Crude Tanker Shipping Market to Get Hurt in 2018
Crude tanker freight rates are expected to decline further in 2018 following a sharp decline in 2017, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. Although tonnage supply growth in the crude tanker market is expected to be low next year after surging in 2017, this will not be enough to push tonnage utilisation rates higher as demand growth is expected to be sluggish. A slowdown in global oil demand growth and a likely decline in China’s stocking activity will keep growth in the crude oil trade moderate next year.
OOCL Scandinavia Unveiled
In Orient Overseas (International) Ltd (OOCL)’s series of six ‘G Class’ containerships on order at the Samsung Heavy Industry (SHI) shipyard, we are pleased to introduce the newest and fifth 21,413 TEU containership, named the OOCL Scandinavia, into our fleet of world trade ambassadors. The OOCL Scandinavia will be joining her sister vessels on our LL1 service, linking major markets in China and Northern Europe together. In commemoration of this milestone at OOCL, we are very honored that Mr.
OOCL Introduces China Pakistan Express 3
Following its announcement of the China Pakistan Express 2 (CPX2) last week, Orient Overseas Container Line Limited (OOCL) is all set to introduce the China Pakistan Express 3 (CPX3), another new Intra-Asia service to expand its product portfolio by providing a more comprehensive service network connecting the markets of India and Pakistan. The CPX3 provides additional sailing frequency from Central China to Mundra and strategically expands its service coverage in Pakistan. "Together with the CPX2…
LNG Market Outlook by Flex LNG
The LNG shipping market tightened throughout the third quarter, and rates increased sharply in October following gradual increases since May. This was due in part to strong LNG demand from China which helped to widen the arbitrage between spot LNG import prices in Europe, U.S. and Asia. This led to increased cargoes from the Atlantic basin and an associated increase of average sailing distances. The current market dynamic is supportive for a further increase in rates during a seasonally strong period of the year.
China, Philippines to Draft Protocol to Avoid Maritime 'Miscalculations'
China and the Philippines will negotiate a military protocol to avoid maritime “miscalculations”, Manila’s defence minister said on Wednesday, following a brief standoff near a Philippine-occupied island in a disputed part of the South China Sea. Delfin Lorenzana said the Philippines tried to put up makeshift structures on a sand bar about 4 km (2.5 miles) off Thitu island in the Spratly archipelago in August, but China objected and sent ships to the area. President Rodrigo Duterte sought to defuse tensions by ordering troops to pull out. Construction was stopped. “We intend to sit down with China to draft and agree on a protocol to resolve immediately any incident,” he said, adding he hoped talks could start this year.
China's Cosco Shipping to Build Logistics Park in Egypt
Cosco Shipping, one of the largest shipbuilders in China has signed an agreement with TEDA Corporation of Egypt to build a 130,000 square meters logistics zone in the Suez Canal Economic Zone. Set in Ain Sokhna, the park aims to create 300 new jobs in Egypt while forwarding the Chinese government's Bely and Road Initiative which aims to make China a major logistics provider internationally. The industrial park will include a textiles compound, a company manufacturing motorbikes and a large center for logistics. The first phase of construction of the TEDA-Suez zone has already been completed and the General Authority of the Suez Canal Economic Zone has signed a contract worth $60 million with China Jushi, a Chinese fiberglass manufacturer.
Trump Signs 43 Billion Dollar LNG Deal with China
On his visit to China, President Trump reaffirmed his commitment to form agreements that reduce the trade deficit with China by signing a deal to help the LNG industry in Alaska with three Chinese companies. The deal, which could be potentially worth $43 billion, involves Sinopec, the largest oil company in China, the sovereign wealth fund and one of China's largest bank. will work together to create 12,000 jobs in Alaska. The deal has the potential to reduce the US-China trade deficit by $10 billion a year.
CNPC, Cheniere Pact for LNG
China’s state-owned oil company, China National Petroleum Corporation (CNPC), and U.S. independent energy company Cheniere Energy have signed a Memorandum of Understanding (MoU) for long-term sales and purchases of liquefied natural gas (LNG), Reuters reported. The report quoted U.S. State Department saying that the deal between the two companies was signed during president Trump’s first state visit to China. Neither companies disclosed details of the transaction. According to CNPC…
China Shadows US Warship in Disputed Sea
A U.S. Navy guided-missile destroyer sailed close to China's man-made islands in the disputed South China Sea on Tuesday, drawing an angry rebuke from Beijing, which said it warned and followed the American vessel. The patrol by the USS Lassen was the most significant U.S. challenge yet to the 12-nautical-mile territorial limits China asserts around the islands in the Spratly archipelago and could ratchet up tension in one of the world's busiest shipping lanes. One U.S. defense official said the USS Lassen sailed within 12 nautical miles of Subi Reef.
