Marine Link
Tuesday, October 17, 2017

Freight Carrier

Kintetsu Pays $1.2bln for APL Logistics

Image: Kintetsu World Express

 Japanese freight carrier Kintetsu World Express Inc is buying Singapore's APL Logistics for US$1.2 billion, paying a higher than anticipated price for an overseas deal at a time of slow domestic growth.  Tokyo-headquartered Kintetsu Express said on Tuesday that it agreed to pay S$1.6 billion to buy all of APL's shares from its parent, Neptune Orient Lines (NOL). Its own capital and bank loans will be used to fund the deal, it said.    The sale of APL Logistics to the Japanese company will enable NOL to concentrate on its core but troubled container-shipping business. The Singapore Company said the deal will “unlock the value of the logistics business for its shareholders and strengthen the financial position of the NOL Group”.   NOL said the sale price is 15 times APL Logistics’ EBITDA [earnings before interest, tax, depreciation and amortization] of $80m last year, with KWE winning a competitive auction for the unit with the highest bid price – and reportedly beating competition from the likes of XPO Logistics and Korean company CJ Express – and one that is considerably above the current market average for acquisitions.   The expected APL Logistics deal value is far higher than the US$750 million to US$900 million range that sources said Singapore-based NOL had been looking for

TTS Worldwide is OL USA

Cargo ships entering one busiest ports in world Singapore Photo OL International Holdings

OL International Holdings LLC (OL International) today announced the renaming and rebranding of TTS Worldwide as OL USA. Effective February 1st, 2017, the change is the latest and most symbolic development in an aggressive, multi-year strategic expansion plan for OL International’s businesses – now with representatives on the ground in over 140 countries. The announcement follows quickly on the heels of the launch of OL South Africa and OL Dubai in recent months.

Sause Brothers Towing Repowers Ocean Tug

Based in Coos Bay Oregon, Sause Brothers Towing has been towing between Pacific Northwest and Southern Californian ports for over 50 years. A new double-hulled 105,000-barrel oil barge, Sunset Bay, is currently alongside at the company shipyard in Coos Bay. With the hull built at the Gunderson yard in Portland it is being outfitted by Sause. Also at the yard, the ocean going tug Powhatan is undergoing an extensive repower that will see a pair of 850 HP engines replaced with a pair of

Business Briefs

Hvide Marine/Sun State Christens New Ship Hvide Marine Incorporated (HMI) and subsidiary Sun State Marine Services, Inc., recently christened the first in a series of new cargo ships at its U.S. shipyard facility in Green Cove Springs, Florida. Constructed entirely on-site by Sun State Marine Services, Inc., the 190-foot 'landing craft' type freight vessel is specially designed and ideally suited for conducting trade with Bahamian and Caribbean markets that have minimal or unimproved

Pilot Freight Wins Logistics Award

Pilot Freight, worldwide transportation & logistics provider, picks up its seventh 'Ryder Transportation Management Carrier Quality Award'. Every year Ryder recognizes carriers through this award who demonstrate excellence in on-time performance, claims handling, customer service, technology applicants, economic value and innovation. The Ryder awards recognize excellence through a variety of metrics including: on-time performance, claims handling, customer service, technology applicants

Blu Logistics Brings Rate Management In-House

cargosphere.gif

CargoSphere,  cloud-based global rate management solution and confidential Rate Mesh network for the ocean and air transportation and logistics industries, has announced the completion of Blu Logistics’ integration with CargoSphere’s freight rate management solution.  Blu Logistics, a global logistics company offering sea and air freight services, customs brokerage, ground transportation, and warehousing, previously outsourced freight rate and contract management

Ocean Freight Shipping Rates on the Rise

After a downtrend in the freight shipping tanker market since the middle of 2007, the industry has seen nothing but rate increases in the last month. This freight rate increase can affect consumers across the board, according to the freight transportation The cost of freight shipping can mean an increase in the cost of many consumer products, according to FreightBrokering.info, which is why it's so important to keep freight transportation costs down

The Hearsay Portal: part 1 of 2

Chris Giermanski (Director of International Operations, Transportation Services, Inc.)

