HMAS Ballarat Exercises with Canadian Navy
Royal Australian Navy Frigate HMAS Ballarat has completed a range of underway exercises with Royal Canadian Navy ships HMCS Ottawa and Winnipeg in the waters of South East Asia during Ballarat's South East Asia deployment. The exercises, conducted in international waters from 19-21 April, included close quarters manoeuvring, practicing replenishment at sea activities and conducting anti submarine warfare training utilising helicopters from both navies. Commanding Officer Ballarat Commander David Landon said the underway exercises demonstrate the ease in which the two navies operate together.
IRClass Expands Presence in Southeast Asia
Indian Register of Shipping (IRClass) is boosting its presence in Southeast Asia with the opening of a new office in Malaysia. The move is part of its efforts to become a global classification society – a step taken after receiving recognition from the European Union. IRClass, which is a member of the International Association of Classification Societies (IACS), has just gained authorization as a Recognized Organization (RO) from Thailand. It has also strengthened its presence further with the opening of an office in Malaysia after establishing its Hong Kong office last year.
Long-haul Arbitrage Trades to Benefit VLCCs
The OPEC production cuts since the start of 2017 has tightened supplies of medium and heavy sour crudes, leading to a narrowing Brent-Dubai EFS. This has made long-haul crude trades from the Atlantic Basin to the Far East economically viable, resulting in a surge in flows from the North Sea as well as Americas which has in turn boosted ton-mile demand in the VLCC sector. Growing ton-mile demand has helped to halt declining rates in a sector flooded with newbuild deliveries in Q1. VLCC rates for the benchmark AG/Japan route rebounded from w46 end-March to current levels of w65.
CMA CGM to Tap Indonesian Market
CMA CGM aims to increase its market share in Indonesia to 20 percent by year-end from the current 13 percent, reported The Jakarta Post. The company's senior vice president in Asia, Jean-Yves Duval said that with aggressive marketing, as well as longer and more efficient routes, we believe we can have 20 percent of the market by end of 2017. Recently, the Transportation Minister Budi Karya Sumadi and PT Pelabuhan Indonesia II President Director Elvyn G Masassya welcomed the arrival of the largest container ship CMA CGM Otello which berthed at Jakarta International Container Terminal.
Maiden Bakken oil cargo to Asia ships out, with more to come
The first ever reported export of North Dakota's crude oil to Asia left port last month, according to a shipping document seen by Reuters on Wednesday, in what is expected to be the first of numerous cargoes once the key Dakota Access pipeline starts moving oil in May. Swiss-based Mercuria Energy Trading S.A. loaded more than 600,000 barrels of Bakken crude, as well as some Mars Sour crude, in late March off the coast of Louisiana onto the very large crude carrier (VLCC) Maran Canopus, destined for Singapore, according to the bill of loading and ship tracking data. The burgeoning appetite for U.S. crude among Asian refiners could be a boon for Bakken crude, especially when the Dakota pipeline starts up.
International Maritime University Pacts with Latin America
The International Maritime Organization (IMO) has announced that International Maritime University of Panama (UMIP) has been selected to host the regional Maritime Technology Cooperation Centre (MTCC) for the Latin America region, under an ambitious project, funded by the European Union (EU) and implemented by IMO, to help mitigate the harmful effects of climate change. Under the Global MTTC Network (GMN) project, UMIP will host MTCC-Latin America. The selection of UMIP followed a competitive international tendering process. UMIP joins MTCCs in Africa, Asia and the Caribbean.
CMA CGM Otello Largest Box Ship to Call Indonesia
CMA CGM Otello has arrived Indonesia as the largest container vessel to call the country at the Jakarta International Container Terminal. The occasion also celebrated her impending maiden voyage for the industry’s first direct service from Indonesia to the United States (U.S.) on 24 April. Officiating the event was Minister of Transportation, Mr. Budi Karya Sumadi. He joined some 350 guests including various government officials as well as industry stakeholders at the milestone celebration.
196 Ships Broken Worldwide in Q1
Of the 196 ships sold for scrap in the first quarter of 2017, 65 percent ended up on beaches in India, Bangladesh and Pakistan, said South Asia quarterly update of NGO Shipbreaking Platform. 128 ships were sold for scrap to the South Asian beaches in the first quarter of 2017. 51 of the beached vessels were containerships. The other main shipbreaking destinations, Turkey and China, received 36 and 28 vessels respectively. Four ships were destined for recycling in other locations outside the main five breaking nations.
