Carnival to Build Two New Cruise Ships with Fincantieri
Two new ships to be built for company’s Holland America Line and Princess Cruises brands will help meet growing demand for cruise vacations and enhance the fleet. Carnival Corporation & plc announced that it has signed a memorandum of agreement with Italian shipbuilder Fincantieri S.p.A. to build two new cruise ships with final contracts expected to be executed in early 2017. The two new ships are designated for the company’s Holland America Line and Princess Cruises brands. With the new agreement, Carnival Corporation now has 19 new ships scheduled to be delivered between 2017 and 2022.
COSCO 'bidding' for Orient Overseas
Chinese conglomerate Cosco Group is in talks to acquire smaller rival Hong Kong-based rival Orient Overseas Container Line Co. ( OOCL), Chinese media outlet Caixin reported quoting people familiar with the matter. The state-owned China COSCO will compete with Evergreen Marine Corp. from Taiwan and France’s CMA-CGM SA in the takeover bid, but COSCO was more likely to win the deal, a source from COSCO told Caixin. A representative at COSCO Shipping's media relations department said the company wasn't aware of the bidding.
US Coast Guard Provides Security for Trump Inauguration
U.S. Coast Guard units and partner agencies provided waterside security for the 58th Presidential Inauguration in Washington D.C., Thursday. Crews from Coast Guard Maritime Safety and Security Teams New York and San Diego and Coast Guard Cutters Chock and Heron worked with crews from federal, state and local law enforcement agencies as part of a comprehensive port security operation to protect people and waterways around the District.
SBM Offshore Shares Gain on Hopes of Brazilian Settlement
Shares in Dutch offshore oil industry services company SBM Offshore rose on Friday on a media report the company was close to settling a corruption probe with Brazilian authorities that has prevented it from bidding for work in a major market. The shares rose as much as 5.5 percent to a 17-day high of 15.29 euros after oil and gas magazine Upstream published an article indicating a deal was near, analysts said. SBM, which has been seeking a deal after being accused of paying bribes to executives of state-controlled oil company Petrobras, declined to comment. If it reaches a deal, SBM would be well placed to win a tender for the first floating production, storage and offloading (FPSO) platform for the giant Libra oil field offshore Brazil, KBC Securities analyst Tom Simonts said.
Shippers Avoid New "pirate hotspot" west of Philippines
Piracy has surged in Sulu, Celebes Seas; waters part of route carrying iron ore to Asia. A surge in piracy to the west of the Philippines is forcing shipowners to divert vessels through other waters, stoking their costs and extending the time it takes to transport goods such as Australian iron ore to key Asian destinations. There have been 16 attacks since last March on ships in the Sulu and Celebes Seas, through which about $40 billion worth of cargo passes each year, according to the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP).
COSCO Shipping Denies OOCL Bid Reports
Rumors that COSCO Shipping Corp plans to bid for Hong Kong's Orient Overseas Container Line (OOCL) are incorrect, a spokeswoman for the Chinese shipping giant said on Friday. "We deny these rumors," she told Reuters. On Wednesday, the Caixin newspaper reported that the company would participate in bidding for the unit of Orient Overseas International Ltd, alongside Taiwan's Evergreen Marine Corp and France's CMA CGM. Reporting by Brenda Goh
Asia Tankers-VLCC Rates Likely to Slide
Chartering activity could slow down in March due to refinery work; growth in tanker fleet could climb 6.5 pct, pressuring rates. Freight rates for very large crude carriers (VLCCs) are likely to fall next week as charter activity from China slows ahead of the Chinese New Year holiday, ship brokers said. Rates on the West Africa-to-Asia route have already started to slide probably because of the Chinese New Year impact, said Ashok Sharma, managing director, BRS Baxi Far East, Singapore. "I feel the Middle East has plateaued.
HMM Acquires 20% Stake in Long Beach Terminal
South Korean shipping line Hyundai Merchant Marine Co. (HMM) said it will buy a fifth of the company that runs the biggest container terminal at Long Beach Total Terminals International terminal (TTI), Calif., the U.S.’s second-largest port. HMM announced that its board of directors decided to buy a 20-percent stake in TTI and equipment-leasing firm HTEC for a combined US$15.6 million. HMM will now become the No. 2 stakeholder in TTI after Geneva-based Mediterranean Shipping Co (MSC). TTI operates terminals at Seattle and Long Beach.
