BP Spill Opportunity in Disguise for Rig Builders
According to a June 14 report from Bloomberg, heightened U.S. scrutiny of offshore drilling after the BP spill, the worst in the nation’s history, may spur oil companies to replace aging rigs with new platforms made in South Korea and Singapore. Rig-makers Samsung Heavy Industries Co. and Keppel Corp. stand to benefit from drillers buying $300m-plus semi-submersible rigs. About 57% of current units are more than 20 years old, according to Merrill Lynch, the Bloomberg report said. (Source: Bloomberg)
German Nuclear Power Extension Threatens Offshore Wind Funding
According to a September 6 report from Bloomberg, the German government’s plan to extend the phase-out of nuclear power risks hampering investment in offshore wind turbines. Utilities including E.ON AG and RWE AG may cut their investment in the industry to compensate for a tax of $3.9b a year they will be charged, said an analyst at Bloomberg New Energy Finance. The levy on nuclear-plant operators is meant to support renewable energy. (Source: Bloomberg)
Supertankers in for Worst December in Nine Years
According to a report from Bloomberg, supertankers shipping 2 million- barrel cargoes of Middle East crude oil are heading for the worst December since at least 2001 as excess vessel supply cuts what owners can charge. Returns from shipping Middle East oil to Asia, the industry’s biggest trade route, averaged $15,350 a day so far this month. The previous worst December was in 2001, when rental income averaged $19,341, according to data compiled by Bloomberg dating back to that year. (Source: Bloomberg)
Freight Rates Tumbling
According to a Jan. 10 report from Bloomberg, at a time when analysts anticipate record profits for the biggest mining companies and a third year of gains in commodity prices, shipping lines carrying raw materials are set for the lowest freight rates since 2002. Leasing costs for capesizes, 1,000-foot-long ships hauling iron ore and coal, will drop 34 percent to average $22,000 a day this year, according to the median in a Bloomberg survey of eight fund managers and analysts. (Source: Bloomberg)
Australia: Shipping Rates Poised to Plunge 31%
According to a report from Bloomberg, a 20-mile-long line of commodity carriers off Queensland, suffering its worst floods in a half- century, means less income for owners already reeling from the biggest slump in freight rates in more than two years. There are 132 vessels floating off the Australian state, which accounts for about 50% of the global seaborne supply of coal used in steelmaking, data collected by AISLive and compiled by Bloomberg show. (Source: Bloomberg)
Supertanker Rates May Jump Next Week
According to a report from Bloomberg, the chartering manager of Dynacom Tankers Management Ltd., an Athens-based operator of supertankers, told Bloomberg that vessel supply is balanced and rates are expected to go from 70 to 75 Worldscale points by next week. (Source: Bloomberg)
Exxon Books Tankers to U.S. at Lowest Rates of 2013
Exxon Mobil Corp. booked two tankers to haul oil to the U.S. Gulf Coast via the Suez Canal in May at what may be this year’s lowest rates, a shipbroker told Bloomberg.com. “The very large crude carriers, each able to haul 2 million barrels of oil, will load in the Persian Gulf on May 7, Athens- based Optima Shipbrokers Ltd. said in an e-mailed report today,” Bloomberg.com reported. “The ships were chartered at rates of 15.75 and 16 industry- standard Worldscale points, it said. Hire costs for tankers shipping crude from the Middle East to the Gulf Coast continue to drop and are now down 26% from the start of 2013. Clarkson Plc (CKN) found VLCCs built in 2010 and carrying oil to the U.S.