US Navy Conducts Bilateral Drill with Japan and Korea
U.S. Navy ships are conducting simultaneous bilateral maritime exercises with the Republic of Korea Navy and with the Japan Maritime Self Defense Force today and tomorrow (April 25-26, local time). The destroyers USS Wayne E. Meyer (DDG 108) and ROKN Wang Geon (DDH 978) are conducting combined maritime exercises in waters west of the Korean Peninsula while the destroyers USS Fitzgerald (DDG 62) and JMSDF JS Chokai (DDG 176) execute combined maritime exercises in waters west of Japan. Both exercises demonstrate a shared commitment to security and stability in Northeast Asia as well as the U.S.
Baltic Exchange Chief Outlines Growth Plan
Newly appointed Baltic Exchange Chief Executive Mark Jackson has set out the Exchange’s vision of the near-future in a wide-ranging speech in Singapore during the concurrent MPA Singapore Maritime and Singapore Iron Ore Weeks. “The recent acquisition of the Baltic Exchange by the Singapore Exchange (SGX) has reinvigorated this key international maritime institution, allowing us to grow our leadership profile and play a bigger role than ever before in setting standards, building consensus and leading change in the shipping markets. These are bold plans and will ensure that the Baltic Exchange remains at the heart of the bulk shipping industry for the long-term.
Tanker Market Could See Difficult Q2, Q3
New vessels expected to hit freight rates; new trade route from east U.S. to Asia to meet Chinese demand. The tanker market may face a "difficult" second and third quarter this year after a robust first quarter as supply of newly built vessels loom, Belgian oil tanker operator Euronav said on Tuesday. "The rates today are not the same as what we have seen in previous quarters," Chief Executive Paddy Rodgers told Reuters on the sidelines of a shipping conference. An additional 50 very large crude carriers (VLCCs) are estimated to be added to the global fleet of supertankers this year…
Vice President Pence Visits Naval Air Facility Atsugi
Marking his first official travel to the Asia-Pacific region, Vice President Mike Pence made his first ceremonial stop in Japan at Naval Air Facility (NAF) Atsugi, April 18. During the Japan portion of his regional visit, the vice president will travel to Tokyo where he will meet with Prime Minister Shinz Abe and lead the inaugural U.S.-Japan Economic Dialogue with Deputy Prime Minister Tar As. The vice president will also participate in a listening session, followed by remarks to the U.S. and Japanese business community. Naval Air Facility Atsugi Commanding Officer Capt.
Banking on US Shale Gas Boom, Asia Petrochemical Firms Switch to LPG
Asia petrochemicals firms are building tanks and retooling plants to store and process liquefied petroleum gas imported from the United States, counting on a flood of supply from the shale boom to replace costlier naphtha as a raw material. Samsung Total Petrochemical, LG Chem and Royal Vopak are among a number of companies in Asia expanding import terminals or retrofitting plants over the next one to two years as they buy more LPG. The gas is used by petrochemicals firms to make a broad range of consumer and industrial plastics. Asian petrochemicals firms have traditionally used naphtha as a raw material. They are now switching to LPG because rising U.S. supplies have pushed prices below those of both naphtha and LPG from their main supplier, the Middle East.
May LNG Cargo Prices Fall on Waning Demand
Asian spot LNG prices edged lower this week amid thin trade for May cargoes and as focus shifts towards June supplies. Spot prices for May delivery of LNG in Asia fell by 35 cents to $5.40 per million British thermal units (mmBtu), as interest for May cargoes weaken because most end-users have already secured their necessary feedstock for the month. Prices for June delivery of LNG in Asia was pegged slightly higher at $5.50/mmBtu amid expectations that demand could return as North Asian buyers begin purchasing cargoes to meet summer demand.
World's Largest Containership in Shanghai
MOL Triumph, the world's largest containership with a carrying capacity of 20,170 TEU, successfully arrived at Yangshan Port in Shanghai on April 10, 2017, said Mitsui O.S.K. Lines, Ltd. MOL took delivery of MOL Triumph, the first of six 20,000 TEU-class containerships from Samsung Heavy Industries on March 27, 2017. At 400 meters in length and 58.8 meters in width, MOL Triumph is longer than the Oriental Pearl Radio and TV Tower of Shanghai is tall. MOL established MOL (China) in Shanghai in 1995.
