Colonial, Shippers to Face off over Pipeline Congestion
Executives from Colonial Pipeline, which runs the main fuel artery for the U.S. Atlantic Coast, will be questioned by customers and regulators on Wednesday after worsening congestion spawned secondary markets for space on the system, driving up costs for wholesale diesel and gasoline buyers. Refiners, retailers and trading houses have jockeyed to move barrels in an increasingly competitive race for space on the line since a 300,000 barrel per day expansion between 2011 and 2013 failed to ease traffic as shippers increased on the 2.5 million bpd system. Customers including Costco Wholesale Corp complain that so-called line space trading adds business costs, prompting a rare hearing at the Federal Energy Regulatory Commission. "We have very sophisticated customers. Of course they've adapted to the system as it is. They are serving the marketplace," Colonial's Chief Financial Officer David Doudna told Reuters. Competition is so tough that so-called line space - a spot market - has sold for 15 cents or more per gallon. That means the person who buys half of another's 100,000 barrels of allotted space spends $314,999 on top of Colonial's per-barrel rate to move fuels. That could amount to millions of dollars a year in extra costs. Even costlier is a more long-term secondary market that sprung from Colonial's perpetual crowding: shipper history transfers that allow newer players a way to access space allocated to
Massive Royal Caribbean Cruise Ship Docks in Norfolk
Royal Caribbean’s Brilliance of the Seas, one of the biggest ships on the seven seas, docked in port at Nauticus, Norfolk for a short time and fueled big business across Hampton Roads. Nearly 3,000 people on-board flooded on the streets of Norfolk. More than 500 tourists took advantage of shore excursions and day trips to Colonial Williamsburg and Jamestown. The cruise ship, which has 860 crew members
Europe Rushes to Meet US Fuel Demand, Spiking Freight Costs
European oil traders rushed on Tuesday to book vessels to carry gasoline to consumers on the U.S. East Coast left stranded without their main domestic supply source, more than quadrupling shipping costs, traders and ship brokers told Reuters. An explosion late on Monday on the Colonial pipeline, which carries roughly one-third of the 3.2 million barrels per day (bpd) of gasoline consumed on the East Coast, makes U.S. drivers more reliant on imported oil products.
Sea Tow Awards New U.S. Franchises
Sea Tow Services International Inc., announced the opening of four new franchises: Sea Tow Buzzards Bay (Mass.), Sea Tow Montauk (N.Y.), Sea Tow Lake Eufaula (Ala.) and Sea Tow Lake Lewisville (Tx.). The company also announced the sale and transfer of ownership of three existing franchise areas. Captain Walter Garschagen is the new owner of Sea Tow Central Hudson (N.Y.), Jim and Jan Pulley are the new owners of Sea Tow Table Rock Lake (Mo.), and Capt
Rogers Appointed President of Seabulk Towing
Seabulk International, Inc. announced the appointment of Kenneth M. Rogers as President of its Seabulk Towing subsidiary. He was also elected a corporate Senior Vice President, reporting directly to President and Chief Executive Officer Gerhard E. Kurz. Rogers, 46, joined Seabulk Towing in 2001 as Senior Vice President for Marketing. He will be based in Fort Lauderdale and succeeds William R. Ludt, who is retiring after 23 years with the Company.
Niger Could Sign Deal With Areva soon
The government of Niger, the world's fourth largest uranium producer, is on the verge of renewing an agreement with French state-controlled nuclear group Areva, the West African nation's mines minister said on Sunday. Niger, one of the world's poorest nations, is pushing to boost revenues from its uranium, but Areva, which dominates the sector in the country, has claimed that increasing royalties would make its operations there unprofitable.
Singapore Shipping Line NOL a Takeover Target?
Singapore's Neptune Orient Lines (NOL) may be shaping up as a takeover candidate, a report in Bloomberg said. The appeal of the shipping company that helped cement Singapore's status as a global trade hub has increased after it agreed to sell its logistics unit last month for US$1.2 billion to cut debt. Possibility of a sale may help Temasek Holdings Pte, the Singapore state's Sovereign Wealth Fund (SWF) that controls Neptune Orient, bolster returns. The $1
USCG Training Center Holds Heritage Event
Members of the U.S. Coast Guard Training Center, Cape May, N.J., were treated to a speech on the history of the Lenape Indian tribe during a Native American Heritage event held on base, Nov. 5. Wesley Dunn, vice president of the Museum of Indian Culture, presented interesting facts about the tribe that inhabited the area more than 500 years ago. Additionally, Dunn brought many Lenape artifacts which he displayed for members to examine.
