Marine Link
Sunday, February 26, 2017

CMA CGM Hires Diana Containerships’ M/V Rotterdam

Rotterdam. Photo: Diana Containerships Inc

Diana Containerships has announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with CMA CGM S.A., Marseille, for one of its Post-Panamax container vessels, the m/v Rotterdam. The gross charter rate is US$6,890 per day, minus a 3.5% commission paid to third parties, for a period of minimum eight (8) months to maximum eleven (11) months. The charter is expected to commence on March 7, 2017. The “Rotterdam” is a 6,494 TEU container vessel built in 2008.

Boxship Firms Sign up with Alibaba

File Image: A CMA CGM boxship condusting cargo operations alongside (CREDIT: Marad)

Two container shipping lines, France's CMA CGM and Israel's Zim, have signed up with Alibaba to allow customers to book space on their vessels through the Chinese e-commerce giant, in a bid to boost sales as the sector battles a severe downturn. Container lines, facing their worst ever downturn due to a glut of ships and weaker demand, are pursuing several measures such as vessel-sharing arrangements or mergers and acquisitions to ride out the current slump. A growing number of logistics firms are going online to buoy their business.

Charting the Consolidation of Container Shipping

Graph: Clarksons Research

Last year saw a huge amount of change in the under pressure container shipping sector, according to Clarksons Research report. In particular, the ongoing consolidation of the sector in one form or another grabbed the headlines. To put this into context, it’s interesting to see how the level of consolidation relates to other parts of shipping, how it has developed over time and how it might progress looking forward. It’s quite clear that the shipping industry is a fairly fragmented business.

MSC Mulls Stake in Messina

The world's no. 2 container line Mediterranean Shipping Company (MSC) is in talks to acquire a stake in smaller Italian counterpart Messina, the Swiss-headquartered group said, in another sign of consolidation in the sector. Container lines are battling their worst ever downturn due to a glut of ships and weaker demand - prompting rivals to form vessel-sharing arrangements or pursue other measures including mergers and acquisitions. Privately owned MSC said it had held a meeting on Friday in Genoa with Messina and senior management from lender Banca Carige. "The aim of the meeting was the possibility of an entry by MSC Group into the shareholding of the Genoa-based group," MSC said in an emailed statement sent on Tuesday.

IMO Training in Malaysia

Photo: International Maritime Organization (IMO)

An International Maritime Organization (IMO) training in Malaysia has seen port State control officers practice inspecting air pollution and energy efficiency rules aboard a container ship in Johor Port. The participants from across Malaysia have been taking part in the three-day workshop (13-15 February) focusing on how to effectively enforce IMO’s MARPOL Annex VI regulations. The interactive workshop included class-based lectures and exercises, as well as practical training on board…

Containership Deliveries: Turning A Corner?

Graph: Clarkson Research Services

Containership deliveries changed course in 2016, toppling from the record level of 1.7m TEU in 2015 to reach just 0.9m TEU, having previously increased each year between 2011 and 2015, says a report from Clarkson Research Services. If deliveries remain at these slightly more moderate levels in coming years, this could potentially herald a new era of less robust fleet growth in the boxship sector. The dramatic slowdown in boxship deliveries last year, alongside record levels of demolition, led to fleet growth of just 1.2% in 2016, down from 8.1% in 2015.

Davao Terminal Outfits with Navis

Photo: Navis

Navis and Davao International Container Terminal (DICT) announced that the terminal has gone live with the Navis N4 terminal system. Navis is a part of Cargotec Corporation and provider of operational technologies and services that unlock greater performance and efficiency for the world’s leading organizations across the shipping supply chain. Since opening its gate in 2013, DICT has partnered with Navis to improve operational efficiency and the successful implementation of N4 has supported DICT’s growth as the most modern terminal in the Philippines.

Marine Propulsion Market Poised for Growth -Report

Photo: MAN Diesel & Turbo

The marine propulsion engine market was valued at $9 billion in 2015 and is projected to reach $12 billion by 2022, growing at a CAGR of 4.1 percent from 2016 to 2022, according to a new report published by Allied Market Research. Diesel propulsion system segment is expected to maintain its dominance throughout the forecast period. Asia-Pacific accounted for the highest share of 51 percent in 2015, and is anticipated to maintain this trend. Increase in production and sales of ships globally and rise in international seaborne trade drives the market growth.

