Vessel Op Costs to Rise in 2019 and 2020
International accountant and shipping adviser BDO said total operating costs in the shipping industry are expected to rise by 2.5% in 2019 and by 2.7% in 2020.Responses to the firm’s latest annual Future Operating Costs Survey revealed that insurance is the cost category likely to increase most significantly in both 2019 and 2020. In the case of protection and indemnity insurance, the predicted increase is 2.0% for each of the years under review, while hull and machinery insurance…
BIMCO: "Continued Pressure" for Bulkers
Demolition of dry bulk ships in the first four months of 2019 was 120% higher than in the same period of 2018. Much of this increase comes from demolitions of Capesize ships, up from 1.1m DWT between January and April 2018 to reach 3.4m DWT in the first four months of 2019.Despite the increasing in scrapping, the bulk carrier market, particularly on the large ship side, will remain under pressure for a number of reasons, starting with stagnant demand, from the short term shock and impact of the dam collapse in Brazil and bad weather in Australia…
Bulkers to Benefit as China Iron Ore Appetite Grows
It has been quite awhile since the global bulk carrier market has had much to cheer about, but U.S. dry bulk shippers are set to post strong revenue growth in the next two years thanks to soaring Chinese demand for high-grade iron ore from Brazil and Australia. To combat severe winter smog, China has slashed iron ore output, pushing steel mills in the world's second biggest economy to import more high-grade ore. China also wants to make pollution control a priority for the next three years.
Fujiwara Takes the Helm at ClassNK
Maritime Reporter & Engineering News visited Koichi Fujiwara, the newly installed Chairman and President of ClassNK, in his Tokyo headquarters for his insights on the global maritime market at large as well as the future direction and mandate of class. With the global maritime market in the grips of a collective slump, the likes of which have not been seen since the energy crisis and resulting economic malaise of the mid 1970s, Koichi Fujiwara takes the mantle of leadership at ClassNK, one of the world’s largest and most influential classification societies.
NYK Line Posts Loss on Dry Bulk Fleet Revaluation
Japan's Nippon Yusen Kaisha (NYK) has posted a $277.5mln extraordinary loss in the third quarter of year ended 31 March 2016 as it reduced the book value of its fleet inline with current market prices and expectations. The extraordinary loss came after it re-assessed the recoverable value of its dry bulk vessels. In the global shipping industry, an oversupply in the container shipping market continued due to ongoing steady production of new ultra-large vessels, and freight rates in the shipping market fell to very low levels as a result of a widening gap between supply and demand.
Baltic Index Hits Record Low for 12th Straight Session
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, plunged to a new record low for the 12th straight session on Wednesday amid concerns over vessel oversupply and low demand. The overall index, which gauges the cost of shipping dry bulk including iron ore, cement, grain, coal and fertiliser, fell five points, or 1.38 percent, to a low of 358 points. The outlook for the dry bulk carrier market remains less favorable as weak Chinese infrastructure investment and slowing production at major mining companies limit demand growth for dry bulk carriers, brokerage Jefferies said in a note. However, the capesize index rose a point, or 0.54 percent, to 186 points, after hitting a record low on Tuesday.
Global Ocean Trade: Latest Shipbuilding Orders
No tankship orders noted the past week by Clarkson Hellas in their latest S&P Weekly Bulletin, but no lack of orders in the dry bulk carrier market, all from Far East shipbuilders. Foremost Maritime are understood by Clarkson Hellas to have added a further four 180,000 dwt Capesize to their orderbook at Beihai, taking the series to six vessels. Delivery is planned from end 2015 and through 2016. Reuben Brothers have ordered two 82,000 dwt bulk carriers at JMU Yokohama. The vessels are due for delivery in early 2016…
Global Dry Bulk Carrier Newbuilding Orders on the Rise
Starting with the large sizes in dry, Oldendorff Carriers are reported to have declared the sixth in a series of 207,000 DWT Newcastlemax at HHI, with delivery in the second quarter of 2015. Clarkson Hellas report that at Hanjin Subic, STX Pan Ocean have contracted two firm 150,000 DWT Capesize, planned for delivery in the second half of 2016 and for charter to KEPCO. One order to report in the Kamsarmax sector, with Klaveness declaring the third and fourth in a series of 82,000 DWT bulk carriers at Jiangsu New Yangzijiang.
Handy-size Bulk Carrier Market: Tonnage Shortage Pushes Up Rates
The NCSA-USG area remains short of tonnage: a 34,000 dwt bulk ship is well-linked to US$ 15,000 daily for a short period of 3-5 months, reports BMTI in its latest 'Handy Bulk Market Viewpoint'. Owners of a similar size of tonnage were seeing US$ 24,000 daily for a trip to Europe. A range of US$ 20,000 daily from NCSA via the USG to the Continent from owners of a 36,000 dwt was rebuffed by charterers as being too expensive. From the NCSA, undisclosed charterers were chasing a 35,000dwt for short period at US$ 13,500, which was about US$ 2,000 short of the owner's ideas.
Ocean-going Ship Newbuildings Round-up
Activity in Chinese shipyards increased the past week, notably in the dry-bulk carrier market, as workers returned from the 'Golden Week' holidays reports Clarkson Hellas Weekly S&P Bulletin. China Navigation have announced the declaration of another four options of the 39,500dwt design at Chengxi Shipyard, which will bring the total number of orders for this design up to 16 vessels. This latest set of options will all deliver in 2016. No pricing has been disclosed, though the earlier options were declared at a price of circa USD 23 Mill.