Skuld Hires Cargo and Marine Property Head
Marine insurance provider Skuld announces the appointment of Paul Knighton as global head of marine cargo and marine property. He will join Skuld Syndicate 1897 in the summer. Knighton will enhance Skuld’s well-established marine cargo and marine property portfolio by building its offering to clients. He will focus predominantly on developing a total solution product for ports, terminals and freight logistics operators. Knighton will join Skuld from the TT Club where he has been a senior underwriter since 2012.
Bahri Profits Fall
National Shipping Company of Saudi Arabia (Bahri), the exclusive oil shipper for Saudi Aramco, made a net profit of 327.8 million riyals ($87.4 million) for the three months to Dec. 31. That compares with 566.4 million riyals in the fourth quarter of 2015. For the year ending December 31, 2016, Bahri has reported a net profit of SR1.76 billion ($469.3 million). The company registered net revenue of SR6.78 billion ($1.8 billion), and earnings per share (EPS) of SR4.48 for the year, it said in a statement. -Lower spot market rates in general and specifically in Oil transportation.
Scorpio Tankers Secures $172m for Eight Vessels
Tanker carrier Scorpio Tankers has landed a loan deal for USD 172 million. The money will finance 60 percent of eight new MR product tankers which are currently under construction in South Korea. The company said in a press release that it has received commitments for a loan facility of up to $172 million from a group of financial institutions including Macquarie Bank Limited (London Branch), DekaBank Deutsche Girozentrale (DekaBank), The Export-Import Bank of Korea (KEXIM) and Garanti-Instituttet for Eksportkreditt (GIEK).
Norway Awards 4 APA Licensing to MOL
The Norwegian Ministry of Petroleum and Energy has announced the results of the APA (Award in Pre-Defined Areas) licensing round, which granted four licences to MOL Norge on the Norwegian Continental Shelf. MOL Group’s Norwegian subsidiary, MOL Norge participated in the second APA licensing round since MOL Group entered Norway in 2015. The awarded licences are located in MOL Norge core areas. “MOL Group unveiled a 2030 long-term strategy that targets that Exploration and Production should be a self funding and value generating business even in a low oil price environment.
Danish Shipping Tribunal Relocated to Viborg
As part of the Danish Government's plan "Better balance – Government jobs closer to citizens and companies" (only available in Danish), the Danish Appeals Boards Authority was established on 1 January 2017. A large number of Danish appeals boards have relocated to the Danish Appeals Boards Authority in the city of Viborg in Jutland, including the Danish Shipping Tribunal. In this connection, secretarial assistance for the Danish Shipping Tribunal, which was previously provided by the Danish Maritime Authority, has been transferred to the Danish Appeals Boards Authority.
In The Middle Of A (Supply) Chain Reaction?
In 2016 the shipping industry saw significant supply side adjustments in reaction to continued market pressures, says a report from Clarksons Research. For shipbuilders this meant a historically low level of newbuild demand with fewer than 500 orders reported in 2016, and the volume of tonnage on order declined sharply. Meanwhile, higher levels of delivery slippage and strong demolition saw fleet growth fall to its lowest level in over a decade. 2016 was an extremely challenging year for the shipbuilding industry.
COSCO Shipping Holdings to Buy Qingdao Port's Shares
COSCO Shipping Ports and Qingdao Port International (QPI) announced to enter into the Transaction Agreement, pursuant to which COSCO Shipping Ports will make strategic investment in QPI. Taking the proposed New H Share Issurance plan of QPI into consideration, the Subscription Shares will represent approximately 16.82% of the issued share capital of QPI, and COSCO Shipping Ports’ shareholding in QPI will increase to approximately 18.41% in total. Shanghai China Shipping Terminal Development Co., Ltd.
RBS Sells $600 Mln of Shipping Loans, Orix Among Buyers
Royal Bank of Scotland has concluded agreements to sell at least $600 million worth of shipping loans from its portfolio as part of efforts to exit the sector, sources with direct knowledge of the deal told Reuters on Friday. RBS, which is more than 70 percent state owned, is in the middle of a restructuring, which includes asset sales, job cuts and tackling multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. The sources said Japanese financial services firm Orix Corp has agreed to buy $290 million worth of shipping loans from RBS, while separately Germany's Berenberg Bank would purchase around $300 million of loans. Spokespeople for RBS, Orix and Berenberg all declined to comment.