Maersk Expects Healthier 2017 for Shippers

Photo: Maersk Line

Bloomberg quoted Robbert van Trooijen, APAC CEO of Maersk Line, saying that the current year (2017) will be more profitable than the last. Post-Hanjin, ocean freight customers now stressing stability and avoiding risk to supply chains, not just rates, he said. "The bankruptcy of South Korea's Hanjin Shipping and a consolidation in the container shipping industry will pave the way for a better year for the industry," he told the international news wire. Maersk Line is seeing a…

APM Terminals Boosts Investment in Port Elizabeth

Photo: APM Terminals

APM Terminals has significantly increased its previously announced USD $70 million investment plans for the APM Terminals Port Elizabeth facility, and now plans an investment total of USD $200 million. This figure includes ordering four next-generation Ship-To-Shore (STS) cranes to handle ultra-large container ships (ULCS) at North America’s second-busiest port complex. These vessels are expected to start calling the port right after the heightening of the Bayonne Bridge is completed later this year.

Diana Containerships Reports 4Q Loss

Photo: Diana Containerships Inc

Greece-based Diana Containerships has reported a net loss of $8.5 million for the fourth quarter of 2016, compared to a net loss of $8.8 million for the respective period of 2015. On a per-share basis, the company said it had a loss of 92 cents. Losses, adjusted for non-recurring costs, were 66 cents per share. The loss for the fourth quarter of 2016 includes $2.4 million of direct sale and other charges associated with the disposal of one vessel, without which the result for the quarter would have been a net loss of $6.1 million.

Containership Scrapping Maintains Record Pace

File photo: IMO

Containership demolition has reached an all time high, providing a positive surprise for the struggling container shipping sector. “The demolition activity in the last three months’ surprised BIMCO positively and it exceeded our initial expectation based on the appalling 2015 demolition activity,” said BIMCO’s Chief shipping analyst Peter Sand. “It is important that the demolition of excess capacity comes sooner rather than later, as there is still a huge delivery schedule hanging over the container shipping industry for the rest of this year and well into 2017-2018,” Sand said.

Diana Containerships Charters Post-Panamax to Hapag-Lloyd

Photo Diana Containerships

Diana Containerships Inc. today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Hapag-Lloyd AG, Hamburg, for one of its Post-Panamax container vessels, the m/v March, for a period of minimum nine (9) months to maximum fourteen (14) months. The gross charter rate is US$1 per day for the first 15 days of the charter period and US$6,850 per day for the balance period of the time charter, in each case minus a 1.25% commission paid to third parties. The charter is expected to commence on February 23, 2017.

Korean Yard to Build World's Largest Container Ship for CSCL

Shipyard workers: File picture

Hyundai Heavy Industries (HHI) say they have begun building the first of five 19,000 TEU container ships for China Shipping Container Lines (Hong Kong). HHI explain that the shipowner upgraded the original order for five 18,400 TEU containerships to ones capable of delivering 600 more containers, and thus these new ships will be the largest container ships ever built they claim. The new container ships will feature 77,200 bhp electronically-controlled main engines which will maximize fuel efficiency…

Hong Kong Ready for Mega Containerships

The Hong Kong Marine Department announced that the port is ready to handle the next generation of container vessels. Hong Kong port is capable of receiving the next generation of container vessels and Kwai Chung's alongside water depths are currently adequate to meet navigational requirements of large containerships, a spokesman for the Marine Department said. The assessment was reflected in a study, “Yesterday Evening and Tomorrow Morning of Container Fleet” conducted by the Marine Department earlier. The study confirms that Kwai Chung is able to serve not only large containerships currently in service, but also those expected to be in operation within the next few years.

North America Dominates Global Container Shipping Market

Pic by China Shipping Container Lines

In terms of geography, North America dominates the global container shipping market . This is due to improved transportation services in this region, says a report from Persistence Market Research. The U.S. represents the largest market for container shipping followed by Canada in North America. In Europe, Germany, the U.K., Spain, Italy, and France hold the major share of the container shipping market. Asia is expected to witness high growth rates in the next five years, as many companies are constructing manufacturing facilities in this region.

