Marine Link
Tuesday, October 17, 2017

First Four

China Overtakes Korean Shipbuilding

South Korean shipbuilders were overtaken by their Chinese rivals in new orders acquired in the first four months of the year, a London-based market researcher said on Wednesday. South Korean shipbuilders such as Hyundai Heavy Industries Co and Samsung Heavy Industries Co received a combined 6.9 million compensated gross tons (CGTs) in new orders in the January-April period, up 6.9% from a year ago, Clarkson Research Studies said. New orders acquired by Chinese shipyards totaled 8.5 million However, South Korea maintained its No 1 ranking in the global shipbuilding industry in terms of backlogs of orders and the volume of vessels built, the market researcher said. South Korean shipbuilders' combined backlogs of orders totaled 46.4 million CGTs as of the end of April, compared with their Chinese rivals' 34.2 million CGTs and Japanese shipbuilders' 29.7 million CGTs. Korean shipyards built 3.2 million CGTs in the first four months of the year, nearly triple the Chinese shipyards' figure of 1.2 million CGTs. South Korea, home to seven of the world's top 10 shipyards, clinched record-high orders last year because of strong demand for crude-oil carriers and offshore exploration equipment amid high oil prices. Source: Asia Pulse/Yonhap

Good start for Jotun in 2004

The Jotun group generated sales of NOK 2,039 million in the first four months of 2003 which is NOK 244 million more than for the same period in 2003. The group generated a profit on operating profit before tax of NOK 228 million compared to NOK 185 million last year. Sales measured in volume have increased and the strong currency fluctuations of recent years have moderated so that sales measured in NOK more closely reflected the group's growth.

Unitor to Supply Skaugen Fleet

A six-ship fleet of state-of-the-art ethylene carriers building for Norway’s I.M. Skaugen at the Hudong-Zhonghua Shipyard in Shanghai, China are being fitted with a comprehensive range of fire-fighting and fire-protection systems from Unitor. All six ships, known as the Super Coolers, have been specially designed for operation within the Norgas fleet of gas tankers. The first four vessels, Norgas Orinda, Norgas Sonoma, Norgas Petaluma and Norgas Alameda have a capacity of 8,556m³

Northrop Grumman Newport News to Lay Keel

Northrop Grumman Corporation's Newport News sector is teamed with Electric Boat to build the first four ships of the Virginia-class. Texas is the second ship of the class and the first one that will undergo final assembly and delivery at Newport News in 2005. The keel that will be laid for Texas is part of the stern section of the ship. The keynote speaker for the ceremony will be U.S. Sen. John Warner of Virginia. Other ceremony participants will include Northrop Grumman

Tanker Rates Plateau After 90% Surge

Middle East tanker charter rates, up more than 90 percent since the start of the year, appear to have reached a plateau, shippers said. Worldscale rates for chartering a very large crude carrier (VLCC) to transport two million barrels of crude oil from the Middle East to the U.S. Gulf now stand at W82.5-W85, compared with W42.5 at the beginning of January. To Japan rates have risen to W95-W100 from about W52.5. That means the cost of shipping oil to the U.S

Korean Shipbuilding Parts Export to China Surge

© lnzyx / Adobe Stock

China's imports of shipbuilding parts and equipment produced by South Korean firms surged this year, Yonhap reported.   The report quoted Korea Trade-Investment Promotion Agency (KOTRA) saying that China's imports of South Korean shipbuilding parts and equipment reached US$28.3 million in the first four months of the year, sharply up 37.6 percent from a year earlier.    During the cited period, China's overall purchase of such parts edged down 0.9 percent on-year to $71

Lamprell to Deliver 2 Additional Rigs for NDC

NDC Chief ExecutiveOfficer, Abdalla Saeed Al Suwaidi, and Lamprell Chief Executive Officer, Jim Moffat, shake hands after signing the contract award for two further high specification jackup drilling rigs which NDC awarded to Lamprell

Lamprell received a new contract award valued at approximately $365 million from National Drilling Company (NDC) for the construction and delivery of two further high specification jackup drilling rigs of a Super 116E (Enhanced) Class. Lamprell was previously awarded contracts by NDC for a series of six identical rigs and is on schedule to complete construction of the final two jackup rigs, having already delivered the first four on time and on budget

