China, Australia Ports Clogged as Coal, Ore Demand Soars
Around 300 ships caught in jam that would stretch 40 miles; freight rates for biggest coal, ore carrier hit 3-yr high. More than 300 large dry cargo ships are having to wait outside Chinese and Australian ports in a maritime traffic jam that spotlights bottlenecks in China's huge and global commodity supply chain as demand peaks this winter. With some vessels waiting to load coal and iron ore outside Australian ports for over a month, key charter rates have jumped to their highest in more than three years. Placed end-to-end, the total delayed fleet would stretch more than 40 miles, enough to span the English Channel from Dover to Calais and back.
DryShips Ups Its Revolver Facility
DryShips an international owner of drybulk carriers and offshore support vessels, today announced that it has entered into an agreement to increase its secured revolving facility (“Revolver”) provided by an entity controlled by the Company’s Chairman and CEO, Mr. George Economou. The Revolver was amended to increase the maximum available amount by $10 million to $70 million, to give Dryships an option to extend the maturity of the facility by 12 months to October 21, 2019 and to cancel the option of the lender to convert the outstanding loan to DryShips common stock. As part of the transaction the Company has also entered into a Preferred Stock Exchange Agreement to exchange the 4,000,000 (100,000,000 pre-split) Series B Preferred Shares held by the lender for $8.75 million.
DryShips Buys Nautilus Stake, Adds Six OSVs
Greek ship owner DryShips plans to add six support vessels to its fleet by acquiring a large stake in Nautilus Offshore Services. Dry bulk shipowner DryShips has entered into an agreement to acquire approximately 98% of Nautilus OffShore Services Inc. for a purchase price of $87 million plus the assumption of approximately $33 million of net debt. Nautilus indirectly through its subsidiaries owns six Offshore Supply Vessels of which four are Oil Spill Recovery Vessels (OSRVs) and two are Platform Supply Vessels (PSVs), all of which are on time charter to Petrobras until certain dates through 2017. The vessels are managed by TMS OffShore Services Inc., an entity controlled by the Company's Chief Executive Officer, George Economou.
Deadbeat Chinese Shipyards Stick Banks with Default Bill
Chinese banks are stuck in a lose-lose legal battle between domestic shipyards and foreign buyers over billions of dollars in refund guarantees that are supposed to be paid out if shipbuilders fail to deliver on time. One in three ships ordered from Chinese builders was behind schedule in 2013, according to data from Clarksons Research, a UK-based shipping intelligence firm. Although that was an improvement from 36 percent a year earlier, it was well behind rival South Korea, where shipyards routinely delivered ahead of schedule the same year. That means Chinese banks may be on the hook to pay large sums to buyers if the yards can't come through per contract, with little hope of recouping the cash from the yards.
Greek Shipowner Doubts Major China Shipbuilder Can Deliver
China Rongsheng Heavy Industries Group, the country’s largest private shipbuilder, expects to report a substantial full-year loss just months after it appealed to the government for financial help, reports Reuters. Analysts have indicated that the company could be the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn. Greek shipowner DryShips Inc. which has four dry-bulk carriers on order at the company’s shipbuilding subsidiary…
DryShips Appoints Nakhleh CFO
DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced that it named Ziad Nakhleh as the Company's Chief Financial Officer effective November 1, 2009. This position was previously occupied on an interim basis by George Economou, Chairman and Chief Executive Officer. Nakhleh, 37, has over 12 years of finance experience. From January, 2005 to September, 2008, he served as Chief Financial Officer of Aegean Marine Petroleum Network Inc., a publicly traded marine fuels logistics company listed on the New York Stock Exchange, where he led the company's $200m IPO in December 2006.
Aegean Marine Acquires Bunkers at Sea
According to an AP report, Aegean Marine Petroleum Network Inc., a Greek supplier of fuel and lubricants to ships, said it has acquired Bunkers at Sea, a Belgium-based supplier of marine fuel to vessels in port and at sea. Financial terms were not disclosed. Bunkers at Sea serves about 45 ports located throughout Northern Europe. In 2006, the company recorded total marine fuel sales volumes of more than 325,000 metric tons. Aegean Chief Financial Officer Ziad Nakhleh said he expects the purchase to immediately add to earnings and cash flow. The acquisition was financed through the company's existing capital structure. Aegean said it also acquired two bunkering tankers that are operated by Bunkers at Sea.
