Vessel Oversupply to Persist in the VLGC Shipping Sector
High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. VLGC rates remain under pressure on account of ample vessel supply and weak arbitrage opportunities caused by low LPG fuel prices. With 64 additional ships due for delivery next year, fleet growth is expected to accelerate to 12% in 2017, further exacerbating the supply gut. Shipowners are hoping that a recent revival in VLGC demolitions might help keep fleet growth in check. Two vessels have been scrapped in recent months, the first such demolitions in this segment since 2011.
Pressure Mounting on VLGCs Rates - Drewry
A wave of cargo cancellations from the US is putting additional pressure on VLGC rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. Two major factors have lowered VLGC rates in recent times: excessive fleet growth and weak arbitrate opportunities caused by low LPG prices. The VLGC fleet has expanded at the rate of 7% quarter-on-quarter over the last four quarters, fast outpacing cargo demand growth. Meanwhile, the price differential between LPG in the US and Asia has averaged a mere $60 per tonne in the third quarter of 2016, down from $208 per tonne over the same period last year. The narrowing gap has squeezed the margin in arbitrage trading, thus affecting employment of VLGCs in this trade.
McDermott, L&T Enter Agreement for India Deepwater Market
McDermott International, Inc. (NYSE: MDR) signed a long-term exclusive agreement with L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of Larsen & Toubro, focused on subsea projects offshore the east coast of India. “This exclusive agreement further strengthens the relationship between McDermott and LTHE, both companies that have successfully cooperated on several earlier projects in India and, more recently, won the Vashishta deepwater development project,” said David Dickson, McDermott’s President and CEO.
SMM India - CLOSING REPORT
With some 3,000 delegates and visitors from all parts of the world, SMM India, shipbuilding, machinery & marine technology international trade fair, closed after the three scheduled days of the exhibition and accompanying conference, held in Mumbai from 7 to 9 April. This second event established SMM India as one of the most important maritime trade fairs on the subcontinent. The state-of-the-art products and new developments presented there met with a great deal of interest from the trade visitors, among whom there was a delegation of thirteen representatives of German industry.
India’s Shipbuilding Gets Into Shape For The 21st Century
“SMM India could provide ample opportunities for useful interaction between various stakeholders and sharing of knowledge to meet the challenges of the market and make full use of the benefits and opportunities offered by the Indian shipbuilding industry,” says Dr. Satish B. Agnihotri, Director-General Shipping, Ministry of Shipping, Government of India. He is referring not only to the international shipbuilding fair, which is to be held for the second time in Mumbai under the SMM brand…
Opening of SMM Int’l Trade Fair, India
The world has come to recognize the potential of the Indian shipping industry, its capability to innovate and grow on the global stage, said APVN Sarma, former Secretary, Shipping, at the inaugural SMM India, shipbuilding, machinery & marine technology trade fair and exhibition. “The SMM exhibition is being organised at a very appropriate time”, said Arun K Mago, Chairman, Advisory Council, SMM India 2009. Mago said, “Though India and China were not affected as much as by other developed countries, it has had an adverse affect on the shipping trade. It has been one of the worst moments for the sector in living memory. SMM India 2009 provides a platform for dialogue and business interaction between over 100 exhibitors from all parts of the world.
SMM India 2009
“The maritime industry will become more and more important for India in the coming years,” said Tobias König, Founder and Managing Director of König & Cie. GmbH & Co. KG, an issuing house based in Hamburg, Germany. A representative of König will be present at the accompanying conference at SMM India 2009. This is the first shipbuilding trade fair on the Indian sub-continent, taking place under quality label of SMM, the leading shipbuilding fair. It is organised by Hamburg Messe und Congress GmbH (HMC) and the two partners and co-organisers INTER ADS Exhibitions Pvt. Ltd. (the largest Indian trade show organiser) and E. J. Krause & Associates, Inc. (a globally active U.S. event specialist), at the Bombay Exhibition Centre in Mumbai from 12 to 14 November 2009.
India Wants UN in Gulf of Aden
According to a report by the Hindustan Times, APVN Sarma, secretary (shipping), who is heading an Indian delegation to the International Maritime Organisation (IMO) in London, has asked the IMO to recommend to the UN to constitute a peacekeeping force under a unified command to keep a check on pirate attacks. (Source: Hindustan Times)
