Tokyo Marine News

JO Tankers has placed an order for eight 33.000 dwt stainless-steel chemical tankers at China’s New Times Shipbuilding, with deliveries scheduled for 2016 and 2017. The deal consists of firm and optional contracts. The new buildings will join Milestone Chemical Tankers – the jointly owned chartering and marketing arm of JO Tankers and Tokyo Marine. JO Tankers say that the new-buildings will be built to the highest specification. The combination of modern design and modern engines will reduce the fuel consumption by 25% compared to other designs.

Drewry’s latest Chemical Forecaster reports an odd occurrence in the spot market. It would have been another dull quarter in terms of the spot market but for the irrational trend on the Transpacific Westbound, which was uncharacteristically busy. A decline in Chinese economic growth clearly indicates that the spurt cannot be attributed to end-user demand, so the sudden surge in the second quarter was attributable to a widening arbitrage spread between U.S. and Asian prices. The key chemicals were styrene and paraxylene. The greater tonne-mile demand on this trade had a positive effect of absorbing tonnage into this route. Freight rates on the Atlantic benefited from the absorption of vessels on the Transpacific Westbound towards the end of the quarter.

The Port of Los Angeles honored 26 shipping and cruise lines for their participation in the Port’s Vessel Speed Reduction Program (VSRP), an initiative that involves the lowering of vessel speeds when ships approach the Port. The VSRP has resulted in significant decreases in diesel particulate matter, sulfur oxide and nitrogen oxide emissions into the environment since it was established in 2001. For the first time, the Port also honored 12 ship carriers for their participation in the Environmental Ship Index (ESI), an international clean air program that rewards ocean carriers for bringing their newest and cleanest vessels to the Port.

At the 151st Annual Meeting of the Members of ABS, and the subsequent meeting of the ABS Council, industry leaders were elected to serve on a number of bodies that contribute to the operation of the classification society as it fulfills its mission of promoting the security of life and property and preserving the natural environment. "ABS' strength as a global classification society is drawn from its membership and the many regional, national and technical committees that contribute to the process of developing practical, impartial and authoritative standards," said ABS Chairman Robert D. Somerville. •    Robert G. •    James G. •    Maria F. •    Chow Yew Yuen, Keppel Offshore & Marine USA Inc. •    Dr. Jen-Hwa Chen, Chevron Shipping Co. •    Dr.

Inchcape Shipping Services (ISS), a maritime services provider, has created a dedicated US Gulf Documentation Department to meet customer demand for a centralized and streamlined service to handle cargo documentation for import and export activity. The new department will provide expert oversight and guidance for the specific documentation functions that remain in US Gulf ports and provide customers with the best advice and support. Companies already benefiting from the department include Tokyo Marine Europe, Gearbulk and Grieg Star. ISS will now be expanding the service to further key customers with activity across the US Gulf. Michelle Turner has been appointed as Manager for the US Gulf Documentation Department.

Dow Chemical Company and its subsidiary Union Carbide Corporation have filed lawsuits in the US against Odfjell and three other major parcel chemical tanker carriers, Stolt-Nielsen, Tokyo Marine and JO Tankers in relation to violations of antitrust laws in the US, and claimed damages as a consequence thereof. The lawsuits have not yet been served on Odfjell. On September 29, Odfjell ASA's wholly owned subsidiary Odfjell Seachem AS entered into a voluntary plea agreement with the US Department of Justice. Odfjell Seachem AS agreed to plead guilty to a single-count violation of the US Sherman Antitrust Act for allocating customers and thereby fixing prices on certain contracts of affreightment from 1998 to 2002.

Commenting on a lawsuit filed recently by Dow Chemical Co. against four chemical carriers including Stolt-Nielsen S.A., SNSA said that the company believes the Dow Chemical claims are without merit and that it will vigorously defend itself against those claims. The company added that the relationships between its chemical shipping unit - Stolt-Nielsen Transportation Group B.V. - and its customers are governed by contracts that contain arbitration clauses. SNSA said it will move for the courts to compel arbitration as agreed to by customers in their contracts with the company. The other three carriers named in the Dow Chemical suit are Odfjell ASA, Jo Tankers B.V. and Tokyo Marine Co, a unit of Mitsui O.S.K. Line Group.

Sumitomo Marine & Fire Insurance Co. and Mitsui Marine & Fire Insurance Co. on Tuesday announced terms under which they will merge next October, creating Japan's largest non-life insurer with assets of 5.7 trillion yen ($51.6 billion). In a joint statement, the companies said 1.09 Mitsui Marine shares will be allocated for one Sumitomo Marine share. The merged entity will be named Mitsui Sumitomo Insurance Co. with Mitsui Marine president Takeo Iguchi and Sumitomo Marine president Hiroyuki Uemura serving as co-chief executive officers. Mitsui Marine, currently Japan's third-largest casualty insurer, and fourth-ranked Sumitomo Marine agreed to merge in March.

Norwegian tanker company Jo Tankers has confirmed it has received a statement of objections from the European Commission regarding an antitrust probe into bulk liquid shipping companies. The response follows a confirmation from peer Odfjell ASA that the EU Commission had begun formal investigations of it in an antitrust probe. The commission said earlier it had issued formal cartel charges against 'a number of' bulk liquid shipping companies, without naming them. In 2003, the four major chemical tanker operators in Europe -- Odfjell, Stolt-Nielsen Jo Tankers and Tokyo Marine in London -- announced that antitrust authorities raided their offices in Norway, the Netherlands and the UK, investigating a possible cartel.