Weak US Imports Push European Gasoline East
Unusually bloated gasoline inventories in the U.S. during peak summer driving season has kept the transatlantic arb barely workable. EIA data indicates that gasoline imports into the U.S. East Coast (PADD 1) for June averaged 549 kb/d so far, down by 15.4 percent m-o-m. As such, an atypical influx of LR tankers carrying gasoline from Europe have been fixed to the East in recent weeks. At least 6 LR2 and LR1 tankers loaded with gasoline are heading from the ARA region to AG/Singapore in June.
UTV Training Prepares Towing Industry
Quality Management International, Inc. has developed a two-day training program for professionals in the towing vessel industry. This course for Uninspected Towing Vessels (UTV) focuses on all the current regulations including clauses of the ISM Code relevant for tugs, towboats and barges. By attending this class, towing professionals can get ahead of the curve and be well-prepared for the impending inspections.
Rapp Marine to Equip New OSU Research Vessel
Rapp Marine said it has been selected by Gulf Island Shipyard, LLC, as the Overboard Handling System Single Source Vendor (OHS SSV) for Oregon State University’s (OSU) 193 ft x 41 ft multi-mission Regional Class Research Vessel (RCRV), with the option of two additional vessels. Funding for the RCRV project is provided by the National Science Foundation (NSF), and the contract design of the RCRV was developed by Glosten
OTI Installs Thordon's Largest TG100 Seal
Offshore Towing Inc (OTI) has completed the refurbishment of its 1974-built 9000hp-class tug Zion Falgout at the Conrad Deepwater shipyard, in Morgan City, La. The milestone project involved the retrofitting of TG100 seals in what marks OTI’s first mechanical shaft seal installation and the largest diameter TG100 series seals ever supplied by Thordon Bearings. An 11.75in (298mm) diameter seal was installed to each propeller shaft of the 66.88t bollard pull twin-screw workhorse.
USS John S. McCain Departs Changi Naval Base
The guided missile destroyer USS John S. McCain (DDG 56) departed Changi Naval Base Oct. 5, to meet heavy lift transport vessel MV Treasure. Over the next few days, John S. McCain will be towed to deep water, where the heavy lift vessel will lower itself, secure the ship on a platform and then raise back up out of the water. After the process of loading the ship is complete, Treasure will transport John S
Escort Tug Trio Named in Hammerfest
Østensjø Rederi’s three new escort towing vessels were officially named on August 26 in Hammerfest. Sponsors of the trio were Unni M. S. Fjær, Inger Vik Framnes and Siv Halvorsen officially naming the vessels Dux, Pax and Audax. In attendance on behalf of designers Robert Allan Ltd. was Rob Allan, Executive Chairman of the Board, on behalf of Østensjø were Chairman of the Board Johannes Østensjø
Ivy Marine Obtains Sub M TSMS Certificate
Ivy Marine, LLC, a two-towboat company out of Mobile, AL has become one of the first companies in the United States to obtain their TSMS Certificate. They are also the smallest company in the country to have obtained this certification. “Ivy Marine partnered with Tug & Barge Solutions to develop a Towing Safety Management System (TSMS) that meets Subchapter M and the AWO RCP standard,” said Steve Wilson, Ivy Marine’s President
ROG Ship Repair Completes FPSO Moonpool Project
Holland’s ROG Ship Repair said it has come to the aid of a Floating Production & Storage Offshore (FPSO) vessel ran into problematic weather conditions while being towed from Europe to the Middle East. Having recently been assigned a new contract, the 89,184 dwt, 248.1 m long FPSO Aoka Mizu (Japanese for Bluewater), owned and operated by Holland’s Bluewater Energy Services, will be utilized for the early production system (EPS) phase of the development on
US Denies Iran Report of Confrontation with US Vessel
An Iranian military vessel confronted an American warship in the Gulf and warned it to stay away from a damaged Iranian fishing boat, Tasnim news agency reported on Sunday, but the U.S. Navy denied any direct contact with Iranian forces. The American vessel turned away after the warning from the Iranian ship, which belonged to the naval branch of the Iranian army, according to Tasnim. The Iranian military vessel then towed the fishing boat
Damen Delivers Stock Workboat to ISA Towage
ISA Towage B.V. (formerly known as V.O.F. Sleepboot ISA) has taken delivery of a Shoalbuster 3209 from Damen Shipyard Hardinxveld (DSHa). The vessel was already in stock at the yard and was handed over to the client within four weeks of the order being agreed. Damen’s extensive range of Shoalbuster vessels offers some of the most versatile workboats available in the marketplace today, capable of taking on a wide variety of roles.
