Sinotrans Shipping News

China's first "smart" ship embedded with a domestically-developed intelligent navigation system made its debut in Shanghai, according to official media Xinhua. China Daily also reported that the world's first smart ship, developed and built by China State Shipbuilding Corporation (CSSC),  has started its first trial voyage in Guangzhou, capital of Guangdong province. Christened as 'Great Intelligence' (Great Smart) 179-meter-long ship  is 32-meters-wide and 15-meters-high, with a maximum loading capacity of 38,800 tonnes. The report said that it is installed with SOMS, a China-Developed marine system with autonomous learning ability and intelligent operation system.

Eleven container liner transportation companies have promised to cut or standardize the Terminal Handling Charges (THC) in order to lower nearly 3.5 billion yuan burden of export enterprises each year, according to National Development and Reform Commission (NDRC). According to a report in Shanghai Daily, the shipping companies include  China COSCO Shipping Cooperation, Maersk line, Mediterranean shipping, Hapag-Lloyd AG, Evergreen Marine, Hyundai Merchant Marine, Nippon Yusen Kaisha, Mitsui OSK Lines, Sinotrans Shipping. These companies have written to the NDRC and Ministry of Transport promising in standardize THC by adjusting cost standard. Chinese trading companies "reported" the excessively high and non-transparent surcharges to the NDRC.

Chinese shipping major Sinotrans has signed with Greek shipowner Dynagas and China LNG Shipping (CLNG) for the joint purchase of five Arctic-class LNG carriers from South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME). The agreement is structured as five separate joint ventures between the parties; each venture includes membership in the shipbuilding contract and in a 25-year time charter of the vessel to Yamal LNG. The time charter is for about $20 million per month per vessel. Upon the JV completion, the company indirectly owns 25.5% in the deal, whereas CLNG holds 25.5 percent stake and  Dynagas the remaining 49 percent. Total construction cost for the five vessels is estimated at $1.6 billion.

Chinese transport giant China Merchants Group looks set to takeover Sinotrans & CSC in the potential merger between the two shipping giants in China, reports Reuters. The two companies have been locked in reorganization talks, financial magazine Caixin  said, citing sources close to China Merchants. Officials from both companies declined to comment on the talks when contacted by Reuters on Tuesday. Sinotrans & CSC Holdings have announced that the parent group is undergoing strategic restructuring, adding to speculation that a tie-up between the conglomerate and its state-owned peer China Merchants Group is imminent. Sinotrans Shipping…

Sinotrans Shipping has ordered four new energy-saving containerships of 1,900 teu in capacity each at CSSC Huangpu Wenchong Shipbuilding Company for $98.2mln.   The four newbuildings, each costing $24.55m, are scheduled to be delivered from the shipyard in May, June, September and November 2017, respectively.   A 10% deposit has been placed by Sinotrans with the balance payable in four instalments.   The construction cost of new vessels is relatively low and the company has an advantage of sufficient capital resources, said Sinotrans   The construction of such energy-saving containerships will enable the company to optimise the composition of its fleet of containerships, it added. It can also expand the capacity of its self-owned fleet and reduce the ship chartering cost.

China Merchants Energy Shipping, Sinotrans Shipping and Greek shipping firm Dynagas are in talks to form a joint venture to build five vessels to ship liquefied natural gas (LNG) from the Arctic, the firms said. China Merchants said in a stock exchange statement on Tuesday that its board had approved a proposal allowing subsidiary China LNG Shipping to take a 25.5 percent stake in the joint venture, which will pay $1.59 billion for the ships. Sinotrans, a unit of state-owned Sinotrans & CSC Holdings on Monday said it would take a 25.5 percent share of the joint venture without revealing who its partners were. Dynagas, a private Athens-based LNG shipping firm, will take a 49 percent stake, China Merchants' statement said.

