Marine Link
Sunday, February 26, 2017

US Tanker Liberty Sails for Sea Trials

Liberty (Photo: NASSCO)

U.S. shipbuilder General Dynamics NASSCO said it has sent the newly built Jones Act tanker Liberty to sea for testing and trials. The 610-foot-long Liberty set sail for the first time on Monday, February 20 to undergo sea trials before delivery later this year. Liberty is the third and final tanker to be constructed as part of the ECO Class program for SEACOR. The three vessels are each 50,000 deadweight ton LNG-conversion-ready product carriers with a 330,000 barrel cargo capacity. The other two vessels in the series, Independence and Constitution, were delivered in 2016.

Tanker Market Facing Test

Graph: Clarksons Research

The tanker market has certainly had some tumultuous times of late, points out a report by Clarksons Research. Crude tanker earnings picked up in 2014, averaging nearly $27,000/day, and surged to an annual average of around $50,000/day in 2015. Things started to cool off into 2016, but in the full year average earnings were still fairly healthy at just under $30,000/day. They say two’s company; and these positive conditions did seem to have been brought about by the fortuitous lining up of two key factors.

Keel Laid for Teekay’s First New Canada Tanker

Photo: Teekay Corporation

Teekay Offshore will be the sole supplier and operator of shuttle tankers sfor East Coast Canada(ECC), says Teekay Corporation. On February 15, the keel laying ceremony for Teekay’s first shuttle tanker newbuilding for ECC took place at the Samsung Heavy Industries shipyard in Korea. This milestone marks the end of the block building period as well as the beginning of the next phase – to complete the newbuilding with all its systems. The shuttle tanker, the Beothuk Spirit, is expected to be delivered in August of 2017.

Iraq Plans to Acquire "Large Fleet" of Oil Tankers

File Image (CREDIT: AdobeStock)

Iraq plans to acquire a "large fleet" of oil tankers to transport the OPEC nation's crude to global markets, Oil Minister Jabar al-Luaibi said in a statement on Friday. The nation's tanker fleet was largely destroyed during the U.S.-led offensive to dislodge Iraq from Kuwait in 1991, according to the state-run Iraqi Oil Tankers Company's website. The company owned as many as 24 tankers in the 1980s. "The ministry is keen to restructure the company and develop its operations by building and buying a large fleet of tankers," Luaibi told the company's management, according to the statement.

DryShips Sails Back into Tanker Market with Two Modern Vessels

Image: DryShips Inc

Greek owner of drybulk carriers DryShips Inc. has announced that it is re-entering the tanker shipping market as it agreed to purchase an Aframax tanker and a very large crude carrier (VLCC). -  One 113,644 DWT Aframax tanker currently under construction in South Korea. The Company expects to take delivery of this vessel sometime in the second quarter of 2017. The vessel is expected to be employed in the spot market. - One 320,105 DWT Very Large Crude Carrier built in 2011. The Company expects to take delivery of this vessel sometime in the second quarter of 2017.

Asia Tankers-VLCC Rates to Slide Further

File Image (CREDIT: EuroNav)

Around 30 VLCC charters in Feb so far, versus 50 last month. About 40 refinery facilities to close for maintenance. Freight rates for very large crude carriers (VLCCs), which fell to multi-week lows on Thursday, could slip further as refinery maintenance in Asia weighs on cargo volumes and chartering activity, brokers said. "The pace of cargoes hitting the market is much slower. This time last month there were 50 VLCC fixtures from the Middle East. There are about 30 now," said Ashok Sharma, managing director of BRS Baxi in Singapore.

MSI: OPEC’s cut is deepest for VLCC, Suezmax markets

Maritime Strategies International (MSI), a leading independent research and consultancy has forecast a testing time for the crude tanker market over the next six months – and perhaps longer if OPEC is successful in extending production cuts beyond the first half of 2017. In its latest Tanker Freight Forecaster* MSI notes that the VLCC and Suezmax markets moved unequivocally downwards in January, with spot rates sliding rapidly from a seasonally strong December. Pressure has persisted in these sectors in February leaving the crude tanker spot market under increasing strain. More mixed dynamics and volatile conditions characterised the Aframax and product tanker sectors in January…

Scorpio Tankers Reports 4Q Loss

Photo: Scorpio Tankers

Scorpio Tankers has reported a fourth-quarter loss of $29.7 million or a loss of 18 cents per share. The shipping company posted revenue of $106.1 million in the period, also exceeding Street forecasts. Scorpio Tankers sharply reduced its quarterly dividend by 92% to $0.01 from $0.125. For the year, the company reported a loss of $24.9 million, or 15 cents per share, swinging to a loss in the period. Revenue was reported as $522.7 million. The Company currently has nine newbuilding vessel orders (eight MRs and one LR2) with HMD and SSME, which the Company refers to as its Newbuilding Program.