MHI Kobe Shipyard’s Receives Orders

Mitsubishi Heavy Industries, Ltd. (MHI) has received consecutive orders for large size container ships from the Evergreen Group of Taiwan, one of the leading container transportation operators in the world. Since 1992, MHI has received orders for 38 container ships from Evergreen without a break, of which 32 ships have either been built, or are to be built at MHI’s Kobe Shipyard and Machinery Works, and six at Nagasaki Shipyard and Machinery Works. MHI Kobe has marked the launching of the 30th container ship for Evergreen on February 5, and christened as Hatsu Excel. Among Japanese shipbuilding companies, only MHI has recorded consecutive orders for 38 large size container ships from one ship owner.

Containerships Rebrands South Baltic Services and Agencies

Containerships is rebranding the South Baltic services and agencies built up under the Kursiu Linija name. From February 1, 2007 all Kursiu Linija services will be operated under the Containerships name. Containerships will also have its own agents in Lithuania and Latvia, under the names of Containerships Lithuania and Containerships Latvia. These replace UAB Arijus and Kursiu Linija Latvia. The Finland, Russia, Poland, Sweden service has also been enhanced from January 30, when the Carina made its first call in Klaipeda. She will add in Klaipeda into her rotation, which will then be: Helsinki - St. Petersburg - Klaipeda - Gdansk - Sodertalje.

Maersk Line posts $376 mln Loss

Courtesy Maersk Line

Maersk Line reported a 2016 result that is USD 1,679 million lower than the 2015 result (USD 1,303 million). The overriding reason for the loss is a 19% decline in freight rates compared to 2015. Revenue was USD 20.7 billion, which is 13% lower than 2015 (USD 23.7bn). Volumes were 9.4% higher as Maersk Line was able to win a significant market share. All trades contributed hereto with largest increases in the East-West backhaul (19%) and North-South head haul (7.3%). By the end of 2016, Maersk Line’s total capacity had grown 9.4% compared to the end of 2015.

Shipbuilding Company to Stay Busy Until 2012

Taiwan's CSBC has received orders for 11 container ships, which boosts CSBC's total orders to 67 ships, enough to keep CSBC busy until 2012, the company said on Tuesday. On Monday, CSBC signed a contract to build seven container ships for Taiwan's Yangming Marine, CSBC President Fan Kuang-nan told Deutsche Presse-Agentur dpa. The order, worth 800m, is for five 8,240-TEU container ships and two 6,600-TEU container ships, to be delivered before 2012. The Yangming order comes at the heels of a European shipping company's order for four container ships. CSBC president Huang signed the contract in Switzerland last week. It includes a firm order for four 1,700-TEU container ships worth $250m, with the option for two more. Source: Earth Times

ClassNK: Amendments to Rules of Container Carriers

PRESS RELEASE --  Classification society ClassNK (Chairman and President: Noboru Ueda) announced that it released amendments to its Rules and Guidance for the Survey and Construction of Steel Ships on 25 December 2015, including structural strength requirements of container carriers. In response to a large container ship casualty in June 2013, ClassNK established The Investigative Panel on Large Container Ship Safety, which comprised of shipbuilders, shipping companies, and people with relevant knowledge and experience, to investigate the possibility of casualty occurrence and the structural safety of large container carriers. The results…

Third 14,000 TEU Container Joins Seaspan

Image: Seaspan Corporation

Hong Kong-based owner and operator of containerships Seaspan Corporation has taken delivery of a 14,000 TEU containership, the YM Winner. The new ship, which was constructed at Hyundai Heavy Industries Co., Ltd., is Seaspan’s third 14,000 TEU SAVER design containership and fourth delivery in 2015. The YM Winner will commence a ten-year, fixed-rate time charter with Yang Ming Marine Transport Corp. The ship is the third of a total of eight 14000 TEU SAVER design vessels to be chartered by Seaspan to Yang Ming. The delivery of the YM Winner expands the Company's operating fleet to 81 vessels.

Uni Asia Forms New Subsidiary and Buy a New Vessel

Pic: Uni-Asia Holdings Limited

Uni-Asia Holdings Limited has acquired a new wholly owned Panama-incorporated company known as Fortuna Containership S.A. as a ship owning subsidiary for the purpose of acquiring a 3,500 TEU second hand containership. Fortuna Containership was incorporated in Panama on 20 May 2015 with an authorised share capital of US$10,000. As of the date hereof, the Company has paid in cash in full for the subscription of an issued and paid-up share capital of US$10,000 comprising 100 ordinary shares of US$100 each. The acquisition of Fortuna Containership was made with the Company's internal funds.

Maritime Reporter Magazine Cover Feb 2017 - The Cruise Industry Edition

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