Latest Global Shipbuilding Orders
Shipbuilding orders were rather less the past week, but there were notable contracts for specialised heavy-lift carriers from Chinese shipbuilders, according to the Clarkson Hellas S&P Weekly Bulletin round-up. Limited ordering to report this week in dry say Clarkson, with the focus very much being on the smaller sizes. Starting with the larger of these, Parakou Shipping have declared a further four options for 64,000 DWT Ultramax at Chengxi taking the total series to eight vessels. Delivery of these latest vessels from end 2015. In the Handysize dry bulk carrier market, Interlink have placed a new order for five firm plus five options 38,500 DWT bulkers at Kouan Shipbuilding.
New Bulker Design Introduced by Imabari Shipbuilding
Japan's Imabari Shipbuilding Co., Ltd. introduce a new class of 33,000 dwt bulk carrier designated 'IS' TRI-STAR. The shipbuilders say that its share of the handy-size bulk carrier market is ranked among the highest in the world. Since 2010, over 30 vessels of the "IS" BARI-STAR, 38,000 dwt-type bulk carrier have been delivered, and over 200 vessels of the 28,000 dwt-type have been delivered since 1990. However, to satisfy customer demand they have decided to launch their newly developed 33,000 dwt- type bulk carrier – "IS" TRI-STAR into the handy-size bulk carrier market.
ABS Reports Continued Growth in 2012
ABS hosted its Annual Meeting in New York on April 23, 2013. ABS Chairman, Robert D. In 2012, the ABS-classed fleet reached 193.5 million gross tons, a growth rate of more than 4% year-on-year. ABS also maintained its leading position in the global orderbook with 21% of all vessels on order designated for ABS class. With nearly 70% of all vessels aged ten years or less, ABS has one of the youngest fleets showing a strong foundation for a successful future of the organization.
Sinopacific Secures Order for 4+2 Bulkers
Sinopacific Shipbuilding Group, Leading the Supramax Bulk Carrier Market, Secures Order for 4+2 Crown 63 Ships. Sinopacific Shipbuilding Group secured an order for 4+2 Crown 63 (63,500 DWT) Supramax bulk carriers from a foreign ship owner on October 8. The Crown 63 is a new generation bulk carrier which is self designed by Sinopacific Shipbuilding Group. This ship became the focus of attention from around the shipping world as soon as it was introduced on the market, and many orders were quickly received for it.
Modern Panamaxes Attract Top Dollar
While the dry bulk carrier market waits for increased opportunities arising from the eventual onset of spring, the Panamax sector continues to trade in a relatively steady manner. Modern Panamaxes continue to attract a premium over older ships with the 2000-built, 74,000-dwt Far Eastern Glory reported to have been booked at $12,600 daily for delivery Taiwan between February 18 and 25. The charter involves an Australian round voyage followed by redelivery in Japan. Meanwhile, the 1992-built, 69,310 dwt Far Eastern Express, while older and smaller, has been reported chartered for mid February delivery in Yokkaichi for a trip via north Pacific with redelivery scheduled off the Continent at $11,800 daily. Both rates were considered healthy.
Asian Panamax Rates Up Slightly
Asian Panamax freight rates for dry bulk cargo edged up slightly this week in slow trade due to New Year holidays, Reuters reported. But the outlook for the Panamax sector remained healthy as activity would pick up momentum after the holiday period and the arrival of new ships was unlikely to affect Panamax rates before April, brokers said. The freight rates for the heavy grain Panamax benchmark route, U.S. Gulf to Japan, were quoted higher at $22.493 a ton compared with $22.208 two weeks earlier, brokers said. Panamax rates for the U.S. Pacific route were indicated at $16.543 per ton, up from $16.325 two weeks ago. Brokers said reported fixtures had been slightly quieter as Christmas and New Year holidays kept chartering businesses slow.
Deltamarin Design Picked up by Chinese Yard
Deltamarin signed an agreement with the Chinese Tianjin Xingang Shipbuilding Heavy Industry Co., Ltd. (http://shiprepair-xgsy.com) for the design of fourHandymax Bulk Carriers to be built for the French shipowners Louis Dreyfus Armateurs. Deltamarin will take care of the Basic and Detail design of the vessels as well as Technical Procurement handling and will also have a site team to take the design to production. This is the first order for the B.delta37 standard bulk carriers, which have evoked the interest of the market with their improved cubic capacity and especially the extremely low fuel consumption compared to other available designs. The overall vessel length will be below 180 m and the beam 30 m. The service speed at design draft is 14 knots.
MES Tapped to Build “Neo Supramax 66BC” Ships
Mitsui Engineering & Shipbuilding was contracted to build two “Neo Supramax 66BC” ships, which are next-generation 66,000-dwt bulk carriers developed as low fuel consumption, eco-friendly ships. Keeping the usability of MES’ best selling 56,000 dwt type handymax bulk carrier (Mitsui 56) which achieved more than 170 contracts, this new and larger bulk carrier is expected to establish a new segment in bulk carrier market. Development of the ship’s design was preceded by hearings from various owners and operators and investigations on more than 600 ports worldwide.
New coatings safer, last longer Bottom Line: It's Not Just A Paint Job
On the surface, the subject of paint seems simple. After all, it's just a paint job, right? For maritime applications, however, beauty is much more than skin deep. The coating of surfaces on ships is a complex combination of materials, chemicals and preparation to combat corrosion and maintain a sharp appearance. The coatings must wear well in the worst of weather and withstand the most extreme environments. They must last with little maintenance, must be earth friendly and safe for people and other living things, and last but certainly not least, they must be affordable. The paint job found on a contemporary ship may look the same as that of a ship of several decades ago, when in fact very little is the same.
Chemoil Opens New Office in Greece
Chemoil has officially opened its sales and marketing office in . Based in , the office will be headed by Costas Karanikolaou. The company’s presence in will provide sound strategic positioning to supply to the region’s bulk carrier market and also support its VLCC and tanker customer base to complement operations in Fujairah and the .