GasLog LNG Services Selects E-learning Solution

Pictured in the center-left, Mr. Theofanis SALLIS, General Manager of Operations of GasLog in Greece, along with Mr. Ioannis ATHANASOPOULOS (center-right), Managing Director of Seagull Greece. On the far left, Mr. Antonios LIAPPIS, Marine HR Manager of GasLog. On the far right, Mrs. Archontia LENI, Competency Assurance Manager of GasLog. (Photo: GasLog)

LNG tanker shipmanagement company GasLog LNG Services Ltd. has selected Seagull Maritime’s e-learning material & Competence Management platform for use fleet-wide, in manning offices and online, along with the Crew Evaluation System for its main office in Greece. GasLog LNG Services Ltd. currently operates a fleet of 23 LNG tankers with an extensive new building program underway. “At GasLog we pride ourselves on our outstanding record of safety, both for our people and the environment within which we work.

Asia, Mideast Product Tankers Idled on Oversupply

File Image: Credit BMT

Lower product shipments from India, Mideast; diesel comes off floating storage, frees up ships. Dozens of tankers used to carry refined oil products are sitting idle in Asia and the Middle East as slow trade and an oversupply of ships have cut daily earnings to as little as a fifth of last year's level, shipbrokers and traders said. Shipping data in Thomson Reuters Eikon shows around 50 product tankers currently floating idle off Singapore and Fujairah, United Arab Emirates. Besides…

MOL to Invest in Seajacks International

One of the world's largest Self-Elevating Platform vessels, the Seajacks Scylla, owned and operated by Seajacks. Photo: Seajacks Ltd

Mitsui O.S.K. Lines is investing in self-elevating platform vessel operator Seajacks International Limited (Seajacks) to move into offshore business following FPSO, FSRU, Shuttle Tanker, and Subsea Support Vessel. MOL has announced a plan to acquire a 5% share in Seajacks, which owns and operates five Self-Elevating Platform vessels, from Marubeni Corporation. This is a new offshore business for MOL, following FPSO, FSRU, shuttle tanker, and subsea support vessel. It is also the…

LR Tankers Taken for Gasoline Storage in Asia

Image: OFE

Singapore gasoline cracks have averaged $10.72/bbl in February so far, down by 12 percent y-o-y but still relatively firm. Robust demand from the Middle East and intra-Asia as well as a flurry of both planned and unplanned refinery outages have been supporting gasoline cracks. ADNOC recently bought nine 27 kt cargoes over March-April delivery as its 127 kb/d RFCC remains shut from a fire. The shutdown of Pertamina’s 125 kb/d Balongan refinery and TPPI’s reformer in Tuban also led to firm buying from Indonesia, Asia’s largest gasoline importer.

China Sells Ships Online

Image: Varada Marine Group

Chinese Maritime Court has sold five vessels of bankrupt Wenzhou Shipping, subsidiary of Zhejiang Shipping Group,  through online auctions on Taobao.com  for a  a total price of $22.81m. The auctioned ships include 2011-built 57,000-dwt supramax bulker Zhe Hai 167, 2009-built 33,400-dwt handysize bulker Zhe Hai 162, 2009-built 23,500-dwt handysize bulker Zhe Hai 156 , a tugboat  and an oil barge. Singapore-based company Varada One's vessel was auctioned off on online shopping platform Taobao  for $11.7,  Xinhua news agency reported. The VLCC Varada Blessing is 1993-built, 300,000 dwt tanker.

Nordic American Offshore Announces Public Offering

Photo:  Nordic American Offshore

Nordic American Offshore (NAO) has announced an underwritten public offering of 33,333,333 common shares pursuant to the Company’s effective shelf registration statement. Morgan Stanley & Co. LLC, DNB Markets, Inc. and Skandinaviska Enskilda Banken AB (publ) are acting as joint bookrunning managers for the offering. The Company also intends to grant the underwriters a 30-day option to purchase 5,000,000 additional common shares. At the Company’s request, the underwriters have…

Teekay Renews Shuttle Tanker VSAT Contract

(Photo: Marlink)

Marine energy transportation, storage and production company Teekay will continue to utilize Marlink’s Sealink VSAT solution across its entire shuttle tanker fleet, following a recent contract extension and upgrade. Teekay, the world’s largest owner and operator of shuttle tankers, has employed Marlink’s high bandwidth global Sealink VSAT solution for its entire shuttle tanker fleet since 2011. The latest contract extension and upgrade secures Teekay’s ability to benefit from remote operations and support crew welfare…

Odfjell Returns to Profit

Photo: Odfjell SE

Odfjell SE today reported preliminary full year and Q4 2016 results, showing improvement in financial performance in 2016 in spite of challenging markets. Efficiency programs continue to increase competitiveness, and the balance sheet is substantially strengthened. For the full year, Odfjell reports net results of USD 100 million, compared with net results of USD -36 million in 2015, and improved full year EBITDA to USD 238 million, from USD 190 million in 2015. The Q4 results show stable underlying operational performance…

