Containership Operators News

Global Shipping Industry Delivers Comments to Official Consultation on Proposed Modifications to Panama Canal Tolls.The Panama Canal Authority (ACP) is conducting a public consultation on a proposal to adjust the Panama Canal tolls for containerships, vehicle carriers, dry bulk carriers, tankers, chemical carriers, LPG and LNG vessels, passenger vessels and small vessels. The proposed new toll charges are anticipated to enter into effect on 1 January 2020, the same day as the IMO ‘Global Sulphur Cap’ regulation.

After two months of steady increases in long-term contracted rates for containership operators, the latest XSI Public Indices report from Xeneta shows a reversal of fortunes, with rates falling by 4.2%.According to the report’s crowd-sourced data - covering over 160,000 port-to-port pairings, with 110 million data points – all major trading corridors saw month-on-month declines, plunging the indices to its lowest level since June 2018.However, unfortunately for those on the asset owner and operator side, notes Xeneta CEO Patrik Berglund, that map is currently showing somewhat challenging terrain.“This is a turn of events,” Berglund comments.

A.P. Moller Maersk said on Tuesday a U.S. Department of Justice (DoJ) investigation into the practices of container shipping companies had closed and the group was released from any obligations.In 2017, the DoJ ordered top executives from several container shipping lines including Maersk to testify in an antitrust investigation over practices by an industry that is the backbone of world trade."We are pleased to confirm that the United States Department of Justice has closed its…

Pacific International Lines (PIL) is honoured to receive the MPA Safety@Sea Award for the outstanding contributions to the search and rescue efforts in 2017 during the International Safety@Sea Conference held in Singapore (21 June 2018). The Master and Crew of Kota Cempaka, Kota Hidayah and of Southern Lily did us proud by rendering assistance to the Search and Rescue efforts coordinated by Vessel Arezoo off Hong Kong, rendering assistance to RCC Guam for the Search and Rescue efforts off Guam and rendering assistance to RCC New Zealand and the rescue of a Norwegian Crew and for rescuing a fishing vessel, respectively. "PIL is proud of our Masters and Crew for rendering assistance to the vessels and seafarers in need.

Pacific International Lines (PIL), Singapore’s leading containership operator, announces two upgraded weekly services on the Far East – Red Sea service route. Done in collaboration with Ocean Alliance, the routes named RSS and RES will commence operations in March 2018, superseding the current three services RSS, RS3 and RS5. The route will be operated with a series of 17 x 11,000 to 14,000TEU vessels including its latest newbuilds, the 11,923TEU P Class in the service. The highly efficient and versatile P Class were purpose-built for Red Sea, with a ballast water treatment system fitted onboard and various energy saving measures implemented in its design. The enhanced Red Sea service will extensively cover North Asia and South East Asia with direct connections to the main Red Sea markets.

Container shipping lines are increasing their share of the seaborne reefer market and are forecast to accelerate their assault over the coming years, according to the latest edition of the Reefer Shipping Market Review and Forecast 2017/18 published by global shipping consultancy Drewry. In 2016, the estimated perishable reefer cargo split was 79% in reefer containerships and 21% in specialised reefers. By 2021 this modal split is forecast to have changed to nearer 85% and 15% in reefer containerships and specialised reefers respectively. One interesting development in 2017 saw specialised reefer operator Seatrade team-up with CMA CGM to provide a 13-vessel reefer container service offering a weekly sailing between Europe and Australasia.

International transport and logistics executives using container shipping are facing the biggest shift in their ocean provider base for 20 years and must adapt their procurement and contract strategy, according to ocean freight procurement consultancy Drewry Supply Chain Advisors. In the last five years, beneficial cargo owners have been able to secure large reductions in freight costs by running traditional competitive bids with numerous providers in an over-supplied, fragmented market. “Today’s business environment is starkly different, so we are now pro-actively advising our BCO customers that last year’s contract strategy will simply not work as a blueprint for the forthcoming annual ocean tender,” said Philip Damas, Head of Drewry’s logistics practice.

