Fy12 News

The Indian ministry of defence (MoD) has terminated the contracts with India's ABG Shipyard, which already  was out of the race for $2.6-billion four Landing Platforms Docks (LPD). This comes as another serious setback to the Shipyard after it was listed as non-performing asset (NPA) accounts by the Reserve Bank of India (RBI) for fast resolution under the insolvency law. ABG Shipyard has failed the corporate debt restructuring (CDR) carried out by ICICI bank. The Financial Express reported that keeping in mind the poor financial health of the shipyard, the MoD has written to ABG  that their old contracts are terminated. “The MoD through a letter to ABG Shipyard has cancelled contracts including Cadet Training ship; Coast Guard Training Ship and Naval vessels.

"Commonly referred to as the 30-year shipbuilding plan, we have highlighted a path forward that captures the required number of ships by type, as outlined in the FY12 Force Structure Assessment (FSA). Our FSA identified those forces that most efficiently execute the missions and priorities of the Department of Defense (DoD) Defense Strategic Guidance (DSG) and meets requirements in the 2014 Quadrennial Defense Review. This report builds and maintains a battle force inventory of near or above 300 ships, and ultimately shows that we can achieve the FSA objective of 306 battle force ships. As we have done with previous submissions our plan assesses Department of the Navy (DoN) investments in battle force ships in three 10-year periods — near-, mid-, and far-term.

Vessel operators seek protection by hedging fuel needs. It’s easier than you might think. Some workboat operators defend themselves against higher diesel prices by buying futures contracts, while others purchase fuel at prices fixed in advance from their suppliers. Others, perhaps less-savvy and/or smaller companies, however, take their chances by buying in the spot market. While some operators are uncertain about their future fuel requirements and consumption, domestic ferry operators for the most part know exactly what they’ll need in the year ahead.

In its financial year ended 30 June 2013 report Singapore's CH Offshore had to make a full allowance for doubtful trade receivables of US$43.95 million as the debts had been long overdue and payment from the client was not forthcoming. "The financial year ended 30 June 2013 (“FY13”) marked the 10th year since CH Offshore Ltd (the “Company”) became a public limited company on 28 February 2003. Over the last 10 years, the CH Offshore Group (the “Group”) like all other organisations had to ride through global financial woes and economic downturns.

For the financial year ended 30 June 2013, the Group, which owns PSV's, AHTS & offshore maintenance vessels, has recorded loss after income tax of US$7.108 million which was 121.3% lower than the profit after income tax of US$33.433 million for the previous financial year ended 30 June 2012. Revenue declined 7.2% to US$47.819 million from US$51.514 million. During FY13, revenue was mainly affected by two vessels which have completed their respective contracts in January 2013. Thereafter, they were docked for their first mandatory overhaul and upgrading works. As at 30 June 2013, all the vessels were fully utilized except for these two which were still undergoing repair and upgrading works. Other expenses comprised mainly allowance for doubtful trade receivables of US$43.95 million.

Container, bulk and tankship owners, Samudera Shipping Line, presents its 2012 financial report with the chairman's letter to shareholders. The following is extracted from Mr. "The financial year ended December 31, 2012  saw the Group delivering another year of profitable performance amidst challenging industry landscape, leveraging our competitive position and strengths to meet challenges in Indonesia and the region. Group revenue improved by 3% to $ 467.7 million (USD), from $454.2 million in the previous year (FY11), lifted by the implementation of bunker surcharges in the regional container shipping segment and higher volume handled by the Indonesia domestic container shipping business.

Global container shipping and logistics group Neptune Orient Lines (NOL) reported fourth quarter 2012 Core EBIT (Earnings Before Interest and Taxes) loss of US$69 million, a 75% improvement in the key profitability measure from a year ago. The Group posted a full year net loss of US$419 million, mainly due to a first quarter net loss (before non-recurring items) of US$255 million and one-time charges of US$108 million. Singapore-based NOL also said that its efficiency programme delivered US$504 million of cost savings, which is in line with its 2012 target. The savings were primarily achieved through reduced fuel consumption, network optimization and increased terminal productivity. “General market conditions in 2012 remained challenging.

The U.S. Department of Defense (DOD), in conjunction with the U.S. Department of Transportation’s (DOT) Maritime Administration (MARAD), has designated particular ports around the United States as “strategic seaports.”  Strategic seaports are designated because of their ability to support major force and material deployments in times of war and national emergency, based on their proximity to deploying military units and their transportation links close to those units, and varying other capabilities the DOD has deemed important…

Cleveland—The U.S.-flag Great Lakes fleet is returning to service to keep industrial America on the mend. The first vessel to get underway was the tug/barge unit DOROTHY ANN/PATHFINDER on March 5. The vessel will spend the month shuttling iron ore within Cleveland Harbor. Next to sail was the cement carrier SAMUEL DE CHAMPLAIN/INNOVATION. The tug/barge unit left its winter berth in Cleveland on March 7 and sailed to Alpena, Michigan, where it loaded cement to resupply silos in Chicago. The self-propelled laker JOSEPH L.