Tata to Invest in Swan LNG Project
Tata Realty and Infrastructure Ltd (TRIL) is taking 10 percent stake in a Rs. 5,900 crore ($867 mln) floating LNG import terminal being set up by Nikhil Merchant led Swan Energy in Gujarat. This will be the first investment by Tata Group in gas business. And this is the first investment decision since N Chandrasekaran named as the Tata Group chief. TRIL was established in 2007 to pursue opportunities in the real estate and infrastructure sectors. It is a wholly-owned subsidiary of Tata Sons, the holding company of the Tata Group. According to a stock exchange filing made by Swan Energy, an Expression of Interest (EOI) has been filed by TRIL “showing its willingness to invest up to 10 per cent of the equity”.
Norwegian Shipping Firm Denies Polisario Accusation of Illegal Shipment
A Norwegian shipping firm on Thursday denied a tanker it manages had violated a European court ruling after Western Sahara's Polisario movement accused it of illegally transporting an oil cargo through disputed territory it claims. The Polisario independence movement this week called on the European Union and French authorities to seize a France-bound cargo being transported on the Gibraltar-flagged Key Bay because the tanker had made a port call to Moroccan-controlled Laayoune on Jan. The Polisario said the tanker's call to Laayoune had rendered its cargo illegal as it had violated a ruling by the European Court of Justice last month that two trade deals between the EU and Morocco did not cover Western Sahara.
Polar Star Arrives at McMurdo Station, Antarctica
The crew of the Coast Guard Cutter Polar Star arrived at the National Science Foundation’s McMurdo Station Tuesday after cutting a resupply channel through more than 60 miles of Antarctic ice in the Ross Sea. By carving a navigable path through seasonal and multi-year ice, the Polar Star assists in the annual delivery of operating supplies and fuel for two of NSF's three U.S. research stations in Antarctica. The Polar Star is America’s only operational heavy icebreaker that is capable of conducting the Antarctic resupply mission.
Israel Bolsters Navy to Protect Offshore Oil & Gas
Offshore energy platforms a potential target; Israel accepting bids on 24 new exploration blocks. Israel is boosting spending on its navy to better protect offshore oil and gas deposits and secure a large maritime zone that abuts that of its neighbour and enemy, Lebanon. The navy asked in 2013 for an increase in its budget of $700 million to build up its systems and $100 million annually to maintain them, though the defence ministry declines to say how much it has since received.
Asia Dry Bulk-Capesize Rates to Hold Steady
Brazil-China rates hit 15-month high for second time this year. Freight rates for large capesize dry cargo ships on key Asian routes could hold steady or slip slightly next week after unexpectedly climbing this week on strong cargo volumes, ship brokers said. "It is a case of two oceans. In the Atlantic, Vale has been active from Brazil, and volumes from Saldanha Bay in South Africa are steady," said a Singapore-based capesize broker on Thursday. "In the Pacific, it's a waiting game with owners and charterers haggling over a 50 cent difference in the freight rate," the broker added.
Diana Shipping Charters out Two Bulkers
Diana Shipping announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Cargill International S.A., Geneva, for one of its Capesize dry bulk vessels, the m/v Santa Barbara. The gross charter rate is US$12,000 per day, minus a 4.75% commission paid to third parties, for a period of about twelve (12) months to maximum fifteen (15) months. The charter is expected to commence on January 24, 2017. The “Santa Barbara” is a 179,426 dwt Capesize dry bulk vessel built in 2015.
Ex-Daewoo Shipyard Head Gets 10 Years in Prison
Ko Jae-ho, the former head of the ailing South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME), has been sentenced to 10 years in prison by a lower court in Seoul over accounting fraud, Yonhap News Agency reports. The Seoul Central District Court found Ko Jae-Ho guilty of manipulating the company's books in 2013 and 2014, when he was the CEO, and using them to raise bank loans. Ko Jae-Ho's punishment epitomises the decline of Daewoo, which was once one of the country's biggest conglomerates, or chaebol.
Yang Ming Rules Out Merger
The chairman of Taiwan's Yang Ming Bronson Hsieh has ruled out a merger with a boxship rival. According to him, the world's ninth-largest shipping firm has never considered the possibility of merging with another operator and does not intend to do it now. Over the past 10 years, the five shippers with the highest profit margins have been smaller players. Smaller companies do not necessarily have to be merged, he said. He expects the global oversupply causing a severe downturn in the shipping industry to ease in 2017.