Two workers lost their lives at the Chittagong shipbreaking yards in the last two weeks, bringing the total death toll this year to six workers, reports NGO Shipbreaking Platform. On 6 May, 26-year-old Shahinoor died at Jamuna Shipbreaking yard. He fell from a great height when he was breaking the Hanjin Rome, which was the first vessel arrested after the collapse of one of the largest container ship companies last year – the Korean company Hanjin Shipping. The Hanjin Rome was put up for auction by the High Court in Singapore to be sold to the highest bidder early this year. Unsurprisingly, the highest bids for buying ships for scrap come from cash buyers that sell to the South Asian beaching yards who can offer higher steel prices with minimal disposal and labour costs and safeguards.

The U.S. Justice Department has ordered top executives from several container shipping lines to testify in an antitrust investigation into an industry that is the backbone of global trade, the companies said on Wednesday. The world's biggest container shipper, Denmark's A.P. Moller-Maersk, Germany's Hapag Lloyd, Taiwan-based Evergreen, Hong Kong-based Orient Overseas Container Line (OOCL) said their executives were among those who had been subpoenaed. The United States is concerned that the proposed alliances of several major companies…

Though specialized reefer fleet is shrinking and shows no signs of reversing in the future, the reefer containership fleet has increased by 15 percent year-on-year and is set to grow 20 percent by 2018, according to maritime research and consulting services provider Drewry’s latest Reefer Shipping Market Annual Review & Forecast. Consequently, with a capacity restricted specialized fleet, there is no alternative but for cargo to be shipped by reefer containership, a trend Drewry says is accelerating with continued cargo growth.

Drewry Maritime Research advises that it has just published it's latest Reefer Shipping report, which has new and improved content on the containerised segment of the market, providing a balanced analysis of the whole market, both specialised and containerised.

When talk turns to marine propulsion and the host of surrounding topics – emissions, efficiency, fuel consumption – we turn to class for answers. While there are just two questions, the ensuing answers from leaders at ABS, BV, ClassNK, DNV GL, LR and RINA are voluminous & enlightening. The stricter environmental regulations and rising fuel costs lead to technology development in design, size, propulsion and operations. This goes well beyond LNG as fuel, and we believe we will see a more diversified mix, with batteries, hybrids, methanol and so on.

Hapag-Lloyd mourns the loss of former Executive Board chairman Hans Jakob Kruse, who led the company from 1973 until 1993. On February 4, Hans Jakob Kruse died in Hamburg at the age of 84. He was the chairman of the Hapag-Lloyd Executive Board for two decades from 1973 until 1993. “Hapag-Lloyd is mourning the loss of a visionary and beloved chairman, whose substantial contribution shaped our company as well as the global shipping industry,” said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd. Following an apprenticeship as a shipping agent, Hans Jakob Kruse began his career in 1964 as a representative of Hapag and Norddeutscher Lloyd in Australia. In 1967 he returned to Germany as the head of Canada and Australia services.

The November 2013 edition of Lloyd’s Register’s Gas Technology Report is dedicated to LNG as a marine fuel. Highlights include a look at developments in Canada – a shipowner, the regulator and a shipbuilder talk about gas fuelled shipping, progress made by the Maritime and Port Authority in Singapore to develop LNG bunkering, the CEO of Viking Line talks about the LR classed Viking Grace and interviews with SIGTTO and the newly formed Society for Gas as a Marine Fuel (SGMF). Luis Benito…

Drewry’s latest Reefer Shipping Market Annual Review and Forecast reports that worldwide perishable reefer trade increased by 52.1 million metric tons between 2002 and 2012, which represents by a combined annual growth rate (CAGR) of 3.6%. Seaborne perishable reefer cargo has increased by a CAGR of 3.3% (25.6 million metric tons) from 66.8 million metric tons in 2002 to 92.4 million metric tons in 2012. The highest percentage growth continues to be seen in the exotic fruit category (pineapples, kiwifruit and avocadoes). Despite its relatively small volume of 4.5 million metric tons in 2012, this sector has grown by a CAGR of 9.1% since 2002. In terms of tonnage, the highest growth has been in the meat category (comprising poultry, pork, beef/veal, offal and sheep meat).

