owners, could fall further due to new vessel deliveries, reactivation of older vessels from offshore crude storage, crude oil output cuts and refinery maintenance, brokers said. That will add to the volume of available tonnage as demand for cargo declines.
Banking on US Shale Gas Boom, Asia Petrochemical Firms Switch to LPG
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. The gas is used by petrochemicals firms to make a broad range of consumer and industrial plastics. Asian petrochemicals firms have traditionally used naphtha as a raw material. They are now switching to LPG because rising U.S. supplies have pushed prices below those of both naphtha and LPG from their main supplier, the Middle East.
India to be Global Hotspot for Cruise Shipping
The government of India is working on a policy to make India a global destination for cruise shipping and efforts are on to identify such circuits, besides a slew of steps, to boost infrastructure, Shipping Minister Nitin Gadkari has said. According to a report by Press Trust of India, a high-level task force has been appointed and top global consultants are drawing up blueprint for it. Five circuits each are being identified for international and domestic cruise services and a report is likely by May this year.
Geodis Wilson Appoints New Cluster MD
Geodis Wilson announced the appointment of Rene Bach-Larsen as Cluster Managing Director of Singapore and Southeast Asia. Looking forward to his new role of developing Geodis Wilson’s business in one of Asia’s most dynamic economical hubs, Rene said, “The Southeast Asia market—Singapore, Indonesia, Malaysia, Thailand and Vietnam—is certainly often overlooked as a growth area because of its modest size compared to the biggest players China and India. However, from a global perspective, it is actually a key area. It has weathered the global recession well and is experiencing rapid growth.
Wall Named MD of RichLand-LSP
RichLand-LSP strengthens chemical logistics business unit with appointment of Graham Wall as Managing Director; Singapore-based logistics solutions provider looks to expand in South-East Asia region under new leadership. Leading chemical logistics solutions provider RichLand-LSP has appointed Graham Wall as Managing Director as it looks to expand its bulk liquid chemical transport operations throughout South-East Asia. Mr Wall brings 25 years of chemical logistics experience…
GustoMSC Debuts Self-propelled Cantilever Jack-up
The NG-5500X-LD is the latest design in GustoMSC’s series of self-propelled jack-up designs, the NG series. Based on the NG-2500X and NG-1800X designs, the NG-5500X-LD is a solution for light drilling and well intervention in a large number of mature fields in the Southern North Sea, Middle East and South East Asia. The conditions of these fields are characterized by water depths of up to 50 to 80 meters pending the region, traditionally the domain of classic drilling jack-ups and tender barges.
Singapore Supports ReCAAP ISC’s Roadmap for the Future
Singapore endorsed the roadmap and strategies to strengthen Regional Cooperation Agreement on Combating Piracy and Armed Robbery (ReCAAP) Information Sharing Centre (ISC) as a Centre of Excellence for Information Sharing on piracy and armed robbery against ships in Asia by 2020. Singapore, as a Contracting Party to the ReCAAP and host to the ReCAAP ISC, has participated in the 11th Governing Council meeting held from 14-16th March 2017. The Roadmap was the result of several rounds of consultations and discussions amongst Governors…
CMA CGM Group Takes Delivery of Corte Real
CMA CGM Group took delivery this morning, Monday August,16th, in South Korea of the CMA CGM Corte Real (13,830 teu) built by DSME (Daewoo Shipbuilding and Marine Engineering), the third of a series of eight vessels named after the great explorers. CMA CGM Corte Real (365 meter long, 51,2 meter large and 15.5 meter draught) is up to date the largest vessel sailing under the UK flag, a European flag which is part of the white list of the “Paris Memorandum of Understanding on Port State Control” a guarantee of safety, security and environmental protection. The vessel will join the CMA CGM Christophe Colomb and CMA CGM Amerigo Vespucci on the FAL5 service (French Asia Line) linking Asia to North Europe.
