LNG Project Costs Rise 21%
Woodside Petroleum Ltd said costs for the planned phase five expansion of its North-West Gas liquefied natural gas project are estimated to have risen by 21 pct to 2.42 bln aud because of higher labor charges. The company, 34 % owned by the Royal Dutch Shell group, said the spike in costs is largely due to a sharp rise, internationally, in labor charges in the construction industry. Woodside operates the project and is a one sixth owner alongside Royal Dutch Shell. Already more than 14 bln aud has been spent on the LNG project's development over a 20-year period, making it a major LNG project by world standards. The fifth phase expansion includes the construction of an LNG processing facility with annual capacity of 4.2 mln metric tons of liquefied gas for export, largely to Asian markets.
Asia’s Biggest Container Shipper Posts Loss
Asia’s largest container shipping company China Cosco Holdings Co posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn net profit seen during the same period last year as excess capacity dragged down cargo rates. China COSCO is part of China Cosco Shipping Corporation (COSCOCS), a shipping giant created earlier this year from the state-driven merger of former rivals China Ocean Shipping (Group) Company and China Shipping Group. China COSCO said in a statement that global container shipping market has been sluggish since the second half of 2015…
Ship Operating Costs 2013 Held Steady Despite the Odds ...
Judging by the findings of Drewry Maritime Research’s latest 'Ship Operating Costs Annual Review and Forecast' , ship operators were able to keep increases in operating costs in 2013 quite low – with increases in total costs typically ranging between 1.0-2.5% depending on the sector in question – despite 2013 being another difficult year for most. Commenting on the latest findings Nigel Gardiner, Managing Director, stated: “Poor freight markets have forced ship operators to keep…
Knightsbridge Tankers 1Q Profit Falls
Knightsbridge Tankers Ltd. reported a 14 percent decline in first-quarter profit as revenue fell and operating costs rose. The Bermuda-based company reported quarterly net income of $14.2m, or 83 cents per share, compared with $17.1m, or $1 per share, in last year's first quarter. Operating revenue fell to $27.2m from $29.4m. Analysts were expecting a profit of 87 cents per share. Prices for very large crude carriers continued downward early in the quarter, the company said, following a downward trend that began in November. The industry enjoyed a pricing spike in late January and early February, but rates then eased through the rest of the quarter, the company said. The company's total operating expenses grew to $11.8m from $11.4m in last year's first quarter.
Port Security Plan Costs Rise by $3.5M
Costs soared by $3.5 million to install security enhancements at the Port of Los Angeles under a revised budget plan approved by the harbor commission. Technological upgrades and expanding the project's scope to include port tenants and public access areas were cited as the primary reasons for the spending hike, causing the project's budget to balloon to more than $9 million. Since then, an additional $555,678 in change orders was approved by the panel, but port officials noted that the most recent hike was not attributed to construction overruns. The new budget sets aside $1.1 million to install security systems at the new offices for Northrop Grumman and Liberty Hill Plaza…
TotalFina's Spill Costs Rise
The oil spill off France from a chartered tanker has so far cost TotalFina more than $123 million, according to Chairman Thierry Desmarest. Desmarest announced Jan. 21 that the company will pay $31 million to store and treat polluted sand on top of almost $78 million already earmarked for the spill. "Today we make a new commitment - to take charge of the storage and treatment of waste, composed of sand, seaweed, various material, and fuel, which already weighs 100,000 tons," he said. Greenpeace slammed TotalFina last month for failing to provide storage for the sticky oil which volunteers and soldiers have been shoveling from France's west coast since the slick lapped ashore in late December.
TotalFina's Spill Costs Rise
The oil spill from the Erika Tanker, chartered by TotalFina, has reportedly so far cost the company more than $123 million. The company announced Jan. 21 that it will pay $31 million to store and treat polluted sand on top of almost $78 million already earmarked for the spill. TotalFina has also contributed about $19 million to the oil industry compensation fund Fipol. TotalFina's contribution to the fund represents 10 percent of the $186 million Fipol will spend on repairing damage caused by the slick and compensating the local tourism and fishing industries.
