CMA CGM, ENGIE Ink LNG Deal
CMA CGM and ENGIE signed a Memorandum of Understanding to promote LNG as the marine fuel for tomorrow’s container vessels. Farid Salem, Executive Officer of the CMA CGM Group, and Isabelle Kocher, CEO of ENGIE, signed the agreement today at the Marseille headquarters of CMA CGM. * A study about the development of engineering specifications for a bunkering vessel adapted to LNG powered container ships, so as to improve over time the logistics chain necessary to fueling this type of vessels, thus promoting their deployment.
Container Shipping Industry Calls for Climate Action
Members of BSR’s Clean Cargo Working Group (CCWG) have agreed on a climate action statement and call to action for the container shipping sector and its value chain to support private-sector contributions for the global goals on climate change. Today, CCWG includes ocean container shipping lines representing about 85 percent of global volume and more than a dozen key cargo owners. The CCWG member statement reflects an aspiration for container shipping to play its role in limiting global temperature increase to well below 2˚C…
Moore Stephens: 4th Straight Year of Operating Costs Decline
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 in such costs. All categories of expenditure were down on those for the previous 12-month period. This suggests continued pragmatic management of costs by ship owners and operators, as well as a reduction in active trading for some owners as a result of the prolonged worldwide economic downturn.
147 Vessels Sent to Shipbreaking
So far this year 147 vessels have been sent to the shipbreakers for their steel to be recycled, Telegraph reported quoting new data from Braemar ACM shows. A record number of container ships have been scrapped this year as owners battle a perfect storm of vast overcapacity and rock-bottom freight rates. The Telegraph report says that the scrapping spree has taken ships with the capacity to carry a total of 507,000 shipping containers – known as twenty-foot equivalent units or TEUs, the unit of measurement used in the industry – out of the global fleet.
NYK Expects Loss of $1.9 Bln
The Japanese shipping operator Nippon Yusen Kabushiki Kaisha (NYK Line) will book an ‘extraordinary’ loss totaling 195 billion Japanese yen (U.S. $1.89 billion) for the interim period of its current fiscal year, forced by a deep slump in the shipping market to write down the value of container ships and other assets. A report in CNBC says the huge writedown is the latest sign of a slowdown in the container shipping sector due to low freight rates and oversupply and comes after the collapse of South Korea's Hanjin Shipping Co Ltd.
Hanjin Talks on Long Beach Sale
Hanjin Shipping Co Ltd is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company S.A.(MSC), reports Reuters. The court overseeing Hanjin's receivership says the company is negotiating with MSC, it's partner in the terminal and which has first right of refusal. Hanjin Shipping owns a 54 percent stake in Total Terminals International LLC, which operates Long Beach Terminal in the U.S. MSC owns the remaining 46 percent. It has appointed an advisor, an overseas firm specializing in shipping industry talks, to help with the negotiations.
Rickmers’ Investors Demand Prompt Bond Repayment
Singapore-based shipping trust Rickmers Maritime announced that it has already received a letter from lawyers representing a group of bondholders demanding for the immediate payment of their share of bonds, reports Bloomberg. The development comes after some holders of the firm’s S$100 million ($72 million) of 8.45 percent notes due in May 2017 sought accelerated repayment last month, as the operator of container ships proposed a debt restructuring plan to help avoid potential liquidation or judicial management. The letter said that the trustee DB International Trust (Singapore) Ltd.
Hanjin, MSC Vessels Collide off Singapore
The container ship Hanjin New York dragged anchor and collided with container carrier MSC Claudia off Singapore, say local media reports. The incident that occurred at around 6pm last Friday caused 11 empty containers to fall overboard, according to the Maritime Port Authority of Singapore(MPA). The Hanjin ship “dragged anchor" and contacted the bow of MSC Claudia, the MPA said in a statement in response to queries. "The Hanjin New York dragged anchor and contacted the bow of a Liberia-registered container ship, MSC Claudia.
Hyundai Mulls Bid for Hanjin Assets, Routes
Hyundai Merchant Marine is considering bidding for its bigger local rival Hanjin Shipping Co.'s Asia-U.S. route, reports Yonhap. Hyundai Merchant, currently under a creditor-led debt restructuring scheme, is planning to submit a preliminary bid for Hanjin Shipping's route, seen as the most lucrative, and ships that are up for sale. Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up manpower and logistics systems, five container ships and 10 overseas businesses, for sale last week.
Construction Set to Start on Jacksonville LNG Facility
JAX LNG said it has executed the remaining engineering and procurement contracts required to begin construction of a new liquefied natural gas (LNG) liquefaction and storage facility at Dames Point near the Port of Jacksonville. The JAX LNG liquefaction facility is expected to be operational in the fourth quarter of 2017. Once completed, it will be outfitted with a 2 million-gallon storage tank with the capacity to produce in excess of 120,000 gallons of LNG per day. JAX LNG’s Jacksonville plant will be North America’s first small-scale coastal LNG facility and will include marine distribution capabilities utilizing North America’s first LNG bunker barge, Clean Jacksonville. “The LNG industry is seeing a steady growth in demand,” said Tim Hermann, president of Pivotal LNG.