Maersk Line, MSC Mediterranean Shipping Company S.A. and CMA CGM have in principle agreed to establish a long-term operational alliance on East – West trades, called the P3 Network. The aim is to improve and optimise operations and service offerings. The P3 Network will operate a capacity of 2.6 million TEU (initially 255 vessels on 29 loops) on three trade lanes: Asia – Europe, Trans-Pacific and Trans-Atlantic. While the P3 Network vessels will be operated independently by a joint vessel operating centre…

Gulftainer has recorded a 24% overall increase on trade volumes in 2012 when compared with the previous year. Its Sharjah ports saw the greatest volumes throughout the year, with Khorfakkan Container Terminal seeing growth of 28 per cent on its 2011 figures with a staggering throughput of over 3.3m TEU. The consistent organic growth of Gulftainer is the largest of any Middle East port operator, with trade volumes more than tripling in the past decade. The company’s portfolio covers three UAE operations, Khorfakkan, Sharjah and Ruwais, as well as in Iraq at Umm Qasr, Recife in Brazil, and the recently acquired Tripoli Port in Lebanon, with further plans across the Middle East and international territories for 2013.

The Forum looked at a broad spectrum of topics concerning container shipping including: stowage and lashing, the potential for LNG vessels and bunkering, trends in the liner markets, high tensile steel and thick materials for ship building, pilotage and maneuvering XXL container ships in the Hamburg harbor and the advantages of having an Emergency Response Service. Some 50 representatives from the container industry met with GL experts at the Container Ship Forum, to hear the presentations and participate in informal discussions.

Soundview Maritime, LLC, an owner and operator of mid-sized container ships for charter to leading global ocean and intermodal transportation companies, today announced it has engaged Dr. Moritz Mittelbach, a maritime industry veteran, as its exclusive strategic advisor. In this role, Dr. Mittelbach will advise Soundview on the purchase, financing, and long term charter of container vessels as well as other strategic initiatives to grow and improve the company. Littlejohn & Co. and Northern Shipping Funds (Northern) established Soundview Maritime in 2010 and have made equity commitments that enable the acquisition of between 10 and 20 containerships in the 1,000 to 4,000 TEU range.

Reefer market dynamics continue to change. Drewry Maritime Research have just published their latest Reefer Shipping Market Annual Review and Forecast 2011/12, analysing the industries make-up including; leading operators’ profiles and fleets, perishable commodities, specialised reefer and freezer fleet capacity, containerised reefer vessels, ship economics and forecasts for the future. As the burgeoning containerised reefer market continues unabated, the specialist reefer fleet is feeling the strain. With twelve-month charter rates forecasted to continue sliding, scrapping levels gaining pace and for the first time an empty newbuild orderbook , the industry is changing quickly.

The International Chamber of Shipping has submitted comments to the Panama Canal Authority in response to its public consultation on revised proposals to modify Panama Canal tolls. The International Chamber of Shipping (ICS) is the principal international trade association for shipowners, representing all sectors and trades including containership operators, tanker operators and dry bulk carriers, as well as specialised trades such as chemical carriers and car carriers. The membership of ICS comprises national shipowners’ associations from 36 countries…

Despite the current overcapacity of tonnage and disastrous shipping rates, the world containership fleet is expected to continue its rapid growth curve, albeit at a slightly reduced rate, as deliveries are taken from shipyards and new shipbuilding orders start to pick up later this year. That is the conclusion of the Shipbuilding Market Forecast for Container and Roll-On Roll-Off (Ro-Ro) Ships released this month by Lloyd’s Register - Fairplay (LRF) Research. By any measure, the current picture for containership operators is grim, caused by the severe imbalance in supply and demand under the sluggish economic conditions worldwide. Spot rates of as low as $250 to move a container from Hong Kong to Rotterdam are being quoted by some lines. That compares with $1,400 a year ago.

WR Systems (WR) announce new Korean & Chinese shipyard contracts for its Emsys Emissions Monitoring System. During December, the company received new construction contract awards for multiple shipsets from shipyards in China and Korea. In addition, the company announced that it received contracts for retrofit applications for a further two suppliers of Exhaust Gas Cleaning Systems (Scrubbers). The latest contract values exceed $1M and probably raise WR to the position of leading supplier of maritime Emission Monitoring Systems (EMS).