Wages Push Up Operating Costs
Shipping accountant and business consultant Moore Stephens says a five per cent rise in crew wages last year has pushed up total operating costs for most types of ship. Unveiling OpCost 2002, Moore Stephens' operating cost benchmarking tool, Chris Chasty, head of the shipping group, says, "We have been able to see some clear trends in operating costs over last year. Almost all the ship types we cover have seen total costs rise, with the average about five percent. Increases in P&I costs and repair and maintenance bills also hit shipowners' operating costs, according to the report, although fluctuations for different ship types varied. The OpCost 2002 report is extracted from Moore Stephens' database of actual running costs of over 600 ships for the accounting year 2001.
Matson's 2013 Westbound Hawaii Service Rates to Increase
Matson has announced that Matson Navigation Company, Inc. (Matson) will raise its rates for the company's Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 1, 2013. The increase will be filed with the Surface Transportation Board. In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 1, 2013. Matson estimates that the combined increase of…
Shipbuilding: COSCO Warns of Struggle if Credit Tightens
COSCO Corp (Singapore) , part of one of China's largest shipbuilding groups, warned that its customers could struggle to pay their bills as funding costs rise, after posting sales on credit at their highest level in 11 years. The Singapore-listed subsidiary of Chinese state-owned maritime conglomerate China Ocean Shipping (Group) Company said trade and other receivables -- sales for which the company has not received cash payment -- rose more than 60 percent so far this year to S$4.7 billion ($3.7 billion). Reporting an almost 70 percent jump in third-quarter profit on Monday, the company said higher receivables reflected a rise in construction contracts in its marine engineering segment. But the company said tougher credit conditions would hurt.
Matson Raises 2015 Westbound Hawaii Box Rates
Matson, Inc., a U.S. carrier in the Pacific, announced that Matson Navigation Company, Inc. (Matson) will raise its rates for the company's Hawaii service by $225 per westbound container and $110 per eastbound container, effective January 4, 2015. The increase will be filed with the Surface Transportation Board. No adjustment will be made to the company's terminal handling charge (THC). Matson estimates that the rate adjustment will result in shipping costs rising by an average of 5.4% percent. "This rate increase will help offset rises in operating costs and support ongoing investments in our Hawaii service," said Dave Hoppes, senior vice president, ocean services.
Moore Stephens Focuses on Running Costs
Moore Stephens says shipowners have seen crew costs rise slightly and insurance costs fall dramatically over the past year. shows handysize bulk carrier crew costs up 6.9 percent, while insurance costs for the same ships fell 18 percent. Richard Greiner, director of research for Moore Stephens, says, "This is our second OpCost report, and it gives a very clear picture of how much shipowners and managers are spending, and where their money is going. OpCost is a vessel operating cost benchmarking tool exclusive to Moore Stephens. It allows owners, managers, lawyers and financiers to benchmark vessel-operating costs against a sample of actual vessels operating worldwide. sizes of tanker, dry cargo ships, container vessels, reefers and Ro/Ros. fees and sundries. annual report.
National Oilwell Expects Offshore Rig Demand to Slow
National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, said orders fell by nearly a quarter in the first quarter and it expects demand for new offshore rigs to slow during the second half of the year. The company's shares fell about 7 percent. Demand for contract drilling is softening as rigs ordered during boom times are being delivered now. Large oil companies are tightening spending after a decade of double-digit increase in budgets as oil prices stagnate and project costs rise.
Hapag-Lloyd: Shipping Demand Up, More Mergers in 2018
German shipping group Hapag-Lloyd sees demand for transport growing 4 percent in 2018 and expects more shipping firms to merge in the year, the chief executive said. CEO Chief Executive Rolf Habben Jansen also said Hapag-Lloyd, which merged with its Arab peer UASC, could achieve 85 to 90 percent of targeted annual savings from the deal of $435 million this year and 100 percent from 2019. More savings could be made in future, he told reporters in Hamburg, where he reiterated guidance for rising full-year 2017 earnings before interest, tax, depreciation and amortisation (EBITDA) and for EBIT.
Matson Increases Westbound Hawaii Service Rates
Matson, Inc., a U.S. carrier in the Pacific, announced today that Matson Navigation Company, Inc. will raise its rates for the company's Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 5, 2014. The increase will be filed with the Surface Transportation Board. In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 5, 2014. Matson estimates that the combined increase of both the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.5%. Historically, Matson announced average percentage increases based solely on the rate increase, excluding terminal handling charges.