IMO Welcomes Financial Security Obligations for Seafarers
International Maritime Organization (IMO) Secretary-General Kitack Lim has welcomed the entry into force today (18 January) of new obligations under the Maritime Labour Convention (MLC 2006) which require shipowners to have compulsory insurance to cover abandonment of seafarers, as well as claims for death or long-term disability of seafarers. The 2014 amendments to the MLC 2006, which comes under the auspices of the International Labour Organization (ILO), are based on guidelines which were developed by a joint IMO/ILO working group…
Govt Okays India-UAE Pact on Maritime
Indian Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Memorandum of Understanding (MoU) between India and the United Arab Emirates on Institutional Cooperation in Maritime Transport. The proposed MoU will pave way for facilitation and promotion of maritime transport, simplification of customs and other formalities, wherever possible, observed in Ports and facilitation of the use of existing installations for the disposal of waste. The MoU will enable…
TechnipFMC Begins Operations Post-merger
TechnipFMC has begun operating as a unified oil and gas services company following completion of the merger of Houston-based FMC Technologies and paris-based Technip. Now with a combined 44,000 employees, the new TechnipFMC will work on oil and gas projects, technologies, systems and services “from concept to project delivery and beyond” with headquarters in Houston, London and Paris. A key focus for TechnipFMC will be project economics across subsea, onshore/offshore and surface, the company said in a press release.
World Energy Trends: What’s New in Floating Production
Oil pricing continues to hover in the mid-$50s, market confidence is slowly returning and the production floater fabrication market is stirring. A major order for a production semi was placed in early January -- with Samsung receiving a contract to build the production semi for BP's Mad Dog Phase 2 project. The $1.27 billion unit will have capability to produce 110,000 b/d oil from 14 production wells. It will be used to develop further oil discoveries near the original Mad Dog Spar in the Green Canyon area of the GOM.
Odebrecht Tries Again to Shed Colombia River Stake
Brazilian construction conglomerate Odebrecht is looking to dispose of its entire stake in Colombia's Magdalena River navigability project, as the company battles corruption allegations across Latin America, an official told Reuters. Odebrecht had last year planned to give up most of its 87 percent stake in the Navelena consortium, tasked with the 2.5 trillion peso ($854 million) effort to increase cargo capacity on the river, sending the government on a fruitless months-long search for a replacement. But the company later decided to keep a majority of its share after Japan's Sumitomo Mitsui bank said it would finance $250 million of the project.
Hanjin Shipping's Sale of Total Terminals Okayed
Bankrupt South Korean shipping line Hanjin Shipping Co Ltd won U.S. court approval at a hearing on Wednesday for the $78 million sale of its stake in U.S. terminal operator Total Terminals International LLC, overcoming objections of container companies. "My decision is to approve the sale," U.S. Bankruptcy Judge John Sherwood said, adding he would approve the transfer of the sale's proceeds to South Korea. The container companies are creditors of Hanjin and were concerned whether the shipping line was getting top dollar for its 54 percent stake in Total Terminals…
Oil and Trump: Russians Full of Optimism in Davos
What a difference a year makes. Twelve months ago, the mood of the Russian delegation at the World Economic Forum in Davos was distinctly gloomy, with oil prices near 12-year lows below $30 per barrel and Western sanctions depressing their economy and financial markets. Since then, however, Russian stock and bond markets have risen about 50 percent, boosted by rebounding oil and - more recently - expectations the new U.S. presidency of Donald Trump will ease the sanctions imposed over Moscow's actions in Ukraine. Russian officials and company executives at the forum attended by the world's political and business elites in the Swiss Alps this week were far more bullish, with many predicting the markets rally would continue this year.
NIL Supplies GenSet for FDNY Fireboat
A marine power generation and climate control products manufacturer Northern Lights, Inc. (NLI) has announced completion of a 235kW Commercial Series generator set for the Fire Department of New York. The unit – M235C13.11NYFD – was built with a number of specifications unique to the requirements of metropolitan fire-fighting, including a nonstandard base pan, shutdown switches and USCG fuel lines plumbed to the base frame. The unit was completed to ABS and USCG standards and included a special “fire engine” red paint scheme.
Optimizing Aberdeen's Harbour Expansion Design
A £350m ($431m) development plan to expand Aberdeen Harbour was approved on December 19, 2016. HR Wallingford has been involved in the project from its initial concept stages in 2010, and will be working with Aberdeen Harbour Board right through to construction, and undertaking modelling work for the approved contractor, Dragados UK Ltd. The new facilities will include 1,400 meters of new quay, with a water depth of up to 10.5 meters. Construction will begin in early 2017, with the project due to be completed in 2020.
Worldwide Ferry Safety Association 2017 Conference
“2017 may be the global breakout year for ferries,” says Dr. Roberta Weisbrod, Chief Executive of the Worldwide Ferry Safety Association (WFSA). She takes this viewpoint because of the tremendous expansion of ferries in India, Philippines, Thailand, new beginnings in West Africa, and the high profile expansion of the Citywide ferry service in New York City, where the WFSA’s third conference on International Ferry Safety and Technology conference will be held on May 11-12, 2017.
