Liability of Third Party on Bill of Lading
The U.S. Court of Appeals for the First Circuit ruled that a third party can be liable on a bill of lading based on its conduct. In the instant case, a cargo owner arranged for shipment of frozen fish and prepared a bill of lading naming itself as the shipper. The consignee orally agreed to pay to the carrier the applicable freight charges. The cargo was shipped and the consignee paid the freight charges. The cargo owner arranged a second shipment in the same manner and the consignee again agreed to pay the freight charges. The cargo was delivered, but the freight charges were not paid. The carrier brought suit against both the shipper and the consignee.
Malaysia Mulls Second Shipping Line
Malaysia reportedly may set up a second national shipping line to help reduce freight charges between the peninsula and the states of Sabah and Sarawak on Borneo island, as traders in the two east Malaysian states had complained about high freight costs. "The proposal has come from the Ministry and the Cabinet is actively studying it," an official said. Malaysia International Shipping Corp., controlled by state oil firm Petronas, is currently the country's sole national shipper.
Oil Freight Charges To Go Higher?
Bloated oil freight charges could surge yet higher this year, adding to the already inflated cost of world oil imports, shippers said. Tanker brokers are predicting a mid-November stampede to ship crude from the Middle East, pushing charter rates to new peaks amid a perceived shortage of quality vessels. In January, very large crude carriers (VLCCs) sailing from the Gulf to Japan were fetching a price of worldscale 49, equivalent to 75 cents a barrel. The rate since has more than trebled and now stands at WS 165, $2.50 a barrel. For a 250,000 ton, or 1.8 million barrel shipment, that means an increased freight charge of $3 million on a $50 million cargo of crude. "Eastern charterers have been paying higher rates," said one VLCC broker. Rates for a 280,000 tonner to the U.S.
Port of Houston- Fuel surcharge Increase
Effective March 17, 2005 local barge companies in the port of Houston will increase their fuel surcharge to 20% of all bunker delivery freight charges. Harbor fees, tariffs, demurrage and other fees, applicable to the bunker delivery, will not be subject to this fuel surcharge. This pass through cost will apply to any new bunker orders delivered by Chemoil March 17th or later.
U.S. Cargo Preference Billing
The Office of the Inspector General (OIG) of the Department of Transportation released a report stating that the Maritime Administration (MARAD) is required to reimburse the Department of Agriculture (USDA) for “excess” ocean freight costs that food assistance programs incur in order to comply with cargo preference statutes. There is a dispute between MARAD and USDA regarding how to calculate the amount owed. USDA recently billed MARAD $379 million in excess freight charges. OIG reviewed the billing in accordance with Government Auditing Standards and concludes that MARAD owes USDA a total of $164 million, rather than the $379 million billed. Report Number FI-2004-057 (HK Law).
Transatlantic Eastbound Rates Fall
Transatlantic eastbound chemical freight rates dropped slightly this week on a continued lull in the spot market, ICIS reports brokers as saying. It was the second drop in as many weeks. SPI Marine’s most recent weekly report said the lull might signal a bigger slowdown and “embolden charterers to believe the beginning of a weakened state has just begun”. Freight charges on 2,000-tonne cargoes fell to $82-87/tonne from $85-90/tonne previously. And 5,000-tonne cargoes slipped to $63-68/tonne from $64-69/tonne previously.
Cheaper Fuel to Boost Container Shipping
Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container shipping companies deal with the volatility in fuel prices by adding a separate bunker adjustment factor or fuel surcharge to their freight rates. Fuel can account for more than 60 percent of the total operating costs of moving freight across the oceans so the surcharges are one of the most important elements of total transportation costs.
Indian Ports Cargo Volumes Up after Demonetisation
The cargo handled by 12 major Indian ports in November and December (Post demonetisation period)has witnessed a significant growth by registering an increase of 11.2 per cent and 12.7 per cent, respectively, reports PTI. The Minister of State for Shipping Mansukh L. Mandavia told the Parliament that cargo handled by major ports after demonetisation has shown a growth in comparison to the same period last year. The Press Information Bureau says the ports handled 56.7 MT of cargo in December 2016 (12.7 per cent growth) and recorded 54 MT cargo in November (11.2 per cent growth).