Dr. Jim Giermanski (Chairman, Powers Global Holdings, Inc.) and Chris Giermanski (Director of International Operations, Transportation Services, Inc.) weigh in on the balance between facilitating trade and guaranteeing cargo identity and quantity - and what CPB needs to do to achieve just that. Automated Commercial Environment (ACE) Modernizing the flow of Customs data and improving security began many years ago

Container Shippers Battle Falling Rates

Photo: Greg Trauthwein

As freight rates keep declining, cost reductions are the top priority for box carriers. Drewry’s 2Q14 Container Forecaster highlights that there is a widening gap between the positive financials of the few carriers really focused on cutting costs and the rest of the top 20 lines, as they battle with the pressure of falling freight rates. Drewry forecasts that once again, average freight rates will be lower than in the previous year

Quality of Ocean Carriers “Poor to Average”

Image: Drewry Shipping Consultants Limited

 The service provided by container shipping lines is rated as poor to average and has deteriorated in the past year, according to a survey of exporters, importers and freight forwarders conducted jointly by Drewry and the European Shippers’ Council (ESC).   The ESC and Drewry contacted several hundred shippers and forwarders from all over the world in March 2017 and asked them how satisfied they were with 16 price and non-price related attributes of the services provided by

Global BCOs Hit by Rising Contract Rates from Asia

Graph: Drewry Benchmarking Club

 Contract freight rates paid by Beneficial Cargo Owners to move their products by container have increased for a 4th consecutive quarter, according to actual contract rate data from the Drewry Benchmarking Club.   Average contract rates on two major container trade routes - from Asia to North Europe and North America – have increased by another 4% between the second and the third quarter of this year

Global Trade Surge Fuel Oil Markets

Global trade is growing at the fastest rate for six years - which is both a symptom and a cause of the recovery in commodity markets.   World trade volumes were up almost 5 percent year-on-year from May to July, according to estimates compiled by government economic planners in the Netherlands.   Growth was four times faster than at the same point in 2016 (http://tmsnrt.rs/2y89NxC).   Global trade and commodity markets are linked in a circular causal relationship

Statoil Charters ULCC to Hold Crude for Asia buyers

File Image (CREDIT: AdobeStock / (c) Jose Gill)

Oil storage is feasible with low freight rates, capital costs; backwardation pushes traders to churn oil faster from storage.   Norway's Statoil ASA has chartered the last remaining Ultra-Large Crude Carrier (ULCC), the world's largest oil tankers, to store oil off of Malaysia for distribution in smaller parcels to its clients in Asia, company executives said.   Statoil has booked the TI Europe, capable of carrying up to 3 million barrels of oil

Bahri Rolls Out BahriBunge Dry Bulk

Following announcement in Feb 2017, new joint venture plans to ship over 5 million metric tons of dry bulk commodities in its first year of operation. Photo: Bahri

Following the announcement of the joint venture agreement by Bahri, a global leader in transportation and logistics, and Koninklijke Bunge, a wholly-owned subsidiary of Bunge Limited, a global agribusiness and food company, the two companies recently inaugurated the offices of BahriBunge Dry Bulk Ltd. in Dubai, UAE.    In celebration of the occasion and reveal of the new company’s logo, Mr. Abdulrahman M

Maersk to Face Price War

Photo: Maersk Line

 A.P. Moller-Maersk's main sea freight business faces the threat of a new price war in a consolidating industry, though the company has been fortified by the $7.5 billion sale of its oil and gas business to France's Total Reuters reported.   Maersk, the world's biggest container shipping company, has shifted its focus this year from preserving market share to higher margins, a strategy that was helped by a recovery in freight rates, the report said.  

St. Louis Region’s Agriculture Freight Network Poised for Growth

This 15-mile section of the Mighty Mississippi is being called the “Ag Coast” of America.