Asia–U.S. Container Lines to Introduce Freight Increase
The Transpacific Stabilization Agreement (TSA) informs that member container shipping lines are proposing an across-the board general rate increase (GRI) of at least US$600 per 40-foot container (FEU) to all destinations, effective September 1, 2014 Carriers had filed increases in their individual tariffs in late July and subsequently began notifying customers directly. TSA lines said the planned GRI follows strong cargo demand and high vessel utilization levels in recent months, which forward bookings suggest will continue through September.
Oil Spill Clean-up Continues in Texas
The Coast Guard established a safety zone on the Neches River from just north of the DuPont plant to the Veteran’s bridge. No recreational boaters will be allowed into the safety zone until more of the oil has been removed. Both the Coast Guard and Texas Parks and Wildlife Department will be patrolling the area to ensure that recreational boaters observe the parameters set by the safety zone. Since the Neches River’s opening at approximately 11:44 a.m. Wednesday, a significant amount of ship and barge traffic has been allowed to move in and out of port. As of 4 p.m. today, ship and barge traffic is largely back to normal with the exception of nine ships and barges that must be washed down before heading into uncontaminated water.
Royal Caribbean Profits Take a Hit
Royal Caribbean Cruises Ltd reported a much lower-than-expected quarterly profit as costs rose and passengers spent less onboard. Shares of the company, whose cruise lines include Royal Caribbean International, Celebrity Cruises and Azamara Club Cruise, fell as much as 3.2 percent in early trading. The company shortened or canceled six cruises during the January-March quarter, typically the strongest for cruise operators. Voyage disruptions hurt yields, which include ticket sales and spending on board, by about 0.5 percent, the company said.
Konecranes Look Back on a Good Year
Konecranes PLC issues its Q4 and full year 2012 financial statement and bulletin. I am pleased with many aspects of our performance in 2012. In a marketplace where uncertainty and customers' hesitation to make decisions has become the new norm, a 14 percent growth in sales to a new record level of EUR 2,170 million was a good achievement. Operating profit before restructuring costs rose by 18 percent to EUR 138 million and earnings per share 32 percent to EUR 1.46. Cash flow was strong, reducing our gearing to below 40 percent. All in all, 2012 was a good year, but we aim higher. A year ago, we decided that our service business should prioritize profitability over growth in the short term.
Drewry Questions Viability of ‘Megaships’
Drewry Maritime Advisors say that the trend of “big ship obsession” may soon come to an end. The three largest carriers in the world – Maersk Line, MSC and CMA CGM – extended their dominance by taking on the most capacity, while the five leading carriers between them accepted two-thirds of all the new capacity. The desire for mega-ships is logical for individual carriers “but the impact on the industry at large has been disastrous with rock-bottom freight rates that we’re seeing now the end result,” says the London-based consultancy.
Fincantieri Reports Loss in Q1
Italian shipbuilder Fincantieri has fallen to a loss in the first quarter as financial costs rose. Fincantieri ended the first quarter of 2015 with Euro1.11 billion consolidated turnover and an EBITDA equal to Euro59 million. This equated to a loss of Euro27 million, mainly due to a slowdown in orders from the offshore sector caused by a market that is still very tight due to the collapse in oil prices. The group secured new orders totaling euro 85 million compared to euro 1.7 billion in the corresponding period of 2014.
Latest Ship Operating Cost Data
According to Drewery’s latest ship operating cost data, it’s a tough trading environment for vessel operators and the signs are that it will be difficult to keep a lid on escalating operating costs. Drewry has just published its latest annual analysis of ship operating costs, covering eight vessel sectors and over 35 different sizes of vessel plus detailed operating budgets for a range of oil tankers, chemical tankers, gas carriers, dry bulk vessels, container vessels, ro-ro, general cargo and reefer vessels; making it the most comprehensive survey of this crucial area of vessel management. With major economies staggering to get back on their feet and emerging economies finding theirs, the trading environment for vessel operators has been extremely difficult.
Single Hull Tanker Ban Could Send Freight Rates Soaring
When OPA 90 was introduced in wake of the Valdez accident, the stipulation that tankers trading in the U.S. must be double hulled was roundly panned throughout the world, as industry experts bemoaned the fact that one country have such a deciding impact on vessel design. How soon they forget. Ten years and a few tragic sinkings off European shores have let to Italy's sudden plan to ban single-hulled tankers from seven key port areas, a move which some contend will cripple a pipeline feeding oil to Germany from the Italian port of Trieste, a leading brokerage warned. "The ban will be felt in Germany and Austria," said Italy's largest brokerage Banchero Costa.