President Barack Obama sent Congress a proposed defense budget of $613.9 billion for fiscal 2013, Feb. 13. The request for the Department of Defense (DoD) includes $525.4 billion in discretionary budget authority to fund base defense programs and $88.5 billion to support Overseas Contingency Operations (OCO), primarily in Afghanistan. Of the discretionary budget, $155.9 billion represents the Department of the Navy's budget request. This is a decrease of $1.4 billion from last year's baseline appropriation. Rear Adm.

For the half year period ended 30th September, 2011, Mercator Lines Ltd. registered 25% growth in Total Income which stood at Rs.1584 crores (Rs.1268 crores). The Consolidated Net Profit for the period stood at Rs.21.41 crores (Rs.113.22 crores). During the period, the Coal Division contributed 58% revenue while Dry Bulk contributed 22%; Tanker 10%; Dredging 5% and Offshore Division 5%. The coal volumes are expected to further improve in the coming quarters. The recent coal mine acquired in Indonesia would commence commercial operations in the last quarter of FY12. The Oil and Gas Division has successfully commissioned FPU unit in Nigeria and the operations are doing well as per schedule. Exploration activities of two onshore oil blocks in Gujarat are on schedule.

Ingalls Shipbuilding, a division of Huntington Ingalls Industries, Inc. (NYSE:HII), was awarded a construction contract for the Arleigh Burke-class (DDG 51) destroyer DDG 113. As this award represents Phase I of a competitive two-phased acquisition approach to procure FY11/FY12 DDG 51s, with Phase II including the potential award of up to three additional ships, the award amount is considered source selection-sensitive information. DDG 113 will be the 29th Arleigh Burke-class destroyer built by Ingalls.

The Administration’s proposal to slash the Great Lakes dredging budget by 32 percent in FY12 has the Great Lakes shipping industry declaring a State of Emergency. The Administration’s proposed appropriation for Lakes dredging next year will remove the smallest amount of sediment since the U.S. Army Corps of Engineers started keeping records more than half a century ago. As a result, only 11 of the 83 U.S ports on the Great Lakes will be dredged. “Never in my 51 years in this industry have I seen such a total abandonment of the Federal government’s responsibility to maintain the Great Lakes Navigation System,” said John D. Baker, President of Great Lakes Maritime Task Force, the largest labor/management coalition ever to promote shipping on America’s Fourth Sea Coast.

Deputy Assistant Secretary of the Navy for Budget, Rear Adm. Joe Mulloy, briefed the Fiscal Year 2012 Department of the Navy budget roll-out at the Pentagon, Feb. 14. "The FY12 budget request reflects the Navy's continued commitment to Sailors, Marines, civilians, and their families," said Mulloy. "It reaffirms the valuable contribution our assets make across the full spectrum of warfare and increases the capability of our fleet. While military pay will increase 1.6 percent, additionally, reenlistment bonuses for key rates are being maintained, and selective reenlistment bonuses are being offered. President Barack Obama's budget for Fiscal Year 2012 was submitted to Congress Feb.

Austal USA and Bath Iron Works (BIW) have agreed to revoke their current teaming arrangement. This strategic decision allows Austal USA to act as prime contractor in the upcoming bid for 10 U.S. Navy Littoral Combat Ships (LCS). The U.S. Navy is expected to award the contract for two LCSs, including options for an additional eight vessels, by the end of US FY10. In the event that Austal USA is awarded the FY10 contract, potentially worth up to $4.8b, it will continue to act as Prime Contractor for future LCS bids. General Dynamics Advanced Information Systems, which is currently the systems integrator in the program, will now subcontract to Austal USA…

The Navy took delivery of its newest attack submarine, Pre Commissioning Unit (PCU) New Hampshire (SSN 778), from General Dynamics Electric Boat (GDEB) on Aug. 27, eight months early to its contract delivery date. New Hampshire is the fifth Virginia-Class submarine and the third delivered by GDEB. New Hampshire's early delivery is an important milestone for both the submarine force and the Virginia-Class Program. Rear Adm. (sel) Dave Johnson, Virginia-Class Program Manager commented, "Our shipbuilding partners have played an active role in reducing construction time and cost, both through the Capital Expenditures (CAPEX) incentive program that improves facilities and LEAN initiatives that make shipbuilding more efficient."  USS Hawaii (SSN 776) and USS North Carolina (SSN 777)…

The JHSV requirements and concept of operations are similar to those of the Austal built WestPac ExpressAustal announced the award of a $3m Preliminary Design Contract for the Joint High Speed Vessel (JHSV) program for the US Navy and Army. The JHSV requirements and concept of operations are similar to those of the Austal built “WestPac Express”, which has been successfully serving the III Marine Expeditionary Force in Okinawa, Japan for more than six years. At the conclusion of the six-month JHSV Preliminary Design Contract…