As cargo handling capacity increases along the Mississippi River, this 15-mile section of the Mighty Mississippi is being called the Ag Coast.   Located in the heartland of America, one 15-mile section of the Mississippi River in the St. Louis, Missouri, region delivers the highest level of grain barge handling capacity anywhere along the Mighty Mississippi. In fact, it is now being called the “Agriculture or Ag Coast” of America in terms of barge transfer facilities for

Asia VLCC Rates Fall to Four-year Low

© Jose Gill / Adobe Stock

Freight rates for very large crude carriers (VLCCs) on Asian routes show little sign of reviving although Hurricane Harvey, which threatens to ravage the U.S. Gulf coast oil refining industry over the weekend, could provide a fillip, brokers said.   That came as average weighted VLCC freight rates on all routes sank to their lowest in four years this week to around $9,000 per day.   Rates are even lower on some routes after CPC fixed a VLCC late Thursday for a trip from the

Stena Adds Vessel on Gdynia-Karlskrona Line

(Photo: Stena Line)

Stena Lines reports the number of units carried by its Baltic Sea South freight business increased significantly in the first eight months in 2017, following strong growth through 2016.   This calls for increased capacity, and from Monday, August 28, a fourth ship, M/V Gute, has been taken into operation between Gdynia and Karlskrona.   “Over these last few years we have experienced a very positive volume development and we believe this will continue and we are very happy

Container Equipment Leasing Rates Under Pressure

Graph: Drewry Shipping Consultants Limited.

 Leasing companies are tightening their stranglehold over container equipment ownership as ocean carriers cut back on new purchasing and sell older inventory for leaseback, Drewry's report said.   But the lessors’ rapid expansion has come at a price as the combination of low borrowing costs and competitive pressures has had an adverse impact on lease rates and accompanying investment returns.  

SCF's Balancing Act in Tanker Market

Ice-breaking LNG carrier Christophe de Margerie. Photo: PAO Sovcomflot

 Despite the turbulent conditions seen in conventional markets, SCF Group has continued to demonstrate resilience whilst remaining able to position itself to take advantage of the future upswing in these markets when it comes.   The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows. This has impacted severely upon the profitability of those owners focused solely on conventional shipping

ZIM Continues to Outperform

Photo: ​ZIM Integrated Shipping Services Ltd

 ​ZIM Integrated Shipping Services Ltd (ZIM)continues to outperform the industry and achieve improved results, claims the company.   The shipping liner industry went through major developments and structural changes which include reshaping of the alliances and M&A activities that took place over the last quarters.    "Since Q3 2016 we have been witnessing a positive trend in the industry with improved freight rates in most trades, however

DVB Bank Losses on Shipping

Photo: CMA CGM

 DVB, the specialist in international shipping finance, reported a consolidated net loss before taxes of EUR 506.3 million in the first six months of 2017 (previous year: net income of EUR 14.1 million).   Ralf Bedranowsky, CEO and Chairman of DVB Bank SE's Board of Managing Directors, commented on the Bank's consolidated results: “The increase in allowance for credit losses was largely required for legacy exposures in the Shipping Finance portfolio

Drewry Warns BCOs to Adapt Their Contract Strategy

Image: Drewry Shipping Consultants Limited

 International transport and logistics executives using container shipping are facing the biggest shift in their ocean provider base for 20 years and must adapt their procurement and contract strategy, according to ocean freight procurement consultancy Drewry Supply Chain Advisors.   In the last five years, beneficial cargo owners have been able to secure large reductions in freight costs by running traditional competitive bids with numerous providers in an over-supplied

More Cargo, Slower Steaming Support VLCC Rates

File Image (CREDIT: AdobeStock / (c) Carabay)

VLCC rates from MidEast to Asia gain around $3,000; higher chartering volumes for peak winter season could lift rates.   Freight rates for very large crude carriers (VLCCs) on Asian routes may have found a floor this week as a combination of increased chartering activity and some tankers sailing at slower speeds pushed rates slightly higher from the Middle East.   "Rates are at a bottom, they have kind of found a floor," said Ashok Sharma

New Orleans' Big Plans Showing Dividends

(Photo: SEACOR)

A Container-on-Barge service intended to be an integral part of the regional intermodal equation is gathering momentum – and customers.    Quietly, the Port of New Orleans (NOLA) has marked some important accomplishments in the past two years, across multiple business sectors. For example, in April 2016, NOLA’s Board dedicated a $25 million Mississippi River intermodal terminal, capable of handling 160,000 twenty-foot-equivalent (TEU) units per year by rail

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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