Concor Consortium to Bid for Colombo Container Terminal
Container Corporation of India (Concor) has formed a consortium with APM Terminals B.V., John Keells Holdings and Maersk Line in order to bid for the development of East Container Terminal in Colombo, reports Hindu Business Line. The total project value is likely to be about $550-600 million. The Colombo Port currently has four container terminals. In 2008, a new harbour basin, the Colombo South Harbour was developed to accommodate deep draft vessels and the Sri Lanka Ports Authority (SLPA) decided to develop four new terminals…
Japan's NYK Line Warns of $1.9 bln hit to Earnings
NYK Line may book losses as shipping slump slashes asset values. Nippon Yusen, Japan's biggest shipper by sales, warned it would book a $1.9 billion hit to first-half income, after the industry's deepening slump forced it to write down the value of container ships and other assets. The shock writedown is the latest symptom of the dramatic slowdown in the container shipping sector. Weaker global trade, and in particular softer demand from China, has battered freight rates and left hundreds of ships idle. Chronic oversupply in the industry has already claimed one high profile victim this year: South Korea's Hanjin Shipping Co Ltd, the world's seventh largest container carrier before it went into receivership.
MOL to Launch Biannual Vessel Safety Campaign
Mitsui O.S.K. Lines, Ltd. (MOL) has announced the launch of its biannual safety campaign to begin on October 15, targeting all MOL group-operated vessels. MOL views safe operation as a social commitment and gives it the highest of priorities in all of its business activities, helping the company to forge ahead and become a world leader in safe operation. As part of these efforts, President, executives, and other personnel will conduct an extensive series of visits to MOL-operated vessels in Japan and overseas.
Is Container Shipping World Shrinking?
Drewry says that the container shipping world is shrinking as M&A and carrier failures increase. Is reduced competition the real cost of low rates? The container shipping world is getting smaller. Hanjin Shipping may continue as a regional Intra-Asia carrier if its survival plan is successful but its days of being a leading global player in the Top 20 are over. Other brands that have effectively disappeared from the upper echelons of carrier rankings this summer include China Shipping Container Lines (CSCL) after its merger with Cosco…
Liner Sector Consolidation
What does the story of the collapse of Korean container shipping line Hanjin illustrate in terms of the journey undergone by the liner sector in modern times? Clarksons Research analyses the biggest headlines that the container, or any other, shipping sector has seen over the last few decades. Clarksons's research report writer, Trevor Crowe says that container shipping’s September headlines were dominated by the downfall of Korean liner company Hanjin. Following financial collapse…
No Reprieve for Multipurpose Shipping Until 2018: Drewry
The last three months have been some of the worst the multipurpose and project carrier sector has endured in living memory. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Rates have continued to slide to barely cover operating expenses, as the competing sectors of container ships and bulk carriers have weakened the MPV market ever further in their search for market share.
Container Shipping Market has Bottomed Out
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 shipping consultancy Drewry. Worse than expected second quarter financial results will be followed by a better second half-year. But Drewry still expects container carriers to record a collective operating loss of $5 billion this year.
Container Shipping Line of the Year Award Goes to MSC India
MSC India is celebrating winning an award at a prestigious trade event. The agency took the prize for Container Shipping Line of the Year India - Europe Trade Lane in the 7th All India Maritime and Logistics Awards. Held at the St Regis Hotel in Mumbai, the event acknowledged shipping lines and NVOCCs which had achieved particular success throughout the last year. Capt. Deepak Tewari, from MSC India, said: “We are really delighted to have been honored with this award. Attending the event from MSC India were: Mohandas Menon- General Manager Customer Service…
Can Shipping Keep Its Big Break Going?
In today’s conditions, the shipping industry needs supply-side re-positioning to help the markets back to improved health, and increased recycling in recent years has been a clear part of this, says Clarksons Research. However, there’s still some way to go to better times, so it’s worth taking a look at how today’s ‘big break’ might leave the future potential scrapping profile. Since the start of 2009, a total of 206.6m GT of shipping capacity has been sold for recycling, compared to an aggregate of 63.1m GT in the previous seven years.
NYK Steams Ahead
Tokyo-based Nippon Yusen Kaisha (NYK) Group is not only one of the world’s largest ship owners with a diverse fleet of more than 800 ships, it is a growing global maritime logistics powerhouse. Maritime Reporter & Engineering News visited with Yasuo Tanaka, Senior Managing Corporate Officer, Naval Architect, in Tokyo for his insights on the company’s continued efforts to invest in operational efficiency. The story of NYK cannot start without a look at the numbers, because the numbers tell the story in a most impressive fashion.
CMA CGM Bags Award for CSR Performance by EcoVadis
For the second consecutive year, CMA CGM has won the “Gold Recognition Level” by EcoVadis a specialist agency in CSR evaluation. This award acknowledges CMA CGM’s CSR ambition and performance especially regarding: the improvement of its Carbon performance by 50% in 2015, its commitment to vulnerable children through CMA CGM Corporate Foundation and its Safety policy. Environment: to minimize the impact of the Group’s activities with innovation as a major driver: The Group sets itself extremely ambitious targets in the area of environmental sustainability and reached some in 2015: for example…
Cadets Stranded on Hanjin Ship Head Home
The Hanjin Louisiana, one of the containerships caught up in the collapse of the South Korean shipping company Hanjin, has finally docked in Singapore after several weeks of uncertainty at sea. Among those onboard the containership were four Scottish cadets, who disembarked in Singapore on September 28 for flights back home to the U.K., BBC reports. The four trainee officers studying at the City of Glasgow College – Ruaridh Hanna, David Gorniak, Graeme Deacon and Gavin McPhail – were among an estimated 2…
Korean Yard to Build World's Largest Container Ship for CSCL
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…