Busiest Capesize Demolition Market Ever

Peter Sand, Chief Shipping Analyst, BIMCO

  The activity on the demolition market is off to a good start in 2015 when looking at dry bulk tonnage, according to international shipping association Baltic and International Maritime Council (BIMCO).   The dry bulk market has long suffered from weak freight rates stemming from falling demand and an oversupply of ships. However, despite worsening freight market conditions, the demolition of dry bulk tonnage has not been adapting fully to this trend as could be expected

TORM Buys Resale MR Tankers from GSI

(Photo: TORM)

Danish ship owner TORM said it has purchased four resale medium range (MR) tankers from Chinese shipbuilder Guangzhou Shipyard International (GSI), with an option to purchase up to four additional MR vessels.   The first four vessels are due for delivery in 2019, and the following four would be delivered in late 2019 – all delivered according to TORM’s specifications.   According to TORM Executive Director, Jacob Meldgaard

Navy Contracts for Sub Conversion

The Navy awarded General Dynamics Electric Boat (GDEB) a cost reimbursement modification, valued at $162,359,000 for the conversion of the USS Georgia from an Ohio Class ballistic missile submarine (SSBN 729) to Ohio Class guided missile submarine (SSGN 729). "This contract modification represents the final contractual step in transforming the first four Ohio Class SSBNs into the most capable strike and Special Forces platform in the Navy," said Capt

Australian Navy: Getting On Board the Gap Year

Gap Year sailors watch from the flight deck as a United States Marine Corps MV-22 Osprey from USS Bonhomme Richard, lands aboard HMAS Adelaide, off the coast of Queensland during Indo-Pacific Endeavour 2017. Photo: Royal Australian Navy

 The Australian Defence Force Gap Year – Navy is an opportunity for young Australians to experience military training, service and lifestyle through a year-long program, with no further obligations on the participant to continue to serve.   The program allows people to experience Navy life as a ‘try before you buy’ scheme during which every opportunity is given to participants to apply for transfer to Permanent Navy workforce categories

Dry Bulk Shipping Gets a Boost from US Coal -BIMCO

© Janis Smits / Adobe Stock

U.S. seaborne coal exports have turned years of negative growth around and seem to be climbing for a third quarter in a row. The increase in total volume is predominantly driven by a growing demand from European importers. East Asian buyers have also ramped up their import of U.S. coal, which is beneficial for the dry bulk shipping industry as it generates a substantial amount of ton-miles, relative to other destinations.  

LPG Shipping Faces Rough Weather

Photo: Dorian LPG Ltd

 After reaching record levels during the first four months of 2017, U.S. LPG export cargoes have seen a number of cancellations or deferments in June and July, said Dorian LPG in a press statement.   Steady domestic demand has kept U.S. propane prices firm and, therefore, priced above levels conducive to the arbitrage trade. U.S. propane inventories have continued to build in recent weeks and could reach levels of 75 million barrels by the end of September 2017.  

Oil Markets Brace for Possible US Sanctions on Venezuela

© Federico Rostagno / Adobe Stock

U.S. oil markets were readying for fallout from potential U.S. sanctions on Venezuela's vital oil sector on Monday after Sunday's election in the struggling country was deemed a "sham" by Washington.   Venezuelan President Nicolas Maduro on Monday celebrated the election of a new legislative superbody that will have the power to dissolve state institutions such as the opposition-run Congress. Countries around the world denounced the vote.  

Dry Bulk, Tanker Newbuilds on the Rise -BIMCO

© Nightman1965 / Adobe Stock

Tanker and dry bulk vessel newbuild contracts have been signed at an increasing pace so far in 2017, with newbuild activity for the first half of 2017 surpassing the same period last year by 20 percent. According to BIMCO, 5.9 million DWT was contracted in May 2017 and 3.1 million DWT so far in June 2017, which brings the total amount of newbuild orders up to 19.6 million DWT for 2017.   So far for June 2017, 22 tankers have been contracted amounting to a total of 2.6 million DWT

New Real-time Maritime Tracking Service

© ET1972 / Adobe Stock

exactEarth Ltd , provider of Satellite AIS data services announces the launch of exactView RT powered by Harris (exactView RT) – the world’s first global, persistent real-time Satellite AIS service. This capability is expected to enable a wide variety of new service capabilities for the global maritime community and to contribute strongly over the next 20 years to the improvement of maritime safety, commerce, navigation, environmental management and security.  

