Ocean Shipping Slows Down as Pandemic Pummels Retailers
The $1 trillion container shipping industry is in a slowdown. Literally.Some shipping lines, whose retail customers are being hammered by the coronavirus pandemic, are reducing sailing speeds and taking longer routes around Africa, avoiding Suez canal passage fees, according to the companies and ship-tracking specialists.Many are also cutting down the number of voyages and providing short-term storage for clients as the industry, which includes heavyweights like Maersk, MSC and Hapag-Lloyd…
US Barging Industry Navigating Black Swan Events
The combination of the coronavirus pandemic and oil price freefall have affected most maritime markets, including inland waterway shipping. Looking at U.S. river transport in particular, the impacts of these two black swan events vary greatly depending on the type of cargo being carried.David Grzebinski, CEO of the America’s largest tank barge operator, Kirby Corp., said in a March conference call that petrochemical customers have driven the market higher as plants and refineries look to shore up their supply chains amid current market upheavals…
Catching a Jones Act Seaman’s 'Golden Parachute'
A challenging offshore environment produces a different but equally difficult development. Will you be ready when it comes to your fleet? Unfortunately, our industry continues to suffer due to the depressed oil prices that started in 2014. When the price of oil initially dropped, the industry’s outlook remained positive, and I remember hearing the mantra: “Stay lean for 2015.” Everyone thought that oil prices would rebound in short order and that we were only weathering a short downturn.
Total Overtakes Shell in North Sea Production
Majors still control three quarter of output; even after $10 bln of deals, private equity still plays only modest role. French oil major Total has overtaken rival Royal Dutch Shell to become the second-largest producer in the North Sea with its acquisition of Maersk's Norwegian and UK producing assets. The $7.45 billion deal by Total was welcomed by the market, with analysts saying it helped the French company rebalance its portfolio by adding assets in developed countries after going for projects in riskier places such as Iran and Russia. The deal boosts the share of eight global oil majors in the North Sea - Statoil, Total, Shell, Exxon Mobil, Conoco , ENI, BP and Chevron - to back above three quarters of total output.
Shipping Confidence Climbs to Three-year High
Shipping confidence reached its equal highest rating in the past three years, according to the latest Shipping Confidence Survey for the three months to end-May 2017 from international accountant and shipping adviser Moore Stephens. The average confidence level expressed by respondents to the survey was up to 6.1 out of 10 from the 5.6 recorded in the previous survey in February 2017. Increased confidence was recorded by all main categories of respondent to the survey, which launched in May 2008 with an overall confidence rating of 6.8.
Cosco Ends FY15 in the Red
COSCO Corporation (Singapore) Limited has posted net losses of S$570 million for FY2015, compared with the earnings of S$20.9 million in FY2014. The company is hurt by writedown of inventory and possible non-payment by some of its customers. Revenue declined 17% to S$3.5 billion for the fiscal year to December, on the back of lower revenue from marine engineering in the shipyard business, and lower charter rates in the shipping business. Fourth quarter revenue fell 21 per cent to S$725.5 million while full-year revenue fell 17 per cent to S$3.5 billion. The Singapore-listed Chinese shipyard said the global offshore market continued to slow down significantly with no signs of improvement, due to the weak global economy and depressed oil prices.
Limit Exposure with the Uniform Commercial Code
Demanding assurance pursuant to the UCC may save you from sinking on someone else’s ship. Vessel operations require a large network of companies that come together to keep the entire business chain – including yours – running smoothly. Keeping the lights on and the boats running requires agreements with banks, investors, shipbuilders, component manufacturers, designers, technical specialists, repairmen, suppliers, agents and countless other entities. Many of these agreements involve relationships that have developed over time during differing market conditions.