INEOS to Ship US Ethane to China in 2019
U.K. chemicals firm INEOS said it has entered a long-term supply agreement with Singapore-based SP Chemicals to ship ethane from U.S. shale gas to China for the first time starting in 2019. “This is another world first for INEOS after importing shale gas to Europe in 2015,” said David Thompson, CEO of INEOS Trading and Shipping. “By bringing in U.S. The deal involves the construction of a 95,000cbm capacity Very Large Ethane Carrier (VLEC), which is expected to be the world’s largest ethane carrier upon its delivery in 2019. The VLEC will be built under the management of the JACCAR Group.
Vietnam, Australia Call for South China Sea 'Restraint'
Vietnam and Australia called on Wednesday for "self-restraint" in the South China Sea and warned against the unilateral use of force, an obvious reference to China's increasingly aggressive presence that has stirred concerns across the disputed region. Vietnamese Prime Minister Nguyen Tan Dung met Australian counterpart Tony Abbott in Canberra, where they will sign a deal on issues including security and climate change. Vietnam and other wary Southeast Asian countries have complained about China's controversial policy of land reclamation on disputed isles in the South China Sea. Beijing in turn has said it is not seeking to overturn international order. Dung told the Australian parliament there was an imperative need to draw up a code of conduct for the South China Sea. "We agreed ...
China's Navy holds Missile Combat Resupply Drill
China's navy held its first drill simulating the resupply of missiles in a combat environment in the Yellow Sea, the Defence Ministry said on Thursday, the latest sign of the country's growing military prowess. The live-fire exercises, involving ships, aircraft and land-based forces, featured the firing of missiles, torpedoes and shells, some of which were new models, the ministry said in a statement on its website. They were fired to intercept surface, underwater and airborne targets, and the drill "for the first time organised a maritime missile combat resupply exercise", it added, without giving details. China has ramped up defence spending to modernise its forces, the world's largest, which are gaining experience in operating far from its coast.
Port Corpus Christi to benefit from LNG partnership with China
Port Corpus Christi officials are confident that the agreement signed between Cheniere Energy of Houston and China National Petroleum Corporation (CNPC) will bring increased traffic to the port, according to the San Antonio Business Journal. Officials from Cheniere accompanies President Trump on his tour to China and signed a Memorandum of Understanding with the Chinese company. CNPC is the largest gas and oil supplier and producer in China and is also one of the largest providers of oilfied services.
China Plans to Modernise Shipping Industry: Shares Jump
China published a set of guidelines to support and develop its shipping industry on Wednesday, sending shares in shipping firms such as China COSCO and China Shipping higher. The world's biggest trading nation is focusing on the shipping industry as it looks to secure its supply chains and grows more assertive over territorial disputes in the South China Sea, unnerving neighbours such as Vietnam and Japan. China will introduce tax and other regulatory reforms while pushing shipping firms to upgrade and modernise their fleets to build an efficient, safe and environmentally friendly shipping system by 2020, the State Council, China's cabinet, said in a statement published on its website.
China Deploys Missiles on South China Sea Island
Satellite images show new missiles on Woody Island; China says entitled to necessary self defence facilities. China has deployed an advanced surface-to-air missile system to one of the disputed islands it controls in the South China Sea, Taiwan and U.S. officials said, ratcheting up tensions even as U.S. President Barack Obama urged restraint in the region. Taiwan defence ministry spokesman Major General David Lo told Reuters on Wednesday the missile batteries had been set up on Woody Island. The island is part of the Paracels chain, under Chinese control for more than 40 years but also claimed by Taiwan and Vietnam. A U.S. defence official also confirmed the "apparent deployment" of the missiles, first reported by Fox News.