Flex LNG signs deals to buy six new vessels

Image: Flex LNG

Oslo-listed Flex LNG has signed contracts to buy six new liquefied natural gas (LNG) vessels for its fleet by 2019, as it bets on increasing fuel demand from Britain and other countries, its chief executive told Reuters.   The gas shipping company said earlier this year it was considering buying the six vessels, each with around 170,000 cubic metres of capacity, subject to securing funding for the $1.2 billion transaction.  

Navios Acquires Capesize Vessel

 Navios Maritime Partners, an international owner and operator of dry bulk and container vessels, announced on May 9 that it has agreed to acquire one 2011 South Korean-built Capesize vessel of 179,016 dwt for a purchase price of $31.05 million.   The vessel is expected to be delivered to Navios Partners' owned fleet by June 2017.   The vessel is chartered out to a counterparty at a net rate of $11,733 per day until the first quarter of 2018.   

Crude Oil Tanker Demolition Bucking the Trend -BIMCO

© katiekk2 / Adobe Stock

 Four very large crude carriers (VLCC) have been sold for demolition since October 2016, matching the number of VLCCs sold for demolition in the preceding two years, according to BIMCO.   Most recently the 1999-built double-hull VLCC with the framing name Good News returned $15.5 million to the ship owner, as demolition prices have reached levels not seen since first half of 2015 ($400 per ltd).   “January struck an upbeat tone for demolition in all sectors

Navios Partners Acquires Capesize Vessel

Navios Maritime Partners L.P., an international owner and operator of dry bulk and container vessels, said it has agreed to acquire one 2009 Japanese-built Capesize vessel of 180,274 dwt for a purchase price of $28.3 million. The vessel is expected to be delivered to Navios Partners' owned fleet by August  2017. The dry bulk vessel is expected to generate approximately $3.7 million of annual EBITDA based on the current rate environment (Clarkson’s 1-year time charter rate for

Is 'Seablindness' a Myth?

© Gerhard1302 / Adobe Stock

 UK politicians and the general public have demonstrated overwhelmingly that they recognize shipping as the biggest mover of the nation’s imports and exports, according to a new study commissioned by the UK Chamber of Shipping.   Guy Platten, CEO of the UK Chamber of Shipping, said of the study: “The findings confirm that we can forget about so-called ‘seablindness’ – it just does not exist

Hyundai Heavy Sails Back to Profit in Q1

Photo: Hyundai Heavy Industries

 Hyundai Heavy Industries (HHI) has posted a net profit of KRW462.3bn ($409.6m) for the first quarter of 2017, making it the fifth consecutive quarterly profit for the group.   This represents a surge of 90% from the previous corresponding quarter. However, sales fell 1.9 percent to 10.76 trillion won.   HHI mainly attributes the whooping quarterly operating profit increase to 127.1 billion won operating profits from HHI’s Shipbuilding Division which is 251% up from

Look to the Nordics for Digital Maritime Solutions

Birgit Liodden (Photo: Nor-shipping)

Birgit Liodden, Director of Nor-Shipping, argues that Norway, Denmark, Sweden and Finland have the infrastructure, understanding and ambition to drive the digital transformation shipping requires for future sustainability and success. The world isn’t standing still, and shipping can’t afford to. The pace of change in society is accelerating every day, enabled by digitalization and facilitated by individuals and firms that see potential rather than challenges

Eight Damen Interceptors for Panama

(Photo: Damen)

The National Air and Naval Service of Panama (Servicio Nacional Aeronaval - SENAN) has taken delivery of four Interceptor 1102 vessels from Damen Shipyards Group. The President of Panama, Juan Carlos Varela, performed the christening ceremonies of all four vessels on February 6, 2017.   Coinciding with the vessel handover, SENAN also signed a second contract with Damen for an additional batch of four Interceptors

Abidjan Orders 16 Passenger Ferries

Photo: Damen

As part of a presidential plan to reduce urban congestion and greenhouse gas emissions in the Ivory Coast city of Abidjan, 16 new passenger ferries have been ordered by Société de Transport Lagunaire (STL).   Known as the economic capital of the Ivory Coast, Abidjan is located around the 100-km long Ébrié Lagoon on the west coast of Africa and therefore water-based transport holds a vital position in everyday life in the area

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