Ivory Coast's Main Port Shut Down
Paramilitary gendarmes firing in the air sealed off access to Ivory Coast's main port on Wednesday, forcing companies including cocoa exporters to close down, as weeks of unrest in the security forces showed no signs of easing. President Alassane Ouattara, who is also facing a wave of public sector strikes, ordered his defence minister and military chiefs to hold urgent talks with members of the security forces about their grievances in a bid to quell the instability. Ivory Coast has emerged from a 2002-2011 political crisis and civil war as one of the world's fastest-growing economies but the violence, which began with an army mutiny nearly two weeks ago, has hit its image as a post-conflict success story.
PDVSA Terminal 'recovering' after Oil Spill
Shipping operations at one of three docks of Venezuela's main crude exporting port have "recovered" after a "minor" oil spill occurred over the weekend, state oil company PDVSA said on Wednesday, without saying how big the spill was. A spill occurred while loading a vessel bound for India at Jose port's eastern dock, union and shipping sources told Reuters on Tuesday, and also affected other tankers close to the very large crude carrier (VLCC) Nave Quasar, chartered by India's Reliance Industries. PDVSA confirmed the spill on Wednesday and said the situation was under control. "Expert oil industry workers activated a contingency plan over the weekend after a minor incident occurred in the maritime terminal, where an oil spill happened during loading operations," PDVSA said in a statement.
Maersk CEO: Listing of Energy Unit Most Likely
A. P. Moller-Maersk's Chief Executive Soren Skou sees a listing of the company's energy unit as the more likely option, he said in an interview with Bloomberg. He said that the company was still working on finding solutions for the energy unit and is looking at all options but that a stock exchange listing of the unit is probably "the more likely option". Skou replied "yes" when asked if a stock market listing looked as if it would make the most sense at the moment. Maersk, the world's biggest container shipper…
Feds to Offer 122K Acres Offshore NC for Wind
The Bureau of Ocean Energy Management (BOEM) announced that 122,405 acres offshore Kitty Hawk, North Carolina will be offered in a commercial wind lease sale on March 16, 2017. “Today’s announcement demonstrates how our collaborative efforts with Federal, state and local partners over the past eight years have built a foundation to harness the enormous potential of offshore wind energy,” said Secretary Jewell. The Kitty Hawk lease sale is the latest effort in the Obama Administration’s renewable energy program at the U.S.
Felixstowe Port Launches IMO Maritime Day theme
The theme for the International Maritime Organisation (IMO) World Maritime Day 2017 has been launched by the IMO Secretary General, Kitack Lim, during a visit to the Port of Felixstowe. "Connecting Ships, Ports and People" has as key objectives improving cooperation between ports and ships and developing a closer partnership between the two sectors. It will seek to raise global standards for the safety, security and efficiency of ports, and for port and coastal state authorities…
Rotterdam Offshore Expands Operational Capabilities
As of January 2017, Rotterdam Offshore Group has started to upgrade their facilities in the Waalhaven, Rotterdam. ROG has acquired the neighbouring land and buildings to their existing premises allowing the significant expansion of their quayside, storage as well as office capabilities. ROG will now be able to accommodate vessels up to 320 m in length where previously the maximum vessel length was 200 m. In March 2017, the project to demolish the existing company buildings will begin and the construction of the new state of the art office and workshop will start.
OPC, CHEC ink deal for Puerto Cortes expansion
Operadura Portuaria Centroamericana SA de CV (OPC) has signed a contract with China Harbour Engineering Company (CHEC) for the first phase of the expansion of the Specialized Container and Cargo Terminal in Puerto Cortes, Honduras. The first phase covers the construction of a 350-meter long berth with a controlling depth of 15.5 meters, two trestles that will be connected to the existing yard, and dredging of the bay up to 14 meters deep. The new berth will be equipped with two super post-Panamax quay cranes, bringing OPC’s total number of quay cranes to six.
Environmental Discount for More Vessels at Gothenburg
Last year, one in three ships at the Port of Gothenburg received an environmental discount on the port charges. This represents an increase of 83 per cent on the previous year. Heading the discount list are Donsö-based shipping companies Tärntank Ship Management AB and Furetank AB, whose vessels are powered by liquefied natural gas. The Port of Gothenburg rewards vessels that are environmental high performers. One in three vessels that called at the largest port in Scandinavia last year were classified as green according to the industry environmental indexes.