Asian Shippers Face Rise in Ocean Container Freight Rates
All Asian shippers wil have to pay higher freight charges to European container ship operators from September 2012. From September 1, Denmark-based Maersk, the world's largest container line, will implement a general freight increase of 250 U. S. dollars per TEU and 500 U.S. dollars per FEU on all shipments from the Far East to the Indian sub-continent, including India, Pakistan and Sri Lanka. Taking a cue from Maersk, Emirates too has announced a freight increase of 200 U.S. dollars per TEU on shipments between the Far East/ South-East Asia and the Indian sub-continent. The Geneva-based Mediterranean Shipping Company (MSC), the world's second largest container line, has announced peak season surcharge and bunker surcharge from September 1.The peak season surcharge of 300 U.S.
Low Freight Rates Cut Costs for Importers
Oil freight costs that have fallen sharply from record peaks two months ago are helping reduce energy import bills already eased by lower crude prices. Tanker market experts said freight charges that rocketed to unexpected heights in November looked set to remain under control over the next six months at least. Very Large Crude Carriers (VLCCs) delivering crude to Japan and Singapore from the Middle East now charge about Worldscale 85, $1.40 per barrel, having peaked last November at W190, $2.65 a barrel. Supertanker rates to the United States also are lower at about $2.30 a barrel from the Gulf $3.20 a barrel in November. "More new ships will be coming in…
BP Deepwater Horizon Costs Balloon to $65 Billion
BP said on Tuesday it would take a new charge over the 2010 Deepwater Horizon spill after again raising estimates for outstanding claims, lifting total costs to around $65 billion. The post-tax, non-operating $1.7-billion charge BP will take in its fourth quarter results came after claims resolved in recent months were about seven times higher than anticipated, the London-based company said. The claims were part of the Court Supervised Settlement Program that was set up in the wake of the disaster and included nearly 400,000 cases, BP said.
India Aims to Boost Low-grade Coal Sales While Global Prices High
India is trying to boost sales of its low-quality coal by offering more of the fuel at home and initiating steps to lower freight costs, while global prices are high, with the government hoping the moves will help cut imports. State-controlled Coal India, the world's largest miner of the fuel, has sharply boosted output in the past two years but has struggled to sell all of that due to softer domestic demand and the availability of superior-grade foreign coal at competitive rates, until recently. Benchmark Australian coal prices have more than doubled this year, helped by reduced Chinese mining and strong demand across Asia and Europe just when exporters cut output. But prices have begun to recoil this month as China eased restrictions on domestic mining.
Indian Shipping Industry Focus
India has one of the largest merchant shipping fleet and ranked 17th among the developing countries with average age of the fleet being 18.03 years. 95% of the country’s trade by volume (68% in terms of value) is moved by sea. India has a total of 1299 ships comprising of 11.24 MGT as on 31.10.2016. Out of the total tonnage, 900 vessels of about 1.52 million GT are engaged in Coastal trade and remaining 399 vessels are plying in overseas trade. Despite growth in tonnage, the percentage…
India Okays Deal on Indo-Bangla Coastal Shipping
The Indian government has approved an agreement on coastal shipping between India and Bangladesh for cheaper cargo movements between them. “The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the agreement on coastal shipping between India and Bangladesh to carry out coastal movement of goods between the two countries,” said an official statement. The Indian ports serving as trans-shipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade…
Tanzania Plans $44m Project to Handle Large Ships
According to reports, Tanzania Ports Authority (TPA) will undertake a $44 million joint venture project to replace the existing Single Point Mooring (SPM) facility to handle bigger oil vessels and an increased volume of crude oil at the Dar port. The joint venture, which is expected to commence in 2008, will see partners in the investment contribute equity and possibly manage and operate the SPM facility in collecting the revenue. Tanzania Ports Authority (TPA) officials, said the proposed facility will have the capacity to handle both bulk and refined liquid products. The TPA expects the new facility to provide increased revenue in addition to improvements in quality of service, safety, efficiency and the capacity to handle bigger vessels.
Ex-US Navy Officers Face Negligent Homicide Charges over Ship Collisions
The commanding officers of two U.S. Navy destroyers involved in deadly collisions last year in the Pacific Ocean face courts-martial and military criminal charges including negligent homicide, the U.S. Navy said in a statement on Tuesday. Filing charges against the officers marks the Navy’s latest effort to address the problems that led to collisions involving its warships in Asia, in which 17 sailors were killed. The Navy has already dismissed several senior officers, including the commander of the Seventh Fleet, as a result of the collisions.