Vinashin Misses Payment, Plans Review
According to a Bloomberg report, Vietnam Shipbuilding Industry Group (Vinashin), plans to present a KPMG LLP report on its business to creditors by mid-year after it missed a payment on a bank loan. Vinashin reportedly received a $600m loan in 2007 from banks led by Credit Suisse Group AG that paid higher interest than the London interbank offered rate, according to Bloomberg. While it made a $6.8 million interest payment on Dec. 23, the company reportedly missed a Dec. 20 deadline to make a $60m payment. (Bloomberg)
Crude Rises; Libyan Tankers Off U.S. Coast
According to a March 2 report from Bloomberg, West African and Caspian Sea crudes surged to the highest in more than two years as European refiners find their grades more suitable for replacing disrupted Libyan exports than offers from Saudi Arabia. Two oil tankers bound from Libya are anchored off the U.S. Gulf Coast near Port Arthur, Texas, according to Bloomberg vessel tracking data, five days after the U.S. imposed sanctions on the North African country. (Source: Bloomberg)
Ship Rejected in China on Radiation
According to a report from Bloomberg, a ship that had “abnormal” amounts of radiation after passing 67 nautical miles off Japan’s Fukushima prefecture, site of a crippled nuclear-power station, was heading back to the country after being rejected by authorities in China. The MOL Presence was due to arrive in Kobe on March 30 from Xiamen, according to AISLive Ltd. ship-tracking data on Bloomberg. (Source: Bloomberg)
Japan Shipyards Turn to Fuel-Savings to Compete
According to a report from Bloomberg, Japanese shipbuilders, leapfrogged by South Korean and Chinese yards in an industry they once dominated, are counting on fuel-saving technology to help them overcome a stronger yen and high wages. A Japanese handysize dry-bulk ship typically uses about 24 tons of fuel a day, compared with 28 tons for Chinese-made ones, a Bloomberg source said. Source: Bloomberg
US Oil Imports in Freefall, Force Shipping Rates Down
Growing U.S. energy independence is driving the biggest drop in crude imports in two decades and rates for the oil tankers most reliant on the shipments to the weakest in at least 16 years, reports Bloomberg. Citing shipbrokers Clarkson, Bloomberg add that seabourne imports will decline 11 percent to 5.4 million barrels a day in 2013, the largest slide since at least 1991. Suezmaxes hauling 1 million-barrel cargoes earned $10,652 a day this year, the least since 1997, its data show. The rate is 55 percent less than Euronav NV says it needs to break even on the 22 tankers it owns.
VLCC Tankship Hires at 6-Year High
Bookings of the largest oil tankers jumped to the highest for the time of year since at least 2007 as demand for crude cargoes accelerates before a surge in oil refining projected by the International Energy Agency. reports Bloomberg. According to Bloomberg, who cite Marex Spectron Group, a London-based commodities and freight-derivatives broker. There are still more charters to arrange and it’s the second consecutive month when bookings have been at the highest for the period in Marex data starting in January 2007. The vessels each carry 2 million barrels.
Oil CEO Hamm Sought Ouster of Scientists Looking at Quakes
Oilman Harold Hamm, CEO of Continental Resources Inc., told a University of Oklahoma dean last year that scientists studying links between oil drilling and earthquakes should be dismissed, Bloomberg News reported on Friday. Bloomberg, citing emails obtained through a public records request, said Hamm indicated he wanted to see some scientists at the Oklahoma Geological Survey, which is based at the university, let go. Scientists have said the reinjection of drilling and fracking wastewater into disposal walls could be tied to earthquakes.
China LNG Import Demand Grows
According to a Bloomberg Report, China’s LNG imports rose to a record in July as consumption continueds to climb. LNG imports reportedly gained 66 percent to 1.18 million metric tons, according to data from the Beijing-based General Administration of Customs, reported by Bloomberg. Imports of LNG cost an average $433 a ton in July, or $8.30 per million British thermal units, 47 percent higher than a year earlier, according to Bloomberg calculations.
Chemical Tankships Deep Laden on Fracking Boom
The boom in U.S. natural-gas supplies is boosting chemical exports to Asia, driving up demand for specialized ships that carry the products and sending freight rates to a five-year high, reports Bloomberg. Earnings for tankers carrying 20,000 metric-ton cargoes in stainless-steel tanks will rise 12 percent to an average of $14,500 a day next year, the most since 2009, according to Bloomberg, citing RS Platou Markets AS, the investment-banking unit of Norway’s largest shipbroking group. China, the largest importer, is on course to buy more than ever, pushing fleet use to 87.2 percent of available transportation capacity this year and 89.8 percent in 2014, the highest since 2008, Platou estimates. Source: Bloomberg
Tankship Freight Rates in Swift Freefall
The biggest slump in tanker rates since January is signaling weaker U.S. oil imports, and is causing a 15-year low in the shares of one major crude-oil tankship operatore, reports Bloomberg. Rates for the biggest crude carriers tumbled 68 percent in the past two weeks, more than reversing their advance since the end of June, says Bloomberg, citing Clarkson Plc, although earnings had risen after oil cargoes to the U.S., the second-biggest source of demand for supertankers, expanded for three months.