Piraeus Targets Cruise Sector
Piraeus Port, Greece's largest, aims to increase its cruise traffic from 1 million passengers a year up to 1.5 million in the short-term and to 3 million long-term, its managing director, Fu Cheng Qiu, said on Friday. COSCO Shipping, which owns the world's fourth-largest container shipping fleet, bought 51 percent of the port's operating company last year, and plans significant investment to turn the port into a transhipment hub for rapidly growing trade between Asia and Eastern Europe.
Wall Named MD of RichLand-LSP
RichLand-LSP strengthens chemical logistics business unit with appointment of Graham Wall as Managing Director; Singapore-based logistics solutions provider looks to expand in South-East Asia region under new leadership. Leading chemical logistics solutions provider RichLand-LSP has appointed Graham Wall as Managing Director as it looks to expand its bulk liquid chemical transport operations throughout South-East Asia. Mr Wall brings 25 years of chemical logistics experience…
Geodis Wilson Appoints New Cluster MD
Geodis Wilson announced the appointment of Rene Bach-Larsen as Cluster Managing Director of Singapore and Southeast Asia. Looking forward to his new role of developing Geodis Wilson’s business in one of Asia’s most dynamic economical hubs, Rene said, “The Southeast Asia market—Singapore, Indonesia, Malaysia, Thailand and Vietnam—is certainly often overlooked as a growth area because of its modest size compared to the biggest players China and India. However, from a global perspective, it is actually a key area. It has weathered the global recession well and is experiencing rapid growth.
China Launches First Home-built Aircraft Carrier
China launched its first domestically built aircraft carrier on Wednesday amid rising tension over North Korea and worries about Beijing's assertiveness in the South China Sea. State media has quoted military experts as saying the carrier, China's second and built in the northeastern port of Dalian, is not expected to enter service until 2020, once it has been kitted out and armed. Foreign military analysts and Chinese media have for months published satellite images, photographs and news stories about the second carrier's development. China confirmed its existence in late 2015.
CMA CGM Group Takes Delivery of Corte Real
CMA CGM Group took delivery this morning, Monday August,16th, in South Korea of the CMA CGM Corte Real (13,830 teu) built by DSME (Daewoo Shipbuilding and Marine Engineering), the third of a series of eight vessels named after the great explorers. CMA CGM Corte Real (365 meter long, 51,2 meter large and 15.5 meter draught) is up to date the largest vessel sailing under the UK flag, a European flag which is part of the white list of the “Paris Memorandum of Understanding on Port State Control” a guarantee of safety, security and environmental protection. The vessel will join the CMA CGM Christophe Colomb and CMA CGM Amerigo Vespucci on the FAL5 service (French Asia Line) linking Asia to North Europe.
A Glimmer of Hope for Asia Dirty Tankers
As we enter Q2 2017, Asia’s crude tanker market finds itself flooded with a flurry of newbuilds that hit the water over the last quarter. According to Lloyd’s List Intelligence, new tonnage delivered hit 15m dwt in Q1 and is expected to stand at 8.7m dwt in Q2. The gradual but steady unwinding of floating storage in global hotspots due to a flattening Brent futures curve is likely to release a constant stream of tonnage into the market, exacerbating the situation of oversupply.
Global Shipbuilding to Turn Around in 2017: Castrol
Despite a marginal deterioration in the growth outlook for the global shipbuilding industry, annualized five-year growth rates for the sector are still forecast to reach a healthy 3 to 5%, before picking up substantially after 2017, says Castrol Marine Trade Barometer. The Barometer predicts that growth will be driven largely by the Asia-Pacific region, but also Latin America and the Middle East. All European nations but the Netherlands face a downward trend until 2017. Mandhir Singh, COO at Castrol, says, “The main growth in shipbuilding will come from AsiaPacific countries to 2019.
Maritime Security a Year-Round Duty
While many Australians spend Anzac Day off work, Royal Australian Navy personnel around the world will remain on watch, contributing to global security, stability and prosperity. On operations in countries as far from home as Afghanistan and South Sudan, in regions such as the Middle East and in waters offAustralia’s northern borders. Their work is 24 hours a day, 365 days a year, but they will take some time off on 25 April to honour the sacrifices made by past and present service men and women.