Interview: Tan Sri Kt Lim, Chairman, Genting Hong Kong
Last year Genting Hong Kong acquired shipbuilding capacity in Germany. When and why was the decision made to become a shipbuilder? With the rapid growth of the world cruise industry, especially in China, this has led to cruise ship order book reaching an all-time high, with orders placed as far out as 2026, nearly 10 years from now. In order to ensure that the company can build the required number of cruise ships for three brands in the next decade, it is strategic that we acquired…
Global Shipbuilding to Turn Around in 2017: Castrol
Despite a marginal deterioration in the growth outlook for the global shipbuilding industry, annualized five-year growth rates for the sector are still forecast to reach a healthy 3 to 5%, before picking up substantially after 2017, says Castrol Marine Trade Barometer. The Barometer predicts that growth will be driven largely by the Asia-Pacific region, but also Latin America and the Middle East. All European nations but the Netherlands face a downward trend until 2017. Mandhir Singh, COO at Castrol, says, “The main growth in shipbuilding will come from AsiaPacific countries to 2019.
Carl Vinson Strike Group Arrives in the Republic of Korea
Aircraft carrier USS Carl Vinson (CVN 70), embarked Carrier Air Wing (CVW) 2 and Arleigh Burke-class guided-missile destroyer USS Wayne E. Meyer (DDG 108) arrived in Busan, Republic of Korea (ROK) for a scheduled port visit, March 15. The Carl Vinson Strike Group completed two weeks of routine operations in the South China Sea and will continue on their regularly scheduled Western Pacific deployment after departing Busan. Assets from the USS Carl Vinson Carrier Strike Group and…
Fleet Growth: Private Trends And Public Developments
According to Clarksons Research, the world fleet has experienced a sustained period of growth during the last decade, with owners based in the Asia/Pacific region responsible for the largest share of this expansion. However, since the start of 2014, European owners have regained market share. Whilst European fleet growth has traditionally been driven by private owners, recently it has been public companies growing at the fastest rate. Since the start of 2014, the European owned fleet has grown by 49.4m GT, accounting for 51.6% of global fleet growth.
ARL Strengthens Asian Presence
Rolf G. Oetter, Founder and President of Albacore Research Ltd (ARL), and Dr. Oskar Lee announced the official launch of ARL Asia Pte Ltd (ARL Asia) as solutions provider and training and technical center for ARL’s ShipConstructor software in Asia. ShipConstructor is the powerful AutoCAD based 3D product-modeling software for the design and fabrication of ships and offshore structures. As Director of ARL Asia, Dr. Lee will provide CAD/CAM system integration in the Asia Pacific region for all ShipConstructor clients, with the aim to co-ordinate sales and technical support. To aid this effort, ARL Asia has enhanced its website (www.shipconstructor.com.sg) to provide full product, training and exhibit information for ShipConstructor’s Asia-based clients. “Under Dr.
Kull Named President of Torqeedo Group
Marcia Kull has been named President of Torqeedo Group, Inc., and will direct global sales and strategy for the electric and hybrid marine propulsion systems manufacturer. Kull will oversee Torqeedo’s growth activities in the Americas, EMEA and Asia-Pacific regions. The newly created position is an expansion of the current management team. She will assume her new role on May 1, 2017. Kull joins Torqeedo from Volvo Penta of the Americas, where she was most recently Vice President, Marine Sales.
Hapag-Lloyd Says Prospects Buoyed by Rising Freight Rates
German container shipping company Hapag-Lloyd expects increased operating earnings this year, it said on Friday, citing a rise in freight rates as market conditions improve. The shipping industry has been grappling with a prolonged downturn brought about by overcapacity in a faltering global economy, but Hapag Chief Executive Rolf Habben Jansen pointed to signs of upward momentum. "We expect some market improvement in 2017, but our success will largely depend on our ability to achieve more sustainable freight rates," he said.
Royal Caribbean Anchors In Asia
Royal Caribbean Cruises Ltd. announced the opening in Singapore of its Asia-Pacific headquarters - Royal Caribbean Cruises (Asia) Pte. Ltd. The regional headquarters, which is located in Singapore's central business district, will support the marketing efforts in the Asia-Pacific region for three of the company's cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Cruises. Headed by Rama Rebbapragada, managing director for Asia Pacific, the office also will provide sales and trade support in the region. With the number of cruise guests sailing in the Asia-Pacific region projected to grow by more than 40 percent, from 1.07 million in 2005 to 1.5 million by 2010, the opening of Royal Caribbean's Asia-Pacific regional office is strategically timed.