Russian Oil Tanker Rates Rise 51% in Two Days
The cost of shipping Russian oil to northwest Europe had the biggest two-day jump since April as traders accelerated bookings of tankers to load at the end of this month, curbing the number available for charter, reports Bloomberg. Rates for Aframaxes shipping 100,000 metric tons to Wilhelmshaven in Germany from Primorsk on the Baltic Sea climbed 51 percent to 113 Worldscale points, reports Bloomberg citing the Baltic Exchange , a London-based publisher of freight prices on more than 50 trade routes. That equals daily earnings of $47,168, almost three times what the ships made on Oct. 15. Shipments of oil on Aframaxes from the Baltic will rise 5 percent to about 1.7 million barrels a day this year, estimates Clarkson Plc, the world’s largest shipbroker.
Goldman Sachs Reported Out of Daewoo Sale
Goldman Sachs Group Inc. is out as co-adviser of the sale of Daewoo Shipbuilding & Marine Engineering Co., according to a report on Bloomberg. According to the Bloomberg report, Korea Development Bank reversed its earlier decision to have Goldman be a preferred bidder as co-adviser of the sale of a 50.4 percent stake in Daewoo Shipbuilding, as the bank and Goldman apparently failed to reach an agreement on terms of the contract. (Source: Bloomberg)
Iran Trade Sanction Relaxation: Limited Effect on Crude Prices Consider Analysts
Iran’s pledge to restrict nuclear work in return for loosened economic sanctions may have a limited effect on crude prices, report Bloomberg, citing analysts who regarded a 2.7 percent slump in Brent as a knee-jerk reaction. The six-month agreement, which offers Iran about $7 billion in relief from sanctions in exchange for curbs on its nuclear program, leaves in place banking and financial measures that have hampered the OPEC member’s crude exports. The six-month agreement, which offers Iran about $7 billion in relief from sanctions in exchange for curbs on its nuclear program, leaves in place banking and financial measures that have hampered the OPEC member’s crude exports.
China Moves to Help Shipping Industry with Subsidies
In a bid to assist all sectors, China is to increase cash subsidies for scrapping obsolete ships by 50 percent to help cut over-capacity and emissions, reports Bloomberg. The government will grant 1,500 yuan ($247) per gross ton for shipping companies to replace obsolete ships, according to a statement noted by Bloomberg on the transport ministry website. The award applies to vessels scrapped in the years 2013 through 2015. Under the new program, ship operators get half the money upon completing scrapping and the rest after placing new building orders, according to the statement. By comparison, under a 2010 rule, they had to complete scrapping and place new ship orders before getting any of the subsidy. Source: Bloomberg
GofM Oil Well Loss of Control Update
According to Bloomberg, Rowan and EnVen, a privately held producer based in Metairie, Louisiana, evacuated 42 non-essential workers from Rowan Louisiana rig yesterday, while 37 remain to try to get the well under control. Citing Jonathan Garrett, chief operating officer of EnVen Energy Ventures LLC, the well operator that hired Rowan, Bloomberg add that three boats are on standby at the shallow-water well site 108 miles (173 kilometers) southwest of Lafayette, Louisiana, in case they’re needed for additional evacuations.
Iron-Ore Ship Rates Rise as China Spends
Iron-Ore carrier daily rates rebound as China spends US$158-billion. Iron-ore ships are poised to earn more than operating costs for the first time this year as rates rally on speculation Chinese steel mills will accelerate imports because of a 1 trillion-yuan ($158 billion) building program, reports Bloomberg Business News. Capesizes, each carrying 160,000 metric tons of ore, will earn $12,500 a day in the fourth quarter, according to the median of eight analyst estimates compiled by Bloomberg, compared with $4,459 on average since the end of June as assessed by the Baltic Exchange. Source: Bloomberg