China Tells US to Play Constructive South China Sea Role
China told the United States on Tuesday that it should play a constructive role in safeguarding peace in the disputed South China Sea, as U.S. Secretary of State John Kerry called for talks and a peaceful resolution. China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims, as well as close military ties with the United States. China has been angered by what it views as provocative U.S. military patrols close to islands China controls in the South China Sea.
KHI to increase new builds in China
Kawasaki Heavy Industries will move more of its commercial shipbuilding operations from Japan to China. It aims to reduce its production in Japan from 40% of all builds to 25% in a bid to increase profitability. The company currently operates a shipyard outside Shanghai in a 50-50 partnership with China's Cosco Shipping. The shipyard, Nantong Cosco KHI Ship Engineering, is located in Jiangsu Province along the Yangtze River and is much larger than Kawasaki's Japanese facitlity.
Bulk Carriers Collide On Mississippi
The Panamanian bulk carrier El Flamenco and Liberian bulker China Spirit reportedly collided on the Mississippi River on February 4. The 70,046 dwt China Spirit was contacted by the El Flamenco (69,351 dwt). A two meter by two meter hole above the waterline was ripped out of the afterpeak ballast tank of China Spirit. The damage has been temporarily repaired and it is awaiting class surveyors approval before loading for the Far East, where permanent repairs will be carried out. El Flamenco was heading north to mile marker 110 to unload its cargo of pig iron from Brazil. China Spirit was anchored at 12-mile anchorage facing northbound 75-80 yards off the west bank, waiting to receive grain from ADM Gromark grain elevators.
Philippines: South China Sea not on APEC Agenda
Energy ministers from the Asia-Pacific Economic Cooperation (APEC) group will discuss climate change and business opportunities at a meeting in the Philippines next month but not the South China Sea. China claims most of the potentially energy-rich South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims. The Philippines has filed a case with an international arbitration tribunal over rival claims in the South China Sea but China has rejected the proceeding and says disputes must be handled bilaterally. China is a member of APEC.
US, Japan Keen to Raise South China Sea at G-7
South China Sea warning looms over G7 summit. The United States is keen to raise the issue of South China Sea at a Group of Seven foreign ministers (G-7) meeting in Hiroshima. The US expects that this move would likely draw an angry response from the government in Beijing. Japan also wants to discuss South China Sea. The Shinzo Abe administration of Japan has been trying to place the South China Sea on top of the agenda at the upcoming two-day meeting in Hiroshima, despite pressing issues of combating terrorism and extremism, and the refugee crisis troubling Europe and the Middle East.
GTT to Design LNG Tanks for New FSRU/LNG Carriers
GTT has won a contract to design the liquefied natural gas (LNG) tanks for two dual purpose vessels capable of operating as efficient LNG carriers and floating storage and regasification units (FSRUs) that are presently on order at Hudong-Zhonghua Shipbuilding (Group) Corp. These vessels will be built at Shanghai, China, for the owner Dynagas, with scheduled delivery in 2021. GTT said it will design the LNG tanks of both units, each representing a capacity of 174,000 m3.The membrane cryogenic containment system NO96 GW, with glass wool insulation, will be used for the LNG storage on board. According to GTT, there are currently 14 vessels in operation and 42 on order that use this technology.
China Hopes U.S. Can Help Ease S.China Sea Tension
China hopes the United States can "help and not cause problems" in the disputed South China Sea, a senior Chinese diplomat said on Friday ahead of next week's visit to Beijing by President Donald Trump. The United States has criticised China's construction of islands and build-up of military facilities in the sea, and is concerned they could be used to restrict free nautical movement. U.S. Navy ships have also carried out freedom of navigation patrols in the area, angering China. Speaking to reporters about Trump's trip, Chinese Vice Foreign Minister Zheng Zeguang said China has indisputable sovereignty over islands and surrounding waters in the South China Sea.
Demand for Ships in China to reach 31m DWT
According a new report on China’s shipbuilding industry from Research and Markets, from 2006 to 2010, the total demand for ships in China will reach 31 million dead weight tons (DWT), and the annual demand will be 6.2 million DWT on average. The report, dubbed China Shipbuilding Industry Report, 2005–2006, notes that China’s ship completions rank third over the past 10 consecutive years, and the shipbuilding capacity has increased from 3.462 million DWT in 2002 to 12 million DWT in 2005. The boom of China’s shipbuilding industry is closely linked with the development of marine industry, says the report. Although the global marine market declined in 2005, new opportunities emerged.