Sinotrans Shipping, one of China’s largest shipping companies, is in negotiations to take part in a joint venture to commission the building of five Arctic LNG carriers, says the company's stock market announcement. Sinotrans Shipping said it expects to take 25.5 percent of the shares in the joint venture without revealing any further information. Meanwhile, a report in Reuters said that China Merchants Energy Shipping, Sinotrans Shipping and Greek shipping firm Dynagas are in talks to form a joint venture to build five vessels to ship liquefied natural gas (LNG) from the Arctic. According to the plan, the five vessels will be jointly invested by Dynagas (49%), CLNG (25.5%) and Sinotrans Shipping (25.5%). Total price of the vessels is about $158.7m.

Sinotrans Shipping slid back into the red for the first half of 2015, turning to a $18.3m loss from a small $2.3m profit in the previous corresponding period. The dry bulk and container shipping arm of Chinese state-owned Sinotrans & CSC Group continues to feel the pain of low rates. The  company is now considering diversifying its shipping business. Revenue of the Hong Kong-listed  company dropped 19% year on year (y/y) to $485.1 million , a stock filing of Sinotrans Shipping said on 14 August. ”The recovery of global economy was slow and uneven, among which the growth of developed economies has picked up but was still weaker than anticipated, while the increase in emerging economies such as China continued to slow down.

China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans&CSC, has signed a two-year crude shipping contract with Dalian-based West Pacific Petrochemical (Wepec), operated by PetroChina. The contract will be extended by one year with approvals from both parties, according to a stock exchange announcement filed by CMES. The shipping rates will be determined according to market levels. West Pacific Petrochemical is a refinery operated by PetroChina, while China VLCC is the largest very large crude carrier (VLCC) operator in China. China VLCC’s fleet has grown to 31 VLCCs with the delivery of two new vessels – New Prosperity and New Achievement – and the acquisition of secondhand, 2008-built New Enterprise.

The board of directors of Sinotrans Shipping Limited announced that due to retirement, Mr. Hu Hanxiang has tendered his resignations as independent non-executive director, chairman of the remuneration committee and committee member of the nomination committee of the Board of the Company with effect from 5 August 2014. Mr. Hu has confirmed that he has no disagreement with the Board and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company. The Board of the Company further announces that Mr. Zhou Qifang, an independent non-executive director of the Company, was appointed as the chairman of the remuneration committee in replacement of Mr. Hu Hanxiang with effect from 5 August 2014.

Loss-making shipping company Nanjing Tanker Corp will be delisted from the Shanghai Stock Exchange after a five-day grace period, marking the first time for a company backed by the central government to be dropped from a domestic exchange. The delisting comes after the government allowed China's first-ever public bond default in March and underscores the difficulties facing domestic companies saddled with record debt in a slowing economy. The delisting had been widely anticipated after the company said in January it was poised to post its fourth straight year of loss, breaching exchange rules. A statement carried on the Shanghai exchange's official microblog on Friday said Nanjing Tanker will be delisted after booking losses from 2010 to 2013.

Sinotrans Shipping have signed contracts for two firm 78,000 DWT Panamax at Jiangnan Shipyard. This order is understood by Clarkson Hellas to have been under discussion for some time, and commits two remaining slots within end 2015 basis the yard’s existing Panamax design. It has also been reported that the same owner has ordered four firm 64,000 DWT Ultramax at Chengxi Shipyard for delivery within 2016, with the deal having been concluded just prior to the Lunar New Year. At Qingshan Shipyard…

Container ship newbuildings figure most active in the latest weekly news from Clarkson Hellas, with the majority of orders placed with China and Korea shipbuilders. Clients of Diana Shipping reports Clarkson Hellas in its Weekly Bulletin have announced a further order for one 82,000 DWT Kamsarmax at Sinopacific’s Dayang facility. Based on the Sinopacific MHI 82 design, the vessel is planned for delivery in the second quarter of 2016. Jinling Shipyard took an order for four firm 64…