Frontline Says Offer for DHT Remains 'Compelling'

Photo: DHT Holdings

Oil tanker firm Frontline reiterated its all-share offer for smaller rival DHT Holdings on Thursday despite the latter's rejection. Last month Frontline made a non-binding offer to acquire all DHT's outstanding shares in the hope of creating the largest private tanker firm in the world. DHT rejected the offer as "wholly inadequate" on Monday. "We believe that our offer to DHT shareholders is highly compelling since it provides a meaningful upfront premium," Frontline CEO Robert Hvide Macleod said in a statement, adding that DHT had declined to enter into talks with Frontline.

Gulf Navigation on Recovery Path

Photo: Gulf Navigation

Dubai-based shipper Gulf Navigation announced its best annual results for eight years, on account of the improvement in spot tanker rates and the reclassification of liabilities. In a statement, the company said it had benefitted from ‘strong and consistent financial turnaround and transformation’. It has reported net annual earnings of AED 136.6m ($37.2m), against AED 20.2m in 2015. Profits for the fourth quarter hit Dh5.4m, compared with Dh4.5m a year earlier. “Further improvement…

Pirates Kidnap Cargo Ship Crew Nigerian Waters

Pirates have kidnapped seven Russians and one Ukrainian after attacking the cargo ship the BBC Caribbean off the coast of Nigeria, the Russian embassy said on its official Twitter account. The embassy has asked Nigerian authorities to assist in locating the abducted people, it said late on Tuesday. The Nigerian navy and police were not immediately available for comment. The general cargo vessel BBC Caribbean is managed by Briese Schiffahrts. "The armed pirates approached (the vessel) in a boat, captured the crew and left on the boat at the direction of the Nigerian shores," said Pavel Fedulov, the director of a Briese Schiffahrts subsidiary in St Petersburg, according to Russian news organisation RBC. No firearms were used during the attack, he was quoted as saying.

Record crude oil tanker deliveries adds instant freight rate pressure - BIMCO

The level has been dwarfed by the tremendous amount of deliveries in January 2017. (Image VesselsValue / BIMCO)

On an unprecedented scale, 5.5m DWT of crude oil tanker capacity (up 220% from January 2016), has already been delivered in 2017 (according to preliminary data from VesselsValue.com). January 2017 already accounts for 22% of the crude oil tankers previous year’s total deliveries. In comparison to the totals of 2015 and 2014, this 2017 figure amounts to 48% and 51%, respectively. January 2016, in terms of crude oil tanker deliveries of2.5m DWT, hit record levels in relation to the previous two years. However, that level has been dwarfed by the tremendous amount of deliveries in January 2017.

D’Amico Sells Two MR Vessels

Photo: d’Amico ​Società di Navigazione SpA

D’Amico International Shipping (DIS) announced that its operating subsidiary d’Amico Tankers (Ireland) sold MT High Endurance and MT High Endeavour, two vessels in favour of Sea World Tankers a clients of Sea World Management SAM, for a consideration of US$ 13.5 million each. The two 46,992 dwt medium-range product tanker vessels were built in 2004 by STX, South Korea. d’Amico Tankers will maintain the commercial employment of the Vessel having also concluded with the Buyer a 4 year time charter agreement at an attractive rate.

Stolt-Nielsen's Profits Slip

Stolt-Nielsen Limited today reported unaudited results for the fourth quarter ended November 30, 2016. Net profit attributable to shareholders in the fourth quarter was $22.8 million, with revenue of $463.0 million, compared with a net profit of $22.2 million, with revenue of $474.1 million, in the third quarter of 2016. Net profit attributable to shareholders for 2016 was $113.1 million, with revenue of $1,879.9 million, compared with a net profit of $132.7 million, and revenue of $1,983.7 million in 2015. * Stolt Tankers reported an operating profit of $30.4 million, down from $31.4 million, as the chemical tanker market remained soft. * The Stolt Tankers Joint Service Sailed-in Time-Charter Index decreased to 0.72 from 0.76.

Scorpio Tankers Sell Two, Receive New MR Tankship

Image courtesy of Scorpio Tankers

Monaco-based Scorpio Tankers says it has entered into agreements to sell its two 2004 built, LR1 product tankers, 'Noemi' and 'Senatore' and has also taken delivery of a MR product tanker newbuilding, 'STI Duchessa', from Hyundai Mipo Dockyard Co., Ltd. of South Korea. The sales of the two 2004-built tankships for altogether US$44 million are expected to close in April 2014. The new vessel, STI Duchessa, is fixed to be chartered out for up to 120 days at approximately $19,000 per day. About Scorpio Tankers Inc. Scorpio Tankers Inc.

Maritime Reporter Magazine Cover Feb 2017 - The Cruise Industry Edition

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