VLCC Rates to Stabilise as Owners' Resolve Stiffens
VLCC's likely to struggle to break even for next two months; three-tier VLCC market weighs on sentiment. Freight rates for very large crude carriers (VLCCs) are likely to become steady around the current levels as owners resist charterers' attempts to pull down hire rates with the emergence of a three-tier market, brokers said on Friday. That came as brokers said South Korean charterers GS Caltex/S-Oil failed to charter a VLCC at below 40 points on the Worldscale measure for a…
Baltic Exchange to Develop LNG Freight Index
The Baltic Exchange is looking into launching a freight index for liquefied natural gas (LNG) and is working with leading ship brokers to explore potential shipping routes that might be used as the LNG market grows, the company said on Thursday. Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates, including ones used by the multi-billion dollar freight derivatives market. Singapore Exchange acquired the exchange in 2016 and since then the Baltic has been looking for new markets to develop.
It’s Electric: Charging Asia’s First E-ferry
Innovative charging technologies connect Asia’s first e-ferry to electrical power, eliminating emissions and dramatically reducing operating costs. The retrofitted passenger ferry, which operates between the island of Cijian and the port of Kaohsiung in Taiwan and that entered service last year, is fully electrically powered. This follows the introduction of a hybrid ferry earlier in 2017. The charging solution was supplied by Swiss based engineering firm Cavotec, who said the technology ensures safe, fast and efficient connection of the ferry to electrical power at the Kaohsiung berth.
Oil Heist Uncovered at Shell's Biggest Refinery
Police say 17 arrested in connection with oil theft; 11 charged; Shell expects "short delay" in operations due to case. Eleven men were charged in a Singapore court on Tuesday in connection with a large-scale oil theft at Shell's biggest refinery, while police said they were investigating six other men arrested in a weekend raid. Police in the island-state said on Tuesday they had detained 17 men, whose ages ranged from 30 to 63, and seized millions of dollars in cash and a small tanker during their investigations into theft at the Pulau Bukom industrial site…
Irish Ferries Orders New Ship for Dublin-Holyhead Route
Irish Continental Group plc (ICG) said it has ordered a new cruise ferry set to be the world’s largest in terms of vehicle capacity, due for delivery in 2020. The new €165.2 million ($199.4 million) cruise ferry is being built by German shipbuilder Flensburger Schiffbau-Gesselschaft & Co.KG (FSG), specifically for Irish Ferries’ Dublin - Holyhead services. It is expected to replace the schedule of the MV Ulysses, which in turn will replace the chartered-in vessel MV Epsilon. This will allow for the deployment of the W.B. Yeats (arriving mid 2018) full-time on the direct Ireland - France route alongside the MV Oscar Wilde. ICG said the new 67,300 gross ton cruise ferry will increase Irish Ferries’ freight and tourism carrying capacity on the fast-growing Dublin - Holyhead route.
Grindrod Inks Writedown Charge, Cites Flagging Profit
South Africa's Grindrod flagged as much as 35 percent drop in annual profit on Thursday, after taking a $100 million writedown charge due to a slide in shipping rates and volumes. Africa's biggest shipping group said headline earnings per share - a widely watched measure of profit in South Africa that strips out certain one-off items - is likely to drop by between 30 and 35 percent for the year ending in December. "Persistent decline in the dry-bulk shipping rates has continued into 2016 and are now at unprecedented levels," the group said, adding that had forced it to take a impairment charge of $100 million on its shipping business. The global shipping and freight industry is facing he longest downturn in three decades.
Fifth Consecutive Record Year for Antwerp
The port of Antwerp has achieved a record freight volume for the fifth straight year in a row. In 2017 the port handled 223,606,610 tonnes of freight, an increase of 4.4% compared with the previous year. Practically all sectors turned in an excellent performance: the container volume expanded in tonnage by 4.3% (123 million tonnes), liquid bulk such as oil derivatives by 5.7% (73.1 million tonnes), and conventional breakbulk such as steel by 4.8% (10.3 million tonnes), while ro/ro completed the growth list with 10.5% (5.1 million tonnes).