Novacavi Cables for Seascape
Italy-based cable manufacturer Novacavi reports an additional supply of special fishing tow cables for long-term customer Seascape BV. Already tested with full satisfaction, these fit for purpose cables are used onboard special equipped Dutch vessels for flat fish fishing with electric pulse system in North Sea. Cables have to be continuously pulled backward and forward over a pulley connecting winch, gear and nets on the same place for a 24 hours service six days per week.
Retail Gasoline Prices Surge in Harvey's Choppy Wake
Nearly a quarter of U.S. refining capacity out; Motiva down for two weeks; Corpus Christi starts to reopen. Retail U.S. gasoline prices hit two-year highs and global shipping routes were scrambled as the nation's largest refiners remained shut on Friday, even as Harvey was losing strength. Major fuel pipelines feeding the U.S. Northeast and Midwest have been either closed or severely curtailed, prompting shortages in some areas and dramatic spikes in wholesale prices.
Bureau Veritas Issues New Rules for OSVs, Tugs
Classification society Bureau Veritas has issued new rules for the Classification of Offshore Service Vessels and Tugs, including new class notations for pipelay vessels, accommodation units, offshore construction vessels and offshore support vessels. Gijsbert de Jong, Bureau Veritas Marine Marketing and Sales Director, said: “With this new publication Bureau Veritas provides the industry with a clear framework for the classification of offshore service vessels and tugs based on
Traders Scramble to Avert Regional Fuel Shortages
Mexico buys gasoline from Europe, Asia; in rare move, Europe exports diesel to Brazil. The crippling of the U.S. Gulf Coast refining hub by Tropical Storm Harvey roiled global oil markets on Thursday as traders scrambled to buy gasoline and diesel from distant markets to avert supply shortages in the United States, Mexico and Brazil. A slew of gasoline tankers has been booked over the past two days out of Europe to the United States and Latin America, with around 12
Harvey Impacts Domestic Fuel Network
U.S. drivers are starting to feel the effects of Tropical Storm Harvey in their wallets as the country's fuel distribution network starting at the Gulf Coast and stretching across the country is squeezed by floods, refinery closures and dwindling supplies. At least 3.6 million barrels per day (bpd) of refining capacity is offline and more refineries are at risk of shut downs as the storm relentlessly dumps rain on Texas and heads toward Louisiana.
Weeks Marine Selects Vessel 365 for SubM Compliance
Weeks Marine has selected MarineCFO’s Vessel 365 product to achieve Subchapter M compliance for the 15 tugs in its Marine Services Division. Jan Andrusky, Towing General Manager for Weeks Marine, said, "We are very pleased with the Vessel 365 product. The functionality is exactly what Weeks Marine and the tug and barge industry needs to achieve Subchapter M compliance. Vessel 365 will help us meet regulatory requirements and is an ideal complement to our Towing Safety
Great Lakes Shipyard Builds First Damen Stan Tug
The first of 10 Stan Tug 1907 ICE vessels has been delivered by Great Lakes Shipyard to its sister company The Great Lakes Towing Company, both based in Ohio, U.S. Named Cleveland, the vessel marks a milestone in a licencing program agreed between Damen Shipyards Group and Great Lakes Shipyard following discussions that began in 2014. While the initial agreement is for the series build of 10 tugs for Great Lakes Towing